filings.toolsItem 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
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Item 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
Management’s Report on Internal Control Over Financial Reporting
The management of Exelon Corporation (Exelon) is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Exchange Act Rule 13a-15(f). Internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Exelon’s management conducted an assessment of the effectiveness of Exelon’s internal control over financial reporting as of December 31, 2025. In making this assessment, management used the criteria in Internal Control—Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on this assessment, Exelon’s management concluded that, as of December 31, 2025, Exelon’s internal control over financial reporting was effective.
The effectiveness of Exelon’s internal control over financial reporting as of December 31, 2025, has been audited by PricewaterhouseCoopers LLP, an independent registered public accounting firm, as stated in their report which appears herein.
February 12, 2026
Management’s Report on Internal Control Over Financial Reporting
The management of Commonwealth Edison Company (ComEd) is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Exchange Act Rule 13a-15(f). Internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
ComEd’s management conducted an assessment of the effectiveness of ComEd’s internal control over financial reporting as of December 31, 2025. In making this assessment, management used the criteria in Internal Control—Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on this assessment, ComEd’s management concluded that, as of December 31, 2025, ComEd’s internal control over financial reporting was effective.
February 12, 2026
Management’s Report on Internal Control Over Financial Reporting
The management of PECO Energy Company (PECO) is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Exchange Act Rule 13a-15(f). Internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
PECO’s management conducted an assessment of the effectiveness of PECO’s internal control over financial reporting as of December 31, 2025. In making this assessment, management used the criteria in Internal Control—Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on this assessment, PECO’s management concluded that, as of December 31, 2025, PECO’s internal control over financial reporting was effective.
February 12, 2026
Management’s Report on Internal Control Over Financial Reporting
The management of Baltimore Gas and Electric Company (BGE) is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Exchange Act Rule 13a-15(f). Internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
BGE’s management conducted an assessment of the effectiveness of BGE’s internal control over financial reporting as of December 31, 2025. In making this assessment, management used the criteria in Internal Control—Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on this assessment, BGE’s management concluded that, as of December 31, 2025, BGE’s internal control over financial reporting was effective.
February 12, 2026
Management’s Report on Internal Control Over Financial Reporting
The management of Pepco Holdings LLC (PHI) is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Exchange Act Rule 13a-15(f). Internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
PHI’s management conducted an assessment of the effectiveness of PHI’s internal control over financial reporting as of December 31, 2025. In making this assessment, management used the criteria in Internal Control—Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on this assessment, PHI’s management concluded that, as of December 31, 2025, PHI’s internal control over financial reporting was effective.
February 12, 2026
Management’s Report on Internal Control Over Financial Reporting
The management of Potomac Electric Power Company (Pepco) is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Exchange Act Rule 13a-15(f). Internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Pepco’s management conducted an assessment of the effectiveness of Pepco’s internal control over financial reporting as of December 31, 2025. In making this assessment, management used the criteria in Internal Control—Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on this assessment, Pepco’s management concluded that, as of December 31, 2025, Pepco’s internal control over financial reporting was effective.
February 12, 2026
Management’s Report on Internal Control Over Financial Reporting
The management of Delmarva Power & Light Company (DPL) is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Exchange Act Rule 13a-15(f). Internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
DPL’s management conducted an assessment of the effectiveness of DPL’s internal control over financial reporting as of December 31, 2025. In making this assessment, management used the criteria in Internal Control—Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on this assessment, DPL’s management concluded that, as of December 31, 2025, DPL’s internal control over financial reporting was effective.
February 12, 2026
Management’s Report on Internal Control Over Financial Reporting
The management of Atlantic City Electric Company (ACE) is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Exchange Act Rule 13a-15(f). Internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
ACE’s management conducted an assessment of the effectiveness of ACE’s internal control over financial reporting as of December 31, 2025. In making this assessment, management used the criteria in Internal Control—Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on this assessment, ACE’s management concluded that, as of December 31, 2025, ACE’s internal control over financial reporting was effective.
February 12, 2026
Report of Independent Registered Public Accounting Firm
To the Board of Directors and Shareholders of Exelon Corporation
Opinions on the Financial Statements and Internal Control over Financial Reporting
We have audited the consolidated financial statements, including the related notes, as listed in the index appearing under Item 15(a)(1)(i), and the financial statement schedules listed in the index appearing under Item 15(a)(1)(ii), of Exelon Corporation and its subsidiaries (the "Company") (collectively referred to as the "consolidated financial statements"). We also have audited the Company's internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025 in conformity with accounting principles generally accepted in the United States of America. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control - Integrated Framework (2013) issued by the COSO.
Basis for Opinions
The Company's management is responsible for these consolidated financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in Management’s Report on Internal Control over Financial Reporting appearing under Item 8. Our responsibility is to express opinions on the Company’s consolidated financial statements and on the Company's internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects.
Our audits of the consolidated financial statements included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.
Definition and Limitations of Internal Control over Financial Reporting
A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Critical Audit Matters
The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that (i) relates to accounts or disclosures that are material to the consolidated financial statements and (ii) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.
Accounting for the Effects of Rate Regulation
As described in Notes 1 and 2 to the consolidated financial statements, the Company applies the authoritative guidance for accounting for certain types of regulation, which requires management to record in the consolidated financial statements the effects of cost-based rate regulation for entities with regulated operations that meet the following criteria, (i) rates are established or approved by a third-party regulator; (ii) rates are designed to recover the entity’s cost of providing services or products; and (iii) there is a reasonable expectation that rates designed to recover costs can be charged to and collected from customers. The Company accounts for its regulated operations in accordance with regulatory and legislative guidance from the regulatory authorities having jurisdiction under state public utility laws and the FERC under various Federal laws. Upon updates in material regulatory and legislative proceedings, where applicable, management will record new regulatory assets or liabilities and will assess whether it is probable that its currently recorded regulatory assets and liabilities will be recovered and settled, respectively, in future rates. As of December 31, 2025, there were $10.57 billion of regulatory assets and $12.14 billion of regulatory liabilities.
The principal considerations for our determination that performing procedures relating to the Company’s accounting for the effects of rate regulation is a critical audit matter are the high degree of audit effort to assess the impact of regulation on accounting for regulatory assets and liabilities and to evaluate the complex audit evidence related to whether the regulatory assets and liabilities will be recovered and settled.
Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to accounting for regulatory matters and evaluation of new and existing regulatory assets and liabilities. These procedures also included, among others, obtaining the Company’s correspondence with regulators, evaluating the reasonableness of management’s interpretation of regulatory guidance and proceedings and the related accounting implications, and recalculating regulatory assets and liabilities based on provisions outlined in rate orders and other correspondence with regulators.
/s/ PricewaterhouseCoopers LLP
Chicago, Illinois
February 12, 2026
We have served as the Company’s auditor since 2000.
Report of Independent Registered Public Accounting Firm
To the Board of Directors and Shareholders of Commonwealth Edison Company
Opinion on the Financial Statements
We have audited the consolidated financial statements, including the related notes, as listed in the index appearing under Item 15(a)(2)(i), and the financial statement schedule listed in the index appearing under Item 15(a)(2)(ii), of Commonwealth Edison Company and its subsidiaries (the "Company") (collectively referred to as the "consolidated financial statements"). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s consolidated financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these consolidated financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion.
Critical Audit Matters
The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that (i) relates to accounts or disclosures that are material to the consolidated financial statements and (ii) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.
Accounting for the Effects of Rate Regulation
As described in Notes 1 and 2 to the consolidated financial statements, the Company applies the authoritative guidance for accounting for certain types of regulation, which requires management to record in the consolidated financial statements the effects of cost-based rate regulation for entities with regulated operations that meet the following criteria, (i) rates are established or approved by a third-party regulator; (ii) rates are designed to recover the entity’s cost of providing services or products; and (iii) there is a reasonable expectation that rates designed to recover costs can be charged to and collected from customers. The Company accounts for its regulated operations in accordance with regulatory and legislative guidance from the regulatory authorities having jurisdiction under state public utility laws and the FERC under various Federal laws. Upon updates in material regulatory and legislative proceedings, where applicable, management will record new regulatory assets or liabilities and will assess whether it is probable that its currently recorded regulatory assets and liabilities will be
recovered and settled, respectively, in future rates. As of December 31, 2025, there were $3.28 billion of regulatory assets and $10.01 billion of regulatory liabilities.
The principal considerations for our determination that performing procedures relating to the Company’s accounting for the effects of rate regulation is a critical audit matter are the high degree of audit effort to assess the impact of regulation on accounting for regulatory assets and liabilities and to evaluate the complex audit evidence related to whether the regulatory assets and liabilities will be recovered and settled.
Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to accounting for regulatory matters and evaluation of new and existing regulatory assets and liabilities. These procedures also included, among others, obtaining the Company’s correspondence with regulators, evaluating the reasonableness of management’s interpretation of regulatory guidance and proceedings and the related accounting implications, and recalculating regulatory assets and liabilities based on provisions outlined in rate orders and other correspondence with regulators.
/s/ PricewaterhouseCoopers LLP
Chicago, Illinois
February 12, 2026
We have served as the Company's auditor since 2000.
Report of Independent Registered Public Accounting Firm
To the Board of Directors and Shareholders of PECO Energy Company
Opinion on the Financial Statements
We have audited the consolidated financial statements, including the related notes, as listed in the index appearing under Item 15(a)(3)(i), and the financial statement schedule listed in the index appearing under Item 15(a)(3)(ii), of PECO Energy Company and its subsidiaries (the "Company") (collectively referred to as the "consolidated financial statements"). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s consolidated financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these consolidated financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion.
Critical Audit Matters
The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that (i) relates to accounts or disclosures that are material to the consolidated financial statements and (ii) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.
Accounting for the Effects of Rate Regulation
As described in Notes 1 and 2 to the consolidated financial statements, the Company applies the authoritative guidance for accounting for certain types of regulation, which requires management to record in the consolidated financial statements the effects of cost-based rate regulation for entities with regulated operations that meet the following criteria, (i) rates are established or approved by a third-party regulator; (ii) rates are designed to recover the entity’s cost of providing services or products; and (iii) there is a reasonable expectation that rates designed to recover costs can be charged to and collected from customers. The Company accounts for its regulated operations in accordance with regulatory and legislative guidance from the regulatory authorities having jurisdiction under state public utility laws and the FERC under various Federal laws. Upon updates in material regulatory and legislative proceedings, where applicable, management will record new regulatory assets or liabilities and will assess whether it is probable that its currently recorded regulatory assets and liabilities will be
recovered and settled, respectively, in future rates. As of December 31, 2025, there were $1.35 billion of regulatory assets and $589 million of regulatory liabilities.
The principal considerations for our determination that performing procedures relating to the Company’s accounting for the effects of rate regulation is a critical audit matter are the high degree of audit effort to assess the impact of regulation on accounting for regulatory assets and liabilities and to evaluate the complex audit evidence related to whether the regulatory assets and liabilities will be recovered and settled.
Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to accounting for regulatory matters and evaluation of new and existing regulatory assets and liabilities. These procedures also included, among others, obtaining the Company’s correspondence with regulators, evaluating the reasonableness of management’s interpretation of regulatory guidance and proceedings and the related accounting implications, and recalculating regulatory assets and liabilities based on provisions outlined in rate orders and other correspondence with regulators.
/s/ PricewaterhouseCoopers LLP
Philadelphia, Pennsylvania
February 12, 2026
We have served as the Company's auditor since 1932.
Report of Independent Registered Public Accounting Firm
To the Board of Directors and Shareholder of Baltimore Gas and Electric Company
Opinion on the Financial Statements
We have audited the financial statements, including the related notes, as listed in the index appearing under Item 15(a)(4)(i), and the financial statement schedule listed in the index appearing under Item 15(a)(4)(ii), of Baltimore Gas and Electric Company (the "Company") (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
Critical Audit Matters
The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that (i) relates to accounts or disclosures that are material to the financial statements and (ii) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.
Accounting for the Effects of Rate Regulation
As described in Notes 1 and 2 to the financial statements, the Company applies the authoritative guidance for accounting for certain types of regulation, which requires management to record in the financial statements the effects of cost-based rate regulation for entities with regulated operations that meet the following criteria, (i) rates are established or approved by a third-party regulator; (ii) rates are designed to recover the entity’s cost of providing services or products; and (iii) there is a reasonable expectation that rates designed to recover costs can be charged to and collected from customers. The Company accounts for its regulated operations in accordance with regulatory and legislative guidance from the regulatory authorities having jurisdiction under state public utility laws and the FERC under various Federal laws. Upon updates in material regulatory and legislative proceedings, where applicable, management will record new regulatory assets or liabilities and will assess whether it is probable that its currently recorded regulatory assets and liabilities will be recovered and settled,
respectively, in future rates. As of December 31, 2025, there were $979 million of regulatory assets and $626 million of regulatory liabilities.
The principal considerations for our determination that performing procedures relating to the Company’s accounting for the effects of rate regulation is a critical audit matter are the high degree of audit effort to assess the impact of regulation on accounting for regulatory assets and liabilities and to evaluate the complex audit evidence related to whether the regulatory assets and liabilities will be recovered and settled.
Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the financial statements. These procedures included testing the effectiveness of controls relating to accounting for regulatory matters and evaluation of new and existing regulatory assets and liabilities. These procedures also included, among others, obtaining the Company’s correspondence with regulators, evaluating the reasonableness of management’s interpretation of regulatory guidance and proceedings and the related accounting implications, and recalculating regulatory assets and liabilities based on provisions outlined in rate orders and other correspondence with regulators.
/s/ PricewaterhouseCoopers LLP
Baltimore, Maryland
February 12, 2026
We have served as the Company’s auditor since at least 1993. We have not been able to determine the specific year we began serving as auditor of the Company.
Report of Independent Registered Public Accounting Firm
To the Board of Directors and Member of Pepco Holdings LLC
Opinion on the Financial Statements
We have audited the consolidated financial statements, including the related notes, as listed in the index appearing under Item 15(a)(5)(i), and the financial statement schedule listed in the index appearing under Item 15(a)(5)(ii), of Pepco Holdings LLC and its subsidiaries (the "Company") (collectively referred to as the "consolidated financial statements"). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s consolidated financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these consolidated financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion.
Critical Audit Matters
The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that (i) relates to accounts or disclosures that are material to the consolidated financial statements and (ii) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.
Accounting for the Effects of Rate Regulation
As described in Notes 1 and 2 to the consolidated financial statements, the Company applies the authoritative guidance for accounting for certain types of regulation, which requires management to record in the consolidated financial statements the effects of cost-based rate regulation for entities with regulated operations that meet the following criteria, (i) rates are established or approved by a third-party regulator; (ii) rates are designed to recover the entity’s cost of providing services or products; and (iii) there is a reasonable expectation that rates designed to recover costs can be charged to and collected from customers. The Company accounts for its regulated operations in accordance with regulatory and legislative guidance from the regulatory authorities having jurisdiction under state public utility laws and the FERC under various Federal laws. Upon updates in material regulatory and legislative proceedings, where applicable, management will record new regulatory assets or liabilities and will assess whether it is probable that its currently recorded regulatory assets and liabilities will be
recovered and settled, respectively, in future rates. As of December 31, 2025, there were $1.91 billion of regulatory assets and $825 million of regulatory liabilities.
The principal considerations for our determination that performing procedures relating to the Company’s accounting for the effects of rate regulation is a critical audit matter are the high degree of audit effort to assess the impact of regulation on accounting for regulatory assets and liabilities and to evaluate the complex audit evidence related to whether the regulatory assets and liabilities will be recovered and settled.
Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to accounting for regulatory matters and evaluation of new and existing regulatory assets and liabilities. These procedures also included, among others, obtaining the Company’s correspondence with regulators, evaluating the reasonableness of management’s interpretation of regulatory guidance and proceedings and the related accounting implications, and recalculating regulatory assets and liabilities based on provisions outlined in rate orders and other correspondence with regulators.
/s/ PricewaterhouseCoopers LLP
Philadelphia, Pennsylvania
February 12, 2026
We have served as the Company's auditor since 2001.
Report of Independent Registered Public Accounting Firm
To the Board of Directors and Shareholder of Potomac Electric Power Company
Opinion on the Financial Statements
We have audited the financial statements, including the related notes, as listed in the index appearing under Item 15(a)(6)(i), and the financial statement schedule listed in the index appearing under Item 15(a)(6)(ii), of Potomac Electric Power Company (the "Company") (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
Critical Audit Matters
The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that (i) relates to accounts or disclosures that are material to the financial statements and (ii) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.
Accounting for the Effects of Rate Regulation
As described in Notes 1 and 2 to the financial statements, the Company applies the authoritative guidance for accounting for certain types of regulation, which requires management to record in the financial statements the effects of cost-based rate regulation for entities with regulated operations that meet the following criteria, (i) rates are established or approved by a third-party regulator; (ii) rates are designed to recover the entity’s cost of providing services or products; and (iii) there is a reasonable expectation that rates designed to recover costs can be charged to and collected from customers. The Company accounts for its regulated operations in accordance with regulatory and legislative guidance from the regulatory authorities having jurisdiction under state public utility laws and the FERC under various Federal laws. Upon updates in material regulatory and legislative proceedings, where applicable, management will record new regulatory assets or liabilities and will assess whether it is probable that its currently recorded regulatory assets and liabilities will be recovered and settled,
respectively, in future rates. As of December 31, 2025, there were $587 million of regulatory assets and $281 million of regulatory liabilities.
The principal considerations for our determination that performing procedures relating to the Company’s accounting for the effects of rate regulation is a critical audit matter are the high degree of audit effort to assess the impact of regulation on accounting for regulatory assets and liabilities and to evaluate the complex audit evidence related to whether the regulatory assets and liabilities will be recovered and settled.
Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the financial statements. These procedures included testing the effectiveness of controls relating to accounting for regulatory matters and evaluation of new and existing regulatory assets and liabilities. These procedures also included, among others, obtaining the Company’s correspondence with regulators, evaluating the reasonableness of management’s interpretation of regulatory guidance and proceedings and the related accounting implications, and recalculating regulatory assets and liabilities based on provisions outlined in rate orders and other correspondence with regulators.
/s/ PricewaterhouseCoopers LLP
Philadelphia, Pennsylvania
February 12, 2026
We have served as the Company's auditor since at least 1993. We have not been able to determine the specific year we began serving as auditor of the Company.
Report of Independent Registered Public Accounting Firm
To the Board of Directors and Shareholder of Delmarva Power & Light Company
Opinion on the Financial Statements
We have audited the financial statements, including the related notes, as listed in the index appearing under Item 15(a)(7)(i), and the financial statement schedule listed in the index appearing under Item 15(a)(7)(ii), of Delmarva Power & Light Company (the "Company") (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
Critical Audit Matters
The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that (i) relates to accounts or disclosures that are material to the financial statements and (ii) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.
Accounting for the Effects of Rate Regulation
As described in Notes 1 and 2 to the financial statements, the Company applies the authoritative guidance for accounting for certain types of regulation, which requires management to record in the financial statements the effects of cost-based rate regulation for entities with regulated operations that meet the following criteria, (i) rates are established or approved by a third-party regulator; (ii) rates are designed to recover the entity’s cost of providing services or products; and (iii) there is a reasonable expectation that rates designed to recover costs can be charged to and collected from customers. The Company accounts for its regulated operations in accordance with regulatory and legislative guidance from the regulatory authorities having jurisdiction under state public utility laws and the FERC under various Federal laws. Upon updates in material regulatory and legislative proceedings, where applicable, management will record new regulatory assets or liabilities and will assess whether it is probable that its currently recorded regulatory assets and liabilities will be recovered and settled,
respectively, in future rates. As of December 31, 2025, there were $286 million of regulatory assets and $358 million of regulatory liabilities.
The principal considerations for our determination that performing procedures relating to the Company’s accounting for the effects of rate regulation is a critical audit matter are the high degree of audit effort to assess the impact of regulation on accounting for regulatory assets and liabilities and to evaluate the complex audit evidence related to whether the regulatory assets and liabilities will be recovered and settled.
Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the financial statements. These procedures included testing the effectiveness of controls relating to accounting for regulatory matters and evaluation of new and existing regulatory assets and liabilities. These procedures also included, among others, obtaining the Company’s correspondence with regulators, evaluating the reasonableness of management’s interpretation of regulatory guidance and proceedings and the related accounting implications, and recalculating regulatory assets and liabilities based on provisions outlined in rate orders and other correspondence with regulators.
/s/ PricewaterhouseCoopers LLP
Philadelphia, Pennsylvania
February 12, 2026
We have served as the Company's auditor since at least 1993. We have not been able to determine the specific year we began serving as auditor of the Company.
Report of Independent Registered Public Accounting Firm
To the Board of Directors and Shareholder of Atlantic City Electric Company
Opinion on the Financial Statements
We have audited the consolidated financial statements, including the related notes, as listed in the index appearing under Item 15(a)(8)(i), and the financial statement schedule listed in the index appearing under Item 15(a)(8)(ii), of Atlantic City Electric Company and its subsidiary (the "Company") (collectively referred to as the "consolidated financial statements"). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s consolidated financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these consolidated financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion.
Critical Audit Matters
The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that (i) relates to accounts or disclosures that are material to the consolidated financial statements and (ii) involved our especially challenging, subjective, or complex judgments.
The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.
Accounting for the Effects of Rate Regulation
As described in Notes 1 and 2 to the consolidated financial statements, the Company applies the authoritative guidance for accounting for certain types of regulation, which requires management to record in the consolidated financial statements the effects of cost-based rate regulation for entities with regulated operations that meet the following criteria, (i) rates are established or approved by a third-party regulator; (ii) rates are designed to recover the entity’s cost of providing services or products; and (iii) there is a reasonable expectation that rates designed to recover costs can be charged to and collected from customers. The Company accounts for its regulated operations in accordance with regulatory and legislative guidance from the regulatory authorities having jurisdiction under state public utility laws and the FERC under various Federal laws. Upon updates in material regulatory and legislative proceedings, where applicable, management will record new regulatory assets or liabilities and will assess whether it is probable that its currently recorded regulatory assets and liabilities will be
recovered and settled, respectively, in future rates. As of December 31, 2025, there were $652 million of regulatory assets and $185 million of regulatory liabilities.
The principal considerations for our determination that performing procedures relating to the Company’s accounting for the effects of rate regulation is a critical audit matter are the high degree of audit effort to assess the impact of regulation on accounting for regulatory assets and liabilities and to evaluate the complex audit evidence related to whether the regulatory assets and liabilities will be recovered and settled.
Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to accounting for regulatory matters and evaluation of new and existing regulatory assets and liabilities. These procedures also included, among others, obtaining the Company’s correspondence with regulators, evaluating the reasonableness of management’s interpretation of regulatory guidance and proceedings and the related accounting implications, and recalculating regulatory assets and liabilities based on provisions outlined in rate orders and other correspondence with regulators.
/s/ PricewaterhouseCoopers LLP
Philadelphia, Pennsylvania
February 12, 2026
We have served as the Company's auditor since 1998.
Exelon Corporation and Subsidiary Companies
Consolidated Statements of Operations and Comprehensive Income
| For the Years Ended December 31, | |||||||||||||||||
| (In millions, except per share data) | 2025 | 2024 | 2023 | ||||||||||||||
| Operating revenues | |||||||||||||||||
| Electric operating revenues | $ | 22,655 | $ | 21,338 | $ | 19,267 | |||||||||||
| Natural gas operating revenues | 2,349 | 1,782 | 1,764 | ||||||||||||||
| Revenues from alternative revenue programs | (746) | (92) | 696 | ||||||||||||||
| Total operating revenues | 24,258 | 23,028 | 21,727 | ||||||||||||||
| Operating expenses | |||||||||||||||||
| Purchased power | 7,944 | 8,214 | 7,648 | ||||||||||||||
| Purchased fuel | 723 | 469 | 593 | ||||||||||||||
| Operating and maintenance | 5,177 | 4,940 | 4,559 | ||||||||||||||
| Depreciation and amortization | 3,640 | 3,594 | 3,506 | ||||||||||||||
| Taxes other than income taxes | 1,629 | 1,504 | 1,408 | ||||||||||||||
| Total operating expenses | 19,113 | 18,721 | 17,714 | ||||||||||||||
| Gain on sale of assets | 3 | 12 | 10 | ||||||||||||||
| Operating income | 5,148 | 4,319 | 4,023 | ||||||||||||||
| Other income and (deductions) | |||||||||||||||||
| Interest expense, net | (2,102) | (1,889) | (1,704) | ||||||||||||||
| Interest expense to affiliates | (25) | (25) | (25) | ||||||||||||||
| Other, net | 270 | 262 | 408 | ||||||||||||||
| Total other income and (deductions) | (1,857) | (1,652) | (1,321) | ||||||||||||||
| Income before income taxes | 3,291 | 2,667 | 2,702 | ||||||||||||||
| Income taxes | 523 | 207 | 374 | ||||||||||||||
| Net income attributable to common shareholders | $ | 2,768 | $ | 2,460 | $ | 2,328 | |||||||||||
| Comprehensive income, net of income taxes | |||||||||||||||||
| Net income | $ | 2,768 | $ | 2,460 | $ | 2,328 | |||||||||||
| Other comprehensive (loss) income, net of income taxes | |||||||||||||||||
| Pension and non-pension postretirement benefit plans: | |||||||||||||||||
| Actuarial losses reclassified to periodic benefit cost | 22 | 28 | 26 | ||||||||||||||
| Pension and non-pension postretirement benefit plans valuation adjustments | (52) | (70) | (109) | ||||||||||||||
| Unrealized (loss) gain on cash flow hedges | (12) | 48 | (5) | ||||||||||||||
| Other comprehensive (loss) income | (42) | 6 | (88) | ||||||||||||||
| Comprehensive income attributable to common shareholders | $ | 2,726 | $ | 2,466 | $ | 2,240 | |||||||||||
| Average shares of common stock outstanding: | |||||||||||||||||
| Basic | 1,011 | 1,003 | 996 | ||||||||||||||
| Assumed exercise and/or distributions of stock-based awards(a) | 1 | — | 1 | ||||||||||||||
| Diluted | 1,012 | 1,003 | 997 | ||||||||||||||
| Earnings per average common share | |||||||||||||||||
| Basic | $ | 2.74 | $ | 2.45 | $ | 2.34 | |||||||||||
| Diluted | $ | 2.73 | $ | 2.45 | $ | 2.34 | |||||||||||
(a)The dilutive effects of stock-based compensation awards are calculated using the treasury stock method for all periods presented.
See the Combined Notes to Consolidated Financial Statements
Exelon Corporation and Subsidiary Companies
Consolidated Statements of Cash Flows
| For the Years Ended December 31, | |||||||||||||||||
| (In millions) | 2025 | 2024 | 2023 | ||||||||||||||
| Cash flows from operating activities | |||||||||||||||||
| Net income | $ | 2,768 | $ | 2,460 | $ | 2,328 | |||||||||||
| Adjustments to reconcile net income to net cash flows provided by operating activities: | |||||||||||||||||
| Depreciation, amortization, and accretion | 3,643 | 3,596 | 3,506 | ||||||||||||||
| Gain on sales of assets | (3) | (12) | (10) | ||||||||||||||
| Deferred income taxes and amortization of investment tax credits | 391 | 128 | 319 | ||||||||||||||
| Net fair value changes related to derivatives | — | — | 22 | ||||||||||||||
| Other non-cash operating activities | 1,331 | 592 | (335) | ||||||||||||||
| Changes in assets and liabilities: | |||||||||||||||||
| Accounts receivable | (1,691) | (644) | (37) | ||||||||||||||
| Inventories | (22) | (56) | (45) | ||||||||||||||
| Accounts payable and accrued expenses | 260 | (37) | (191) | ||||||||||||||
| Collateral (paid) received, net | (10) | 33 | (146) | ||||||||||||||
| Income taxes | 121 | (4) | 48 | ||||||||||||||
| Regulatory assets and liabilities, net | 156 | (50) | (439) | ||||||||||||||
| Pension and non-pension postretirement benefit contributions | (342) | (180) | (129) | ||||||||||||||
| Other assets and liabilities | (348) | (257) | (188) | ||||||||||||||
| Net cash flows provided by operating activities | 6,254 | 5,569 | 4,703 | ||||||||||||||
| Cash flows from investing activities | |||||||||||||||||
| Capital expenditures | (8,529) | (7,097) | (7,408) | ||||||||||||||
| Proceeds from sales of assets | 4 | 38 | 25 | ||||||||||||||
| Other investing activities | — | 17 | 8 | ||||||||||||||
| Net cash flows used in investing activities | (8,525) | (7,042) | (7,375) | ||||||||||||||
| Cash flows from financing activities | |||||||||||||||||
| Changes in short-term borrowings | (747) | (265) | (313) | ||||||||||||||
| Proceeds from short-term borrowings with maturities greater than 90 days | — | 150 | 400 | ||||||||||||||
| Repayments on short-term borrowings with maturities greater than 90 days | (500) | (549) | (150) | ||||||||||||||
| Issuance of long-term debt | 6,075 | 4,974 | 5,825 | ||||||||||||||
| Retirement of long-term debt | (1,311) | (1,557) | (1,713) | ||||||||||||||
| Issuance of common stock | 691 | 148 | 140 | ||||||||||||||
| Dividends paid on common stock | (1,617) | (1,524) | (1,433) | ||||||||||||||
| Proceeds from employee stock plans | 36 | 43 | 41 | ||||||||||||||
| Other financing activities | (94) | (109) | (114) | ||||||||||||||
| Net cash flows provided by financing activities | 2,533 | 1,311 | 2,683 | ||||||||||||||
| Increase (decrease) in cash, restricted cash, and cash equivalents | 262 | (162) | 11 | ||||||||||||||
| Cash, restricted cash, and cash equivalents at beginning of period | 939 | 1,101 | 1,090 | ||||||||||||||
| Cash, restricted cash, and cash equivalents at end of period | $ | 1,201 | $ | 939 | $ | 1,101 | |||||||||||
| Supplemental cash flow information | |||||||||||||||||
| Increase (decrease) in capital expenditures not paid | $ | 553 | $ | 301 | $ | (215) | |||||||||||
| Increase (decrease) in PP&E related to ARO update | 13 | 16 | (13) | ||||||||||||||
See the Combined Notes to Consolidated Financial Statements
Exelon Corporation and Subsidiary Companies
Consolidated Balance Sheets
| December 31, | |||||||||||
| (In millions) | 2025 | 2024 | |||||||||
| ASSETS | |||||||||||
| Current assets | |||||||||||
| Cash and cash equivalents | $ | 626 | $ | 357 | |||||||
| Restricted cash and cash equivalents | 525 | 541 | |||||||||
| Accounts receivable | |||||||||||
| Customer accounts receivable | 3,732 | 3,144 | |||||||||
| Customer allowance for credit losses | (435) | (406) | |||||||||
| Customer accounts receivable, net | 3,297 | 2,738 | |||||||||
| Other accounts receivable | 1,879 | 1,123 | |||||||||
| Other allowance for credit losses | (94) | (107) | |||||||||
| Other accounts receivable, net | 1,785 | 1,016 | |||||||||
| Inventories, net | |||||||||||
| Fossil fuel | 88 | 72 | |||||||||
| Materials and supplies | 780 | 781 | |||||||||
| Regulatory assets | 1,359 | 1,940 | |||||||||
| Prepaid renewable energy credits | 563 | 494 | |||||||||
| Other | 523 | 445 | |||||||||
| Total current assets | 9,546 | 8,384 | |||||||||
| Property, plant, and equipment (net of accumulated depreciation and amortization of $20,080 and $18,445 as of December 31, 2025 and 2024, respectively) | 84,318 | 78,182 | |||||||||
| Deferred debits and other assets | |||||||||||
| Regulatory assets | 9,214 | 8,710 | |||||||||
| Goodwill | 6,630 | 6,630 | |||||||||
| Receivable related to Regulatory Agreement Units | 4,755 | 4,026 | |||||||||
| Investments | 312 | 290 | |||||||||
| Other | 1,795 | 1,562 | |||||||||
| Total deferred debits and other assets | 22,706 | 21,218 | |||||||||
| Total assets | $ | 116,570 | $ | 107,784 |
See the Combined Notes to Consolidated Financial Statements
Exelon Corporation and Subsidiary Companies
Consolidated Balance Sheets
| December 31, | |||||||||||
| (In millions) | 2025 | 2024 | |||||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||
| Current liabilities | |||||||||||
| Short-term borrowings | $ | 612 | $ | 1,859 | |||||||
| Long-term debt due within one year | 1,665 | 1,453 | |||||||||
| Accounts payable | 3,721 | 2,994 | |||||||||
| Accrued expenses | 1,582 | 1,468 | |||||||||
| Payables to affiliates | 5 | 5 | |||||||||
| Customer deposits | 533 | 446 | |||||||||
| Regulatory liabilities | 1,128 | 411 | |||||||||
| Mark-to-market derivative liabilities | 30 | 29 | |||||||||
| Unamortized energy contract liabilities | 5 | 5 | |||||||||
| Renewable energy credit obligations | 473 | 429 | |||||||||
| Other | 577 | 512 | |||||||||
| Total current liabilities | 10,331 | 9,611 | |||||||||
| Long-term debt | 47,413 | 42,947 | |||||||||
| Long-term debt to financing trusts | 390 | 390 | |||||||||
| Deferred credits and other liabilities | |||||||||||
| Deferred income taxes and unamortized investment tax credits | 13,715 | 12,793 | |||||||||
| Regulatory liabilities | 11,016 | 10,198 | |||||||||
| Pension obligations | 1,749 | 1,745 | |||||||||
| Non-pension postretirement benefit obligations | 546 | 472 | |||||||||
| Asset retirement obligations | 321 | 301 | |||||||||
| Mark-to-market derivative liabilities | 106 | 103 | |||||||||
| Unamortized energy contract liabilities | 16 | 21 | |||||||||
| Other | 2,169 | 2,282 | |||||||||
| Total deferred credits and other liabilities | 29,638 | 27,915 | |||||||||
| Total liabilities | 87,772 | 80,863 | |||||||||
| Commitments and contingencies | |||||||||||
| Shareholders’ equity | |||||||||||
| Common stock (No par value, 2,000 shares authorized, 1,023 shares and 1,005 shares outstanding as of December 31, 2025 and 2024, respectively) | 22,106 | 21,338 | |||||||||
| Treasury stock, at cost (2 shares as of December 31, 2025 and 2024) | (123) | (123) | |||||||||
| Retained earnings | 7,577 | 6,426 | |||||||||
| Accumulated other comprehensive loss, net | (762) | (720) | |||||||||
| Total shareholders’ equity | 28,798 | 26,921 | |||||||||
| Total liabilities and shareholders' equity | $ | 116,570 | $ | 107,784 |
See the Combined Notes to Consolidated Financial Statements
Exelon Corporation and Subsidiary Companies
Consolidated Statements of Changes in Equity
| (In millions, shares in thousands) | Issued Shares | Common Stock | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Loss, net | Total Equity | |||||||||||||||||||||||||||||||||||
| Balance at December 31, 2022 | 995,830 | $ | 20,908 | $ | (123) | $ | 4,597 | $ | (638) | $ | 24,744 | ||||||||||||||||||||||||||||||
| Net income | — | — | — | 2,328 | — | 2,328 | |||||||||||||||||||||||||||||||||||
| Long-term incentive plan activity | 659 | 19 | — | — | — | 19 | |||||||||||||||||||||||||||||||||||
| Employee stock purchase plan activity | 1,173 | 47 | — | — | — | 47 | |||||||||||||||||||||||||||||||||||
| Issuance of common stock | 3,587 | 140 | — | — | — | 140 | |||||||||||||||||||||||||||||||||||
| Common stock dividends ($1.44/common share) | — | — | — | (1,435) | — | (1,435) | |||||||||||||||||||||||||||||||||||
| Other comprehensive loss, net of income taxes | — | — | — | — | (88) | (88) | |||||||||||||||||||||||||||||||||||
| Balance at December 31, 2023 | 1,001,249 | $ | 21,114 | $ | (123) | $ | 5,490 | $ | (726) | $ | 25,755 | ||||||||||||||||||||||||||||||
| Net income | — | — | — | 2,460 | — | 2,460 | |||||||||||||||||||||||||||||||||||
| Long-term incentive plan activity | 464 | 26 | — | — | — | 26 | |||||||||||||||||||||||||||||||||||
| Employee stock purchase plan activity | 1,344 | 50 | — | — | — | 50 | |||||||||||||||||||||||||||||||||||
| Issuance of common stock | 3,989 | 148 | — | — | — | 148 | |||||||||||||||||||||||||||||||||||
| Common stock dividends ($1.52/common share) | — | — | — | (1,524) | — | (1,524) | |||||||||||||||||||||||||||||||||||
| Other comprehensive income, net of income taxes | — | — | — | — | 6 | 6 | |||||||||||||||||||||||||||||||||||
| Balance at December 31, 2024 | 1,007,046 | $ | 21,338 | $ | (123) | $ | 6,426 | $ | (720) | $ | 26,921 | ||||||||||||||||||||||||||||||
| Net income | — | — | — | 2,768 | — | 2,768 | |||||||||||||||||||||||||||||||||||
| Long-term incentive plan activity | 323 | 34 | — | — | — | 34 | |||||||||||||||||||||||||||||||||||
| Employee stock purchase plan activity | 931 | 43 | — | — | — | 43 | |||||||||||||||||||||||||||||||||||
| Issuance of common stock | 16,101 | 691 | — | — | — | 691 | |||||||||||||||||||||||||||||||||||
| Common stock dividends ($1.60/common share) | — | — | — | (1,617) | — | (1,617) | |||||||||||||||||||||||||||||||||||
| Other comprehensive loss, net of income taxes | — | — | — | — | (42) | (42) | |||||||||||||||||||||||||||||||||||
| Balance at December 31, 2025 | 1,024,401 | $ | 22,106 | $ | (123) | $ | 7,577 | $ | (762) | $ | 28,798 |
See the Combined Notes to Consolidated Financial Statements
Commonwealth Edison Company and Subsidiary Companies
Consolidated Statements of Operations and Comprehensive Income
| For the Years Ended December 31, | |||||||||||||||||
| (In millions) | 2025 | 2024 | 2023 | ||||||||||||||
| Operating revenues | |||||||||||||||||
| Electric operating revenues | $ | 7,842 | $ | 8,362 | $ | 7,272 | |||||||||||
| Revenues from alternative revenue programs | (596) | (151) | 556 | ||||||||||||||
| Operating revenues from affiliates | 21 | 8 | 16 | ||||||||||||||
| Total operating revenues | 7,267 | 8,219 | 7,844 | ||||||||||||||
| Operating expenses | |||||||||||||||||
| Purchased power | 1,782 | 3,042 | 2,816 | ||||||||||||||
| Operating and maintenance | 1,306 | 1,284 | 1,096 | ||||||||||||||
| Operating and maintenance from affiliates | 404 | 419 | 354 | ||||||||||||||
| Depreciation and amortization | 1,560 | 1,514 | 1,403 | ||||||||||||||
| Taxes other than income taxes | 409 | 376 | 369 | ||||||||||||||
| Total operating expenses | 5,461 | 6,635 | 6,038 | ||||||||||||||
| Gain on sale of assets | — | 5 | — | ||||||||||||||
| Operating income | 1,806 | 1,589 | 1,806 | ||||||||||||||
| Other income and (deductions) | |||||||||||||||||
| Interest expense, net | (517) | (487) | (464) | ||||||||||||||
| Interest expense to affiliates, net | (13) | (14) | (13) | ||||||||||||||
| Other, net | 132 | 94 | 75 | ||||||||||||||
| Total other income and (deductions) | (398) | (407) | (402) | ||||||||||||||
| Income before income taxes | 1,408 | 1,182 | 1,404 | ||||||||||||||
| Income taxes | 261 | 116 | 314 | ||||||||||||||
| Net income | $ | 1,147 | $ | 1,066 | $ | 1,090 | |||||||||||
| Comprehensive income | $ | 1,147 | $ | 1,066 | $ | 1,090 |
See the Combined Notes to Consolidated Financial Statements
Commonwealth Edison Company and Subsidiary Companies
Consolidated Statements of Cash Flows
| For the Years Ended December 31, | |||||||||||||||||
| (In millions) | 2025 | 2024 | 2023 | ||||||||||||||
| Cash flows from operating activities | |||||||||||||||||
| Net income | $ | 1,147 | $ | 1,066 | $ | 1,090 | |||||||||||
| Adjustments to reconcile net income to net cash flows provided by operating activities: | |||||||||||||||||
| Depreciation and amortization | 1,560 | 1,514 | 1,403 | ||||||||||||||
| Gain on sales of assets | — | (5) | — | ||||||||||||||
| Deferred income taxes and amortization of investment tax credits | 39 | (19) | 196 | ||||||||||||||
| Other non-cash operating activities | 740 | 232 | (536) | ||||||||||||||
| Changes in assets and liabilities: | |||||||||||||||||
| Accounts receivable | (1,026) | (185) | (138) | ||||||||||||||
| Receivables from and payables to affiliates, net | 3 | 4 | (2) | ||||||||||||||
| Inventories | 17 | (15) | (82) | ||||||||||||||
| Accounts payable and accrued expenses | 77 | (115) | (87) | ||||||||||||||
| Collateral (paid) received, net | (36) | 30 | 69 | ||||||||||||||
| Income taxes | (1) | (114) | 106 | ||||||||||||||
| Regulatory assets and liabilities, net | 506 | 246 | (60) | ||||||||||||||
| Pension and non-pension postretirement benefit contributions | (209) | (25) | (41) | ||||||||||||||
| Other assets and liabilities | (152) | 99 | (70) | ||||||||||||||
| Net cash flows provided by operating activities | 2,665 | 2,713 | 1,848 | ||||||||||||||
| Cash flows from investing activities | |||||||||||||||||
| Capital expenditures | (2,899) | (2,195) | (2,576) | ||||||||||||||
| Other investing activities | 6 | 7 | 8 | ||||||||||||||
| Net cash flows used in investing activities | (2,893) | (2,188) | (2,568) | ||||||||||||||
| Cash flows from financing activities | |||||||||||||||||
| Changes in short-term borrowings | (36) | (166) | (225) | ||||||||||||||
| Proceeds from short-term borrowings with maturities greater than 90 days | — | — | 400 | ||||||||||||||
| Repayments on short-term borrowings with maturities greater than 90 days | — | (400) | (150) | ||||||||||||||
| Issuance of long-term debt | 725 | 800 | 975 | ||||||||||||||
| Retirement of long-term debt | — | (250) | — | ||||||||||||||
| Dividends paid on common stock | (813) | (776) | (746) | ||||||||||||||
| Contributions from parent | 391 | 227 | 655 | ||||||||||||||
| Other financing activities | (8) | (14) | (14) | ||||||||||||||
| Net cash flows provided by (used in) financing activities | 259 | (579) | 895 | ||||||||||||||
| Increase (decrease) in cash, restricted cash, and cash equivalents | 31 | (54) | 175 | ||||||||||||||
| Cash, restricted cash, and cash equivalents at beginning of period | 632 | 686 | 511 | ||||||||||||||
| Cash, restricted cash, and cash equivalents at end of period | $ | 663 | $ | 632 | $ | 686 | |||||||||||
| Supplemental cash flow information | |||||||||||||||||
| Increase (decrease) in capital expenditures not paid | $ | 233 | $ | (17) | $ | (10) | |||||||||||
See the Combined Notes to Consolidated Financial Statements
Commonwealth Edison Company and Subsidiary Companies
Consolidated Balance Sheets
| December 31, | |||||||||||
| (In millions) | 2025 | 2024 | |||||||||
| ASSETS | |||||||||||
| Current assets | |||||||||||
| Cash and cash equivalents | $ | 159 | $ | 105 | |||||||
| Restricted cash and cash equivalents | 454 | 486 | |||||||||
| Accounts receivable | |||||||||||
| Customer accounts receivable | 1,058 | 994 | |||||||||
| Customer allowance for credit losses | (115) | (109) | |||||||||
| Customer accounts receivable, net | 943 | 885 | |||||||||
| Other accounts receivable | 1,155 | 290 | |||||||||
| Other allowance for credit losses | (23) | (34) | |||||||||
| Other accounts receivable, net | 1,132 | 256 | |||||||||
| Receivables from affiliates | 5 | 4 | |||||||||
| Inventories, net | 268 | 292 | |||||||||
| Regulatory assets | 595 | 1,159 | |||||||||
| Other | 217 | 141 | |||||||||
| Total current assets | 3,773 | 3,328 | |||||||||
| Property, plant, and equipment (net of accumulated depreciation and amortization of $8,291 and $7,619 as of December 31, 2025 and 2024, respectively) | 32,255 | 30,211 | |||||||||
| Deferred debits and other assets | |||||||||||
| Regulatory assets | 2,687 | 2,562 | |||||||||
| Goodwill | 2,625 | 2,625 | |||||||||
| Receivable related to Regulatory Agreement Units | 4,313 | 3,780 | |||||||||
| Investments | 6 | 6 | |||||||||
| Prepaid pension asset | 1,284 | 1,165 | |||||||||
| Other | 1,342 | 1,073 | |||||||||
| Total deferred debits and other assets | 12,257 | 11,211 | |||||||||
| Total assets | $ | 48,285 | $ | 44,750 |
See the Combined Notes to Consolidated Financial Statements
Commonwealth Edison Company and Subsidiary Companies
Consolidated Balance Sheets
| December 31, | |||||||||||
| (In millions) | 2025 | 2024 | |||||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||
| Current liabilities | |||||||||||
| Short-term borrowings | $ | — | $ | 36 | |||||||
| Long-term debt due within one year | 500 | — | |||||||||
| Accounts payable | 1,033 | 748 | |||||||||
| Accrued expenses | 474 | 463 | |||||||||
| Payables to affiliates | 81 | 77 | |||||||||
| Customer deposits | 192 | 134 | |||||||||
| Regulatory liabilities | 846 | 197 | |||||||||
| Mark-to-market derivative liabilities | 25 | 29 | |||||||||
| Other | 288 | 270 | |||||||||
| Total current liabilities | 3,439 | 1,954 | |||||||||
| Long-term debt | 12,253 | 12,030 | |||||||||
| Long-term debt to financing trust | 206 | 206 | |||||||||
| Deferred credits and other liabilities | |||||||||||
| Deferred income taxes and unamortized investment tax credits | 5,828 | 5,601 | |||||||||
| Regulatory liabilities | 9,163 | 8,421 | |||||||||
| Asset retirement obligations | 193 | 167 | |||||||||
| Non-pension postretirement benefit obligations | 151 | 156 | |||||||||
| Mark-to-market derivative liabilities | 106 | 103 | |||||||||
| Other | 1,341 | 1,232 | |||||||||
| Total deferred credits and other liabilities | 16,782 | 15,680 | |||||||||
| Total liabilities | 32,680 | 29,870 | |||||||||
| Commitments and contingencies | |||||||||||
| Shareholders’ equity | |||||||||||
| Common stock ($12.50 par value, 250 shares authorized, 127 shares outstanding as of December 31, 2025 and 2024) | 1,588 | 1,588 | |||||||||
| Other paid-in capital | 11,019 | 10,628 | |||||||||
| Retained earnings | 2,998 | 2,664 | |||||||||
| Total shareholders’ equity | 15,605 | 14,880 | |||||||||
| Total liabilities and shareholders’ equity | $ | 48,285 | $ | 44,750 |
See the Combined Notes to Consolidated Financial Statements
Commonwealth Edison Company and Subsidiary Companies
Consolidated Statements of Changes in Shareholders’ Equity
| (In millions) | Common Stock | Other Paid-In Capital | Retained Earnings | Total Shareholders’ Equity | |||||||||||||||||||
| Balance at December 31, 2022 | $ | 1,588 | $ | 9,746 | $ | 2,030 | $ | 13,364 | |||||||||||||||
| Net income | — | — | 1,090 | 1,090 | |||||||||||||||||||
| Common stock dividends | — | — | (746) | (746) | |||||||||||||||||||
| Contributions from parent | — | 655 | — | 655 | |||||||||||||||||||
| Balance at December 31, 2023 | $ | 1,588 | $ | 10,401 | $ | 2,374 | $ | 14,363 | |||||||||||||||
| Net income | — | — | 1,066 | 1,066 | |||||||||||||||||||
| Common stock dividends | — | — | (776) | (776) | |||||||||||||||||||
| Contributions from parent | — | 227 | — | 227 | |||||||||||||||||||
| Balance at December 31, 2024 | $ | 1,588 | $ | 10,628 | $ | 2,664 | $ | 14,880 | |||||||||||||||
| Net income | — | — | 1,147 | 1,147 | |||||||||||||||||||
| Common stock dividends | — | — | (813) | (813) | |||||||||||||||||||
| Contributions from parent | — | 391 | — | 391 | |||||||||||||||||||
| Balance at December 31, 2025 | $ | 1,588 | $ | 11,019 | $ | 2,998 | $ | 15,605 |
See the Combined Notes to Consolidated Financial Statements
PECO Energy Company and Subsidiary Companies
Consolidated Statements of Operations and Comprehensive Income
| For the Years Ended December 31, | |||||||||||||||||
| (In millions) | 2025 | 2024 | 2023 | ||||||||||||||
| Operating revenues | |||||||||||||||||
| Electric operating revenues | $ | 3,818 | $ | 3,312 | $ | 3,202 | |||||||||||
| Natural gas operating revenues | 854 | 645 | 690 | ||||||||||||||
| Revenues from alternative revenue programs | — | 6 | (7) | ||||||||||||||
| Operating revenues from affiliates | 12 | 10 | 9 | ||||||||||||||
| Total operating revenues | 4,684 | 3,973 | 3,894 | ||||||||||||||
| Operating expenses | |||||||||||||||||
| Purchased power | 1,436 | 1,265 | 1,270 | ||||||||||||||
| Purchased fuel | 297 | 212 | 274 | ||||||||||||||
| Operating and maintenance | 946 | 875 | 786 | ||||||||||||||
| Operating and maintenance from affiliates | 249 | 245 | 217 | ||||||||||||||
| Depreciation and amortization | 454 | 428 | 397 | ||||||||||||||
| Taxes other than income taxes | 240 | 218 | 202 | ||||||||||||||
| Total operating expenses | 3,622 | 3,243 | 3,146 | ||||||||||||||
| Gain on sale of assets | — | 4 | — | ||||||||||||||
| Operating income | 1,062 | 734 | 748 | ||||||||||||||
| Other income and (deductions) | |||||||||||||||||
| Interest expense, net | (249) | (221) | (192) | ||||||||||||||
| Interest expense to affiliates, net | (11) | (11) | (9) | ||||||||||||||
| Other, net | 41 | 37 | 36 | ||||||||||||||
| Total other income and (deductions) | (219) | (195) | (165) | ||||||||||||||
| Income before income taxes | 843 | 539 | 583 | ||||||||||||||
| Income taxes | 29 | (12) | 20 | ||||||||||||||
| Net income | $ | 814 | $ | 551 | $ | 563 | |||||||||||
| Comprehensive income | $ | 814 | $ | 551 | $ | 563 |
See the Combined Notes to Consolidated Financial Statements
PECO Energy Company and Subsidiary Companies
Consolidated Statements of Cash Flows
| For the Years Ended December 31, | |||||||||||||||||
| (In millions) | 2025 | 2024 | 2023 | ||||||||||||||
| Cash flows from operating activities | |||||||||||||||||
| Net income | $ | 814 | $ | 551 | $ | 563 | |||||||||||
| Adjustments to reconcile net income to net cash flows provided by operating activities: | |||||||||||||||||
| Depreciation and amortization | 454 | 428 | 397 | ||||||||||||||
| Gain on sales of assets | — | (4) | — | ||||||||||||||
| Deferred income taxes and amortization of investment tax credits | (69) | (63) | (43) | ||||||||||||||
| Other non-cash operating activities | 78 | 59 | 13 | ||||||||||||||
| Changes in assets and liabilities: | |||||||||||||||||
| Accounts receivable | (238) | (210) | 67 | ||||||||||||||
| Receivables from and payables to affiliates, net | (6) | 4 | (1) | ||||||||||||||
| Inventories | (12) | 1 | 34 | ||||||||||||||
| Accounts payable and accrued expenses | 118 | 23 | (78) | ||||||||||||||
| Collateral received, net | 6 | — | — | ||||||||||||||
| Income taxes | 283 | (76) | 86 | ||||||||||||||
| Regulatory assets and liabilities, net | (33) | 27 | (31) | ||||||||||||||
| Pension and non-pension postretirement benefit contributions | (13) | (4) | (1) | ||||||||||||||
| Other assets and liabilities | 21 | 18 | 13 | ||||||||||||||
| Net cash flows provided by operating activities | 1,403 | 754 | 1,019 | ||||||||||||||
| Cash flows from investing activities | |||||||||||||||||
| Capital expenditures | (1,867) | (1,553) | (1,426) | ||||||||||||||
| Other investing activities | 3 | 6 | 2 | ||||||||||||||
| Net cash flows used in investing activities | (1,864) | (1,547) | (1,424) | ||||||||||||||
| Cash flows from financing activities | |||||||||||||||||
| Change in short-term borrowings | (192) | 27 | (74) | ||||||||||||||
| Issuance of long-term debt | 1,050 | 575 | 575 | ||||||||||||||
| Retirement of long-term debt | (350) | — | (50) | ||||||||||||||
| Dividends paid on common stock | (546) | (400) | (405) | ||||||||||||||
| Contributions from parent | 577 | 595 | 348 | ||||||||||||||
| Other financing activities | (10) | (7) | (6) | ||||||||||||||
| Net cash flows provided by financing activities | 529 | 790 | 388 | ||||||||||||||
| Increase (decrease) in cash, restricted cash, and cash equivalents | 68 | (3) | (17) | ||||||||||||||
| Cash, restricted cash, and cash equivalents at beginning of period | 48 | 51 | 68 | ||||||||||||||
| Cash, restricted cash, and cash equivalents at end of period | $ | 116 | $ | 48 | $ | 51 | |||||||||||
| Supplemental cash flow information | |||||||||||||||||
| Increase (decrease) in capital expenditures not paid | $ | 94 | $ | 103 | $ | (56) | |||||||||||
See the Combined Notes to Consolidated Financial Statements
PECO Energy Company and Subsidiary Companies
Consolidated Balance Sheets
| December 31, | |||||||||||
| (In millions) | 2025 | 2024 | |||||||||
| ASSETS | |||||||||||
| Current assets | |||||||||||
| Cash and cash equivalents | $ | 116 | $ | 48 | |||||||
| Accounts receivable | |||||||||||
| Customer accounts receivable | 811 | 670 | |||||||||
| Customer allowance for credit losses | (137) | (133) | |||||||||
| Customer accounts receivable, net | 674 | 537 | |||||||||
| Other accounts receivable | 144 | 145 | |||||||||
| Other allowance for credit losses | (18) | (18) | |||||||||
| Other accounts receivable, net | 126 | 127 | |||||||||
| Inventories, net | |||||||||||
| Fossil fuel | 43 | 37 | |||||||||
| Materials and supplies | 83 | 79 | |||||||||
| Prepaid renewable energy credits | 55 | 51 | |||||||||
| Regulatory assets | 72 | 65 | |||||||||
| Other | 34 | 29 | |||||||||
| Total current assets | 1,203 | 973 | |||||||||
| Property, plant, and equipment (net of accumulated depreciation and amortization of $4,131 and $4,042 as of December 31, 2025 and 2024, respectively) | 15,922 | 14,392 | |||||||||
| Deferred debits and other assets | |||||||||||
| Regulatory assets | 1,275 | 1,003 | |||||||||
| Receivable related to Regulatory Agreement Units | 442 | 247 | |||||||||
| Investments | 45 | 41 | |||||||||
| Prepaid pension asset | 441 | 435 | |||||||||
| Other | 34 | 32 | |||||||||
| Total deferred debits and other assets | 2,237 | 1,758 | |||||||||
| Total assets | $ | 19,362 | $ | 17,123 |
See the Combined Notes to Consolidated Financial Statements
PECO Energy Company and Subsidiary Companies
Consolidated Balance Sheets
| December 31, | |||||||||||
| (In millions) | 2025 | 2024 | |||||||||
| LIABILITIES AND SHAREHOLDER'S EQUITY | |||||||||||
| Current liabilities | |||||||||||
| Short-term borrowings | $ | — | $ | 192 | |||||||
| Long-term debt due within one year | — | 350 | |||||||||
| Accounts payable | 811 | 639 | |||||||||
| Accrued expenses | 483 | 166 | |||||||||
| Payables to affiliates | 35 | 41 | |||||||||
| Customer deposits | 93 | 80 | |||||||||
| Renewable energy credit obligations | 56 | 52 | |||||||||
| Regulatory liabilities | 140 | 122 | |||||||||
| Other | 40 | 28 | |||||||||
| Total current liabilities | 1,658 | 1,670 | |||||||||
| Long-term debt | 6,396 | 5,354 | |||||||||
| Long-term debt to financing trusts | 184 | 184 | |||||||||
| Deferred credits and other liabilities | |||||||||||
| Deferred income taxes and unamortized investment tax credits | 2,594 | 2,433 | |||||||||
| Regulatory liabilities | 449 | 253 | |||||||||
| Asset retirement obligations | 26 | 27 | |||||||||
| Non-pension postretirement benefit obligations | 286 | 287 | |||||||||
| Other | 109 | 100 | |||||||||
| Total deferred credits and other liabilities | 3,464 | 3,100 | |||||||||
| Total liabilities | 11,702 | 10,308 | |||||||||
| Commitments and contingencies | |||||||||||
| Shareholder's equity | |||||||||||
| Common stock (No par value, 500 shares authorized, 170 shares outstanding as of December 31, 2025 and 2024) | 5,222 | 4,645 | |||||||||
| Retained earnings | 2,438 | 2,170 | |||||||||
| Total shareholder's equity | 7,660 | 6,815 | |||||||||
| Total liabilities and shareholder's equity | $ | 19,362 | $ | 17,123 |
See the Combined Notes to Consolidated Financial Statements
PECO Energy Company and Subsidiary Companies
Consolidated Statements of Changes in Shareholder's Equity
| (In millions) | Common Stock | Retained Earnings | Total Shareholder's Equity | ||||||||||||||||||||
| Balance at December 31, 2022 | $ | 3,702 | $ | 1,861 | $ | 5,563 | |||||||||||||||||
| Net income | — | 563 | 563 | ||||||||||||||||||||
| Common stock dividends | — | (405) | (405) | ||||||||||||||||||||
| Contributions from parent | 348 | — | 348 | ||||||||||||||||||||
| Balance at December 31, 2023 | $ | 4,050 | $ | 2,019 | $ | 6,069 | |||||||||||||||||
| Net income | — | 551 | 551 | ||||||||||||||||||||
| Common stock dividends | — | (400) | (400) | ||||||||||||||||||||
| Contributions from parent | 595 | — | 595 | ||||||||||||||||||||
| Balance at December 31, 2024 | $ | 4,645 | $ | 2,170 | $ | 6,815 | |||||||||||||||||
| Net income | — | 814 | 814 | ||||||||||||||||||||
| Common stock dividends | — | (546) | (546) | ||||||||||||||||||||
| Contributions from parent | 577 | — | 577 | ||||||||||||||||||||
| Balance at December 31, 2025 | $ | 5,222 | $ | 2,438 | $ | 7,660 |
See the Combined Notes to Consolidated Financial Statements
Baltimore Gas and Electric Company
Statements of Operations and Comprehensive Income
| For the Years Ended December 31, | |||||||||||||||||
| (In millions) | 2025 | 2024 | 2023 | ||||||||||||||
| Operating revenues | |||||||||||||||||
| Electric operating revenues | $ | 4,037 | $ | 3,407 | $ | 3,065 | |||||||||||
| Natural gas operating revenues | 1,264 | 957 | 869 | ||||||||||||||
| Revenues from alternative revenue programs | (87) | 52 | 84 | ||||||||||||||
| Operating revenues from affiliates | 8 | 10 | 9 | ||||||||||||||
| Total operating revenues | 5,222 | 4,426 | 4,027 | ||||||||||||||
| Operating expenses | |||||||||||||||||
| Purchased power | 1,890 | 1,460 | 1,311 | ||||||||||||||
| Purchased fuel | 331 | 191 | 220 | ||||||||||||||
| Operating and maintenance | 815 | 790 | 520 | ||||||||||||||
| Operating and maintenance from affiliates | 251 | 246 | 221 | ||||||||||||||
| Depreciation and amortization | 632 | 638 | 654 | ||||||||||||||
| Taxes other than income taxes | 370 | 345 | 319 | ||||||||||||||
| Total operating expenses | 4,289 | 3,670 | 3,245 | ||||||||||||||
| Operating income | 933 | 756 | 782 | ||||||||||||||
| Other income and (deductions) | |||||||||||||||||
| Interest expense, net | (247) | (216) | (182) | ||||||||||||||
| Other, net | 51 | 36 | 18 | ||||||||||||||
| Total other income and (deductions) | (196) | (180) | (164) | ||||||||||||||
| Income before income taxes | 737 | 576 | 618 | ||||||||||||||
| Income taxes | 159 | 49 | 133 | ||||||||||||||
| Net income | $ | 578 | $ | 527 | $ | 485 | |||||||||||
| Comprehensive income | $ | 578 | $ | 527 | $ | 485 | |||||||||||
See the Combined Notes to Consolidated Financial Statements
Baltimore Gas and Electric Company
Statements of Cash Flows
| For the Years Ended December 31, | |||||||||||||||||
| (In millions) | 2025 | 2024 | 2023 | ||||||||||||||
| Cash flows from operating activities | |||||||||||||||||
| Net income | $ | 578 | $ | 527 | $ | 485 | |||||||||||
| Adjustments to reconcile net income to net cash flows provided by operating activities: | |||||||||||||||||
| Depreciation and amortization | 632 | 638 | 654 | ||||||||||||||
| Deferred income taxes and amortization of investment tax credits | 86 | 5 | 66 | ||||||||||||||
| Other non-cash operating activities | 170 | 38 | (1) | ||||||||||||||
| Changes in assets and liabilities: | |||||||||||||||||
| Accounts receivable | (244) | (142) | 89 | ||||||||||||||
| Receivables from and payables to affiliates, net | (9) | 14 | (5) | ||||||||||||||
| Inventories | 3 | (5) | 47 | ||||||||||||||
| Accounts payable and accrued expenses | (18) | 35 | (75) | ||||||||||||||
| Collateral received (paid), net | 4 | (1) | (22) | ||||||||||||||
| Income taxes | 169 | (54) | 37 | ||||||||||||||
| Regulatory assets and liabilities, net | (97) | (84) | (292) | ||||||||||||||
| Pension and non-pension postretirement benefit contributions | (44) | (37) | (19) | ||||||||||||||
| Other assets and liabilities | (1) | (39) | (13) | ||||||||||||||
| Net cash flows provided by operating activities | 1,229 | 895 | 951 | ||||||||||||||
| Cash flows from investing activities | |||||||||||||||||
| Capital expenditures | (1,657) | (1,420) | (1,367) | ||||||||||||||
| Other investing activities | 9 | 12 | 7 | ||||||||||||||
| Net cash flows used in investing activities | (1,648) | (1,408) | (1,360) | ||||||||||||||
| Cash flows from financing activities | |||||||||||||||||
| Changes in short-term borrowings | (175) | (161) | (72) | ||||||||||||||
| Issuance of long-term debt | 650 | 800 | 700 | ||||||||||||||
| Retirement of long-term debt | — | — | (300) | ||||||||||||||
| Dividends paid on common stock | (393) | (368) | (316) | ||||||||||||||
| Contributions from parent | 531 | 237 | 385 | ||||||||||||||
| Other financing activities | (8) | (9) | (7) | ||||||||||||||
| Net cash flows provided by financing activities | 605 | 499 | 390 | ||||||||||||||
| Increase (decrease) in cash, restricted cash, and cash equivalents | 186 | (14) | (19) | ||||||||||||||
| Cash, restricted cash, and cash equivalents at beginning of period | 34 | 48 | 67 | ||||||||||||||
| Cash, restricted cash, and cash equivalents at end of period | $ | 220 | $ | 34 | $ | 48 | |||||||||||
| Supplemental cash flow information | |||||||||||||||||
| Increase (decrease) in capital expenditures not paid | $ | 153 | $ | 156 | $ | (44) | |||||||||||
See the Combined Notes to Consolidated Financial Statements
Baltimore Gas and Electric Company
Balance Sheets
| December 31, | |||||||||||
| (In millions) | 2025 | 2024 | |||||||||
| ASSETS | |||||||||||
| Current assets | |||||||||||
| Cash and cash equivalents | $ | 217 | $ | 33 | |||||||
| Restricted cash and cash equivalents | 3 | 1 | |||||||||
| Accounts receivable | |||||||||||
| Customer accounts receivable | 887 | 654 | |||||||||
| Customer allowance for credit losses | (68) | (56) | |||||||||
| Customer accounts receivable, net | 819 | 598 | |||||||||
| Other accounts receivable | 100 | 113 | |||||||||
| Other allowance for credit losses | (4) | (6) | |||||||||
| Other accounts receivable, net | 96 | 107 | |||||||||
| Receivables from affiliates | 1 | — | |||||||||
| Inventories, net | |||||||||||
| Fossil fuel | 36 | 29 | |||||||||
| Materials and supplies | 74 | 84 | |||||||||
| Prepaid utility taxes | 126 | 115 | |||||||||
| Regulatory assets | 175 | 207 | |||||||||
| Prepaid renewable energy credits | 189 | 157 | |||||||||
| Other | 14 | 17 | |||||||||
| Total current assets | 1,750 | 1,348 | |||||||||
| Property, plant, and equipment (net of accumulated depreciation and amortization of $5,234 and $5,005 as of December 31, 2025 and 2024, respectively) | 14,385 | 13,134 | |||||||||
| Deferred debits and other assets | |||||||||||
| Regulatory assets | 804 | 788 | |||||||||
| Investments | 10 | 10 | |||||||||
| Prepaid pension asset | 194 | 218 | |||||||||
| Other | 41 | 44 | |||||||||
| Total deferred debits and other assets | 1,049 | 1,060 | |||||||||
| Total assets | $ | 17,184 | $ | 15,542 |
See the Combined Notes to Consolidated Financial Statements
Baltimore Gas and Electric Company
Balance Sheets
| December 31, | |||||||||||
| (In millions) | 2025 | 2024 | |||||||||
| LIABILITIES AND SHAREHOLDER'S EQUITY | |||||||||||
| Current liabilities | |||||||||||
| Short-term borrowings | $ | — | $ | 175 | |||||||
| Long-term debt due within one year | 350 | — | |||||||||
| Accounts payable | 640 | 515 | |||||||||
| Accrued expenses | 352 | 176 | |||||||||
| Payables to affiliates | 39 | 48 | |||||||||
| Customer deposits | 125 | 118 | |||||||||
| Regulatory liabilities | 31 | 12 | |||||||||
| Renewable energy credit obligations | 194 | 160 | |||||||||
| Other | 39 | 39 | |||||||||
| Total current liabilities | 1,770 | 1,243 | |||||||||
| Long-term debt | 5,691 | 5,395 | |||||||||
| Deferred credits and other liabilities | |||||||||||
| Deferred income taxes and unamortized investment tax credits | 2,242 | 2,099 | |||||||||
| Regulatory liabilities | 595 | 636 | |||||||||
| Asset retirement obligations | 36 | 36 | |||||||||
| Non-pension postretirement benefit obligations | 144 | 150 | |||||||||
| Other | 104 | 97 | |||||||||
| Total deferred credits and other liabilities | 3,121 | 3,018 | |||||||||
| Total liabilities | 10,582 | 9,656 | |||||||||
| Commitments and contingencies | |||||||||||
| Shareholder's equity | |||||||||||
| Common stock (No par value, 0 shares(a) authorized, 0 shares(a) outstanding as of December 31, 2025 and 2024) | 4,014 | 3,483 | |||||||||
| Retained earnings | 2,588 | 2,403 | |||||||||
| Total shareholder's equity | 6,602 | 5,886 | |||||||||
| Total liabilities and shareholder's equity | $ | 17,184 | $ | 15,542 |
(a)In millions, shares round to zero. Number of shares is 1,500 authorized and 1,000 outstanding as of December 31, 2025 and 2024.
