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Item 1. FINANCIAL STATEMENTS

468K characters. Original on sec.gov ·

Item 1. FINANCIAL STATEMENTS

Exelon Corporation and Subsidiary Companies

Consolidated Statements of Operations and Comprehensive Income

(Unaudited)

Three Months Ended June 30,Six Months Ended June 30,
(In millions, except per share data)2025202420252024
Operating revenues
Electric operating revenues$5,365$5,169$11,182$10,367
Natural gas operating revenues3372721,3611,011
Revenues from alternative revenue programs(275)(80)(402)25
Total operating revenues5,4275,36112,14111,403
Operating expenses
Purchased power1,8111,9383,9954,134
Purchased fuel8554423267
Operating and maintenance1,3211,2092,6682,481
Depreciation and amortization9028941,8051,773
Taxes other than income taxes383360788731
Total operating expenses4,5024,4559,6799,386
Gain on sale of assets2719
Operating income9279132,4632,026
Other income and (deductions)
Interest expense, net(524)(476)(1,028)(938)
Interest expense to affiliates, net(7)(7)(12)(12)
Other, net6564117139
Total other income and (deductions)(466)(419)(923)(811)
Income before income taxes4614941,5401,215
Income taxes7046240109
Net income attributable to common shareholders$391$448$1,300$1,106
Comprehensive income, net of income taxes
Net income$391$448$1,300$1,106
Other comprehensive income, net of income taxes
Pension and non-pension postretirement benefit plans:
Actuarial losses reclassified to periodic benefit cost551110
Pension and non-pension postretirement benefit plans valuation adjustments1(2)5(26)
Unrealized (loss) gain on cash flow hedges(6)(3)(14)30
Other comprehensive income——214
Comprehensive income attributable to common shareholders$391$448$1,302$1,120
Average shares of common stock outstanding:
Basic1,0101,0011,0091,001
Assumed exercise and/or distributions of stock-based awards(a)2—2—
Diluted1,0121,0011,0111,001
Earnings per average common share
Basic$0.39$0.45$1.29$1.11
Diluted$0.39$0.45$1.29$1.10

(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

(Unaudited)

Six Months Ended June 30,
(In millions)20252024
Cash flows from operating activities
Net income$1,300$1,106
Adjustments to reconcile net income to net cash flows provided by operating activities:
Depreciation, amortization, and accretion1,8061,774
Gain on sales of assets—(9)
Deferred income taxes and amortization of investment tax credits16572
Net fair value changes related to derivatives3—
Other non-cash operating activities734246
Changes in assets and liabilities:
Accounts receivable(460)(443)
Inventories(20)(25)
Accounts payable and accrued expenses(38)(120)
Collateral received, net1413
Income taxes(3)(39)
Regulatory assets and liabilities, net(294)265
Pension and non-pension postretirement benefit contributions(302)(125)
Other assets and liabilities(194)(261)
Net cash flows provided by operating activities2,7112,454
Cash flows from investing activities
Capital expenditures(3,959)(3,466)
Proceeds from sales of assets2—
Other investing activities(5)(1)
Net cash flows used in investing activities(3,962)(3,467)
Cash flows from financing activities
Changes in short-term borrowings(750)(670)
Proceeds from short-term borrowings with maturities greater than 90 days—150
Repayments on short-term borrowings with maturities greater than 90 days—(549)
Issuance of long-term debt3,8004,225
Retirement of long-term debt(807)(903)
Issuance of common stock173—
Dividends paid on common stock(808)(761)
Proceeds from employee stock plans1122
Other financing activities(56)(67)
Net cash flows provided by financing activities1,5631,447
Increase in cash, restricted cash, and cash equivalents312434
Cash, restricted cash, and cash equivalents at beginning of period9391,101
Cash, restricted cash, and cash equivalents at end of period$1,251$1,535
Supplemental cash flow information
Decrease in capital expenditures not paid(100)(74)

See the Combined Notes to Consolidated Financial Statements

Exelon Corporation and Subsidiary Companies

Consolidated Balance Sheets

(Unaudited)

(In millions)June 30, 2025December 31, 2024
ASSETS
Current assets
Cash and cash equivalents$724$357
Restricted cash and cash equivalents478541
Accounts receivable
Customer accounts receivable3,5293,144
Customer allowance for credit losses(465)(406)
Customer accounts receivable, net3,0642,738
Other accounts receivable1,1561,123
Other allowance for credit losses(107)(107)
Other accounts receivable, net1,0491,016
Inventories, net
Fossil fuel5972
Materials and supplies809781
Regulatory assets1,6681,940
Prepaid renewable energy credits349494
Other476445
Total current assets8,6768,384
Property, plant, and equipment (net of accumulated depreciation and amortization of $19,431 and $18,445 as of June 30, 2025 and December 31, 2024, respectively)80,60978,182
Deferred debits and other assets
Regulatory assets8,8358,710
Goodwill6,6306,630
Receivable related to Regulatory Agreement Units4,4114,026
Investments297290
Other1,6891,562
Total deferred debits and other assets21,86221,218
Total assets$111,147$107,784

See the Combined Notes to Consolidated Financial Statements

Exelon Corporation and Subsidiary Companies

Consolidated Balance Sheets

(Unaudited)

(In millions)June 30, 2025December 31, 2024
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Short-term borrowings$1,109$1,859
Long-term debt due within one year1,8181,453
Accounts payable3,0432,994
Accrued expenses1,3181,468
Payables to affiliates55
Customer deposits486446
Regulatory liabilities485411
Mark-to-market derivative liabilities2429
Unamortized energy contract liabilities55
Renewable energy credit obligations327429
Other536512
Total current liabilities9,1569,611
Long-term debt45,52742,947
Long-term debt to financing trusts390390
Deferred credits and other liabilities
Deferred income taxes and unamortized investment tax credits13,22112,793
Regulatory liabilities10,64410,198
Pension obligations1,4781,745
Non-pension postretirement benefit obligations486472
Asset retirement obligations308301
Mark-to-market derivative liabilities119103
Unamortized energy contract liabilities1821
Other2,1802,282
Total deferred credits and other liabilities28,45427,915
Total liabilities83,52780,863
Commitments and contingencies
Shareholders’ equity
Common stock (No par value, 2,000 shares authorized, 1,010 shares and 1,005 shares outstanding as of June 30, 2025 and December 31, 2024, respectively)21,54421,338
Treasury stock, at cost (2 shares as of June 30, 2025 and December 31, 2024)(123)(123)
Retained earnings6,9176,426
Accumulated other comprehensive loss, net(718)(720)
Total shareholders’ equity27,62026,921
Total liabilities and shareholders’ equity$111,147$107,784

See the Combined Notes to Consolidated Financial Statements

Exelon Corporation and Subsidiary Companies

Consolidated Statements of Changes in Shareholders' Equity

(Unaudited)

Six Months Ended June 30, 2025
(In millions, shares in thousands)Issued SharesCommon StockTreasury StockRetained EarningsAccumulated Other Comprehensive Loss, netTotal Shareholders' Equity
Balance at December 31, 20241,007,046$21,338$(123)$6,426$(720)$26,921
Net income———908—908
Long-term incentive plan activity2994———4
Employee stock purchase plan activity(8)2———2
Issuance of Common Stock4,031173———173
Common stock dividends ($0.40/common share)———(403)—(403)
Other comprehensive income, net of income taxes————22
Balance at March 31, 20251,011,368$21,517$(123)$6,931$(718)$27,607
Net income———391—391
Long-term incentive plan activity11814———14
Employee stock purchase plan activity33413———13
Common stock dividends ($0.40/common share)———(405)—(405)
Balance at June 30, 20251,011,820$21,544$(123)$6,917$(718)$27,620
Six Months Ended June 30, 2024
(In millions, shares in thousands)Issued SharesCommon StockTreasury StockRetained EarningsAccumulated Other Comprehensive Loss, netTotal Shareholders' Equity
Balance at December 31, 20231,001,249$21,114$(123)$5,490$(726)$25,755
Net income———658—658
Long-term incentive plan activity3332———2
Employee stock purchase plan activity27613———13
Common stock dividends ($0.38/common share)———(381)—(381)
Other comprehensive income, net of income taxes————1414
Balance at March 31, 20241,001,858$21,129$(123)$5,767$(712)$26,061
Net income———448—448
Long-term incentive plan activity7611———11
Employee stock purchase plan activity39612———12
Common stock dividends ($0.38/common share)———(380)—(380)
Balance at June 30, 20241,002,330$21,152$(123)$5,835$(712)$26,152

See the Combined Notes to Consolidated Financial Statements

Commonwealth Edison Company and Subsidiary Companies

Consolidated Statements of Operations and Comprehensive Income

(Unaudited)

Three Months Ended June 30,Six Months Ended June 30,
(In millions)2025202420252024
Operating revenues
Electric operating revenues$2,060$2,120$4,203$4,194
Revenues from alternative revenue programs(234)(43)(319)(24)
Operating revenues from affiliates102174
Total operating revenues1,8362,0793,9014,174
Operating expenses
Purchased power5507631,2391,670
Operating and maintenance322345645663
Operating and maintenance from affiliates100104200204
Depreciation and amortization387374767737
Taxes other than income taxes9794196188
Total operating expenses1,4561,6803,0473,462
Gain on sale of assets—5—5
Operating income380404854717
Other income and (deductions)
Interest expense, net(128)(120)(253)(239)
Interest expense to affiliates, net(3)(3)(7)(7)
Other, net31205341
Total other income and (deductions)(100)(103)(207)(205)
Income before income taxes280301647512
Income taxes523111749
Net income$228$270$530$463
Comprehensive income$228$270$530$463

See the Combined Notes to Consolidated Financial Statements

Commonwealth Edison Company and Subsidiary Companies

Consolidated Statements of Cash Flows

(Unaudited)

Six Months Ended June 30,
(In millions)20252024
Cash flows from operating activities
Net income$530$463
Adjustments to reconcile net income to net cash flows provided by operating activities:
Depreciation and amortization767737
Gain on sales of assets—(5)
Deferred income taxes and amortization of investment tax credits6(8)
Other non-cash operating activities40169
Changes in assets and liabilities:
Accounts receivable(252)(278)
Receivables from and payables to affiliates, net(19)3
Inventories8(16)
Accounts payable and accrued expenses(31)(73)
Collateral (paid) received, net(3)12
Income taxes7(108)
Regulatory assets and liabilities, net(158)446
Pension and non-pension postretirement benefit contributions(190)(10)
Other assets and liabilities(25)70
Net cash flows provided by operating activities1,0411,302
Cash flows from investing activities
Capital expenditures(1,189)(1,111)
Other investing activities111
Net cash flows used in investing activities(1,188)(1,100)
Cash flows from financing activities
Changes in short-term borrowings(36)(124)
Repayments on short-term borrowings with maturities greater than 90 days—(400)
Issuance of long-term debt725800
Dividends paid on common stock(407)(388)
Contributions from parent8778
Other financing activities(7)(11)
Net cash flows provided by (used in) financing activities362(45)
Increase in cash, restricted cash, and cash equivalents215157
Cash, restricted cash, and cash equivalents at beginning of period632686
Cash, restricted cash, and cash equivalents at end of period$847$843
Supplemental cash flow information
Increase (decrease) in capital expenditures not paid$17$(70)