See the Combined Notes to Consolidated Financial Statements
Baltimore Gas and Electric Company
Statements of Changes in Shareholder's Equity
| (In millions) | Common Stock | Retained Earnings | Total Shareholder's Equity | ||||||||||||||||||||||||||||||||
| Balance at December 31, 2022 | $ | 2,861 | $ | 2,075 | $ | 4,936 | |||||||||||||||||||||||||||||
| Net income | — | 485 | 485 | ||||||||||||||||||||||||||||||||
| Common stock dividends | — | (316) | (316) | ||||||||||||||||||||||||||||||||
| Contributions from parent | 385 | — | 385 | ||||||||||||||||||||||||||||||||
| Balance at December 31, 2023 | $ | 3,246 | $ | 2,244 | $ | 5,490 | |||||||||||||||||||||||||||||
| Net income | — | 527 | 527 | ||||||||||||||||||||||||||||||||
| Common stock dividends | — | (368) | (368) | ||||||||||||||||||||||||||||||||
| Contributions from parent | 237 | — | 237 | ||||||||||||||||||||||||||||||||
| Balance at December 31, 2024 | $ | 3,483 | $ | 2,403 | $ | 5,886 | |||||||||||||||||||||||||||||
| Net income | — | 578 | 578 | ||||||||||||||||||||||||||||||||
| Common stock dividends | — | (393) | (393) | ||||||||||||||||||||||||||||||||
| Contributions from parent | 531 | — | 531 | ||||||||||||||||||||||||||||||||
| Balance at December 31, 2025 | $ | 4,014 | $ | 2,588 | $ | 6,602 |
See the Combined Notes to Consolidated Financial Statements
Pepco Holdings LLC and Subsidiary Companies
Consolidated Statements of Operations and Comprehensive Income
| For the Years Ended December 31, | ||||||||||||||||||||||||||
| (In millions) | 2025 | 2024 | 2023 | |||||||||||||||||||||||
| Operating revenues | ||||||||||||||||||||||||||
| Electric operating revenues | $ | 6,957 | $ | 6,257 | $ | 5,748 | ||||||||||||||||||||
| Natural gas operating revenues | 231 | 180 | 205 | |||||||||||||||||||||||
| Revenues from alternative revenue programs | (63) | 1 | 64 | |||||||||||||||||||||||
| Operating revenues from affiliates | 10 | 10 | 9 | |||||||||||||||||||||||
| Total operating revenues | 7,135 | 6,448 | 6,026 | |||||||||||||||||||||||
| Operating expenses | ||||||||||||||||||||||||||
| Purchased power | 2,836 | 2,447 | 2,250 | |||||||||||||||||||||||
| Purchased fuel | 95 | 66 | 98 | |||||||||||||||||||||||
| Operating and maintenance | 1,123 | 1,046 | 1,110 | |||||||||||||||||||||||
| Operating and maintenance from affiliates | 204 | 204 | 179 | |||||||||||||||||||||||
| Depreciation and amortization | 935 | 947 | 990 | |||||||||||||||||||||||
| Taxes other than income taxes | 568 | 528 | 487 | |||||||||||||||||||||||
| Total operating expenses | 5,761 | 5,238 | 5,114 | |||||||||||||||||||||||
| Gain (loss) on sales of assets | 3 | (1) | 9 | |||||||||||||||||||||||
| Operating income | 1,377 | 1,209 | 921 | |||||||||||||||||||||||
| Other income and (deductions) | ||||||||||||||||||||||||||
| Interest expense, net | (408) | (373) | (323) | |||||||||||||||||||||||
| Interest expense to affiliates, net | (3) | (3) | — | |||||||||||||||||||||||
| Other, net | 72 | 97 | 108 | |||||||||||||||||||||||
| Total other income and (deductions) | (339) | (279) | (215) | |||||||||||||||||||||||
| Income before income taxes | 1,038 | 930 | 706 | |||||||||||||||||||||||
| Income taxes | 239 | 189 | 116 | |||||||||||||||||||||||
| Net income | $ | 799 | $ | 741 | $ | 590 | ||||||||||||||||||||
| Comprehensive income | $ | 799 | $ | 741 | $ | 590 |
See the Combined Notes to Consolidated Financial Statements
Pepco Holdings LLC and Subsidiary Companies
Consolidated Statements of Cash Flows
| For the Years Ended December 31, | |||||||||||||||||
| (In millions) | 2025 | 2024 | 2023 | ||||||||||||||
| Cash flows from operating activities | |||||||||||||||||
| Net income | $ | 799 | $ | 741 | $ | 590 | |||||||||||
| Adjustments to reconcile net income to net cash flows used in operating activities: | |||||||||||||||||
| Depreciation, amortization, and accretion | 937 | 947 | 990 | ||||||||||||||
| (Gain) loss on sales of assets | (3) | 1 | (9) | ||||||||||||||
| Deferred income taxes and amortization of investment tax credits | 132 | 73 | 29 | ||||||||||||||
| Other non-cash operating activities | 241 | 188 | 110 | ||||||||||||||
| Changes in assets and liabilities: | |||||||||||||||||
| Accounts receivable | (204) | (110) | (79) | ||||||||||||||
| Receivables from and payables to affiliates, net | (1) | 2 | (8) | ||||||||||||||
| Inventories | (32) | (37) | (42) | ||||||||||||||
| Accounts payable and accrued expenses | 8 | 66 | 40 | ||||||||||||||
| Collateral received (paid), net | 17 | — | (196) | ||||||||||||||
| Income taxes | (7) | (33) | 65 | ||||||||||||||
| Regulatory assets and liabilities, net | (192) | (223) | (61) | ||||||||||||||
| Pension and non-pension postretirement benefit contributions | (50) | (86) | (24) | ||||||||||||||
| Other assets and liabilities | (47) | (119) | (101) | ||||||||||||||
| Net cash flows provided by operating activities | 1,598 | 1,410 | 1,304 | ||||||||||||||
| Cash flows from investing activities | |||||||||||||||||
| Capital expenditures | (2,056) | (1,863) | (1,988) | ||||||||||||||
| Proceeds from sales of long-lived assets | 4 | — | 10 | ||||||||||||||
| Other investing activities | — | — | 8 | ||||||||||||||
| Net cash flows used in investing activities | (2,052) | (1,863) | (1,970) | ||||||||||||||
| Cash flows from financing activities | |||||||||||||||||
| Changes in short-term borrowings | 82 | 136 | (20) | ||||||||||||||
| Issuance of long-term debt | 650 | 1,100 | 1,075 | ||||||||||||||
| Retirement of long-term debt | (150) | (583) | (500) | ||||||||||||||
| Change in Exelon intercompany money pool | 17 | (2) | 21 | ||||||||||||||
| Distributions to member | (710) | (706) | (513) | ||||||||||||||
| Contributions from member | 568 | 505 | 475 | ||||||||||||||
| Other financing activities | (25) | (38) | (41) | ||||||||||||||
| Net cash flows provided by financing activities | 432 | 412 | 497 | ||||||||||||||
| Decrease in cash, restricted cash, and cash equivalents | (22) | (41) | (169) | ||||||||||||||
| Cash, restricted cash, and cash equivalents at beginning of period | 163 | 204 | 373 | ||||||||||||||
| Cash, restricted cash, and cash equivalents at end of period | $ | 141 | $ | 163 | $ | 204 | |||||||||||
| Supplemental cash flow information | |||||||||||||||||
| Increase (decrease) in capital expenditures not paid | $ | 79 | $ | 76 | $ | (109) | |||||||||||
See the Combined Notes to Consolidated Financial Statements
Pepco Holdings LLC and Subsidiary Companies
Consolidated Balance Sheets
| December 31, | |||||||||||
| (In millions) | 2025 | 2024 | |||||||||
| ASSETS | |||||||||||
| Current assets | |||||||||||
| Cash and cash equivalents | $ | 103 | $ | 139 | |||||||
| Restricted cash and cash equivalents | 38 | 24 | |||||||||
| Accounts receivable | |||||||||||
| Customer accounts receivable | 975 | 827 | |||||||||
| Customer allowance for credit losses | (115) | (108) | |||||||||
| Customer accounts receivable, net | 860 | 719 | |||||||||
| Other accounts receivable | 292 | 284 | |||||||||
| Other allowance for credit losses | (49) | (49) | |||||||||
| Other accounts receivable, net | 243 | 235 | |||||||||
| Receivable from affiliates | 14 | 8 | |||||||||
| Inventories, net | |||||||||||
| Fossil fuel | 9 | 7 | |||||||||
| Materials and supplies | 357 | 325 | |||||||||
| Prepaid utility taxes | 77 | 70 | |||||||||
| Regulatory assets | 352 | 323 | |||||||||
| Prepaid renewable energy credits | 201 | 194 | |||||||||
| Other | 34 | 36 | |||||||||
| Total current assets | 2,288 | 2,080 | |||||||||
| Property, plant, and equipment (net of accumulated depreciation and amortization of $4,350 and $3,728 as of December 31, 2025 and 2024, respectively) | 21,377 | 20,053 | |||||||||
| Deferred debits and other assets | |||||||||||
| Regulatory assets | 1,556 | 1,570 | |||||||||
| Goodwill | 4,005 | 4,005 | |||||||||
| Investments | 158 | 152 | |||||||||
| Prepaid pension asset | 199 | 252 | |||||||||
| Other | 132 | 185 | |||||||||
| Total deferred debits and other assets | 6,050 | 6,164 | |||||||||
| Total assets | $ | 29,715 | $ | 28,297 |
See the Combined Notes to Consolidated Financial Statements
Pepco Holdings LLC and Subsidiary Companies
Consolidated Balance Sheets
| December 31, | |||||||||||
| (In millions) | 2025 | 2024 | |||||||||
| LIABILITIES AND MEMBER'S EQUITY | |||||||||||
| Current liabilities | |||||||||||
| Short-term borrowings | $ | 612 | $ | 530 | |||||||
| Long-term debt due within one year | 64 | 290 | |||||||||
| Accounts payable | 816 | 721 | |||||||||
| Accrued expenses | 359 | 367 | |||||||||
| Payables to affiliates | 71 | 66 | |||||||||
| Borrowings from Exelon intercompany money pool | 80 | 63 | |||||||||
| Customer deposits | 123 | 113 | |||||||||
| Regulatory liabilities | 103 | 69 | |||||||||
| Unamortized energy contract liabilities | 5 | 5 | |||||||||
| Renewable energy credit obligations | 223 | 217 | |||||||||
| Other | 121 | 124 | |||||||||
| Total current liabilities | 2,577 | 2,565 | |||||||||
| Long-term debt | 9,526 | 8,834 | |||||||||
| Deferred credits and other liabilities | |||||||||||
| Deferred income taxes and unamortized investment tax credits | 3,391 | 3,190 | |||||||||
| Regulatory liabilities | 722 | 794 | |||||||||
| Asset retirement obligations | 62 | 67 | |||||||||
| Non-pension postretirement benefit obligations | 24 | 31 | |||||||||
| Unamortized energy contract liabilities | 16 | 21 | |||||||||
| Other | 418 | 473 | |||||||||
| Total deferred credits and other liabilities | 4,633 | 4,576 | |||||||||
| Total liabilities | 16,736 | 15,975 | |||||||||
| Commitments and contingencies | |||||||||||
| Member's equity | |||||||||||
| Membership interest | 13,130 | 12,562 | |||||||||
| Undistributed losses | (151) | (240) | |||||||||
| Total member's equity | 12,979 | 12,322 | |||||||||
| Total liabilities and member's equity | $ | 29,715 | $ | 28,297 |
See the Combined Notes to Consolidated Financial Statements
Pepco Holdings LLC and Subsidiary Companies
Consolidated Statements of Changes in Member's Equity
| (In millions) | Membership Interest | Undistributed (Losses)/Gains | Total Member's Equity | ||||||||||||||||||||
| Balance at December 31, 2022 | $ | 11,582 | $ | (352) | $ | 11,230 | |||||||||||||||||
| Net income | — | 590 | 590 | ||||||||||||||||||||
| Distribution to member | — | (513) | (513) | ||||||||||||||||||||
| Contributions from member | 475 | — | 475 | ||||||||||||||||||||
| Balance at December 31, 2023 | $ | 12,057 | $ | (275) | $ | 11,782 | |||||||||||||||||
| Net income | — | 741 | 741 | ||||||||||||||||||||
| Distribution to member | — | (706) | (706) | ||||||||||||||||||||
| Contributions from member | 505 | — | 505 | ||||||||||||||||||||
| Balance at December 31, 2024 | $ | 12,562 | $ | (240) | $ | 12,322 | |||||||||||||||||
| Net income | — | 799 | 799 | ||||||||||||||||||||
| Distribution to member | — | (710) | (710) | ||||||||||||||||||||
| Contributions from member | 568 | — | 568 | ||||||||||||||||||||
| Balance at December 31, 2025 | $ | 13,130 | $ | (151) | $ | 12,979 |
See the Combined Notes to Consolidated Financial Statements
Potomac Electric Power Company
Statements of Operations and Comprehensive Income
| For the Years Ended December 31, | |||||||||||||||||
| (In millions) | 2025 | 2024 | 2023 | ||||||||||||||
| Operating revenues | |||||||||||||||||
| Electric operating revenues | $ | 3,497 | $ | 3,017 | $ | 2,793 | |||||||||||
| Revenues from alternative revenue programs | (49) | 15 | 22 | ||||||||||||||
| Operating revenues from affiliates | 6 | 7 | 9 | ||||||||||||||
| Total operating revenues | 3,454 | 3,039 | 2,824 | ||||||||||||||
| Operating expenses | |||||||||||||||||
| Purchased power | 1,262 | 1,055 | 974 | ||||||||||||||
| Operating and maintenance | 379 | 283 | 336 | ||||||||||||||
| Operating and maintenance from affiliates | 246 | 251 | 236 | ||||||||||||||
| Depreciation and amortization | 433 | 407 | 441 | ||||||||||||||
| Taxes other than income taxes | 455 | 424 | 390 | ||||||||||||||
| Total operating expenses | 2,775 | 2,420 | 2,377 | ||||||||||||||
| Gain (loss) on sales of assets | 1 | (1) | 9 | ||||||||||||||
| Operating income | 680 | 618 | 456 | ||||||||||||||
| Other income and (deductions) | |||||||||||||||||
| Interest expense, net | (214) | (195) | (165) | ||||||||||||||
| Interest income from affiliates, net | — | 3 | — | ||||||||||||||
| Other, net | 41 | 54 | 66 | ||||||||||||||
| Total other income and (deductions) | (173) | (138) | (99) | ||||||||||||||
| Income before income taxes | 507 | 480 | 357 | ||||||||||||||
| Income taxes | 106 | 90 | 51 | ||||||||||||||
| Net income | $ | 401 | $ | 390 | $ | 306 | |||||||||||
| Comprehensive income | $ | 401 | $ | 390 | $ | 306 |
See the Combined Notes to Consolidated Financial Statements
Potomac Electric Power Company
Statements of Cash Flows
| For the Years Ended December 31, | |||||||||||||||||
| (In millions) | 2025 | 2024 | 2023 | ||||||||||||||
| Cash flows from operating activities | |||||||||||||||||
| Net income | $ | 401 | $ | 390 | $ | 306 | |||||||||||
| Adjustments to reconcile net income to net cash flows provided by operating activities: | |||||||||||||||||
| Depreciation, amortization, and accretion | 435 | 407 | 441 | ||||||||||||||
| (Gain) loss on sales of assets | (1) | 1 | (9) | ||||||||||||||
| Deferred income taxes and amortization of investment tax credits | 51 | 24 | (15) | ||||||||||||||
| Other non-cash operating activities | 111 | 33 | 53 | ||||||||||||||
| Changes in assets and liabilities: | |||||||||||||||||
| Accounts receivable | (121) | (26) | (29) | ||||||||||||||
| Receivables from and payables to affiliates, net | 4 | 6 | (3) | ||||||||||||||
| Inventories | (4) | (10) | (24) | ||||||||||||||
| Accounts payable and accrued expenses | 1 | 67 | 6 | ||||||||||||||
| Collateral received (paid), net | 12 | — | (25) | ||||||||||||||
| Income taxes | (33) | (30) | 60 | ||||||||||||||
| Regulatory assets and liabilities, net | (93) | (85) | (45) | ||||||||||||||
| Pension and non-pension postretirement benefit contributions | (9) | (9) | (12) | ||||||||||||||
| Other assets and liabilities | (29) | (84) | (5) | ||||||||||||||
| Net cash flows provided by operating activities | 725 | 684 | 699 | ||||||||||||||
| Cash flows from investing activities | |||||||||||||||||
| Capital expenditures | (957) | (929) | (957) | ||||||||||||||
| Proceeds from sale of long-lived assets | 2 | — | 10 | ||||||||||||||
| Other investing activities | — | — | 8 | ||||||||||||||
| Net cash flows used in investing activities | (955) | (929) | (939) | ||||||||||||||
| Cash flows from financing activities | |||||||||||||||||
| Changes in short-term borrowings | 103 | 68 | (167) | ||||||||||||||
| Issuance of long-term debt | 275 | 675 | 350 | ||||||||||||||
| Retirement of long-term debt | — | (400) | — | ||||||||||||||
| Dividends paid on common stock | (327) | (359) | (252) | ||||||||||||||
| Contributions from parent | 193 | 260 | 308 | ||||||||||||||
| Other financing activities | (10) | (20) | (26) | ||||||||||||||
| Net cash flows provided by financing activities | 234 | 224 | 213 | ||||||||||||||
| Increase (decrease) in cash, restricted cash, and cash equivalents | 4 | (21) | (27) | ||||||||||||||
| Cash, restricted cash, and cash equivalents at beginning of period | 51 | 72 | 99 | ||||||||||||||
| Cash, restricted cash, and cash equivalents at end of period | $ | 55 | $ | 51 | $ | 72 | |||||||||||
| Supplemental cash flow information | |||||||||||||||||
| Increase (decrease) in capital expenditures not paid | $ | 56 | $ | 30 | $ | (55) | |||||||||||
See the Combined Notes to Consolidated Financial Statements
Potomac Electric Power Company
Balance Sheets
| December 31, | |||||||||||
| (In millions) | 2025 | 2024 | |||||||||
| ASSETS | |||||||||||
| Current assets | |||||||||||
| Cash and cash equivalents | $ | 22 | $ | 30 | |||||||
| Restricted cash and cash equivalents | 33 | 21 | |||||||||
| Accounts receivable | |||||||||||
| Customer accounts receivable | 484 | 395 | |||||||||
| Customer allowance for credit losses | (69) | (59) | |||||||||
| Customer accounts receivable, net | 415 | 336 | |||||||||
| Other accounts receivable | 154 | 142 | |||||||||
| Other allowance for credit losses | (26) | (27) | |||||||||
| Other accounts receivable, net | 128 | 115 | |||||||||
| Receivables from affiliates | — | 1 | |||||||||
| Inventories, net | 174 | 169 | |||||||||
| Regulatory assets | 182 | 157 | |||||||||
| Prepaid renewable energy credits | 171 | 165 | |||||||||
| Other | 59 | 55 | |||||||||
| Total current assets | 1,184 | 1,049 | |||||||||
| Property, plant, and equipment (net of accumulated depreciation and amortization of $4,784 and $4,522 as of December 31, 2025 and 2024, respectively) | 10,747 | 10,097 | |||||||||
| Deferred debits and other assets | |||||||||||
| Regulatory assets | 405 | 446 | |||||||||
| Investments | 141 | 135 | |||||||||
| Prepaid pension asset | 194 | 222 | |||||||||
| Other | 57 | 51 | |||||||||
| Total deferred debits and other assets | 797 | 854 | |||||||||
| Total assets | $ | 12,728 | $ | 12,000 |
See the Combined Notes to Consolidated Financial Statements
Potomac Electric Power Company
Balance Sheets
| December 31, | |||||||||||
| (In millions) | 2025 | 2024 | |||||||||
| LIABILITIES AND SHAREHOLDER'S EQUITY | |||||||||||
| Current liabilities | |||||||||||
| Short-term borrowings | $ | 303 | $ | 200 | |||||||
| Long-term debt due within one year | 6 | 6 | |||||||||
| Accounts payable | 418 | 360 | |||||||||
| Accrued expenses | 173 | 201 | |||||||||
| Payables to affiliates | 37 | 37 | |||||||||
| Customer deposits | 61 | 55 | |||||||||
| Regulatory liabilities | 13 | 17 | |||||||||
| Merger related obligation | 20 | 22 | |||||||||
| Renewable energy credit obligations | 174 | 169 | |||||||||
| Other | 64 | 51 | |||||||||
| Total current liabilities | 1,269 | 1,118 | |||||||||
| Long-term debt | 4,626 | 4,356 | |||||||||
| Deferred credits and other liabilities | |||||||||||
| Deferred income taxes and unamortized investment tax credits | 1,604 | 1,509 | |||||||||
| Regulatory liabilities | 268 | 310 | |||||||||
| Asset retirement obligations | 45 | 49 | |||||||||
| Other | 214 | 223 | |||||||||
| Total deferred credits and other liabilities | 2,131 | 2,091 | |||||||||
| Total liabilities | 8,026 | 7,565 | |||||||||
| Commitments and contingencies | |||||||||||
| Shareholder's equity | |||||||||||
| Common stock ($0.01 par value, 200 shares authorized, 0 shares(a) outstanding as of December 31, 2025 and 2024) | 3,528 | 3,335 | |||||||||
| Retained earnings | 1,174 | 1,100 | |||||||||
| Total shareholder's equity | 4,702 | 4,435 | |||||||||
| Total liabilities and shareholder's equity | $ | 12,728 | $ | 12,000 |
(a)In millions, shares round to zero. Number of shares is 100 outstanding as of December 31, 2025 and 2024.
See the Combined Notes to Consolidated Financial Statements
Potomac Electric Power Company
Statements of Changes in Shareholder's Equity
| (In millions) | Common Stock | Retained Earnings | Total Shareholder's Equity | ||||||||||||||
| Balance at December 31, 2022 | $ | 2,767 | $ | 1,015 | $ | 3,782 | |||||||||||
| Net income | — | 306 | 306 | ||||||||||||||
| Common stock dividends | — | (252) | (252) | ||||||||||||||
| Contributions from parent | 308 | — | 308 | ||||||||||||||
| Balance at December 31, 2023 | $ | 3,075 | $ | 1,069 | $ | 4,144 | |||||||||||
| Net income | — | 390 | 390 | ||||||||||||||
| Common stock dividends | — | (359) | (359) | ||||||||||||||
| Contributions from parent | 260 | — | 260 | ||||||||||||||
| Balance at December 31, 2024 | $ | 3,335 | $ | 1,100 | $ | 4,435 | |||||||||||
| Net income | — | 401 | 401 | ||||||||||||||
| Common stock dividends | — | (327) | (327) | ||||||||||||||
| Contributions from parent | 193 | — | 193 | ||||||||||||||
| Balance at December 31, 2025 | $ | 3,528 | $ | 1,174 | $ | 4,702 |
See the Combined Notes to Consolidated Financial Statements
Delmarva Power & Light Company
Statements of Operations and Comprehensive Income
| For the Years Ended December 31, | |||||||||||||||||
| (In millions) | 2025 | 2024 | 2023 | ||||||||||||||
| Operating revenues | |||||||||||||||||
| Electric operating revenues | $ | 1,747 | $ | 1,602 | $ | 1,460 | |||||||||||
| Natural gas operating revenues | 231 | 180 | 205 | ||||||||||||||
| Revenues from alternative revenue programs | (16) | (2) | 15 | ||||||||||||||
| Operating revenues from affiliates | 9 | 7 | 8 | ||||||||||||||
| Total operating revenues | 1,971 | 1,787 | 1,688 | ||||||||||||||
| Operating expenses | |||||||||||||||||
| Purchased power | 766 | 694 | 639 | ||||||||||||||
| Purchased fuel | 95 | 66 | 98 | ||||||||||||||
| Operating and maintenance | 213 | 196 | 193 | ||||||||||||||
| Operating and maintenance from affiliates | 178 | 181 | 171 | ||||||||||||||
| Depreciation and amortization | 252 | 245 | 244 | ||||||||||||||
| Taxes other than income taxes | 88 | 79 | 75 | ||||||||||||||
| Total operating expenses | 1,592 | 1,461 | 1,420 | ||||||||||||||
| Operating income | 379 | 326 | 268 | ||||||||||||||
| Other income and (deductions) | |||||||||||||||||
| Interest expense, net | (102) | (94) | (74) | ||||||||||||||
| Interest income from affiliates, net | — | 1 | — | ||||||||||||||
| Other, net | 16 | 25 | 18 | ||||||||||||||
| Total other income and (deductions) | (86) | (68) | (56) | ||||||||||||||
| Income before income taxes | 293 | 258 | 212 | ||||||||||||||
| Income taxes | 69 | 49 | 35 | ||||||||||||||
| Net income | $ | 224 | $ | 209 | $ | 177 | |||||||||||
| Comprehensive income | $ | 224 | $ | 209 | $ | 177 |
See the Combined Notes to Consolidated Financial Statements
Delmarva Power & Light Company
Statements of Cash Flows
| For the Years Ended December 31, | |||||||||||||||||
| (In millions) | 2025 | 2024 | 2023 | ||||||||||||||
| Cash flows from operating activities | |||||||||||||||||
| Net income | $ | 224 | $ | 209 | $ | 177 | |||||||||||
| Adjustments to reconcile net income to net cash flows provided by operating activities: | |||||||||||||||||
| Depreciation and amortization | 252 | 245 | 244 | ||||||||||||||
| Deferred income taxes and amortization of investment tax credits | 32 | 16 | 4 | ||||||||||||||
| Other non-cash operating activities | 57 | 40 | 13 | ||||||||||||||
| Changes in assets and liabilities: | |||||||||||||||||
| Accounts receivable | (70) | (46) | 6 | ||||||||||||||
| Receivables from and payables to affiliates, net | (3) | 2 | 2 | ||||||||||||||
| Inventories | (14) | (20) | (5) | ||||||||||||||
| Accounts payable and accrued expenses | 20 | 22 | (7) | ||||||||||||||
| Collateral received (paid), net | 2 | 2 | (121) | ||||||||||||||
| Income taxes | 16 | (24) | 26 | ||||||||||||||
| Regulatory assets and liabilities, net | (35) | (51) | 25 | ||||||||||||||
| Pension and non-pension postretirement benefit contributions | (1) | (3) | (4) | ||||||||||||||
| Other assets and liabilities | 6 | 16 | 13 | ||||||||||||||
| Net cash flows provided by operating activities | 486 | 408 | 373 | ||||||||||||||
| Cash flows from investing activities | |||||||||||||||||
| Capital expenditures | (534) | (556) | (562) | ||||||||||||||
| Net cash flows used in investing activities | (534) | (556) | (562) | ||||||||||||||
| Cash flows from financing activities | |||||||||||||||||
| Changes in short-term borrowings | 17 | 81 | (52) | ||||||||||||||
| Issuance of long-term debt | 125 | 175 | 650 | ||||||||||||||
| Retirement of long-term debt | — | (33) | (500) | ||||||||||||||
| Dividends paid on common stock | (202) | (220) | (133) | ||||||||||||||
| Contributions from parent | 107 | 160 | 99 | ||||||||||||||
| Other financing activities | (10) | (8) | (11) | ||||||||||||||
| Net cash flows provided by financing activities | 37 | 155 | 53 | ||||||||||||||
| (Decrease) increase in cash, restricted cash, and cash equivalents | (11) | 7 | (136) | ||||||||||||||
| Cash, restricted cash, and cash equivalents at beginning of period | 23 | 16 | 152 | ||||||||||||||
| Cash, restricted cash, and cash equivalents at end of period | $ | 12 | $ | 23 | $ | 16 | |||||||||||
| Supplemental cash flow information | |||||||||||||||||
| Increase (decrease) in capital expenditures not paid | $ | 13 | $ | 41 | $ | (6) | |||||||||||
See the Combined Notes to Consolidated Financial Statements
Delmarva Power & Light Company
Balance Sheets
| December 31, | |||||||||||
| (In millions) | 2025 | 2024 | |||||||||
| ASSETS | |||||||||||
| Current assets | |||||||||||
| Cash and cash equivalents | $ | 9 | $ | 21 | |||||||
| Restricted cash and cash equivalents | 3 | 2 | |||||||||
| Accounts receivable | |||||||||||
| Customer accounts receivable | 253 | 210 | |||||||||
| Customer allowance for credit losses | (19) | (17) | |||||||||
| Customer accounts receivable, net | 234 | 193 | |||||||||
| Other accounts receivable | 75 | 63 | |||||||||
| Other allowance for credit losses | (10) | (9) | |||||||||
| Other accounts receivable, net | 65 | 54 | |||||||||
| Receivables from affiliates | 2 | — | |||||||||
| Inventories, net | |||||||||||
| Fossil fuel | 9 | 6 | |||||||||
| Materials and supplies | 107 | 95 | |||||||||
| Prepaid utility taxes | 29 | 26 | |||||||||
| Regulatory assets | 72 | 60 | |||||||||
| Prepaid renewable energy credits | 30 | 29 | |||||||||
| Other | 13 | 16 | |||||||||
| Total current assets | 573 | 502 | |||||||||
| Property, plant, and equipment, (net of accumulated depreciation and amortization of $2,241 and $2,075 as of December 31, 2025 and 2024, respectively) | 5,855 | 5,540 | |||||||||
| Deferred debits and other assets | |||||||||||
| Regulatory assets | 214 | 215 | |||||||||
| Other | 147 | 164 | |||||||||
| Total deferred debits and other assets | 361 | 379 | |||||||||
| Total assets | $ | 6,789 | $ | 6,421 | |||||||
See the Combined Notes to Consolidated Financial Statements
Delmarva Power & Light Company
Balance Sheets
| December 31, | |||||||||||
| (In millions) | 2025 | 2024 | |||||||||
| LIABILITIES AND SHAREHOLDER'S EQUITY | |||||||||||
| Current liabilities | |||||||||||
| Short-term borrowings | $ | 161 | $ | 144 | |||||||
| Long-term debt due within one year | 53 | 130 | |||||||||
| Accounts payable | 218 | 187 | |||||||||
| Accrued expenses | 70 | 55 | |||||||||
| Payables to affiliates | 25 | 26 | |||||||||
| Customer deposits | 36 | 34 | |||||||||
| Regulatory liabilities | 42 | 42 | |||||||||
| Renewable energy credit obligations | 49 | 48 | |||||||||
| Other | 22 | 22 | |||||||||
| Total current liabilities | 676 | 688 | |||||||||
| Long-term debt | 2,291 | 2,090 | |||||||||
| Deferred credits and other liabilities | |||||||||||
| Deferred income taxes and unamortized investment tax credits | 996 | 946 | |||||||||
| Regulatory liabilities | 316 | 325 | |||||||||
| Asset retirement obligations | 12 | 13 | |||||||||
| Other | 127 | 117 | |||||||||
| Total deferred credits and other liabilities | 1,451 | 1,401 | |||||||||
| Total liabilities | 4,418 | 4,179 | |||||||||
| Commitments and contingencies | |||||||||||
| Shareholder's equity | |||||||||||
| Common stock ($2.25 par value, 0 shares(a) authorized, 0 shares(a) outstanding as of December 31, 2025 and 2024, respectively) | 1,722 | 1,615 | |||||||||
| Retained earnings | 649 | 627 | |||||||||
| Total shareholder's equity | 2,371 | 2,242 | |||||||||
| Total liabilities and shareholder's equity | $ | 6,789 | $ | 6,421 | |||||||
(a)In millions, shares round to zero. Number of shares is 1,000 authorized and outstanding as of December 31, 2025 and 2024.
See the Combined Notes to Consolidated Financial Statements
Delmarva Power & Light Company
Statements of Changes in Shareholder's Equity
| (In millions) | Common Stock | Retained Earnings | Total Shareholder's Equity | ||||||||||||||
| Balance at December 31, 2022 | $ | 1,356 | $ | 594 | $ | 1,950 | |||||||||||
| Net income | — | 177 | 177 | ||||||||||||||
| Common stock dividends | — | (133) | (133) | ||||||||||||||
| Contributions from parent | 99 | — | 99 | ||||||||||||||
| Balance at December 31, 2023 | $ | 1,455 | $ | 638 | $ | 2,093 | |||||||||||
| Net income | — | 209 | 209 | ||||||||||||||
| Common stock dividends | — | (220) | (220) | ||||||||||||||
| Contributions from parent | 160 | — | 160 | ||||||||||||||
| Balance at December 31, 2024 | $ | 1,615 | $ | 627 | $ | 2,242 | |||||||||||
| Net income | — | 224 | 224 | ||||||||||||||
| Common stock dividends | — | (202) | (202) | ||||||||||||||
| Contributions from parent | 107 | — | 107 | ||||||||||||||
| Balance at December 31, 2025 | $ | 1,722 | $ | 649 | $ | 2,371 |
See the Combined Notes to Consolidated Financial Statements
Atlantic City Electric Company and Subsidiary Company
Consolidated Statements of Operations and Comprehensive Income
| For the Years Ended December 31, | |||||||||||||||||
| (In millions) | 2025 | 2024 | 2023 | ||||||||||||||
| Operating revenues | |||||||||||||||||
| Electric operating revenues | $ | 1,712 | $ | 1,638 | $ | 1,493 | |||||||||||
| Revenues from alternative revenue programs | 2 | (12) | 27 | ||||||||||||||
| Operating revenues from affiliates | 4 | 2 | 2 | ||||||||||||||
| Total operating revenues | 1,718 | 1,628 | 1,522 | ||||||||||||||
| Operating expenses | |||||||||||||||||
| Purchased power | 808 | 698 | 637 | ||||||||||||||
| Operating and maintenance | 173 | 206 | 233 | ||||||||||||||
| Operating and maintenance from affiliates | 155 | 162 | 153 | ||||||||||||||
| Depreciation and amortization | 248 | 278 | 283 | ||||||||||||||
| Taxes other than income taxes | 9 | 9 | 8 | ||||||||||||||
| Total operating expenses | 1,393 | 1,353 | 1,314 | ||||||||||||||
| Gain on sale of assets | 2 | — | — | ||||||||||||||
| Operating income | 327 | 275 | 208 | ||||||||||||||
| Other income and (deductions) | |||||||||||||||||
| Interest expense, net | (82) | (74) | (72) | ||||||||||||||
| Interest expense to affiliates, net | — | (5) | — | ||||||||||||||
| Other, net | 10 | 14 | 20 | ||||||||||||||
| Total other income and (deductions) | (72) | (65) | (52) | ||||||||||||||
| Income before income taxes | 255 | 210 | 156 | ||||||||||||||
| Income taxes | 67 | 55 | 36 | ||||||||||||||
| Net income | $ | 188 | $ | 155 | $ | 120 | |||||||||||
| Comprehensive income | $ | 188 | $ | 155 | $ | 120 |
See the Combined Notes to Consolidated Financial Statements
Atlantic City Electric Company and Subsidiary Company
Consolidated Statements of Cash Flows
| For the Years Ended December 31, | |||||||||||||||||
| (In millions) | 2025 | 2024 | 2023 | ||||||||||||||
| Cash flows from operating activities | |||||||||||||||||
| Net income | $ | 188 | $ | 155 | $ | 120 | |||||||||||
| Adjustments to reconcile net income to net cash flows provided by operating activities: | |||||||||||||||||
| Depreciation and amortization | 248 | 278 | 283 | ||||||||||||||
| Gain on sales of assets | (2) | — | — | ||||||||||||||
| Deferred income taxes and amortization of investment tax credits | 47 | 39 | 27 | ||||||||||||||
| Other non-cash operating activities | 38 | 70 | — | ||||||||||||||
| Changes in assets and liabilities: | |||||||||||||||||
| Accounts receivable | (14) | (35) | (57) | ||||||||||||||
| Receivables from and payables to affiliates, net | (3) | (8) | (4) | ||||||||||||||
| Inventories | (13) | (8) | (12) | ||||||||||||||
| Accounts payable and accrued expenses | (8) | (18) | 27 | ||||||||||||||
| Collateral received (paid), net | 5 | — | (50) | ||||||||||||||
| Income taxes | 9 | (5) | — | ||||||||||||||
| Regulatory assets and liabilities, net | (62) | (88) | (47) | ||||||||||||||
| Pension and non-pension postretirement benefit contributions | (4) | (9) | (3) | ||||||||||||||
| Other assets and liabilities | (1) | (44) | (83) | ||||||||||||||
| Net cash flows provided by operating activities | 428 | 327 | 201 | ||||||||||||||
| Cash flows from investing activities | |||||||||||||||||
| Capital expenditures | (390) | (373) | (460) | ||||||||||||||
| Proceeds from sale of long-lived assets | 2 | — | — | ||||||||||||||
| Net cash flows used in investing activities | (388) | (373) | (460) | ||||||||||||||
| Cash flows from financing activities | |||||||||||||||||
| Changes in short-term borrowings | (38) | (13) | 199 | ||||||||||||||
| Issuance of long-term debt | 250 | 250 | 75 | ||||||||||||||
| Retirement of long-term debt | (150) | (150) | — | ||||||||||||||
| Dividends paid on common stock | (183) | (127) | (126) | ||||||||||||||
| Contributions from parent | 98 | 85 | 65 | ||||||||||||||
| Other financing activities | (7) | (6) | (5) | ||||||||||||||
| Net cash flows (used in) provided by financing activities | (30) | 39 | 208 | ||||||||||||||
| Increase (decrease) in cash, restricted cash, and cash equivalents | 10 | (7) | (51) | ||||||||||||||
| Cash, restricted cash, and cash equivalents at beginning of period | 14 | 21 | 72 | ||||||||||||||
| Cash, restricted cash, and cash equivalents at end of period | $ | 24 | $ | 14 | $ | 21 | |||||||||||
| Supplemental cash flow information | |||||||||||||||||
| Increase (decrease) in capital expenditures not paid | $ | 11 | $ | 4 | $ | (47) | |||||||||||
See the Combined Notes to Consolidated Financial Statements
Atlantic City Electric Company and Subsidiary Company
Consolidated Balance Sheets
| December 31, | |||||||||||
| (In millions) | 2025 | 2024 | |||||||||
| ASSETS | |||||||||||
| Current assets | |||||||||||
| Cash and cash equivalents | $ | 22 | $ | 14 | |||||||
| Restricted cash and cash equivalents | 2 | — | |||||||||
| Accounts receivable | |||||||||||
| Customer accounts receivable | 239 | 223 | |||||||||
| Customer allowance for credit losses | (27) | (32) | |||||||||
| Customer accounts receivable, net | 212 | 191 | |||||||||
| Other accounts receivable | 64 | 79 | |||||||||
| Other allowance for credit losses | (13) | (13) | |||||||||
| Other accounts receivable, net | 51 | 66 | |||||||||
| Receivables from affiliates | 12 | 7 | |||||||||
| Inventories, net | 76 | 62 | |||||||||
| Regulatory assets | 93 | 101 | |||||||||
| Other | 8 | 6 | |||||||||
| Total current assets | 476 | 447 | |||||||||
| Property, plant, and equipment, (net of accumulated depreciation and amortization of $1,956 and $1,798 as of December 31, 2025 and 2024, respectively) | 4,556 | 4,366 | |||||||||
| Deferred debits and other assets | |||||||||||
| Regulatory assets | 559 | 502 | |||||||||
| Other | 41 | 34 | |||||||||
| Total deferred debits and other assets | 600 | 536 | |||||||||
| Total assets | $ | 5,632 | $ | 5,349 |
See the Combined Notes to Consolidated Financial Statements
Atlantic City Electric Company and Subsidiary Company
Consolidated Balance Sheets
| December 31, | |||||||||||
| (In millions) | 2025 | 2024 | |||||||||
| LIABILITIES AND SHAREHOLDER'S EQUITY | |||||||||||
| Current liabilities | |||||||||||
| Short-term borrowings | $ | 148 | $ | 186 | |||||||
| Long-term debt due within one year | 5 | 154 | |||||||||
| Accounts payable | 168 | 163 | |||||||||
| Accrued expenses | 64 | 52 | |||||||||
| Payables to affiliates | 24 | 22 | |||||||||
| Customer deposits | 26 | 24 | |||||||||
| Regulatory liabilities | 48 | 10 | |||||||||
| Other | 13 | 10 | |||||||||
| Total current liabilities | 496 | 621 | |||||||||
| Long-term debt | 2,028 | 1,779 | |||||||||
| Deferred credits and other liabilities | |||||||||||
| Deferred income taxes and unamortized investment tax credits | 869 | 816 | |||||||||
| Regulatory liabilities | 137 | 146 | |||||||||
| Other | 74 | 62 | |||||||||
| Total deferred credits and other liabilities | 1,080 | 1,024 | |||||||||
| Total liabilities | 3,604 | 3,424 | |||||||||
| Commitments and contingencies | |||||||||||
| Shareholder's equity | |||||||||||
| Common stock ($3.00 par value, 25 shares authorized, 9 shares outstanding as of December 31, 2025 and 2024) | 2,013 | 1,915 | |||||||||
| Retained earnings | 15 | 10 | |||||||||
| Total shareholder's equity | 2,028 | 1,925 | |||||||||
| Total liabilities and shareholder's equity | $ | 5,632 | $ | 5,349 |
See the Combined Notes to Consolidated Financial Statements
Atlantic City Electric Company and Subsidiary Company
Consolidated Statements of Changes in Shareholder's Equity
| (In millions) | Common Stock | Retained Earnings (Deficit) | Total Shareholder's Equity | ||||||||||||||
| Balance at December 31, 2022 | $ | 1,765 | $ | (12) | $ | 1,753 | |||||||||||
| Net income | — | 120 | 120 | ||||||||||||||
| Common stock dividends | — | (126) | (126) | ||||||||||||||
| Contributions from parent | 65 | — | 65 | ||||||||||||||
| Balance at December 31, 2023 | $ | 1,830 | $ | (18) | $ | 1,812 | |||||||||||
| Net income | — | 155 | 155 | ||||||||||||||
| Common stock dividends | — | (127) | (127) | ||||||||||||||
| Contributions from parent | 85 | — | 85 | ||||||||||||||
| Balance at December 31, 2024 | $ | 1,915 | $ | 10 | $ | 1,925 | |||||||||||
| Net income | — | 188 | 188 | ||||||||||||||
| Common stock dividends | — | (183) | (183) | ||||||||||||||
| Contributions from parent | 98 | — | 98 | ||||||||||||||
| Balance at December 31, 2025 | $ | 2,013 | $ | 15 | $ | 2,028 |
See the Combined Notes to Consolidated Financial Statements
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 energy transmission and distribution businesses through ComEd, PECO, BGE, Pepco, DPL, and ACE.
| Name of Registrant | Business | Service Territories | ||||||||||||
| Commonwealth Edison Company | Purchase and regulated retail sale of electricity | Northern Illinois, including the City of Chicago | ||||||||||||
| Transmission and distribution of electricity to retail customers | ||||||||||||||
| PECO Energy Company | Purchase and regulated retail sale of electricity and natural gas | Southeastern Pennsylvania, including the City of Philadelphia (electricity) | ||||||||||||
| Transmission and distribution of electricity and distribution of natural gas to retail customers | Pennsylvania counties surrounding the City of Philadelphia (natural gas) | |||||||||||||
| Baltimore Gas and Electric Company | Purchase and regulated retail sale of electricity and natural gas | Central 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 LLC | Utility services holding company engaged, through its reportable segments Pepco, DPL, and ACE | Service 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 gas | Portions of Delaware and Maryland (electricity) | ||||||||||||
| Transmission and distribution of electricity and distribution of natural gas to retail customers | Portions of New Castle County, Delaware (natural gas) | |||||||||||||
| Atlantic City Electric Company | Purchase and regulated retail sale of electricity | Portions of Southern New Jersey | ||||||||||||
| Transmission and distribution of electricity to retail customers |
Basis of Presentation (All Registrants)
This is a combined annual 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 Registrants' 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, finance, engineering, customer operations, transmission and distribution planning, asset management, system operations, and power procurement, to PHI operating Registrants. 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.
As of December 31, 2025, 2024, and 2023, Exelon owned 100% of PECO, BGE, and PHI and more than 99% of ComEd. PHI owns 100% of Pepco, DPL, and ACE.
The accompanying consolidated financial statements have been prepared in accordance with GAAP for annual financial statements and in accordance with the instructions to Form 10-K and Regulation S-X promulgated by the SEC.
Combined Notes to Consolidated Financial Statements
(Dollars in millions, except per share data unless otherwise noted)
Note 1 — Significant Accounting Policies
Use of Estimates (All Registrants)
The preparation of financial statements of each of the Registrants in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Areas in which significant estimates have been made include, but are not limited to, the accounting for pension and OPEB, unbilled energy revenues, allowance for credit losses, inventory reserves, goodwill and long-lived asset impairment assessments, derivative instruments, unamortized energy contracts, fixed asset depreciation, capitalization of indirect construction costs, environmental costs and other loss contingencies, AROs, and income taxes. Actual results could differ from those estimates.
Regulatory Accounting (All Registrants)
For their regulated electric and gas operations, the Registrants reflect the effects of cost-based rate regulation in their financial statements, which is required for entities with regulated operations that meet the following criteria: (1) rates are established or approved by a third-party regulator; (2) rates are designed to recover the entities’ cost of providing services or products; and (3) there is a reasonable expectation that rates designed to recover costs can be charged to and collected from customers. The Registrants account for their regulated operations in accordance with regulatory and legislative guidance from the regulatory authorities having jurisdiction, principally the ICC, PAPUC, MDPSC, DCPSC, DEPSC, and NJBPU, under state public utility laws and the FERC under various Federal laws. Regulatory assets and liabilities are amortized and the related expense or revenue is recognized in the Consolidated Statements of Operations consistent with the recovery or refund included in customer rates. The Registrants' regulatory assets and liabilities as of the balance sheet date are probable of being recovered or settled in future rates. If a separable portion of the Registrants' business was no longer able to meet the criteria discussed above, the affected entities would be required to eliminate from their consolidated financial statements the effects of regulation for that portion, which could have a material impact on their financial statements. See Note 2 — Regulatory Matters for additional information.
With the exception of income tax-related regulatory assets and liabilities, the Registrants classify regulatory assets and liabilities with a recovery or settlement period greater than one year as both current and noncurrent in their Consolidated Balance Sheets, with the current portion representing the amount expected to be recovered from or refunded to customers over the next twelve-month period as of the balance sheet date. Income tax-related regulatory assets and liabilities are classified entirely as noncurrent in the Registrants’ Consolidated Balance Sheets to align with the classification of the related deferred income tax balances.
The Registrants treat the impacts of a final rate order received after the balance sheet date but prior to the issuance of the financial statements as a non-recognized subsequent event, as the receipt of a final rate order is a separate and distinct event that has future impacts on the parties affected by the order.
Revenues (All Registrants)
Operating Revenues. The Registrants’ operating revenues generally consist of revenues from contracts with customers involving the sale and delivery of power and natural gas and utility revenues from ARPs. The Registrants recognize revenue from contracts with customers to depict the transfer of goods or services to customers in an amount that the entities expect to be entitled to in exchange for those goods or services. The primary sources of revenue include regulated electric and natural gas tariff sales, distribution, and transmission services. At the end of each month, the Registrants accrue an estimate for the unbilled amount of energy delivered or services provided to customers.
ComEd records ARP revenue for its best estimate of the electric distribution, energy efficiency, distributed generation rebates, and transmission revenue impacts resulting from future changes in rates that ComEd believes are probable of approval by the ICC and FERC in accordance with its distribution multi-year rate plan, distribution revenue decoupling mechanisms, and formula rate mechanisms. BGE, Pepco, DPL, and ACE record ARP revenue for their best estimate of the electric and natural gas distribution revenue impacts resulting from future changes in rates that they believe are probable of approval by the MDPSC, DCPSC, and/or NJBPU in accordance with their revenue decoupling mechanisms. PECO, BGE, Pepco, DPL, and ACE record ARP revenue for their best estimate of the transmission revenue impacts resulting from future changes in rates that they believe are probable of approval by FERC in accordance with their formula rate mechanisms. The Registrants recognize all ARP revenues that will be collected within 24 months of the end of the annual period in which they are recorded. See Note 2 — Regulatory Matters for additional information.
Combined Notes to Consolidated Financial Statements
(Dollars in millions, except per share data unless otherwise noted)
Note 1 — Significant Accounting Policies
Taxes Directly Imposed on Revenue-Producing Transactions. The Registrants collect certain taxes from customers such as sales and gross receipts taxes, along with other taxes, surcharges, and fees, that are levied by state or local governments on the sale or distribution of electricity and gas. Some of these taxes are imposed on the customer, but paid by the Registrants, while others are imposed on the Registrants. Where these taxes are imposed on the customer, such as sales taxes, they are reported on a net basis with no impact to the Consolidated Statements of Operations and Comprehensive Income. However, where these taxes are imposed on the Registrants, such as gross receipts taxes or other surcharges or fees, they are reported on a gross basis. Accordingly, revenues are recognized for the taxes collected from customers along with an offsetting expense. See Note 20 — Supplemental Financial Information for taxes that are presented on a gross basis.
Leases (All Registrants)
The Registrants recognize a ROU asset and lease liability for operating and finance leases when the term is greater than one year. Operating lease ROU assets are included in Other deferred debits and other assets and operating lease liabilities are included in Other current liabilities and Other deferred credits and other liabilities on the Consolidated Balance Sheets. Finance lease ROU assets are included in Property, plant, and equipment, net and finance lease liabilities are included in Long-term debt due within one year and Long-term debt on the Consolidated Balance Sheets. The ROU asset is measured as the sum of (1) the present value of all remaining fixed and in-substance fixed payments using the rate implicit in the lease whenever that is readily determinable or each Registrant’s incremental borrowing rate, (2) any lease payments made at or before the commencement date (less any lease incentives received), and (3) any initial direct costs incurred. The lease liability is measured the same as the ROU asset, but excludes any payments made before the commencement date and initial direct costs incurred. Lease terms include options to extend or terminate the lease if it is reasonably certain they will be exercised. The Registrants include non-lease components, which are service-related costs that are not integral to the use of the asset, in the measurement of the ROU asset and lease liability.
Expense for operating leases and leases with a term of one year or less is recognized on a straight-line basis over the term of the lease, unless another systematic and rational basis is more representative of the derivation of benefit from use of the leased property. Variable lease payments are recognized in the period in which the related obligation is incurred. Operating lease expense, finance lease expense, and variable lease payments are primarily recorded to Operating and maintenance expense on the Registrants’ Statements of Operations and Comprehensive Income.
Income from operating leases, including subleases, is recognized on a straight-line basis over the term of the lease, unless another systematic and rational basis is more representative of the pattern in which income is earned over the term of the lease. Variable lease income is recognized in the period in which the related obligation is performed. Operating lease income and variable lease income are recorded to Operating revenues on the Registrants’ Statements of Operations and Comprehensive Income.
The Registrants’ operating and finance leases consist primarily of real estate, including office buildings, and vehicles and equipment. The Registrants account for land right arrangements that provide for exclusive use as leases while shared use land arrangements are generally not leases. The Registrants do not account for secondary use pole attachments as leases. See Note 9 — Leases for additional information.
Income Taxes (All Registrants)
Deferred federal and state income taxes are recorded on significant temporary differences between the book and tax basis of assets and liabilities and for tax benefits carried forward. Investment tax credits have been deferred in the Registrants’ Consolidated Balance Sheets and are recognized in book income over the life of the related property. The Registrants account for uncertain income tax positions using a benefit recognition model with a two-step approach; a more-likely-than-not recognition criterion; and a measurement approach that measures the position as the largest amount of tax benefit that is greater than 50% likely of being realized upon ultimate settlement. If it is not more-likely-than-not that the benefit of the tax position will be sustained on its technical merits, no benefit is recorded. Uncertain tax positions that relate only to timing of when an item is included on a tax return are considered to have met the recognition threshold. The Registrants recognize accrued interest related to unrecognized tax benefits in Interest expense, net or Other, net (interest income) and recognize penalties related to unrecognized tax benefits in Other, net in their Consolidated Statements of Operations and Comprehensive Income.
Combined Notes to Consolidated Financial Statements
(Dollars in millions, except per share data unless otherwise noted)
Note 1 — Significant Accounting Policies
Cash and Cash Equivalents (All Registrants)
The Registrants consider investments purchased with an original maturity of three months or less to be cash equivalents.
Restricted Cash and Cash Equivalents (All Registrants)
Restricted cash and cash equivalents represent funds that are restricted to satisfy designated current liabilities. As of December 31, 2025 and 2024, the Registrants' restricted cash and cash equivalents primarily represented the following items:
| Registrant | Description | ||||
| Exelon | Payment of medical, dental, vision, and long-term disability benefits, in addition to the items listed below for the Utility Registrants. | ||||
| ComEd | Collateral held from suppliers associated with energy and REC procurement contracts, any over-recovered RPS costs and alternative compliance payments received from RES pursuant to FEJA. | ||||
| PECO | Proceeds from the sales of assets that were subject to PECO’s mortgage indenture. | ||||
| BGE | Collateral held from energy suppliers. | ||||
| PHI | Payment of merger commitments, collateral held from energy suppliers associated with procurement contracts, and payments of REC procurement costs to NJBPU program participants through an administrator. | ||||
| Pepco | Payment of merger commitments and collateral held from energy suppliers. | ||||
| DPL | Collateral held from energy suppliers. | ||||
| ACE | Payment of REC procurement costs to NJBPU program participants through an administrator. |
Restricted cash and cash equivalents not available to satisfy current liabilities are classified as noncurrent assets. As of December 31, 2025 and 2024, the Registrants' noncurrent restricted cash and cash equivalents primarily represented ComEd’s alternative compliance payments received from RES pursuant to FEJA and are included in other deferred debits and other assets.
See Note 14 — Debt and Credit Agreements and Note 20 — Supplemental Financial Information for additional information.
Allowance for Credit Losses on Customer Receivables (All Registrants)
The allowance for credit losses reflects the Registrants’ best estimates of losses on the customers' accounts receivable balances based on historical experience, current information, and reasonable and supportable forecasts.
The allowance for credit losses is estimated based on historical experience, current conditions, and forward-looking risk factors. Utility Registrants' customer accounts are written off consistent with approved regulatory requirements. Adjustments to the allowance for credit losses are primarily recorded to Operating and maintenance expense on the Registrants' Consolidated Statements of Operations and Comprehensive Income or Regulatory assets and liabilities on the Registrants' Consolidated Balance Sheets. See Note 2 — Regulatory Matters for additional information regarding the regulatory recovery of credit losses on customer accounts receivable.
The Registrants have certain non-customer receivables in Other deferred debits and other assets which primarily are with governmental agencies and other high-quality counterparties with no history of default. As such, the allowance for credit losses related to these receivables is not material. The Registrants monitor these balances and will record an allowance if there are indicators of a decline in credit quality. See Note 5 — Accounts Receivable for additional information.
Inventories (All Registrants)
Inventory is recorded at the lower of weighted average cost or net realizable value. Provisions are recorded for excess and obsolete inventory. Fossil fuel and Materials and supplies are generally included in inventory when purchased. Fossil fuel is expensed to Purchased power and fuel expense when used or sold. Materials and
Combined Notes to Consolidated Financial Statements
(Dollars in millions, except per share data unless otherwise noted)
Note 1 — Significant Accounting Policies
supplies generally includes transmission and distribution materials and are expensed to Operating and maintenance or capitalized to Property, plant, and equipment, as appropriate, when installed or used.
Property, Plant, and Equipment (All Registrants)
Property, plant, and equipment is recorded at original cost. Original cost includes construction-related direct labor and material costs and indirect construction costs including labor and related costs of departments associated with supporting construction activities. When appropriate, original cost also includes AFUDC for regulated property at the Utility Registrants. The cost of repairs and maintenance and minor replacements of property is charged to Operating and maintenance expense as incurred.
Third parties reimburse the Utility Registrants for all or a portion of expenditures for certain capital projects. Such contributions in aid of construction costs (CIAC) are recorded as a reduction to Property, plant, and equipment, net.
Upon retirement, the cost of property, net of salvage, is charged to accumulated depreciation consistent with the composite and group methods of depreciation. Depreciation expense at ComEd, BGE, Pepco, DPL, and ACE includes the estimated cost of dismantling and removing plant from service upon retirement. Actual incurred removal costs are applied against a related regulatory liability or recorded to a regulatory asset if in excess of previously collected removal costs. PECO’s removal costs are capitalized to accumulated depreciation when incurred and recorded to depreciation expense over the life of the new asset constructed consistent with PECO’s regulatory recovery method.
Capitalized Software. Certain costs, such as design, coding, and testing incurred during the application development stage of software projects that are internally developed or purchased for operational use are capitalized within Property, plant, and equipment. Similar costs incurred for cloud-based solutions treated as service arrangements are capitalized within Other Current Assets and Deferred Debits and Other Assets. Such capitalized amounts are amortized ratably over the expected lives of the projects when they become operational, generally not to exceed five years. Certain other capitalized software costs are being amortized over longer lives based on the expected life or pursuant to prescribed regulatory requirements.
AFUDC. AFUDC is the cost, during the period of construction, of debt and equity funds used to finance construction projects for regulated operations. AFUDC is recorded to construction work in progress and as a non-cash credit to an allowance that is included in interest expense for debt-related funds and other income and deductions for equity-related funds. The rates used for capitalizing AFUDC are computed under a method prescribed by regulatory authorities.
See Note 6 — Property, Plant, and Equipment, Note 7 — Jointly Owned Electric Utility Plant and Note 20 — Supplemental Financial Information for additional information.
Depreciation and Amortization (All Registrants)
Depreciation is generally recorded over the estimated service lives of property, plant, and equipment on a straight-line basis using the group or composite methods of depreciation. The group approach is typically for groups of similar assets that have approximately the same useful lives and the composite approach is used for dissimilar assets that have different lives. Under both methods, a reporting entity depreciates the assets over the average life of the assets in the group. ComEd, BGE, Pepco, DPL, and ACE's depreciation expense includes the estimated cost of dismantling and removing plant from service upon retirement, which is consistent with each utility's regulatory recovery method. PECO's removal costs are capitalized to accumulated depreciation when incurred and recorded to depreciation expense over the life of the new asset constructed consistent with PECO's regulatory recovery method. The estimated service lives for the Registrants are based on a combination of depreciation studies and historical retirements. See Note 6 — Property, Plant, and Equipment for additional information regarding depreciation.
Amortization of regulatory assets and liabilities are recorded over the recovery or refund period specified in the related legislation or regulatory order or agreement. When the recovery or refund period is less than one year, amortization is recorded to the line item in which the deferred cost or income would have originally been recorded in the Registrants’ Consolidated Statements of Operations and Comprehensive Income. Amortization of ComEd’s electric distribution rate reconciliations and energy efficiency formula rate regulatory assets and the Utility Registrants' transmission formula rate regulatory assets is recorded to Operating revenues.
Combined Notes to Consolidated Financial Statements
(Dollars in millions, except per share data unless otherwise noted)
Note 1 — Significant Accounting Policies
Amortization of income tax related regulatory assets and liabilities is generally recorded to Income tax expense. Except for the regulatory assets and liabilities discussed above, amortization is generally recorded to Depreciation and amortization in the Registrants’ Consolidated Statements of Operations and Comprehensive Income when the recovery period is more than one year.
See Note 2 — Regulatory Matters and Note 20 — Supplemental Financial Information for additional information regarding the amortization of the Registrants' regulatory assets.
Asset Retirement Obligations (All Registrants)
The Registrants estimate and recognize a liability for their legal obligation to perform asset retirement activities even though the timing and/or methods of settlement may be conditional on future events. The Registrants update their AROs either annually or on a rotational basis at least once every three years, based on a risk profile, unless circumstances warrant more frequent updates. The updates factor in new cost estimates, credit-adjusted, risk-free rates (CARFR) and escalation rates, and the timing of cash flows. AROs are accreted throughout each year to reflect the time value of money for these present value obligations through an increase to Regulatory assets. See Note 8 — Asset Retirement Obligations for additional information.
Guarantees (All Registrants)
If necessary, the Registrants recognize a liability at the time of issuance of a guarantee for the fair value of the obligations they have undertaken. The liability is reduced or eliminated as the Registrants are released from risk under the guarantee. Depending on the nature of the guarantee, the release from risk of the Registrant may be recognized only upon the expiration or settlement of the guarantee or by a systematic and rational amortization method over the term of the guarantee. See Note 16 — Commitments and Contingencies for additional information.
Asset Impairments
Long-Lived Assets (All Registrants). The Registrants evaluate the carrying value of long-lived assets for recoverability whenever events or changes in circumstances indicate that the carrying value of those assets may not be recoverable. Indicators of impairment may include specific regulatory disallowance, abandonment, or plans to dispose of a long-lived asset significantly before the end of its useful life. When the estimated undiscounted future cash flows attributable to the long-lived asset may not be recoverable, the amount of the impairment loss is determined by measuring the excess of the carrying amount of the long-lived asset over its fair value.
Goodwill (Exelon, ComEd, and PHI). Goodwill represents the excess of the purchase price paid over the estimated fair value of the net assets acquired and liabilities assumed in the acquisition of a business. Goodwill is not amortized but is assessed for impairment at least annually or on an interim basis if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. See Note 10 — Intangible Assets for additional information.
Derivative Financial Instruments (All Registrants)
Derivatives are recognized on the balance sheet at their fair value unless they qualify for certain exceptions, including NPNS. For derivatives that qualify and are designated as cash flow hedges, changes in fair value each period are initially recorded in AOCI and recognized in earnings when the underlying hedged transaction affects earnings. Amounts recognized in earnings are recorded in Interest expense, net on the Consolidated Statement of Operations and Comprehensive Income based on the activity the transaction is economically hedging. Cash inflows and outflows related to derivative instruments designated as cash flow hedges are included as a component of operating, investing, or financing cash flows in the Consolidated Statements of Cash Flows, depending on the nature of each transaction.
For derivatives intended to serve as economic hedges, which are not designated for hedge accounting, changes in fair value each period are recognized in earnings or as a regulatory asset or liability. Amounts recognized in earnings are recorded in Electric operating revenues, Purchased power and fuel, or Interest expense in the Consolidated Statements of Operations and Comprehensive Income based on the activity the transaction is economically hedging. Changes in fair value are also recorded as a regulatory asset or liability when there is an ability to recover or return the associated costs or benefits in accordance with regulatory requirements. Cash
Combined Notes to Consolidated Financial Statements
(Dollars in millions, except per share data unless otherwise noted)
Note 1 — Significant Accounting Policies
inflows and outflows related to derivative instruments are included as a component of operating, investing, or financing cash flows in the Consolidated Statements of Cash Flows, depending on the nature of the hedged item. See Note 2 — Regulatory Matters and Note 13 — Derivative Financial Instruments for additional information.
Retirement Benefits (All Registrants)
Exelon sponsors defined benefit pension plans and OPEB plans.
The plan obligations and costs of providing benefits under these plans are measured as of December 31. The measurement involves various factors, assumptions, and accounting elections. The impact of assumption changes or experiences different from those assumed on pension and OPEB obligations is recognized over time rather than immediately recognized in the Consolidated Statements of Operations and Comprehensive Income. Gains or losses in excess of the greater of ten percent of the projected benefit obligation or the MRV of plan assets are amortized over the expected average remaining service period of plan participants. See Note 12 — Retirement Benefits for additional information.
New Accounting Standards (All Registrants)
New Accounting Standards Adopted in 2025: In 2025, the Registrants adopted the following new FASB authoritative accounting guidance.
Improvements to Income Tax Disclosures (Issued December 2023). Provides additional disclosure requirements related to the effective tax rate reconciliation and income taxes paid. Under the revised guidance for the effective tax reconciliations, entities would be required to disclose: (1) eight specific categories in the effective tax rate reconciliation in both percentages and reporting currency amount, (2) additional information for reconciling items over a certain threshold, (3) explanation of individual reconciling items disclosed, and (4) provide a qualitative description of the state and local jurisdictions that contribute to the majority of the state income tax expense. For each annual period presented, the new standard requires disclosure of the year-to-date amount of income taxes paid (net of refunds received) disaggregated by federal, state, and foreign. It also requires additional disaggregated information on income taxes paid (net of refunds received) to an individual jurisdiction equal to or greater than 5% of total income taxes paid (net of refunds received). The standard is effective for annual periods beginning January 1, 2025. The Registrants' adoption of this guidance in the fourth quarter of 2025 resulted in an expanded effective tax rate reconciliation. The standard has been applied retrospectively. See Note 11 — Income Taxes for additional information.
New Accounting Standards Issued and Not Yet Adopted as of December 31, 2025: The following new authoritative accounting guidance issued by the FASB has not yet been adopted and reflected by the Registrants in their consolidated financial statements as of December 31, 2025. Unless otherwise indicated, the Registrants are currently assessing the impacts such guidance may have (which could be material) in their Consolidated Balance Sheets, Consolidated Statements of Operations and Comprehensive Income, Consolidated Statements of Cash Flows and disclosures, as well as the potential to early adopt where applicable. The Registrants have assessed other FASB issuances of new standards which are not listed below given the current expectation that such standards will not significantly impact the Registrants' financial reporting.
Disaggregation of Income Statement Expenses (Issued November 2024). Provides additional disclosure requirements related to relevant expense captions of income statement expense line items. The revised guidance requires a new tabular disclosure of disaggregated income statement expenses including a break out of (1) purchases of inventory, (2) employee compensation, (3) depreciation, (4) intangible asset amortization, (5) depreciation, depletion, and amortization recognized as part of oil and gas producing activities included in each relevant expense line item on the income statement. The tabular disaggregation should include certain amounts already required to be disclosed under GAAP elsewhere. Any remaining amounts not separately disaggregated quantitatively should include a qualitative description. Additionally, on an annual basis, the standard requires disclosure of management’s definition of selling expenses and the amount of expense. The standard is effective January 1, 2027, with early adoption permitted.
Targeted Improvements to the Accounting for Internal Use Software (Issued September 2025). Modernizes the accounting for costs related to internal use software to align with the agile basis utilized to develop software. The revised guidance removes references to project stages, clarifies the capitalization threshold for software costs, and expands disclosure requirements for capitalized software. Cost capitalization will begin with (1) management
Combined Notes to Consolidated Financial Statements
(Dollars in millions, except per share data unless otherwise noted)
Note 1 — Significant Accounting Policies
authorized and committed project funding and (2) it is 'probable' to complete the project and the software will be used in its intended function. The standard is effective for annual and interim periods beginning January 1, 2028. The standard can be implemented using a prospective, retrospective, or modified retrospective transition approach with early adoption permitted.
Accounting for Government Grants (Issued December 2025). Establishes accounting guidance for government grants received by defining (1) a grant related to an asset and (2) a grant related to income. Updates provide that a grant should not be recognized until it is probable the entity will comply with grant conditions and the grant will be received. A grant related to an asset is required to be recognized on the balance sheet either as (1) deferred income (deferred income approach) or (2) an adjustment to carrying value (cost accumulation approach). Grants related to income and grants related to assets for which the deferred income approach is elected should be recognized in earnings on a systematic basis over the periods in which an entity recognizes expenses for the costs the grant was intended to compensate. The standard is effective for annual and interim periods beginning January 1, 2029, with early adoption permitted.
Combined Notes to Consolidated Financial Statements
(Dollars in millions, except per share data unless otherwise noted)
Note 2 — Regulatory Matters
2. Regulatory Matters (All Registrants)
The following matters below discuss the status of material regulatory and legislative proceedings of the Registrants.
Distribution Base Rate Case Proceedings
The following tables show the completed and pending distribution base rate case proceedings in 2025.
Completed Distribution Base Rate Case Proceedings
| Registrant/Jurisdiction | Filing Date | Service | Requested Revenue Requirement Increase | Approved Revenue Requirement Increase | Approved ROE | Approval Date | Rate Effective Date | |||||||||||||||||||||||||||||||||||||
| ComEd - Illinois | January 17, 2023 | Electric | $ | 1,487 | $ | 1,045 | 8.905% | December 19, 2024 | January 1, 2024 | |||||||||||||||||||||||||||||||||||
| April 26, 2024 (amended on September 11, 2024) | Electric | $ | 624 | $ | 623 | 9.89% | October 31, 2024 | January 1, 2025 | ||||||||||||||||||||||||||||||||||||
| PECO - Pennsylvania | March 28, 2024 | Electric | $464 | $ | 354 | N/A | December 12, 2024 | January 1, 2025 | ||||||||||||||||||||||||||||||||||||
| Natural Gas | $111 | $ | 78 | |||||||||||||||||||||||||||||||||||||||||
| BGE - Maryland | February 17, 2023 | Electric | $ | 313 | $ | 179 | 9.50% | December 14, 2023 | January 1, 2024 | |||||||||||||||||||||||||||||||||||
| Natural Gas | $ | 289 | $ | 229 | 9.45% | |||||||||||||||||||||||||||||||||||||||
| Pepco - District of Columbia | April 13, 2023 (amended February 27, 2024) | Electric | $ | 186 | $ | 123 | 9.50% | November 26, 2024 | January 1, 2025 | |||||||||||||||||||||||||||||||||||
| Pepco - Maryland | May 16, 2023 (amended February 23, 2024) | Electric | $ | 111 | $ | 45 | 9.50% | June 10, 2024 | April 1, 2024 | |||||||||||||||||||||||||||||||||||
| DPL - Maryland | May 19, 2022 | Electric | $ | 38 | $ | 29 | 9.60% | December 14, 2022 | January 1, 2023 | |||||||||||||||||||||||||||||||||||
| DPL - Delaware | December 15, 2022 (amended September 29, 2023) | Electric | $ | 39 | $ | 28 | 9.60% | April 18, 2024 | July 15, 2023 | |||||||||||||||||||||||||||||||||||
| September 20, 2024 (amended September 5, 2025) | Natural Gas | $ | 37 | $ | 22 | 9.60% | December 17, 2025 | January 1, 2026 | ||||||||||||||||||||||||||||||||||||
| ACE - New Jersey | February 15, 2023 (amended August 21, 2023) | Electric | $ | 92 | $ | 45 | 9.60% | November 17, 2023 | December 1, 2023 | |||||||||||||||||||||||||||||||||||
| November 21, 2024 | Electric | $ | 109 | $ | 54 | 9.60% | November 21, 2025 | December 1, 2025 |
Combined Notes to Consolidated Financial Statements
(Dollars in millions, except per share data unless otherwise noted)
Note 2 — Regulatory Matters
Pending Distribution Base Rate Case Proceedings
| Registrant/Jurisdiction | Filing Date | Service | Requested Revenue Requirement Increase | Requested ROE | Expected Approval Timing | |||||||||||||||||||||||||||
| Pepco - Maryland | October 14, 2025 | Electric | $ | 133 | 10.50% | Third quarter of 2026 | ||||||||||||||||||||||||||
| DPL - Delaware(a) | December 9, 2025 | Electric | $ | 45 | 10.50% | Third quarter of 2027 |
(a)DPL can implement interim rates on July 9, 2026, subject to refund.
ComEd Distribution Base Rate Case Proceedings
The ICC approved ComEd's four-year MRP for the period January 1, 2024 through December 31, 2027. The MRP was originally approved by the ICC on December 14, 2023 and was subsequently amended on January 10, 2024, April 18, 2024 and December 19, 2024. The December 19, 2024 order provided a total revenue requirement increase of $1.045 billion inclusive of rate increases of approximately $752 million in 2024, $80 million in 2025, $102 million in 2026, and $111 million in 2027.
On March 20, 2025, ComEd filed its annual revenue balancing reconciliation for 2024. This reconciliation, which is a component of revenue decoupling, reflected a revenue reduction of $55 million, effective January 1, 2026.
On December 18, 2025, the ICC approved ComEd's 2024 MRP Reconciliation reflecting a revenue increase of $243 million, including the tax benefit of NOLCs. While NOLCs are included in the MRP Reconciliation per the final order, the impacts of the NOLCs will not be reflected in the financial statements until the PLR is received from the IRS. See Note 11 — Income Taxes for additional information on NOLCs. On January 20, 2026, the Illinois Attorney General filed an Application for Rehearing of the December 18 order, which focuses solely on NOLCs. On February 5, 2026, the ICC denied the Illinois Attorney General's Application for Rehearing.
On October 31, 2024, the Delivery Reconciliation Amount for 2023 defined in Rider Delivery Service Pricing Reconciliation (Rider DSPR) was approved. Rider DSPR allows for the reconciliation of the revenue requirement in effect in the final years in which formula rates were determined and until such time as new rates were established under ComEd's approved MRP. The 2024 order reconciled the delivery service rates in effect in 2023 with the actual delivery service costs incurred in 2023. The reconciliation revenue requirement provides for a weighted average debt and equity return on distribution rate base of 7.02%, inclusive of an allowed ROE of 9.89%, reflecting the monthly yields on 30-year treasury bonds plus 580 basis points.
PECO Distribution Base Rate Case Proceedings
On December 12, 2024, the PAPUC issued their Opinions and Orders which approved the non-unanimous partial settlements with limited modifications for both the electric and natural gas base rate cases, and denied the Weather Normalization Adjustment requested in the natural gas base rate case.
PECO’s approved annual electric revenue requirement increase of $354 million is partially offset by a one-time credit of $64 million in 2025. In addition, the PAPUC approved the recovery of storm damage costs incurred by PECO in January 2024, up to $23 million, subject to review for reasonableness and prudency in PECO’s next distribution rate case.
BGE Distribution Base Rate Case Proceedings
In February 2023, BGE filed its three-year cumulative multi-year plan for January 1, 2024 through December 31, 2026 to the MDPSC, which was approved in December 2023 and went into effect on January 1, 2024. The MDSPC awarded BGE electric revenue requirement increases of $41 million, $113 million, and $25 million with an approved ROE of 9.50% in 2024, 2025, and 2026, respectively, and natural gas revenue requirement increases of $126 million, $62 million, and $41 million with an approved ROE of 9.45% in 2024, 2025, and 2026, respectively. The requested revenue requirement increases will be used to recover capital investments designed to increase the resilience of the electric and gas distribution systems and support Maryland's climate and regulatory initiatives.
Combined Notes to Consolidated Financial Statements
(Dollars in millions, except per share data unless otherwise noted)
Note 2 — Regulatory Matters
The MDPSC also approved a portion of the requested 2021 and 2022 reconciliation amounts, which were recovered through separate electric and gas riders between March 2024 and February 2025. As such, the reconciliation amounts are not included in the approved revenue increases. The 2021 reconciliation amounts are $13 million and $7 million for electric and gas, respectively, and the 2022 reconciliation amounts are $39 million and $15 million for electric and gas, respectively. In April 2024, BGE filed with the MDPSC its request for recovery of the 2023 reconciliation amounts of $79 million and $73 million for electric and gas, respectively, with supporting testimony and schedules. In December 2025, the MDPSC authorized BGE to recover $31 million and $46 million for electric and gas, respectively, beginning in February 2026 and extending through December 2027, in the reconciliation rider. In addition to the amounts approved in the reconciliation rider, the MDPSC provided for additional regulatory assets related to minor storms of $24 million (to be recovered over 5 years) and the Baltimore City conduit of $4 million (to be reviewed along with a cost-benefit analysis in BGE’s next rate case).
Pepco District of Columbia Distribution Base Rate Case Proceedings
On April 13, 2023, Pepco filed an electric base rate case with the DCPSC (amended February 27, 2024) requesting a total revenue requirement increase of $186 million and an ROE of 10.50%. The DCPSC issued an order approving the two-year cumulative multi-year plan on November 26, 2024, which included a total revenue requirement increase of $123 million with an ROE of 9.50% effective January 1, 2025 through December 31, 2026. The DCPSC awarded Pepco electric incremental revenue requirement increases of $99 million and $24 million for 2025 and 2026, respectively.
Pepco Maryland Distribution Base Rate Case Proceedings
On May 16, 2023, Pepco filed an electric base rate case with the MDPSC (amended February 23, 2024) requesting a total revenue requirement increase of $111 million (before offsets) and an ROE of 10.50%. The MDPSC issued an order on June 10, 2024 awarding Pepco a one-year multi-year plan for April 1, 2024 through March 31, 2025 which included an incremental revenue requirement increase of $45 million and an ROE of 9.50%. The MDPSC did not adopt the requested revenue requirement increases of $80 million (before offsets), $51 million, and $14 million as filed for 2025, 2026, and the 2027 nine-month extension period, respectively. The MDPSC also approved the requested reconciliation amounts for the 12-month periods ending March 31, 2022, and March 31, 2023, which will be recovered through a rider between August 2024 through March 2026. As such, the reconciliation amounts are not included in the approved revenue requirement increases. The reconciliation amounts are $1 million and $7 million, for the 12-month periods ending March 31, 2022, and March 31, 2023, respectively. In July 2024, Pepco filed its request with the MDPSC, for which it is awaiting approval, for recovery of the reconciliation amounts of $31 million for the 12-month period ended March 31, 2024, with supporting testimony and schedules.
DPL Maryland Distribution Base Rate Case Proceedings
On May 19, 2022, DPL filed an electric base rate case with the MDPSC requesting a total revenue requirement increase of $38 million based on an ROE of 10.25%. On December 14, 2022, the MDPSC issued an order awarding DPL a total revenue requirement increase of $29 million with an ROE of 9.60%. The order reflects a three-year cumulative multi-year plan for January 1, 2023 through December 31, 2025, with rates remaining in effect subsequent to the multi-year plan period. The MDPSC awarded DPL electric incremental revenue requirement increases of $17 million, $6 million, and $6 million for 2023, 2024, and 2025, respectively.
DPL Delaware Distribution Base Rate Case Proceedings
On December 15, 2022, DPL filed an electric base rate case with the DEPSC (amended September 29, 2023) requesting a total revenue requirement increase of $39 million and an ROE of 10.50%. On April 18, 2024, the DEPSC issued an order awarding DPL a total revenue requirement increase of $28 million with an ROE of 9.60%, effective July 15, 2023. As part of the approved order, the DEPSC approved the Significant Storm Expense Rate Rider (Rider SSER) which will allow DPL to recover expenses associated with qualified storms. A qualified storm will be an individual storm for which DPL incurs expenses between $5 million and $15 million. The Rider SSER allows DPL to recover significant storm damage expenses for the previous 12-month period over a future 24-month period. For individual storm events for which DPL incurs expenses of more than $15 million, the future recovery period will be evaluated on a case-by-case basis and the unamortized balance will earn a return at DPL's authorized long-term cost of debt. The Rider SSER will have an annual true-up filing, subject to DEPSC review and approval.
Combined Notes to Consolidated Financial Statements
(Dollars in millions, except per share data unless otherwise noted)
Note 2 — Regulatory Matters
ACE New Jersey Distribution Base Rate Case Proceedings
On February 15, 2023, ACE filed an electric base rate case with the NJBPU (amended August 21, 2023) requesting a total revenue requirement increase of $92 million, before NJ sales and use tax, and an ROE of 10.50%. On November 17, 2023, the NJBPU issued an order awarding ACE electric revenue requirement increases, before NJ sales and use tax, of $36 million and $9 million effective December 1, 2023 and February 1, 2024, respectively, with an ROE of 9.60%.
On November 21, 2024, ACE filed an electric base rate case with the NJBPU requesting a total revenue requirement increase of $109 million, before NJ sales and use tax, and an ROE of 10.70%. On November 21, 2025, the NJBPU issued an order awarding ACE an electric revenue requirement increase, before NJ sales and use tax, of $54 million effective December 1, 2025, with an ROE of 9.60%. In addition, the NJBPU approved the recovery through a regulatory asset of work stoppage costs that were incurred by ACE in 2023 of $38 million.
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 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 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 PECO, BGE, Pepco, DPL, and ACE also reconciles any differences between the actual costs and actual revenues for the calendar year (annual reconciliation).
For 2025, the following increases/(decreases) were included in the Utility Registrants' electric transmission formula rate updates:
| Registrant**(a)** | Initial Revenue Requirement Increase (Decrease) | Annual Reconciliation Increase (Decrease) | Total Revenue Requirement Increase (Decrease)****(b) | Allowed Return on Rate Base**(c)** | Allowed ROE**(d)** | |||||||||||||||||||||||||||
| ComEd | $ | 78 | $ | 49 | $ | 127 | 8.13 | % | 11.50 | % | ||||||||||||||||||||||
| PECO | $ | 9 | $ | 13 | $ | 22 | 7.54 | % | 10.35 | % | ||||||||||||||||||||||
| BGE | $ | 21 | $ | 21 | $ | 35 | (e) | 7.53 | % | 10.50 | % | |||||||||||||||||||||
| Pepco | $ | 35 | $ | 16 | $ | 51 | 7.71 | % | 10.50 | % | ||||||||||||||||||||||
| DPL | $ | 32 | $ | (9) | $ | 23 | 7.48 | % | 10.50 | % | ||||||||||||||||||||||
| ACE | $ | (11) | $ | (46) | $ | (57) | 7.16 | % | 10.50 | % |
(a)All rates are effective June 1, 2025 - May 31, 2026, subject to review by interested parties pursuant to review protocols of each Utility Registrants' tariffs.
(b)For the Utility Registrants, except for PECO, while the transmission filings reflect the tax benefit of NOLCs, the impacts of the NOLCs will not be reflected in the financial statements until the PLR is received from the IRS. See Note 11 — Income Taxes for additional information on NOLCs.
(c)Represents the weighted average debt and equity return on transmission rate base.
(d)The rate of return on common equity for each Utility Registrant includes a 50-basis-point incentive adder for being a member of an RTO.
(e)The increase in BGE's transmission revenue requirement includes a $7 million reduction related to a FERC-approved dedicated facilities charge to recover the costs of providing transmission service to specifically designated load by BGE.
Other State Regulatory Matters
Illinois Regulatory Matters
CEJA (Exelon and ComEd). On September 15, 2021, the Governor of Illinois signed into law CEJA. CEJA includes, among other features, (1) procurement of CMCs from qualifying nuclear-powered generating facilities,
Combined Notes to Consolidated Financial Statements
(Dollars in millions, except per share data unless otherwise noted)
Note 2 — Regulatory Matters
(2) a requirement to file a general rate case or a new four-year MRP no later than January 20, 2023 to establish rates effective after ComEd’s existing performance-based distribution formula rate sunsets, (3) requirements that ComEd and the ICC initiate and conduct various regulatory proceedings on subjects including ethics, spending, grid investments, and performance metrics.
ComEd Electric Distribution Rates
Beginning in 2024, ComEd recovers from retail customers, subject to certain exceptions, the costs it incurs to provide electric delivery services either through its electric distribution rate or other recovery mechanisms authorized by CEJA. On January 17, 2023, ComEd filed a petition with the ICC seeking approval of a MRP for 2024-2027. The MRP supports a multi-year grid plan (2024-2027 Grid Plan), also filed on January 17, covering planned investments on the electric distribution system within ComEd’s service area through 2027. Costs incurred during each year of the MRP are subject to ICC review and the plan’s revenue requirement for each year will be reconciled with the actual costs that the ICC determines are prudently and reasonably incurred for that year. The reconciliation is subject to adjustment for certain costs, including a limitation on recovery of costs that are more than 105% of certain costs in the previously approved MRP revenue requirement, absent a modification of the rate plan itself. Thus, for example, the rate adjustments necessary to reconcile 2024 revenues to ComEd’s actual 2024 costs incurred would take effect in January 2026 after the ICC’s review during 2025.
On December 14, 2023, the ICC issued a final order. The ICC rejected ComEd’s 2024-2027 Grid Plan as non-compliant with certain requirements of CEJA and required ComEd to file a revised 2024-2027 Grid Plan. In the absence of an approved 2024-2027 Grid Plan, the ICC set ComEd’s forecast revenue requirements for 2024-2027 based on ComEd's approved year-end 2022 rate base. This resulted in a total cumulative revenue requirement increase of $501 million, a $986 million total revenue reduction from the requested cumulative revenue requirement increase but remained subject to annual reconciliation in accordance with CEJA. The final order approved the process and formulas associated with the MRP reconciliation mechanisms. The ICC's December 2023 order also denied ComEd's ability to earn a return on its pension asset.
On December 22, 2023, ComEd filed an application for rehearing on several findings in the final order including the use of the 2022 year-end rate base to establish forecast revenue requirements for 2024-2027, ROE, pension asset return, and capital structure. On January 10, 2024, ComEd’s application for rehearing was denied on all issues except for the order’s use of the 2022 year-end rate base. On April 18, 2024, the ICC issued its final order on rehearing, which approved the use of the forecasted year-end 2023 rate base that resulted in increased revenue requirements for 2024-2027. These revenue requirements determined during the rehearing process established base revenue requirements until the ICC approved the Refiled 2024-2027 Grid Plan on December 19, 2024.
On January 10, 2024, ComEd filed an appeal in the Illinois Appellate Court of the issues on which rehearing was denied, including but not limited to the allowed ROE, 50% equity ratio, and denial of a return on ComEd’s pension asset. There is no deadline by when the appellate court must rule. On March 13, 2024, ComEd filed its Refiled 2024-2027 Grid Plan with supporting testimony and schedules with the ICC and subsequently on March 15, 2024, ComEd also filed a petition to adjust its MRP to authorize increased rates consistent with the Refiled 2024-2027 Grid Plan. On December 19, 2024, the ICC approved the Refiled 2024-2027 Grid Plan and adjusted the approved MRP with rates effective on January 1, 2025. The final approved MRP, as adjusted, which reflects the Refiled Grid Plan, resulted in a total cumulative revenue requirement increase of $1.045 billion over the 2024-2027 plan years and remains subject to annual reconciliations in accordance with CEJA. ComEd filed timely requests for rehearing and an appeal of the MRP order, again limited to the issues on which rehearing of the December 2023 order was denied, including the allowed ROE, 50% equity ratio, and denial of a return on ComEd's pension asset.
On January 16, 2026, ComEd filed a multi-year integrated grid plan (2028-2031 Grid Plan), seeking approval for planned investments on the electric distribution system within ComEd's service area in 2028-2031. The ICC must issue an order by December 15, 2026.
Carbon Mitigation Credit
CEJA establishes decarbonization requirements for Illinois as well as programs to support the retention and development of emissions-free sources of electricity. ComEd is required to purchase CMCs from participating nuclear power generating facilities between June 1, 2022 and May 31, 2027. The price to be paid for each CMC
Combined Notes to Consolidated Financial Statements
(Dollars in millions, except per share data unless otherwise noted)
Note 2 — Regulatory Matters
was established through a competitive bidding process that included consumer-protection measures that capped the maximum acceptable bid amount and a formula that reduces CMC prices by an energy price index, the base residual auction capacity price in the ComEd zone of PJM, and the monetized value of any federal tax credit or other subsidy if applicable. On October 31, 2025, the seller provided notification to ComEd and the IPA that it has reflected on its 2024 federal tax return $804 million of nuclear production tax credits associated with its participating nuclear power generating facilities. These amounts will be collected from the seller through an adjustment to the CMC price to be paid by ComEd and returned to customers in 2026. As of December 31, 2025, Exelon and ComEd's Consolidated Balance Sheets reflect these amounts as a receivable from the seller with an offsetting balance within the Carbon mitigation credit regulatory liability. These adjustments had no net impact on Exelon and ComEd’s Consolidated Statements of Operations and Comprehensive Income. The consumer protection measures contained in CEJA will result in net payments to ComEd ratepayers if the energy index, the capacity price and applicable federal tax credits or subsidy exceed the CMC contract price. Beginning with the June 2022 monthly billing period, ComEd began issuing credits and/or charges to its retail customers under its CMC rider, the Rider Carbon-Free Resource Adjustment (Rider CFRA). A regulatory asset or liability is recorded for the difference between ComEd's costs associated with the procurement of CMCs from participating nuclear power generating facilities and revenues received from customers. The balance of the liability as of December 31, 2025 is $670 million.
On February 2, 2024, ComEd filed a petition with the ICC to initiate the reconciliation proceeding for the costs incurred in connection with the procurement of CMC’s during the delivery year beginning June 1, 2022 and extending through May 31, 2023. While both Staff and the Administrative Law Judge's proposed order supported ComEd’s proposed reconciliation adjustment, on September 4, 2025, the ICC issued its final order rejecting the proposed reconciliation adjustment. Specifically, the order disallowed portions of the administrative costs as well as a portion of ComEd's interest costs on the balance of credit extended to customers under the applicable tariff that were not yet funded by payments from the generator. The CMC costs themselves were not disallowed. The order resulted in an immaterial impact to the financial statements and on October 3, 2025 ComEd filed its Application for Rehearing. On October 16, 2025, the ICC denied ComEd's Application. On October 17, 2025, ComEd filed its appeal with the Illinois Appellate Court for review of the ICC's order and its denial of rehearing.
Energy Efficiency
CEJA extends ComEd’s current cumulative annual energy efficiency MWh savings goals through 2040, adds expanded electrification measures to those goals, increases low-income commitments, and adds a new performance adjustment to the energy efficiency formula rate. ComEd expects its annual spend to increase through 2040 to achieve these energy efficiency MWh savings goals, which is deferred as a separate regulatory asset that is recovered through the energy efficiency formula rate over the weighted average useful life, as approved by the ICC, of the related energy efficiency measures.
Energy Efficiency Formula Rate (Exelon and ComEd). FEJA allows ComEd to defer energy efficiency costs (except for any voltage optimization costs which are recovered through electric distribution rates) as a separate regulatory asset that is recovered through the energy efficiency formula rate over the weighted average useful life, as approved by the ICC, of the related energy efficiency measures. ComEd earns a return on the energy efficiency regulatory asset at a rate equal to a weighted average cost of capital, which is based on a year-end capital structure and a statutorily-based formula based on long-term treasury debt. The ROE that ComEd earns on its energy efficiency regulatory asset is subject to a maximum downward or upward adjustment of 200 basis points if ComEd’s cumulative persisting annual MWh savings falls short of or exceeds specified percentage benchmarks of its annual incremental savings goal. ComEd is required to file an update to its energy efficiency formula rate on or before June 1st each year, with resulting rates effective in January of the following year. The annual update is based on projected rate year energy efficiency costs, PJM capacity revenues, and the projected year-end regulatory asset balance less any related deferred income taxes (initial year revenue requirement). The update also reconciles any differences between the revenue requirement in effect for the prior year and actual costs incurred from the year (annual reconciliation). The approved energy efficiency formula rate also provides for revenue decoupling provisions.
Combined Notes to Consolidated Financial Statements
(Dollars in millions, except per share data unless otherwise noted)
Note 2 — Regulatory Matters
During 2025, the ICC approved the following total increases in ComEd's requested energy efficiency revenue requirement:
| Filing Date | Requested Revenue Requirement Increase | Approved Revenue Requirement Increase**(a)** | Approved ROE | Approval Date | Rate Effective Date | |||||||||||||||||||||||||||
| May 23, 2025 | $ | 19 | $ | 19 | 10.21 | % | November 19, 2025 | January 1, 2026 |
(a)ComEd's 2026 approved revenue requirement reflects an increase of $24 million for the initial year revenue requirement for 2026 and a decrease of $5 million related to the annual reconciliation for 2024. The revenue requirement for 2025 provides for a weighted average debt and equity return on the energy efficiency regulatory asset and rate base of 7.23% inclusive of an allowed ROE of 10.21%, reflecting the monthly average yields for 30-year treasury bonds plus 580 basis points. The revenue requirement for the 2024 reconciliation year provides for a weighted average debt and equity return on the energy efficiency regulatory asset and rate base of 7.50% inclusive of an allowed ROE of 10.75%, 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. See table below for ComEd's regulatory assets associated with its energy efficiency formula rate.
Maryland Regulatory Matters
Maryland Revenue Decoupling (Exelon, BGE, PHI, Pepco, and DPL). In 1998, the MDPSC approved natural gas monthly rate adjustments for BGE and in 2007, the MDPSC approved electric monthly rate adjustments for BGE and BSAs for Pepco and DPL, all of which are decoupling mechanisms. As a result of the decoupling mechanisms, certain Operating revenues from electric and natural gas distribution at BGE and Operating revenues from electric distribution at Pepco Maryland (see also District of Columbia Revenue Decoupling below for Pepco District of Columbia) and DPL are not intended to be impacted by abnormal weather or usage per customer. For BGE, Pepco, and DPL, the decoupling mechanism eliminates the impacts of abnormal weather or customer usage by recognizing revenues based on an authorized distribution amount per customer by customer class. Operating revenues from electric and natural gas distribution at BGE and Operating revenues from electric distribution at Pepco Maryland and DPL are, however, impacted by changes in the number of customers.
EmPOWER Maryland Cost Recovery (Exelon, BGE, PHI, Pepco and DPL). On December 29, 2023, the MDPSC issued an order authorizing the next three-year program cycle for EmPOWER Maryland and approved various proposals by the program administrators to implement new energy efficiency programs for the 2024-2026 program cycle, as well as continue operating core programs. Historically, BGE, Pepco, and DPL deferred most of their energy efficiency program costs to a regulatory asset and either deferred most of their demand response program costs to a regulatory asset or capitalized them. Beginning in 2024, BGE, Pepco, and DPL began deferring less energy efficiency and demand response program costs and beginning January 1, 2026, program costs are no longer being deferred. Additionally, as part of the order, the MDPSC directed BGE, Pepco, and DPL to extend the amortization of unamortized costs as of December 31, 2023 from 5 to 7 years to mitigate customer bill impacts.
Next Generation Energy Act (Exelon, BGE, PHI, Pepco, and DPL). On May 20, 2025, the Governor of Maryland signed into law legislation that addresses several matters pertaining to electric and gas utilities, including affirming that the MDPSC may approve the use of multi-year rate plans that demonstrate customer benefits, among other things. It also prohibits utilities from filing after January 1, 2025, for the reconciliation of actuals costs and revenues to amounts approved within the multi-year plans. In the second quarter of 2025, BGE derecognized Regulatory assets of $10 million and Regulatory liabilities of $3 million for multi-year plan reconciliations that are no longer eligible to be filed. DPL also derecognized Regulatory liabilities of $0.4 million during the second quarter of 2025 for multi-year reconciliations ineligible to be filed. Multi-year plan reconciliations filed prior to January 1, 2025, remain lawful and will be resolved in their respective proceedings.
Summer and Winter Rate Mitigation (Exelon, BGE, PHI, Pepco, and DPL). As part of the passing of the Next Generation Energy Act by the Maryland General Assembly, the MDPSC issued an order on June 26, 2025, to implement the Legislative Energy Relief Refund program under which bill credits were distributed to residential customers based on their consumption of electricity supply that was subject to the renewable energy portfolio standard. On July 24, 2025, the MDPSC issued an order accepting BGE, Pepco, and DPL's proposal for the implementation of the program. As a result, BGE, Pepco, and DPL received $49 million, $21 million, and $8 million, respectively, from the MDPSC on August 6, 2025. These amounts were used to reduce residential customer account receivable balances within the third quarter of 2025. Additional disbursements from the state of
Combined Notes to Consolidated Financial Statements
(Dollars in millions, except per share data unless otherwise noted)
Note 2 — Regulatory Matters
Maryland were received by BGE, Pepco, and DPL on February 3, 2026 for approximately $49 million, $21 million, and $8 million, respectively. These amounts will also be used to reduce residential customer receivables in the first quarter of 2026.
District of Columbia Regulatory Matters
District of Columbia Revenue Decoupling (Exelon, PHI, and Pepco). In 2009, the DCPSC approved a BSA, which is a decoupling mechanism. As a result of the decoupling mechanism, Operating revenues from electric distribution at Pepco District of Columbia (see also Maryland Revenue Decoupling above for Pepco Maryland) are not intended to be impacted by abnormal weather or usage per customer. The decoupling mechanism initially approved eliminated the impacts of abnormal weather or customer usage by recognizing revenues based on an authorized distribution amount per customer by customer class. Prior to 2025, operating revenues from electric distribution at Pepco District of Columbia were, impacted by changes in the number of customers. Beginning in 2025, based on modifications approved by the DCPSC, Pepco District of Columbia began recognizing revenues on an authorized distribution amount per customer class basis, and operating revenues from electric distribution have no longer been impacted by changes in the number of customers.
New Jersey Regulatory Matters
Conservation Incentive Program (CIP) (Exelon, PHI, and ACE). On September 25, 2020, ACE filed an application with the NJBPU as required to seek approval to implement a portfolio of energy efficiency programs pursuant to New Jersey’s clean energy legislation. The filing included a request to implement a CIP that would eliminate the favorable and unfavorable impacts of weather and customer usage patterns on distribution revenues for most customers. The CIP compares current distribution revenues by customer class to approved target revenues established in ACE’s most recent distribution base rate case. The CIP is calculated annually and recovery is subject to certain conditions, including an earnings test and ceilings on customer rate increases.
On April 27, 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 filing, including ACE’s ability to implement the CIP prospectively effective July 1, 2021. As a result of this decoupling mechanism, operating revenues are no longer intended to be impacted by abnormal weather or usage for most customers. Starting in the third quarter of 2021, ACE began recording alternative revenue program revenues for its best estimate of the distribution revenue impacts resulting from future changes in CIP rates that it believes are probable of approval by the NJBPU in accordance with this mechanism.
Termination of Energy Procurement Provisions of PPAs (Exelon, PHI, and ACE). On December 22, 2021, ACE filed a petition with the NJBPU to terminate the provisions in the PPAs to purchase electricity from two coal-powered generation facilities located in the state of New Jersey. The petition was approved by the NJBPU on March 23, 2022. Upon closing of the transaction on March 31, 2022, ACE recognized a liability of $203 million for the contract termination fee and recognized a corresponding regulatory asset of $203 million. The liability has been paid in full as of December 31, 2024.
For the year ended December 31, 2024, ACE paid $49 million of the liability, which is recorded in Changes in Other assets and liabilities in Exelon's, PHI's, and ACE's Consolidated Statements of Cash Flows.
ACE Infrastructure Investment Program Filings (Exelon, PHI, and ACE). On October 31, 2022, ACE filed with the NJBPU an IIP, called “Powering the Future”, proposing to seek recovery through a new component of ACE’s rider mechanism, totaling $379 million, over the four-year period of July 1, 2023, to June 30, 2027. The new IIP will allow ACE to invest in projects that are designed to enhance the reliability, resiliency, and safety of the service ACE provides to its customers. On June 15, 2023, ACE entered into a settlement agreement with other parties, which allows for a recovery totaling $93 million of reliability related capital investments from July 1, 2023, through June 30, 2027. ACE will have the option of seeking approval from the NJBPU to extend the end date of the IIP beyond June 30, 2027, if ACE determines an extension is necessary. On June 29, 2023, the NJBPU adopted the settlement agreement and issued an order approving the program.
Advanced Metering Infrastructure Filing (Exelon, PHI, and ACE). On August 26, 2020, ACE filed an application with the NJBPU as required to seek 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
Combined Notes to Consolidated Financial Statements
(Dollars in millions, except per share data unless otherwise noted)
Note 2 — Regulatory Matters
involved 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 addressed all material aspects of ACE's smart energy network deployment plan, including cost recovery of the investment costs, incremental Operating and maintenance expenses, and the unrecovered balance of existing infrastructure through future distribution rates.
New Jersey Clean Energy Legislation (Exelon, PHI, and ACE). On May 23, 2018, New Jersey enacted legislation that established and modified New Jersey’s clean energy and energy efficiency programs and solar and RPS. On the same day, 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. Under the legislation, the NJBPU will issue ZECs to the qualifying nuclear power plants and the electric distribution utilities in New Jersey, including ACE, will be required to purchase those ZECs. ACE began collecting from retail distribution customers, through a non-bypassable charge, all costs associated with the procurement of the ZECs effective April 18, 2019.
Summer Rate Mitigation (Exelon and ACE). In response to significant increases in electric supply costs, on April 23, 2025, the NJBPU issued an order directing the State's electric public utilities to file petitions proposing distribution side measures to mitigate residential customer bill impacts during summer months. As a result, on June 18, 2025, the NJBPU approved a stipulation of settlement for ACE to issue a bill credit of $30 per residential customer for the months of July and August 2025, which was deferred to Regulatory assets. The amounts will subsequently be collected from September 2025 through February 2026 at a flat rate of $10 per residential customer. The bill credit and subsequent collections will not be subject to carrying costs. As of December 31, 2025, the Regulatory asset has a remaining balance of $10 million.
Residential Universal Bill Credit (Exelon and ACE). In an effort to further reduce the burden of increased electric supply costs, on August 13, 2025, the NJBPU issued an order to establish the RUBC, which was funded by the NJBPU. The program provided a $50 bill credit per eligible residential customer for the months of September and October 2025. ACE received $51 million from the NJBPU on September 25, 2025, which was recognized as a Regulatory liability. ACE subsequently issued all bill credits to residential customers in September and October. As of December 31, 2025, there is no Regulatory liability remaining.
Other Federal Regulatory Matters
FERC Audit (Exelon and ComEd). The Utility Registrants are subject to periodic audits and investigations by FERC. FERC’s Division of Audits and Accounting initiated a nonpublic audit of ComEd in April 2021 evaluating ComEd’s compliance with (1) approved terms, rates and conditions of its federally regulated service; (2) accounting requirements of the Uniform System of Accounts; (3) reporting requirements of the FERC Form 1; and (4) the requirements for record retention. The audit period extended back to January 1, 2017.
On July 27, 2023, FERC published a final audit report which included, among other things, findings and recommendations related to ComEd's methodology regarding the allocation of certain overhead costs to capitalized construction costs under FERC regulations, including a suggestion that refunds may be due to customers for amounts collected in previous years. On July 30, 2024, ComEd reached an agreement in principle on the contested overhead allocation finding. As a result of the settlement process, ComEd recorded a charge for the probable disallowance of $70 million of certain currently capitalized construction costs to operating expenses, which are not expected to be recovered in future rates. The existing loss estimate was reflected in Exelon and ComEd's financial statements as of December 31, 2024. ComEd and FERC staff jointly filed the settlement agreement with FERC for approval on February 11, 2025. The settlement was approved by FERC on April 4, 2025.
Regulatory Assets and Liabilities
Regulatory assets represent incurred costs that have been deferred because of their probable future recovery from customers through regulated rates. Regulatory liabilities represent the excess recovery of costs or accrued credits that have been deferred because it is probable such amounts will be returned to customers through future regulated rates or represent billings in advance of expenditures for approved regulatory programs.
Combined Notes to Consolidated Financial Statements
(Dollars in millions, except per share data unless otherwise noted)
Note 2 — Regulatory Matters
The following tables provide information about the regulatory assets and liabilities of the Registrants at December 31, 2025 and 2024:
| December 31, 2025 | Exelon | ComEd | PECO | BGE | PHI | Pepco | DPL | ACE | |||||||||||||||||||||||||||||||||||||||
| Regulatory assets | |||||||||||||||||||||||||||||||||||||||||||||||
| AMI programs - deployment costs | $ | 49 | $ | — | $ | — | $ | 8 | $ | 41 | $ | 6 | $ | 8 | $ | 27 | |||||||||||||||||||||||||||||||
| AMI programs - legacy meters | 64 | 4 | — | 1 | 59 | 19 | 7 | 33 | |||||||||||||||||||||||||||||||||||||||
| Asset retirement obligations | 193 | 129 | 22 | 28 | 14 | 9 | 4 | 1 | |||||||||||||||||||||||||||||||||||||||
| COVID-19 | 45 | — | — | 2 | 43 | 42 | 1 | — | |||||||||||||||||||||||||||||||||||||||
| Deferred income taxes | 1,167 | — | 1,154 | — | 13 | 13 | — | — | |||||||||||||||||||||||||||||||||||||||
| Deferred storm costs | 182 | — | 75 | 81 | 26 | 8 | 1 | 17 | |||||||||||||||||||||||||||||||||||||||
| Distributed generation rebates | 246 | 246 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
| Electric distribution formula rate annual reconciliations | 20 | 20 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
| Electric distribution formula rate significant one-time events | 73 | 73 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
| Electric energy and natural gas costs | 205 | 43 | — | 52 | 110 | 67 | 37 | 6 | |||||||||||||||||||||||||||||||||||||||
| Energy efficiency and demand response programs | 686 | — | — | 327 | 359 | 178 | 68 | 113 | |||||||||||||||||||||||||||||||||||||||
| Energy efficiency costs | 2,018 | 2,018 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
| Fair value of long-term debt | 426 | — | — | — | 338 | — | — | — | |||||||||||||||||||||||||||||||||||||||
| Fair value of PHI's unamortized energy contracts | 21 | — | — | — | 21 | — | — | — | |||||||||||||||||||||||||||||||||||||||
| MGP remediation costs | 310 | 283 | 14 | 13 | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
| Multi-year plan reconciliations | 116 | 71 | — | 26 | 19 | 19 | — | — | |||||||||||||||||||||||||||||||||||||||
| Pension and OPEB | 2,603 | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
| Pension and OPEB - merger related | 371 | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
| Removal costs | 967 | — | — | 340 | 627 | 139 | 140 | 348 | |||||||||||||||||||||||||||||||||||||||
| Renewable energy | 131 | 131 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
| Transmission formula rate annual reconciliations | 61 | 17 | 14 | 4 | 26 | 18 | 8 | — | |||||||||||||||||||||||||||||||||||||||
| Under-recovered credit loss expense | 152 | 152 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
| Under-recovered revenue decoupling | 107 | — | — | 39 | 68 | 30 | — | 38 | |||||||||||||||||||||||||||||||||||||||
| Universal service fund charge under-recovery - Electric | 32 | — | 32 | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
| Work stoppage costs | 37 | — | — | — | 37 | — | — | 37 | |||||||||||||||||||||||||||||||||||||||
| Zero emission credit | 41 | 41 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
| Other | 250 | 54 | 36 | 58 | 107 | 39 | 12 | 32 | |||||||||||||||||||||||||||||||||||||||
| Total regulatory assets | 10,573 | 3,282 | 1,347 | 979 | 1,908 | 587 | 286 | 652 | |||||||||||||||||||||||||||||||||||||||
| Less: current portion | 1,359 | 595 | 72 | 175 | 352 | 182 | 72 | 93 | |||||||||||||||||||||||||||||||||||||||
| Total noncurrent regulatory assets | $ | 9,214 | $ | 2,687 | $ | 1,275 | $ | 804 | $ | 1,556 | $ | 405 | $ | 214 | $ | 559 |
Combined Notes to Consolidated Financial Statements
(Dollars in millions, except per share data unless otherwise noted)
Note 2 — Regulatory Matters
| December 31, 2025 | Exelon | ComEd | PECO | BGE | PHI | Pepco | DPL | ACE | |||||||||||||||||||||||||||||||||||||||
| Regulatory liabilities | |||||||||||||||||||||||||||||||||||||||||||||||
| Carbon mitigation credit | $ | 670 | $ | 670 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||||||||||||
| Decommissioning the Regulatory Agreement Units | 4,755 | 4,313 | 442 | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
| Dedicated facilities charge | 155 | — | — | 155 | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
| Deferred income taxes | 2,447 | 1,419 | — | 427 | 601 | 241 | 232 | 128 | |||||||||||||||||||||||||||||||||||||||
| Electric energy and natural gas costs | 155 | — | 113 | 25 | 17 | — | — | 17 | |||||||||||||||||||||||||||||||||||||||
| Energy efficiency and demand response programs | 16 | — | 16 | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
| Fiber Refund | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
| Multi-year plan reconciliations | 13 | — | — | — | 13 | 6 | 7 | — | |||||||||||||||||||||||||||||||||||||||
| Over-recovered credit loss expense | 5 | — | — | — | 5 | — | — | 5 | |||||||||||||||||||||||||||||||||||||||
| Over-recovered revenue decoupling | 8 | — | — | 1 | 7 | — | 7 | — | |||||||||||||||||||||||||||||||||||||||
| Removal costs | 2,070 | 1,960 | — | — | 110 | 20 | 88 | 2 | |||||||||||||||||||||||||||||||||||||||
| Renewable portfolio standards costs | 1,611 | 1,611 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
| Transmission formula rate annual reconciliations | 31 | — | — | 4 | 27 | — | 7 | 20 | |||||||||||||||||||||||||||||||||||||||
| Other | 208 | 36 | 18 | 14 | 45 | 14 | 17 | 13 | |||||||||||||||||||||||||||||||||||||||
| Total regulatory liabilities | 12,144 | 10,009 | 589 | 626 | 825 | 281 | 358 | 185 | |||||||||||||||||||||||||||||||||||||||
| Less: current portion | 1,128 | 846 | 140 | 31 | 103 | 13 | 42 | 48 | |||||||||||||||||||||||||||||||||||||||
| Total noncurrent regulatory liabilities | $ | 11,016 | $ | 9,163 | $ | 449 | $ | 595 | $ | 722 | $ | 268 | $ | 316 | $ | 137 |
Combined Notes to Consolidated Financial Statements
(Dollars in millions, except per share data unless otherwise noted)
Note 2 — Regulatory Matters
| December 31, 2024 | Exelon | ComEd | PECO | BGE | PHI | Pepco | DPL | ACE | |||||||||||||||||||||||||||||||||||||||
| Regulatory assets | |||||||||||||||||||||||||||||||||||||||||||||||
| AMI programs - deployment costs | $ | 82 | $ | — | $ | — | $ | 29 | $ | 53 | $ | 11 | $ | 13 | $ | 29 | |||||||||||||||||||||||||||||||
| AMI programs - legacy meters | 90 | 13 | — | 4 | 73 | 30 | 10 | 33 | |||||||||||||||||||||||||||||||||||||||
| Asset retirement obligations | 173 | 112 | 23 | 26 | 12 | 8 | 3 | 1 | |||||||||||||||||||||||||||||||||||||||
| Carbon mitigation credit | 179 | 179 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
| COVID-19 | 59 | 3 | — | 4 | 52 | 49 | 3 | — | |||||||||||||||||||||||||||||||||||||||
| Deferred income taxes | 937 | — | 925 | — | 12 | 12 | — | — | |||||||||||||||||||||||||||||||||||||||
| Deferred storm costs | 125 | — | 23 | 73 | 29 | 8 | 1 | 20 | |||||||||||||||||||||||||||||||||||||||
| Distributed generation rebate | 171 | 171 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
| Electric distribution formula rate annual reconciliations | 554 | 554 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
| Electric distribution formula rate significant one-time events | 98 | 98 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
| Electric energy and natural gas costs | 108 | — | — | 38 | 70 | 18 | 20 | 32 | |||||||||||||||||||||||||||||||||||||||
| Energy efficiency and demand response programs | 652 | — | 10 | 329 | 313 | 174 | 72 | 67 | |||||||||||||||||||||||||||||||||||||||
| Energy efficiency costs | 1,890 | 1,890 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
| Fair value of long-term debt | 457 | — | — | — | 362 | — | — | — | |||||||||||||||||||||||||||||||||||||||
| Fair value of PHI's unamortized energy contracts | 26 | — | — | — | 26 | — | — | — | |||||||||||||||||||||||||||||||||||||||
| MGP remediation costs | 307 | 275 | 18 | 14 | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
| Multi-year plan reconciliations | 170 | 81 | — | 66 | 23 | 23 | — | — | |||||||||||||||||||||||||||||||||||||||
| Pension and OPEB | 2,382 | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
| Pension and OPEB - merger related | 503 | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
| Removal costs | 869 | — | — | 261 | 608 | 127 | 127 | 356 | |||||||||||||||||||||||||||||||||||||||
| Renewable energy | 131 | 131 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
| Transmission formula rate annual reconciliations | 114 | 20 | 15 | 30 | 49 | 37 | 12 | — | |||||||||||||||||||||||||||||||||||||||
| Under-recovered credit loss expense | 147 | 126 | — | — | 21 | — | — | 21 | |||||||||||||||||||||||||||||||||||||||
| Under-recovered revenue decoupling | 188 | — | — | 98 | 90 | 60 | — | 30 | |||||||||||||||||||||||||||||||||||||||
| Universal service fund charge under-recovery - Electric | 19 | — | 19 | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
| Zero emission credit | 4 | 4 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
| Other | 215 | 64 | 35 | 23 | 100 | 46 | 14 | 14 | |||||||||||||||||||||||||||||||||||||||
| Total regulatory assets | 10,650 | 3,721 | 1,068 | 995 | 1,893 | 603 | 275 | 603 | |||||||||||||||||||||||||||||||||||||||
| Less: current portion | 1,940 | 1,159 | 65 | 207 | 323 | 157 | 60 | 101 | |||||||||||||||||||||||||||||||||||||||
| Total noncurrent regulatory assets | $ | 8,710 | $ | 2,562 | $ | 1,003 | $ | 788 | $ | 1,570 | $ | 446 | $ | 215 | $ | 502 |
Combined Notes to Consolidated Financial Statements
(Dollars in millions, except per share data unless otherwise noted)
Note 2 — Regulatory Matters
| December 31, 2024 | Exelon | ComEd | PECO | BGE | PHI | Pepco | DPL | ACE | |||||||||||||||||||||||||||||||||||||||
| Regulatory liabilities | |||||||||||||||||||||||||||||||||||||||||||||||
| Decommissioning the Regulatory Agreement Units | $ | 4,027 | $ | 3,780 | $ | 247 | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||||||||||||
| Dedicated facilities charge | 143 | — | — | 143 | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
| Deferred income taxes | 2,756 | 1,607 | — | 484 | 665 | 285 | 247 | 133 | |||||||||||||||||||||||||||||||||||||||
| Electric energy and natural gas costs | 108 | 12 | 81 | — | 15 | 8 | 7 | — | |||||||||||||||||||||||||||||||||||||||
| Energy efficiency and demand response programs | 1 | — | 1 | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
| Fiber Refund | 16 | — | 16 | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
| Multi-year plan reconciliations | 9 | — | — | — | 9 | — | 9 | — | |||||||||||||||||||||||||||||||||||||||
| Over-recovered revenue decoupling | 2 | — | — | — | 2 | — | 2 | — | |||||||||||||||||||||||||||||||||||||||
| Removal costs | 1,958 | 1,841 | — | 11 | 106 | 20 | 86 | — | |||||||||||||||||||||||||||||||||||||||
| Renewable portfolio standards costs | 1,369 | 1,369 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
| Transmission formula rate annual reconciliations | 14 | — | — | — | 14 | — | — | 14 | |||||||||||||||||||||||||||||||||||||||
| Other | 206 | 9 | 30 | 10 | 52 | 14 | 16 | 9 | |||||||||||||||||||||||||||||||||||||||
| Total regulatory liabilities | 10,609 | 8,618 | 375 | 648 | 863 | 327 | 367 | 156 | |||||||||||||||||||||||||||||||||||||||
| Less: current portion | 411 | 197 | 122 | 12 | 69 | 17 | 42 | 10 | |||||||||||||||||||||||||||||||||||||||
| Total noncurrent regulatory liabilities | $ | 10,198 | $ | 8,421 | $ | 253 | $ | 636 | $ | 794 | $ | 310 | $ | 325 | $ | 146 |
Descriptions of the regulatory assets and liabilities included in the tables above are summarized below, including their recovery and amortization periods.