See the Combined Notes to Consolidated Financial Statements

Commonwealth Edison Company and Subsidiary Companies

Consolidated Balance Sheets

(Unaudited)

(In millions)June 30, 2025December 31, 2024
ASSETS
Current assets
Cash and cash equivalents$387$105
Restricted cash and cash equivalents411486
Accounts receivable
Customer accounts receivable1,211994
Customer allowance for credit losses(122)(109)
Customer accounts receivable, net1,089885
Other accounts receivable297290
Other allowance for credit losses(31)(34)
Other accounts receivable, net266256
Receivables from affiliates124
Inventories, net281292
Regulatory assets9011,159
Other159141
Total current assets3,5063,328
Property, plant, and equipment (net of accumulated depreciation and amortization of $8,023 and $7,619 as of June 30, 2025 and December 31, 2024, respectively)30,88130,211
Deferred debits and other assets
Regulatory assets2,6802,562
Goodwill2,6252,625
Receivable related to Regulatory Agreement Units4,0333,780
Investments66
Prepaid pension asset1,3181,165
Other1,2501,073
Total deferred debits and other assets11,91211,211
Total assets$46,299$44,750

See the Combined Notes to Consolidated Financial Statements

Commonwealth Edison Company and Subsidiary Companies

Consolidated Balance Sheets

(Unaudited)

(In millions)June 30, 2025December 31, 2024
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Short-term borrowings$—$36
Long-term debt due within one year500—
Accounts payable790748
Accrued expenses403463
Payables to affiliates6677
Customer deposits159134
Regulatory liabilities232197
Mark-to-market derivative liabilities2429
Other258270
Total current liabilities2,4321,954
Long-term debt12,25012,030
Long-term debt to financing trust206206
Deferred credits and other liabilities
Deferred income taxes and unamortized investment tax credits5,6965,601
Regulatory liabilities8,8008,421
Asset retirement obligations170167
Non-pension postretirement benefit obligations161156
Mark-to-market derivative liabilities111103
Other1,3831,232
Total deferred credits and other liabilities16,32115,680
Total liabilities31,20929,870
Commitments and contingencies
Shareholders’ equity
Common stock1,5881,588
Other paid-in capital10,71510,628
Retained earnings2,7872,664
Total shareholders’ equity15,09014,880
Total liabilities and shareholders’ equity$46,299$44,750

See the Combined Notes to Consolidated Financial Statements

Commonwealth Edison Company and Subsidiary Companies

Consolidated Statements of Changes in Shareholders' Equity

(Unaudited)

Six Months Ended June 30, 2025
(In millions)Common StockOther Paid-In CapitalRetained EarningsTotal Shareholders’ Equity
Balance at December 31, 2024$1,588$10,628$2,664$14,880
Net income——302302
Common stock dividends——(203)(203)
Contributions from parent—87—87
Balance at March 31, 2025$1,588$10,715$2,763$15,066
Net income——228228
Common stock dividends——(204)(204)
Contributions from parent————
Balance at June 30, 2025$1,588$10,715$2,787$15,090
Six Months Ended June 30, 2024
(In millions)Common StockOther Paid-In CapitalRetained EarningsTotal Shareholders’ Equity
Balance at December 31, 2023$1,588$10,401$2,374$14,363
Net income——193193
Common stock dividends——(194)(194)
Contributions from parent—39—39
Balance at March 31, 2024$1,588$10,440$2,373$14,401
Net income——270270
Common stock dividends——(194)(194)
Contributions from parent—39—39
Balance at June 30, 2024$1,588$10,479$2,449$14,516

See the Combined Notes to Consolidated Financial Statements

PECO Energy Company and Subsidiary Companies

Consolidated Statements of Operations and Comprehensive Income

(Unaudited)

Three Months Ended June 30,Six Months Ended June 30,
(In millions)2025202420252024
Operating revenues
Electric operating revenues$876$795$1,839$1,576
Natural gas operating revenues12094496367
Revenues from alternative revenue programs1—(8)(2)
Operating revenues from affiliates3264
Total operating revenues1,0008912,3331,945
Operating expenses
Purchased power304298665604
Purchased fuel3525176123
Operating and maintenance242209507444
Operating and maintenance from affiliates6361124119
Depreciation and amortization112107221210
Taxes other than income taxes5452115103
Total operating expenses8107521,8081,603
Gain on sales of assets—2—4
Operating income190141525346
Other income and (deductions)
Interest expense, net(57)(54)(117)(106)
Interest expense to affiliates(3)(3)(7)(6)
Other, net1091818
Total other income and (deductions)(50)(48)(106)(94)
Income before income taxes14093419252
Income taxes431713
Net income$136$90$402$239
Comprehensive income$136$90$402$239

See the Combined Notes to Consolidated Financial Statements

PECO Energy Company and Subsidiary Companies

Consolidated Statements of Cash Flows

(Unaudited)

Six Months Ended June 30,
(In millions)20252024
Cash flows from operating activities
Net income$402$239
Adjustments to reconcile net income to net cash flows provided by operating activities:
Depreciation and amortization221210
Gain on sales of assets—(4)
Deferred income taxes and amortization of investment tax credits(32)(14)
Other non-cash operating activities5337
Changes in assets and liabilities:
Accounts receivable(101)(83)
Receivables from and payables to affiliates, net41
Inventories213
Accounts payable and accrued expenses2(57)
Collateral (paid) received, net6—
Income taxes3(19)
Regulatory assets and liabilities, net21(15)
Pension and non-pension postretirement benefit contributions(9)(3)
Other assets and liabilities(66)(65)
Net cash flows provided by operating activities506240
Cash flows from investing activities
Capital expenditures(832)(743)
Other investing activities25
Net cash flows used in investing activities(830)(738)
Cash flows from financing activities
Changes in short-term borrowings1195
Dividends paid on common stock(273)(200)
Contributions from parent563580
Net cash flows provided by financing activities301475
Decrease in cash, restricted cash, and cash equivalents(23)(23)
Cash, restricted cash, and cash equivalents at beginning of period4851
Cash, restricted cash, and cash equivalents at end of period$25$28
Supplemental cash flow information
Increase in capital expenditures not paid$95$21

See the Combined Notes to Consolidated Financial Statements

PECO Energy Company and Subsidiary Companies

Consolidated Balance Sheets

(Unaudited)

(In millions)June 30, 2025December 31, 2024
ASSETS
Current assets
Cash and cash equivalents$25$48
Accounts receivable
Customer accounts receivable742670
Customer allowance for credit losses(154)(133)
Customer accounts receivable, net588537
Other accounts receivable156145
Other allowance for credit losses(19)(18)
Other accounts receivable, net137127
Inventories, net
Fossil fuel2737
Materials and supplies8479
Prepaid utility taxes752
Prepaid renewable energy credits4951
Regulatory assets6265
Other6627
Total current assets1,113973
Property, plant, and equipment (net of accumulated depreciation and amortization of $4,113 and $4,042 as of June 30, 2025 and December 31, 2024, respectively)15,11014,392
Deferred debits and other assets
Regulatory assets1,1081,003
Receivable related to Regulatory Agreement Units379247
Investments4041
Prepaid pension asset442435
Other3832
Total deferred debits and other assets2,0071,758
Total assets$18,230$17,123

See the Combined Notes to Consolidated Financial Statements

PECO Energy Company and Subsidiary Companies

Consolidated Balance Sheets

(Unaudited)

(In millions)June 30, 2025December 31, 2024
LIABILITIES AND SHAREHOLDER'S EQUITY
Current liabilities
Short-term borrowings$203$192
Long-term debt due within one year350350
Accounts payable769639
Accrued expenses146166
Payables to affiliates4541
Customer deposits9080
Renewable energy credit obligations9652
Regulatory liabilities146122
Other4028
Total current liabilities1,8851,670
Long-term debt5,3555,354
Long-term debt to financing trusts184184
Deferred credits and other liabilities
Deferred income taxes and unamortized investment tax credits2,5112,433
Regulatory liabilities385253
Asset retirement obligations2827
Non-pension postretirement benefit obligations288287
Other87100
Total deferred credits and other liabilities3,2993,100
Total liabilities10,72310,308
Commitments and contingencies
Shareholder’s equity
Common stock5,2084,645
Retained earnings2,2992,170
Total shareholder’s equity7,5076,815
Total liabilities and shareholder's equity$18,230$17,123

See the Combined Notes to Consolidated Financial Statements

PECO Energy Company and Subsidiary Companies

Consolidated Statements of Changes in Shareholders' Equity

(Unaudited)

Six Months Ended June 30, 2025
(In millions)Common StockRetained EarningsTotal Shareholder's Equity
Balance at December 31, 2024$4,645$2,170$6,815
Net income—266266
Common stock dividends—(137)(137)
Contributions from parent563—563
Balance at March 31, 2025$5,208$2,299$7,507
Net income—136136
Common stock dividends—(136)(136)
Contributions from parent———
Balance at June 30, 2025$5,208$2,299$7,507
Six Months Ended June 30, 2024
(In millions)Common StockRetained EarningsTotal Shareholder's Equity
Balance at December 31, 2023$4,050$2,019$6,069
Net income—149149
Common stock dividends—(100)(100)
Contributions from parent580—580
Balance at March 31, 2024$4,630$2,068$6,698
Net income—9090
Common stock dividends—(100)(100)
Balance at June 30, 2024$4,630$2,058$6,688

See the Combined Notes to Consolidated Financial Statements

Baltimore Gas and Electric Company

Statements of Operations and Comprehensive Income

(Unaudited)

Three Months Ended June 30,Six Months Ended June 30,
(In millions)2025202420252024
Operating revenues
Electric operating revenues$856$799$1,877$1,656
Natural gas operating revenues184150745545
Revenues from alternative revenue programs(13)(23)(43)19
Operating revenues from affiliates2245
Total operating revenues1,0299282,5832,225
Operating expenses
Purchased power367323818700
Purchased fuel3920198107
Operating and maintenance201188443392
Operating and maintenance from affiliates6362125122
Depreciation and amortization154162318312
Taxes other than income taxes8580181169
Total operating expenses9098352,0831,802
Operating income12093500423
Other income and (deductions)
Interest expense, net(61)(53)(120)(103)
Other, net1182016
Total other income and (deductions)(50)(45)(100)(87)
Income before income taxes7048400336
Income taxes1548528
Net income$55$44$315$308
Comprehensive income$55$44$315$308