| Line Item | Description | End Date of Remaining Recovery/Refund Period | Return | ||||||||
| AMI programs - deployment costs | Represents installation and ongoing incremental costs of new smart meters, including implementation costs at Pepco and DPL of dynamic pricing for energy usage resulting from smart meters. | BGE - 2026 Pepco - 2029 DPL - 2030 ACE - 2045 | BGE, Pepco, DPL - Yes ACE - Yes, on incremental costs of new smart meters | ||||||||
| AMI programs - legacy meters | Represents early retirement costs of legacy meters. | ComEd - 2028 BGE - 2026 Pepco - 2029 DPL - 2030 ACE - 2045 | ComEd, Pepco (District of Columbia), DPL (Delaware), ACE - Yes BGE, Pepco (Maryland), DPL (Maryland) - No | ||||||||
| Asset retirement obligations | Represents future legally required removal costs associated with existing AROs. | Over the life of the related assets. | Yes, once the removal activities have been performed | ||||||||
| Carbon mitigation credit | Represents CMC procurement costs and credits as well as reasonable costs ComEd has incurred to implement and comply with the CMC procurement process. | 2026 | No |
Combined Notes to Consolidated Financial Statements
(Dollars in millions, except per share data unless otherwise noted)
Note 2 — Regulatory Matters
| Line Item | Description | End Date of Remaining Recovery/Refund Period | Return | ||||||||
| COVID-19 | Represents incremental credit losses and direct costs related to COVID-19 incurred primarily in 2020 at the Utility Registrants, partially offset by a decrease in travel costs at BGE, Pepco and DPL. Direct costs consisted primarily of costs to acquire personal protective equipment, costs for cleaning supplies and services, and costs to hire healthcare professionals to monitor the health of employees. This also includes under-recovered amounts due to COVID-19 that were previously deferred under Pepco’s revenue decoupling program. | ComEd - 2025 BGE - 2028 PECO - 2025 Pepco (District of Columbia) - $37 million - 2034 Pepco (Maryland) - $5 million - 2029 DPL (Delaware) - $1 million - 2028 | ComEd, BGE, and Pepco - Yes PECO and DPL (Delaware) - No | ||||||||
| Decommissioning the Regulatory Agreement Units | Represents estimated excess funds at the end of decommissioning the Regulatory Agreement Units. See below regarding Decommissioning the Regulatory Agreement Units for additional information. | Not currently being refunded. | No | ||||||||
| Dedicated facilities charge | Represents the timing difference between the recovery of certain transmission-related assets and their depreciable life. | Depreciable life of the related assets. | Yes |
Combined Notes to Consolidated Financial Statements
(Dollars in millions, except per share data unless otherwise noted)
Note 2 — Regulatory Matters
| Line Item | Description | End Date of Remaining Recovery/Refund Period | Return | ||||||||
| Deferred income taxes | Represents deferred income taxes that are recoverable or refundable through customer rates, primarily associated with accelerated depreciation, the equity component of AFUDC, and the effects of income tax rate changes, including those resulting from the TCJA. | Amounts are recoverable over the period in which the related deferred income taxes reverse, which is generally based on the expected life of the underlying assets. For TCJA, generally refunded over the remaining depreciable life of the underlying assets, except in certain jurisdictions where the commissions have approved a shorter refund period for certain assets not subject to IRS normalization rules. | No | ||||||||
| Deferred storm costs | For Pepco, DPL, ACE, PECO and BGE, amounts represent total incremental storm restoration costs incurred due to major storm events recoverable from customers in the Maryland, New Jersey jurisdictions and Pennsylvania. | Pepco (Maryland) - $8 million to be determined in pending multi-year plan filed with MDPSC. DPL - 2027 ACE - $2 million - 2026; $15 million - 2028 PECO - $75 million to be determined in the next distribution rate case filed with the PAPUC. BGE - $34 million - 2028; $47 million to be determined in the next multi-year plan filed with MDPSC. | Pepco, DPL, BGE - Yes ACE, PECO - No | ||||||||
| Distributed generation rebates | Represents ComEd's costs recovered through the distributed generation rebate adjustment tariff and the reconciliation of the difference of the revenue requirement in effect for the prior year and the revenue requirement based on actual prior year costs. Deferred distributed generation rebate costs are recovered over a 15-year period. | 2039 | Yes |
Combined Notes to Consolidated Financial Statements
(Dollars in millions, except per share data unless otherwise noted)
Note 2 — Regulatory Matters
| Line Item | Description | End Date of Remaining Recovery/Refund Period | Return | ||||||||
| Electric distribution formula rate annual reconciliations | Represents under/(over)-recoveries related to electric distribution service costs recoverable through ComEd's performance-based formula rate, which was updated annually with rates effective on January 1st. | 2026 | Yes | ||||||||
| Electric distribution formula rate significant one-time events | Represents deferred distribution service costs related to ComEd's significant one-time events (e.g., storm costs), which are recovered over 5 years from date of the event. | 2029 | Yes | ||||||||
| Electric energy and natural gas costs | Represents under (over)-recoveries related to energy and gas supply related costs recoverable (refundable) under approved rate riders. | 2026 | DPL (Delaware), ACE - Yes ComEd, PECO, BGE, Pepco, DPL (Maryland) - No | ||||||||
| Energy efficiency and demand response programs | Includes under (over)-recoveries of costs incurred related to energy efficiency programs and demand response programs and recoverable costs associated with customer direct load control and energy efficiency and conservation programs that are being recovered from customers. | PECO - 2025 BGE - 2030 Pepco, DPL - 2030 ACE - 2032 | BGE, Pepco (Maryland), DPL (Maryland) - See above regarding EmPOWER Maryland Cost Recovery for additional information Pepco (District of Columbia) - No DPL (Delaware), ACE - Yes PECO - Yes on capital investment recovered through this mechanism | ||||||||
| Energy efficiency costs | Represents ComEd's costs recovered through the energy efficiency formula rate tariff and the reconciliation of the difference of the revenue requirement in effect for the prior year and the revenue requirement based on actual prior year costs. Deferred energy efficiency costs are recovered over the weighted average useful life of the related energy measure. | 2038 | Yes |
Combined Notes to Consolidated Financial Statements
(Dollars in millions, except per share data unless otherwise noted)
Note 2 — Regulatory Matters
| Line Item | Description | End Date of Remaining Recovery/Refund Period | Return | ||||||||
| Fair value of long-term debt | Represents the difference between the carrying value and fair value of long-term debt of BGE, recorded at Exelon, and PHI of $88 million and $338 million, respectively, as of December 31, 2025, and $95 million and $362 million, respectively, as of December 31, 2024, as of the 2016 PHI and 2012 Constellation merger dates. | Exelon - 2036 PHI - 2045 | No | ||||||||
| Fair value of PHI’s unamortized energy contracts | Represents the regulatory assets recorded at Exelon and PHI offsetting the fair value adjustment related to Pepco's, DPL's, and ACE's electricity and natural gas energy supply contracts recorded at PHI as of the PHI merger date. | 2036 | No | ||||||||
| Fiber Refund | Represents revenues collected from Constellation and BSC for their use of PECO's fiber assets before the end of 2021. | 2025 | No | ||||||||
| MGP remediation costs | Represents environmental remediation costs for MGP sites recorded at ComEd, PECO, and BGE. | ComEd and PECO - Over the expected remediation period. See Note 16 — Commitments and Contingencies for additional information. BGE - 10 years from when the remediation spend occurs. | ComEd and PECO - No BGE - Yes | ||||||||
| Multi-year plan reconciliations | Represents under (over)-recoveries related to electric and gas distribution multi-year plans. | ComEd - 2028 BGE - 2027 Pepco (Maryland) - $1 million related to 2023 reconciliation - 2026. $18 million related to 2024 reconciliation - to be determined in a future MDPSC order. Pepco (District of Columbia) - $6 million related to 2025 reconciliation - to be determined in a future DCPSC order. DPL (Maryland) - $7 million related to 2024 reconciliation. | ComEd - Yes BGE - No Pepco (Maryland) - No Pepco (District of Columbia) - Yes DPL (Maryland) - Yes |
Combined Notes to Consolidated Financial Statements
(Dollars in millions, except per share data unless otherwise noted)
Note 2 — Regulatory Matters
| Line Item | Description | End Date of Remaining Recovery/Refund Period | Return | ||||||||
| Pension and OPEB | Primarily reflects the Utility Registrants' and PHI's portion of deferred costs, including unamortized actuarial losses (gains) and prior service costs (credits), associated with Exelon's pension and OPEB plans, which are recovered through customer rates once amortized through net periodic benefit cost. Also, includes the Utility Registrants' and PHI's non–service cost components capitalized in Property, plant and equipment, net on their Consolidated Balance Sheets. | The deferred costs are amortized over the plan participants' average remaining service periods subject to applicable pension and OPEB cost recognition policies. See Note 12 — Retirement Benefits for additional information. The capitalized non–service cost components are amortized over the lives of the underlying assets. | No | ||||||||
| Pension and OPEB - merger related | The deferred costs established at the date of the 2012 Constellation and 2016 PHI mergers are amortized over the plan participants' average remaining service periods subject to applicable pension and OPEB cost recognition policies. The costs are recovered through customer rates once amortized through net periodic benefit cost. See Note 12 — Retirement Benefits for additional information. The capitalized non–service cost components are amortized over the lives of the underlying assets. | Legacy BGE - 2038 Legacy PHI - 2032 | No | ||||||||
| Removal costs | For BGE, Pepco, DPL, and ACE, the regulatory asset represents costs incurred to remove property, plant and equipment in excess of amounts received from customers through depreciation rates. For ComEd, BGE, Pepco, and DPL, the regulatory liability represents amounts received from customers through depreciation rates to cover the future non–legally required cost to remove property, plant and equipment, which reduces rate base for ratemaking purposes. | BGE, Pepco, DPL, and ACE - Asset is generally recovered over the life of the underlying assets. ComEd, BGE, Pepco, DPL, and ACE - Liability is reduced as costs are incurred. | Yes | ||||||||
| Renewable energy | Represents the change in fair value of ComEd‘s 20-year floating-to-fixed long-term renewable energy swap contracts. | 2032 | No |
Combined Notes to Consolidated Financial Statements
(Dollars in millions, except per share data unless otherwise noted)
Note 2 — Regulatory Matters
| Line Item | Description | End Date of Remaining Recovery/Refund Period | Return | ||||||||
| Renewable portfolio standards costs | Represents an overcollection of funds from both ComEd customers and alternative retail electricity suppliers to be spent on future renewable energy procurements. | $1,535 million to be determined in pending ICC annual reconciliation for the Renewable Energy Adjustment rider. $76 million to be determined based on the LTRRPP developed by the IPA. | No | ||||||||
| Transmission formula rate annual reconciliations | Represents under (over)-recoveries related to transmission service costs recoverable through the Utility Registrants’ FERC formula rates, which are updated annually with rates effective each June 1st. | 2027 | Yes | ||||||||
| Under (over) -recovered revenue decoupling | Represents electric and / or gas distribution costs recoverable from or refundable to customers under decoupling mechanisms. | BGE - 2026 Pepco (Maryland) - $4 million - 2026 Pepco (District of Columbia) - $26 million - 2028 DPL - 2025 ACE - 2026 | BGE, Pepco, DPL, ACE - No |
Combined Notes to Consolidated Financial Statements
(Dollars in millions, except per share data unless otherwise noted)
Note 2 — Regulatory Matters
| Line Item | Description | End Date of Remaining Recovery/Refund Period | Return | ||||||||
| Under (over) -recovered credit loss expense | For ComEd and ACE, amounts represent the difference between annual credit loss expense and revenues collected in rates through ICC and NJBPU-approved riders. The difference between net credit loss expense and revenues collected through the rider each calendar year for ComEd is recovered over a twelve-month period beginning in June of the following calendar year. ACE intends to recover from or refund to customers June through May of each respective year, subject to approval of the NJBPU. | ComEd - 2026 ACE - To be determined in the annual Societal Benefits Rider filing with NJBPU. | No | ||||||||
| Universal service fund charge under-recovery - Electric | Represents under-recovery of electric supply and distribution revenue shortfalls net of base rate recovery related to PECO’s Universal Service programs, which are designed to provide affordable bills for electric service to low-income, residential customers based on individual household needs. | PECO - To be determined in the annual adjustment and reconciliation as approved by the PAPUC. | No | ||||||||
| Work stoppage costs | Represents work stoppage costs incurred by ACE. | 2030 | No | ||||||||
| Zero emission credit | Represents ZEC procurement costs and any reasonable costs ComEd has incurred to implement and comply with the ZEC procurement process. | Over 9 months starting with the September billing period and ending with the following May billing period. | No | ||||||||
Decommissioning the Regulatory Agreement Units
The regulatory agreements with the ICC and PAPUC dictate obligations related to the shortfall or excess of NDT funds necessary for decommissioning the former ComEd units on a unit-by-unit basis and the former PECO units in total.
For the former PECO units, given the symmetric settlement provisions that allow for continued recovery of decommissioning costs from PECO customers in the event of a shortfall and the obligation for Constellation to ultimately return excess funds to PECO customers (on an aggregate basis for all seven units), decommissioning-related activities result in an adjustment to the Receivable related to Regulatory Agreement Units and an equal adjustment to the regulatory liabilities or regulatory assets at PECO.
For the former ComEd units, given no further recovery from ComEd customers is permitted and Constellation retains an obligation to ultimately return excess funds to ComEd customers (on a unit-by-unit basis), to the extent excess funds are expected for each unit, decommissioning-related activities result in an adjustment to the Receivable related to Regulatory Agreement Units and an equal adjustment to the regulatory liabilities at ComEd. However, given the asymmetric settlement provision that does not allow for continued recovery from ComEd customers in the event of a shortfall, recognition of a regulatory asset at ComEd is not permissible.
Combined Notes to Consolidated Financial Statements
(Dollars in millions, except per share data unless otherwise noted)
Note 2 — Regulatory Matters
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 the Registrants' 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. PECO had no related amounts at December 31, 2025 and December 31, 2024
| Exelon | ComEd**(a)** | BGE**(b)** | PHI | Pepco**(c)** | DPL**(d)** | ACE**(e)** | ||||||||||||||||||||||||||||||||||||||
| December 31, 2025 | $ | 98 | $ | 12 | $ | 47 | $ | 39 | $ | 22 | $ | 1 | $ | 16 | ||||||||||||||||||||||||||||||
| December 31, 2024 | $ | 117 | $ | 46 | $ | 16 | $ | 55 | $ | 40 | $ | 1 | $ | 14 |
(a)For the year ended December 31, 2025, reflects ComEd's unrecognized equity returns earned for ratemaking purposes on its electric distribution rates and distributed generation regulatory assets. For the year ended December 31, 2024, reflects ComEd's unrecognized equity returns earned for ratemaking purposes on its electric distribution rates and formula rates regulatory assets.
(b)BGE's amount capitalized for ratemaking purposes primarily relates to earnings on shareholders' investment on AMI programs and investments in rate base included in the multi-year plan reconciliations.
(c)Pepco's authorized amounts capitalized for ratemaking purposes relate to earnings on shareholders' investment on AMI programs, Energy efficiency and demand response programs, COVID-19 costs, investments in rate base and revenues included in the multi-year plan reconciliations, and a portion of Pepco District of Columbia's revenue decoupling.
(d)DPL's authorized amounts capitalized for ratemaking purposes relate to earnings on shareholders' investment on AMI programs and Energy efficiency and demand response programs.
(e)ACE's authorized amounts capitalized for ratemaking purposes primarily relate to earnings on shareholders' investment on AMI programs.
3. 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. The primary sources of revenue include regulated electric and gas tariff sales, distribution, and transmission services. The performance obligations, revenue recognition, and payment terms associated with these sources of revenue are further discussed in the table below. There are no significant financing components for these sources of revenue and no variable consideration.
Unless otherwise noted, for each of the significant revenue categories and related performance obligations described below, the Registrants have the right to consideration from the customer in an amount that corresponds directly with the value transferred to the customer for the performance completed to date. Therefore, the Registrants generally recognize revenue in the amount for which they have the right to invoice the customer. As a result, there are generally no significant judgments used in determining or allocating the transaction price.
Combined Notes to Consolidated Financial Statements
(Dollars in millions, except per share data unless otherwise noted)
Note 3 — Revenue from Contracts with Customers
| Revenue Source | Description | Performance Obligation | Timing of Revenue Recognition | Payment Terms | ||||||||||
| Regulated Electric and Gas Tariff Sales | Sales of electricity and electricity distribution services (the Utility Registrants) and natural gas and gas distribution services (PECO, BGE, and DPL) to residential, commercial, industrial, and governmental customers through regulated tariff rates approved by state regulatory commissions. | Delivery of electricity and/or natural gas. | Over time (each day) as the electricity and/or natural gas is delivered to customers. Tariff sales are generally considered daily contracts as customers can discontinue service at any time. (a) | Within the month following delivery of the electricity or natural gas to the customer. | ||||||||||
| Regulated Transmission Services | The Utility Registrants provide open access to their transmission facilities to PJM, which directs and controls the operation of these transmission facilities and accordingly compensates the Utility Registrants pursuant to filed tariffs at cost-based rates approved by FERC. | Various including (i) Network Integration Transmission Services (NITS), (ii) scheduling, system control and dispatch services, and (iii) access to the wholesale grid. | Over time utilizing output methods to measure progress towards completion. (b) | Paid weekly by PJM. |
(a)Electric and natural gas utility customers have the choice to purchase electricity or natural gas from competitive electric generation and natural gas suppliers. While the Utility Registrants are required under state legislation to bill their customers for the supply and distribution of electricity and/or natural gas, they recognize revenue related only to the distribution services when customers purchase their electricity or natural gas from competitive suppliers.
(b)Passage of time is used for NITS and access to the wholesale grid and MWhs of energy transported over the wholesale grid is used for scheduling, system control and dispatch services.
The Utility Registrants do not incur any material costs to obtain or fulfill contracts with customers.
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 in Other current liabilities and Other noncurrent liabilities in the Registrants' Consolidated Balance Sheets.
In July 2020, Pepco, DPL, and ACE entered into a collaborative arrangement with an unrelated communications‑infrastructure owner involving the sale of an undivided interest in certain transmission tower attachment agreements and the transfer of management rights, as further described in Note 4 — Revenue from Contracts with Customers of the 2024 Form 10‑K. The Companies received additional consideration in 2023 related to an amendment of the payment options under the arrangement. Contract liabilities associated with the original arrangement and the 2023 amendment are being recognized as Electric operating revenues over 35‑year and 31‑year periods, respectively.
Combined Notes to Consolidated Financial Statements
(Dollars in millions, except per share data unless otherwise noted)
Note 3 — Revenue from Contracts with Customers
The following table provides a rollforward of the contract liabilities reflected in Exelon's, PHI's, Pepco's, DPL's, and ACE'S Consolidated Balance Sheets. As of December 31, 2025, 2024, and 2023, ComEd's, PECO's, and BGE's contract liabilities were not material.
| Exelon**(a)** | PHI**(a)** | Pepco**(a)** | DPL**(a)** | ACE**(a)** | |||||||||||||||||||||||||
| Balance at December 31, 2023 | $ | 133 | $ | 133 | $ | 107 | $ | 13 | $ | 13 | |||||||||||||||||||
| Revenues recognized | (6) | (6) | (6) | — | — | ||||||||||||||||||||||||
| Balance at December 31, 2024 | $ | 127 | $ | 127 | $ | 101 | $ | 13 | $ | 13 | |||||||||||||||||||
| Revenues recognized | (8) | (8) | (6) | (1) | (1) | ||||||||||||||||||||||||
| Balance at December 31, 2025 | $ | 119 | $ | 119 | $ | 95 | $ | 12 | $ | 12 |
(a)Revenues recognized in the years ended December 31, 2025 and 2024, were included in the contract liabilities at December 31, 2024 and 2023, respectively.
Transaction Price Allocated to Remaining Performance Obligations
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 December 31, 2025. 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 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.
| Year | Exelon | PHI | Pepco | DPL | ACE | ||||||||||||||||||||||||
| 2026 | $ | 5 | $ | 5 | $ | 5 | $ | — | $ | — | |||||||||||||||||||
| 2027 | 6 | 6 | 5 | 1 | — | ||||||||||||||||||||||||
| 2028 | 6 | 6 | 5 | — | 1 | ||||||||||||||||||||||||
| 2029 | 7 | 7 | 6 | 1 | — | ||||||||||||||||||||||||
| 2030 and thereafter | 95 | 95 | 74 | 10 | 11 | ||||||||||||||||||||||||
| Total | $ | 119 | $ | 119 | $ | 95 | $ | 12 | $ | 12 |
Revenue Disaggregation
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 4 — Segment Information for the presentation of the Registrant's revenue disaggregation.
4. Segment Information (All Registrants)
Operating segments for each of the Registrants are determined based on information used by the CODMs in deciding how to evaluate performance and allocate resources at each of the Registrants. The Chief Executive Officer is the CODM for Exelon. For PHI and each of the Utility Registrants, CODM responsibilities are shared by Exelon's Chief Operating Officer and the Utility Registrant's Chief Executive Officer.
Exelon has six reportable segments, which include ComEd, PECO, BGE, and PHI's three 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 rely on a variety of business considerations, including net income, in evaluating segment performance, determining reinvestment of profits, and establishing the amounts of dividend distributions.
Combined Notes to Consolidated Financial Statements
(Dollars in millions, except per share data unless otherwise noted)
Note 4 — Segment Information
An analysis and reconciliation of the Registrants' reportable segment information to the respective information in the consolidated financial statements for the years ended December 31, 2025, 2024, and 2023 is as follows:
| ComEd | PECO | BGE | PHI | Other**(a)** | Intersegment Eliminations | Exelon | |||||||||||||||||||||||||||||||||||
| Operating revenues**(b)****:** | |||||||||||||||||||||||||||||||||||||||||
| 2025 | |||||||||||||||||||||||||||||||||||||||||
| Electric revenues | $ | 7,267 | $ | 3,827 | $ | 4,007 | $ | 6,894 | $ | — | $ | (36) | $ | 21,959 | |||||||||||||||||||||||||||
| Natural gas revenues | — | 857 | 1,215 | 231 | — | (4) | 2,299 | ||||||||||||||||||||||||||||||||||
| Shared service and other revenues | — | — | — | 10 | 1,900 | (1,910) | — | ||||||||||||||||||||||||||||||||||
| Total operating revenues | $ | 7,267 | $ | 4,684 | $ | 5,222 | $ | 7,135 | $ | 1,900 | $ | (1,950) | $ | 24,258 | |||||||||||||||||||||||||||
| 2024 | |||||||||||||||||||||||||||||||||||||||||
| Electric revenues | $ | 8,219 | $ | 3,325 | $ | 3,436 | $ | 6,258 | $ | — | $ | (22) | $ | 21,216 | |||||||||||||||||||||||||||
| Natural gas revenues | — | 648 | 990 | 180 | — | (6) | 1,812 | ||||||||||||||||||||||||||||||||||
| Shared service and other revenues | — | — | — | 10 | 1,865 | (1,875) | — | ||||||||||||||||||||||||||||||||||
| Total operating revenues | $ | 8,219 | $ | 3,973 | $ | 4,426 | $ | 6,448 | $ | 1,865 | $ | (1,903) | $ | 23,028 | |||||||||||||||||||||||||||
| 2023 | |||||||||||||||||||||||||||||||||||||||||
| Electric revenues | $ | 7,844 | $ | 3,202 | $ | 3,109 | $ | 5,812 | $ | — | $ | (51) | $ | 19,916 | |||||||||||||||||||||||||||
| Natural gas revenues | — | 692 | 918 | 205 | — | (4) | 1,811 | ||||||||||||||||||||||||||||||||||
| Shared service and other revenues | — | — | — | 9 | 1,759 | (1,768) | — | ||||||||||||||||||||||||||||||||||
| Total operating revenues | $ | 7,844 | $ | 3,894 | $ | 4,027 | $ | 6,026 | $ | 1,759 | $ | (1,823) | $ | 21,727 | |||||||||||||||||||||||||||
| Less: | |||||||||||||||||||||||||||||||||||||||||
| Purchased power | |||||||||||||||||||||||||||||||||||||||||
| 2025 | $ | 1,782 | $ | 1,436 | $ | 1,890 | $ | 2,836 | $ | — | $ | — | $ | 7,944 | |||||||||||||||||||||||||||
| 2024 | 3,042 | 1,265 | 1,460 | 2,447 | — | — | 8,214 | ||||||||||||||||||||||||||||||||||
| 2023 | 2,816 | 1,270 | 1,311 | 2,250 | — | 1 | 7,648 | ||||||||||||||||||||||||||||||||||
| Purchased fuel | |||||||||||||||||||||||||||||||||||||||||
| 2025 | $ | — | $ | 297 | $ | 331 | $ | 95 | $ | — | $ | — | $ | 723 | |||||||||||||||||||||||||||
| 2024 | — | 212 | 191 | 66 | — | — | 469 | ||||||||||||||||||||||||||||||||||
| 2023 | — | 274 | 220 | 98 | — | 1 | 593 | ||||||||||||||||||||||||||||||||||
| Operating and maintenance | |||||||||||||||||||||||||||||||||||||||||
| 2025 | $ | 1,306 | $ | 946 | $ | 815 | $ | 1,123 | $ | 1,840 | $ | (853) | $ | 5,177 | |||||||||||||||||||||||||||
| 2024 | 1,284 | 875 | 790 | 1,046 | 1,733 | (788) | 4,940 | ||||||||||||||||||||||||||||||||||
| 2023 | 1,096 | 786 | 520 | 1,110 | 1,861 | (814) | 4,559 | ||||||||||||||||||||||||||||||||||
| Operating and maintenance from affiliates | |||||||||||||||||||||||||||||||||||||||||
| 2025 | $ | 404 | $ | 249 | $ | 251 | $ | 204 | $ | 43 | $ | (1,151) | $ | — | |||||||||||||||||||||||||||
| 2024 | 419 | 245 | 246 | 204 | 41 | (1,155) | — | ||||||||||||||||||||||||||||||||||
| 2023 | 354 | 217 | 221 | 179 | 37 | (1,008) | — | ||||||||||||||||||||||||||||||||||
| Depreciation and amortization | |||||||||||||||||||||||||||||||||||||||||
| 2025 | $ | 1,560 | $ | 454 | $ | 632 | $ | 935 | $ | 59 | $ | — | $ | 3,640 | |||||||||||||||||||||||||||
| 2024 | 1,514 | 428 | 638 | 947 | 67 | — | 3,594 | ||||||||||||||||||||||||||||||||||
| 2023 | 1,403 | 397 | 654 | 990 | 62 | — | 3,506 | ||||||||||||||||||||||||||||||||||
| Taxes other than income taxes | |||||||||||||||||||||||||||||||||||||||||
| 2025 | $ | 409 | $ | 240 | $ | 370 | $ | 568 | $ | 42 | $ | — | $ | 1,629 | |||||||||||||||||||||||||||
| 2024 | 376 | 218 | 345 | 528 | 37 | — | 1,504 | ||||||||||||||||||||||||||||||||||
| 2023 | 369 | 202 | 319 | 487 | 31 | — | 1,408 |
Combined Notes to Consolidated Financial Statements
(Dollars in millions, except per share data unless otherwise noted)
Note 4 — Segment Information
| ComEd | PECO | BGE | PHI | Other**(a)** | Intersegment Eliminations | Exelon | |||||||||||||||||||||||||||||||||||
| (Gain) loss on sale of assets and businesses | |||||||||||||||||||||||||||||||||||||||||
| 2025 | $ | — | $ | — | $ | — | $ | (3) | $ | — | $ | — | $ | (3) | |||||||||||||||||||||||||||
| 2024 | (5) | (4) | — | 1 | (4) | — | (12) | ||||||||||||||||||||||||||||||||||
| 2023 | — | — | — | (9) | (1) | — | (10) | ||||||||||||||||||||||||||||||||||
| Interest expense, net(c) | |||||||||||||||||||||||||||||||||||||||||
| 2025 | $ | 517 | $ | 249 | $ | 247 | $ | 408 | $ | 681 | $ | — | $ | 2,102 | |||||||||||||||||||||||||||
| 2024 | 487 | 221 | 216 | 373 | 592 | — | 1,889 | ||||||||||||||||||||||||||||||||||
| 2023 | 464 | 192 | 182 | 323 | 545 | (2) | 1,704 | ||||||||||||||||||||||||||||||||||
| Interest expense to affiliates, net(c) | |||||||||||||||||||||||||||||||||||||||||
| 2025 | $ | 13 | $ | 11 | $ | — | $ | 3 | $ | (2) | $ | — | $ | 25 | |||||||||||||||||||||||||||
| 2024 | 14 | 11 | — | 3 | (3) | — | 25 | ||||||||||||||||||||||||||||||||||
| 2023 | 13 | 9 | — | — | 1 | 2 | 25 | ||||||||||||||||||||||||||||||||||
| Other, net | |||||||||||||||||||||||||||||||||||||||||
| 2025 | $ | (132) | $ | (41) | $ | (51) | $ | (72) | $ | (28) | $ | 54 | $ | (270) | |||||||||||||||||||||||||||
| 2024 | (94) | (37) | (36) | (97) | (38) | 40 | (262) | ||||||||||||||||||||||||||||||||||
| 2023 | (75) | (36) | (18) | (108) | (190) | 19 | (408) | ||||||||||||||||||||||||||||||||||
| Income taxes | |||||||||||||||||||||||||||||||||||||||||
| 2025 | $ | 261 | $ | 29 | $ | 159 | $ | 239 | $ | (165) | $ | — | $ | 523 | |||||||||||||||||||||||||||
| 2024 | 116 | (12) | 49 | 189 | (135) | — | 207 | ||||||||||||||||||||||||||||||||||
| 2023 | 314 | 20 | 133 | 116 | (207) | (2) | 374 | ||||||||||||||||||||||||||||||||||
| Net income (loss) | |||||||||||||||||||||||||||||||||||||||||
| 2025 | $ | 1,147 | $ | 814 | $ | 578 | $ | 799 | $ | (570) | $ | — | $ | 2,768 | |||||||||||||||||||||||||||
| 2024 | 1,066 | 551 | 527 | 741 | (425) | — | 2,460 | ||||||||||||||||||||||||||||||||||
| 2023 | 1,090 | 563 | 485 | 590 | (380) | (20) | 2,328 | ||||||||||||||||||||||||||||||||||
| Supplemental segment information | |||||||||||||||||||||||||||||||||||||||||
| Intersegment revenues(d) | |||||||||||||||||||||||||||||||||||||||||
| 2025 | $ | 21 | $ | 12 | $ | 8 | $ | 10 | $ | 1,890 | $ | (1,941) | $ | — | |||||||||||||||||||||||||||
| 2024 | 8 | 10 | 10 | 10 | 1,855 | (1,893) | — | ||||||||||||||||||||||||||||||||||
| 2023 | 16 | 9 | 9 | 9 | 1,750 | (1,793) | — | ||||||||||||||||||||||||||||||||||
| Capital expenditures | |||||||||||||||||||||||||||||||||||||||||
| 2025 | $ | 2,899 | $ | 1,867 | $ | 1,657 | $ | 2,056 | $ | 50 | $ | — | $ | 8,529 | |||||||||||||||||||||||||||
| 2024 | 2,195 | 1,553 | 1,420 | 1,863 | 66 | — | 7,097 | ||||||||||||||||||||||||||||||||||
| 2023 | 2,576 | 1,426 | 1,367 | 1,988 | 54 | — | 7,411 | ||||||||||||||||||||||||||||||||||
| Total assets | |||||||||||||||||||||||||||||||||||||||||
| 2025 | $ | 48,285 | $ | 19,362 | $ | 17,184 | $ | 29,715 | $ | 6,170 | $ | (4,146) | $ | 116,570 | |||||||||||||||||||||||||||
| 2024 | 44,750 | 17,123 | 15,542 | 28,297 | 6,012 | (3,940) | 107,784 |
(a)Other primarily includes Exelon’s corporate operations, shared service entities, and other financing and investment activities.
(b)Includes gross utility tax receipts from customers. The offsetting remittance of utility taxes to the governing bodies is recorded in Taxes other than income taxes in the Registrants’ Consolidated Statements of Operations and Comprehensive Income. See Note 20 — Supplemental Financial Information for additional information on total utility taxes.
(c)Interest expense, net and Interest expense to affiliates, net are primarily inclusive of Interest expense, which is partially offset by an immaterial amount of interest income.
(d)See Note 21 — Related Party Transactions for additional information on intersegment revenues.
Combined Notes to Consolidated Financial Statements
(Dollars in millions, except per share data unless otherwise noted)
Note 4 — Segment Information
PHI:
| Pepco | DPL | ACE | Other**(a)** | Intersegment Eliminations | PHI | ||||||||||||||||||||||||||||||
| Operating revenues**(b)****:** | |||||||||||||||||||||||||||||||||||
| 2025 | |||||||||||||||||||||||||||||||||||
| Electric revenues | $ | 3,454 | $ | 1,740 | $ | 1,718 | $ | — | $ | (18) | $ | 6,894 | |||||||||||||||||||||||
| Natural gas revenues | — | 231 | — | — | — | 231 | |||||||||||||||||||||||||||||
| Shared service and other revenues | — | — | — | 424 | (414) | 10 | |||||||||||||||||||||||||||||
| Total operating revenues | $ | 3,454 | $ | 1,971 | $ | 1,718 | $ | 424 | $ | (432) | $ | 7,135 | |||||||||||||||||||||||
| 2024 | |||||||||||||||||||||||||||||||||||
| Electric revenues | $ | 3,039 | $ | 1,607 | $ | 1,628 | $ | — | $ | (16) | $ | 6,258 | |||||||||||||||||||||||
| Natural gas revenues | — | 180 | — | — | — | 180 | |||||||||||||||||||||||||||||
| Shared service and other revenues | — | — | — | 438 | (428) | 10 | |||||||||||||||||||||||||||||
| Total operating revenues | $ | 3,039 | $ | 1,787 | $ | 1,628 | $ | 438 | $ | (444) | $ | 6,448 | |||||||||||||||||||||||
| 2023 | |||||||||||||||||||||||||||||||||||
| Electric revenues | $ | 2,824 | $ | 1,483 | $ | 1,522 | $ | 1 | $ | (18) | $ | 5,812 | |||||||||||||||||||||||
| Natural gas revenues | — | 205 | — | — | — | 205 | |||||||||||||||||||||||||||||
| Shared service and other revenues | — | — | — | 422 | (413) | 9 | |||||||||||||||||||||||||||||
| Total operating revenues | $ | 2,824 | $ | 1,688 | $ | 1,522 | $ | 423 | $ | (431) | $ | 6,026 | |||||||||||||||||||||||
| Less: | |||||||||||||||||||||||||||||||||||
| Purchased power | |||||||||||||||||||||||||||||||||||
| 2025 | $ | 1,262 | $ | 766 | $ | 808 | $ | — | $ | — | $ | 2,836 | |||||||||||||||||||||||
| 2024 | 1,055 | 694 | 698 | — | — | 2,447 | |||||||||||||||||||||||||||||
| 2023 | 974 | 639 | 637 | — | — | 2,250 | |||||||||||||||||||||||||||||
| Purchased fuel | |||||||||||||||||||||||||||||||||||
| 2025 | $ | — | $ | 95 | $ | — | $ | — | $ | — | $ | 95 | |||||||||||||||||||||||
| 2024 | — | 66 | — | — | — | 66 | |||||||||||||||||||||||||||||
| 2023 | — | 98 | — | — | — | 98 | |||||||||||||||||||||||||||||
| Operating and maintenance | |||||||||||||||||||||||||||||||||||
| 2025 | $ | 379 | $ | 213 | $ | 173 | $ | 358 | $ | — | $ | 1,123 | |||||||||||||||||||||||
| 2024 | 283 | 196 | 206 | 361 | — | 1,046 | |||||||||||||||||||||||||||||
| 2023 | 336 | 193 | 233 | 348 | — | 1,110 | |||||||||||||||||||||||||||||
| Operating and maintenance from affiliates | |||||||||||||||||||||||||||||||||||
| 2025 | $ | 246 | $ | 178 | $ | 155 | $ | 57 | $ | (432) | $ | 204 | |||||||||||||||||||||||
| 2024 | 251 | 181 | 162 | 54 | (444) | 204 | |||||||||||||||||||||||||||||
| 2023 | 236 | 171 | 153 | 50 | (431) | 179 | |||||||||||||||||||||||||||||
| Depreciation and amortization | |||||||||||||||||||||||||||||||||||
| 2025 | $ | 433 | $ | 252 | $ | 248 | $ | 2 | $ | — | $ | 935 | |||||||||||||||||||||||
| 2024 | 407 | 245 | 278 | 17 | — | 947 |
Combined Notes to Consolidated Financial Statements
(Dollars in millions, except per share data unless otherwise noted)
Note 4 — Segment Information
| Pepco | DPL | ACE | Other**(a)** | Intersegment Eliminations | PHI | ||||||||||||||||||||||||||||||
| 2023 | 441 | 244 | 283 | 22 | — | 990 | |||||||||||||||||||||||||||||
| Taxes other than income taxes | |||||||||||||||||||||||||||||||||||
| 2025 | $ | 455 | $ | 88 | $ | 9 | $ | 16 | $ | — | $ | 568 | |||||||||||||||||||||||
| 2024 | 424 | 79 | 9 | 16 | — | 528 | |||||||||||||||||||||||||||||
| 2023 | 390 | 75 | 8 | 14 | — | 487 | |||||||||||||||||||||||||||||
| (Gain) loss on sale of assets and businesses | |||||||||||||||||||||||||||||||||||
| 2025 | $ | (1) | $ | — | $ | (2) | $ | — | $ | — | $ | (3) | |||||||||||||||||||||||
| 2024 | 1 | — | — | — | — | 1 | |||||||||||||||||||||||||||||
| 2023 | (9) | — | — | — | — | (9) | |||||||||||||||||||||||||||||
| Interest expense, net(c) | |||||||||||||||||||||||||||||||||||
| 2025 | $ | 214 | $ | 102 | $ | 82 | $ | 10 | $ | — | $ | 408 | |||||||||||||||||||||||
| 2024 | 195 | 94 | 74 | 10 | — | 373 | |||||||||||||||||||||||||||||
| 2023 | 165 | 74 | 72 | 12 | — | 323 | |||||||||||||||||||||||||||||
| Interest expense to affiliates, net(c) | |||||||||||||||||||||||||||||||||||
| 2025 | $ | — | $ | — | $ | — | $ | 3 | $ | — | $ | 3 | |||||||||||||||||||||||
| 2024 | (3) | (1) | 5 | 2 | — | 3 | |||||||||||||||||||||||||||||
| 2023 | — | — | — | — | — | — | |||||||||||||||||||||||||||||
| Other, net | |||||||||||||||||||||||||||||||||||
| 2025 | $ | (41) | $ | (16) | $ | (10) | $ | (5) | $ | — | $ | (72) | |||||||||||||||||||||||
| 2024 | (54) | (25) | (14) | (4) | — | (97) | |||||||||||||||||||||||||||||
| 2023 | (66) | (18) | (20) | (4) | — | (108) | |||||||||||||||||||||||||||||
| Income taxes | |||||||||||||||||||||||||||||||||||
| 2025 | $ | 106 | $ | 69 | $ | 67 | $ | (3) | $ | — | $ | 239 | |||||||||||||||||||||||
| 2024 | 90 | 49 | 55 | (5) | — | 189 | |||||||||||||||||||||||||||||
| 2023 | 51 | 35 | 36 | (6) | — | 116 | |||||||||||||||||||||||||||||
| Net income (loss) from continuing operations | |||||||||||||||||||||||||||||||||||
| 2025 | $ | 401 | $ | 224 | $ | 188 | $ | (14) | $ | — | $ | 799 | |||||||||||||||||||||||
| 2024 | 390 | 209 | 155 | (13) | — | 741 | |||||||||||||||||||||||||||||
| 2023 | 306 | 177 | 120 | (13) | — | 590 | |||||||||||||||||||||||||||||
| Supplemental segment information | |||||||||||||||||||||||||||||||||||
| Intersegment revenues(d) | |||||||||||||||||||||||||||||||||||
| 2025 | $ | 6 | $ | 9 | $ | 4 | $ | 423 | $ | (432) | $ | 10 | |||||||||||||||||||||||
| 2024 | 7 | 7 | 2 | 438 | (444) | 10 | |||||||||||||||||||||||||||||
| 2023 | 9 | 8 | 2 | 422 | (432) | 9 | |||||||||||||||||||||||||||||
| Capital expenditures | |||||||||||||||||||||||||||||||||||
| 2025 | $ | 957 | $ | 534 | $ | 390 | $ | 175 | $ | — | $ | 2,056 | |||||||||||||||||||||||
| 2024 | 929 | 556 | 373 | 5 | — | 1,863 | |||||||||||||||||||||||||||||
| 2023 | 957 | 562 | 460 | 9 | — | 1,988 | |||||||||||||||||||||||||||||
| Total assets | |||||||||||||||||||||||||||||||||||
| 2025 | $ | 12,728 | $ | 6,789 | $ | 5,632 | $ | 4,602 | $ | (36) | $ | 29,715 | |||||||||||||||||||||||
| 2024 | 12,000 | 6,421 | 5,349 | 4,567 | (40) | 28,297 |
(a)Other primarily includes PHI’s corporate operations, shared service entities, and other financing and investment activities.
(b)Includes gross utility tax receipts from customers. The offsetting remittance of utility taxes to the governing bodies is recorded in Taxes other than income taxes in the Registrants’ Consolidated Statements of Operations and Comprehensive Income. See Note 20 — Supplemental Financial Information for additional information on total utility taxes.
(c)Interest expense, net is primarily inclusive of Interest expense, which is partially offset by an immaterial amount of Interest income.
(d)Includes intersegment revenues with ComEd, PECO, and BGE, which are eliminated at Exelon.
Combined Notes to Consolidated Financial Statements
(Dollars in millions, except per share data unless otherwise noted)
Note 4 — Segment Information
Electric and Gas Revenue by Customer Class (Utility Registrants):
The following tables disaggregate the Registrants' revenues 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. For the Utility Registrants, the disaggregation of revenues reflects the two primary utility services of electric sales and natural gas sales (where applicable), with further disaggregation of these tariff sales provided by major customer groups. Exelon's disaggregated revenues are consistent with the Utility Registrants, but exclude any intercompany revenues.
| 2025 | |||||||||||||||||||||||||||||||||||||||||
| Revenues from contracts with customers | ComEd | PECO | BGE | PHI | Pepco | DPL | ACE | ||||||||||||||||||||||||||||||||||
| Electric revenues | |||||||||||||||||||||||||||||||||||||||||
| Residential | $ | 4,203 | $ | 2,494 | $ | 2,503 | $ | 3,733 | $ | 1,669 | $ | 1,049 | $ | 1,015 | |||||||||||||||||||||||||||
| Small commercial & industrial | 2,072 | 627 | 414 | 722 | 205 | 264 | 253 | ||||||||||||||||||||||||||||||||||
| Large commercial & industrial | 593 | 339 | 603 | 1,514 | 1,212 | 122 | 180 | ||||||||||||||||||||||||||||||||||
| Public authorities & electric railroads | 47 | 34 | 33 | 73 | 39 | 16 | 18 | ||||||||||||||||||||||||||||||||||
| Other(a) | 907 | 312 | 476 | 917 | 372 | 303 | 250 | ||||||||||||||||||||||||||||||||||
| Total electric revenues(b) | $ | 7,822 | $ | 3,806 | $ | 4,029 | $ | 6,959 | $ | 3,497 | $ | 1,754 | $ | 1,716 | |||||||||||||||||||||||||||
| Natural gas revenues | |||||||||||||||||||||||||||||||||||||||||
| Residential | $ | — | $ | 593 | $ | 823 | $ | 139 | $ | — | $ | 139 | $ | — | |||||||||||||||||||||||||||
| Small commercial & industrial | — | 206 | 140 | 55 | — | 55 | — | ||||||||||||||||||||||||||||||||||
| Large commercial & industrial | — | — | 248 | 7 | — | 7 | — | ||||||||||||||||||||||||||||||||||
| Transportation | — | 37 | — | 19 | — | 19 | — | ||||||||||||||||||||||||||||||||||
| Other(c) | — | 19 | 51 | 11 | — | 11 | — | ||||||||||||||||||||||||||||||||||
| Total natural gas revenues(d) | $ | — | $ | 855 | $ | 1,262 | $ | 231 | $ | — | $ | 231 | $ | — | |||||||||||||||||||||||||||
| Total revenues from contracts with customers | $ | 7,822 | $ | 4,661 | $ | 5,291 | $ | 7,190 | $ | 3,497 | $ | 1,985 | $ | 1,716 | |||||||||||||||||||||||||||
| Other revenues | |||||||||||||||||||||||||||||||||||||||||
| Revenues from alternative revenue programs | $ | (596) | $ | — | $ | (87) | $ | (63) | $ | (49) | $ | (16) | $ | 2 | |||||||||||||||||||||||||||
| Other electric revenues(e) | 41 | 21 | 14 | 8 | 6 | 2 | — | ||||||||||||||||||||||||||||||||||
| Other natural gas revenues(e) | — | 2 | 4 | — | — | — | — | ||||||||||||||||||||||||||||||||||
| Total other revenues | $ | (555) | $ | 23 | $ | (69) | $ | (55) | $ | (43) | $ | (14) | $ | 2 | |||||||||||||||||||||||||||
| Total revenues for reportable segments | $ | 7,267 | $ | 4,684 | $ | 5,222 | $ | 7,135 | $ | 3,454 | $ | 1,971 | $ | 1,718 |
Combined Notes to Consolidated Financial Statements
(Dollars in millions, except per share data unless otherwise noted)
Note 4 — Segment Information
| 2024 | |||||||||||||||||||||||||||||||||||||||||
| Revenues from contracts with customers | ComEd | PECO | BGE | PHI | Pepco | DPL | ACE | ||||||||||||||||||||||||||||||||||
| Electric revenues | |||||||||||||||||||||||||||||||||||||||||
| Residential | $ | 3,809 | $ | 2,169 | $ | 2,038 | $ | 3,256 | $ | 1,413 | $ | 943 | $ | 900 | |||||||||||||||||||||||||||
| Small commercial & industrial | 2,259 | 547 | 360 | 681 | 184 | 253 | 244 | ||||||||||||||||||||||||||||||||||
| Large commercial & industrial | 1,145 | 261 | 557 | 1,372 | 1,053 | 123 | 196 | ||||||||||||||||||||||||||||||||||
| Public authorities & electric railroads | 60 | 29 | 31 | 74 | 37 | 17 | 20 | ||||||||||||||||||||||||||||||||||
| Other(a) | 1,080 | 296 | 414 | 871 | 327 | 270 | 280 | ||||||||||||||||||||||||||||||||||
| Total electric revenues(b) | $ | 8,353 | $ | 3,302 | $ | 3,400 | $ | 6,254 | $ | 3,014 | $ | 1,606 | $ | 1,640 | |||||||||||||||||||||||||||
| Natural gas revenues | |||||||||||||||||||||||||||||||||||||||||
| Residential | $ | — | $ | 445 | $ | 625 | $ | 108 | $ | — | $ | 108 | $ | — | |||||||||||||||||||||||||||
| Small commercial & industrial | — | 157 | 110 | 43 | — | 43 | — | ||||||||||||||||||||||||||||||||||
| Large commercial & industrial | — | — | 204 | 5 | — | 5 | — | ||||||||||||||||||||||||||||||||||
| Transportation | — | 28 | — | 17 | — | 17 | — | ||||||||||||||||||||||||||||||||||
| Other(c) | — | 16 | 18 | 7 | — | 7 | — | ||||||||||||||||||||||||||||||||||
| Total natural gas revenues(d) | $ | — | $ | 646 | $ | 957 | $ | 180 | $ | — | $ | 180 | $ | — | |||||||||||||||||||||||||||
| Total revenues from contracts with customers | $ | 8,353 | $ | 3,948 | $ | 4,357 | $ | 6,434 | $ | 3,014 | $ | 1,786 | $ | 1,640 | |||||||||||||||||||||||||||
| Other revenues | |||||||||||||||||||||||||||||||||||||||||
| Revenues from alternative revenue programs | $ | (151) | $ | 6 | $ | 52 | $ | 1 | $ | 15 | $ | (2) | $ | (12) | |||||||||||||||||||||||||||
| Other electric revenues(e) | 17 | 17 | 14 | 13 | 10 | 3 | — | ||||||||||||||||||||||||||||||||||
| Other natural gas revenues(e) | — | 2 | 3 | — | — | — | — | ||||||||||||||||||||||||||||||||||
| Total other revenues | $ | (134) | $ | 25 | $ | 69 | $ | 14 | $ | 25 | $ | 1 | $ | (12) | |||||||||||||||||||||||||||
| Total revenues for reportable segments | $ | 8,219 | $ | 3,973 | $ | 4,426 | $ | 6,448 | $ | 3,039 | $ | 1,787 | $ | 1,628 |
| 2023 | |||||||||||||||||||||||||||||||||||||||||
| Revenues from contracts with customers | ComEd | PECO | BGE | PHI | Pepco | DPL | ACE | ||||||||||||||||||||||||||||||||||
| Electric revenues | |||||||||||||||||||||||||||||||||||||||||
| Residential | $ | 3,565 | $ | 2,090 | $ | 1,765 | $ | 2,845 | $ | 1,236 | $ | 827 | $ | 782 | |||||||||||||||||||||||||||
| Small commercial & industrial | 1,857 | 526 | 331 | 651 | 176 | 246 | 229 | ||||||||||||||||||||||||||||||||||
| Large commercial & industrial | 824 | 249 | 528 | 1,420 | 1,087 | 126 | 207 | ||||||||||||||||||||||||||||||||||
| Public authorities & electric railroads | 51 | 30 | 29 | 67 | 34 | 16 | 17 | ||||||||||||||||||||||||||||||||||
| Other(a) | 965 | 298 | 402 | 760 | 258 | 250 | 260 | ||||||||||||||||||||||||||||||||||
| Total electric revenues(b) | $ | 7,262 | $ | 3,193 | $ | 3,055 | $ | 5,743 | $ | 2,791 | $ | 1,465 | $ | 1,495 | |||||||||||||||||||||||||||
| Natural gas revenues | |||||||||||||||||||||||||||||||||||||||||
| Residential | $ | — | $ | 473 | $ | 568 | $ | 122 | $ | — | $ | 122 | $ | — | |||||||||||||||||||||||||||
| Small commercial & industrial | — | 172 | 100 | 53 | — | 53 | — | ||||||||||||||||||||||||||||||||||
| Large commercial & industrial | — | 1 | 161 | 4 | — | 4 | — | ||||||||||||||||||||||||||||||||||
| Transportation | — | 27 | — | 16 | — | 16 | — | ||||||||||||||||||||||||||||||||||
| Other(c) | — | 17 | 37 | 10 | — | 10 | — | ||||||||||||||||||||||||||||||||||
| Total natural gas revenues(d) | $ | — | $ | 690 | $ | 866 | $ | 205 | $ | — | $ | 205 | $ | — | |||||||||||||||||||||||||||
| Total revenues from contracts with customers | $ | 7,262 | $ | 3,883 | $ | 3,921 | $ | 5,948 | $ | 2,791 | $ | 1,670 | $ | 1,495 | |||||||||||||||||||||||||||
| Other revenues | |||||||||||||||||||||||||||||||||||||||||
| Revenues from alternative revenue programs | $ | 556 | $ | (7) | $ | 84 | $ | 64 | $ | 22 | $ | 15 | $ | 27 | |||||||||||||||||||||||||||
| Other electric revenues(e) | 26 | 16 | 16 | 14 | 11 | 3 | — | ||||||||||||||||||||||||||||||||||
| Other natural gas revenues(e) | — | 2 | 6 | — | — | — | — | ||||||||||||||||||||||||||||||||||
| Total other revenues | $ | 582 | $ | 11 | $ | 106 | $ | 78 | $ | 33 | $ | 18 | $ | 27 | |||||||||||||||||||||||||||
| Total revenues for reportable segments | $ | 7,844 | $ | 3,894 | $ | 4,027 | $ | 6,026 | $ | 2,824 | $ | 1,688 | $ | 1,522 |
Combined Notes to Consolidated Financial Statements
(Dollars in millions, except per share data unless otherwise noted)
Note 4 — Segment Information
(a)Includes transmission revenue from PJM, wholesale electric revenue and mutual assistance revenue.
(b)Includes operating revenues from affiliates in 2025, 2024, and 2023 respectively of:
-
$21 million, $8 million, and $16 million at ComEd
-
$9 million, $7 million, and $7 million at PECO
-
$6 million, $7 million, and $6 million at BGE
-
$10 million, $10 million, and $9 million at PHI
-
$6 million, $7 million, and $9 million at Pepco
-
$9 million, $7 million, and $8 million at DPL
-
$4 million, $2 million, and $2 million at ACE
(c)Includes revenues from off-system natural gas sales.
(d)Includes operating revenues from affiliates in 2025, 2024, and 2023 respectively of:
-
$3 million, $3 million, and $2 million at PECO
-
$2 million, $3 million, and $3 million at BGE
(e)Includes late payment charge revenues.
5. Accounts Receivable (All Registrants)
Allowance for Credit Losses on Accounts Receivable
The following tables present the rollforward of Allowance for Credit Losses on Customer Accounts Receivable.
| Year Ended December 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||
| Exelon | ComEd | PECO | BGE | PHI | Pepco | DPL | ACE | ||||||||||||||||||||||||||||||||||||||||
| Balance at December 31, 2024 | $ | 406 | $ | 109 | $ | 133 | $ | 56 | $ | 108 | $ | 59 | $ | 17 | $ | 32 | |||||||||||||||||||||||||||||||
| Plus: Current period provision for expected credit losses(a)(b)(c) | 289 | 90 | 91 | 43 | 65 | 41 | 16 | 8 | |||||||||||||||||||||||||||||||||||||||
| Less: Write-offs(d)(e), net of recoveries(f)(g) | 260 | 84 | 87 | 31 | 58 | 31 | 14 | 13 | |||||||||||||||||||||||||||||||||||||||
| Balance at December 31, 2025 | $ | 435 | $ | 115 | $ | 137 | $ | 68 | $ | 115 | $ | 69 | $ | 19 | $ | 27 | |||||||||||||||||||||||||||||||
| Year Ended December 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||
| Exelon | ComEd | PECO | BGE | PHI | Pepco | DPL | ACE | ||||||||||||||||||||||||||||||||||||||||
| Balance at December 31, 2023 | $ | 317 | $ | 69 | $ | 95 | $ | 46 | $ | 107 | $ | 52 | $ | 19 | $ | 36 | |||||||||||||||||||||||||||||||
| Plus: Current period provision for expected credit losses | 248 | 78 | 72 | 37 | 61 | 39 | 10 | 12 | |||||||||||||||||||||||||||||||||||||||
| Less: Write-offs, net of recoveries | 159 | 38 | 34 | 27 | 60 | 32 | 12 | 16 | |||||||||||||||||||||||||||||||||||||||
| Balance at December 31, 2024 | $ | 406 | $ | 109 | $ | 133 | $ | 56 | $ | 108 | $ | 59 | $ | 17 | $ | 32 | |||||||||||||||||||||||||||||||
(a)For ComEd, the increase is primarily a result of increased aging of receivables.
(b)For PECO, BGE, and DPL, the increase is primarily a result of increased receivable balances.
(c)For ACE, the decrease is primarily a result of decreased aging of receivables.
(d)For ComEd, PECO, and DPL, the increase is primarily a result of increased disconnection activities.
(e)For ACE, the decrease is primarily a result of decreased disconnection activities.
(f)Recoveries were not material to ComEd, BGE, Pepco, DPL, and ACE.
(g)For PECO, the increase in recoveries collected is primarily a result of increased customer repayments.
Combined Notes to Consolidated Financial Statements
(Dollars in millions, except per share data unless otherwise noted)
Note 5 — Accounts Receivable
The following tables present the rollforward of Allowance for Credit Losses on Other Accounts Receivable.
| Year Ended December 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||
| Exelon | ComEd | PECO | BGE | PHI | Pepco | DPL | ACE | ||||||||||||||||||||||||||||||||||||||||
| Balance at December 31, 2024 | $ | 107 | $ | 34 | $ | 18 | $ | 6 | $ | 49 | $ | 27 | $ | 9 | $ | 13 | |||||||||||||||||||||||||||||||
| Plus: Current period provision (benefit) for expected credit losses(a)(b) | 24 | 10 | 14 | (2) | 2 | (1) | 1 | 2 | |||||||||||||||||||||||||||||||||||||||
| Less: Write-offs(c)(d), net of recoveries(e) | 37 | 21 | 14 | — | 2 | — | — | 2 | |||||||||||||||||||||||||||||||||||||||
| Balance at December 31, 2025 | $ | 94 | $ | 23 | $ | 18 | $ | 4 | $ | 49 | $ | 26 | $ | 10 | $ | 13 | |||||||||||||||||||||||||||||||
| Year Ended December 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||
| Exelon | ComEd | PECO | BGE | PHI | Pepco | DPL | ACE | ||||||||||||||||||||||||||||||||||||||||
| Balance at December 31, 2023 | $ | 82 | $ | 17 | $ | 8 | $ | 7 | $ | 50 | $ | 28 | $ | 8 | $ | 14 | |||||||||||||||||||||||||||||||
| Plus: Current period provision (benefit) for expected credit losses | 45 | 21 | 15 | 6 | 3 | (1) | 1 | 3 | |||||||||||||||||||||||||||||||||||||||
| Less: Write-offs, net of recoveries | 20 | 4 | 5 | 7 | 4 | — | — | 4 | |||||||||||||||||||||||||||||||||||||||
| Balance at December 31, 2024 | $ | 107 | $ | 34 | $ | 18 | $ | 6 | $ | 49 | $ | 27 | $ | 9 | $ | 13 |
(a)For ComEd, the decrease is primarily a result of decreased aging of receivables.
(b)For BGE, the decrease is primarily a result of decreased receivable balances.
(c)For ComEd and PECO, the increase is primarily a result of increased disconnection activities.
(d)For BGE and ACE, the decrease is primarily a result of decreased disconnection activities.
(e)Recoveries were not material to the Registrants.
Unbilled Customer Revenue
The following table provides additional information about unbilled customer revenues recorded in the Registrants' Consolidated Balance Sheets as of December 31, 2025 and 2024.
| Unbilled customer revenues**(a)** | |||||||||||||||||||||||||||||||||||||||||||||||
| Exelon | ComEd | PECO | BGE | PHI | Pepco | DPL | ACE | ||||||||||||||||||||||||||||||||||||||||
| December 31, 2025 | $ | 1,231 | $ | 301 | $ | 278 | $ | 325 | $ | 327 | $ | 155 | $ | 100 | $ | 72 | |||||||||||||||||||||||||||||||
| December 31, 2024 | 1,114 | 335 | 254 | 257 | 268 | 121 | 76 | 71 |
(a)Unbilled customer revenues are classified in Customer accounts receivable, net in the Registrants' Consolidated Balance Sheets.
Other Purchases of Customer and Other Accounts Receivables
For the twelve months ended December 31, 2025 and 2024, the Utility Registrants were required, under separate legislation and regulations in Illinois, Pennsylvania, Maryland, District of Columbia, Delaware, and New Jersey, to purchase certain receivables from alternative retail electric and, as applicable, natural gas suppliers that participated in the utilities' consolidated billing. The following table presents the total receivables purchased.
| Total receivables purchased | |||||||||||||||||||||||||||||||||||||||||||||||
| Exelon | ComEd | PECO | BGE | PHI | Pepco | DPL | ACE | ||||||||||||||||||||||||||||||||||||||||
| Year ended December 31, 2025 | $ | 4,341 | $ | 1,066 | $ | 1,257 | $ | 700 | $ | 1,318 | $ | 823 | $ | 263 | $ | 232 | |||||||||||||||||||||||||||||||
| Year ended December 31, 2024 | 4,128 | 964 | 1,111 | 778 | 1,275 | 799 | 252 | 224 |
Combined Notes to Consolidated Financial Statements
(Dollars in millions, except per share data unless otherwise noted)
Note 6 — Property, Plant, and Equipment
6. Property, Plant, and Equipment (All Registrants)
The following tables present a summary of property, plant, and equipment by asset category at December 31, 2025 and 2024:
| Asset Category | Exelon | ComEd | PECO | BGE | PHI | Pepco | DPL | ACE | |||||||||||||||||||||||||||||||||||||||
| December 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||
| Electric—transmission and distribution | $ | 84,282 | $ | 38,370 | $ | 13,314 | $ | 11,687 | $ | 22,614 | $ | 14,420 | $ | 6,423 | $ | 6,247 | |||||||||||||||||||||||||||||||
| Gas—transportation and distribution | 10,499 | — | 4,649 | 5,190 | 940 | — | 1,094 | — | |||||||||||||||||||||||||||||||||||||||
| Common—electric and gas(a) | 2,954 | — | 1,135 | 1,430 | 460 | — | 251 | — | |||||||||||||||||||||||||||||||||||||||
| Construction work in progress | 5,755 | 1,997 | 836 | 1,236 | 1,629 | 1,087 | 290 | 238 | |||||||||||||||||||||||||||||||||||||||
| Other property, plant, and equipment(b) | 908 | 179 | 119 | 76 | 84 | 24 | 38 | 27 | |||||||||||||||||||||||||||||||||||||||
| Total property, plant, and equipment | 104,398 | 40,546 | 20,053 | 19,619 | 25,727 | 15,531 | 8,096 | 6,512 | |||||||||||||||||||||||||||||||||||||||
| Less: accumulated depreciation | 20,080 | 8,291 | 4,131 | 5,234 | 4,350 | 4,784 | 2,241 | 1,956 | |||||||||||||||||||||||||||||||||||||||
| Property, plant, and equipment, net | $ | 84,318 | $ | 32,255 | $ | 15,922 | $ | 14,385 | $ | 21,377 | $ | 10,747 | $ | 5,855 | $ | 4,556 | |||||||||||||||||||||||||||||||
| December 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||
| Electric—transmission and distribution | $ | 79,283 | $ | 36,493 | $ | 12,234 | $ | 11,131 | $ | 21,130 | $ | 13,593 | $ | 6,086 | $ | 5,947 | |||||||||||||||||||||||||||||||
| Gas—transportation and distribution | 9,599 | — | 4,247 | 4,796 | 821 | — | 976 | — | |||||||||||||||||||||||||||||||||||||||
| Common—electric and gas | 2,630 | — | 1,064 | 1,385 | 272 | — | 241 | — | |||||||||||||||||||||||||||||||||||||||
| Construction work in progress | 4,306 | 1,219 | 813 | 779 | 1,472 | 1,002 | 275 | 187 | |||||||||||||||||||||||||||||||||||||||
| Other property, plant and equipment(a) | 809 | 118 | 76 | 48 | 86 | 24 | 37 | 30 | |||||||||||||||||||||||||||||||||||||||
| Total property, plant and equipment | 96,627 | 37,830 | 18,434 | 18,139 | 23,781 | 14,619 | 7,615 | 6,164 | |||||||||||||||||||||||||||||||||||||||
| Less: accumulated depreciation | 18,445 | 7,619 | 4,042 | 5,005 | 3,728 | 4,522 | 2,075 | 1,798 | |||||||||||||||||||||||||||||||||||||||
| Property, plant, and equipment, net | $ | 78,182 | $ | 30,211 | $ | 14,392 | $ | 13,134 | $ | 20,053 | $ | 10,097 | $ | 5,540 | $ | 4,366 |
(a)On April 15, 2025, PHI purchased an office building and land in the District of Columbia for $177 million which it had been leasing. The lease was terminated on April 15, 2025, in conjunction with the purchase (See Note 9 — Leases for additional information).
(b)Primarily composed of land and non-utility property.
Combined Notes to Consolidated Financial Statements
(Dollars in millions, except per share data unless otherwise noted)
Note 6 — Property, Plant, and Equipment
The following table presents the average service life for each asset category in number of years:
| Average Service Life (years) | |||||||||||||||||||||||||||||||||||||||||||||||
| Asset Category | Exelon | ComEd | PECO | BGE | PHI | Pepco | DPL | ACE | |||||||||||||||||||||||||||||||||||||||
| Electric - transmission and distribution | 5-80 | 5-80 | 5-70 | 5-80 | 5-75 | 5-75 | 5-75 | 5-75 | |||||||||||||||||||||||||||||||||||||||
| Gas - transportation and distribution | 5-80 | N/A | 5-80 | 5-80 | 5-75 | N/A | 5-75 | N/A | |||||||||||||||||||||||||||||||||||||||
| Common - electric and gas | 4-75 | N/A | 5-53 | 4-45 | 5-75 | N/A | 5-75 | N/A | |||||||||||||||||||||||||||||||||||||||
| Other property, plant, and equipment | 4-61 | 28-50 | 50 | 20-50 | 10-43 | 10-33 | 10-43 | 10-43 |
The following table presents the annual depreciation rates for each asset category.
| Annual Depreciation Rates | |||||||||||||||||||||||||||||||||||||||||||||||
| Exelon | ComEd | PECO | BGE | PHI | Pepco | DPL | ACE | ||||||||||||||||||||||||||||||||||||||||
| December 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||
| Electric—transmission and distribution | 2.85% | 3.07% | 2.33% | 2.56% | 2.89% | 2.51% | 3.09% | 3.62% | |||||||||||||||||||||||||||||||||||||||
| Gas—transportation and distribution | 2.08% | N/A | 1.94% | 2.37% | 1.29% | N/A | 1.29% | N/A | |||||||||||||||||||||||||||||||||||||||
| Common—electric and gas | 6.14% | N/A | 6.37% | 7.08% | 2.88% | N/A | 5.53% | N/A | |||||||||||||||||||||||||||||||||||||||
| December 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||
| Electric—transmission and distribution | 2.83% | 3.06% | 2.30% | 2.55% | 2.87% | 2.49% | 2.99% | 3.41% | |||||||||||||||||||||||||||||||||||||||
| Gas—transportation and distribution | 2.12% | N/A | 1.96% | 2.42% | 1.38% | N/A | 1.38% | N/A | |||||||||||||||||||||||||||||||||||||||
| Common—electric and gas | 7.00% | N/A | 6.73% | 7.81% | 4.82% | N/A | 6.14% | N/A | |||||||||||||||||||||||||||||||||||||||
| December 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||
| Electric—transmission and distribution | 2.90% | 3.02% | 2.30% | 2.89% | 3.03% | 2.51% | 3.29% | 3.66% | |||||||||||||||||||||||||||||||||||||||
| Gas—transportation and distribution | 2.15% | N/A | 1.85% | 2.56% | 1.44% | N/A | 1.44% | N/A | |||||||||||||||||||||||||||||||||||||||
| Common—electric and gas | 7.77% | N/A | 6.87% | 8.68% | 7.18% | N/A | 8.79% | N/A |
AFUDC
The following table summarizes credits to AFUDC by year:
| For the Years Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Exelon | $ | 275 | $ | 251 | $ | 256 | |||||||||||
| ComEd | 94 | 75 | 72 | ||||||||||||||
| PECO | 54 | 48 | 46 | ||||||||||||||
| BGE | 58 | 39 | 25 | ||||||||||||||
| PHI | 69 | 89 | 113 | ||||||||||||||
| Pepco | 49 | 62 | 85 | ||||||||||||||
| DPL | 11 | 19 | 16 | ||||||||||||||
| ACE | 8 | 8 | 12 |
See Note 1 — Significant Accounting Policies for additional information regarding property, plant and equipment policies. See Note 14 — Debt and Credit Agreements for additional information regarding Exelon’s, ComEd’s, PECO's, Pepco's, DPL's, and ACE’s property, plant and equipment subject to mortgage liens.
Combined Notes to Consolidated Financial Statements
(Dollars in millions, except per share data unless otherwise noted)
Note 7 — Jointly Owned Electric Utility Plant
7. Jointly Owned Electric Utility Plant (Exelon, PECO, PHI, DPL, and ACE)
PECO's, DPL's, and ACE's material undivided ownership interests in transmission facilities jointly owned with non-affiliated utilities as of December 31, 2025 and 2024 were as follows:
| Transmission | |||||
| NJ/DE**(a)** | |||||
| Operator | PSEG/DPL | ||||
| Ownership interest | various | ||||
| Exelon’s share at December 31, 2025: | |||||
| Plant in service | $ | 119 | |||
| Accumulated depreciation | 55 | ||||
| Construction work in progress | 16 | ||||
| Exelon’s share at December 31, 2024: | |||||
| Plant in service | $ | 105 | |||
| Accumulated depreciation | 57 | ||||
| Construction work in progress | 4 |
(a)PECO, DPL, and ACE own a 42.55%, 1%, and 13.9% share, respectively, in 151.3 miles of 500kV lines located in New Jersey and in the Salem substation. PECO, DPL, and ACE also own a 42.55%, 7.45%, and 7.45% share, respectively, in 2.5 miles of 500kV line located over the Delaware River. ACE also has a 21.78% share in a 500kV New Freedom Switching substation.
Certain facilities are fully owned by Exelon through its 100% ownership in PECO, DPL, and ACE. These facilities are operated by Exelon Registrants. PECO's, DPL's, and ACE's material undivided ownership interests in Exelon owned facilities as of December 31, 2025 and 2024 were as follows:
| PECO | PHI | DPL | ACE | ||||||||||||||||||||
| Ownership interest | 56 | % | 44 | % | 27 | % | 17 | % | |||||||||||||||
| Registrant's share at December 31, 2025: | |||||||||||||||||||||||
| Plant in service | $ | 82 | $ | 73 | $ | 45 | $ | 28 | |||||||||||||||
| Accumulated depreciation | 4 | 6 | 4 | 2 | |||||||||||||||||||
| Construction work in progress | — | — | — | — | |||||||||||||||||||
| Registrant's share at December 31, 2024: | |||||||||||||||||||||||
| Plant in service | $ | 84 | $ | 72 | $ | 44 | $ | 28 | |||||||||||||||
| Accumulated depreciation | 2 | 3 | 3 | — | |||||||||||||||||||
| Construction work in progress | — | — | — | — |
PECO's, DPL's, and ACE's undivided ownership interests presented in the tables above are financed with their funds and all operations are accounted for as if such participating interests were wholly owned facilities. PECO's, DPL's, and ACE's share of direct expenses of the jointly owned plants are included in Operating and maintenance expenses in Exelon's, PECO's, PHI's, DPL's, and ACE's Consolidated Statements of Operations and Comprehensive Income.
Combined Notes to Consolidated Financial Statements
(Dollars in millions, except per share data unless otherwise noted)
Note 8 — Asset Retirement Obligations
8. Asset Retirement Obligations (All Registrants)
The Registrants have AROs primarily associated with the abatement and disposal of equipment and buildings contaminated with asbestos and PCBs. See Note 1 — Significant Accounting Policies for additional information on the Registrants’ accounting policy for AROs.
The following table provides a rollforward of the AROs reflected in the Registrants’ Consolidated Balance Sheets from December 31, 2023 to December 31, 2025:
| Exelon | ComEd | PECO | BGE | PHI | Pepco | DPL | ACE | ||||||||||||||||||||||||||||||||||||||||
| AROs at December 31, 2023 | $ | 269 | $ | 150 | $ | 27 | $ | 32 | $ | 56 | $ | 37 | $ | 13 | $ | 6 | |||||||||||||||||||||||||||||||
| Revisions in estimates of cash flows | 26 | 12 | 1 | 3 | 10 | 10 | — | — | |||||||||||||||||||||||||||||||||||||||
| Accretion expense(a) | 11 | 7 | 1 | 1 | 2 | 2 | — | — | |||||||||||||||||||||||||||||||||||||||
| Payments | (2) | (1) | (1) | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
| AROs at December 31, 2024 | $ | 304 | $ | 168 | $ | 28 | $ | 36 | $ | 68 | $ | 49 | $ | 13 | $ | 6 | |||||||||||||||||||||||||||||||
| Revisions in estimates of cash flows | 15 | 19 | — | (1) | (3) | (1) | (1) | (1) | |||||||||||||||||||||||||||||||||||||||
| Accretion expense(a) | 13 | 8 | 1 | 1 | 3 | 3 | — | — | |||||||||||||||||||||||||||||||||||||||
| Payments | (8) | (1) | (2) | — | (5) | (5) | — | — | |||||||||||||||||||||||||||||||||||||||
| AROs at December 31, 2025 | $ | 324 | $ | 194 | $ | 27 | $ | 36 | $ | 63 | $ | 46 | $ | 12 | $ | 5 |
(a)For ComEd, PECO, BGE, DPL and ACE, the majority of the accretion is recorded as an increase to a regulatory asset due to the associated regulatory treatment.
9. Leases (All Registrants)
Lessee
The Registrants have operating and finance leases for which they are the lessees. The following tables outline the significant types of leases at each of the Registrants and other terms and conditions of the lease agreements as of December 31, 2025. Exelon, ComEd, PECO, and BGE did not have material finance leases in 2025, 2024, or 2023.
| Exelon | ComEd | PECO | BGE | PHI | Pepco | DPL | ACE | ||||||||||||||||||||||||||||||||||||||||
| Real estate | ● | ● | ● | ● | ● | ● | ● | ● | |||||||||||||||||||||||||||||||||||||||
| Vehicles and equipment | ● | ● | ● | ● | ● | ● |
| (in years) | Exelon | ComEd | PECO | BGE | PHI | Pepco | DPL | ACE | |||||||||||||||||||||||||||||||||||||||
| Remaining lease terms | 1-80 | 1-27 | 1-9 | 1-80 | 1-7 | 1-7 | 1-7 | 1-7 | |||||||||||||||||||||||||||||||||||||||
| Options to extend the term | 3-30 | N/A | N/A | 3-5 | 3-30 | 5 | 3-30 | N/A | |||||||||||||||||||||||||||||||||||||||
| Options to terminate within | 2-7 | N/A | N/A | 2 | N/A | N/A | N/A | N/A |
Combined Notes to Consolidated Financial Statements
(Dollars in millions, except per share data unless otherwise noted)
Note 9 — Leases
The components of operating lease costs were as follows:
| Exelon | ComEd | PECO | BGE | PHI | Pepco | DPL | ACE | ||||||||||||||||||||||||||||||||||||||||
| For the year ended December 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||
| Operating lease costs | $ | 47 | $ | — | $ | — | $ | 7 | $ | 31 | $ | 12 | $ | 9 | $ | 6 | |||||||||||||||||||||||||||||||
| Variable lease costs | 7 | — | — | — | 1 | — | 1 | — | |||||||||||||||||||||||||||||||||||||||
| Total lease costs**(a)** | $ | 54 | $ | — | $ | — | $ | 7 | $ | 32 | $ | 12 | $ | 10 | $ | 6 | |||||||||||||||||||||||||||||||
| For the year ended December 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||
| Operating lease costs | $ | 57 | $ | — | $ | — | $ | 8 | $ | 41 | $ | 10 | $ | 10 | $ | 5 | |||||||||||||||||||||||||||||||
| Variable lease costs | 9 | — | — | — | 3 | 1 | 1 | 1 | |||||||||||||||||||||||||||||||||||||||
| Total lease costs**(a)** | $ | 66 | $ | — | $ | — | $ | 8 | $ | 44 | $ | 11 | $ | 11 | $ | 6 | |||||||||||||||||||||||||||||||
| For the year ended December 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||
| Operating lease costs | $ | 58 | $ | 1 | $ | — | $ | 5 | $ | 43 | $ | 11 | $ | 11 | $ | 6 | |||||||||||||||||||||||||||||||
| Variable lease costs | 9 | 1 | — | — | 3 | 1 | 1 | 1 | |||||||||||||||||||||||||||||||||||||||
| Total lease costs**(a)** | $ | 67 | $ | 2 | $ | — | $ | 5 | $ | 46 | $ | 12 | $ | 12 | $ | 7 |
(a)Excludes sublease income recorded at Exelon, PHI, and DPL of $4 million for the years ended December 31, 2025, 2024, and 2023.
The components of financing lease costs were as follows:
| PHI | Pepco | DPL | ACE | ||||||||||||||||||||||||||||||||||||||||||||
| For the year ended December 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||
| Amortization of ROU asset | $ | 21 | $ | 7 | $ | 8 | $ | 6 | |||||||||||||||||||||||||||||||||||||||
| Interest on lease liabilities | 6 | 2 | 2 | 2 | |||||||||||||||||||||||||||||||||||||||||||
| Total finance lease cost | $ | 27 | $ | 9 | $ | 10 | $ | 8 | |||||||||||||||||||||||||||||||||||||||
| For the year ended December 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||
| Amortization of ROU asset | $ | 18 | $ | 7 | $ | 7 | $ | 4 | |||||||||||||||||||||||||||||||||||||||
| Interest on lease liabilities | 6 | 2 | 2 | 2 | |||||||||||||||||||||||||||||||||||||||||||
| Total finance lease cost | $ | 24 | $ | 9 | $ | 9 | $ | 6 | |||||||||||||||||||||||||||||||||||||||
| For the year ended December 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||
| Amortization of ROU asset | $ | 16 | $ | 6 | $ | 6 | $ | 4 | |||||||||||||||||||||||||||||||||||||||
| Interest on lease liabilities | 6 | 2 | 2 | 1 | |||||||||||||||||||||||||||||||||||||||||||
| Total finance lease cost | $ | 22 | $ | 8 | $ | 8 | $ | 5 |
Combined Notes to Consolidated Financial Statements
(Dollars in millions, except per share data unless otherwise noted)
Note 9 — Leases
The following tables provide additional information regarding the presentation of operating and finance lease ROU assets and lease liabilities within the Registrants’ Consolidated Balance Sheets:
| Operating Leases | |||||||||||||||||||||||||||||||||||||||||||||||
| Exelon | ComEd | PECO | BGE | PHI**(a)** | Pepco | DPL | ACE | ||||||||||||||||||||||||||||||||||||||||
| At December 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||
| Operating lease ROU assets | |||||||||||||||||||||||||||||||||||||||||||||||
| Other deferred debits and other assets | $ | 139 | $ | — | $ | 1 | $ | 17 | $ | 54 | $ | 22 | $ | 23 | $ | 5 | |||||||||||||||||||||||||||||||
| Operating lease liabilities | |||||||||||||||||||||||||||||||||||||||||||||||
| Other current liabilities | $ | 19 | $ | — | $ | — | $ | 3 | $ | 10 | $ | 4 | $ | 5 | $ | 1 | |||||||||||||||||||||||||||||||
| Other deferred credits and other liabilities | 146 | — | 1 | 13 | 55 | 22 | 28 | 5 | |||||||||||||||||||||||||||||||||||||||
| Total operating lease liabilities | $ | 165 | $ | — | $ | 1 | $ | 16 | $ | 65 | $ | 26 | $ | 33 | $ | 6 | |||||||||||||||||||||||||||||||
| At December 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||
| Operating lease ROU assets | |||||||||||||||||||||||||||||||||||||||||||||||
| Other deferred debits and other assets | $ | 224 | $ | — | $ | — | $ | 24 | $ | 127 | $ | 26 | $ | 27 | $ | 7 | |||||||||||||||||||||||||||||||
| Operating lease liabilities | |||||||||||||||||||||||||||||||||||||||||||||||
| Other current liabilities | $ | 38 | $ | — | $ | — | $ | 3 | $ | 30 | $ | 5 | $ | 6 | $ | 3 | |||||||||||||||||||||||||||||||
| Other deferred credits and other liabilities | 217 | — | — | 16 | 116 | 25 | 32 | 5 | |||||||||||||||||||||||||||||||||||||||
| Total operating lease liabilities | $ | 255 | $ | — | $ | — | $ | 19 | $ | 146 | $ | 30 | $ | 38 | $ | 8 |
(a)On April 15, 2025, PHI purchased an office building and land in the District of Columbia for $177 million which it had been leasing. PHI's operating lease liability and operating lease ROU asset amounts for the office building and land were $64 million and $47 million, respectively, at the time of the purchase. In conjunction with the purchase, the lease has been terminated and the difference of $17 million between the operating lease liability and operating lease ROU asset were recorded as an adjustment to the carrying value of the purchased assets.
| Finance Leases | |||||||||||||||||||||||||||||||||||||||||||||||
| PHI | Pepco | DPL | ACE | ||||||||||||||||||||||||||||||||||||||||||||
| At December 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||
| Finance lease ROU assets | |||||||||||||||||||||||||||||||||||||||||||||||
| Plant, property and equipment, net | $ | 68 | $ | 23 | $ | 25 | $ | 20 | |||||||||||||||||||||||||||||||||||||||
| Finance lease liabilities | |||||||||||||||||||||||||||||||||||||||||||||||
| Long-term debt due within one year | $ | 19 | $ | 7 | $ | 7 | $ | 5 | |||||||||||||||||||||||||||||||||||||||
| Long-term debt | 53 | 18 | 20 | 15 | |||||||||||||||||||||||||||||||||||||||||||
| Total finance lease liabilities | $ | 72 | $ | 25 | $ | 27 | $ | 20 | |||||||||||||||||||||||||||||||||||||||
| At December 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||
| Finance lease ROU assets | |||||||||||||||||||||||||||||||||||||||||||||||
| Plant, property and equipment, net | $ | 72 | $ | 26 | $ | 26 | $ | 20 | |||||||||||||||||||||||||||||||||||||||
| Finance lease liabilities | |||||||||||||||||||||||||||||||||||||||||||||||
| Long-term debt due within one year | $ | 17 | $ | 6 | $ | 7 | $ | 4 | |||||||||||||||||||||||||||||||||||||||
| Long-term debt | 58 | 21 | 21 | 16 | |||||||||||||||||||||||||||||||||||||||||||
| Total finance lease liabilities | $ | 75 | $ | 27 | $ | 28 | $ | 20 |
Combined Notes to Consolidated Financial Statements
(Dollars in millions, except per share data unless otherwise noted)
Note 9 — Leases
Future minimum lease payments for operating and finance leases as of December 31, 2025 were as follows:
| Operating Leases | |||||||||||||||||||||||||||||||||||||||||||||||
| Year | Exelon | ComEd | PECO | BGE | PHI | Pepco | DPL | ACE | |||||||||||||||||||||||||||||||||||||||
| 2026 | $ | 26 | $ | — | $ | 1 | $ | 4 | $ | 13 | $ | 5 | $ | 6 | $ | 2 | |||||||||||||||||||||||||||||||
| 2027 | 24 | — | — | 2 | 12 | 4 | 7 | 2 | |||||||||||||||||||||||||||||||||||||||
| 2028 | 24 | — | — | 3 | 11 | 4 | 6 | 1 | |||||||||||||||||||||||||||||||||||||||
| 2029 | 24 | — | — | 3 | 11 | 4 | 6 | 1 | |||||||||||||||||||||||||||||||||||||||
| 2030 | 24 | — | — | 3 | 11 | 4 | 6 | 1 | |||||||||||||||||||||||||||||||||||||||
| Remaining years | 91 | — | — | 18 | 21 | 9 | 12 | — | |||||||||||||||||||||||||||||||||||||||
| Total | 213 | — | 1 | 33 | 79 | 30 | 43 | 7 | |||||||||||||||||||||||||||||||||||||||
| Interest | 48 | — | — | 17 | 14 | 4 | 10 | 1 | |||||||||||||||||||||||||||||||||||||||
| Total operating lease liabilities | $ | 165 | $ | — | $ | 1 | $ | 16 | $ | 65 | $ | 26 | $ | 33 | $ | 6 |
| Finance Leases | |||||||||||||||||||||||||||||||||||||||||||||||
| Year | PHI | Pepco | DPL | ACE | |||||||||||||||||||||||||||||||||||||||||||
| 2026 | $ | 21 | $ | 8 | $ | 8 | $ | 6 | |||||||||||||||||||||||||||||||||||||||
| 2027 | 19 | 7 | 7 | 5 | |||||||||||||||||||||||||||||||||||||||||||
| 2028 | 15 | 5 | 6 | 4 | |||||||||||||||||||||||||||||||||||||||||||
| 2029 | 12 | 4 | 5 | 2 | |||||||||||||||||||||||||||||||||||||||||||
| 2030 | 7 | 2 | 2 | 2 | |||||||||||||||||||||||||||||||||||||||||||
| Remaining years | 6 | 1 | 2 | 3 | |||||||||||||||||||||||||||||||||||||||||||
| Total | 80 | 27 | 30 | 22 | |||||||||||||||||||||||||||||||||||||||||||
| Interest | 8 | 2 | 3 | 2 | |||||||||||||||||||||||||||||||||||||||||||
| Total finance lease liabilities | $ | 72 | $ | 25 | $ | 27 | $ | 20 |
The weighted average remaining lease terms, in years, for operating and finance leases were as follows:
| Operating Leases | |||||||||||||||||||||||||||||||||||||||||||||||
| Exelon | ComEd | PECO | BGE | PHI | Pepco | DPL | ACE | ||||||||||||||||||||||||||||||||||||||||
| At December 31, 2025 | 9.3 | — | 6.4 | 19.2 | 6.2 | 6.6 | 6.3 | 3.2 | |||||||||||||||||||||||||||||||||||||||
| At December 31, 2024 | 8.2 | 1.7 | 5.3 | 17.4 | 5.3 | 7.1 | 6.9 | 3.1 |
| Finance Leases | |||||||||||||||||||||||||||||||||||||||||||||||
| PHI | Pepco | DPL | ACE | ||||||||||||||||||||||||||||||||||||||||||||
| At December 31, 2025 | 4.1 | 4.0 | 3.9 | 4.4 | |||||||||||||||||||||||||||||||||||||||||||
| At December 31, 2024 | 4.4 | 4.4 | 4.2 | 4.5 |
The weighted average discount rates for operating and finance leases were as follows:
| Operating Leases | |||||||||||||||||||||||||||||||||||||||||||||||
| Exelon | ComEd | PECO | BGE | PHI | Pepco | DPL | ACE | ||||||||||||||||||||||||||||||||||||||||
| At December 31, 2025 | 3.9 | % | — | % | 4.4 | % | 5.0 | % | 4.2 | % | 4.2 | % | 4.2 | % | 4.2 | % | |||||||||||||||||||||||||||||||
| At December 31, 2024 | 4.0 | % | 0.8 | % | 2.8 | % | 5.0 | % | 4.2 | % | 4.1 | % | 4.1 | % | 3.9 | % |
| Finance Leases | |||||||||||||||||||||||||||||||||||||||||||||||
| PHI | Pepco | DPL | ACE | ||||||||||||||||||||||||||||||||||||||||||||
| At December 31, 2025 | 3.8 | % | 3.8 | % | 3.6 | % | 3.9 | % | |||||||||||||||||||||||||||||||||||||||
| At December 31, 2024 | 3.4 | % | 3.5 | % | 3.1 | % | 3.5 | % |
Combined Notes to Consolidated Financial Statements
(Dollars in millions, except per share data unless otherwise noted)
Note 9 — Leases
Cash paid for amounts included in the measurement of operating and finance lease liabilities were as follows:
| Operating Cash Flows from Operating Leases | |||||||||||||||||||||||||||||||||||||||||||||||
| Exelon | ComEd | PECO | BGE | PHI | Pepco | DPL | ACE | ||||||||||||||||||||||||||||||||||||||||
| For the year ended December 31, 2025 | $ | 35 | $ | — | $ | — | $ | 4 | $ | 22 | $ | 6 | $ | 7 | $ | 3 | |||||||||||||||||||||||||||||||
| For the year ended December 31, 2024 | 48 | — | — | 4 | 35 | 7 | 7 | 3 | |||||||||||||||||||||||||||||||||||||||
| For the year ended December 31, 2023 | 65 | 2 | — | 15 | 37 | 7 | 9 | 3 |
| Financing Cash Flows from Finance Leases | |||||||||||||||||||||||||||||||||||||||||||||||
| PHI | Pepco | DPL | ACE | ||||||||||||||||||||||||||||||||||||||||||||
| For the year ended December 31, 2025 | $ | 20 | $ | 7 | $ | 8 | $ | 5 | |||||||||||||||||||||||||||||||||||||||
| For the year ended December 31, 2024 | 17 | 6 | 7 | 4 | |||||||||||||||||||||||||||||||||||||||||||
| For the year ended December 31, 2023 | 15 | 5 | 6 | 4 |
ROU assets obtained in exchange for operating and finance lease obligations were as follows:
| Operating Leases | |||||||||||||||||||||||||||||||||||||||||||||||
| Exelon | ComEd | PECO | BGE | PHI | Pepco | DPL | ACE | ||||||||||||||||||||||||||||||||||||||||
| For the year ended December 31, 2025 | $ | 3 | $ | — | $ | — | $ | — | $ | 3 | $ | 1 | $ | 2 | $ | — | |||||||||||||||||||||||||||||||
| For the year ended December 31, 2024 | 8 | — | — | 1 | 5 | 1 | 2 | 2 | |||||||||||||||||||||||||||||||||||||||
| For the year ended December 31, 2023 | 35 | — | — | 32 | 3 | — | 1 | 2 |
| Finance Leases | |||||||||||||||||||||||||||||||||||||||||||||||
| PHI | Pepco | DPL | ACE | ||||||||||||||||||||||||||||||||||||||||||||
| For the year ended December 31, 2025 | $ | 15 | $ | 4 | $ | 6 | $ | 5 | |||||||||||||||||||||||||||||||||||||||
| For the year ended December 31, 2024 | 15 | 7 | 4 | 4 | |||||||||||||||||||||||||||||||||||||||||||
| For the year ended December 31, 2023 | 11 | 5 | 3 | 3 |
Lessor
The Registrants have operating leases for which they are the lessors. The following tables outline the significant types of leases at each of the Registrants and other terms and conditions of their lease agreements as of December 31, 2025. ACE did not have any operating leases for which they are the lessors for the years ended December 31, 2025, 2024, and 2023.
| Exelon | ComEd | PECO | BGE | PHI | Pepco | DPL | |||||||||||||||||||||||||||||||||||||||||
| Real estate | ● | ● | ● | ● | ● | ● | ● | ||||||||||||||||||||||||||||||||||||||||
| (in years) | Exelon | ComEd | PECO | BGE | PHI | Pepco | DPL | ||||||||||||||||||||||||||||||||||||||||
| Remaining lease terms | 1-77 | 1-11 | 1-77 | 17 | 1-7 | 1 | 6-7 | ||||||||||||||||||||||||||||||||||||||||
| Options to extend the term | 1-79 | 5-79 | 1-50 | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||
Combined Notes to Consolidated Financial Statements
(Dollars in millions, except per share data unless otherwise noted)
Note 9 — Leases
The components of lease income were as follows:
| Exelon | ComEd | PECO | BGE | PHI | Pepco | DPL | |||||||||||||||||||||||||||||||||||||||||
| For the year ended December 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||
| Operating lease income | $ | 5 | $ | — | $ | — | $ | — | $ | 4 | $ | — | $ | 4 | |||||||||||||||||||||||||||||||||
| Variable lease income | 1 | — | — | — | 1 | — | 1 | ||||||||||||||||||||||||||||||||||||||||
| For the year ended December 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||
| Operating lease income | $ | 4 | $ | — | $ | — | $ | — | $ | 4 | $ | — | $ | 3 | |||||||||||||||||||||||||||||||||
| Variable lease income | 1 | — | — | — | 1 | — | 1 | ||||||||||||||||||||||||||||||||||||||||
| For the year ended December 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||
| Operating lease income | $ | 5 | $ | — | $ | — | $ | — | $ | 4 | $ | — | $ | 3 | |||||||||||||||||||||||||||||||||
| Variable lease income | 1 | — | — | — | 1 | — | 1 |
Future minimum lease payments to be recovered under operating leases as of December 31, 2025 were as follows:
| Year | Exelon | ComEd | PECO | BGE | PHI | Pepco | DPL | ||||||||||||||||||||||||||||||||||||||||
| 2026 | $ | 7 | $ | 1 | $ | 1 | $ | — | $ | 5 | $ | — | $ | 4 | |||||||||||||||||||||||||||||||||
| 2027 | 7 | — | 2 | — | 5 | — | 4 | ||||||||||||||||||||||||||||||||||||||||
| 2028 | 6 | — | 1 | — | 5 | — | 5 | ||||||||||||||||||||||||||||||||||||||||
| 2029 | 6 | — | 1 | — | 4 | — | 5 | ||||||||||||||||||||||||||||||||||||||||
| 2030 | 5 | — | 1 | — | 4 | — | 4 | ||||||||||||||||||||||||||||||||||||||||
| Remaining years | 17 | — | 7 | 1 | 9 | — | 9 | ||||||||||||||||||||||||||||||||||||||||
| Total | $ | 48 | $ | 1 | $ | 13 | $ | 1 | $ | 32 | $ | — | $ | 31 |
10. Intangible Assets
Goodwill (Exelon, ComEd, PHI, Pepco, DPL, and ACE)
The following table presents the gross amount, accumulated impairment loss, and carrying amount of Goodwill at Exelon, ComEd, and PHI at December 31, 2025 and 2024. There were no additions or impairments during the years ended December 31, 2025, 2024, and 2023.
| Gross Amount | Accumulated Impairment Loss | Carrying Amount | |||||||||||||||
| Exelon | $ | 8,613 | $ | 1,983 | $ | 6,630 | |||||||||||
| ComEd(a) | 4,608 | 1,983 | 2,625 | ||||||||||||||
| PHI(b) | 4,005 | — | 4,005 |
(a)Reflects goodwill recorded in 2000 from the PECO/Unicom merger (predecessor parent company of ComEd).
(b)Reflects goodwill recorded in 2016 from the PHI merger.
Goodwill is not amortized, but is subject to an assessment for impairment at least annually, or more frequently if events occur or circumstances change that would more likely than not reduce the fair value of ComEd's and PHI's reporting units below their carrying amounts. A reporting unit is an operating segment or one level below an operating segment (known as a component) and is the level at which goodwill is assessed for impairment. A component of an operating segment is a reporting unit if the component constitutes a business for which discrete financial information is available and its operating results are regularly reviewed by segment management. ComEd has a single operating segment. PHI's operating segments are Pepco, DPL, and ACE. See Note 4 — Segment Information for additional information. There is no level below these operating segments for which operating results are regularly reviewed by segment management. Therefore, the ComEd, Pepco, DPL, and ACE operating segments are also considered reporting units for goodwill impairment assessment purposes. Exelon's and ComEd's $2.6 billion of goodwill has been assigned entirely to the ComEd reporting unit, while Exelon's and
Combined Notes to Consolidated Financial Statements
(Dollars in millions, except per share data unless otherwise noted)
Note 10 — Intangible Assets
PHI's $4.0 billion of goodwill has been assigned to the Pepco, DPL, and ACE reporting units in the amounts of $2.1 billion, $1.4 billion, and $0.5 billion, respectively.
Entities assessing goodwill for impairment have the option of first performing a qualitative assessment to determine whether a quantitative assessment is necessary. As part of the qualitative assessments, Exelon, ComEd, and PHI evaluate, among other things, management's best estimate of projected operating and capital cash flows for their businesses, outcomes of recent regulatory proceedings, changes in certain market conditions, including the discount rate and regulated utility peer EBITDA multiples, and the passing margin from their last quantitative assessments performed. If an entity bypasses the qualitative assessment, a quantitative, fair value-based assessment is performed, which compares the fair value of the reporting unit to its carrying amount, including goodwill. If the carrying amount of the reporting unit exceeds its fair value, the entity recognizes an impairment charge, which is limited to the amount of goodwill allocated to the reporting unit.
Application of the goodwill impairment assessment requires management judgment, including the identification of reporting units and determining the fair value of the reporting unit, which management estimates using a weighted combination of a discounted cash flow analysis and a market multiples analysis. Significant assumptions used in these fair value analyses include discount and growth rates, utility sector market performance and transactions, projected operating and capital cash flows for ComEd's, Pepco's, DPL's, and ACE's businesses, and the fair value of debt.
2025 and 2024 Goodwill Impairment Assessment. ComEd and PHI qualitatively determined that it was more likely than not that the fair values of their reporting units exceeded their carrying values and, therefore, did not perform quantitative assessments as of November 1, 2025 and 2024. The last quantitative assessments performed for PHI was as of November 1, 2018. On December 14, 2023, due to the issuance of the ICC's final order rejecting ComEd’s proposed Grid Plan and establishing retail rates for 2024-2027 as further discussed in Note 2 — Regulatory Matters, Exelon’s stock price decreased approximately 10% triggering an interim quantitative assessment for potential goodwill impairment at ComEd. ComEd performed a quantitative assessment as of December 31, 2023, comparing the estimated fair value of ComEd to its carrying value, and determined there was no indication of goodwill impairment.
While the annual and interim assessments indicated no impairments, certain assumptions used to estimate reporting unit fair values are highly sensitive to changes. Adverse regulatory actions or changes in significant assumptions could potentially result in future impairments of Exelon's, ComEd's, and PHI’s goodwill, which could be material.
Other Intangible Assets and Liabilities (Exelon and PHI)
Exelon’s other intangible assets, included in Other current assets and Other deferred debits and other assets in the Consolidated Balance Sheets, consisted of the following at December 31, 2025 and 2024. Exelon's and PHI's other intangible liabilities, included in current and noncurrent Unamortized energy contract liabilities in their Consolidated Balance Sheets, consisted of the following at December 31, 2025 and 2024. The intangible assets and liabilities shown below are amortized on a straight-line basis, except for unamortized energy contracts which are amortized in relation to the expected realization of the underlying cash flows:
| December 31, 2025 | December 31, 2024 | |||||||||||||||||||||||||||||||||||||
| Gross | Accumulated Amortization | Net | Gross | Accumulated Amortization | Net | |||||||||||||||||||||||||||||||||
| Exelon | ||||||||||||||||||||||||||||||||||||||
| Unamortized Energy Contracts | $ | (1,515) | $ | 1,494 | $ | (21) | $ | (1,515) | $ | 1,489 | $ | (26) | ||||||||||||||||||||||||||
| Software License | 81 | (81) | — | 81 | (78) | 3 | ||||||||||||||||||||||||||||||||
| Exelon Total | $ | (1,434) | $ | 1,413 | $ | (21) | $ | (1,434) | $ | 1,411 | $ | (23) | ||||||||||||||||||||||||||
| PHI | ||||||||||||||||||||||||||||||||||||||
| Unamortized Energy Contracts | $ | (1,515) | $ | 1,494 | $ | (21) | $ | (1,515) | $ | 1,489 | $ | (26) |
Combined Notes to Consolidated Financial Statements
(Dollars in millions, except per share data unless otherwise noted)
Note 10 — Intangible Assets
The following table summarizes the amortization expense related to intangible assets and liabilities for each of the years ended December 31, 2025, 2024, and 2023:
| For the Years Ended December 31, | Exelon**(a)** | PHI**(a)** | ||||||||||||
| 2025 | $ | (2) | $ | (5) | ||||||||||
| 2024 | (1) | (9) | ||||||||||||
| 2023 | (1) | (10) |
(a)For PHI unamortized energy contracts, the amortization of the fair value adjustment amounts and the corresponding offsetting regulatory asset amounts are amortized through Purchased power and fuel expense in their Consolidated Statements of Operations and Comprehensive Income resulting in no effect to net income.
11. Income Taxes (All Registrants)
Components of Income Tax Expense or Benefit
Income tax expense (benefit) from continuing operations is comprised of the following components:
| For the Year Ended December 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||
| Exelon | ComEd | PECO | BGE | PHI | Pepco | DPL | ACE | ||||||||||||||||||||||||||||||||||||||||
| Included in operations: | |||||||||||||||||||||||||||||||||||||||||||||||
| Federal | |||||||||||||||||||||||||||||||||||||||||||||||
| Current | $ | 119 | $ | 143 | $ | 97 | $ | 74 | $ | 91 | $ | 47 | $ | 28 | $ | 20 | |||||||||||||||||||||||||||||||
| Deferred | 169 | (16) | (45) | 28 | 60 | 18 | 16 | 24 | |||||||||||||||||||||||||||||||||||||||
| Investment tax credit amortization | (1) | (1) | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
| State | |||||||||||||||||||||||||||||||||||||||||||||||
| Current | 13 | 80 | — | — | 16 | 7 | 8 | — | |||||||||||||||||||||||||||||||||||||||
| Deferred | 223 | 55 | (23) | 57 | 72 | 34 | 17 | 23 | |||||||||||||||||||||||||||||||||||||||
| Total | $ | 523 | $ | 261 | $ | 29 | $ | 159 | $ | 239 | $ | 106 | $ | 69 | $ | 67 |
| For the Year Ended December 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||
| Exelon | ComEd | PECO | BGE | PHI | Pepco | DPL | ACE | ||||||||||||||||||||||||||||||||||||||||
| Included in operations: | |||||||||||||||||||||||||||||||||||||||||||||||
| Federal | |||||||||||||||||||||||||||||||||||||||||||||||
| Current | $ | 42 | $ | 76 | $ | 51 | $ | 45 | $ | 97 | $ | 50 | $ | 29 | $ | 16 | |||||||||||||||||||||||||||||||
| Deferred | (27) | (76) | (46) | (42) | 21 | 3 | 3 | 20 | |||||||||||||||||||||||||||||||||||||||
| Investment tax credit amortization | (2) | (1) | — | — | (1) | — | — | — | |||||||||||||||||||||||||||||||||||||||
| State | |||||||||||||||||||||||||||||||||||||||||||||||
| Current | 37 | 60 | — | — | 19 | 17 | 4 | — | |||||||||||||||||||||||||||||||||||||||
| Deferred | 157 | 57 | (17) | 46 | 53 | 20 | 13 | 19 | |||||||||||||||||||||||||||||||||||||||
| Total | $ | 207 | $ | 116 | $ | (12) | $ | 49 | $ | 189 | $ | 90 | $ | 49 | $ | 55 |
Combined Notes to Consolidated Financial Statements
(Dollars in millions, except per share data unless otherwise noted)
Note 11 — Income Taxes
| For the Year Ended December 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||
| Exelon | ComEd | PECO | BGE | PHI | Pepco | DPL | ACE | ||||||||||||||||||||||||||||||||||||||||
| Included in operations: | |||||||||||||||||||||||||||||||||||||||||||||||
| Federal | |||||||||||||||||||||||||||||||||||||||||||||||
| Current | $ | 51 | $ | 130 | $ | 63 | $ | 67 | $ | 71 | $ | 54 | $ | 25 | $ | 9 | |||||||||||||||||||||||||||||||
| Deferred | 193 | 45 | (36) | 16 | (8) | (28) | (6) | 13 | |||||||||||||||||||||||||||||||||||||||
| Investment tax credit amortization | (2) | (1) | — | — | (1) | — | — | — | |||||||||||||||||||||||||||||||||||||||
| State | |||||||||||||||||||||||||||||||||||||||||||||||
| Current | 4 | (13) | — | — | 15 | 12 | 6 | — | |||||||||||||||||||||||||||||||||||||||
| Deferred | 128 | 153 | (7) | 50 | 39 | 13 | 10 | 14 | |||||||||||||||||||||||||||||||||||||||
| Total | $ | 374 | $ | 314 | $ | 20 | $ | 133 | $ | 116 | $ | 51 | $ | 35 | $ | 36 |
Rate Reconciliation
The effective income tax rate from continuing operations varies from the U.S. federal statutory rate principally due to the following:
| For the Year Ended December 31, 2025**(a)(b)** | |||||||||||||||||||||||||||||||||||||||||||||||
| Exelon | ComEd**(c)** | PECO**(d)** | BGE | ||||||||||||||||||||||||||||||||||||||||||||
| U.S. Federal Statutory Tax Rate | $ | 691 | 21.0 | % | $ | 296 | 21.0 | % | $ | 177 | 21.0 | % | $ | 155 | 21.0 | % | |||||||||||||||||||||||||||||||
| Increase (decrease) due to: | |||||||||||||||||||||||||||||||||||||||||||||||
| State income taxes, net of Federal income tax benefit | 187 | 5.7 | 107 | 7.6 | (18) | (2.1) | 45 | 6.1 | |||||||||||||||||||||||||||||||||||||||
| Tax credits | (13) | (0.4) | (6) | (0.4) | — | — | (3) | (0.4) | |||||||||||||||||||||||||||||||||||||||
| Nontaxable or nondeductible items | 13 | 0.4 | 1 | 0.1 | 1 | 0.1 | 1 | 0.2 | |||||||||||||||||||||||||||||||||||||||
| Other Adjustments | |||||||||||||||||||||||||||||||||||||||||||||||
| Plant basis differences | (145) | (4.4) | (13) | (1.0) | (117) | (13.9) | (11) | (1.5) | |||||||||||||||||||||||||||||||||||||||
| Excess deferred tax | (208) | (6.3) | (123) | (8.7) | (14) | (1.7) | (28) | (3.8) | |||||||||||||||||||||||||||||||||||||||
| Amortization of ITC, net deferred taxes | (2) | (0.1) | (1) | (0.1) | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
| Effective Tax Rate | $ | 523 | 15.9 | % | $ | 261 | 18.5 | % | $ | 29 | 3.4 | % | $ | 159 | 21.6 | % |
| For the Year Ended December 31, 2025**(a)(b)** | |||||||||||||||||||||||||||||||||||||||||||||||
| PHI | PEPCO | DPL | ACE | ||||||||||||||||||||||||||||||||||||||||||||
| U.S. Federal Statutory Tax Rate | $ | 218 | 21.0 | % | $ | 106 | 21.0 | % | $ | 62 | 21.0 | % | $ | 53 | 21.0 | % | |||||||||||||||||||||||||||||||
| Increase (decrease) due to: | |||||||||||||||||||||||||||||||||||||||||||||||
| State income taxes, net of Federal income tax benefit | 70 | 6.7 | 32 | 6.3 | 20 | 6.8 | 18 | 7.1 | |||||||||||||||||||||||||||||||||||||||
| Tax credits | (4) | (0.4) | (2) | (0.4) | (1) | (0.3) | (1) | (0.4) | |||||||||||||||||||||||||||||||||||||||
| Nontaxable or nondeductible items | 3 | 0.3 | 2 | 0.3 | (1) | (0.3) | 1 | 0.2 | |||||||||||||||||||||||||||||||||||||||
| Other Adjustments | |||||||||||||||||||||||||||||||||||||||||||||||
| Plant basis differences | (5) | (0.5) | (3) | (0.6) | (1) | (0.3) | (1) | (0.4) | |||||||||||||||||||||||||||||||||||||||
| Excess deferred tax | (42) | (4.0) | (29) | (5.7) | (10) | (3.4) | (3) | (1.2) | |||||||||||||||||||||||||||||||||||||||
| Amortization of ITC, net deferred taxes | (1) | (0.1) | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
| Effective Tax Rate | $ | 239 | 23.0 | % | $ | 106 | 20.9 | % | $ | 69 | 23.5 | % | $ | 67 | 26.3 | % |
Combined Notes to Consolidated Financial Statements
(Dollars in millions, except per share data unless otherwise noted)
Note 11 — Income Taxes
| For the Year Ended December 31, 2024**(a)(b)** | |||||||||||||||||||||||||||||||||||||||||||||||
| Exelon | ComEd**(c)** | PECO**(d)** | BGE**(e)** | ||||||||||||||||||||||||||||||||||||||||||||
| U.S. Federal Statutory Tax Rate | $ | 560 | 21.0 | % | $ | 248 | 21.0 | % | $ | 113 | 21.0 | % | $ | 121 | 21.0 | % | |||||||||||||||||||||||||||||||
| Increase (decrease) due to: | |||||||||||||||||||||||||||||||||||||||||||||||
| State income taxes, net of Federal income tax benefit | 153 | 5.7 | 92 | 7.8 | (13) | (2.4) | 36 | 6.3 | |||||||||||||||||||||||||||||||||||||||
| Tax credits | (19) | (0.6) | (13) | (1.1) | — | — | (2) | (0.3) | |||||||||||||||||||||||||||||||||||||||
| Nontaxable or nondeductible items | 6 | 0.2 | 2 | 0.2 | — | — | 1 | 0.1 | |||||||||||||||||||||||||||||||||||||||
| Other Adjustments | |||||||||||||||||||||||||||||||||||||||||||||||
| Plant basis differences | (120) | (4.5) | (8) | (0.7) | (96) | (17.8) | (8) | (1.4) | |||||||||||||||||||||||||||||||||||||||
| Excess deferred tax | (371) | (13.9) | (204) | (17.3) | (16) | (3.0) | (99) | (17.2) | |||||||||||||||||||||||||||||||||||||||
| Amortization of ITC, net deferred taxes | (2) | (0.1) | (1) | (0.1) | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
| Effective Tax Rate | $ | 207 | 7.8 | % | $ | 116 | 9.8 | % | $ | (12) | (2.2) | % | $ | 49 | 8.5 | % |
| For the Year Ended December 31, 2024**(a)(b)** | |||||||||||||||||||||||||||||||||||||||||||||||
| PHI | PEPCO | DPL | ACE | ||||||||||||||||||||||||||||||||||||||||||||
| U.S. Federal Statutory Tax Rate | $ | 195 | 21.0 | % | $ | 101 | 21.0 | % | $ | 54 | 21.0 | % | $ | 44 | 21.0 | % | |||||||||||||||||||||||||||||||
| Increase (decrease) due to: | |||||||||||||||||||||||||||||||||||||||||||||||
| State income taxes, net of Federal income tax benefit | 57 | 6.1 | 29 | 6.0 | 13 | 5.0 | 15 | 7.1 | |||||||||||||||||||||||||||||||||||||||
| Tax credits | (4) | (0.4) | (2) | (0.4) | (1) | (0.4) | (1) | (0.5) | |||||||||||||||||||||||||||||||||||||||
| Nontaxable or nondeductible items | 1 | 0.1 | — | — | 1 | 0.4 | — | — | |||||||||||||||||||||||||||||||||||||||
| Other Adjustments | |||||||||||||||||||||||||||||||||||||||||||||||
| Plant basis differences | (7) | (0.8) | (5) | (1.0) | (3) | (1.2) | 1 | 0.5 | |||||||||||||||||||||||||||||||||||||||
| Excess deferred tax | (52) | (5.6) | (33) | (6.8) | (15) | (5.8) | (4) | (1.9) | |||||||||||||||||||||||||||||||||||||||
| Amortization of ITC, net deferred taxes | (1) | (0.1) | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
| Effective Tax Rate | $ | 189 | 20.3 | % | $ | 90 | 18.8 | % | $ | 49 | 19.0 | % | $ | 55 | 26.2 | % |
| For the Year Ended December 31, 2023**(a)(b)** | |||||||||||||||||||||||||||||||||||||||||||||||
| Exelon | ComEd | PECO**(d)** | BGE | ||||||||||||||||||||||||||||||||||||||||||||
| U.S. Federal Statutory Tax Rate | $ | 567 | 21.0 | % | $ | 295 | 21.0 | % | $ | 122 | 21.0 | % | $ | 130 | 21.0 | % | |||||||||||||||||||||||||||||||
| Increase (decrease) due to: | |||||||||||||||||||||||||||||||||||||||||||||||
| State income taxes, net of Federal income tax benefit | 104 | 3.8 | 111 | 7.9 | (6) | (1.0) | 40 | 6.5 | |||||||||||||||||||||||||||||||||||||||
| Tax credits | (16) | (0.6) | (8) | (0.6) | — | — | (3) | (0.5) | |||||||||||||||||||||||||||||||||||||||
| Nontaxable or nondeductible items | 7 | 0.3 | 1 | 0.2 | 2 | 0.2 | — | — | |||||||||||||||||||||||||||||||||||||||
| Other Adjustments | |||||||||||||||||||||||||||||||||||||||||||||||
| Plant basis differences | (106) | (3.9) | (7) | (0.5) | (84) | (14.4) | (6) | (1.0) | |||||||||||||||||||||||||||||||||||||||
| Excess deferred tax | (180) | (6.7) | (77) | (5.5) | (14) | (2.4) | (28) | (4.5) | |||||||||||||||||||||||||||||||||||||||
| Amortization of ITC, net deferred taxes | (2) | (0.1) | (1) | (0.1) | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
| Effective Tax Rate | $ | 374 | 13.8 | % | $ | 314 | 22.4 | % | $ | 20 | 3.4 | % | $ | 133 | 21.5 | % |
Combined Notes to Consolidated Financial Statements
(Dollars in millions, except per share data unless otherwise noted)
Note 11 — Income Taxes
| For the Year Ended December 31, 2023**(a)(b)** | |||||||||||||||||||||||||||||||||||||||||||||||
| PHI | PEPCO | DPL | ACE | ||||||||||||||||||||||||||||||||||||||||||||
| U.S. Federal Statutory Tax Rate | $ | 148 | 21.0 | % | $ | 75 | 21.0 | % | $ | 45 | 21.0 | % | $ | 33 | 21.0 | % | |||||||||||||||||||||||||||||||
| Increase (decrease) due to: | |||||||||||||||||||||||||||||||||||||||||||||||
| State income taxes, net of Federal income tax benefit | 43 | 6.1 | 20 | 5.5 | 13 | 6.1 | 11 | 7.1 | |||||||||||||||||||||||||||||||||||||||
| Tax credits | (3) | (0.6) | (3) | (0.7) | (1) | (0.4) | (1) | (0.6) | |||||||||||||||||||||||||||||||||||||||
| Nontaxable or nondeductible items | — | 0.1 | 1 | 0.3 | — | — | 1 | 0.7 | |||||||||||||||||||||||||||||||||||||||
| Other Adjustments | |||||||||||||||||||||||||||||||||||||||||||||||
| Plant basis differences | (10) | (1.5) | (8) | (2.2) | (2) | (0.8) | (1) | (0.6) | |||||||||||||||||||||||||||||||||||||||
| Excess deferred tax | (61) | (8.6) | (34) | (9.6) | (20) | (9.4) | (7) | (4.5) | |||||||||||||||||||||||||||||||||||||||
| Amortization of ITC, net deferred taxes | (1) | (0.1) | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
| Effective Tax Rate | $ | 116 | 16.4 | % | $ | 51 | 14.3 | % | $ | 35 | 16.5 | % | $ | 36 | 23.1 | % |
(a)Positive percentages represent income tax expense. Negative percentages represent income tax benefit.
(b)Exelon and Registrants had no adjustments related to the following disclosure categories: Foreign Tax Effects, Effects of Changes in Tax law or Rates Enacted in the Current Period, Effects of Cross-Border Tax Laws, Changes in Valuation Allowances, and Changes in Unrecognized Tax Benefits.
(c)For ComEd, the lower effective tax rate is primarily due to CEJA which resulted in the acceleration of certain income tax benefits being provided to customers.
(d)For PECO, the lower effective tax rate is primarily related to state income taxes, net of federal income tax benefit and plant basis differences attributable to tax repair deductions.
(e)For BGE, the lower effective tax rate is primarily due to the Maryland Multi-year plan which resulted in the acceleration of certain tax benefits being provided to customers.
State and local Income Tax (Major Jurisdictions)
The state and local jurisdictions that comprise the majority of the effect of the state and local income tax, net of federal income taxes category by Registrant are presented below:
| 2025 | 2024 | 2023 | |||||||||||||||
| Exelon | IL, MD | IL, MD | MD, IL | ||||||||||||||
| ComEd | IL | IL | IL | ||||||||||||||
| PECO | PA | PA | PA | ||||||||||||||
| BGE | MD | MD | MD | ||||||||||||||
| PHI | MD, NJ | MD, NJ | MD, NJ | ||||||||||||||
| Pepco | MD | MD | MD | ||||||||||||||
| DPL | DE | DE | DE | ||||||||||||||
| ACE | NJ | NJ | NJ |
Combined Notes to Consolidated Financial Statements
(Dollars in millions, except per share data unless otherwise noted)
Note 11 — Income Taxes
Tax Differences and Carryforwards
The tax effects of temporary differences and carryforwards, which give rise to significant portions of the deferred tax assets (liabilities), at December 31, 2025 and 2024 are presented below:
| At December 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||
| Exelon | ComEd | PECO | BGE | PHI | Pepco | DPL | ACE | ||||||||||||||||||||||||||||||||||||||||
| Plant basis differences | $ | (13,989) | $ | (5,231) | $ | (2,676) | $ | (2,411) | $ | (3,596) | $ | (1,628) | $ | (1,033) | $ | (936) | |||||||||||||||||||||||||||||||
| Accrual based contracts | 18 | — | — | — | 5 | — | — | — | |||||||||||||||||||||||||||||||||||||||
| Derivatives and other financial instruments | 26 | 36 | — | — | 1 | — | — | — | |||||||||||||||||||||||||||||||||||||||
| Deferred pension and postretirement obligation | 506 | (382) | (41) | (20) | (60) | (57) | (28) | — | |||||||||||||||||||||||||||||||||||||||
| Deferred debt refinancing costs | 101 | (4) | — | (2) | 91 | (2) | (1) | (1) | |||||||||||||||||||||||||||||||||||||||
| Regulatory assets and liabilities | (1,756) | (490) | (324) | (39) | (122) | (36) | 29 | (25) | |||||||||||||||||||||||||||||||||||||||
| Tax loss carryforward, net of valuation allowances | 275 | — | 72 | 63 | 67 | — | 14 | 53 | |||||||||||||||||||||||||||||||||||||||
| Tax credit carryforward | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
| Corporate Alternative Minimum Tax | 553 | — | 289 | 142 | 71 | 44 | 17 | 20 | |||||||||||||||||||||||||||||||||||||||
| Investment in partnerships | (28) | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
| Other, net | 601 | 250 | 86 | 26 | 166 | 76 | 9 | 23 | |||||||||||||||||||||||||||||||||||||||
| Deferred income tax liabilities (net) | (13,693) | (5,821) | (2,594) | (2,241) | (3,377) | (1,603) | (993) | (866) | |||||||||||||||||||||||||||||||||||||||
| Unamortized investment tax credits | (15) | (7) | — | (1) | (7) | (1) | (3) | (3) | |||||||||||||||||||||||||||||||||||||||
| Total deferred income tax liabilities (net) and unamortized investment tax credits | $ | (13,708) | $ | (5,828) | $ | (2,594) | $ | (2,242) | $ | (3,384) | $ | (1,604) | $ | (996) | $ | (869) |
Combined Notes to Consolidated Financial Statements
(Dollars in millions, except per share data unless otherwise noted)
Note 11 — Income Taxes
| At December 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||
| Exelon | ComEd | PECO | BGE | PHI | Pepco | DPL | ACE | ||||||||||||||||||||||||||||||||||||||||
| Plant basis differences | $ | (13,150) | $ | (5,069) | $ | (2,446) | $ | (2,232) | $ | (3,371) | $ | (1,512) | $ | (975) | $ | (881) | |||||||||||||||||||||||||||||||
| Accrual based contracts | 19 | — | — | — | 6 | — | — | — | |||||||||||||||||||||||||||||||||||||||
| Derivatives and other financial instruments | 21 | 36 | — | — | 1 | — | — | — | |||||||||||||||||||||||||||||||||||||||
| Deferred pension and postretirement obligation | 512 | (339) | (39) | (24) | (68) | (64) | (32) | — | |||||||||||||||||||||||||||||||||||||||
| Deferred debt refinancing costs | 108 | (4) | — | (2) | 98 | (3) | (1) | (1) | |||||||||||||||||||||||||||||||||||||||
| Regulatory assets and liabilities | (1,665) | (515) | (254) | (37) | (96) | (16) | 33 | (18) | |||||||||||||||||||||||||||||||||||||||
| Tax loss carryforward, net of valuation allowances | 283 | — | 63 | 78 | 68 | — | 16 | 51 | |||||||||||||||||||||||||||||||||||||||
| Tax credit carryforward | 142 | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
| Corporate Alternative Minimum Tax | 369 | 47 | 166 | 95 | 2 | 2 | 4 | 8 | |||||||||||||||||||||||||||||||||||||||
| Investment in partnerships | (27) | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
| Other, net | 612 | 249 | 77 | 24 | 180 | 85 | 10 | 27 | |||||||||||||||||||||||||||||||||||||||
| Deferred income tax liabilities (net) | (12,776) | (5,595) | (2,433) | (2,098) | (3,180) | (1,508) | (945) | (814) | |||||||||||||||||||||||||||||||||||||||
| Unamortized investment tax credits | (10) | (6) | — | (1) | (3) | (1) | (1) | (2) | |||||||||||||||||||||||||||||||||||||||
| Total deferred income tax liabilities (net) and unamortized investment tax credits | $ | (12,786) | $ | (5,601) | $ | (2,433) | $ | (2,099) | $ | (3,183) | $ | (1,509) | $ | (946) | $ | (816) |
The following table provides federal and state tax attribute carryforwards at December 31, 2025 for Exelon, ComEd, PECO, BGE, PHI, Pepco, DPL, and ACE. The state net operating loss carryforwards and any corresponding valuation allowance are presented on a post-apportioned basis.
| Exelon | ComEd | PECO | BGE | PHI | Pepco | DPL | ACE | ||||||||||||||||||||||||||||||||||||||||
| Federal | |||||||||||||||||||||||||||||||||||||||||||||||
| Federal general business credits carryforwards | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||||||||||||
| Corporate Alternative Minimum Tax credit carryforward(a) | $ | 553 | $ | — | $ | 289 | $ | 142 | $ | 71 | $ | 44 | $ | 17 | $ | 20 | |||||||||||||||||||||||||||||||
| State | |||||||||||||||||||||||||||||||||||||||||||||||
| State net operating loss carryforwards | $ | 6,684 | $ | — | $ | 1,944 | $ | 972 | $ | 1,387 | $ | — | $ | 635 | $ | 752 | |||||||||||||||||||||||||||||||
| Deferred taxes on state tax attributes (net of federal taxes) | $ | 381 | $ | — | $ | 76 | $ | 63 | $ | 96 | $ | — | $ | 43 | $ | 53 | |||||||||||||||||||||||||||||||
| Valuation allowance on state tax attributes (net of federal taxes)(b) | $ | 106 | $ | — | $ | 4 | $ | — | $ | 29 | $ | — | $ | 29 | $ | — | |||||||||||||||||||||||||||||||
| Year in which net operating loss or credit carryforwards will begin to expire(c) | 2031 | N/A | 2031 | 2033 | 2031 | N/A | 2033 | 2031 |
(a)For Exelon, PECO, BGE, PHI, Pepco, DPL, and ACE, the Corporate Alternative Minimum Tax credit carryforward has an indefinite carryforward period.
(b)For Exelon, a full valuation allowance has been recorded against certain separate company state net operating loss carryforwards that are expected to expire before realization. For PECO, a valuation allowance has been recorded against Pennsylvania net operating losses that are expected to expire before realization. For DPL, a full valuation allowance has
Combined Notes to Consolidated Financial Statements
(Dollars in millions, except per share data unless otherwise noted)
Note 11 — Income Taxes
been recorded against Delaware net operating losses carryforwards due to a change in Delaware tax law that limits the ability of corporate taxpayers to monetize net operating losses.
(c)A portion of Exelon's, BGE's, and DPL's Maryland state net operating loss carryforward have an indefinite carryforward period.
Tabular Reconciliation of Unrecognized Tax Benefits
The following table presents changes in unrecognized tax benefits, for Exelon, PHI, DPL, and ACE. Amounts for ComEd, PECO, BGE, and Pepco are not material.
| Exelon**(a)** | PHI | DPL | ACE | ||||||||||||||||||||||||||||||||||||||||||||
| Balance at January 1, 2023 | $ | 148 | $ | 59 | $ | 4 | $ | 17 | |||||||||||||||||||||||||||||||||||||||
| Change to positions that only affect timing | (57) | (9) | (2) | (2) | |||||||||||||||||||||||||||||||||||||||||||
| Increases based on tax positions related to 2023 | 3 | 1 | — | — | |||||||||||||||||||||||||||||||||||||||||||
| Increases based on tax positions prior to 2023 | 1 | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
| Decreases based on tax positions prior to 2023 | (1) | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
| Balance at December 31, 2023 | $ | 94 | $ | 51 | $ | 2 | $ | 15 | |||||||||||||||||||||||||||||||||||||||
| Change to positions that only affect timing | 10 | 10 | — | — | |||||||||||||||||||||||||||||||||||||||||||
| Increases based on tax positions related to 2024 | 4 | 1 | 10 | — | |||||||||||||||||||||||||||||||||||||||||||
| Increases based on tax positions prior to 2024 | 2 | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
| Decreases based on tax positions prior to 2024 | (14) | (14) | — | (14) | |||||||||||||||||||||||||||||||||||||||||||
| Balance at December 31, 2024 | $ | 96 | $ | 48 | $ | 12 | $ | 1 | |||||||||||||||||||||||||||||||||||||||
| Change to positions that only affect timing | — | (1) | — | — | |||||||||||||||||||||||||||||||||||||||||||
| Increases based on tax positions related to 2025 | 3 | 1 | — | — | |||||||||||||||||||||||||||||||||||||||||||
| Increases based on tax positions prior to 2025 | 1 | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
| Decreases based on tax positions prior to 2025 | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
| Balance at December 31, 2025 | $ | 100 | $ | 48 | $ | 12 | $ | 1 |
(a)At December 31, 2025 and 2024, Exelon recorded a receivable of $31 million and $31 million, respectively, in noncurrent Other assets in the Consolidated Balance Sheet for Constellation’s share of unrecognized tax benefits for periods prior to the separation of Exelon and Constellation in February 2022.