See the Combined Notes to Consolidated Financial Statements

Baltimore Gas and Electric Company

Statements of Cash Flows

(Unaudited)

Six Months Ended June 30,
(In millions)20252024
Cash flows from operating activities
Net income$315$308
Adjustments to reconcile net income to net cash flows provided by operating activities:
Depreciation and amortization318312
Deferred income taxes and amortization of investment tax credits43(4)
Other non-cash operating activities8915
Changes in assets and liabilities:
Accounts receivable(21)(20)
Receivables from and payables to affiliates, net(11)3
Inventories83
Accounts payable and accrued expenses(43)5
Collateral received, net5—
Income taxes15(43)
Regulatory assets and liabilities, net(61)(32)
Pension and non-pension postretirement benefit contributions(37)(30)
Other assets and liabilities11453
Net cash flows provided by operating activities734570
Cash flows from investing activities
Capital expenditures(804)(668)
Other investing activities59
Net cash flows used in investing activities(799)(659)
Cash flows from financing activities
Changes in short-term borrowings(175)(336)
Issuance of long-term debt650800
Dividends paid on common stock(196)(184)
Contributions from parent—197
Other financing activities(7)(8)
Net cash flows provided by financing activities272469
Increase in cash, restricted cash, and cash equivalents207380
Cash, restricted cash, and cash equivalents at beginning of period3448
Cash, restricted cash, and cash equivalents at end of period$241$428
Supplemental cash flow information
(Decrease) increase in capital expenditures not paid$(50)$32

See the Combined Notes to Consolidated Financial Statements

Baltimore Gas and Electric Company

Balance Sheets

(Unaudited)

(In millions)June 30, 2025December 31, 2024
ASSETS
Current assets
Cash and cash equivalents$236$33
Restricted cash and cash equivalents51
Accounts receivable
Customer accounts receivable681654
Customer allowance for credit losses(66)(56)
Customer accounts receivable, net615598
Other accounts receivable91113
Other allowance for credit losses(5)(6)
Other accounts receivable, net86107
Inventories, net
Fossil fuel2829
Materials and supplies7784
Prepaid utility taxes1115
Regulatory assets199207
Prepaid renewable energy credits92157
Other1617
Total current assets1,3551,348
Property, plant, and equipment (net of accumulated depreciation and amortization of $5,151 and $5,005 as of June 30, 2025 and December 31, 2024, respectively)13,62013,134
Deferred debits and other assets
Regulatory assets792788
Investments910
Prepaid pension asset219218
Other4944
Total deferred debits and other assets1,0691,060
Total assets$16,044$15,542

See the Combined Notes to Consolidated Financial Statements

Baltimore Gas and Electric Company

Balance Sheets

(Unaudited)

(In millions)June 30, 2025December 31, 2024
LIABILITIES AND SHAREHOLDER'S EQUITY
Current liabilities
Short-term borrowings$—$175
Accounts payable449515
Accrued expenses158176
Payables to affiliates3648
Customer deposits121118
Regulatory liabilities2012
Renewable energy credit obligations94160
Other4539
Total current liabilities9231,243
Long-term debt6,0405,395
Deferred credits and other liabilities
Deferred income taxes and unamortized investment tax credits2,1742,099
Regulatory liabilities621636
Asset retirement obligations3636
Non-pension postretirement benefit obligations144150
Other10197
Total deferred credits and other liabilities3,0763,018
Total liabilities10,0399,656
Commitments and contingencies
Shareholder's equity
Common stock3,4833,483
Retained earnings2,5222,403
Total shareholder's equity6,0055,886
Total liabilities and shareholder's equity$16,044$15,542

See the Combined Notes to Consolidated Financial Statements

Baltimore Gas and Electric Company

Statements of Changes in Shareholder's Equity

(Unaudited)

Six Months Ended June 30, 2025
(In millions)Common StockRetained EarningsTotal Shareholder's Equity
Balance at December 31, 2024$3,483$2,403$5,886
Net income—260260
Common stock dividends—(98)(98)
Balance at March 31, 2025$3,483$2,565$6,048
Net income—5555
Common stock dividends—(98)(98)
Balance at June 30, 2025$3,483$2,522$6,005
Six Months Ended June 30, 2024
(In millions)Common StockRetained EarningsTotal Shareholder's Equity
Balance at December 31, 2023$3,246$2,244$5,490
Net income—264264
Common stock dividends—(92)(92)
Balance at March 31, 2024$3,246$2,416$5,662
Net income—4444
Common stock dividends—(92)(92)
Contributions from parent197—197
Balance at June 30, 2024$3,443$2,368$5,811

See the Combined Notes to Consolidated Financial Statements

Pepco Holdings LLC and Subsidiary Companies

Consolidated Statements of Operations and Comprehensive Income

(Unaudited)

Three Months Ended June 30,Six Months Ended June 30,
(In millions)2025202420252024
Operating revenues
Electric operating revenues$1,573$1,455$3,264$2,941
Natural gas operating revenues3328120100
Revenues from alternative revenue programs(29)(14)(32)32
Operating revenues from affiliates2254
Total operating revenues1,5791,4713,3573,077
Operating expenses
Purchased power5905531,2731,160
Purchased fuel1194937
Operating and maintenance291231586506
Operating and maintenance from affiliates4950103101
Depreciation and amortization233235467481
Taxes other than income taxes136126276254
Total operating expenses1,3101,2042,7542,539
Gain on sale of assets2—1—
Operating income271267604538
Other income and (deductions)
Interest expense, net(102)(92)(201)(183)
Interest expense to affiliates, net(1)—(2)—
Other, net17293557
Total other income and (deductions)(86)(63)(168)(126)
Income before income taxes185204436412
Income taxes42469986
Net income$143$158$337$326
Comprehensive income$143$158$337$326

See the Combined Notes to Consolidated Financial Statements

Pepco Holdings LLC and Subsidiary Companies

Consolidated Statements of Cash Flows

(Unaudited)

Six Months Ended June 30,
(In millions)20252024
Cash flows from operating activities
Net income$337$326
Adjustments to reconcile net income to net cash flows provided by operating activities:
Depreciation and amortization467481
Deferred income taxes and amortization of investment tax credits4726
Other non-cash operating activities12847
Changes in assets and liabilities:
Accounts receivable(80)(77)
Receivables from and payables to affiliates, net(14)3
Inventories(37)(25)
Accounts payable and accrued expenses3990
Collateral received, net82
Income taxes(34)(54)
Regulatory assets and liabilities, net(76)(126)
Pension and non-pension postretirement benefit contributions(45)(75)
Other assets and liabilities(39)(81)
Net cash flows provided by operating activities701537
Cash flows from investing activities
Capital expenditures(1,108)(903)
Proceeds from sales of long-lived assets2—
Net cash flows used in investing activities(1,106)(903)
Cash flows from financing activities
Changes in short-term borrowings(300)(394)
Issuance of long-term debt425925
Retirement of long-term debt—(400)
Changes in Exelon intercompany money pool(3)(8)
Distributions to member(292)(282)
Contributions from member522487
Other financing activities(13)(25)
Net cash flows provided by financing activities339303
Decrease in cash, restricted cash, and cash equivalents(66)(63)
Cash, restricted cash, and cash equivalents at beginning of period163204
Cash, restricted cash, and cash equivalents at end of period$97$141
Supplemental cash flow information
Decrease in capital expenditures not paid$(137)$(25)

See the Combined Notes to Consolidated Financial Statements

Pepco Holdings LLC and Subsidiary Companies

Consolidated Balance Sheets

(Unaudited)

(In millions)June 30, 2025December 31, 2024
ASSETS
Current assets
Cash and cash equivalents$67$139
Restricted cash and cash equivalents3024
Accounts receivable
Customer accounts receivable896827
Customer allowance for credit losses(123)(108)
Customer accounts receivable, net773719
Other accounts receivable278284
Other allowance for credit losses(52)(49)
Other accounts receivable, net226235
Receivables from affiliates118
Inventories, net
Fossil fuel47
Materials and supplies365325
Prepaid utility taxes4770
Regulatory assets320323
Prepaid renewable energy credits100194
Other4836
Total current assets1,9912,080
Property, plant, and equipment (net of accumulated depreciation and amortization of $4,051 and $3,728 as of June 30, 2025 and December 31, 2024, respectively)20,63620,053
Deferred debits and other assets
Regulatory assets1,5411,570
Goodwill4,0054,005
Investments153152
Prepaid pension asset244252
Other126185
Total deferred debits and other assets6,0696,164
Total assets$28,696$28,297

See the Combined Notes to Consolidated Financial Statements

Pepco Holdings LLC and Subsidiary Companies

Consolidated Balance Sheets

(Unaudited)

(In millions)June 30, 2025December 31, 2024
LIABILITIES AND MEMBER'S EQUITY
Current liabilities
Short-term borrowings$230$530
Long-term debt due within one year214290
Accounts payable659721
Accrued expenses305367
Payables to affiliates5566
Borrowings from Exelon intercompany money pool6063
Customer deposits116113
Regulatory liabilities7669
Unamortized energy contract liabilities55
Renewable energy credit obligations137217
Other103124
Total current liabilities1,9602,565
Long-term debt9,3218,834
Deferred credits and other liabilities
Deferred income taxes and unamortized investment tax credits3,2673,190
Regulatory liabilities753794
Asset retirement obligations6967
Non-pension postretirement benefit obligations2731
Unamortized energy contract liabilities1821
Other392473
Total deferred credits and other liabilities4,5264,576
Total liabilities15,80715,975
Commitments and contingencies
Member's equity
Membership interest13,08412,562
Undistributed losses(195)(240)
Total member's equity12,88912,322
Total liabilities and member's equity$28,696$28,297

See the Combined Notes to Consolidated Financial Statements

Pepco Holdings LLC and Subsidiary Companies

Consolidated Statements of Changes in Member's Equity

(Unaudited)

Six Months Ended June 30, 2025
(In millions)Membership InterestUndistributed (Losses)/GainsTotal Member's Equity
Balance at December 31, 2024$12,562$(240)$12,322
Net income—194194
Distributions to member—(132)(132)
Contributions from member352—352
Balance at March 31, 2025$12,914$(178)$12,736
Net income—143143
Distributions to member—(160)(160)
Contributions from member170—170
Balance at June 30, 2025$13,084$(195)$12,889
Six Months Ended June 30, 2024
(In millions)Membership InterestUndistributed (Losses)/GainsTotal Member's Equity
Balance at December 31, 2023$12,057$(275)$11,782
Net income—168168
Distributions to member—(118)(118)
Contributions from member487—487
Balance at March 31, 2024$12,544$(225)$12,319
Net income—158158
Distributions to member—(164)(164)
Balance at June 30, 2024$12,544$(231)$12,313

See the Combined Notes to Consolidated Financial Statements

Potomac Electric Power Company

Statements of Operations and Comprehensive Income

(Unaudited)

Three Months Ended June 30,Six Months Ended June 30,
(In millions)2025202420252024
Operating revenues
Electric operating revenues$791691$1,645$1,419
Revenues from alternative revenue programs(16)7(14)37
Operating revenues from affiliates1243
Total operating revenues7767001,6351,459
Operating expenses
Purchased power256234574514
Operating and maintenance9137187123
Operating and maintenance from affiliates6465126129
Depreciation and amortization10798212205
Taxes other than income taxes109100222203
Total operating expenses6275341,3211,174
Gain on sale of assets2—1—
Operating income151166315285
Other income and (deductions)
Interest expense, net(54)(46)(106)(92)
Other, net9162032
Total other income and (deductions)(45)(30)(86)(60)
Income before income taxes106136229225
Income taxes22284842
Net income$84$108$181$183
Comprehensive income$84$108$181$183

See the Combined Notes to Consolidated Financial Statements

Potomac Electric Power Company

Statements Of Cash Flows

(Unaudited)

Six Months Ended June 30,
(In millions)20252024
Cash flows from operating activities
Net income$181$183
Adjustments to reconcile net income to net cash flows provided by operating activities:
Depreciation and amortization212205
Deferred income taxes and amortization of investment tax credits1410
Other non-cash operating activities46(23)
Changes in assets and liabilities:
Accounts receivable(73)(30)
Receivables from and payables to affiliates, net—7
Inventories(18)(12)
Accounts payable and accrued expenses1747
Collateral received, net2—
Income taxes(38)(45)
Regulatory assets and liabilities, net(27)(48)
Pension and non-pension postretirement benefit contributions(6)(5)
Other assets and liabilities6(34)
Net cash flows provided by operating activities316255
Cash flows from investing activities
Capital expenditures(469)(454)
Proceeds from sales of long-lived assets2—
Changes in PHI intercompany money pool—(57)
Net cash flows used in investing activities(467)(511)
Cash flows from financing activities
Changes in short-term borrowings(51)(132)
Issuance of long-term debt200675
Retirement of long-term debt—(400)
Dividends paid on common stock(158)(153)
Contributions from parent157251
Other financing activities(4)(17)
Net cash flows provided by financing activities144224
Decrease in cash, restricted cash, and cash equivalents(7)(32)
Cash, restricted cash, and cash equivalents at beginning of period5172
Cash, restricted cash, and cash equivalents at end of period$44$40
Supplemental cash flow information
Decrease in capital expenditures not paid$(64)$(18)

See the Combined Notes to Consolidated Financial Statements

Potomac Electric Power Company

Balance Sheets

(Unaudited)

(In millions)June 30, 2025December 31, 2024
ASSETS
Current assets
Cash and cash equivalents$22$30
Restricted cash and cash equivalents2221
Accounts receivable
Customer accounts receivable456395
Customer allowance for credit losses(69)(59)
Customer accounts receivable, net387336
Other accounts receivable148142
Other allowance for credit losses(28)(27)
Other accounts receivable, net120115
Receivables from affiliates11
Inventories, net187169
Regulatory assets154157
Prepaid renewable energy credits86165
Other1755
Total current assets9961,049
Property, plant, and equipment (net of accumulated depreciation and amortization of $4,651 and $4,522 as of June 30, 2025 and December 31, 2024, respectively)10,32710,097
Deferred debits and other assets
Regulatory assets425446
Investments137135
Prepaid pension asset208222
Other5651
Total deferred debits and other assets826854
Total assets$12,149$12,000

See the Combined Notes to Consolidated Financial Statements

Potomac Electric Power Company

Balance Sheets

(Unaudited)

(In millions)June 30, 2025December 31, 2024
LIABILITIES AND SHAREHOLDER'S EQUITY
Current liabilities
Short-term borrowings$149$200
Long-term debt due within one year66
Accounts payable316360
Accrued expenses160201
Payables to affiliates3437
Customer deposits5855
Regulatory liabilities817
Merger related obligation2122
Renewable energy credit obligations87169
Other4551
Total current liabilities8841,118
Long-term debt4,5524,356
Deferred credits and other liabilities
Deferred income taxes and unamortized investment tax credits1,5431,509
Regulatory liabilities293310
Asset retirement obligations5049
Other212223
Total deferred credits and other liabilities2,0982,091
Total liabilities7,5347,565
Commitments and contingencies
Shareholder's equity
Common stock3,4923,335
Retained earnings1,1231,100
Total shareholder's equity4,6154,435
Total liabilities and shareholder's equity$12,149$12,000

See the Combined Notes to Consolidated Financial Statements

Potomac Electric Power Company

Statements Of Changes In Shareholder's Equity

(Unaudited)

Six Months Ended June 30, 2025
(In millions)Common StockRetained EarningsTotal Shareholder's Equity
Balance at December 31, 2024$3,335$1,100$4,435
Net income—9797
Common stock dividends—(66)(66)
Contributions from parent157—157
Balance at March 31, 2025$3,492$1,131$4,623
Net income—8484
Common stock dividends—(92)(92)
Balance at June 30, 2025$3,492$1,123$4,615
Six Months Ended June 30, 2024
(In millions)Common StockRetained EarningsTotal Shareholder's Equity
Balance at December 31, 2023$3,075$1,069$4,144
Net income—7575
Common stock dividends—(51)(51)
Contributions from parent251—251
Balance at March 31, 2024$3,326$1,093$4,419
Net income—108108
Common stock dividends—(102)(102)
Balance at June 30, 2024$3,326$1,099$4,425

See the Combined Notes to Consolidated Financial Statements

Delmarva Power & Light Company

Statements of Operations and Comprehensive Income

(Unaudited)

Three Months Ended June 30,Six Months Ended June 30,
(In millions)2025202420252024
Operating revenues
Electric operating revenues$386$361$850$773
Natural gas operating revenues3328120100
Revenues from alternative revenue programs——(5)4
Operating revenues from affiliates2143
Total operating revenues421390969880
Operating expenses
Purchased power161147370333
Purchased fuel1194937
Operating and maintenance5050110101
Operating and maintenance from affiliates45469191
Depreciation and amortization6361126122
Taxes other than income taxes20194139
Total operating expenses350332787723
Operating income7158182157
Other income and (deductions)
Interest expense, net(25)(24)(50)(46)
Other, net48815
Total other income and (deductions)(21)(16)(42)(31)
Income before income taxes5042140126
Income taxes1183225
Net income$39$34$108$101
Comprehensive income$39$34$108$101

See the Combined Notes to Consolidated Financial Statements

Delmarva Power & Light Company

Statements Of Cash Flows

(Unaudited)

Six Months Ended June 30,
(In millions)20252024
Cash flows from operating activities
Net income$108$101
Adjustments to reconcile net income to net cash flows provided by operating activities:
Depreciation and amortization126122
Deferred income taxes and amortization of investment tax credits157
Other non-cash operating activities3015
Changes in assets and liabilities:
Accounts receivable114
Receivables from and payables to affiliates, net(3)2
Inventories(11)(10)
Accounts payable and accrued expenses338
Collateral received, net3—
Income taxes(2)(24)
Regulatory assets and liabilities, net(22)(26)
Pension and non-pension postretirement benefit contributions(1)—
Other assets and liabilities2421
Net cash flows provided by operating activities281250
Cash flows from investing activities
Capital expenditures(277)(268)
Changes in PHI intercompany money pool—(125)
Net cash flows used in investing activities(277)(393)
Cash flows from financing activities
Changes in short-term borrowings(142)(63)
Issuance of long-term debt125175
Dividends paid on common stock(90)(84)
Contributions from parent99154
Other financing activities(5)(4)
Net cash flows (used in) provided by financing activities(13)178
(Decrease) increase in cash, restricted cash, and cash equivalents(9)35
Cash, restricted cash, and cash equivalents at beginning of period2316
Cash, restricted cash, and cash equivalents at end of period$14$51
Supplemental cash flow information
Decrease in capital expenditures not paid$(45)$(2)

See the Combined Notes to Consolidated Financial Statements

Delmarva Power & Light Company

Balance Sheets

(Unaudited)

(In millions)June 30, 2025December 31, 2024
ASSETS
Current assets
Cash and cash equivalents$9$21
Restricted cash and cash equivalents52
Accounts receivable
Customer accounts receivable195210
Customer allowance for credit losses(21)(17)
Customer accounts receivable, net174193
Other accounts receivable6163
Other allowance for credit losses(9)(9)
Other accounts receivable, net5254
Receivables from affiliates1—
Inventories, net
Fossil fuel46
Materials and supplies10895
Prepaid utility taxes—26
Regulatory assets5860
Prepaid renewable energy credits1529
Other2316
Total current assets449502
Property, plant, and equipment (net of accumulated depreciation and amortization of $2,163 and $2,075 as of June 30, 2025 and December 31, 2024, respectively)5,6615,540
Deferred debits and other assets
Regulatory assets217215
Prepaid pension asset111120
Other4544
Total deferred debits and other assets373379
Total assets$6,483$6,421

See the Combined Notes to Consolidated Financial Statements

Delmarva Power & Light Company

Balance Sheets

(Unaudited)

(In millions)June 30, 2025December 31, 2024
LIABILITIES AND SHAREHOLDER'S EQUITY
Current liabilities
Short-term borrowings$2$144
Long-term debt due within one year52130
Accounts payable150187
Accrued expenses4955
Payables to affiliates2426
Customer deposits3534
Regulatory liabilities3642
Renewable energy credit obligations5048
Other2122
Total current liabilities419688
Long-term debt2,2942,090
Deferred credits and other liabilities
Deferred income taxes and unamortized investment tax credits969946
Regulatory liabilities318325
Asset retirement obligations1313
Non-pension postretirement benefit obligations23
Other109114
Total deferred credits and other liabilities1,4111,401
Total liabilities4,1244,179
Commitments and contingencies
Shareholder's equity
Common stock1,7141,615
Retained earnings645627
Total shareholder's equity2,3592,242
Total liabilities and shareholder's equity$6,483$6,421