Unrecognized Tax Benefits
The following table presents Exelon's unrecognized tax benefits that, if recognized, would decrease the effective tax rate. The Utility Registrants' amounts are not material.
| Exelon | |||||||||||||||||||||||||||||||||||
| December 31, 2025 | $ | 83 | |||||||||||||||||||||||||||||||||
| December 31, 2024 | 69 | ||||||||||||||||||||||||||||||||||
| December 31, 2023 | 71 |
At December 31, 2025 Exelon, PHI, and DPL have approximately $65 million, $6 million, and $1 million, respectively, of unrecognized federal tax benefits that could significantly change within the 12 months after the reporting date based on the outcome of pending refund claims that impacts the effective tax rate.
Total Amounts of Interest and Penalties Recognized
The following table represents the net interest and penalties receivable (payable) related to tax positions reflected in Exelon's Consolidated Balance Sheets. The Utility Registrants' amounts are not material.
| Net interest and penalties receivable at | Exelon | ||||
| December 31, 2025 (a) | $ | 61 | |||
| December 31, 2024 (b) | 76 |
Combined Notes to Consolidated Financial Statements
(Dollars in millions, except per share data unless otherwise noted)
Note 11 — Income Taxes
(a)At December 31, 2025, Exelon classified $7 million and $54 million of the interest receivable as current and noncurrent, respectively, based on the expected timing for settlement in cash. At December 31, 2025, Exelon recorded a receivable of $12 million in noncurrent Other assets in the Consolidated Balance Sheet for Constellation's share of net interest for periods prior to the separation of Exelon and Constellation in February 2022.
(b)At December 31, 2024, Exelon classified $27 million and $49 million of the interest receivable as current and noncurrent, respectively, based on the expected timing for settlement in cash. At December 31, 2024, Exelon recorded a receivable of $9 million in noncurrent Other assets in the Consolidated Balance Sheet for Constellation's share of net interest for periods prior to the separation of Exelon and Constellation in February 2022.
The Registrants did not record material interest or penalties related to tax positions reflected in their Consolidated Balance Sheets. Interest and penalties are recorded in Interest expense, net and Other, net, respectively, in Other income and deductions in the Registrants' Consolidated Statements of Operations and Comprehensive Income.
Description of Tax Years Open to Assessment by Major Jurisdiction
| Major Jurisdiction | Open Years | Registrants Impacted | |||||||||
| Federal consolidated income tax returns(a) | 2010-2024 | All Registrants | |||||||||
| Delaware separate corporate income tax returns | 2010-2024 | DPL | |||||||||
| District of Columbia combined corporate income tax returns | 2022-2024 | Exelon, PHI, Pepco | |||||||||
| Illinois unitary corporate income tax returns | 2012-2024 | Exelon, ComEd | |||||||||
| Maryland separate company corporate net income tax returns | 2010-2024 | BGE, Pepco, DPL | |||||||||
| New Jersey combined corporate income tax returns | 2021-2024 | Exelon | |||||||||
| New Jersey separate corporate income tax returns | 2021-2024 | ACE | |||||||||
| Pennsylvania separate corporate income tax returns | 2021-2024 | Exelon | |||||||||
| Pennsylvania separate corporate income tax returns | 2021-2024 | PECO |
(a)Certain registrants are only open to assessment for tax years since joining the Exelon federal consolidated group; BGE beginning in 2012 and PHI, Pepco, DPL, and ACE beginning in 2016.
Combined Notes to Consolidated Financial Statements
(Dollars in millions, except per share data unless otherwise noted)
Note 11 — Income Taxes
Tax Payments (Refunds) by Major Jurisdiction
| For the Year Ended December 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||
| Exelon | ComEd | PECO | BGE | PHI | Pepco | DPL | ACE | ||||||||||||||||||||||||||||||||||||||||
| Federal(a) | $ | — | $ | 128 | $ | (186) | $ | (95) | $ | 88 | $ | 69 | $ | 13 | $ | 11 | |||||||||||||||||||||||||||||||
| Delaware | 8 | — | — | — | 8 | — | 7 | — | |||||||||||||||||||||||||||||||||||||||
| District of Columbia | — | — | — | — | 4 | 6 | — | — | |||||||||||||||||||||||||||||||||||||||
| Illinois | (1) | 96 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
| Maryland | 14 | — | — | — | 14 | 13 | — | — | |||||||||||||||||||||||||||||||||||||||
| Pennsylvania | (10) | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
| Other States | 1 | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
| Total Payments (Refunds) | $ | 12 | $ | 224 | $ | (186) | $ | (95) | $ | 114 | $ | 88 | $ | 20 | $ | 11 |
| For the Year Ended December 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||
| Exelon | ComEd | PECO | BGE | PHI | Pepco | DPL | ACE | ||||||||||||||||||||||||||||||||||||||||
| Federal | $ | 54 | $ | 188 | $ | 128 | $ | 100 | $ | 119 | $ | 62 | $ | 43 | $ | 20 | |||||||||||||||||||||||||||||||
| Delaware | 13 | — | — | — | 13 | — | 13 | — | |||||||||||||||||||||||||||||||||||||||
| District of Columbia | — | — | — | — | 5 | 21 | — | — | |||||||||||||||||||||||||||||||||||||||
| Illinois | — | 62 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
| Maryland | 13 | — | — | — | 13 | 13 | — | — | |||||||||||||||||||||||||||||||||||||||
| Pennsylvania | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
| Other States | 1 | — | — | — | — | — | 1 | — | |||||||||||||||||||||||||||||||||||||||
| Total Payments | $ | 81 | $ | 250 | $ | 128 | $ | 100 | $ | 150 | $ | 96 | $ | 57 | $ | 20 |
| For the Year Ended December 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||
| Exelon | ComEd | PECO | BGE | PHI | Pepco | DPL | ACE | ||||||||||||||||||||||||||||||||||||||||
| Federal | $ | 18 | $ | 40 | $ | (24) | $ | 29 | $ | 25 | $ | 14 | $ | 6 | $ | 9 | |||||||||||||||||||||||||||||||
| Delaware | 2 | — | — | — | 2 | — | — | — | |||||||||||||||||||||||||||||||||||||||
| District of Columbia | — | — | — | — | (6) | (8) | — | — | |||||||||||||||||||||||||||||||||||||||
| Illinois | — | (28) | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
| Maryland | 1 | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
| Pennsylvania | (1) | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
| Other States | (10) | (1) | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
| Total Payments (Refunds) | $ | 10 | $ | 11 | $ | (24) | $ | 29 | $ | 21 | $ | 6 | $ | 6 | $ | 9 |
(a)In 2025, Exelon received a one-time federal refund claim that reduced current year federal tax payments to a net zero.
Other Tax Matters
Tax Matters Agreement (Exelon)
In February 2022, in connection with the separation between Exelon and Constellation, the parties entered into a TMA. The TMA governs the respective rights, responsibilities, and obligations between Exelon and Constellation after the separation with respect to tax liabilities, refunds and attributes for open tax years that Constellation was part of Exelon’s consolidated group for U.S. federal, state, and local tax purposes.
Indemnification for Taxes. As a former subsidiary of Exelon, Constellation has joint and several liability with Exelon to the IRS and certain state jurisdictions relating to the taxable periods prior to the separation. The TMA specifies that Constellation is liable for their share of taxes required to be paid by Exelon with respect to taxable periods prior to the separation to the extent Constellation would have been responsible for such taxes under the existing Exelon tax sharing agreement when Constellation was included in Exelon's consolidated group. At December 31, 2025, there is no balance due to or from Constellation.
Combined Notes to Consolidated Financial Statements
(Dollars in millions, except per share data unless otherwise noted)
Note 11 — Income Taxes
Tax Refunds. The TMA specifies that Constellation is entitled to their share of any future tax refunds claimed by Exelon with respect to taxable periods prior to the separation to the extent that Constellation would have received such tax refunds under the existing Exelon tax sharing agreement when Constellation was included in Exelon's consolidated group. At December 31, 2025, there is no balance due to or from Constellation.
Tax Attributes. At the date of separation certain tax attributes, primarily tax credit carryforwards, that were generated by Constellation prior to the separation, were required by law to be allocated to Exelon. The TMA also provides that Exelon will reimburse Constellation when those allocated tax attribute carryforwards are utilized. In 2025, Exelon remitted $143 million of payments to Constellation for the utilization of pre-separation tax credit carryforwards. At December 31, 2025, Exelon recorded a payable of $175 million and $21 million in Other current liabilities and Other deferred credits and other liabilities, respectively, in the Consolidated Balance Sheet for tax attribute carryforwards that are expected to be utilized and reimbursed to Constellation.
Corporate Alternative Minimum Tax (All Registrants)
On August 16, 2022, the IRA was signed into law and implemented a new corporate alternative minimum tax (CAMT) that imposes a 15.0% tax on modified GAAP net income. Corporations will now pay the greater of 15.0% of financial statement pre-tax income (with certain adjustments) or their regular federal tax liability, which is federal taxable income x 21.0% federal corporate tax rate. Corporations are entitled to a tax credit (minimum tax credit) to the extent the CAMT liability exceeds the regular tax liability. This amount can be carried forward indefinitely and used in future years when regular tax exceeds the CAMT.
Beginning in 2023, based on the existing statue, Exelon and each of the Utility Registrants will be subject to and will report the CAMT on a separate Registrant basis in the Consolidated Statements of Operations and Comprehensive Income and the Consolidated Balance Sheets. The deferred tax asset related to the minimum tax credit carryforward will be realized to the extent Exelon’s consolidated deferred tax liabilities exceed the minimum tax credit carryforward. Exelon’s deferred tax liabilities are expected to exceed the minimum tax credit carryforward for the foreseeable future and thus no valuation allowance is required.
On September 12, 2024, the U.S. Treasury issued proposed regulations providing further guidance addressing the implementation of CAMT. The proposed regulations are consistent with Exelon’s prior interpretation and therefore there are no financial statement impacts. Exelon will continue to monitor and assess the potential financial statement impacts of final regulations or other guidance when issued.
On September 30, 2025, the U.S. Treasury issued interim guidance addressing the implementation of CAMT in the form of a notice. The guidance allows entities with regulated operations a repairs adjustment for CAMT purposes, however the provision was drafted in a manner that does not achieve that intended result. Thus, the guidance does not benefit Exelon and has no financial statement impact. Exelon will continue to monitor and assess the potential financial statement impacts of future regulations or other guidance when issued.
Allocation of Income Taxes to Regulated Utilities (All Registrants)
In Q2 2024, the IRS issued a series of PLRs, to another taxpayer, providing guidance with respect to the application of the tax normalization rules to the allocation of consolidated tax benefits among the members of a consolidated group associated with NOLC for ratemaking purposes. The rulings provide that for ratemaking purposes the tax benefit of NOLC should be reflected on a separate company basis not taking into consideration the utilization of losses by other affiliates. A PLR issued to another taxpayer may not be relied on as precedent.
For the Registrants, except for PECO, the methodology prescribed by the IRS in these PLRs could result in a material reduction of the regulatory liability established for EDITs arising from the TCJA corporate tax rate change that are being amortized and flowed through to customers as well as a reduction in the accumulated deferred income taxes included in rate base for ratemaking purposes. The Utility Registrants, except for PECO, filed PLR requests with the IRS confirming the treatment of the NOLC for ratemaking purposes. The Utility Registrants will record the impact, if any, upon receiving the PLR from the IRS.
One Big Beautiful Bill Act (All Registrants)
On July 4, 2025, the OBBBA was signed into law. The bill permanently extends expiring tax benefits of the TCJA and provides additional tax relief for individuals and businesses while accelerating the phase-out and curtailment
Combined Notes to Consolidated Financial Statements
(Dollars in millions, except per share data unless otherwise noted)
Note 11 — Income Taxes
of certain renewable energy tax credits enacted by the IRA. The tax law changes enacted as part of OBBBA will not have a direct material impact on the Registrants’ financial statements.
Long-Term Marginal State Income Tax Rate (All Registrants)
Quarterly, Exelon reviews and updates its marginal state income tax rates for material changes in state tax laws and state apportionment. The Registrants remeasure their existing deferred income tax balances to reflect the changes in marginal rates, which results in either an increase or a decrease to their net deferred income tax liability balances. Utility Registrants record corresponding regulatory liabilities or assets to the extent such amounts are probable of settlement or recovery through customer rates and an adjustment to income tax expense for all other amounts. In the third quarter of 2023, Exelon updated its marginal state income tax rates for changes in state apportionment. The changes in marginal rates in the third quarter resulted in a decrease of $54 million to the deferred tax liability at Exelon, and a corresponding adjustment to income tax expense, net of federal taxes. There were no impacts to ComEd, BGE, PHI, Pepco, DPL, and ACE for the year ended December 31, 2023. There were no impacts to Exelon, ComEd, BGE, PHI, Pepco, DPL, and ACE for the years ended December 31, 2025 and 2024.
| December 31, 2025 | Exelon | ||||||||||||||||||||||
| Decrease to Deferred Income Tax Liability and Income Tax Expense, Net of Federal Taxes | $ | — | |||||||||||||||||||||
| December 31, 2024 | |||||||||||||||||||||||
| Decrease to Deferred Income Tax Liability and Income Tax Expense, Net of Federal Taxes | — | ||||||||||||||||||||||
| December 31, 2023 | |||||||||||||||||||||||
| Decrease to Deferred Income Tax Liability and Income Tax Expense, Net of Federal Taxes | (54) | ||||||||||||||||||||||
Allocation of Tax Benefits (All Registrants)
The Utility Registrants are party to an agreement with Exelon and other subsidiaries of Exelon that provides for the allocation of consolidated tax liabilities and benefits (Tax Sharing Agreement). The Tax Sharing Agreement provides that each party is allocated an amount of tax similar to that which would be owed had the party been separately subject to tax. In addition, any net federal and state benefits attributable to Exelon are reallocated to the other Registrants. That allocation is treated as a contribution from Exelon to the party receiving the benefit.
The following table presents the allocation of tax benefits from Exelon under the Tax Sharing Agreement, for the year ended December 31, 2025, 2024, and 2023.
| ComEd | PECO | BGE | PHI | Pepco | DPL | ACE | ||||||||||||||||||||||||||||||||||||||
| December 31, 2025 | $ | 20 | $ | 14 | $ | 12 | $ | 23 | $ | 12 | $ | 7 | $ | 4 | ||||||||||||||||||||||||||||||
| December 31, 2024 | 30 | 15 | 14 | 16 | 9 | 5 | 2 | |||||||||||||||||||||||||||||||||||||
| December 31, 2023(a) | 13 | 19 | — | 10 | 4 | — | 2 |
(a)BGE and DPL did not record an allocation of federal tax benefits from Exelon under the Tax Sharing Agreement as a result of a tax net operating loss.
12. Retirement Benefits (All Registrants)
Exelon sponsors defined benefit pension and OPEB plans. Substantially all non-union employees hired on or after January 1, 2001, participate in cash balance pension plans. Effective January 1, 2009, substantially all newly-hired union-represented employees participate in cash balance pension plans. Effective February 1, 2018, most newly-hired BSC non-represented, non-craft employees are not eligible to participate in defined benefit pension plans; January 1, 2021, most newly hired utility management employees are not eligible; and certain newly-hired union employees, pursuant to their collective bargaining agreements, are not eligible. In lieu of pension participation, affected employees are eligible to receive an automatic company contribution in an Exelon defined contribution savings plan. Effective January 1, 2018, most newly hired non-represented, non-craft employees are not eligible for OPEB benefits. Effective January 1, 2021, most non-represented, non-craft employees who are under the age of 40 are not eligible for retiree health care benefits. Certain union represented employees are not eligible for retiree healthcare benefits pursuant to their collective bargaining
Combined Notes to Consolidated Financial Statements
(Dollars in millions, except per share data unless otherwise noted)
Note 12 — Retirement Benefits
agreements. Effective January 1, 2022, management employees retiring on or after that date are no longer eligible for retiree life insurance benefits.
The tables below show the pension and OPEB plans in which current and former employees of each operating company participated as of December 31, 2025:
| Operating Company**(a)** | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Name of Plan: | ComEd | PECO | BGE | PHI | Pepco | DPL | ACE | |||||||||||||||||||||||||||||||||||||||||||
| Qualified Pension Plans: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Exelon Corporation Retirement Program (ECRP) | X | X | X | X | X | X | X | |||||||||||||||||||||||||||||||||||||||||||
| Exelon Corporation Pension Plan for Bargaining Unit Employees (PPBU) | X | |||||||||||||||||||||||||||||||||||||||||||||||||
| Exelon Pension Plan (EPP) | X | X | X | X | X | X | X | |||||||||||||||||||||||||||||||||||||||||||
| Pepco Holdings LLC Retirement Plan (PHI Qualified) | X | X | X | X | X | X | X | |||||||||||||||||||||||||||||||||||||||||||
| Non-Qualified Pension Plans: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Exelon Corporation Supplemental Pension Benefit Plan and 2000 Excess Benefit Plan | X | X | X | |||||||||||||||||||||||||||||||||||||||||||||||
| Exelon Corporation Supplemental Management Retirement Plan | X | X | X | X | ||||||||||||||||||||||||||||||||||||||||||||||
| Constellation Energy Group, Inc. Senior Executive Supplemental Plan | X | X | ||||||||||||||||||||||||||||||||||||||||||||||||
| Constellation Energy Group, Inc. Supplemental Pension Plan | X | X | ||||||||||||||||||||||||||||||||||||||||||||||||
| Constellation Energy Group, Inc. Benefits Restoration Plan | X | X | X | |||||||||||||||||||||||||||||||||||||||||||||||
| Baltimore Gas & Electric Company Executive Benefit Plan | X | |||||||||||||||||||||||||||||||||||||||||||||||||
| Baltimore Gas & Electric Company Manager Benefit Plan | X | X | ||||||||||||||||||||||||||||||||||||||||||||||||
| Pepco Holdings LLC 2011 Supplemental Executive Retirement Plan | X | X | X | X | X | |||||||||||||||||||||||||||||||||||||||||||||
| Conectiv Supplemental Executive Retirement Plan | X | X | X | |||||||||||||||||||||||||||||||||||||||||||||||
| Pepco Holdings LLC Combined Executive Retirement Plan | X | X |
| Operating Company**(a)** | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Name of Plan: | ComEd | PECO | BGE | PHI | Pepco | DPL | ACE | |||||||||||||||||||||||||||||||||||||||||||
| OPEB Plans: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| PECO Energy Company Retiree Medical Plan (East) | X | X | X | X | X | X | X | |||||||||||||||||||||||||||||||||||||||||||
| Exelon Corporation Health Care Program (West) | X | X | X | X | X | X | X | |||||||||||||||||||||||||||||||||||||||||||
| Pepco Holdings LLC Welfare Plan for Retirees (PHI PRW) | X | X | X | X | X | X | ||||||||||||||||||||||||||||||||||||||||||||
| Exelon Corporation Employees’ Life Insurance Plan | X | X | X | |||||||||||||||||||||||||||||||||||||||||||||||
| Exelon Corporation Health Reimbursement Arrangement Plan | X | X | X | |||||||||||||||||||||||||||||||||||||||||||||||
| BGE Retiree Medical Plan | X | X | X | X | X | X | X | |||||||||||||||||||||||||||||||||||||||||||
| BGE Retiree Dental Plan | X | |||||||||||||||||||||||||||||||||||||||||||||||||
| Exelon Retiree Medical Plan of Constellation Energy Nuclear Group, LLC | X | X | X | |||||||||||||||||||||||||||||||||||||||||||||||
| Exelon Retiree Dental Plan of Constellation Energy Nuclear Group, LLC | X | X | X |
(a)Employees generally remain in their legacy benefit plans when transferring between operating companies.
Combined Notes to Consolidated Financial Statements
(Dollars in millions, except per share data unless otherwise noted)
Note 12 — Retirement Benefits
Exelon’s traditional and cash balance pension plans are intended to be tax-qualified defined benefit plans. Exelon has elected that the trusts underlying these plans be treated as qualified trusts under the IRC. If certain conditions are met, Exelon can deduct payments made to the qualified trusts, subject to certain IRC limitations.
Benefit Obligations, Plan Assets, and Funded Status
During the first quarter of 2025, Exelon received an updated valuation of its pension and OPEB to reflect actual census data as of January 1, 2025. This valuation resulted in an increase to the pension obligation of $1 million and an increase to the OPEB obligation and asset of $6 million and $2 million, respectively. Additionally, AOCI decreased by $5 million (after-tax) and regulatory assets increased by $8 million and liabilities decreased by $3 million.
The following tables provide a rollforward of the changes in the benefit obligations and plan assets of Exelon for the most recent two years for all plans combined:
| Pension Benefits | OPEB | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Change in benefit obligation: | |||||||||||||||||||||||
| Net benefit obligation as of the beginning of the year | $ | 10,545 | $ | 10,988 | $ | 1,837 | $ | 1,908 | |||||||||||||||
| Service cost | 154 | 166 | 25 | 27 | |||||||||||||||||||
| Interest cost | 586 | 565 | 101 | 96 | |||||||||||||||||||
| Plan participants’ contributions | — | — | 26 | 27 | |||||||||||||||||||
| Actuarial loss (gain)⁽ᵃ⁾ | 294 | (331) | 112 | (32) | |||||||||||||||||||
| Settlements | (5) | (22) | — | — | |||||||||||||||||||
| Gross benefits paid | (837) | (821) | (189) | (189) | |||||||||||||||||||
| Net benefit obligation as of the end of the year | $ | 10,737 | $ | 10,545 | $ | 1,912 | $ | 1,837 |
| Pension Benefits | OPEB | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Change in plan assets: | |||||||||||||||||||||||
| Fair value of net plan assets as of the beginning of the year | $ | 8,785 | $ | 9,402 | $ | 1,355 | $ | 1,355 | |||||||||||||||
| Actual return on plan assets | 739 | 100 | 151 | 108 | |||||||||||||||||||
| Employer contributions | 293 | 126 | 49 | 54 | |||||||||||||||||||
| Plan participants’ contributions | — | — | 26 | 27 | |||||||||||||||||||
| Gross benefits paid | (837) | (821) | (189) | (189) | |||||||||||||||||||
| Settlements | (5) | (22) | — | — | |||||||||||||||||||
| Fair value of net plan assets as of the end of the year | $ | 8,975 | $ | 8,785 | $ | 1,392 | $ | 1,355 |
(a)The pension and OPEB loss in 2025 primarily reflect a decrease in the discount rate. The pension and OPEB gains in 2024 primarily reflect an increase in the discount rate.
Combined Notes to Consolidated Financial Statements
(Dollars in millions, except per share data unless otherwise noted)
Note 12 — Retirement Benefits
Exelon presents its benefit obligations and plan assets net on its Consolidated Balance Sheets within the following line items:
| Pension Benefits | OPEB | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Other noncurrent assets | $ | — | $ | — | $ | 44 | $ | 10 | |||||||||||||||
| Other current liabilities | (13) | (15) | (18) | (20) | |||||||||||||||||||
| Pension obligations | (1,749) | (1,745) | — | — | |||||||||||||||||||
| Non-pension postretirement benefit obligations | — | — | (546) | (472) | |||||||||||||||||||
| Unfunded status, net (net benefit obligation less plan assets) | $ | (1,762) | $ | (1,760) | $ | (520) | $ | (482) |
The following table provides the ABO and fair value of plan assets for all pension plans with an ABO in excess of plan assets. Information for pension and OPEB plans with projected benefit obligations (PBO) and accumulated postretirement benefit obligations (APBO), respectively, in excess of plan assets have been disclosed in the Obligations and Plan Assets table above as all pension and a majority of the OPEB plans are underfunded.
| Exelon | |||||||||||||||||
| 2025 | 2024 | ||||||||||||||||
| ABO | $ | 10,294 | $ | 10,076 | |||||||||||||
| Fair value of net plan assets | 8,975 | 8,785 |
Components of Net Periodic Benefit Costs
The majority of the 2025 pension benefit cost for the Exelon-sponsored plans is calculated using an expected long-term rate of return on plan assets of 7.00% and a discount rate of 5.68%. The majority of the 2025 OPEB cost is calculated using an expected long-term rate of return on plan assets of 6.50% for funded plans and a discount rate of 5.64%.
A portion of the net periodic benefit cost for all plans is capitalized in the Consolidated Balance Sheets. The following table presents the components of Exelon’s net periodic benefit costs, prior to capitalization, for the years ended December 31, 2025, 2024, and 2023.
| Pension Benefits | OPEB | ||||||||||||||||||||||||||||||||||
| 2025 | 2024 | 2023 | 2025 | 2024 | 2023 | ||||||||||||||||||||||||||||||
| Components of net periodic benefit cost: | |||||||||||||||||||||||||||||||||||
| Service cost | $ | 154 | $ | 166 | $ | 155 | $ | 25 | $ | 27 | $ | 26 | |||||||||||||||||||||||
| Interest cost | 586 | 565 | 578 | 101 | 96 | 101 | |||||||||||||||||||||||||||||
| Expected return on assets | (713) | (736) | (755) | (84) | (84) | (83) | |||||||||||||||||||||||||||||
| Amortization of: | |||||||||||||||||||||||||||||||||||
| Prior service cost (credit) | 2 | 2 | 2 | (8) | (8) | (10) | |||||||||||||||||||||||||||||
| Actuarial loss (gain) | 212 | 214 | 166 | (3) | — | (2) | |||||||||||||||||||||||||||||
| Settlement and other charges | 3 | 10 | 20 | — | — | — | |||||||||||||||||||||||||||||
| Net periodic benefit cost | $ | 244 | $ | 221 | $ | 166 | $ | 31 | $ | 31 | $ | 32 |
Combined Notes to Consolidated Financial Statements
(Dollars in millions, except per share data unless otherwise noted)
Note 12 — Retirement Benefits
Cost Allocation to Exelon Subsidiaries
PHI and each of the Utility Registrants account for their participation in Exelon’s pension and OPEB plans by applying multi-employer accounting. Exelon allocates costs related to its pension and OPEB plans to its subsidiaries based on both active and retired employee participation in each plan.
The amounts below represent the Registrants' allocated pension and OPEB costs (benefits). For Exelon, the service cost component is included in Operating and maintenance expense and Property, plant, and equipment, net while the non-service cost components are included in Other, net and Regulatory assets. For PHI and each of the Utility Registrants, which apply multi-employer accounting, the service cost and non-service cost components are included in Operating and maintenance expense and Property, plant, and equipment, net in their consolidated financial statements.
| For the Years Ended December 31, | Exelon | ComEd | PECO | BGE | PHI | Pepco | DPL | ACE | |||||||||||||||||||||||||||||||||||||||
| 2025 | $ | 273 | $ | 85 | $ | 7 | $ | 62 | $ | 96 | $ | 35 | $ | 17 | $ | 13 | |||||||||||||||||||||||||||||||
| 2024 | 252 | 72 | (1) | 59 | 93 | 32 | 15 | 12 | |||||||||||||||||||||||||||||||||||||||
| 2023 | 198 | 26 | (14) | 56 | 99 | 34 | 18 | 13 |
Components of AOCI and Regulatory Assets
Exelon recognizes the overfunded or underfunded status of defined benefit pension and OPEB plans as an asset or liability on its Consolidated Balance Sheets, with offsetting entries to AOCI and Regulatory assets (liabilities). A portion of current year actuarial (gains) losses and prior service costs (credits) are capitalized in Exelon’s Consolidated Balance Sheets to reflect the expected regulatory recovery of these amounts, which would otherwise be recorded to AOCI. The following tables provide the components of AOCI and Regulatory assets (liabilities) for Exelon for the years ended December 31, 2025, 2024, and 2023 for all plans combined.
| Pension Benefits | OPEB | ||||||||||||||||||||||||||||||||||
| 2025 | 2024 | 2023 | 2025 | 2024 | 2023 | ||||||||||||||||||||||||||||||
| Changes in plan assets and benefit obligations recognized in AOCI and Regulatory assets (liabilities): | |||||||||||||||||||||||||||||||||||
| Current year actuarial loss (gain) | $ | 268 | $ | 305 | $ | 523 | $ | 45 | $ | (56) | $ | 30 | |||||||||||||||||||||||
| Amortization of actuarial (loss) gain | (212) | (214) | (166) | 3 | — | 2 | |||||||||||||||||||||||||||||
| Current year prior service cost | — | — | 4 | — | — | — | |||||||||||||||||||||||||||||
| Amortization of prior service (cost) credit | (2) | (2) | (2) | 8 | 8 | 10 | |||||||||||||||||||||||||||||
| Settlements | (3) | (10) | (20) | — | — | — | |||||||||||||||||||||||||||||
| Total recognized in AOCI and Regulatory assets (liabilities) | $ | 51 | $ | 79 | $ | 339 | $ | 56 | $ | (48) | $ | 42 | |||||||||||||||||||||||
| Total recognized in AOCI | $ | 32 | $ | 56 | $ | 99 | $ | 8 | $ | (1) | $ | 4 | |||||||||||||||||||||||
| Total recognized in Regulatory assets (liabilities) | $ | 19 | $ | 23 | $ | 240 | $ | 48 | $ | (47) | $ | 38 |
Combined Notes to Consolidated Financial Statements
(Dollars in millions, except per share data unless otherwise noted)
Note 12 — Retirement Benefits
The following table provides the components of gross AOCI and Regulatory assets (liabilities) for Exelon that have not been recognized as components of periodic benefit cost as of December 31, 2025 and 2024 for all plans combined:
| Pension Benefits | OPEB | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Prior service cost (credit) | $ | 16 | $ | 19 | $ | (28) | $ | (37) | |||||||||||||||
| Actuarial loss (gain) | 4,082 | 4,029 | (109) | (157) | |||||||||||||||||||
| Total | $ | 4,098 | $ | 4,048 | $ | (137) | $ | (194) | |||||||||||||||
| Total included in AOCI | $ | 1,060 | $ | 1,028 | $ | (10) | $ | (18) | |||||||||||||||
| Total included in Regulatory assets (liabilities) | $ | 3,038 | $ | 3,020 | $ | (127) | $ | (176) |
Average Remaining Service Period
For pension benefits, Exelon amortizes its unrecognized prior service costs (credits) and certain actuarial (gains) losses, as applicable, based on participants’ average remaining service periods.
For OPEB, Exelon amortizes its unrecognized prior service costs (credits) over participants’ average remaining service period to benefit eligibility age and amortizes certain actuarial (gains) losses over participants’ average remaining service period to expected retirement. The resulting average remaining service periods for pension and OPEB were as follows:
| 2025 | 2024 | 2023 | ||||||||||||||||||
| Pension plans | 12.4 | 12.5 | 12.6 | |||||||||||||||||
| OPEB plans: | ||||||||||||||||||||
| Benefit Eligibility Age | 7.7 | 7.8 | 8.1 | |||||||||||||||||
| Expected Retirement | 8.7 | 9.0 | 9.3 |
Assumptions
The measurement of the plan obligations and costs of providing benefits under Exelon’s defined benefit and OPEB plans involves various factors, including the development of valuation assumptions and inputs and accounting policy elections. The measurement of benefit obligations and costs is impacted by several assumptions and inputs, as shown below, among other factors. When developing the required assumptions, Exelon considers historical information as well as future expectations.
Expected Rate of Return. In determining the EROA, Exelon considers historical economic indicators (including inflation and GDP growth) that impact asset returns, as well as expectations regarding future long-term capital market performance, weighted by Exelon’s target asset class allocations.
Mortality. The mortality assumption is composed of a base table that represents the current expectation of life expectancy of the population adjusted by an improvement scale that attempts to anticipate future improvements in life expectancy. For the years ended December 31, 2025 and 2024, Exelon’s mortality assumption utilizes the SOA 2019 base table (Pri-2012) and MP-2021 improvement scale adjusted to use Proxy SSA ultimate improvement rates.
For Exelon, the following assumptions were used to determine the benefit obligations for the plans as of December 31, 2025 and 2024. Assumptions used to determine year-end benefit obligations are the assumptions used to estimate the subsequent year’s net periodic benefit costs.
Combined Notes to Consolidated Financial Statements
(Dollars in millions, except per share data unless otherwise noted)
Note 12 — Retirement Benefits
| Pension Benefits | OPEB | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Discount rate(a) | 5.42 | % | 5.68 | % | 5.34 | % | 5.64 | % | |||||||||||||||
| Investment crediting rate(b) | 5.92 | % | 5.69 | % | N/A | N/A | |||||||||||||||||
| Rate of compensation increase | 3.75 | % | 3.75 | % | 3.75 | % | 3.75 | % | |||||||||||||||
| Mortality table | Pri-2012 table with MP- 2021 improvement scale (adjusted) | Pri-2012 table with MP- 2021 improvement scale (adjusted) | Pri-2012 table with MP- 2021 improvement scale (adjusted) | Pri-2012 table with MP- 2021 improvement scale (adjusted) | |||||||||||||||||||
| Health care cost trend on covered charges | N/A | N/A | Initial trend rate of 6.50% and ultimate trend rate of 5.00% | Initial and ultimate trend rate of 5.00% |
(a)The discount rates above represent the blended rates used to determine the majority of Exelon’s pension and OPEB obligations. Certain benefit plans used individual rates, which range from 5.21% - 5.54% and 5.27% - 5.34% for pension and OPEB plans, respectively, as of December 31, 2025 and 5.56% - 5.76% and 5.60% - 5.64% for pension and OPEB plans, respectively, as of December 31, 2024.
(b)The investment crediting rate above represents a weighted average rate.
The following assumptions were used to determine the net periodic benefit cost for Exelon for the years ended December 31, 2025, 2024 and 2023:
| Pension Benefits | OPEB | ||||||||||||||||||||||||||||||||||
| 2025 | 2024 | 2023 | 2025 | 2024 | 2023 | ||||||||||||||||||||||||||||||
| Discount rate(a) | 5.68 | % | 5.19 | % | 5.53 | % | 5.64 | % | 5.17 | % | 5.51 | % | |||||||||||||||||||||||
| Investment crediting rate(b) | 5.69 | % | 5.03 | % | 5.07 | % | N/A | N/A | N/A | ||||||||||||||||||||||||||
| Expected return on plan assets(c) | 7.00 | % | 7.00 | % | 7.00 | % | 6.50 | % | 6.50 | % | 6.50 | % | |||||||||||||||||||||||
| Rate of compensation increase | 3.75 | % | 3.75 | % | 3.75 | % | 3.75 | % | 3.75 | % | 3.75 | % | |||||||||||||||||||||||
| Mortality table | Pri-2012 table with MP- 2021 improvement scale (adjusted) | Pri-2012 table with MP- 2021 improvement scale (adjusted) | Pri-2012 table with MP- 2021 improvement scale (adjusted) | Pri-2012 table with MP- 2021 improvement scale (adjusted) | Pri-2012 table with MP- 2021 improvement scale (adjusted) | Pri-2012 table with MP- 2021 improvement scale (adjusted) | |||||||||||||||||||||||||||||
| Health care cost trend on covered charges | N/A | N/A | N/A | Initial and ultimate rate of 5.00% | Initial and ultimate rate of 5.00% | Initial and ultimate rate of 5.00% |
(a)The discount rates above represent the blended rates used to establish the majority of Exelon’s pension and OPEB costs. Certain benefit plans used individual rates, which range from 5.56%-5.76% and 5.60%-5.64% for pension and OPEB plans, respectively, for the year ended December 31, 2025; 5.11%-5.27% and 5.15%-5.17% for pension and OPEB plans; respectively, for the year ended December 31, 2024; and 5.46%-5.60% and 5.49%-5.51% for pension and OPEB plans, respectively, for the year ended December 31, 2023.
(b)The investment crediting rate above represents a weighted average rate.
(c)Not applicable to pension and OPEB plans that do not have plan assets.
Contributions
Exelon allocates contributions related to its ECRP and PPBU pension plans and East and West OPEB plans to its subsidiaries based on accounting cost. For the EPP pension plan, PHI Qualified, and PHI PRW plans, pension
Combined Notes to Consolidated Financial Statements
(Dollars in millions, except per share data unless otherwise noted)
Note 12 — Retirement Benefits
and OPEB contributions are allocated to the subsidiaries based on employee participation (both active and retired). The following table provides contributions to the pension and OPEB plans:
| Pension Benefits | OPEB | |||||||||||||||||||||||||||||||||||||
| 2025 | 2024 | 2023 | 2025 | 2024 | 2023 | |||||||||||||||||||||||||||||||||
| Exelon | $ | 293 | $ | 126 | $ | 75 | $ | 49 | $ | 54 | $ | 54 | ||||||||||||||||||||||||||
| ComEd | 189 | 7 | 24 | 20 | 18 | 17 | ||||||||||||||||||||||||||||||||
| PECO | 11 | 3 | 1 | 2 | 1 | — | ||||||||||||||||||||||||||||||||
| BGE | 26 | 17 | — | 18 | 20 | 19 | ||||||||||||||||||||||||||||||||
| PHI | 42 | 74 | 8 | 8 | 12 | 16 | ||||||||||||||||||||||||||||||||
| Pepco | 1 | 1 | 1 | 8 | 8 | 11 | ||||||||||||||||||||||||||||||||
| DPL | 1 | 1 | 2 | — | 2 | 2 | ||||||||||||||||||||||||||||||||
| ACE | 4 | 7 | — | — | 2 | 3 |
Management considers various factors when making pension funding decisions, including actuarially determined minimum contribution requirements under ERISA, contributions required to avoid benefit restrictions and at-risk status as defined by the Pension Protection Act of 2006 (the Act), management of the pension obligation, and regulatory implications. The Act requires the attainment of certain funding levels to avoid benefit restrictions (such as an inability to pay lump sums or to accrue benefits prospectively), and at-risk status (which triggers higher minimum contribution requirements and participant notification). The projected contributions below reflect a funding strategy to make annual contributions with the objective of achieving 100% funded status on an ABO basis over time. This funding strategy helps minimize volatility of future period required pension contributions. Based on this funding strategy and current market conditions, which are subject to change, Exelon’s estimated annual qualified pension contributions will be approximately $325 million in 2026. Unlike the qualified pension plans, Exelon’s non-qualified pension plans are not funded, given they are not subject to statutory minimum contribution requirements.
While OPEB plans are also not subject to statutory minimum contribution requirements, Exelon does fund certain of its plans. For Exelon's funded OPEB plans, contributions generally equal accounting costs, however, Exelon’s management has historically considered several factors in determining the level of contributions to its OPEB plans, including liabilities management, levels of benefit claims paid, and regulatory implications (amounts deemed prudent to meet regulatory expectations and best assure continued rate recovery). The amounts below include benefit payments related to unfunded plans.
The following table provides all Registrants planned contributions to the qualified pension plans, planned benefit payments to non-qualified pension plans, and planned contributions to OPEB plans in 2026:
| Qualified Pension Plans | Non-Qualified Pension Plans | OPEB | |||||||||||||||
| Exelon | $ | 325 | $ | 19 | $ | 48 | |||||||||||
| ComEd | 217 | 3 | 22 | ||||||||||||||
| PECO | 9 | 1 | 4 | ||||||||||||||
| BGE | 32 | 2 | 14 | ||||||||||||||
| PHI | 48 | 7 | 6 | ||||||||||||||
| Pepco | 1 | — | 6 | ||||||||||||||
| DPL | 1 | — | — | ||||||||||||||
| ACE | 14 | — | — |
Combined Notes to Consolidated Financial Statements
(Dollars in millions, except per share data unless otherwise noted)
Note 12 — Retirement Benefits
Estimated Future Benefit Payments
Estimated future benefit payments to participants in all of the pension plans and postretirement benefit plans as of December 31, 2025 were:
| Pension Benefits | OPEB | ||||||||||
| 2026 | $ | 812 | $ | 156 | |||||||
| 2027 | 816 | 155 | |||||||||
| 2028 | 813 | 154 | |||||||||
| 2029 | 817 | 152 | |||||||||
| 2030 | 807 | 151 | |||||||||
| 2031 through 2035 | 3,985 | 724 | |||||||||
| Total estimated future benefits payments through 2035 | $ | 8,050 | $ | 1,492 |
Plan Assets
Investment Strategy. On a regular basis, Exelon evaluates its investment strategy to ensure plan assets will be sufficient to pay plan benefits when due. As part of this ongoing evaluation, Exelon may make changes to its targeted asset allocation and investment strategy.
Exelon has developed and implemented a liability hedging investment strategy for its qualified pension plans that has reduced the volatility of its pension assets relative to its pension liabilities. Exelon is likely to continue to gradually increase the liability hedging portfolio as the funded status of its plans improves. The overall objective is to achieve attractive risk-adjusted returns that will balance the liquidity requirements of the plans’ liabilities while striving to minimize the risk of significant losses. Trust assets for Exelon’s OPEB plans are managed in a diversified investment strategy that prioritizes maximizing liquidity and returns while minimizing asset volatility.
Actual asset returns have an impact on the costs reported for the Exelon-sponsored pension and OPEB plans. The actual asset returns across Exelon’s pension and OPEB plans for the year ended December 31, 2025 were 8.95% and 12.59%, respectively, compared to an expected long-term return assumption of 7.00% and 6.50%, respectively. Exelon used an EROA of 7.00% and 6.50% to estimate its 2026 pension and OPEB costs, respectively.
Exelon’s pension and OPEB plan target asset allocations as of December 31, 2025 and 2024 were as follows:
| December 31, 2025 | December 31, 2024 | ||||||||||||||||||||||
| Asset Category | Pension Benefits | OPEB | Pension Benefits | OPEB | |||||||||||||||||||
| Equity securities | 24 | % | 42 | % | 28 | % | 44 | % | |||||||||||||||
| Fixed income securities | 43 | % | 48 | % | 44 | % | 41 | % | |||||||||||||||
| Alternative investments(a) | 33 | % | 10 | % | 28 | % | 15 | % | |||||||||||||||
| Total | 100 | % | 100 | % | 100 | % | 100 | % |
(a)Alternative investments include private equity, hedge funds, real estate, and private credit.
Concentrations of Credit Risk. Exelon evaluated its pension and OPEB plans’ asset portfolios for the existence of significant concentrations of credit risk as of December 31, 2025. Types of concentrations that were evaluated include, but are not limited to, investment concentrations in a single entity, type of industry, foreign country, and individual fund. As of December 31, 2025, there were no significant concentrations (defined as greater than 10% of plan assets) of risk in Exelon’s pension and OPEB plan assets.
Combined Notes to Consolidated Financial Statements
(Dollars in millions, except per share data unless otherwise noted)
Note 12 — Retirement Benefits
Fair Value Measurements
The following tables present pension and OPEB plan assets measured and recorded at fair value in Exelon's Consolidated Balance Sheets on a recurring basis and their level within the fair value hierarchy as of December 31, 2025 and 2024:
| December 31, 2025 | December 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Level 1 | Level 2 | Level 3 | Not Subject to Leveling | Total | Level 1 | Level 2 | Level 3 | Not Subject to Leveling | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Pension plan assets**(a)** | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Cash and cash equivalents | $ | 225 | $ | — | $ | — | $ | — | $ | 225 | $ | 205 | $ | — | $ | — | $ | — | $ | 205 | |||||||||||||||||||||||||||||||||||||||
| Equities(b) | 1,113 | — | — | 1,438 | 2,551 | 1,127 | — | 1 | 1,361 | 2,489 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Fixed income: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| U.S. Treasury and agencies | 1,306 | 206 | — | — | 1,512 | 1,333 | 199 | — | — | 1,532 | |||||||||||||||||||||||||||||||||||||||||||||||||
| State and municipal debt | — | 30 | — | — | 30 | — | 32 | — | — | 32 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Corporate debt | — | 1,622 | 12 | — | 1,634 | — | 1,551 | 16 | — | 1,567 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Other(b) | — | 223 | — | 608 | 831 | — | 25 | — | 618 | 643 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Fixed income subtotal | 1,306 | 2,081 | 12 | 608 | 4,007 | 1,333 | 1,807 | 16 | 618 | 3,774 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Private equity | — | — | 17 | 1,237 | 1,254 | — | — | — | 1,249 | 1,249 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Hedge funds | — | — | — | 341 | 341 | — | — | — | 464 | 464 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Real estate | — | — | — | 719 | 719 | — | — | — | 730 | 730 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Private credit | — | — | — | 539 | 539 | — | — | — | 544 | 544 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Pension plan assets subtotal | $ | 2,644 | $ | 2,081 | $ | 29 | $ | 4,882 | $ | 9,636 | $ | 2,665 | $ | 1,807 | $ | 17 | $ | 4,966 | $ | 9,455 | |||||||||||||||||||||||||||||||||||||||
| OPEB plan assets**(a)** | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Cash and cash equivalents | $ | 34 | $ | — | $ | — | $ | — | $ | 34 | $ | 44 | $ | — | $ | — | $ | — | $ | 44 | |||||||||||||||||||||||||||||||||||||||
| Equities | 464 | 1 | — | 136 | 601 | 437 | 1 | — | 188 | 626 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Fixed income: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| U.S. Treasury and agencies | 42 | 31 | — | — | 73 | 18 | 34 | — | — | 52 | |||||||||||||||||||||||||||||||||||||||||||||||||
| State and municipal debt | — | 98 | — | — | 98 | — | 2 | — | — | 2 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Corporate debt | — | 26 | — | — | 26 | — | 32 | — | — | 32 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Other | 1 | 21 | — | 394 | 416 | 166 | 2 | — | 262 | 430 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Fixed income subtotal | 43 | 176 | — | 394 | 613 | 184 | 70 | — | 262 | 516 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Hedge funds | — | — | — | 36 | 36 | — | — | — | 75 | 75 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Real estate | — | — | — | 92 | 92 | — | — | — | 78 | 78 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Private credit | — | — | — | 13 | 13 | — | — | — | 16 | 16 | |||||||||||||||||||||||||||||||||||||||||||||||||
| OPEB plan assets subtotal | $ | 541 | $ | 177 | $ | — | $ | 671 | $ | 1,389 | $ | 665 | $ | 71 | $ | — | $ | 619 | $ | 1,355 | |||||||||||||||||||||||||||||||||||||||
| Total pension and OPEB plan assets**(c)** | $ | 3,185 | $ | 2,258 | $ | 29 | $ | 5,553 | $ | 11,025 | $ | 3,330 | $ | 1,878 | $ | 17 | $ | 5,585 | $ | 10,810 |
Combined Notes to Consolidated Financial Statements
(Dollars in millions, except per share data unless otherwise noted)
Note 12 — Retirement Benefits
(a)See Note 15—Fair Value of Financial Assets and Liabilities for a description of levels within the fair value hierarchy.
(b)Includes derivative instruments of $(12) million and $(21) million for the years ended December 31, 2025 and 2024, respectively, which have total notional amounts of $5,284 million and $5,123 million as of December 31, 2025 and 2024, respectively. The notional principal amounts for these instruments provide one measure of the transaction volume outstanding as of the fiscal years ended and do not represent the amount of Exelon's exposure to credit or market loss.
(c)Excludes net liabilities of $658 million and $670 million as of December 31, 2025 and 2024, respectively, which include certain derivative assets that have notional amounts of $60 million and $41 million as of December 31, 2025 and 2024, respectively. These items are required to reconcile to the fair value of net plan assets and consist primarily of receivables or payables related to pending securities sales and purchases, interest and dividends receivable, and repurchase agreement obligations. The repurchase agreements generally have maturities ranging from 0 - 6 months.
The following table presents the reconciliation of Level 3 assets and liabilities for Exelon measured at fair value for pension and OPEB plans for the years ended December 31, 2025 and 2024:
| Fixed Income | Equities | Private Equity | Total | ||||||||||||||||||||||||||||||||||||||
| Pension Assets | |||||||||||||||||||||||||||||||||||||||||
| Balance as of January 1, 2025 | $ | 16 | $ | 1 | $ | — | $ | 17 | |||||||||||||||||||||||||||||||||
| Actual return on plan assets: | |||||||||||||||||||||||||||||||||||||||||
| Relating to assets still held as of the reporting date | — | (1) | — | (1) | |||||||||||||||||||||||||||||||||||||
| Purchases, sales and settlements: | |||||||||||||||||||||||||||||||||||||||||
| Settlements | (4) | — | — | (4) | |||||||||||||||||||||||||||||||||||||
| Level 3 transfers in | — | — | 17 | 17 | |||||||||||||||||||||||||||||||||||||
| Balance as of December 31, 2025 | $ | 12 | $ | — | $ | 17 | $ | 29 | |||||||||||||||||||||||||||||||||
| Fixed Income | Equities | Private Equity | Total | ||||||||||||||||||||||||||||||||||||||
| Pension Assets | |||||||||||||||||||||||||||||||||||||||||
| Balance as of January 1, 2024 | $ | 9 | $ | 1 | $ | — | $ | 10 | |||||||||||||||||||||||||||||||||
| Actual return on plan assets: | |||||||||||||||||||||||||||||||||||||||||
| Relating to assets still held as of the reporting date | (1) | — | — | (1) | |||||||||||||||||||||||||||||||||||||
| Purchases, sales and settlements: | |||||||||||||||||||||||||||||||||||||||||
| Purchases | 2 | — | — | 2 | |||||||||||||||||||||||||||||||||||||
| Level 3 transfers in | 6 | — | — | 6 | |||||||||||||||||||||||||||||||||||||
| Balance as of December 31, 2024 | $ | 16 | $ | 1 | $ | — | $ | 17 | |||||||||||||||||||||||||||||||||
_
Valuation Techniques Used to Determine Fair Value
The techniques used to fair value the pension and OPEB assets invested in cash equivalents are the same as the valuation techniques used to determine the fair value of financial assets. See Cash Equivalents in Note 15 — Fair Value of Financial Assets and Liabilities for further information. Below outlines the techniques used to fair value the pension and OPEB assets invested in equities, fixed income, derivative instruments, private credit, private equity, real estate, and hedge funds.
Equities. These investments consist of individually held equity securities, equity mutual funds, and equity commingled funds in domestic and foreign markets. With respect to individually held equity securities, the trustees obtain prices from pricing services, whose prices are generally obtained from direct feeds from market exchanges, which Exelon is able to independently corroborate. Equity securities held individually, including real estate investment trusts, rights, and warrants, are primarily traded on exchanges that contain only actively traded securities due to the volume trading requirements imposed by these exchanges. The equity securities that are held directly by the trust funds are valued based on quoted prices in active markets and categorized as Level 1. Certain equity securities have been categorized as Level 2 because they are based on evaluated prices that reflect observable market information, such as actual trade information or similar securities. Certain private
Combined Notes to Consolidated Financial Statements
(Dollars in millions, except per share data unless otherwise noted)
Note 12 — Retirement Benefits
placement equity securities are categorized as Level 3 because they are not publicly traded and are priced using significant unobservable inputs.
Equity commingled funds and mutual funds are maintained by investment companies, and fund investments are held in accordance with a stated set of fund objectives. The values of some of these funds are publicly quoted. For mutual funds which are publicly quoted, the funds are valued based on quoted prices in active markets and have been categorized as Level 1. For equity commingled funds and mutual funds that are not publicly quoted, the fund administrators value the funds using the NAV per fund share, derived from the quoted prices in active markets on the underlying securities and are not classified within the fair value hierarchy. These investments can typically be redeemed monthly or more frequently, with 30 or less days of notice and without further restrictions.
Fixed income. Fixed income investments include a broad range of debt securities such as corporate, government, municipal, and asset and mortgage‑backed securities, as well as fixed income commingled funds and mutual funds. The trustees obtain multiple prices from pricing vendors whenever possible, which enables cross-provider validations in addition to checks for unusual daily movements. A primary price source is identified based on asset type, class, or issue for each security. With respect to individually held fixed income securities, the trustees monitor prices supplied by pricing services and may use a supplemental price source or change the primary price source of a given security if the portfolio managers challenge an assigned price and the trustees determine another price source is considered to be preferable. Exelon has obtained an understanding of how these prices are derived, including the nature and observability of the inputs used in deriving such prices. Additionally, Exelon selectively corroborates the fair values of securities by comparison to other market-based price sources. Investments in U.S. Treasury securities have been categorized as Level 1 because they trade in highly liquid and transparent markets. Certain private placement fixed income securities have been categorized as Level 3 because they are priced using certain significant unobservable inputs and are typically illiquid. The remaining fixed income securities, including certain other fixed income investments, are based on evaluated prices that reflect observable market information, such as actual trade information of similar securities, adjusted for observable differences and are categorized as Level 2.
Other fixed income investments include fixed income commingled funds and mutual funds, which are maintained by investment companies and hold fund investments in accordance with a stated set of fund objectives. The values of some of these funds are publicly quoted. For mutual funds which are publicly quoted, the funds are valued based on quoted prices in active markets and have been categorized as Level 1. For fixed income commingled funds and mutual funds that are not publicly quoted, the fund administrators value the funds using the NAV per fund share, derived from the quoted prices in active markets of the underlying securities and are not classified within the fair value hierarchy. These investments typically can be redeemed monthly or more frequently, with 30 or less days of notice and without further restrictions.
Derivative instruments. These instruments, consisting primarily of futures and swaps to manage risk, are recorded at fair value. Over-the-counter derivatives are valued daily, based on quoted prices in active markets and trade in open markets, and have been categorized as Level 1. Derivative instruments other than over-the-counter derivatives are valued based on external price data of comparable securities and have been categorized as Level 2.
Private credit. Private credit investments primarily consist of investments in private debt strategies. These investments are generally less liquid assets with an underlying term of 3 to 5 years and are intended to be held to maturity. The fair value of these investments is determined by the fund manager or administrator using a combination of valuation models including cost models, market models, and income models and typically cannot be redeemed until maturity of the term loan. Managed private credit fund investments are not classified within the fair value hierarchy because their fair value is determined using NAV or its equivalent as a practical expedient.
Private equity. These investments include those in limited partnerships that invest in operating companies that are not publicly traded on a stock exchange such as leveraged buyouts, growth capital, venture capital, distressed investments, and investments in natural resources. These investments typically cannot be redeemed and are generally liquidated over a period of 8 to 10 years from the initial investment date, which is based on Exelon's understanding of the investment funds. Private equity valuations are reported by the fund manager and are based on the valuation of the underlying investments, which include unobservable inputs such as cost, operating results, discounted future cash flows, and market based comparable data. The fair value of private equity investments is determined using NAV or its equivalent as a practical expedient, and therefore, these investments are not classified within the fair value hierarchy. Includes certain private equity investments
Combined Notes to Consolidated Financial Statements
(Dollars in millions, except per share data unless otherwise noted)
Note 12 — Retirement Benefits
previously measured at fair value using NAV or its equivalent as a practical expedient and transferred to Level 3 primarily due to changes in market liquidity or data.
Real estate. These investments are funds with a direct investment in pools of real estate properties. These funds are reported by the fund manager and are generally based on independent appraisals of the underlying investments from sources with professional qualifications, typically using a combination of market-based comparable data and discounted cash flows. These valuation inputs are unobservable. Certain real estate investments cannot be redeemed and are generally liquidated over a period of 8 to 10 years from the initial investment date, which is based on Exelon's understanding of the investment funds. The remaining liquid real estate investments are generally redeemable from the investment vehicle quarterly, with 30 to 90 days of notice. The fair value of real estate investments is determined using NAV or its equivalent as a practical expedient, and therefore, these investments are not classified within the fair value hierarchy.
Hedge funds. Hedge fund investments include those that employ a broad range of strategies to enhance returns and provide additional diversification. The fair value of hedge funds is determined using NAV or its equivalent as a practical expedient, and therefore, hedge funds are not classified within the fair value hierarchy. Exelon has the ability to redeem these investments at NAV or its equivalent subject to certain restrictions that may include a lock-up period or a gate.
Defined Contribution Savings Plan
The Registrants participate in a 401(k) defined contribution savings plan that is sponsored by Exelon. The plan is qualified under applicable sections of the IRC and allows employees to contribute a portion of their pre-tax and/or after-tax income in accordance with specified guidelines. All Registrants match a percentage of the employee contributions up to certain limits. The following table presents the employer contributions and employer matching contributions to the savings plan for the years ended December 31, 2025, 2024, and 2023:
| For the Years Ended December 31, | Exelon | ComEd | PECO | BGE | PHI | Pepco | DPL | ACE | |||||||||||||||||||||||||||||||||||||||
| 2025 | $ | 121 | $ | 48 | $ | 16 | $ | 16 | 20 | $ | 5 | $ | 4 | $ | 3 | ||||||||||||||||||||||||||||||||
| 2024 | 112 | 46 | 15 | 12 | 19 | 5 | 5 | 3 | |||||||||||||||||||||||||||||||||||||||
| 2023 | 109 | 47 | 15 | 12 | 16 | 4 | 3 | 2 |
13. Derivative Financial Instruments (All Registrants)
The Registrants use derivative instruments to manage commodity price risk and interest rate risk related to ongoing business operations. The Registrants do not execute derivatives for speculative or proprietary trading purposes.
Authoritative guidance requires that derivative instruments be recognized as either assets or liabilities at fair value, with changes in fair value of the derivative recognized in earnings immediately. Other accounting treatments are available through special election and designation, provided they meet specific, restrictive criteria both at the time of designation and on an ongoing basis. These alternative permissible accounting treatments include NPNS, cash flow hedges, and fair value hedges. At ComEd, derivative economic hedges related to commodities are recorded at fair value and offset by a corresponding regulatory asset or liability. For all NPNS derivative instruments, accounts receivable or accounts payable are recorded when derivatives settle and revenue or expense is recognized in earnings as the underlying physical commodity is sold or consumed. At Exelon, derivative hedges that qualify and are designated as cash flow hedges are recorded at fair value and offsets are recorded to AOCI.
Commodity Price Risk
The Utility Registrants employ established policies and procedures to manage their risks associated with market fluctuations in commodity prices by entering into physical and financial derivative contracts, which are either determined to be non-derivative or classified as economic hedges. The Utility Registrants procure electric and natural gas supply through a competitive procurement process approved by each of the respective state utility commissions. The Utility Registrants’ hedging programs are intended to reduce exposure to energy and natural gas price volatility and have no direct earnings impact as the costs are fully recovered from customers through
Combined Notes to Consolidated Financial Statements
(Dollars in millions, except per share data unless otherwise noted)
Note 13 — Derivative Financial Instruments
regulatory-approved recovery mechanisms. The following table provides a summary of the Utility Registrants’ primary derivative hedging instruments, listed by commodity and accounting treatment.
| Registrant | Commodity | Accounting Treatment | Hedging Instrument | ||||||||
| ComEd | Electricity | NPNS | Fixed price contracts based on all requirements in the IPA procurement plans. | ||||||||
| Electricity | Changes in fair value of economic hedge recorded to an offsetting regulatory asset or liability(a) | 20-year floating-to-fixed energy swap contracts beginning June 2012 based on the renewable energy resource procurement requirements in the Illinois Settlement Legislation of approximately 1.3 million MWhs per year. | |||||||||
| PECO | Electricity | NPNS | Fixed price contracts for default supply requirements through full requirements contracts. | ||||||||
| Gas | NPNS | Fixed price contracts to cover about 10% of planned natural gas purchases in support of projected firm sales. | |||||||||
| BGE | Electricity | NPNS | Fixed price contracts for all SOS requirements through full requirements contracts. | ||||||||
| Gas | NPNS | Fixed price purchases associated with forecasted gas supply requirements. | |||||||||
| Pepco | Electricity | NPNS | Fixed price contracts for all SOS requirements through full requirements contracts. | ||||||||
| DPL | Electricity | NPNS | Fixed price contracts for all SOS requirements through full requirements contracts. | ||||||||
| Gas | NPNS | Fixed and index priced contracts through full requirements contracts. | |||||||||
| Gas | Changes in fair value of economic hedge recorded to an offsetting regulatory asset or liability(b) | Exchange traded future contracts for up to 50% of estimated monthly purchase requirements each month, including purchases for storage injections. | |||||||||
| ACE | Electricity | NPNS | Fixed price contracts for all BGS requirements through full requirements contracts. |
(a)See Note 2—Regulatory Matters for additional information.
(b)The fair value of the DPL economic hedge is not material as of December 31, 2025 and 2024.
The fair value of derivative economic hedges is presented in Other current assets and current and noncurrent Mark-to-market derivative liabilities in Exelon's and ComEd's Consolidated Balance Sheets.
Interest Rate Risk (Exelon)
Exelon Corporate uses a combination of fixed-rate and variable-rate debt to manage interest rate exposure. Exelon Corporate may utilize interest rate derivatives to lock in rate levels in anticipation of future financings, which are typically designated as cash flow hedges. A hypothetical 50 basis point change in the interest rates associated with Exelon's interest rate swaps as of December 31, 2025 would result in an immaterial impact to Exelon's Consolidated Net Income.
Below is a summary of the interest rate hedge balances at December 31, 2025 and 2024.
| Derivatives Designated as Hedging Instruments | |||||||||||||||||
| December 31, 2025 | December 31, 2024 | ||||||||||||||||
| Other current assets | $ | 3 | $ | 14 | |||||||||||||
| Other deferred debits (noncurrent assets) | — | 12 | |||||||||||||||
| Total derivative assets | 3 | 26 | |||||||||||||||
| Mark-to-market derivative liabilities (current liabilities) | (4) | (1) | |||||||||||||||
| Total mark-to-market derivative liabilities | (4) | (1) | |||||||||||||||
| Total mark-to-market derivative net (liabilities) assets | $ | (1) | $ | 25 |
Combined Notes to Consolidated Financial Statements
(Dollars in millions, except per share data unless otherwise noted)
Note 13 — Derivative Financial Instruments
Cash Flow Hedges (Interest Rate Risk)
For derivative instruments that qualify and are designated as cash flow hedges, the changes in fair value each period are initially recorded in AOCI and reclassified into earnings when the underlying transaction affects earnings. The gains and losses reclassified out of AOCI for the years ended December 31, 2025, 2024, and 2023 are immaterial.