See the Combined Notes to Consolidated Financial Statements

Delmarva Power & Light Company

Statements Of Changes In Shareholder's Equity

(Unaudited)

Six Months Ended June 30, 2025
(In millions)Common StockRetained EarningsTotal Shareholder's Equity
Balance at December 31, 2024$1,615$627$2,242
Net income—6969
Common stock dividends—(46)(46)
Contributions from parent99—99
Balance at March 31, 2025$1,714$650$2,364
Net income—3939
Common stock dividends—(44)(44)
Contributions from parent———
Balance at June 30, 2025$1,714$645$2,359
Six Months Ended June 30, 2024
(In millions)Common StockRetained EarningsTotal Shareholder's Equity
Balance at December 31, 2023$1,455$638$2,093
Net income—6666
Common stock dividends—(45)(45)
Contributions from parent154—154
Balance at March 31, 2024$1,609$659$2,268
Net income—3434
Common stock dividends—(39)(39)
Balance at June 30, 2024$1,609$654$2,263

See the Combined Notes to Consolidated Financial Statements

Atlantic City Electric Company and Subsidiary Company

Consolidated Statements of Operations and Comprehensive Income

(Unaudited)

Three Months Ended June 30,Six Months Ended June 30,
(In millions)2025202420252024
Operating revenues
Electric operating revenues$397$403$769$748
Revenues from alternative revenue programs(13)(21)(13)(9)
Operating revenues from affiliates—111
Total operating revenues384383757740
Operating expenses
Purchased power173172329312
Operating and maintenance555010697
Operating and maintenance from affiliates40427981
Depreciation and amortization6272127146
Taxes other than income taxes3255
Total operating expenses333338646641
Operating income514511199
Other income and (deductions)
Interest expense, net(20)(20)(41)(39)
Other, net2468
Total other income and (deductions)(18)(16)(35)(31)
Income before income taxes33297668
Income taxes982018
Net income$24$21$56$50
Comprehensive income$24$21$56$50

See the Combined Notes to Consolidated Financial Statements

Atlantic City Electric Company and Subsidiary Company

Statements Of Cash Flows

(Unaudited)

Six Months Ended June 30,
(In millions)20252024
Cash flows from operating activities
Net income$56$50
Adjustments to reconcile net income to net cash flows provided by operating activities:
Depreciation and amortization127146
Deferred income taxes and amortization of investment tax credits1312
Other non-cash operating activities3330
Changes in assets and liabilities:
Accounts receivable(18)(50)
Receivables from and payables to affiliates, net(4)(2)
Inventories(9)(3)
Accounts payable and accrued expenses3726
Collateral received, net42
Income taxes(2)(10)
Regulatory assets and liabilities, net(27)(51)
Pension and non-pension postretirement benefit contributions(2)(8)
Other assets and liabilities(49)(60)
Net cash flows provided by operating activities15982
Cash flows from investing activities
Capital expenditures(196)(180)
Net cash flows used in investing activities(196)(180)
Cash flows from financing activities
Changes in short-term borrowings(107)(199)
Issuance of long-term debt10075
Changes in PHI intercompany money pool—182
Dividends paid on common stock(44)(44)
Contributions from parent9481
Other financing activities(3)(3)
Net cash flows provided by financing activities4092
Increase (decrease) in cash and cash equivalents3(6)
Cash and cash equivalents at beginning of period1421
Cash and cash equivalents at end of period$17$15
Supplemental cash flow information
Decrease in capital expenditures not paid$(28)$(5)

See the Combined Notes to Consolidated Financial Statements

Atlantic City Electric Company and Subsidiary Company

Consolidated Balance Sheets

(Unaudited)

(In millions)June 30, 2025December 31, 2024
ASSETS
Current assets
Cash and cash equivalents$15$14
Restricted cash and cash equivalents2—
Accounts receivable
Customer accounts receivable245223
Customer allowance for credit losses(33)(32)
Customer accounts receivable, net212191
Other accounts receivable7179
Other allowance for credit losses(15)(13)
Other accounts receivable, net5666
Receivables from affiliates107
Inventories, net7162
Prepaid utility taxes41—
Regulatory assets103101
Other76
Total current assets517447
Property, plant, and equipment (net of accumulated depreciation and amortization of $1,881 and $1,798 as of June 30, 2025 and December 31, 2024, respectively)4,4344,366
Deferred debits and other assets
Regulatory assets506502
Prepaid pension asset21
Other3633
Total deferred debits and other assets544536
Total assets$5,495$5,349

See the Combined Notes to Consolidated Financial Statements

Atlantic City Electric Company and Subsidiary Company

Consolidated Balance Sheets

(Unaudited)

(In millions)June 30, 2025December 31, 2024
LIABILITIES AND SHAREHOLDER'S EQUITY
Current liabilities
Short-term borrowings$79$186
Long-term debt due within one year155154
Accounts payable183163
Accrued expenses4852
Payables to affiliates2122
Customer deposits2424
Regulatory liabilities3210
Other1410
Total current liabilities556621
Long-term debt1,8801,779
Deferred credits and other liabilities
Deferred income taxes and unamortized investment tax credits830816
Regulatory liabilities140146
Other5962
Total deferred credits and other liabilities1,0291,024
Total liabilities3,4653,424
Commitments and contingencies
Shareholder's equity
Common stock2,0091,915
Retained earnings2110
Total shareholder's equity2,0301,925
Total liabilities and shareholder's equity$5,495$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

(Unaudited)

Six Months Ended June 30, 2025
(In millions)Common StockRetained (Deficit) EarningsTotal Shareholder's Equity
Balance at December 31, 2024$1,915$10$1,925
Net income—3131
Common stock dividends—(20)(20)
Contributions from parent94—94
Balance at March 31, 2025$2,009$21$2,030
Net income—2424
Common stock dividends—(24)(24)
Contributions from parent———
Balance at June 30, 2025$2,009$21$2,030
Six Months Ended June 30, 2024
(In millions)Common StockRetained (Deficit) EarningsTotal Shareholder's Equity
Balance at December 31, 2023$1,830$(18)$1,812
Net income—2929
Common stock dividends—(22)(22)
Contributions from parent81—81
Balance at March 31, 2024$1,911$(11)$1,900
Net income—2121
Common stock dividends—(22)(22)
Balance at June 30, 2024$1,911$(12)$1,899

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 RegistrantBusinessService Territories
Commonwealth Edison CompanyPurchase and regulated retail sale of electricityNorthern Illinois, including the City of Chicago
Transmission and distribution of electricity to retail customers
PECO Energy CompanyPurchase and regulated retail sale of electricity and natural gasSoutheastern Pennsylvania, including the City of Philadelphia (electricity)
Transmission and distribution of electricity and distribution of natural gas to retail customersPennsylvania counties surrounding the City of Philadelphia (natural gas)
Baltimore Gas and Electric CompanyPurchase and regulated retail sale of electricity and natural gasCentral Maryland, including the City of Baltimore (electricity and natural gas)
Transmission and distribution of electricity and distribution of natural gas to retail customers
Pepco Holdings LLCUtility services holding company engaged, through its reportable segments Pepco, DPL, and ACEService Territories of Pepco, DPL, and ACE
Potomac Electric Power CompanyPurchase and regulated retail sale of electricityDistrict of Columbia, and major portions of Montgomery and Prince George’s Counties, Maryland
Transmission and distribution of electricity to retail customers
Delmarva Power & Light CompanyPurchase and regulated retail sale of electricity and natural gasPortions of Delaware and Maryland (electricity)
Transmission and distribution of electricity and distribution of natural gas to retail customersPortions of New Castle County, Delaware (natural gas)
Atlantic City Electric CompanyPurchase and regulated retail sale of electricityPortions of Southern New Jersey
Transmission and distribution of electricity to retail customers

Basis of Presentation (All Registrants)

This is a combined quarterly report of all Registrants. The Notes to the Consolidated Financial Statements apply to the Registrants as indicated parenthetically next to each corresponding disclosure. When appropriate, the Registrants are named specifically for their related activities and disclosures. Each of the Registrant’s Consolidated Financial Statements includes the accounts of its subsidiaries. All intercompany transactions have been eliminated.

Through its business services subsidiary, BSC, Exelon provides its subsidiaries with a variety of support services at cost, including legal, human resources, financial, information technology, and supply management services. PHI also has a business services subsidiary, PHISCO, which provides a variety of support services at cost, including legal, 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.

Combined Notes to Consolidated Financial Statements

(Dollars in millions, except per share data, unless otherwise noted)

Note 1 — Significant Accounting Policies

The accompanying consolidated financial statements as of June 30, 2025 and for the three and six months ended June 30, 2025 and 2024 are unaudited but, in the opinion of each Registrant's management, the Registrants include all adjustments that are considered necessary for a fair statement of the Registrants’ respective financial statements in accordance with GAAP. All adjustments are of a normal, recurring nature, except as otherwise disclosed. The December 31, 2024 Consolidated Balance Sheets were derived from audited financial statements. The interim financial statements are to be read in conjunction with prior annual financial statements and notes. Additionally, financial results for interim periods are not necessarily indicative of results that may be expected for any other interim period or for the fiscal year ending December 31, 2025. These Combined Notes to Consolidated Financial Statements have been prepared pursuant to the rules and regulations of the SEC for Quarterly Reports on Form 10-Q. Certain information and note disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations.

New Accounting Standards (All Registrants)

New Accounting Standards Issued and Not Yet Adopted as of June 30, 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 June 30, 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.

Improvement 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, with early adoption permitted.

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.

2. Regulatory Matters (All Registrants)

As discussed in Note 3 — Regulatory Matters of the 2024 Form 10-K, the Registrants are involved in rate and regulatory proceedings at FERC and their state commissions. The following discusses developments in 2025 and updates to the 2024 Form 10-K.

Combined Notes to Consolidated Financial Statements — (Continued)

(Dollars in millions, except per share data, unless otherwise noted)

Note 2 — Regulatory Matters

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/JurisdictionFiling DateServiceRequested Revenue Requirement IncreaseApproved Revenue Requirement IncreaseApproved ROEApproval DateRate Effective Date
ComEd - IllinoisJanuary 17, 2023(a)Electric$1,487$1,0458.905%December 19, 2024January 1, 2024
April 26, 2024 (amended on September 11, 2024)(b)Electric$624$6239.89%October 31, 2024January 1, 2025
PECO - PennsylvaniaMarch 28, 2024Electric(c)(d)$464$354N/A(e)December 12, 2024January 1, 2025
Natural Gas(d)$111$78
BGE - Maryland(f)February 17, 2023Electric$313$1799.50%December 14, 2023January 1, 2024
Natural Gas$289$2299.45%
Pepco - District of Columbia(g)April 13, 2023 (amended February 27, 2024)Electric$186$1239.50%November 26, 2024January 1, 2025
Pepco - Maryland(h)May 16, 2023 (amended February 23, 2024)Electric$111$459.50%June 10, 2024April 1, 2024
DPL - Maryland(i)May 19, 2022Electric$38$299.60%December 14, 2022January 1, 2023
DPL - Delaware(j)December 15, 2022 (amended September 29, 2023)Electric$39$289.60%April 18, 2024July 15, 2023
ACE - New Jersey(k)February 15, 2023 (amended August 21, 2023)Electric$92$459.60%November 17, 2023December 1, 2023

(a)Reflects a four-year cumulative multi-year rate plan for January 1, 2024 to 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 April 29, 2025, ComEd filed its 2024 MRP Reconciliation reflecting a revenue increase of $268 million, which includes the tax benefit of NOLCs. While NOLCs were included in the MRP Reconciliation, the impacts of the NOLCs will not be reflected in the financial statements until the PLR is received from the IRS. See Note 6 — Income Taxes for additional information on NOLCs.

(b)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 are determined and until such time as new rates are 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.

Combined Notes to Consolidated Financial Statements — (Continued)

(Dollars in millions, except per share data, unless otherwise noted)

Note 2 — Regulatory Matters

(c)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.

(d)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.

(e)The PECO electric and natural gas base rate case proceedings were resolved through settlement agreements, which did not specify an approved ROE.

(f)Reflects a three-year cumulative multi-year plan for January 1, 2024 through December 31, 2026. The MDPSC awarded BGE electric revenue requirement increases of $41 million, $113 million, and $25 million in 2024, 2025, and 2026, respectively, and natural gas revenue requirement increases of $126 million, $62 million, and $41 million in 2024, 2025, and 2026, respectively. 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. The MDPSC also approved a portion of the requested 2021 and 2022 reconciliation amounts, which was recovered through separate electric and gas riders between March 2024 through February 2025. As such, the reconciliation amounts are not included in the approved revenue requirement 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.

(g)Reflects a two-year cumulative multi-year plan for 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.

(h)Reflects the amounts requested (before offsets) and awarded for a one-year multi-year plan for April 1, 2024 through March 31, 2025. The MDPSC awarded Pepco an electric incremental revenue requirement increase of $45 million for the 12-month period ending March 31, 2025. 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 recovery of $31 million for the 12-month period ended March 31, 2024, with supporting testimony and schedules.

(i)Reflects a three-year cumulative multi-year plan for January 1, 2023 through December 31, 2025. The MDPSC awarded DPL electric incremental revenue requirement increases of $17 million, $6 million, and $6 million for 2023, 2024, and 2025, respectively.

(j)On April 18, 2024, 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.

(k)Requested and approved increases are before New Jersey sales and use tax. The NJBPU awarded ACE electric revenue requirement increases of $36 million and $9 million effective December 1, 2023 and February 1, 2024, respectively.

Pending Distribution Base Rate Case Proceedings

Registrant/JurisdictionFiling DateServiceRequested Revenue Requirement IncreaseRequested ROEExpected Approval Timing
DPL - Delaware(a)September 20, 2024 (amended May 30, 2025)Natural Gas$4010.65%First quarter of 2026
ACE - New Jersey(b)November 21, 2024Electric$10910.70%Fourth quarter of 2025

(a)DPL implemented interim rates on April 20, 2025, subject to refund.

(b)Requested increases are before New Jersey sales and use tax. ACE may implement interim rates, subject to refund.

Transmission Formula Rates

The Utility Registrants' transmission rates are each established based on a FERC-approved formula. ComEd, BGE, Pepco, DPL, and ACE are required to file an annual update to the FERC-approved formula on or before

Combined Notes to Consolidated Financial Statements — (Continued)

(Dollars in millions, except per share data, unless otherwise noted)

Note 2 — Regulatory Matters

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$1278.13%11.50%
PECO$9$13$227.54%10.35%
BGE$21$21$35(e)7.53%10.50%
Pepco$35$16$517.71%10.50%
DPL$32$(9)$237.48%10.50%
ACE$(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 filing reflects 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 6 — 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, (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 (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.

Combined Notes to Consolidated Financial Statements — (Continued)

(Dollars in millions, except per share data, unless otherwise noted)

Note 2 — Regulatory Matters

On December 14, 2023, the ICC issued a final order. The ICC rejected ComEd’s Grid Plan as non-compliant with certain requirements of CEJA and required ComEd to file a revised Grid Plan. In the absence of an approved 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 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 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 Grid Plan. On December 19, 2024, the ICC approved the Refiled 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.

In January 2022, ComEd filed a request with the ICC proposing performance metrics that would be used in determining ROE incentives and penalties in the event ComEd filed a MRP in January 2023. On September 27, 2022, the ICC issued a final order approving seven performance metrics that provide symmetrical performance adjustments of 32 total basis points to ComEd’s rate of return on common equity based on the extent to which ComEd achieves the annual performance goals. On November 10, 2022, the ICC granted ComEd's application for rehearing, in part. On April 5, 2023, the ICC issued its final order on rehearing for the performance and tracking metrics proceeding, in which the ICC declined to adopt ComEd's proposed modifications to the reliability and peak load reduction performance metrics.

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 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. The seller has not provided notification to ComEd or the IPA that any subsidies or tax credits, such as nuclear production tax credits that became available for electricity generated beginning January 1, 2024, have been monetized and the IPA has not adjusted the CMC price paid by ComEd. 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 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 as of June 30, 2025 is $159 million.

Combined Notes to Consolidated Financial Statements — (Continued)

(Dollars in millions, except per share data, unless otherwise noted)

Note 2 — Regulatory Matters

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). ComEd filed its annual energy efficiency formula rate update with the ICC on May 23, 2025. The filing establishes the revenue requirement used to set the rates that will take effect in January 2026, subject to the ICC's review and approval. The requested revenue requirement update is based on a reconciliation of the 2024 actual costs plus projected 2026 expenditures.

Initial Revenue Requirement IncreaseAnnual Reconciliation DecreaseTotal Revenue Requirement IncreaseRequested Return on Rate Base**(a)**Requested ROE
$24$(4)$207.24%10.21%

(a)The requested revenue requirement increase provides for a weighted average debt and equity return on the energy efficiency regulatory asset and rate base of 7.24% inclusive of an allowed ROE of 10.21%, reflecting the monthly average yields for 30-year treasury bonds plus 580 basis points. For the 2024 reconciliation year, the requested revenue requirement provides for a weighted average debt and equity return on the energy efficiency regulatory asset and rate base of 7.51% 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.

Maryland Regulatory Matters

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. As of June 30, 2025, BGE derecognized Regulatory assets of $10 million and Regulatory liabilities of $3 million for multi-year plan reconciliations that will no longer be filed. DPL has derecognized Regulatory liabilities of $0.4 million for multi-year reconciliations yet to be filed. Multi-year plan reconciliations filed prior to January 1, 2025, remain lawful and will be resolved in their respective proceedings.

New Jersey Regulatory Matters

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 will be deferred to a Regulatory asset. 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.

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

Combined Notes to Consolidated Financial Statements — (Continued)

(Dollars in millions, except per share data, unless otherwise noted)

Note 2 — Regulatory Matters

customers for amounts collected in previous years. ComEd responded to that report and on August 28, 2023, ComEd filed a formal notice of the issues it contested within the audit report. On December 14, 2023, FERC appointed a settlement judge for the contested overhead allocation findings and set the matter for a trial-type hearing. That hearing process was held in abeyance while a formal settlement process, which began in February 2024, took place.

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

The Utility Registrants' regulatory assets and liabilities have not changed materially since December 31, 2024, unless noted below. See Note 3 — Regulatory Matters of the 2024 Form 10-K for additional information on the specific regulatory assets and liabilities.

ComEd. Regulatory assets decreased $140 million primarily due to a decrease of $295 million in the Electric distribution formula rate annual reconciliations and an increase of $118 million in the Zero emission credit regulatory assets.

PECO. Regulatory assets increased $102 million primarily due to an increase of $111 million in the Deferred income taxes regulatory asset. Regulatory liabilities increased $156 million primarily due to an increase of $132 million in the Decommissioning the Regulatory Agreement Units and an increase of $26 million in the Electric energy and natural gas costs regulatory liabilities.

Pepco. Regulatory liabilities decreased $26 million primarily due to a decrease of $20 million in the Deferred income taxes regulatory liability.

ACE. Regulatory liabilities increased $16 million primarily due to an increase of $13 million in the Transmission formula rate annual reconciliations regulatory liability.

Capitalized Ratemaking Amounts Not Recognized

The following table presents authorized amounts capitalized for ratemaking purposes related to earnings on shareholders' investment that are not recognized for financial reporting purposes in 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 June 30, 2025 and December 31, 2024.

ExelonComEd**(a)**BGE**(b)**PHIPepco**(c)**DPL**(d)**ACE**(e)**
June 30, 2025$77$30$7$40$23$1$16
December 31, 202411746165540114

(a)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, 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.

Combined Notes to Consolidated Financial Statements — (Continued)

(Dollars in millions, except per share data, unless otherwise noted)

Note 3 — Revenue from Contracts with Customers

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.

See Note 4 — Revenue from Contracts with Customers of the 2024 Form 10-K for additional information regarding the primary sources of revenue for the Registrants.

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 deferred credits and other liabilities in their Consolidated Balance Sheets.

For Pepco, DPL, and ACE these contract liabilities primarily relate to upfront consideration received in the third quarter of 2020 for a collaborative arrangement ("Agreement") with an unrelated owner and manager of communication infrastructure, as well as additional consideration received for the payment option amendment ("Amendment") executed during the fourth quarter of 2023, which is discussed in further detail within Note 4 — Revenue from Contracts with Customers of the 2024 Form 10-K. The contract liability balance attributable to the Agreement and the Amendment is being recognized as Electric operating revenues over a 35 year period and 31 year period, respectively.

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 for the three and six months ended June 30, 2025 and 2024. At June 30, 2025 and December 31, 2024, ComEd's, PECO's, and BGE's contract liabilities were immaterial.

Exelon**(a)**PHI**(a)**Pepco**(a)**DPLACE
Balance at December 31, 2024$127$127$101$13$13
Revenues recognized(1)(1)(1)——
Balance at March 31, 2025$126$126$100$13$13
Revenues recognized(3)(3)(2)(1)—
Balance at June 30, 2025$123$123$98$12$13
Exelon**(a)**PHI**(a)**Pepco**(a)**DPLACE
Balance at December 31, 2023$133$133$107$13$13
Revenues recognized(2)(2)(2)——
Balance at March 31, 2024$131$131$105$13$13
Revenues recognized(1)(1)(1)——
Balance at June 30, 2024$130$130$104$13$13

(a)Revenues recognized in the three and six months ended June 30, 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 June 30, 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.