In February 2025, Exelon terminated the previously issued floating-to-fixed swaps with a total notional of $765 million upon issuance of $1 billion of debt. See Note 14 — Debt and Credit Agreements for additional information on the debt issuance. The settlements resulted in a cash receipt of $16 million. The accumulated AOCI gain of $13 million (net of tax) is being amortized into Interest expense in Exelon's Consolidated Statement of Operations and Comprehensive Income over the 5-year and 10-year terms of the swaps. During the fourth quarter of 2025, Exelon Corporate entered into $30 million notional of 10-year maturity floating-to-fixed swaps designated as cash flow hedges. The following table provides the notional amounts outstanding held by Exelon at December 31, 2025 and 2024.
| December 31, 2025 | December 31, 2024 | |||||||||||||
| 5-year maturity floating-to-fixed swaps | $ | 335 | $ | 657 | ||||||||||
| 10-year maturity floating-to-fixed swaps | 365 | 658 | ||||||||||||
| Total | $ | 700 | $ | 1,315 |
The AOCI derivative loss (net of tax) was $9 million for the year ended December 31, 2025 and gain was $19 million for the year ended December 31, 2024, respectively. See Note 19 – Changes in Accumulated Other Comprehensive Income (Loss) for additional information.
Credit Risk
The Registrants would be exposed to credit-related losses in the event of non-performance by counterparties on executed derivative instruments. The credit exposure of derivative contracts, before collateral, is represented by the fair value of contracts at the reporting date. The Utility Registrants have contracts to procure electric and natural gas supply that provide suppliers with a certain amount of unsecured credit. If the exposure on the supply contract exceeds the amount of unsecured credit, the suppliers may be required to post collateral. The net credit exposure is mitigated primarily by the ability to recover procurement costs through customer rates. The amount of cash collateral received from external counterparties remained relatively consistent as of December 31, 2025. Cash collateral held by ComEd, PECO, BGE, Pepco, DPL, and ACE must be deposited in an unaffiliated major U.S. commercial or foreign bank with a U.S. branch office that meets certain qualifications. The following table reflects the Registrants' cash collateral held from external counterparties, which is recorded in Other current liabilities on their respective Consolidated Balance Sheets, at December 31, 2025 and 2024
| December 31, 2025 | December 31, 2024 | |||||||||||||
| Exelon | $ | 223 | $ | 181 | ||||||||||
| ComEd | 192 | 176 | ||||||||||||
| PECO(a) | 6 | — | ||||||||||||
| BGE | 4 | 1 | ||||||||||||
| PHI | 21 | 4 | ||||||||||||
| Pepco | 13 | 1 | ||||||||||||
| DPL | 3 | 2 | ||||||||||||
| ACE(a) | 5 | — |
(a)PECO and ACE had less than one million in cash collateral held with external parties as of December 31, 2024.
The Utility Registrants’ electric supply procurement contracts do not contain provisions that would require them to post collateral. PECO’s, BGE’s, and DPL’s natural gas procurement contracts contain provisions that could require PECO, BGE, and DPL to post collateral in the form of cash or credit support, which vary by contract and counterparty, with thresholds contingent upon PECO’s, BGE's, and DPL’s credit rating. As of December 31, 2025,
Combined Notes to Consolidated Financial Statements
(Dollars in millions, except per share data unless otherwise noted)
Note 13 — Derivative Financial Instruments
PECO, BGE, and DPL were not required to post collateral for any of these agreements. If PECO, BGE, or DPL lost their investment grade credit rating as of December 31, 2025, they could have been required to post collateral to their counterparties of $58 million, $43 million, and $14 million, respectively.
14. Debt and Credit Agreements (All Registrants)
Short-Term Borrowings
Exelon Corporate, ComEd, and BGE meet their short-term liquidity requirements primarily through the issuance of commercial paper. PECO meets its short-term liquidity requirements primarily through the issuance of commercial paper and borrowings from the Exelon intercompany money pool. Pepco, DPL, and ACE meet their short-term liquidity requirements primarily through the issuance of commercial paper and borrowings from the PHI intercompany money pool. PHI Corporate meets its short-term liquidity requirements primarily through the issuance of short-term notes and borrowings from the Exelon intercompany money pool. The Registrants may use their respective credit facilities for general corporate purposes, including meeting short-term funding requirements and the issuance of letters of credit.
Commercial Paper
The following table reflects the Registrants' commercial paper programs supported by the revolving credit agreements at December 31, 2025 and 2024:
| Credit Facility Size at December 31, | Outstanding Commercial Paper at December 31, | Average Interest Rate on Commercial Paper Borrowings at December 31, | |||||||||||||||||||||||||||||||||
| Commercial Paper Issuer | 2025**(a)** | 2024**(a)** | 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||||||||||||
| Exelon(b) | $ | 4,000 | $ | 4,000 | $ | 612 | $ | 1,359 | 3.94 | % | 4.66 | % | |||||||||||||||||||||||
| ComEd | $ | 1,000 | $ | 1,000 | $ | — | $ | 36 | — | % | 4.55 | % | |||||||||||||||||||||||
| PECO | $ | 600 | $ | 600 | $ | — | $ | 192 | — | % | 4.65 | % | |||||||||||||||||||||||
| BGE | $ | 600 | $ | 600 | $ | — | $ | 175 | — | % | 4.61 | % | |||||||||||||||||||||||
| PHI(c) | $ | 900 | $ | 900 | $ | 612 | $ | 530 | 3.94 | % | 4.70 | % | |||||||||||||||||||||||
| Pepco | $ | 360 | (d) | $ | 300 | $ | 303 | $ | 200 | 3.93 | % | 4.69 | % | ||||||||||||||||||||||
| DPL | $ | 300 | (d) | $ | 300 | $ | 161 | $ | 144 | 3.94 | % | 4.74 | % | ||||||||||||||||||||||
| ACE | $ | 240 | (d) | $ | 300 | $ | 148 | $ | 186 | 3.94 | % | 4.67 | % |
(a)Excludes credit facility agreements arranged at community banks. See below for additional information.
(b)Includes revolving credit agreements at Exelon Corporate with a maximum program size of $900 million as of December 31, 2025 and December 31, 2024. Exelon Corporate had no outstanding commercial paper as of December 31, 2025 and $426 million outstanding commercial paper as of December 31, 2024.
(c)Represents the consolidated amounts of Pepco, DPL, and ACE.
(d)The standard maximum program size for revolving credit facilities is $300 million each for Pepco, DPL, and ACE based on the credit agreements in place. However, the facilities at Pepco, DPL, and ACE have the ability to flex to $500 million, $500 million, and $350 million, respectively. The borrowing capacity may be increased or decreased during the term of the facility, except that (i) the sum of the borrowing capacity must equal the total amount of the facility, and (ii) the aggregate amount of credit used at any given time by each of Pepco, DPL, or ACE may not exceed $900 million or the maximum amount of short-term debt the company is permitted to have outstanding by its regulatory authorities. The total number of the borrowing reallocations may not exceed eight per year during the term of the facility. This ability was utilized to increase Pepco's program size to $360 million, effective December 11, 2025. As a result, the program size for DPL did not change and ACE was decreased to $240 million, which prevents the aggregate amount of outstanding short-term debt from exceeding the $900 million limit.
In order to maintain their respective commercial paper programs in the amounts indicated above, each Registrant must have credit facilities in place, at least equal to the amount of its commercial paper program. A registrant does not issue commercial paper in an aggregate amount exceeding the then available capacity under its credit facility.
Combined Notes to Consolidated Financial Statements
(Dollars in millions, except per share data unless otherwise noted)
Note 14 — Debt and Credit Agreements
At December 31, 2025, the Registrants had the following aggregate bank commitments, credit facility borrowings, and available capacity under their respective credit facilities:
| Available Capacity at December 31, 2025 | |||||||||||||||||||||||||||||||||||
| Borrower | Facility Type | Aggregate Bank Commitment**(a)** | Facility Draws | Outstanding Letters of Credit | Actual | To Support Additional Commercial Paper**(b)** | |||||||||||||||||||||||||||||
| Exelon(b) | Syndicated Revolver | $ | 4,000 | $ | — | $ | 51 | $ | 3,949 | $ | 3,338 | ||||||||||||||||||||||||
| ComEd | Syndicated Revolver | 1,000 | — | 15 | 985 | 985 | |||||||||||||||||||||||||||||
| PECO | Syndicated Revolver | 600 | — | 5 | 595 | 595 | |||||||||||||||||||||||||||||
| BGE | Syndicated Revolver | 600 | — | 25 | 575 | 575 | |||||||||||||||||||||||||||||
| PHI(c) | Syndicated Revolver | 900 | — | 2 | 898 | 286 | |||||||||||||||||||||||||||||
| Pepco | Syndicated Revolver | 360 | — | 2 | 358 | 55 | |||||||||||||||||||||||||||||
| DPL | Syndicated Revolver | 300 | — | — | 300 | 139 | |||||||||||||||||||||||||||||
| ACE | Syndicated Revolver | 240 | — | — | 240 | 92 |
(a)Excludes credit facility agreements arranged at community banks. See below for additional information.
(b)Includes $900 million aggregate bank commitment related to Exelon Corporate. Exelon Corporate had $3 million outstanding letters of credit as of December 31, 2025. Exelon Corporate had $897 million in available capacity to support additional commercial paper as of December 31, 2025.
(c)Represents the consolidated amounts of Pepco, DPL, and ACE.
The following table reflects the Registrants' credit facility agreements arranged at community banks at December 31, 2025 and 2024. These are excluded from the Maximum Program Size and Aggregate Bank Commitment amounts within the two tables above and the facilities may be used to issue letters of credit.
| Aggregate Bank Commitments | Outstanding Letters of Credit | |||||||||||||||||||||||||
| Borrower | 2025**(a)** | 2024 | 2025 | 2024 | ||||||||||||||||||||||
| Exelon(b) | $ | 140 | $ | 140 | $ | 5 | $ | 5 | ||||||||||||||||||
| ComEd | 40 | 40 | 3 | 3 | ||||||||||||||||||||||
| PECO | 40 | 40 | — | — | ||||||||||||||||||||||
| BGE | 15 | 15 | 2 | 2 | ||||||||||||||||||||||
| PHI(c) | 45 | 45 | — | — | ||||||||||||||||||||||
| Pepco | 15 | 15 | — | — | ||||||||||||||||||||||
| DPL | 15 | 15 | — | — | ||||||||||||||||||||||
| ACE | 15 | 15 | — | — |
(a)These facilities were entered into on October 3, 2025 and expire on October 1, 2027. Previously structured as one-year arrangements, the facilities are now two-year terms.
(b)Represents the consolidated amounts of ComEd, PECO, BGE, Pepco, DPL, and ACE.
(c)Represents the consolidated amounts of Pepco, DPL, and ACE.
Combined Notes to Consolidated Financial Statements
(Dollars in millions, except per share data unless otherwise noted)
Note 14 — Debt and Credit Agreements
Revolving Credit Agreements
On August 29, 2024, Exelon Corporate and each of the Utility Registrants amended and restated their respective syndicated revolving credit facility, extending the maturity date to August 29, 2029. The following table reflects the credit agreements:
| Borrower | Aggregate Bank Commitment | Interest Rate | ||||||||||||
| Exelon Corporate | $ | 900 | SOFR plus 1.075% | |||||||||||
| ComEd | $ | 1,000 | SOFR plus 1.000% | |||||||||||
| PECO | $ | 600 | SOFR plus 0.900% | |||||||||||
| BGE | $ | 600 | SOFR plus 0.900% | |||||||||||
| Pepco | $ | 300 | SOFR plus 1.000% | |||||||||||
| DPL | $ | 300 | SOFR plus 1.000% | |||||||||||
| ACE | $ | 300 | SOFR plus 1.000% |
Borrowings under Exelon’s, ComEd’s, PECO’s, BGE's, Pepco's, DPL's, and ACE's revolving credit agreements bear interest at a rate based upon either the prime rate or a SOFR-based rate, plus an adder based upon the particular Registrant’s credit rating. The adders for the prime based borrowings and SOFR-based borrowings as of December 31, 2025 are presented in the following table:
| Exelon**(a)** | ComEd | PECO | BGE | Pepco | DPL | ACE | |||||||||||||||||||||||||||||||||||||||||
| Prime based borrowings | 0 - 7.5 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
| SOFR-based borrowings | 90.0 - 107.5 | 100.0 | 90.0 | 90.0 | 100.0 | 100.0 | 100.0 |
(a)Includes interest rate adders at Exelon Corporate of 7.5 basis points and 107.5 basis points for prime and SOFR-based borrowings, respectively.
If any Registrant loses its investment grade rating, the maximum adders for prime rate borrowings and SOFR-based rate borrowings would be 65 basis points and 165 basis points, respectively. The credit agreements also require the borrower to pay a facility fee based upon the aggregate commitments. The fee varies depending upon the respective credit ratings of the borrower. Exelon Corporate and the Utility Registrants had no outstanding amounts on the revolving credit facilities as of December 31, 2025.
Short-Term Loan Agreements
On March 23, 2017, Exelon Corporate entered into a term loan agreement for $500 million. The loan agreement was renewed in the first quarter of 2024 and was bifurcated into two tranches of $350 million and $150 million on March 14, 2024. The loan agreements were renewed in the first quarter of 2025, extending the expiration date to March 13, 2026 with a variable interest rate equal to SOFR plus 1.00%. Exelon Corporate repaid the term loan on December 5, 2025.
Variable Rate Demand Bonds
DPL has outstanding obligations in respect of Variable Rate Demand Bonds (VRDB). VRDBs are subject to repayment on the demand of the holders and, for this reason, are accounted for as short-term debt in accordance with GAAP. However, these bonds may be converted to a fixed-rate, fixed-term option to establish a maturity which corresponds to the date of final maturity of the bonds. On this basis, PHI views VRDBs as a source of long-term financing. As of December 31, 2025 and December 31, 2024, $46 million and $46 million in variable rate demand bonds issued by DPL were outstanding and are included in the Long-term debt due within one year in Exelon's, PHI's, and DPL's Consolidated Balance Sheets.
Combined Notes to Consolidated Financial Statements
(Dollars in millions, except per share data unless otherwise noted)
Note 14 — Debt and Credit Agreements
Long-Term Debt
The following tables present the outstanding long-term debt at the Registrants at December 31, 2025 and 2024:
Exelon
| Maturity Date | December 31, | ||||||||||||||||||||||||||||
| Rates | 2025 | 2024 | |||||||||||||||||||||||||||
| Long-term debt | |||||||||||||||||||||||||||||
| First mortgage bonds(a) | 2.20 | % | - | 7.90 | % | 2026 - 2055 | $ | 28,376 | $ | 26,451 | |||||||||||||||||||
| Senior unsecured notes | 2.75 | % | - | 7.60 | % | 2026 - 2055 | 13,473 | 12,280 | |||||||||||||||||||||
| Unsecured notes | 2.25 | % | - | 6.35 | % | 2026 - 2054 | 6,100 | 5,450 | |||||||||||||||||||||
| Notes payable and other | 1.64 | % | - | 7.49 | % | 2025 - 2053 | 79 | 83 | |||||||||||||||||||||
| Junior subordinated notes | 6.50 | % | 2055 | 1,000 | — | ||||||||||||||||||||||||
| Long-term software licensing agreement | 2.30 | % | 2025 | — | 4 | ||||||||||||||||||||||||
| Medium-terms notes (unsecured) | 7.72 | % | 2027 | 10 | 10 | ||||||||||||||||||||||||
| Total long-term debt | 49,038 | 44,278 | |||||||||||||||||||||||||||
| Unamortized debt discount and premium, net | (93) | (94) | |||||||||||||||||||||||||||
| Unamortized debt issuance costs | (369) | (326) | |||||||||||||||||||||||||||
| Fair value adjustment | 502 | 542 | |||||||||||||||||||||||||||
| Long-term debt due within one year | (1,665) | (1,453) | |||||||||||||||||||||||||||
| Long-term debt | $ | 47,413 | $ | 42,947 | |||||||||||||||||||||||||
| Long-term debt to financing trusts**(b)** | |||||||||||||||||||||||||||||
| Subordinated debentures to ComEd Financing III | 6.35 | % | 2033 | $ | 206 | $ | 206 | ||||||||||||||||||||||
| Subordinated debentures to PECO Trust III | 7.38 | % | - | 8.75 | % | 2028 | 81 | 81 | |||||||||||||||||||||
| Subordinated debentures to PECO Trust IV | 5.75 | % | 2033 | 103 | 103 | ||||||||||||||||||||||||
| Total long-term debt to financing trusts | $ | 390 | $ | 390 | |||||||||||||||||||||||||
(a)Substantially all of ComEd’s assets other than expressly excluded property and substantially all of PECO’s, Pepco's, DPL's, and ACE's assets are subject to the liens of their respective mortgage indentures.
(b)Amounts owed to these financing trusts are recorded as Long-term debt to financing trusts within Exelon’s Consolidated Balance Sheets.
Combined Notes to Consolidated Financial Statements
(Dollars in millions, except per share data unless otherwise noted)
Note 14 — Debt and Credit Agreements
ComEd
| Maturity Date | December 31, | ||||||||||||||||||||||||||||
| Rates | 2025 | 2024 | |||||||||||||||||||||||||||
| Long-term debt | |||||||||||||||||||||||||||||
| First mortgage bonds(a) | 2.20 | % | - | 6.45 | % | 2026 - 2055 | $ | 12,879 | $ | 12,154 | |||||||||||||||||||
| Other | 7.49 | % | 2053 | 7 | 8 | ||||||||||||||||||||||||
| Total long-term debt | 12,886 | 12,162 | |||||||||||||||||||||||||||
| Unamortized debt discount and premium, net | (29) | (31) | |||||||||||||||||||||||||||
| Unamortized debt issuance costs | (104) | (101) | |||||||||||||||||||||||||||
| Long-term debt due within one year | (500) | — | |||||||||||||||||||||||||||
| Long-term debt | $ | 12,253 | $ | 12,030 | |||||||||||||||||||||||||
| Long-term debt to financing trust**(b)** | |||||||||||||||||||||||||||||
| Subordinated debentures to ComEd Financing III | 6.35 | % | 2033 | $ | 206 | $ | 206 | ||||||||||||||||||||||
| Long-term debt to financing trusts | $ | 206 | $ | 206 |
(a)Substantially all of ComEd’s assets, other than expressly excluded property, are subject to the lien of its mortgage indenture.
(b)Amount owed to this financing trust is recorded as Long-term debt to financing trust within ComEd’s Consolidated Balance Sheets.
PECO
| Maturity Date | December 31, | ||||||||||||||||||||||||||||
| Rates | 2025 | 2024 | |||||||||||||||||||||||||||
| Long-term debt | |||||||||||||||||||||||||||||
| First mortgage bonds(a) | 2.80 | % | - | 5.95 | % | 2033 - 2055 | $ | 6,475 | $ | 5,775 | |||||||||||||||||||
| Total long-term debt | 6,475 | 5,775 | |||||||||||||||||||||||||||
| Unamortized debt discount and premium, net | (25) | (25) | |||||||||||||||||||||||||||
| Unamortized debt issuance costs | (54) | (46) | |||||||||||||||||||||||||||
| Long-term debt due within one year | — | (350) | |||||||||||||||||||||||||||
| Long-term debt | $ | 6,396 | $ | 5,354 | |||||||||||||||||||||||||
| Long-term debt to financing trusts**(b)** | |||||||||||||||||||||||||||||
| Subordinated debentures to PECO Trust III | 7.38 | % | - | 8.75 | % | 2028 | $ | 81 | $ | 81 | |||||||||||||||||||
| Subordinated debentures to PECO Trust IV | 5.75 | % | 2033 | 103 | 103 | ||||||||||||||||||||||||
| Long-term debt to financing trusts | $ | 184 | $ | 184 |
(a)Substantially all of PECO’s assets are subject to the lien of its mortgage indenture.
(b)Amounts owed to this financing trust are recorded as Long-term debt to financing trusts within PECO’s Consolidated Balance Sheets.
BGE
| Maturity Date | December 31, | ||||||||||||||||||||||||||||
| Rates | 2025 | 2024 | |||||||||||||||||||||||||||
| Long-term debt | |||||||||||||||||||||||||||||
| Unsecured notes | 2.25 | % | - | 6.35 | % | 2026 - 2054 | $ | 6,100 | $ | 5,450 | |||||||||||||||||||
| Total long-term debt | 6,100 | 5,450 | |||||||||||||||||||||||||||
| Unamortized debt discount and premium, net | (14) | (13) | |||||||||||||||||||||||||||
| Unamortized debt issuance costs | (45) | (42) | |||||||||||||||||||||||||||
| Long-term debt due within one year | (350) | — | |||||||||||||||||||||||||||
| Long-term debt | $ | 5,691 | $ | 5,395 | |||||||||||||||||||||||||
Combined Notes to Consolidated Financial Statements
(Dollars in millions, except per share data unless otherwise noted)
Note 14 — Debt and Credit Agreements
PHI
| Maturity Date | December 31, | ||||||||||||||||||||||||||||
| Rates | 2025 | 2024 | |||||||||||||||||||||||||||
| Long-term debt | |||||||||||||||||||||||||||||
| First mortgage bonds(a) | 2.25 | % | - | 7.90 | % | 2028 - 2055 | $ | 9,022 | $ | 8,522 | |||||||||||||||||||
| Senior unsecured notes | 7.45 | % | 2032 | 185 | 185 | ||||||||||||||||||||||||
| Medium-terms notes (unsecured) | 7.72 | % | 2027 | 10 | 10 | ||||||||||||||||||||||||
| Finance leases | 5.62 | % | 2026 - 2033 | 72 | 75 | ||||||||||||||||||||||||
| Total long-term debt | 9,289 | 8,792 | |||||||||||||||||||||||||||
| Unamortized debt discount and premium, net | (2) | (2) | |||||||||||||||||||||||||||
| Unamortized debt issuance costs | (71) | (66) | |||||||||||||||||||||||||||
| Fair value adjustment | 374 | 400 | |||||||||||||||||||||||||||
| Long-term debt due within one year | (64) | (290) | |||||||||||||||||||||||||||
| Long-term debt | $ | 9,526 | $ | 8,834 |
(a)Substantially all of Pepco's, DPL's, and ACE's assets are subject to the liens of their respective mortgage indentures.
Pepco
| Maturity Date | December 31, | ||||||||||||||||||||||||||||
| Rates | 2025 | 2024 | |||||||||||||||||||||||||||
| Long-term debt | |||||||||||||||||||||||||||||
| First mortgage bonds(a) | 2.32 | % | - | 7.90 | % | 2029 - 2055 | $ | 4,675 | $ | 4,400 | |||||||||||||||||||
| Finance leases | 5.62 | % | 2026 - 2033 | 25 | 27 | ||||||||||||||||||||||||
| Total long-term debt | 4,700 | 4,427 | |||||||||||||||||||||||||||
| Unamortized debt discount and premium, net | (1) | — | |||||||||||||||||||||||||||
| Unamortized debt issuance costs | (67) | (65) | |||||||||||||||||||||||||||
| Long-term debt due within one year | (6) | (6) | |||||||||||||||||||||||||||
| Long-term debt | $ | 4,626 | $ | 4,356 |
(a)Substantially all of Pepco's assets are subject to the lien of its mortgage indenture.
DPL
| Maturity Date | December 31, | ||||||||||||||||||||||||||||
| Rates | 2025 | 2024 | |||||||||||||||||||||||||||
| Long-term debt | |||||||||||||||||||||||||||||
| First mortgage bonds(a) | 2.53 | % | - | 5.72 | % | 2028 - 2054 | $ | 2,324 | $ | 2,198 | |||||||||||||||||||
| Medium-terms notes (unsecured) | 7.72 | % | 2027 | 10 | 10 | ||||||||||||||||||||||||
| Finance leases | 5.62 | % | 2026 - 2033 | 27 | 28 | ||||||||||||||||||||||||
| Total long-term debt | 2,361 | 2,236 | |||||||||||||||||||||||||||
| Unamortized debt issuance costs | (17) | (16) | |||||||||||||||||||||||||||
| Long-term debt due within one year | (53) | (130) | |||||||||||||||||||||||||||
| Long-term debt | $ | 2,291 | $ | 2,090 |
(a)Substantially all of DPL's assets are subject to the lien of its mortgage indenture.
Combined Notes to Consolidated Financial Statements
(Dollars in millions, except per share data unless otherwise noted)
Note 14 — Debt and Credit Agreements
ACE
| Maturity Date | December 31, | ||||||||||||||||||||||||||||
| Rates | 2025 | 2024 | |||||||||||||||||||||||||||
| Long-term debt | |||||||||||||||||||||||||||||
| First mortgage bonds(a) | 2.25 | % | - | 5.81 | % | 2028 - 2055 | $ | 2,023 | $ | 1,923 | |||||||||||||||||||
| Finance leases | 5.62 | % | 2026 - 2033 | 20 | 20 | ||||||||||||||||||||||||
| Total long-term debt | 2,043 | 1,943 | |||||||||||||||||||||||||||
| Unamortized debt issuance costs | (10) | (10) | |||||||||||||||||||||||||||
| Long-term debt due within one year | (5) | (154) | |||||||||||||||||||||||||||
| Long-term debt | $ | 2,028 | $ | 1,779 |
(a)Substantially all of ACE's assets are subject to the lien of its mortgage indenture.
Long-term debt maturities at the Registrants in the periods 2026 through 2030 and thereafter are as follows:
| Year | Exelon | ComEd | PECO | BGE | PHI | Pepco | DPL | ACE | |||||||||||||||||||||||||||||||||||||||
| 2026 | $ | 1,665 | $ | 500 | $ | — | $ | 350 | $ | 64 | $ | 6 | $ | 53 | $ | 5 | |||||||||||||||||||||||||||||||
| 2027 | 1,028 | 350 | — | — | 28 | 7 | 17 | 5 | |||||||||||||||||||||||||||||||||||||||
| 2028 | 1,996 | 550 | 81 | — | 365 | 5 | 6 | 354 | |||||||||||||||||||||||||||||||||||||||
| 2029 | 1,933 | — | — | — | 284 | 153 | 4 | 126 | |||||||||||||||||||||||||||||||||||||||
| 2030 | 1,856 | 350 | — | — | 257 | 153 | 103 | 2 | |||||||||||||||||||||||||||||||||||||||
| Thereafter | 40,950 | (a) | 11,342 | (b) | 6,578 | (c) | 5,750 | 8,291 | 4,376 | 2,178 | 1,551 | ||||||||||||||||||||||||||||||||||||
| Total | $ | 49,428 | $ | 13,092 | $ | 6,659 | $ | 6,100 | $ | 9,289 | $ | 4,700 | $ | 2,361 | $ | 2,043 |
(a)Includes $390 million due to ComEd and PECO financing trusts.
(b)Includes $206 million due to ComEd financing trust.
(c)Includes $184 million due to PECO financing trusts.
Convertible Senior Notes
On December 4, 2025, Exelon Corporation issued $1 billion aggregate principal amount of 3.25% Convertible Senior Notes due 2029 (Convertible Senior Notes). The Convertible Senior Notes are reflected as Long-term debt on Exelon’s Consolidated Balance Sheet.
The Convertible Senior Notes are senior, unsecured notes that bear interest at a fixed rate of 3.25% per year, payable semiannually in arrears on March 15 and September 15 of each year, beginning on September 15, 2026. The Convertible Senior Notes will mature on March 15, 2029, unless earlier converted or repurchased in accordance with their terms.
Under the following circumstances, holders may convert the Convertible Senior Notes at their option prior to the close of business on the business day preceding December 15, 2028:
-
during any calendar quarter beginning after the quarter ending on March 31, 2026, if the last reported sale price of Exelon’s common stock for at least 20 trading days (whether consecutive or not) during the period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter is greater than or equal the stock was trading at greater than or equal to 130% of the conversion price on each applicable trading day as determined by Exelon;
-
during the five business day period after any ten consecutive trading day period (measurement period) in which the applicable trading price per $1,000 principal amount of notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of the common stock and the conversion rate on each such trading day;
-
upon the occurrence of certain corporate events specified in the respective supplemental indentures governing the Convertible Senior Notes.
Combined Notes to Consolidated Financial Statements
(Dollars in millions, except per share data unless otherwise noted)
Note 14 — Debt and Credit Agreements
On or after December 15, 2028, a holder may convert for all, or any portion of its Convertible Senior Notes at any time prior to the close of business on the business day immediately preceding the applicable maturity date regardless of the foregoing conditions.
Exelon will settle conversions of the Convertible Senior Notes by paying cash up to the aggregate principal amount to be converted and paying or delivering, as the case may be, cash, shares of common stock, or a combination of cash and shares of common stock, at Exelon’s discretion, in respect of the remainder, if any, of Exelon's conversion obligation in excess of the aggregate principal amount of the Convertible Senior Notes being converted. The Convertible Senior Notes are initially convertible at 17.5093 shares per $1,000 principal amount, which is equivalent to an initial conversion price of approximately $57.11 per share of common stock. The initial conversion price of the Convertible Senior Notes represents a premium of approximately 25% over the last reported sale price of Exelon’s common stock on the Nasdaq Global Select Market on December 1, 2025. These conversions will be subject to adjustment upon the occurrence of certain specified events but will not be adjusted for accrued and unpaid interest. In addition, upon the occurrence of a make-whole fundamental change (as defined in the indenture) Exelon will, in certain circumstances, increase the applicable conversion rate by a number of additional shares of common stock for conversions in connection with the make-whole fundamental change.
EPS Impact
Diluted earnings per common shares will also reflect the dilutive effect of potential common shares from share-based awards and convertible notes. The dilutive effect of the Convertible Senior Notes is computed using the if-converted method. For the year ended December 31, 2025, no incremental shares were assumed converted or included in the diluted earnings per common share. resulting from the Convertible Senior Notes.
Debt Extinguishment
During the twelve months ended December 31, 2024, Exelon repurchased a portion of its Senior unsecured notes with a principal balance of $244 million outstanding in exchange for cash of $215 million. The repurchase was accounted for as a debt extinguishment and resulted in a pre-tax gain of $28 million, which is reflected on Exelon's Consolidated Statement of Operations and Comprehensive income within Interest expense, net.
Reoffering of Tax-Exempt Bonds
On July 1, 2025, DPL completed the reoffering of $78.4 million aggregate principal amount of its Delaware Economic Development Authority’s Gas Facilities Refunding Revenue Bonds (Delmarva Power & Light Company Project) 2020 Series A (Non-AMT) (the Bonds). In connection with the reoffering of the Bonds, the interest rate was modified to 3.60% per annum, and the maturity date was modified to January 1, 2031. DPL did not directly receive any proceeds from the reoffering.
Debt Covenants
As of December 31, 2025, the Registrants are in compliance with debt covenants.
15. Fair Value of Financial Assets and Liabilities (All Registrants)
Exelon measures and classifies fair value measurements in accordance with the hierarchy as defined by GAAP. The hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three levels as follows:
-
Level 1 — quoted prices (unadjusted) in active markets for identical assets or liabilities that the Registrants have the ability to liquidate as of the reporting date.
-
Level 2 — inputs other than quoted prices included within Level 1 that are directly observable for the asset or liability or indirectly observable through corroboration with observable market data.
-
Level 3 — unobservable inputs, such as internally developed pricing models or third-party valuations for the asset or liability due to little or no market activity for the asset or liability.
Combined Notes to Consolidated Financial Statements
(Dollars in millions, except per share data unless otherwise noted)
Note 15 — Fair Value of Financial Assets and Liabilities
Fair Value of Financial Liabilities Recorded at Amortized Cost
The following tables present the carrying amounts and fair values of the Registrants’ short-term liabilities, long-term debt, and trust preferred securities (long-term debt to financing trusts or junior subordinated debentures) at December 31, 2025 and 2024. The Registrants have no financial liabilities measured using the NAV practical expedient.
The carrying amounts of the Registrants’ short-term liabilities as presented in their Consolidated Balance Sheets are representative of their fair value (Level 2) because of the short-term nature of these instruments.
| December 31, 2025 | December 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Carrying Amount | Fair Value | Carrying Amount | Fair Value | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Long-Term Debt, including amounts due within one year**(a)** | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Exelon (b) | $ | 49,078 | $ | — | $ | 40,637 | $ | 4,318 | $ | 44,955 | $ | 44,400 | $ | — | $ | 35,337 | $ | 3,720 | $ | 39,057 | ||||||||||||||||||||||||||||||||||||||||||
| ComEd | 12,753 | — | 11,291 | — | 11,291 | 12,030 | — | 10,260 | — | 10,260 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| PECO | 6,396 | — | 5,593 | — | 5,593 | 5,704 | — | 4,816 | — | 4,816 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| BGE | 6,041 | — | 5,510 | — | 5,510 | 5,395 | — | 4,702 | — | 4,702 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| PHI | 9,590 | — | 4,236 | 4,318 | 8,554 | 9,124 | — | 4,093 | 3,720 | 7,813 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Pepco | 4,632 | — | 2,546 | 1,861 | 4,407 | 4,362 | — | 2,475 | 1,544 | 4,019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| DPL | 2,344 | — | 657 | 1,410 | 2,067 | 2,220 | — | 623 | 1,250 | 1,873 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| ACE | 2,033 | — | 819 | 1,047 | 1,866 | 1,933 | — | 787 | 925 | 1,712 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Long-Term Debt to Financing Trusts | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Exelon | $ | 390 | $ | — | $ | — | $ | 403 | $ | 403 | $ | 390 | $ | — | $ | — | $ | 396 | $ | 396 | ||||||||||||||||||||||||||||||||||||||||||
| ComEd | 206 | — | — | 216 | 216 | 206 | — | — | 208 | 208 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| PECO | 184 | — | — | 187 | 187 | 184 | — | — | 188 | 188 |
(a)Includes unamortized debt issuance costs, unamortized debt discount and premium, net, purchase accounting fair value adjustments, and finance lease liabilities which are not fair valued. Refer to Note 14 — Debt and Credit Agreements for unamortized debt issuance costs, unamortized debt discount and premium, net, and purchase accounting fair value adjustments and Note 9 — Leases for finance lease liabilities.
(b)Includes the net carrying amount and the estimated fair value (Level 2) of the Convertible Senior Notes of $988 million and $1 billion for the year ended December 31, 2025, respectively.
Combined Notes to Consolidated Financial Statements
(Dollars in millions, except per share data unless otherwise noted)
Note 15 — Fair Value of Financial Assets and Liabilities
Exelon uses the following methods and assumptions to estimate fair value of financial liabilities recorded at carrying cost:
| Type | Level | Registrants | Valuation | ||||||||
| Long-Term Debt, including amounts due within one year | |||||||||||
| Taxable Debt Securities | 2 | All | The fair value is determined by a valuation model that is based on a conventional discounted cash flow methodology and utilizes assumptions of current market pricing curves. Exelon obtains credit spreads based on trades of existing Exelon debt securities as well as other issuers in the utility sector with similar credit ratings. The yields are then converted into discount rates of various tenors that are used for discounting the respective cash flows of the same tenor for each bond or note. | ||||||||
| Variable Rate Financing Debt | 2 | Exelon, DPL | Debt rates are reset on a regular basis and the carrying value approximates fair value. | ||||||||
| Non-Government Backed Fixed Rate Nonrecourse Debt | 2 | Exelon | Fair value is based on market and quoted prices for its own and other nonrecourse debt with similar risk profiles. Given the low trading volume in the nonrecourse debt market, the price quotes used to determine fair value will reflect certain qualitative factors, such as market conditions, investor demand, new developments that might significantly impact the project cash flows or off-taker credit, and other circumstances related to the project. | ||||||||
| Taxable Private Placement Debt Securities | 3 | Exelon, Pepco, DPL, ACE | Rates are obtained similar to the process for taxable debt securities. Due to low trading volume and qualitative factors such as market conditions, low volume of investors, and investor demand, these debt securities are Level 3. | ||||||||
| Long-Term Debt to Financing Trusts | |||||||||||
| Long Term Debt to Financing Trusts | 3 | Exelon, ComEd, PECO | Fair value is based on publicly traded securities issued by the financing trusts. Due to low trading volume of these securities and qualitative factors, such as market conditions, investor demand, and circumstances related to each issue, this debt is classified as Level 3. |
Combined Notes to Consolidated Financial Statements
(Dollars in millions, except per share data unless otherwise noted)
Note 15 — Fair Value of Financial Assets and Liabilities
Recurring Fair Value Measurements
The following tables present assets and liabilities measured and recorded at fair value in the Registrants' Consolidated Balance Sheets on a recurring basis and their level within the fair value hierarchy at December 31, 2025 and 2024. Exelon and the Utility Registrants have immaterial and no financial assets or liabilities measured using the NAV practical expedient, respectively.
Exelon
| At December 31, 2025 | At December 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||
| Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||||||||||||||||
| Assets | |||||||||||||||||||||||||||||||||||||||||||||||
| Cash equivalents(a) | $ | 825 | $ | — | $ | — | $ | 825 | $ | 544 | $ | — | $ | — | $ | 544 | |||||||||||||||||||||||||||||||
| Rabbi trust investments | |||||||||||||||||||||||||||||||||||||||||||||||
| Cash equivalents | 101 | — | — | 101 | 94 | — | — | 94 | |||||||||||||||||||||||||||||||||||||||
| Mutual funds | 71 | — | — | 71 | 65 | — | — | 65 | |||||||||||||||||||||||||||||||||||||||
| Fixed income | — | 6 | — | 6 | — | 6 | — | 6 | |||||||||||||||||||||||||||||||||||||||
| Life insurance contracts | — | 79 | 21 | 100 | — | 73 | 22 | 95 | |||||||||||||||||||||||||||||||||||||||
| Rabbi trust investments subtotal | 172 | 85 | 21 | 278 | 159 | 79 | 22 | 260 | |||||||||||||||||||||||||||||||||||||||
| Interest rate derivative assets | |||||||||||||||||||||||||||||||||||||||||||||||
| Derivatives designated as hedging instruments | — | 3 | — | 3 | — | 26 | — | 26 | |||||||||||||||||||||||||||||||||||||||
| Interest rate derivative assets subtotal | — | 3 | — | 3 | — | 26 | — | 26 | |||||||||||||||||||||||||||||||||||||||
| Total assets | 997 | 88 | 21 | 1,106 | 703 | 105 | 22 | 830 | |||||||||||||||||||||||||||||||||||||||
| Liabilities | |||||||||||||||||||||||||||||||||||||||||||||||
| Commodity derivative liabilities | — | — | (131) | (131) | — | — | (132) | (132) | |||||||||||||||||||||||||||||||||||||||
| Interest rate derivative liabilities | |||||||||||||||||||||||||||||||||||||||||||||||
| Derivatives designated as hedging instruments | — | (4) | — | (4) | — | (1) | — | (1) | |||||||||||||||||||||||||||||||||||||||
| Interest rate derivative liabilities subtotal | — | (4) | — | (4) | — | (1) | — | (1) | |||||||||||||||||||||||||||||||||||||||
| Deferred compensation obligation | — | (71) | — | (71) | — | (74) | — | (74) | |||||||||||||||||||||||||||||||||||||||
| Total liabilities | — | (75) | (131) | (206) | — | (75) | (132) | (207) | |||||||||||||||||||||||||||||||||||||||
| Total net assets (liabilities) | $ | 997 | $ | 13 | $ | (110) | $ | 900 | $ | 703 | $ | 30 | $ | (110) | $ | 623 |
(a)Excludes cash of $180 million and $219 million at December 31, 2025 and 2024, respectively, and restricted cash of $196 million and $176 million at December 31, 2025 and 2024, respectively, and includes long-term restricted cash of $50 million and $41 million at December 31, 2025 and 2024, respectively, which is reported in Other deferred debits in the Consolidated Balance Sheets.
Combined Notes to Consolidated Financial Statements
(Dollars in millions, except per share data unless otherwise noted)
Note 15 — Fair Value of Financial Assets and Liabilities
ComEd, PECO, and BGE
| ComEd | PECO | BGE | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| At December 31, 2025 | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Assets | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Cash equivalents(a) | $ | 393 | $ | — | $ | — | $ | 393 | $ | 93 | $ | — | $ | — | $ | 93 | $ | 205 | $ | — | $ | — | $ | 205 | |||||||||||||||||||||||||||||||||||||||||||||||
| Rabbi trust investments | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Mutual funds | — | — | — | — | 13 | — | — | 13 | 10 | — | — | 10 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Life insurance contracts | — | — | — | — | — | 25 | — | 25 | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Rabbi trust investments subtotal | — | — | — | — | 13 | 25 | — | 38 | 10 | — | — | 10 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total assets | 393 | — | — | 393 | 106 | 25 | — | 131 | 215 | — | — | 215 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Liabilities | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Commodity derivative liabilities(b) | — | — | (131) | (131) | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Deferred compensation obligation | — | (9) | — | (9) | — | (8) | — | (8) | — | (4) | — | (4) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total liabilities | — | (9) | (131) | (140) | — | (8) | — | (8) | — | (4) | — | (4) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total net assets (liabilities) | $ | 393 | $ | (9) | $ | (131) | $ | 253 | $ | 106 | $ | 17 | $ | — | $ | 123 | $ | 215 | $ | (4) | $ | — | $ | 211 |
| ComEd | PECO | BGE | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| At December 31, 2024 | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Assets | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Cash equivalents(a) | $ | 390 | $ | — | $ | — | $ | 390 | $ | 29 | $ | — | $ | — | $ | 29 | $ | 1 | $ | — | $ | — | $ | 1 | |||||||||||||||||||||||||||||||||||||||||||||||
| Rabbi trust investments | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Mutual funds | — | — | — | — | 12 | — | — | 12 | 10 | — | — | 10 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Life insurance contracts | — | — | — | — | — | 22 | — | 22 | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Rabbi trust investments subtotal | — | — | — | — | 12 | 22 | — | 34 | 10 | — | — | 10 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total assets | 390 | — | — | 390 | 41 | 22 | — | 63 | 11 | — | — | 11 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Liabilities | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Commodity derivative liabilities(b) | — | — | (132) | (132) | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Deferred compensation obligation | — | (8) | — | (8) | — | (7) | — | (7) | — | (4) | — | (4) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total liabilities | — | (8) | (132) | (140) | — | (7) | — | (7) | — | (4) | — | (4) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total net assets (liabilities) | $ | 390 | $ | (8) | $ | (132) | $ | 250 | $ | 41 | $ | 15 | $ | — | $ | 56 | $ | 11 | $ | (4) | $ | — | $ | 7 |
(a)ComEd excludes cash of $77 million and $66 million at December 31, 2025 and 2024, respectively, and restricted cash of $193 million and $176 million at December 31, 2025 and 2024, respectively, and includes long-term restricted cash of $50 million and $41 million at December 31, 2025 and 2024, respectively, which is reported in Other deferred debits in the Consolidated Balance Sheets. PECO excludes cash of $23 million and $19 million at December 31, 2025 and 2024, respectively. BGE excludes cash of $15 million and $33 million at December 31, 2025 and 2024, respectively.
(b)The Level 3 balance consists of the current and noncurrent liability of $25 million and $106 million, respectively, at December 31, 2025, and $29 million and $103 million, respectively, at December 31, 2024 related to floating-to-fixed energy swap contracts with unaffiliated suppliers.
Combined Notes to Consolidated Financial Statements
(Dollars in millions, except per share data unless otherwise noted)
Note 15 — Fair Value of Financial Assets and Liabilities
PHI, Pepco, DPL, and ACE
| At December 31, 2025 | At December 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||
| PHI | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||||||||||||||
| Assets | |||||||||||||||||||||||||||||||||||||||||||||||
| Cash equivalents(a) | $ | 83 | $ | — | $ | — | $ | 83 | $ | 93 | $ | — | $ | — | $ | 93 | |||||||||||||||||||||||||||||||
| Rabbi trust investments | |||||||||||||||||||||||||||||||||||||||||||||||
| Cash equivalents | 99 | — | — | 99 | 92 | — | — | 92 | |||||||||||||||||||||||||||||||||||||||
| Mutual funds | 9 | — | — | 9 | 9 | — | — | 9 | |||||||||||||||||||||||||||||||||||||||
| Fixed income | — | 6 | — | 6 | — | 6 | — | 6 | |||||||||||||||||||||||||||||||||||||||
| Life insurance contracts | — | 23 | 20 | 43 | — | 23 | 21 | 44 | |||||||||||||||||||||||||||||||||||||||
| Rabbi trust investments subtotal | 108 | 29 | 20 | 157 | 101 | 29 | 21 | 151 | |||||||||||||||||||||||||||||||||||||||
| Total assets | 191 | 29 | 20 | 240 | 194 | 29 | 21 | 244 | |||||||||||||||||||||||||||||||||||||||
| Liabilities | |||||||||||||||||||||||||||||||||||||||||||||||
| Deferred compensation obligation | — | (9) | — | (9) | — | (12) | — | (12) | |||||||||||||||||||||||||||||||||||||||
| Total liabilities | — | (9) | — | (9) | — | (12) | — | (12) | |||||||||||||||||||||||||||||||||||||||
| Total net assets | $ | 191 | $ | 20 | $ | 20 | $ | 231 | $ | 194 | $ | 17 | $ | 21 | $ | 232 |
| Pepco | DPL | ACE | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| At December 31, 2025 | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Assets | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Cash equivalents(a) | $ | 33 | $ | — | $ | — | $ | 33 | $ | 3 | $ | — | $ | — | $ | 3 | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||||||||||||||||||||||||||||
| Rabbi trust investments | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Cash equivalents | 98 | — | — | 98 | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Life insurance contracts | — | 23 | 20 | 43 | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Rabbi trust investments subtotal | 98 | 23 | 20 | 141 | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total assets | 131 | 23 | 20 | 174 | 3 | — | — | 3 | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Liabilities | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Deferred compensation obligation | — | (1) | — | (1) | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total liabilities | — | (1) | — | (1) | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total net assets | $ | 131 | $ | 22 | $ | 20 | $ | 173 | $ | 3 | $ | — | $ | — | $ | 3 | $ | — | $ | — | $ | — | $ | — |
| Pepco | DPL | ACE | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| At December 31, 2024 | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Assets | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Cash equivalents(a) | $ | 21 | $ | — | $ | — | $ | 21 | $ | 3 | $ | — | $ | — | $ | 3 | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||||||||||||||||||||||||||||
| Rabbi trust investments | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Cash equivalents | 91 | — | — | 91 | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Life insurance contracts | — | 23 | 21 | 44 | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Rabbi trust investments subtotal | 91 | 23 | 21 | 135 | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total assets | 112 | 23 | 21 | 156 | 3 | — | — | 3 | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Liabilities | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Deferred compensation obligation | — | (1) | — | (1) | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total liabilities | — | (1) | — | (1) | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total net assets | $ | 112 | $ | 22 | $ | 21 | $ | 155 | $ | 3 | $ | — | $ | — | $ | 3 | $ | — | $ | — | $ | — | $ | — |
(a)PHI excludes cash of $56 million and $70 million at December 31, 2025 and 2024, respectively, and restricted cash of $2 million and zero at December 31, 2025 and 2024, respectively. Pepco excludes cash of $22 million and $30 million at December 31, 2025 and 2024, respectively. DPL excludes cash of $9 million and $20 million at December 31, 2025 and 2024, respectively. ACE excludes cash of $22 million and $14 million at December 31, 2025 and 2024, respectively, and restricted cash of $2 million and zero at December 31, 2025 and 2024, respectively.
Combined Notes to Consolidated Financial Statements
(Dollars in millions, except per share data unless otherwise noted)
Note 15 — Fair Value of Financial Assets and Liabilities
Reconciliation of Level 3 Assets and Liabilities
The following tables present the fair value reconciliation of Level 3 assets and liabilities measured at fair value on a recurring basis during the years ended December 31, 2025 and 2024:
| Exelon | ComEd | PHI and Pepco | ||||||||||||||||||
| For the year ended December 31, 2025 | Total | Commodity Derivatives | Life Insurance Contracts | |||||||||||||||||
| Balance at December 31, 2024 | $ | (110) | $ | (132) | $ | 21 | ||||||||||||||
| Total realized / unrealized gains (losses) | ||||||||||||||||||||
| Included in net income(a) | 1 | — | 1 | |||||||||||||||||
| Included in regulatory assets/liabilities(b) | 1 | 1 | — | |||||||||||||||||
| Settlements | (2) | — | (2) | |||||||||||||||||
| Balance at December 31, 2025**(c)** | $ | (110) | $ | (131) | $ | 20 | ||||||||||||||
| The amount of total gains included in income attributed to the change in unrealized gains (losses) related to assets and liabilities as of December 31, 2025 | $ | 1 | $ | — | $ | 1 |
| Exelon | ComEd | PHI and Pepco | |||||||||||||||
| For the year ended December 31, 2024 | Total | Commodity Derivatives | Life Insurance Contracts | ||||||||||||||
| Balance at December 31, 2023 | $ | (90) | $ | (133) | $ | 41 | |||||||||||
| Total realized / unrealized gains (losses) | |||||||||||||||||
| Included in net income(a) | 1 | — | 2 | ||||||||||||||
| Included in regulatory assets/liabilities (b) | 1 | 1 | — | ||||||||||||||
| Settlements | (22) | — | (22) | ||||||||||||||
| Balance at December 31, 2024**(c)** | $ | (110) | $ | (132) | $ | 21 | |||||||||||
| The amount of total gains included in income attributed to the change in unrealized gains (losses) related to assets and liabilities as of December 31, 2024 | $ | 1 | $ | — | $ | 2 |
(a)Classified in Operating and maintenance expense in the Consolidated Statements of Operations and Comprehensive Income.
(b)For ComEd, this includes $45 million of decreases in fair value and an increase for realized gains due to settlements of $46 million recorded in Purchased power expense associated with floating-to-fixed energy swap contracts with unaffiliated suppliers for the year ended December 31, 2025. Includes $40 million of decreases in fair value and an increase for realized gains due to settlements of $40 million recorded in Purchased power expense associated with floating-to-fixed energy swap contracts with unaffiliated suppliers for the year ended December 31, 2024.
(c)For ComEd, the balance of the current and noncurrent asset was zero as of December 31, 2025. The balance consists of a current and noncurrent liability of $25 million and $106 million, respectively, as of December 31, 2025.
Valuation Techniques Used to Determine Fair Value
Cash Equivalents (All Registrants). Investments with original maturities of three months or less when purchased, including mutual and money market funds, are considered cash equivalents. The fair values are based on observable market prices and, therefore, are included in the recurring fair value measurements hierarchy as Level 1.
Rabbi Trust Investments (Exelon, PECO, BGE, PHI, and Pepco). The Rabbi trusts were established to hold assets related to deferred compensation plans existing for certain active and retired members of Exelon’s executive management and directors. The Rabbi trusts' assets are included in Investments in the Registrants’ Consolidated Balance Sheets and consist primarily of money market funds, mutual funds, fixed income securities, and life insurance policies. Money market funds and mutual funds are publicly quoted and have been categorized as Level 1 given the clear observability of the prices. The fair values of fixed income securities are based on evaluated prices that reflect observable market information, such as actual trade information or similar securities, adjusted for observable differences and are categorized in Level 2. The life insurance policies are
Combined Notes to Consolidated Financial Statements
(Dollars in millions, except per share data unless otherwise noted)
Note 15 — Fair Value of Financial Assets and Liabilities
valued using the cash surrender value of the policies, net of loans against those policies, which is provided by a third-party. Certain life insurance policies, which consist primarily of mutual funds that are priced based on observable market data, have been categorized as Level 2 because the life insurance policies can be liquidated at the reporting date for the value of the underlying assets. Life insurance policies that are valued using unobservable inputs have been categorized as Level 3, where the fair value is determined based on the cash surrender value of the policy, which contains unobservable inputs and assumptions. Because Exelon relies on its third-party insurance provider to develop the inputs without adjustment for the valuations of its Level 3 investments, quantitative information about significant unobservable inputs used in valuing these investments is not reasonably available to Exelon. Therefore, Exelon has not disclosed such inputs.
Interest Rate Derivatives (Exelon). Exelon may utilize fixed-to-floating or floating-to-fixed interest rate swaps as a means to manage interest rate risk and to lock in interest levels in anticipation of future financings. These interest rate derivatives are typically designated as cash flow hedges. Exelon determines the current fair value by calculating the net present value of expected payments and receipts under the swap agreement, based on and discounted by the market's expectation of future interest rates. Additional inputs to the net present value calculation may include the contract terms, counterparty credit risk and other market parameters. As these inputs are based on observable data and valuations of similar instruments, the interest rate swaps are categorized as Level 2 in the fair value hierarchy. See Note 13 — Derivative Financial Instruments for additional information on mark-to-market derivatives.
Deferred Compensation Obligations (All Registrants). The Registrants’ deferred compensation plans allow participants to defer certain cash compensation into a notional investment account. The Registrants include such plans in other current and noncurrent liabilities in their Consolidated Balance Sheets. The value of the Registrants’ deferred compensation obligations is based on the market value of the participants’ notional investment accounts. The underlying notional investments are comprised primarily of equities, mutual funds, commingled funds, and fixed income securities which are based on directly and indirectly observable market prices. Since the deferred compensation obligations themselves are not exchanged in an active market, they are categorized as Level 2 in the fair value hierarchy.
The value of certain employment agreement obligations (which are included with the Deferred Compensation Obligation in the tables above) are based on a known and certain stream of payments to be made over time and are categorized as Level 2 within the fair value hierarchy.
Commodity Derivatives (Exelon and ComEd). On December 17, 2010, ComEd entered into several 20-year floating to fixed energy swap contracts with unaffiliated suppliers for the procurement of long-term renewable energy and associated RECs. Delivery under the contracts began in June 2012. The fair value of these swaps has been designated as a Level 3 valuation due to the long tenure of the positions and the internal modeling assumptions. The modeling assumptions include using forward power prices. See Note 13 — Derivative Financial Instruments for additional information on mark-to-market derivatives.
The following table discloses the significant unobservable inputs to the forward curve used to value mark-to-market derivatives:
| Type of trade | Fair Value as of December 31, 2025 | Fair Value as of December 31, 2024 | Valuation Technique | Unobservable Input | 2025 Range & Arithmetic Average | 2024 Range & Arithmetic Average | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Commodity derivatives | $ | (131) | $ | (132) | Discounted Cash Flow | Forward power price(a) | $ | 29.75 | - | $ | 61.84 | $ | 41.95 | $ | 30.31 | - | $ | 59.88 | $ | 42.08 |
(a)An increase to the forward power price would increase the fair value.
16. Commitments and Contingencies (All Registrants)
Commitments
PHI Merger Commitments (Exelon, PHI, Pepco, DPL, and ACE). Approval of the PHI Merger in Delaware, New Jersey, Maryland, and the District of Columbia was conditioned upon Exelon and PHI agreeing to certain commitments. The following amounts represent total commitment costs that have been recorded since the
Combined Notes to Consolidated Financial Statements
(Dollars in millions, except per share data unless otherwise noted)
Note 16 — Commitments and Contingencies
acquisition date and the total remaining obligations for Exelon, PHI, Pepco, DPL, and ACE at December 31, 2025:
| Description | Exelon | PHI | Pepco | DPL | ACE | ||||||||||||||||||||||||
| Total commitments | $ | 513 | $ | 320 | $ | 120 | $ | 89 | $ | 111 | |||||||||||||||||||
| Remaining commitments(a) | 22 | 20 | 20 | — | — |
(a)Remaining commitments extend through 2026 and include escrow funds, charitable contributions, and rate credits.
Combined Notes to Consolidated Financial Statements
(Dollars in millions, except per share data unless otherwise noted)
Note 16 — Commitments and Contingencies
Commercial Commitments (All Registrants). The Registrants' commercial commitments at December 31, 2025, representing commitments potentially triggered by future events were as follows:
| Expiration within | |||||||||||||||||||||||||||||||||||||||||
| Exelon | Total | 2026 | 2027 | 2028 | 2029 | 2030 | 2031 and beyond | ||||||||||||||||||||||||||||||||||
| Letters of credit(a) | $ | 56 | $ | 54 | $ | 2 | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||||||||
| Surety bonds(b) | 279 | 199 | 2 | 78 | — | — | — | ||||||||||||||||||||||||||||||||||
| Financing trust guarantees(c) | 378 | — | — | 78 | — | — | 300 | ||||||||||||||||||||||||||||||||||
| Guaranteed lease residual values(d) | 24 | — | 4 | 6 | 4 | 4 | 6 | ||||||||||||||||||||||||||||||||||
| Total commercial commitments | $ | 737 | $ | 253 | $ | 8 | $ | 162 | $ | 4 | $ | 4 | $ | 306 | |||||||||||||||||||||||||||
| ComEd | |||||||||||||||||||||||||||||||||||||||||
| Letters of credit(a) | $ | 18 | $ | 16 | $ | 2 | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||||||||
| Surety bonds(b) | 42 | 40 | 2 | — | — | — | — | ||||||||||||||||||||||||||||||||||
| Financing trust guarantees(c) | 200 | — | — | — | — | — | 200 | ||||||||||||||||||||||||||||||||||
| Total commercial commitments | $ | 260 | $ | 56 | $ | 4 | $ | — | $ | — | $ | — | $ | 200 | |||||||||||||||||||||||||||
| PECO | |||||||||||||||||||||||||||||||||||||||||
| Letters of credit(a) | $ | 5 | $ | 5 | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||||||||
| Surety bonds(b) | 2 | 2 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
| Financing trust guarantees(c) | 178 | — | — | 78 | — | — | 100 | ||||||||||||||||||||||||||||||||||
| Total commercial commitments | $ | 185 | $ | 7 | $ | — | $ | 78 | $ | — | $ | — | $ | 100 | |||||||||||||||||||||||||||
| BGE | |||||||||||||||||||||||||||||||||||||||||
| Letters of credit(a) | $ | 27 | $ | 27 | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||||||||
| Surety bonds(b) | 3 | 3 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
| Total commercial commitments | $ | 30 | $ | 30 | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||||||||
| PHI | |||||||||||||||||||||||||||||||||||||||||
| Letters of credit(a) | $ | 4 | $ | 4 | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||||||||
| Surety bonds(b) | 173 | 95 | — | 78 | — | — | — | ||||||||||||||||||||||||||||||||||
| Guaranteed lease residual values(d) | 24 | — | 4 | 6 | 4 | 4 | 6 | ||||||||||||||||||||||||||||||||||
| Total commercial commitments | $ | 201 | $ | 99 | $ | 4 | $ | 84 | $ | 4 | $ | 4 | $ | 6 | |||||||||||||||||||||||||||
| Pepco | |||||||||||||||||||||||||||||||||||||||||
| Letters of credit(a) | $ | 2 | $ | 2 | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||||||||
| Surety bonds(b) | 160 | 82 | — | 78 | — | — | — | ||||||||||||||||||||||||||||||||||
| Guaranteed lease residual values(d) | 8 | — | 1 | 2 | 1 | 2 | 2 | ||||||||||||||||||||||||||||||||||
| Total commercial commitments | $ | 170 | $ | 84 | $ | 1 | $ | 80 | $ | 1 | $ | 2 | $ | 2 | |||||||||||||||||||||||||||
| DPL | |||||||||||||||||||||||||||||||||||||||||
| Letters of credit(a) | $ | 1 | $ | 1 | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||||||||
| Surety bonds(b) | 7 | 7 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
| Guaranteed lease residual values(d) | 9 | — | 2 | 2 | 2 | 1 | 2 | ||||||||||||||||||||||||||||||||||
| Total commercial commitments | $ | 17 | $ | 8 | $ | 2 | $ | 2 | $ | 2 | $ | 1 | $ | 2 | |||||||||||||||||||||||||||
| ACE | |||||||||||||||||||||||||||||||||||||||||
| Letters of credit(a) | $ | 1 | $ | 1 | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||||||||
| Surety bonds(b) | 6 | 6 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
| Guaranteed lease residual values(d) | 7 | — | 1 | 2 | 1 | 1 | 2 | ||||||||||||||||||||||||||||||||||
| Total commercial commitments | $ | 14 | $ | 7 | $ | 1 | $ | 2 | $ | 1 | $ | 1 | $ | 2 |
Combined Notes to Consolidated Financial Statements
(Dollars in millions, except per share data unless otherwise noted)
Note 16 — Commitments and Contingencies
(a)Exelon and certain of its subsidiaries maintain non-debt letters of credit to provide credit support for certain transactions as requested by third parties.
(b)Surety bonds—Guarantees issued related to contract and commercial agreements, excluding bid bonds. Historically, payments under the guarantees have not been made and the likelihood of payments being required is remote.
(c)Reflects guarantee of ComEd and PECO securities held by ComEd Financing III, PECO Trust III, and PECO Trust IV.
(d)Represents the maximum potential obligation in the event the fair value of certain leased equipment and fleet vehicles is zero at the end of the maximum lease term. The lease term associated with these assets ranges from 1 to 8 years. The maximum potential obligation at the end of the minimum lease term would be $54 million guaranteed by Exelon and PHI, of which $18 million, $20 million, and $16 million is guaranteed by Pepco, DPL, and ACE, respectively. Historically, payments under the guarantees have not been made and PHI believes the likelihood of payments being required under the guarantees is remote.