Combined Notes to Consolidated Financial Statements — (Continued)

(Dollars in millions, except per share data, unless otherwise noted)

Note 3 — Revenue from Contracts with Customers

YearExelonPHIPepcoDPLACE
2025$4$4$3$—$1
2026555——
20276651—
2028665—1
2029 and thereafter102102801111
Total$123$123$98$12$13

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 Registrants' 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, PHI, 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.

An analysis and reconciliation of the Registrants’ reportable segment information to the respective information in the consolidated financial statements for the three and six months ended June 30, 2025 and 2024 is as follows:

Three Months Ended June 30, 2025 and 2024

ComEdPECOBGEPHIOther**(a)**Intersegment EliminationsExelon
Operating revenues**(b)****:**
2025
Electric revenues$1,836$880$849$1,544$—$(13)$5,096
Natural gas revenues—12018033—(2)331
Shared service and other revenues———2468(470)—
Total operating revenues$1,836$1,000$1,029$1,579$468$(485)$5,427
2024
Electric revenues$2,079$797$782$1,441$—$(6)$5,093
Natural gas revenues—9414628——268
Shared service and other revenues———2468(470)—
Total operating revenues$2,079$891$928$1,471$468$(476)$5,361
Less:
Purchased power
2025$550$304$367$590$—$—$1,811
20247632983235531—1,938
Purchased fuel
2025$—$35$39$11$—$—$85
2024—25209——54
Operating and maintenance

Combined Notes to Consolidated Financial Statements — (Continued)

(Dollars in millions, except per share data, unless otherwise noted)

Note 4 — Segment Information

2025$322$242$201$291$477$(212)$1,321
2024345209188231435(199)1,209
Operating and maintenance from affiliates
2025$100$63$63$49$10$(285)$—
202410461625010(287)—
Depreciation and amortization
2025$387$112$154$233$16$—$902
202437410716223516—894
Taxes other than income taxes
2025$97$54$85$136$11$—$383
20249452801268—360
(Gain) on sale of assets
2025$—$—$—$(2)$—$—$(2)
2024(5)(2)————(7)
Interest expense, net(c)
2025$128$57$61$102$176$—$524
2024120545392158(1)476
Interest expense to affiliates, net(c)
2025$3$3$—$1$—$—$7
202433———17
Other, net
2025$(31)$(10)$(11)$(17)$(8)$12$(65)
2024(20)(9)(8)(29)(8)10(64)
Income Taxes
2025$52$4$15$42$(43)$—$70
2024313446(38)—46
Net income (loss) attributable to common shareholders
2025$228$136$55$143$(171)$—$391
20242709044158(114)—448
Supplemental segment information
Intersegment revenues(d)
2025$10$3$2$2$466$(483)$—
20242222466(474)—
Capital Expenditures
2025$599$408$398$595$13$—$2,013
20245173823444506—1,699

(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 14 — 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 15 — Related Party Transactions for additional information on intersegment revenues.

PHI:

PepcoDPLACEOther**(a)**Intersegment EliminationsPHI
Operating revenues**(b)****:**
2025

Combined Notes to Consolidated Financial Statements — (Continued)

(Dollars in millions, except per share data, unless otherwise noted)

Note 4 — Segment Information

Electric revenues$776$388$384$—$(4)$1,544
Natural gas revenues—33———33
Shared service and other revenues———111(109)2
Total operating revenues$776$421$384$111$(113)$1,579
2024
Electric revenues$700$362$383$—$(4)$1,441
Natural gas revenues—28———28
Shared service and other revenues———115(113)2
Total operating revenues$700$390$383$115$(117)$1,471
Less:
Purchased power
2025$256$161$173$—$—$590
2024234147172——553
Purchased fuel
2025$—$11$—$—$—$11
2024—9———9
Operating and maintenance
2025$91$50$55$95$—$291
202437505094—231
Operating and maintenance from affiliates
2025$64$45$40$13$(113)$49
202465464214(117)50
Depreciation and amortization
2025$107$63$62$1$—$233
20249861724—235
Taxes other than income taxes
2025$109$20$3$4$—$136
20241001925—126
(Gain) on sale of assets
2025$(2)$—$—$—$—$(2)
2024——————
Interest expense, net(c)
2025$54$25$20$3$—$102
20244624202—92
Interest expense to affiliates, net(c)
2025$—$—$—$1$—$1
2024——————
Other, net
2025$(9)$(4)$(2)$(2)$—$(17)
2024(16)(8)(4)(1)—(29)
Income Taxes
2025$22$11$9$—$—$42
202428882—46
Net income (loss) attributable to common shareholders
2025$84$39$24$(4)$—$143
20241083421(5)—158
Supplemental segment information
Intersegment revenues(d)

Combined Notes to Consolidated Financial Statements — (Continued)

(Dollars in millions, except per share data, unless otherwise noted)

Note 4 — Segment Information

2025$1$2$—$111$(112)$2
2024211115(117)2
Capital Expenditures
2025$229$121$91$154$—$595
202422513491——450

(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 14 — 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)Includes intersegment revenues with ComEd, PECO, and BGE, which are eliminated at Exelon.

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.

Three Months Ended June 30, 2025
Revenues from contracts with customersComEdPECOBGEPHIPepcoDPLACE
Electric revenues
Residential$1,094$555$497$780$348$210$222
Small commercial & industrial55315590168486456
Large commercial & industrial177751403702923147
Public authorities & electric railroads12108221255
Other(a)22477118233917767
Total electric revenues(b)$2,060$872$853$1,573$791$387$397
Natural gas revenues
Residential$—$79$108$17$—$17$—
Small commercial & industrial—31238—8—
Large commercial & industrial——461—1—
Transportation—8—4—4—
Other(c)—273—3—
Total natural gas revenues(d)$—$120$184$33$—$33$—
Total revenues from contracts with customers$2,060$992$1,037$1,606$791$420$397
Other revenues
Revenues from alternative revenue programs$(234)$1$(13)$(29)$(16)$—$(13)
Other electric revenues(e)1074211—
Other natural gas revenues(e)——1————
Total other revenues$(224)$8$(8)$(27)$(15)$1$(13)
Total revenues for reportable segments$1,836$1,000$1,029$1,579$776$421$384

Combined Notes to Consolidated Financial Statements — (Continued)

(Dollars in millions, except per share data, unless otherwise noted)

Note 4 — Segment Information

Three Months Ended June 30, 2024
Revenues from contracts with customersComEdPECOBGEPHIPepcoDPLACE
Electric revenues
Residential$982$522$464$746$315$202$229
Small commercial & industrial56012888158436055
Large commercial & industrial269611393292513147
Public authorities & electric railroads147816745
Other(a)29875101205756468
Total electric revenues(b)$2,123$793$800$1,454$691$361$404
Natural gas revenues
Residential$—$63$89$15$—$15$—
Small commercial & industrial—25177—7—
Large commercial & industrial——401—1—
Transportation—5—4—4—
Other(c)——41—1—
Total natural gas revenues(d)$—$93$150$28$—$28$—
Total revenues from contracts with customers$2,123$886$950$1,482$691$389$404
Other revenues
Revenues from alternative revenue programs$(43)$—$(23)$(14)$7$—$(21)
Other electric revenues(e)(1)41321—
Other natural gas revenues(e)—1—————
Total other revenues$(44)$5$(22)$(11)$9$1$(21)
Total revenues for reportable segments$2,079$891$928$1,471$700$390$383

(a)Includes transmission revenue from PJM, wholesale electric revenue, and mutual assistance revenue.

(b)Includes operating revenues from affiliates in 2025 and 2024 respectively of:

  • $10 million, $2 million at ComEd

  • $3 million, $2 million at PECO

  • $1 million, $2 million at BGE

  • $2 million, $2 million at PHI

  • $1 million, $2 million at Pepco

  • $2 million, $1 million at DPL

  • less than $1 million, $1 million at ACE

(c)Includes revenues from off-system natural gas sales.

(d)Includes operating revenues from affiliates in 2025 and 2024 respectively of:

  • less than $1 million, less than $1 million at PECO

  • $1 million, less than $1 million at BGE

(e)Includes late payment charge revenues.

Six Months Ended June 30, 2025 and 2024

ComEdPECOBGEPHIOther**(a)**Intersegment EliminationsExelon
Operating revenues**(b)****:**
2025
Electric revenues$3,901$1,836$1,861$3,232$—$(26)$10,804
Natural gas revenues—497722120—(2)1,337
Shared service and other revenues———5934(939)—
Total operating revenues$3,901$2,333$2,583$3,357$934$(967)$12,141
2024

Combined Notes to Consolidated Financial Statements — (Continued)

(Dollars in millions, except per share data, unless otherwise noted)

Note 4 — Segment Information

Electric revenues$4,174$1,577$1,664$2,973$—$(11)$10,377
Natural gas revenues—368561100—(3)1,026
Shared service and other revenues———4928(932)—
Total operating revenues$4,174$1,945$2,225$3,077$928$(946)$11,403
Less:
Purchased power
2025$1,239$665$818$1,273$—$—$3,995
20241,6706047001,160——4,134
Purchased fuel
2025$—$176$198$49$—$—$423
2024—12310737——267
Operating and maintenance
2025$645$507$443$586$904$(417)$2,668
2024663444392506874(398)2,481
Operating and maintenance from affiliates
2025$200$124$125$103$22$(574)$—
202420411912210119(565)—
Depreciation and amortization
2025$767$221$318$467$32$—$1,805
202473721031248133—1,773

Combined Notes to Consolidated Financial Statements — (Continued)

(Dollars in millions, except per share data, unless otherwise noted)

Note 4 — Segment Information

Taxes other than income taxes
2025$196$115$181$276$20$—$788
202418810316925417—731
(Gain) on sale of assets
2025$—$—$—$(1)$—$—$(1)
2024(5)(4)————(9)
Interest expense, net(c)
2025$253$117$120$201$337$—$1,028
2024239106103183310(3)938
Interest expense to affiliates, net(c)
2025$7$7$—$2$—$(4)$12
202476——(2)112
Other, net
2025$(53)$(18)$(20)$(35)$(19)$28$(117)
2024(41)(18)(16)(57)(26)19(139)
Income taxes
2025$117$17$85$99$(78)$—$240
202449132886(67)—109
Net income (loss) attributable to common shareholders
2025$530$402$315$337$(284)$—$1,300
2024463239308326(230)—1,106
Supplemental segment information
Intersegment revenues(d)
2025$17$6$4$5$929$(961)$—
20244454924(941)—
Capital expenditures
2025$1,189$832$804$1,108$26$—$3,959
20241,11174366890341—3,466
Total assets
June 30, 2025$46,299$18,230$16,044$28,696$5,725$(3,847)$111,147
December 31, 202444,75017,12315,54228,2976,012(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 14 — 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 15 — Related Party Transactions for additional information on intersegment revenues.