Environmental Remediation Matters
General (All Registrants). The Registrants’ operations have in the past, and may in the future, require substantial expenditures to comply with environmental laws. Additionally, under federal and state environmental laws, the Registrants are generally liable for the costs of remediating environmental contamination of property now or formerly owned by them and of property contaminated by hazardous substances generated by them. The Registrants own or lease a number of real estate parcels, including parcels on which their operations or the operations of others may have resulted in contamination by substances that are considered hazardous under environmental laws. In addition, the Registrants are currently involved in a number of proceedings relating to sites where hazardous substances have been deposited and may be subject to additional proceedings in the future. Unless otherwise disclosed, the Registrants cannot reasonably estimate whether they will incur significant liabilities for additional investigation and remediation costs at these or additional sites identified by the Registrants, environmental agencies, or others, or whether such costs will be recoverable from third parties, including customers. Additional costs could have a material, unfavorable impact on the Registrants' financial statements.
MGP Sites (All Registrants). ComEd, PECO, BGE, and DPL have identified sites where former MGP or gas purification activities have or may have resulted in actual site contamination. For some sites, there are additional PRPs that may share responsibility for the ultimate remediation of each location.
-
ComEd has 16 sites currently under some degree of active study and/or remediation. ComEd expects the majority of the remediation at these sites to continue through at least 2033.
-
PECO has 6 sites currently under some degree of active study and/or remediation. PECO expects the majority of the remediation at these sites to continue through at least 2030.
-
BGE has 4 sites currently requiring some level of remediation and/or ongoing activity. BGE expects the majority of the remediation at these sites to continue through at least 2026.
-
DPL has 1 site currently under study and the required cost at the site is not expected to be material.
The historical nature of the MGP and gas purification sites, and the fact that many of the sites have been buried and built over, impacts the ability to determine a precise estimate of the ultimate costs prior to initial sampling and determination of the exact scope and method of remedial activity. Management determines its best estimate of remediation costs using all available information at the time of each study, including probabilistic and deterministic modeling for ComEd and PECO, and the remediation standards currently required by the applicable state environmental agency. Prior to performing of any significant clean up, each site remediation plan is approved by the appropriate state environmental agency.
ComEd, pursuant to an ICC order, and PECO, pursuant to a PAPUC order, are currently recovering environmental remediation costs of former MGP facility sites through customer rates. While BGE and DPL do not have riders for MGP clean-up costs, they have historically received recovery of actual clean-up costs in distribution rates.
In 2025, ComEd and PECO completed an annual study of their future estimated MGP remediation requirements. ComEd's study resulted in a $12 million increase to the environmental liability and related Regulatory asset, primarily due to increased costs resulting from inflation, adjustments to unit costs, and changes in remediation
Combined Notes to Consolidated Financial Statements
(Dollars in millions, except per share data unless otherwise noted)
Note 16 — Commitments and Contingencies
plans. PECO's study resulted in a $2 million decrease to the environmental liability and related Regulatory asset, primarily due to decreased costs resulting from changes in remediation plans.
At December 31, 2025 and 2024, the Registrants had accrued the following undiscounted amounts for environmental liabilities in Accrued expenses, Other current liabilities, and Other deferred credits and other liabilities in their respective Consolidated Balance Sheets:
| December 31, 2025 | December 31, 2024 | ||||||||||||||||||||||
| Total Environmental Investigation and Remediation Liabilities | Portion of Total Related to MGP Investigation and Remediation | Total Environmental Investigation and Remediation Liabilities | Portion of Total Related to MGP Investigation and Remediation | ||||||||||||||||||||
| Exelon | $ | 386 | $ | 321 | $ | 403 | $ | 322 | |||||||||||||||
| ComEd | 289 | 289 | 285 | 284 | |||||||||||||||||||
| PECO | 23 | 22 | 29 | 28 | |||||||||||||||||||
| BGE | 13 | 10 | 13 | 10 | |||||||||||||||||||
| PHI | 57 | — | 75 | — | |||||||||||||||||||
| Pepco | 55 | — | 73 | — | |||||||||||||||||||
| DPL | 1 | — | 1 | — | |||||||||||||||||||
| ACE | 1 | — | 1 | — |
Benning Road Site (Exelon, PHI, and Pepco). In September 2010, PHI received a letter from the EPA identifying the Benning Road site as one of six land-based sites potentially contributing to contamination of the lower Anacostia River. A portion of the site, which is owned by Pepco, was formerly the location of an electric generating facility owned by Pepco subsidiary, Pepco Energy Services (PES), which became a part of Constellation following the 2016 merger between PHI and Exelon. This generating facility was deactivated in June 2012. The remaining portion of the site consists of a Pepco transmission and distribution service center that remains in operation. In December 2011, the U.S. District Court for the District of Columbia approved a Consent Decree entered into by Pepco and Pepco Energy Services (hereinafter Pepco Entities) with the DOEE, which requires the Pepco Entities to conduct a Remedial Investigation and Feasibility Study (RI/FS) for the Benning Road site and an approximately 10 to 15-acre portion of the adjacent Anacostia River. The purpose of this RI/FS is to define the nature and extent of contamination from the Benning Road site and to evaluate remedial alternatives.
Pursuant to an internal agreement between the Pepco Entities, since 2013, Pepco has performed the work required by the Consent Decree and has been reimbursed for that work by an agreed upon allocation of costs between the Pepco Entities. In September 2019, the Pepco Entities issued a draft “final” RI report which the DOEE approved on February 3, 2020. In October 2022, the DOEE approved dividing the work to complete the landside portion of the FS from the waterside portion to expedite the overall schedule for completion of the project. The landside FS was approved by the DOEE on March 15th, 2024, and the waterside FS was approved by the DOEE on December 16, 2024. The DOEE and Pepco entered into an addendum to the Benning Consent Decree pursuant to which Pepco has agreed to fund or perform the remedial actions to be selected by the DOEE for the landside and waterside areas. This addendum to the Benning Consent Decree was entered by the Court on February 27, 2024 and became effective on that date. Pepco drafted separate proposed plans for the landside and waterside areas, which were approved and issued by the DOEE for public comment on December 16, 2024 and September 4, 2025, respectively. The public comment period for the landside and waterside areas closed on April 18, 2025 and October 31, 2025, respectively. Pepco submitted a matrix of proposed responses to the public comments and a proposed Record of Decision (ROD) to the DOEE for the landside area on August 15, 2025. Following the close of the waterside area comment period, Pepco will submit a matrix of proposed responses to the public comments and a proposed ROD to the DOEE for the waterside area. The DOEE will issue RODs identifying the remedial actions determined to be necessary for the landside and waterside areas, which will be implemented by Pepco in accordance with the Benning Consent Decree.
As part of the separation between Exelon and Constellation in February 2022, the internal agreement between the Pepco Entities for completion and payment for the remaining Consent Decree work was memorialized in a formal agreement for post-separation activities. A second post-separation assumption agreement between Exelon and Constellation transferred any of the potential remaining remediation liability, if any, of PES/Constellation to a non-utility subsidiary of Exelon which going forward will be responsible for those liabilities.
Combined Notes to Consolidated Financial Statements
(Dollars in millions, except per share data unless otherwise noted)
Note 16 — Commitments and Contingencies
Exelon, PHI, and Pepco have determined that a loss associated with this matter is probable and have accrued an estimated liability, which is included in the table above.
Anacostia River Tidal Reach (Exelon, PHI, and Pepco). Contemporaneous with the Benning Road site RI/FS being performed by the Pepco Entities, the DOEE and NPS have been conducting a separate RI/FS focused on the entire tidal reach of the Anacostia River extending from just north of the Maryland-District of Columbia boundary line to the confluence of the Anacostia and Potomac Rivers. The riverwide RI incorporated the results of the river sampling performed by the Pepco Entities as part of the Benning RI/FS, as well as similar sampling efforts conducted by owners of other sites adjacent to this segment of the river and supplemental river sampling conducted by the DOEE’s contractor.
On September 30, 2020, the DOEE released its Interim ROD for the Anacostia River sediments. The Interim ROD reflects an adaptive management approach which will require several identified “hot spots” in the river to be addressed first while continuing to conduct studies and to monitor the river to evaluate improvements and determine potential future remediation plans. The adaptive management process chosen by the DOEE is less intrusive, provides more long-term environmental certainty, is less costly, and allows for site specific remediation plans already underway, including the plan for the Benning Road site to proceed to conclusion.
On July 15, 2022, Pepco received a letter from the District of Columbia's Office of the Attorney General (D.C. OAG) on behalf of the DOEE conveying a settlement offer to resolve all PRPs' liability to the District of Columbia (District) for their past costs and their anticipated future costs to complete the work for the Interim ROD. Pepco responded on July 27, 2022 agreeing to enter into settlement discussions. Pepco and the District entered into another consent decree (the “Anacostia River Consent Decree”) pursuant to which Pepco agreed to pay $47 million to resolve its liability to the District for all past costs to perform the riverwide RI/FS and all future costs to complete the work required by the Interim ROD. This amount was agreed to be paid in four equal annual installments beginning a year after the effective date of the Anacostia River Consent Decree. Pepco paid the first installment of $12 million on April 9, 2025. The funds were deposited into the DOEE’s Clean Land Fund for the District’s costs of the Interim ROD work. The Anacostia River Consent Decree caps Pepco’s liability for these costs and provides Pepco with the right to seek contributions from other PRPs. The Anacostia River Consent Decree was signed by the judge for the U.S. District Court for the District of Columbia and became effective on April 11, 2024. Exelon, PHI, and Pepco have accrued a liability for Pepco’s payment obligations under the Anacostia Consent Decree and management's best estimate of its share of any other future Anacostia River response costs. Pepco has concluded that incremental exposure remains reasonably possible, but management cannot reasonably estimate a range of loss beyond the amounts recorded, which are included in the table above.
In addition to the activities associated with the remedial process outlined above, CERCLA separately requires federal and state (here including Washington, D.C.) Natural Resource Trustees (federal or state agencies designated by the President or the relevant state, respectively, or Indian tribes) to conduct an assessment of any damages to natural resources within their jurisdiction as a result of the contamination that is being remediated. The Trustees can seek compensation from responsible parties for such damages, including restoration costs. During the second quarter of 2018, Pepco became aware that the Trustees are in the beginning stages of a NRD assessment, a process that often takes many years beyond the remedial decision to complete. Pepco has concluded that a loss associated with the eventual NRD assessment is reasonably possible. Due to the early stage of the NRD process, Pepco cannot reasonably estimate the final range of loss potentially resulting from this process. Pepco has become aware, however, that the District is pursuing claims against other parties. Specifically, in January 2025, D.C. OAG filed a lawsuit against the United States seeking to declare the United States liable under CERCLA and the District of Columbia’s Brownfield Revitalization Act of 2000 and to recover the District’s response costs associated with its investigation and remediation of Anacostia River sediment contamination and for future NRDs. Pepco is not a party to this suit, but Pepco, the United States, and the District of Columbia have entered mediation discussions to resolve their respective claims against one another under CERCLA and the Brownfield Revitalization Act with respect to the river. The court has put the case on hold pending the outcome of the mediation.
As noted in the Benning Road Site disclosure above, as part of the separation of Exelon and Constellation in February 2022, an assumption agreement was executed transferring any potential future remediation liabilities associated with the Benning Site remediation to a non-utility subsidiary of Exelon. Similarly, any potential future liability associated with the Anacostia River Sediment Project was also assumed by this entity.
Combined Notes to Consolidated Financial Statements
(Dollars in millions, except per share data unless otherwise noted)
Note 16 — Commitments and Contingencies
Buzzard Point Site (Exelon, PHI, and Pepco). On December 8, 2022, Pepco received a letter from the D.C. OAG, alleging wholly past violations of the District's stormwater discharge and waste disposal requirements related to operations at the Buzzard Point facility, a 9-acre parcel of waterfront property in Washington, D.C. occupied by an active substation and former steam plant building. The letter also alleged wholly past violations by Pepco of stormwater discharge requirements related to its district-wide system of underground vaults. Pepco entered into a Consent Order with the District of Columbia to resolve the alleged violations without any admission of liability. The Consent Order requires Pepco to pay a civil penalty of $10 million. In addition, Pepco has agreed to assess the environmental conditions at its Buzzard Point facility and conduct any remedial actions deemed necessary as a result of the assessment, and also to assess potential environmental impacts associated with the operation of its underground vaults. The Superior Court for the District of Columbia signed and entered the Consent Order, and it became effective on February 2, 2024. Pepco is proceeding through the multi-step environmental investigation and response as outlined in the consent order. Specifically, the DOEE approved Pepco's Preliminary Site Assessment in July 2025. In September 2025, Pepco timely submitted its work plan for the second stage, the Supplemental Investigation Plan, which the DOEE approved in November 2025. Pepco also submitted an environmental assessment to the DOEE of the vault system pursuant to the Consent Order in July 2024. In response to the DOEE's comments, Pepco made revised submissions in May 2025, September 2025, and January 2026. The DOEE approved Pepco's vault system report on February 2, 2026. Exelon, PHI, and Pepco have accrued a liability for the projected costs for the required environmental assessments and remediation. In January 2025, Pepco paid the last installment of the civil penalty. Pepco has concluded that incremental exposure remains reasonably possible, but management cannot reasonably estimate a range of loss beyond the amounts recorded, which are included in the table above.
Litigation and Regulatory Matters
Fund Transfer Restrictions (All Registrants). Under applicable law, Exelon may borrow or receive an extension of credit from its subsidiaries. Under the terms of Exelon’s intercompany money pool agreement, Exelon can lend to, but not borrow from the money pool.
Under applicable law, ComEd, PECO, BGE, PHI, Pepco, DPL, and ACE can pay dividends only from retained, undistributed or current earnings. A significant loss recorded at ComEd, PECO, BGE, PHI, Pepco, DPL, or ACE may limit the dividends that these Registrants can distribute to Exelon.
ComEd has agreed in connection with financings arranged through ComEd Financing III that it will not declare dividends on any shares of its capital stock in the event that: (1) it exercises its right to extend the interest payment periods on the subordinated debt securities issued to ComEd Financing III; (2) it defaults on its guarantee of the payment of distributions on the preferred trust securities of ComEd Financing III; or (3) an event of default occurs under the Indenture under which the subordinated debt securities are issued. No such event has occurred.
PECO has agreed in connection with financings arranged through PEC L.P. and PECO Trust IV that PECO will not declare dividends on any shares of its capital stock in the event that: (1) it exercises its right to extend the interest payment periods on the subordinated debentures, which were issued to PEC L.P. or PECO Trust IV; (2) it defaults on its guarantee of the payment of distributions on the Series D Preferred Securities of PEC L.P. or the preferred trust securities of PECO Trust IV; or (3) an event of default occurs under the Indenture under which the subordinated debentures are issued. No such event has occurred.
BGE is subject to restrictions established by the MDPSC that prohibit BGE from paying a dividend on its common shares if (1) after the dividend payment, BGE’s equity ratio would be below 48% as calculated pursuant to the MDPSC’s ratemaking precedents or (2) BGE’s senior unsecured credit rating is rated by two of the three major credit rating agencies below investment grade. No such event has occurred.
Pepco is subject to certain dividend restrictions established by settlements approved by the MDPSC and DCPSC that prohibit Pepco from paying a dividend on its common shares if (1) after the dividend payment, Pepco's equity ratio would be below 48% as calculated pursuant to the MDPSC's and DCPSC's ratemaking precedents, of or (2) Pepco’s senior unsecured credit rating is rated by one of the three major credit rating agencies below investment grade. No such event has occurred.
DPL is subject to certain dividend restrictions established by settlements approved by the DEPSC and MDPSC that prohibit DPL from paying a dividend on its common shares if (1) after the dividend payment, DPL's equity
Combined Notes to Consolidated Financial Statements
(Dollars in millions, except per share data unless otherwise noted)
Note 16 — Commitments and Contingencies
ratio would be below 48% as calculated pursuant to the DEPSC's and MDPSC's ratemaking precedents, or (2) DPL’s corporate issuer or senior unsecured credit rating, or its equivalent, is rated by any of the three major credit rating agencies below the generally accepted definition of investment grade. No such event has occurred.
ACE is subject to certain dividend restrictions established by settlements approved by the NJBPU that prohibit ACE from paying a dividend on its common shares if (1) after the dividend payment, ACE's common equity ratio would be below 48% as calculated pursuant to the NJBPU's ratemaking precedents, or (2) ACE's senior corporate issuer or senior unsecured credit rating is rated by one of the three major credit rating agencies below investment grade. ACE is also subject to a dividend restriction which requires ACE to notify and obtain the prior approval of the NJBPU before dividends can be paid if its equity as a percent of its total capitalization, excluding securitization debt, falls below 30%. No such events have occurred.
DPA and Related Matters (Exelon and ComEd). Exelon and ComEd received a grand jury subpoena in the second quarter of 2019 from the U.S. Attorney’s Office for the Northern District of Illinois (USAO) requiring production of information concerning their lobbying activities in the State of Illinois. On October 4, 2019, Exelon and ComEd received a second grand jury subpoena from the USAO requiring production of records of any communications with certain individuals and entities. The Companies cooperated fully with the USAO and any government requests or inquiries. On July 17, 2020, ComEd entered into a DPA with the USAO to resolve the USAO investigation into its historical state legislative lobbying and related practices in Illinois. The agreement resolved the Department of Justice, investigation into both ComEd and Exelon. which included a payment to the U.S. Treasury of $200 million, which was paid in November 2020. The three-year term of the DPA ended on July 17, 2023, and on that same date the court granted the USAO’s motion to dismiss the pending charge against ComEd that had been deferred by the DPA.
Subsequent to Exelon announcing the receipt of the USAO subpoenas, various lawsuits were filed related to the subject of the subpoenas, and the conduct described in the DPA. Several putative class actions were brought in federal and state court by ComEd customers. These actions were dismissed prior to discovery or trial and those dismissals were affirmed on appeal. A putative class action alleging misrepresentations and omissions in Exelon’s SEC filings related to ComEd’s lobbying activities and the related investigations was also brought in federal court against Exelon and ComEd, which was subsequently settled.
In addition, subsequent to Exelon announcing the receipt of the USAO subpoenas, several shareholders sent letters to the Exelon Board of Directors demanding, among other things, that the Exelon Board of Directors investigate and address alleged breaches of fiduciary duties and other alleged violations by Exelon and ComEd officers and directors related to the conduct described in the DPA. In the first quarter of 2021, the Exelon Board of Directors appointed a Special Litigation Committee (SLC) consisting of disinterested and independent parties to investigate and address these shareholders’ allegations and make recommendations to the Exelon Board of Directors based on the outcome of the SLC’s investigation. In July 2021, one of the demand letter shareholders filed a derivative action against current and former Exelon and ComEd officers and directors, and against Exelon, as nominal defendant, asserting the same claims made in its demand letter. Since that date, multiple parties have filed separate derivative lawsuits that were subsequently consolidated. On October 12, 2021, the parties filed an agreed motion to stay the litigation for 120 days in order to allow the SLC to continue its investigation, which the court granted. The stay was extended several times. Through mediation efforts, a settlement of the derivative claims was reached by the SLC, the Independent Review Committee of the Board (which had been formed in the third quarter of 2022, to ensure the Board’s consideration of any SLC recommendations would be independent and objective), the Board, and certain of the derivative shareholders. On June 16, 2023, the SLC filed a motion for preliminary approval of the settlement, attaching the Stipulation and Agreement of Settlement (Stipulation), which contained the terms of the proposed settlement. The proposed settlement terms include but are not limited to: a payment of $40 million to Exelon by Exelon’s insurers of which $10 million constitutes the attorneys’ fee award to be paid to the Settling Shareholders’ counsel; various compliance and disclosure-related reforms; and certain changes in Board and Committee composition. The non-settling shareholders objected to the settlement and opposed preliminary approval. On September 20, 2024, the court denied without prejudice the SLC’s motion for preliminary approval. The court’s order provided that if the SLC can substantiate or otherwise revise the attorneys’ fees aspect of the settlement, then the SLC could renew its motion for preliminary approval by October 21, 2024. On October 21, 2024, the SLC filed its second renewed motion for preliminary approval, and the Settling Shareholders filed a brief in support of the SLC's second renewed motion for preliminary approval. On November 20, 2024, the non-settling plaintiffs filed an opposition to the renewed motion for preliminary approval. On December 18, 2024, the SLC and Settling Shareholders filed replies in support of the
Combined Notes to Consolidated Financial Statements
(Dollars in millions, except per share data unless otherwise noted)
Note 16 — Commitments and Contingencies
renewed motion for preliminary approval. The court granted the renewed motion for preliminary approval on November 17, 2025, and set the final settlement approval hearing for March 18, 2026.
Maryland Sales and Use Tax Refund Claim (Exelon, BGE, PHI, Pepco, and DPL). Maryland imposes a 6% sales and use tax on the purchase of most goods and services. BGE, Pepco, and DPL have filed or plan to file protective refund claims, totaling an estimated $100 million, treating electric transmission and distribution machinery and equipment as nontaxable pursuant to the manufacturing exemption available under the Maryland sales and use tax law. The Maryland Comptroller has initially denied the refund claim and litigation is pending.
On November 22, 2024, the Appellate Court of Maryland, in a case involving a regulated electric utility operating in Maryland, ruled the purchase of certain transmission and distribution equipment qualify for the sales tax manufacturing exemption. On December 20, 2024, the Maryland Attorney General, on behalf of the Maryland Comptroller, filed a motion for reconsideration with the Appellate Court of Maryland of its ruling. The motion for reconsideration was denied on February 3, 2025.
On February 18, 2025, the Maryland Attorney General, on behalf of the Maryland Comptroller, filed a petition with the Maryland Supreme Court requesting review of the Appellate Court of Maryland's ruling. On April 24, 2025, the Maryland Supreme Court granted the petition to review the ruling. On October 1, 2025, the Maryland Supreme Court heard oral arguments in the case.
In the event transmission and distribution equipment is determined to be exempt, Exelon, BGE, PHI, Pepco, and DPL will record estimated receivables of $100 million, $65 million, $35 million, $25 million, and $10 million, respectively. The sales tax payments were primarily capitalized; therefore, the refund would be recorded as a reduction to PP&E included in rate base.
General (All Registrants). The Registrants are involved in various other litigation matters that are being defended and handled in the ordinary course of business. The Registrants are also from time to time subject to audits and investigations by the FERC and other regulators. The assessment of whether a loss is probable or reasonably possible, and whether the loss or a range of loss is estimable, often involves a series of complex judgments about future events. The Registrants maintain accruals for such losses that are probable of being incurred and subject to reasonable estimation. Management is sometimes unable to estimate an amount or range of reasonably possible loss, particularly where (1) the damages sought are indeterminate, (2) the proceedings are in the early stages, or (3) the matters involve novel or unsettled legal theories. In such cases, there is considerable uncertainty regarding the timing or ultimate resolution of such matters, including a possible eventual loss.
Combined Notes to Consolidated Financial Statements
(Dollars in millions, except per share data unless otherwise noted)
Note 17 — Shareholders' Equity
17. Shareholders' Equity (All Registrants)
At-the-Market Program (Exelon)
On August 4, 2022, Exelon executed an equity distribution agreement (“2022 Equity Distribution Agreement”), with certain sales agents and forward sellers and certain forward purchasers, establishing an ATM equity distribution program under which it may offer and sell shares of its Common stock, having an aggregate gross sales price of up to $1 billion through August 3, 2025. On May 2, 2025, Exelon executed an additional equity distribution agreement ("2025 Equity Distribution Agreement" and, together with the August 4, 2022 Equity Distribution Agreement, "Equity Distribution Agreements"), with certain sales agents and forward sellers and certain forward purchasers, establishing an ATM equity distribution program which it may offer and sell shares of its Common stock, having an aggregate gross sales price of up to $2.5 billion through May 2, 2028. The 2025 Equity Distribution Agreement replaced the 2022 Equity Distribution Agreement. Exelon has no obligation to offer or sell any shares of Common stock under the 2025 Equity Distribution Agreement and may, at any time, suspend or terminate offers and sales under the 2025 Equity Distribution Agreement. Exelon issued the following shares of Common stock in the years ended December 31, 2025, 2024, and 2023:
| Effective Period | Shares Issued (in millions) | Weighted-Average Price (a) | Net Proceeds (b) (in millions) | |||||||||||||||||
| 2025 (c) | 16.0 | $ | 43.24 | $ | 691 | |||||||||||||||
| 2024 | 4.0 | $ | 37.60 | $ | 148 | |||||||||||||||
| 2023 | 3.6 | $ | 39.58 | $ | 140 | |||||||||||||||
(a)The 2025 weighted-average price is a net weighted-average price. The 2024 and 2023 weighted-average prices are the gross weighted-average prices as previously disclosed in the 2024 Form 10-K. The 2024 and 2023 weighted-average net prices are $37.04 and $38.99, respectively.
(b)Proceeds were used for general corporate purposes.
(c)In Q4 2025, Exelon settled the entire forward sale agreements with a December 15, 2025 maturity date that had been entered into by various forward sellers under the ATM program as outlined below.
In addition, during the twelve months ended December 31, 2025, Exelon entered into various forward sale agreements under the 2025 ATM programs. The forward sale agreements require Exelon to, at its election prior to the maturity date, either (i) physically settle the transactions by issuing shares of its Common stock to the forward counterparties in exchange for net proceeds at the then-applicable forward sale price specified by the agreements or (ii) net settle the transactions in whole or in part through the delivery to the forward counterparties or receipt from the forward counterparties of cash or shares in accordance with the provisions of the agreements. The following forward sale agreements were entered into under Exelon’s ATM programs in 2025:
| Effective Period | Shares Available (in millions) | Weighted-Average Net Price | Maturity Date | |||||||||||||||||
| Q1 2025 | 5.7 | $ | 43.24 | December 15, 2025 | ||||||||||||||||
| Q2 2025 | 6.2 | $ | 43.51 | December 15, 2025 | ||||||||||||||||
| Q2 2025 | 3.6 | $ | 43.17 | November 16, 2026 | ||||||||||||||||
| Q3 2025 | 11.5 | $ | 43.73 | December 15, 2026 | ||||||||||||||||
| Q4 2025 | 0.8 | $ | 45.42 | December 15, 2026 |
No amounts have been or will be recorded on Exelon's balance sheet with respect to the equity offerings until the equity forward sale agreements have been settled. Each initial forward sale price is subject to adjustment on a daily basis based on a floating interest rate factor and will decrease by other fixed amounts specified in the agreements. Until settlement of the equity forward, earnings per share dilution resulting from the agreement, if any, will be determined under the treasury stock method. For the twelve months ended December 31, 2025, approximately 15.4 million shares under the forward sale agreements were not included in the calculation of diluted earnings per share because their effect would have been antidilutive.
Inclusive of the impact of the forward sale agreements, $1.5 billion of Common stock remained available for sale pursuant to the ATM program as of December 31, 2025.
Combined Notes to Consolidated Financial Statements
(Dollars in millions, except per share data unless otherwise noted)
Note 17 — Shareholders' Equity
ComEd Common Stock Warrants
The following table presents warrants outstanding to purchase ComEd common stock and shares of common stock reserved for the conversion of warrants. The warrants entitle the holders to convert such warrants into common stock of ComEd at a conversion rate of one share of common stock for three warrants.
| December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| Warrants outstanding | 59,960 | 59,970 | |||||||||
| Common Stock reserved for conversion | 19,987 | 19,990 |
Share Repurchases
There currently is no Exelon Board of Director authority to repurchase shares. Any previous shares repurchased are held as treasury shares, at cost, unless cancelled or reissued at the discretion of Exelon’s management.
Preferred and Preference Securities
The following table presents Exelon, ComEd, PECO, BGE, Pepco, and ACE's shares of preferred securities authorized, none of which were outstanding, as of December 31, 2025 and 2024. There are no shares of preferred securities authorized for DPL.
| Preferred Securities Authorized | |||||
| Exelon | 100,000,000 | ||||
| ComEd | 850,000 | ||||
| PECO | 15,000,000 | ||||
| BGE | 1,000,000 | ||||
| Pepco | 6,000,000 | ||||
| ACE(a) | 2,799,979 |
(a)Includes 799,979 shares of cumulative preferred stock and 2,000,000 of no par value preferred stock as of December 31, 2025 and 2024.
The following table presents ComEd, BGE, and ACE's preference securities authorized, none of which were outstanding as of December 31, 2025 and 2024. There are no shares of preference securities authorized for Exelon, PECO, Pepco, and DPL.
| Preference Securities Authorized | |||||
| ComEd | 6,810,451 | ||||
| BGE(a) | 6,500,000 | ||||
| ACE | 3,000,000 |
(a)Includes 4,600,000 shares of unclassified preference securities and 1,900,000 shares of previously redeemed preference securities as of December 31, 2025 and 2024.
Combined Notes to Consolidated Financial Statements
(Dollars in millions, except per share data unless otherwise noted)
Note 18 — Stock-Based Compensation Plans
18. Stock-Based Compensation Plans (All Registrants)
Stock-Based Compensation Plans
Exelon grants stock-based awards through its LTIP, which primarily includes performance share awards and restricted stock units. At December 31, 2025, there were approximately 32 million shares authorized for issuance under the LTIP. For the years ended December 31, 2025, 2024, and 2023, exercised and distributed stock-based awards were primarily issued from authorized but unissued Common stock shares.
The Registrants grant cash awards. The following table does not include expense related to these plans as they are not considered stock-based compensation plans under the applicable authoritative guidance.
The following table presents the stock-based compensation expense included in Exelon's Consolidated Statements of Operations and Comprehensive Income. The Utility Registrants' stock-based compensation expense for the years ended December 31, 2025, 2024, and 2023 was not material.
| Year Ended December 31, | |||||||||||||||||
| Exelon | 2025 | 2024 | 2023 | ||||||||||||||
| Total stock-based compensation expense included in Operating and maintenance expense | $ | 41 | $ | 34 | $ | 21 | |||||||||||
| Income tax benefit | (10) | (8) | (5) | ||||||||||||||
| Total after-tax stock-based compensation expense | $ | 31 | $ | 26 | $ | 16 |
Exelon receives a tax deduction based on the intrinsic value of the award on the distribution date for performance share awards and restricted stock units. For each award, throughout the requisite service period, Exelon recognizes the tax benefit related to compensation costs. The following table presents information regarding Exelon’s realized tax benefit when distributed:
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Performance share awards | $ | 6 | $ | 9 | $ | 8 | |||||||||||
| Restricted stock units | 3 | 4 | 6 |
Performance Share Awards
Performance share awards are granted under the LTIP. The performance share awards granted in 2025 and 2024 are settled in common stock at the end of the three-year performance period. The performance share awards granted prior to 2024 are settled 50% in common stock and 50% in cash at the end of the three-year performance period, except for awards that are settled 100% in cash if certain ownership requirements are satisfied.
The common stock portion of the performance share awards is considered an equity award and is valued based on Exelon's stock price on the grant date. The cash portion of the performance share awards is considered a liability award which is remeasured each reporting period based on Exelon’s current stock price. As the value of the common stock and cash portions of the awards are based on Exelon’s stock price during the performance period, coupled with changes in the total shareholder return modifier and expected payout of the award, the compensation costs are subject to volatility until payout is established.
For nonretirement-eligible employees, stock-based compensation costs are recognized over the vesting period of three years using the straight-line method. For performance share awards granted to retirement-eligible employees, the value of the performance shares is recognized ratably over the vesting period, which is the year of grant for the employee who is retirement eligible prior to December 31 of the grant year or through the date of which the employee reaches retirement eligibility. Exelon processes forfeitures as they occur for employees who do not complete the requisite service period.
Combined Notes to Consolidated Financial Statements
(Dollars in millions, except per share data unless otherwise noted)
Note 18 — Stock-Based Compensation Plans
The following table summarizes Exelon’s nonvested performance share awards activity:
| Shares | Weighted Average Grant Date Fair Value (per share) | ||||||||||
| Nonvested at December 31, 2024**(a)** | 611,525 | $ | 39.66 | ||||||||
| Granted | 636,717 | 42.45 | |||||||||
| Change in performance | 150,204 | 39.29 | |||||||||
| Vested | (167,063) | 43.09 | |||||||||
| Forfeited | (139,898) | 40.22 | |||||||||
| Undistributed vested awards(b) | (450,924) | 41.71 | |||||||||
| Nonvested at December 31, 2025**(a)** | 640,561 | $ | 39.87 |
(a)Excludes 1,083,128 and 635,526 of performance share awards issued to retirement-eligible employees as of December 31, 2025 and 2024, respectively, as they are fully vested.
(b)Represents performance share awards that vested but were not distributed to retirement-eligible employees during 2025.
The following table summarizes the weighted average grant date fair value and the total fair value of performance share awards vested.
| Year Ended December 31, | |||||||||||||||||
| 2025**(a)** | 2024 | 2023 | |||||||||||||||
| Weighted average grant date fair value (per share) | $ | 42.45 | $ | 35.29 | $ | 41.82 | |||||||||||
| Total fair value of performance shares vested | 25 | 27 | 17 | ||||||||||||||
| Total fair value of performance shares settled in cash | 16 | 27 | 26 |
(a)As of December 31, 2025, $8 million of total unrecognized compensation costs related to nonvested performance shares are expected to be recognized over the remaining weighted-average period of 1.8 years.
Restricted Stock Units
Restricted stock units are granted under the LTIP with the majority being settled in a specific number of shares of common stock after the service condition has been met. The corresponding cost of services is measured based on the grant date fair value of the restricted stock unit issued.
The value of the restricted stock units is expensed over the requisite service period using the straight-line method. The requisite service period for restricted stock units is generally three to five years. However, certain restricted stock unit awards become fully vested upon the employee reaching retirement-eligibility. For restricted stock units granted to retirement-eligible employees, the value of the restricted stock units is either recognized ratably over the first six months in the year of grant if the employee reaches retirement eligibility prior to July 1st of the grant year or through the date of which the employee reaches retirement eligibility. Exelon processes forfeitures as they occur for employees who do not complete the requisite service period.
Combined Notes to Consolidated Financial Statements
(Dollars in millions, except per share data unless otherwise noted)
Note 18 — Stock-Based Compensation Plans
The following table summarizes Exelon’s nonvested restricted stock unit activity:
| Shares | Weighted Average Grant Date Fair Value (per share) | ||||||||||
| Nonvested at December 31, 2024**(a)** | 293,589 | $ | 39.29 | ||||||||
| Granted | 338,787 | 40.47 | |||||||||
| Vested | (163,374) | 40.59 | |||||||||
| Forfeited | (63,960) | 39.05 | |||||||||
| Undistributed vested awards(b) | (199,280) | 40.41 | |||||||||
| Nonvested at December 31, 2025**(a)** | 205,762 | $ | 39.19 |
(a)Excludes 363,156 and 126,732 of restricted stock units issued to retirement-eligible employees as of December 31, 2025 and 2024, respectively, as they are fully vested.
(b)Represents restricted stock units that vested but were not distributed to retirement-eligible employees during 2025.
The following table summarizes the weighted average grant date fair value and the total fair value of restricted stock units vested.
| Year Ended December 31, | |||||||||||||||||
| 2025**(a)** | 2024 | 2023 | |||||||||||||||
| Weighted average grant date fair value (per share) | $ | 40.47 | $ | 35.54 | $ | 41.84 | |||||||||||
| Total fair value of restricted stock units vested | 15 | 21 | 15 |
(a)As of December 31, 2025, $4 million of total unrecognized compensation costs related to nonvested restricted stock units are expected to be recognized over the remaining weighted-average period of 1.8 years.
19. Changes in Accumulated Other Comprehensive Income (Loss) (Exelon)
The following table presents changes in Exelon's AOCI, net of tax, by component:
| Cash Flow Hedges | Pension and Non-Pension Postretirement Benefit Plan Items (a) | Total | |||||||||||||||||||||||||||||||||
| Balance at December 31, 2022 | $ | 2 | $ | (640) | $ | (638) | |||||||||||||||||||||||||||||
| OCI before reclassifications | (4) | (109) | (113) | ||||||||||||||||||||||||||||||||
| Amounts reclassified from AOCI | (1) | 26 | 25 | ||||||||||||||||||||||||||||||||
| Net current-period OCI | $ | (5) | $ | (83) | $ | (88) | |||||||||||||||||||||||||||||
| Balance at December 31, 2023 | $ | (3) | $ | (723) | $ | (726) | |||||||||||||||||||||||||||||
| OCI before reclassifications | 52 | (70) | (18) | ||||||||||||||||||||||||||||||||
| Amounts reclassified from AOCI | (4) | 28 | 24 | ||||||||||||||||||||||||||||||||
| Net current-period OCI | $ | 48 | $ | (42) | $ | 6 | |||||||||||||||||||||||||||||
| Balance at December 31, 2024 | $ | 45 | $ | (765) | $ | (720) | |||||||||||||||||||||||||||||
| OCI before reclassifications | (7) | (52) | (59) | ||||||||||||||||||||||||||||||||
| Amounts reclassified from AOCI | (5) | 22 | 17 | ||||||||||||||||||||||||||||||||
| Net current-period OCI | $ | (12) | $ | (30) | $ | (42) | |||||||||||||||||||||||||||||
| Balance at December 31, 2025 | $ | 33 | $ | (795) | $ | (762) |
(a)This AOCI component is included in the computation of net periodic pension and OPEB cost. See Note 12 — Retirement Benefits for additional information. See Exelon's Statements of Operations and Comprehensive Income for individual components of AOCI.
Combined Notes to Consolidated Financial Statements
(Dollars in millions, except per share data unless otherwise noted)
Note 19 — Changes in Accumulated Other Comprehensive Income (Loss)
The following table presents Income tax benefit (expense) allocated to each component of Exelon's Other comprehensive income (loss):
| For the Years Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Pension and non-pension postretirement benefit plans: | |||||||||||||||||
| Actuarial losses reclassified to periodic benefit cost | $ | (9) | $ | (10) | $ | (8) | |||||||||||
| Pension and non-pension postretirement benefit plans valuation adjustments | 15 | 23 | 33 | ||||||||||||||
| Unrealized gains on cash flow hedges | 2 | (15) | 2 |
20. Supplemental Financial Information (All Registrants)
Supplemental Statement of Operations Information
The following tables provide additional information about material items recorded in the Registrants' Consolidated Statements of Operations and Comprehensive Income.
| Taxes other than income taxes | |||||||||||||||||||||||||||||||||||||||||||||||
| Exelon | ComEd | PECO | BGE | PHI | Pepco | DPL | ACE | ||||||||||||||||||||||||||||||||||||||||
| For the Year Ended December 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||
| Utility(a) | $ | 1,003 | $ | 319 | $ | 202 | $ | 112 | $ | 369 | $ | 335 | $ | 30 | $ | 4 | |||||||||||||||||||||||||||||||
| Property | 474 | 45 | 19 | 239 | 170 | 113 | 54 | 2 | |||||||||||||||||||||||||||||||||||||||
| Payroll | 135 | 37 | 18 | 18 | 29 | 6 | 4 | 3 | |||||||||||||||||||||||||||||||||||||||
| For the Year Ended December 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||
| Utility(a) | $ | 925 | $ | 300 | $ | 179 | $ | 105 | $ | 341 | $ | 310 | $ | 27 | $ | 4 | |||||||||||||||||||||||||||||||
| Property | 431 | 32 | 19 | 221 | 159 | 108 | 48 | 3 | |||||||||||||||||||||||||||||||||||||||
| Payroll | 134 | 37 | 17 | 19 | 28 | 6 | 4 | 3 | |||||||||||||||||||||||||||||||||||||||
| For the Year Ended December 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||
| Utility(a) | $ | 875 | $ | 299 | $ | 166 | $ | 97 | $ | 313 | $ | 283 | $ | 26 | $ | 4 | |||||||||||||||||||||||||||||||
| Property | 401 | 33 | 16 | 205 | 147 | 101 | 44 | 2 | |||||||||||||||||||||||||||||||||||||||
| Payroll | 124 | 31 | 17 | 18 | 27 | 6 | 5 | 3 |
(a)The Registrants’ utility taxes represents municipal and state utility taxes and gross receipts taxes related to their operating revenues. The offsetting collection of utility taxes from customers is recorded in revenues in the Registrants’ Consolidated Statements of Operations and Comprehensive Income.
| Other, net | |||||||||||||||||||||||||||||||||||||||||||||||
| Exelon | ComEd | PECO | BGE | PHI | Pepco | DPL | ACE | ||||||||||||||||||||||||||||||||||||||||
| For the Year Ended December 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||
| AFUDC—Equity | $ | 183 | $ | 66 | $ | 36 | $ | 40 | $ | 41 | $ | 31 | $ | 6 | $ | 4 | |||||||||||||||||||||||||||||||
| Non-service net periodic benefit cost | (52) | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
| For the Year Ended December 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||
| AFUDC—Equity | $ | 157 | $ | 46 | $ | 32 | $ | 25 | $ | 54 | $ | 40 | $ | 12 | $ | 2 | |||||||||||||||||||||||||||||||
| Non-service net periodic benefit cost | (38) | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
| For the Year Ended December 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||
| AFUDC—Equity | $ | 151 | $ | 33 | $ | 31 | $ | 16 | $ | 71 | $ | 54 | $ | 10 | $ | 7 | |||||||||||||||||||||||||||||||
| Non-service net periodic benefit cost | (18) | — | — | — | — | — | — | — |
Combined Notes to Consolidated Financial Statements
(Dollars in millions, except per share data unless otherwise noted)
Note 20 — Supplemental Financial Information
Supplemental Cash Flow Information
The following tables provide additional information about material items recorded in the Registrants' Consolidated Statements of Cash Flows.
| Depreciation, amortization, and accretion | |||||||||||||||||||||||||||||||||||||||||||||||
| Exelon | ComEd | PECO | BGE | PHI | Pepco | DPL | ACE | ||||||||||||||||||||||||||||||||||||||||
| For the Year Ended December 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||
| Property, plant, and equipment(a) | $ | 3,043 | $ | 1,223 | $ | 451 | $ | 503 | $ | 810 | $ | 360 | $ | 226 | $ | 223 | |||||||||||||||||||||||||||||||
| Amortization of regulatory assets(a) | 594 | 337 | 3 | 129 | 125 | 73 | 26 | 25 | |||||||||||||||||||||||||||||||||||||||
| Amortization of intangible assets, net(a) | 3 | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
| ARO accretion(b) | 3 | — | — | — | 2 | 2 | — | — | |||||||||||||||||||||||||||||||||||||||
| Total depreciation, amortization, and accretion | $ | 3,643 | $ | 1,560 | $ | 454 | $ | 632 | $ | 937 | $ | 435 | $ | 252 | $ | 248 | |||||||||||||||||||||||||||||||
| For the Year Ended December 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||
| Property, plant, and equipment(a) | $ | 2,910 | $ | 1,167 | $ | 414 | $ | 490 | $ | 782 | $ | 336 | $ | 218 | $ | 211 | |||||||||||||||||||||||||||||||
| Amortization of regulatory assets(a) | 676 | 347 | 14 | 148 | 164 | 70 | 27 | 67 | |||||||||||||||||||||||||||||||||||||||
| Amortization of intangible assets, net(a) | 8 | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
| ARO accretion(b) | 2 | — | — | — | 1 | 1 | — | — | |||||||||||||||||||||||||||||||||||||||
| Total depreciation and amortization | $ | 3,596 | $ | 1,514 | $ | 428 | $ | 638 | $ | 947 | $ | 407 | $ | 245 | $ | 278 | |||||||||||||||||||||||||||||||
| For the Year Ended December 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||
| Property, plant, and equipment(a) | $ | 2,778 | $ | 1,095 | $ | 383 | $ | 509 | $ | 737 | $ | 311 | $ | 208 | $ | 195 | |||||||||||||||||||||||||||||||
| Amortization of regulatory assets(a) | 720 | 308 | 14 | 145 | 253 | 130 | 36 | 88 | |||||||||||||||||||||||||||||||||||||||
| Amortization of intangible assets, net(a) | 8 | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
| Total depreciation, amortization, and accretion | $ | 3,506 | $ | 1,403 | $ | 397 | $ | 654 | $ | 990 | $ | 441 | $ | 244 | $ | 283 |
(a)Included in Depreciation and amortization expense in the Registrants' Consolidated Statements of Operations and Comprehensive Income.
(b)Included in Operating and maintenance expense in Exelon's Consolidated Statements of Operations and Comprehensive Income.
| Cash paid (refunded) during the year | |||||||||||||||||||||||||||||||||||||||||||||||
| Exelon | ComEd | PECO | BGE | PHI | Pepco | DPL | ACE | ||||||||||||||||||||||||||||||||||||||||
| For the Year Ended December 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||
| Interest (net of amount capitalized) | $ | 2,021 | $ | 511 | $ | 242 | $ | 231 | $ | 392 | $ | 205 | $ | 96 | $ | 78 | |||||||||||||||||||||||||||||||
| Income taxes (net of refunds) | 12 | 224 | (186) | (95) | 114 | 88 | 20 | 11 | |||||||||||||||||||||||||||||||||||||||
| For the Year Ended December 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||
| Interest (net of amount capitalized) | $ | 1,849 | $ | 485 | $ | 218 | $ | 198 | $ | 355 | $ | 183 | $ | 89 | $ | 74 | |||||||||||||||||||||||||||||||
| Income taxes (net of refunds) | 81 | 250 | 128 | 100 | 150 | 96 | 57 | 20 | |||||||||||||||||||||||||||||||||||||||
| For the Year Ended December 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||
| Interest (net of amount capitalized) | $ | 1,616 | $ | 441 | $ | 200 | $ | 171 | $ | 301 | $ | 153 | $ | 69 | $ | 68 | |||||||||||||||||||||||||||||||
| Income taxes (net of refunds) | 10 | 11 | (24) | 29 | 21 | 6 | 6 | 9 |
Combined Notes to Consolidated Financial Statements
(Dollars in millions, except per share data unless otherwise noted)
Note 20 — Supplemental Financial Information
| Other non-cash operating activities | |||||||||||||||||||||||||||||||||||||||||||||||
| Exelon | ComEd | PECO | BGE | PHI | Pepco | DPL | ACE | ||||||||||||||||||||||||||||||||||||||||
| For the Year Ended December 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||
| Pension and OPEB costs | $ | 273 | $ | 85 | $ | 7 | $ | 62 | $ | 96 | $ | 35 | $ | 17 | $ | 13 | |||||||||||||||||||||||||||||||
| Allowance for credit losses | 256 | 55 | 97 | 26 | 78 | 37 | 17 | 24 | |||||||||||||||||||||||||||||||||||||||
| True-up adjustments to decoupling mechanisms and formula rates(a) | 746 | 596 | — | 87 | 63 | 49 | 16 | (2) | |||||||||||||||||||||||||||||||||||||||
| Amortization of operating ROU asset | 28 | — | — | 7 | 16 | 5 | 6 | 2 | |||||||||||||||||||||||||||||||||||||||
| Change in environmental liabilities | — | — | — | — | 1 | 1 | — | — | |||||||||||||||||||||||||||||||||||||||
| AFUDC - Equity | (183) | (66) | (36) | (41) | (41) | (31) | (5) | (4) | |||||||||||||||||||||||||||||||||||||||
| For the Year Ended December 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||
| Pension and OPEB costs (benefit) | $ | 252 | $ | 72 | $ | (1) | $ | 59 | $ | 93 | $ | 32 | $ | 15 | $ | 12 | |||||||||||||||||||||||||||||||
| Allowance for credit losses | 208 | 23 | 91 | 25 | 69 | 30 | 10 | 28 | |||||||||||||||||||||||||||||||||||||||
| True-up adjustments to decoupling mechanisms and formula rates(a) | 109 | 151 | (6) | (52) | 16 | (15) | 10 | 21 | |||||||||||||||||||||||||||||||||||||||
| Amortization of operating ROU asset | 38 | — | — | 6 | 26 | 6 | 6 | 3 | |||||||||||||||||||||||||||||||||||||||
| Change in environmental liabilities | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
| AFUDC - Equity | (157) | (46) | (32) | (25) | (54) | (40) | (12) | (2) | |||||||||||||||||||||||||||||||||||||||
| For the Year Ended December 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||
| Pension and OPEB costs (benefit) | $ | 198 | $ | 26 | $ | (14) | $ | 56 | $ | 99 | $ | 34 | $ | 18 | $ | 13 | |||||||||||||||||||||||||||||||
| Allowance for credit losses | 125 | 4 | 45 | 16 | 60 | 33 | 10 | 17 | |||||||||||||||||||||||||||||||||||||||
| True-up adjustments to decoupling mechanisms and formula rates(a) | (708) | (556) | 7 | (84) | (77) | (22) | (21) | (34) | |||||||||||||||||||||||||||||||||||||||
| Amortization of operating ROU asset | 39 | 2 | — | 5 | 28 | 6 | 8 | 3 | |||||||||||||||||||||||||||||||||||||||
| Change in environmental liabilities | 37 | — | — | — | 37 | 37 | — | — | |||||||||||||||||||||||||||||||||||||||
| AFUDC - Equity | (151) | (33) | (31) | (16) | (71) | (54) | (10) | (7) |
(a)For ComEd, reflects the true-up adjustments in Regulatory assets and liabilities associated with its distribution MRP and distribution, energy efficiency, distributed generation, and transmission formula rates. For PECO, reflects the change in Regulatory assets and liabilities associated with its transmission formula rate. For BGE, Pepco, DPL, and ACE, reflects the change in Regulatory assets and liabilities associated with their decoupling mechanisms and transmission formula rates. See Note 2 — Regulatory Matters for additional information.
Combined Notes to Consolidated Financial Statements
(Dollars in millions, except per share data unless otherwise noted)
Note 20 — Supplemental Financial Information
The following tables provide a reconciliation of cash, restricted cash, and cash equivalents reported within the Registrants' Consolidated Balance Sheets that sum to the total of the same amounts in their Consolidated Statements of Cash Flows.
| Cash, restricted cash, and cash equivalents | |||||||||||||||||||||||||||||||||||||||||||||||
| Exelon | ComEd | PECO | BGE | PHI | Pepco | DPL | ACE | ||||||||||||||||||||||||||||||||||||||||
| Balance at December 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||
| Cash and cash equivalents | $ | 626 | $ | 159 | $ | 116 | $ | 217 | $ | 103 | $ | 22 | $ | 9 | $ | 22 | |||||||||||||||||||||||||||||||
| Restricted cash and cash equivalents | 525 | 454 | — | 3 | 38 | 33 | 3 | 2 | |||||||||||||||||||||||||||||||||||||||
| Restricted cash included in Other deferred debits and other assets | 50 | 50 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
| Total cash, restricted cash, and cash equivalents | $ | 1,201 | $ | 663 | $ | 116 | $ | 220 | $ | 141 | $ | 55 | $ | 12 | $ | 24 | |||||||||||||||||||||||||||||||
| Balance at December 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||
| Cash and cash equivalents | $ | 357 | $ | 105 | $ | 48 | $ | 33 | $ | 139 | $ | 30 | $ | 21 | $ | 14 | |||||||||||||||||||||||||||||||
| Restricted cash and cash equivalents | 541 | 486 | — | 1 | 24 | 21 | 2 | — | |||||||||||||||||||||||||||||||||||||||
| Restricted cash included in Other deferred debits and other assets | 41 | 41 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
| Total cash, restricted cash, and cash equivalents | $ | 939 | $ | 632 | $ | 48 | $ | 34 | $ | 163 | $ | 51 | $ | 23 | $ | 14 | |||||||||||||||||||||||||||||||
| Balance at December 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||
| Cash and cash equivalents | $ | 445 | $ | 110 | $ | 42 | $ | 47 | $ | 180 | $ | 48 | $ | 16 | $ | 21 | |||||||||||||||||||||||||||||||
| Restricted cash and cash equivalents | 482 | 402 | 9 | 1 | 24 | 24 | — | — | |||||||||||||||||||||||||||||||||||||||
| Restricted cash included in Other deferred debits and other assets | 174 | 174 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
| Total cash, restricted cash, and cash equivalents | $ | 1,101 | $ | 686 | $ | 51 | $ | 48 | $ | 204 | $ | 72 | $ | 16 | $ | 21 | |||||||||||||||||||||||||||||||
| Balance at December 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||
| Cash and cash equivalents | $ | 407 | $ | 67 | $ | 59 | $ | 43 | $ | 198 | $ | 45 | $ | 31 | $ | 72 | |||||||||||||||||||||||||||||||
| Restricted cash and cash equivalents | 566 | 327 | 9 | 24 | 175 | 54 | 121 | — | |||||||||||||||||||||||||||||||||||||||
| Restricted cash included in Other deferred debits and other assets | 117 | 117 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
| Total cash, restricted cash, and cash equivalents | $ | 1,090 | $ | 511 | $ | 68 | $ | 67 | $ | 373 | $ | 99 | $ | 152 | $ | 72 |
For additional information on restricted cash, see Note 1 — Significant Accounting Policies.
Combined Notes to Consolidated Financial Statements
(Dollars in millions, except per share data unless otherwise noted)
Note 20 — Supplemental Financial Information
Supplemental Balance Sheet Information
The following tables provide additional information about material items recorded in the Registrants' Consolidated Balance Sheets.
| Investments | |||||||||||||||||||||||||||||||||||||||||||||||
| Exelon | ComEd | PECO | BGE | PHI | Pepco | ||||||||||||||||||||||||||||||||||||||||||
| Balance at December 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||
| Rabbi trust investments(a) | $ | 278 | $ | — | $ | 38 | $ | 10 | $ | 157 | $ | 141 | |||||||||||||||||||||||||||||||||||
| Equity method investments | 15 | 6 | 7 | — | 1 | — | |||||||||||||||||||||||||||||||||||||||||
| Other investments | 19 | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
| Total investments | $ | 312 | $ | 6 | $ | 45 | $ | 10 | $ | 158 | $ | 141 | |||||||||||||||||||||||||||||||||||
| Balance at December 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||
| Rabbi trust investments(a) | $ | 260 | $ | — | $ | 34 | $ | 10 | $ | 151 | $ | 135 | |||||||||||||||||||||||||||||||||||
| Equity method investments | 15 | 6 | 7 | — | 1 | — | |||||||||||||||||||||||||||||||||||||||||
| Other investments | 15 | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
| Total investments | $ | 290 | $ | 6 | $ | 41 | $ | 10 | $ | 152 | $ | 135 |
(a)The Registrants’ debt and equity security investments and life insurance contracts are recorded at fair market value.
| Accrued expenses | |||||||||||||||||||||||||||||||||||||||||||||||
| Exelon | ComEd | PECO | BGE | PHI | Pepco | DPL | ACE | ||||||||||||||||||||||||||||||||||||||||
| Balance at December 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||
| Compensation-related accruals(a) | $ | 705 | $ | 209 | $ | 96 | $ | 99 | $ | 125 | $ | 35 | $ | 24 | $ | 17 | |||||||||||||||||||||||||||||||
| Taxes accrued | 242 | 94 | 306 | 191 | 107 | 69 | 25 | 18 | |||||||||||||||||||||||||||||||||||||||
| Interest accrued | 538 | 155 | 75 | 55 | 92 | 49 | 18 | 20 | |||||||||||||||||||||||||||||||||||||||
| Balance at December 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||
| Compensation-related accruals(a) | $ | 679 | $ | 197 | $ | 87 | $ | 88 | $ | 132 | $ | 38 | $ | 26 | $ | 18 | |||||||||||||||||||||||||||||||
| Taxes accrued | 217 | 96 | 13 | 34 | 110 | 92 | 11 | 11 | |||||||||||||||||||||||||||||||||||||||
| Interest accrued | 468 | 150 | 60 | 50 | 83 | 44 | 16 | 18 |
(a)Primarily includes accrued payroll, bonuses and other incentives, vacation, and benefits.
Combined Notes to Consolidated Financial Statements
(Dollars in millions, except per share data unless otherwise noted)
Note 21 — Related Party Transactions
21. Related Party Transactions (All Registrants)
Service Company Costs for Corporate Support
The Registrants receive a variety of corporate support services from BSC. Pepco, DPL, and ACE also receive corporate support services from PHISCO. See Note 1 — Significant Accounting Policies for additional information regarding BSC and PHISCO.
The following table presents the service company costs allocated to the Registrants:
| Operating and maintenance from affiliates | Capitalized costs from affiliates | |||||||||||||||||||||||||||||||||||||
| For the years ended December 31, | For the years ended December 31, | |||||||||||||||||||||||||||||||||||||
| 2025 | 2024 | 2023 | 2025 | 2024 | 2023 | |||||||||||||||||||||||||||||||||
| Exelon | ||||||||||||||||||||||||||||||||||||||
| BSC | $ | 683 | $ | 633 | $ | 670 | ||||||||||||||||||||||||||||||||
| PHISCO | 109 | 114 | 96 | |||||||||||||||||||||||||||||||||||
| ComEd | ||||||||||||||||||||||||||||||||||||||
| BSC | $ | 404 | $ | 418 | $ | 353 | 279 | 254 | 307 | |||||||||||||||||||||||||||||
| PECO | ||||||||||||||||||||||||||||||||||||||
| BSC | 246 | 243 | 213 | 105 | 112 | 120 | ||||||||||||||||||||||||||||||||
| BGE | ||||||||||||||||||||||||||||||||||||||
| BSC | 251 | 246 | 221 | 123 | 110 | 90 | ||||||||||||||||||||||||||||||||
| PHI | ||||||||||||||||||||||||||||||||||||||
| BSC | 200 | 200 | 177 | 176 | 157 | 153 | ||||||||||||||||||||||||||||||||
| PHISCO | — | — | — | 109 | 114 | 95 | ||||||||||||||||||||||||||||||||
| Pepco | ||||||||||||||||||||||||||||||||||||||
| BSC | 126 | 125 | 114 | 76 | 70 | 59 | ||||||||||||||||||||||||||||||||
| PHISCO | 119 | 125 | 122 | 47 | 50 | 39 | ||||||||||||||||||||||||||||||||
| DPL | ||||||||||||||||||||||||||||||||||||||
| BSC | 80 | 78 | 73 | 52 | 49 | 43 | ||||||||||||||||||||||||||||||||
| PHISCO | 98 | 103 | 98 | 33 | 34 | 29 | ||||||||||||||||||||||||||||||||
| ACE | ||||||||||||||||||||||||||||||||||||||
| BSC | 64 | 64 | 59 | 40 | 32 | 47 | ||||||||||||||||||||||||||||||||
| PHISCO | 91 | 97 | 92 | 29 | 30 | 26 |
Current Receivables from/Payables to Affiliates
The following tables present current Receivables from affiliates and current Payables to affiliates:
December 31, 2025
| Receivables from affiliates: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Payables to affiliates: | ComEd | PECO | BGE | Pepco | DPL | ACE | BSC | PHISCO | Other | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ComEd | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 76 | $ | — | $ | 5 | $ | 81 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| PECO | $ | — | — | — | — | — | 33 | — | 2 | 35 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| BGE | — | — | — | — | — | 39 | — | — | 39 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| PHI | — | — | — | — | — | — | 5 | 2 | 11 | 18 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Pepco | — | — | — | — | — | 25 | 11 | 1 | 37 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| DPL | — | — | — | — | — | 15 | 10 | — | 25 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ACE | — | — | — | — | — | 14 | 10 | — | 24 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other | 5 | — | 1 | — | 2 | 12 | — | — | 20 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total | $ | 5 | $ | — | $ | 1 | $ | — | $ | 2 | $ | 12 | $ | 207 | $ | 33 | $ | 19 | $ | 279 | ||||||||||||||||||||||||||||||||||||||||||||||||
Combined Notes to Consolidated Financial Statements
(Dollars in millions, except per share data unless otherwise noted)
Note 21 — Related Party Transactions
December 31, 2024
| Receivables from affiliates: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Payables to affiliates: | ComEd | PECO | BGE | Pepco | DPL | ACE | BSC | PHISCO | Other | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ComEd | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 67 | $ | — | $ | 10 | $ | 77 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| PECO | $ | — | — | — | — | — | 37 | — | 4 | 41 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| BGE | — | — | — | — | — | 47 | — | 1 | 48 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| PHI | — | — | — | — | — | — | 7 | 1 | 10 | 18 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Pepco | — | — | — | — | — | 21 | 15 | 1 | 37 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| DPL | — | — | — | — | — | 14 | 11 | 1 | 26 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ACE | — | — | — | — | — | 11 | 10 | 1 | 22 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other | 4 | — | — | 1 | — | 7 | — | — | 12 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total | $ | 4 | $ | — | $ | — | $ | 1 | $ | — | $ | 7 | $ | 204 | $ | 37 | $ | 28 | $ | 281 | ||||||||||||||||||||||||||||||||||||||||||||||||
Borrowings from Exelon/PHI Intercompany Money Pool
To provide an additional short-term borrowing option that will generally be more favorable to the borrowing participants than the cost of external financing both Exelon and PHI operate an intercompany money pool. PECO and PHI Corporate participate in the Exelon money pool. Pepco, DPL, and ACE participate in the PHI intercompany money pool.
Long-term Debt to Financing Trusts
The following table presents Long-term debt to financing trusts:
| At December 31, | |||||||||||||||||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||||||||||||||
| Exelon | ComEd | PECO | Exelon | ComEd | PECO | ||||||||||||||||||||||||||||||
| ComEd Financing III | $ | 206 | $ | 206 | $ | — | $ | 206 | $ | 206 | $ | — | |||||||||||||||||||||||
| PECO Trust III | 81 | — | 81 | 81 | — | 81 | |||||||||||||||||||||||||||||
| PECO Trust IV | 103 | — | 103 | 103 | — | 103 | |||||||||||||||||||||||||||||
| Total | $ | 390 | $ | 206 | $ | 184 | $ | 390 | $ | 206 | $ | 184 |
Charitable Contributions
In December 2025, Exelon Corporation made an unconditional promise to give $30 million to the Exelon Foundation. The contribution was recorded in Operating and maintenance expense within the Consolidated Statements of Operations and Comprehensive Income with the offset in Other current liabilities on the Consolidated Balance Sheets.
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