PHI:

PepcoDPLACEOther**(a)**Intersegment EliminationsPHI
Operating revenues**(b)****:**
2025
Electric revenues$1,635$849$757$—$(9)$3,232
Natural gas revenues—120———120
Shared service and other revenues———217(212)5

Combined Notes to Consolidated Financial Statements — (Continued)

(Dollars in millions, except per share data, unless otherwise noted)

Note 4 — Segment Information

Total operating revenues$1,635$969$757$217$(221)$3,357
2024
Electric revenues$1,459$780$740$—$(6)$2,973
Natural gas revenues—100———100
Shared service and other revenues———224(220)4
Total operating revenues$1,459$880$740$224$(226)$3,077
Less:
Purchased power
2025$574$370$329$—$—$1,273
20245143333121—1,160
Purchased fuel
2025$—$49$—$—$—$49
2024—37———37
Operating and maintenance
2025$187$110$106$183$—$586
202412310197185—506
Operating and maintenance from affiliates
2025$126$91$79$28$(221)$103
2024129918127(227)101
Depreciation and amortization
2025$212$126$127$2$—$467
20242051221468—481
Taxes other than income taxes
2025$222$41$5$8$—$276
20242033957—254
(Gain) on sale of assets
2025$(1)$—$—$—$—$(1)
2024——————
Interest expense, net(c)
2025$106$50$41$4$—$201
202492463951183
Interest expense to affiliates, net(c)
2025$—$—$—$2$—$2
2024———1(1)—
Other, net
2025$(20)$(8)$(6)$(1)$—$(35)
2024(32)(15)(8)(3)1(57)
Income taxes
2025$48$32$20$(1)$—$99
20244225181—86
Net income (loss) attributable to common shareholders
2025$181$108$56$(8)$—$337
202418310150(8)—326
Supplemental segment information
Intersegment revenues(d)
2025$4$4$1$217$(221)$5
2024331224(227)4
Capital expenditures

Combined Notes to Consolidated Financial Statements — (Continued)

(Dollars in millions, except per share data, unless otherwise noted)

Note 4 — Segment Information

2025$469$277$196$166$—$1,108
20244542681801—903
Total assets
June 30, 2025$12,149$6,483$5,495$4,610$(41)$28,696
December 31, 202412,0006,4215,3494,567(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 14 — 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)Includes intersegment revenues with ComEd, PECO, and BGE, which are eliminated at Exelon.

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.

Six Months Ended June 30, 2025
Revenues from contracts with customersComEdPECOBGEPHIPepcoDPLACE
Electric revenues
Residential$2,087$1,186$1,145$1,698$772$508$418
Small commercial & industrial1,15331719933899128111
Large commercial & industrial4721592847385816097
Public authorities & electric railroads2918173920910
Other(a)461153230454176148134
Total electric revenues(b)$4,202$1,833$1,875$3,267$1,648$853$770
Natural gas revenues
Residential$—$346$486$73$—$73$—
Small commercial & industrial—1178628—28—
Large commercial & industrial——1424—4—
Transportation—21—9—9—
Other(c)—12316—6—
Total natural gas revenues(d)$—$496$745$120$—$120$—
Total revenues from contracts with customers$4,202$2,329$2,620$3,387$1,648$973$770
Other revenues
Revenues from alternative revenue programs$(319)$(8)$(43)$(32)$(14)$(5)$(13)
Other electric revenues(e)18115211—
Other natural gas revenues(e)—11————
Total other revenues$(301)$4$(37)$(30)$(13)$(4)$(13)
Total revenues for reportable segments$3,901$2,333$2,583$3,357$1,635$969$757

Combined Notes to Consolidated Financial Statements — (Continued)

(Dollars in millions, except per share data, unless otherwise noted)

Note 4 — Segment Information

Six Months Ended June 30, 2024
Revenues from contracts with customersComEdPECOBGEPHIPepcoDPLACE
Electric revenues
Residential$1,900$1,042$999$1,521$659$458$404
Small commercial & industrial1,15425417831689122105
Large commercial & industrial5891182716695136096
Public authorities & electric railroads3214153618810
Other(a)523147194396138126134
Total electric revenues(b)$4,198$1,575$1,657$2,938$1,417$774$749
Natural gas revenues
Residential$—$256$360$61$—$61$—
Small commercial & industrial—896524—24—
Large commercial & industrial——1123—3—
Transportation—13—9—9—
Other(c)—983—3—
Total natural gas revenues(d)$—$367$545$100$—$100$—
Total revenues from contracts with customers$4,198$1,942$2,202$3,038$1,417$874$749
Other revenues
Revenues from alternative revenue programs$(24)$(2)$19$32$37$4$(9)
Other electric revenues(e)—43752—
Other natural gas revenues(e)—11————
Total other revenues$(24)$3$23$39$42$6$(9)
Total revenues for reportable segments$4,174$1,945$2,225$3,077$1,459$880$740

(a)Includes transmission revenue from PJM, wholesale electric revenue, and mutual assistance revenue.

(b)Includes operating revenues from affiliates in 2025 and 2024 respectively of:

  • $17 million, $4 million at ComEd

  • $5 million, $3 million at PECO

  • $3 million, $4 million at BGE

  • $5 million, $4 million at PHI

  • $4 million, $3 million at Pepco

  • $4 million, $3 million at DPL

  • $1 million, $1 million at ACE

(c)Includes revenues from off-system natural gas sales.

(d)Includes operating revenues from affiliates in 2025 and 2024 respectively of:

  • $1 million, $1 million at PECO

  • $1 million, $1 million at BGE

(e)Includes late payment charge revenues.

Combined Notes to Consolidated Financial Statements — (Continued)

(Dollars in millions, except per share data, unless otherwise noted)

Note 5 — Accounts Receivable

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.

Three Months Ended June 30, 2025
ExelonComEdPECOBGEPHIPepcoDPLACE
Balance at March 31, 2025$486$125$160$72$129$69$23$37
Plus: Current period provision (benefit) for expected credit losses(a)(b)9(4)5357—(2)
Less: Write-offs, net of recoveries(c)30(1)11911722
Balance at June 30, 2025$465$122$154$66$123$69$21$33
Three Months Ended June 30, 2024
ExelonComEdPECOBGEPHIPepcoDPLACE
Balance at March 31, 2024$346$82$107$52$105$52$17$36
Plus: Current period provision (benefit) for expected credit losses553811(1)7511
Less: Write-offs, net of recoveries298669423
Balance at June 30, 2024$372$112$112$45$103$53$16$34
Six Months Ended June 30, 2025
ExelonComEdPECOBGEPHIPepcoDPLACE
Balance at December 31, 2024$406$109$133$56$108$59$17$32
Plus: Current period provision for expected credit losses(a)(d)(e)1422946264124107
Less: Write-offs(f), net of recoveries(c)83162516261466
Balance at June 30, 2025$465$122$154$66$123$69$21$33
Six Months Ended June 30, 2024
ExelonComEdPECOBGEPHIPepcoDPLACE
Balance at December 31, 2023$317$69$95$46$107$52$19$36
Plus: Current period provision for expected credit losses135603414271845
Less: Write-offs, net of recoveries80171715311777
Balance at June 30, 2024$372$112$112$45$103$53$16$34

(a)For ComEd, the decrease is primarily attributable to favorable customer payment behavior.

(b)For PECO and ACE, the decrease is primarily a result of decreased receivable balances.

(c)Recoveries were not material to the Registrants.

(d)For PECO, BGE, Pepco, and DPL, the increase is primarily a result of increased receivable balances.

(e)For ACE, the increase is primarily attributable to unfavorable customer payment behavior.

(f)For PECO, the increase is primarily a result of increased terminations.

Combined Notes to Consolidated Financial Statements — (Continued)

(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.

Three Months Ended June 30, 2025
ExelonComEdPECOBGEPHIPepcoDPLACE
Balance at March 31, 2025$113$34$22$6$51$27$9$15
Plus: Current period (benefit) provision for expected credit losses(a)(b)(c)(7)(3)(2)(3)11——
Less: Write-offs, net of recoveries(d)(1)—1(2)————
Balance at June 30, 2025$107$31$19$5$52$28$9$15
Three Months Ended June 30, 2024
ExelonComEdPECOBGEPHIPepcoDPLACE
Balance at March 31, 2024$96$19$13$7$57$35$8$14
Plus: Current period provision (benefit) for expected credit losses16119(1)(3)(1)(1)(1)
Less: Write-offs, net of recoveries4121————
Balance at June 30, 2024$108$29$20$5$54$34$7$13
Six Months Ended June 30, 2025
ExelonComEdPECOBGEPHIPepcoDPLACE
Balance at December 31, 2024$107$34$18$6$49$27$9$13
Plus: Current period provision (benefit) for expected credit losses(a)(b)(c)(e)8(1)7(2)41—3
Less: Write-offs, net of recoveries(d)826(1)1——1
Balance at June 30, 2025$107$31$19$5$52$28$9$15
Six Months Ended June 30, 2024
ExelonComEdPECOBGEPHIPepcoDPLACE
Balance at December 31, 2023$82$17$8$7$50$28$8$14
Plus: Current period provision (benefit) for expected credit losses361415166(1)1
Less: Write-offs, net of recoveries102332——2
Balance at June 30, 2024$108$29$20$5$54$34$7$13

(a)For ComEd, the decrease is primarily attributable to favorable payment behavior.

(b)For PECO, the decrease is primarily a result of decreased aging of receivables.

(c)For DPL and ACE, the increase is primarily a result of increased aging of receivables.

(d)Recoveries were not material to the Registrants.

(e)For Pepco, the decrease is primarily a result of changes in customer risk profile.

Combined Notes to Consolidated Financial Statements — (Continued)

(Dollars in millions, except per share data, unless otherwise noted)

Note 5 — Accounts Receivable

Unbilled Customer Revenue

The following table provides additional information about unbilled customer revenues recorded in the Registrants' Consolidated Balance Sheets as of June 30, 2025 and December 31, 2024.

Unbilled customer revenues**(a)**
ExelonComEdPECOBGEPHIPepcoDPLACE
June 30, 2025$1,256$523$245$191$297$147$63$87
December 31, 20241,1143352542572681217671

(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 six months ended June 30, 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
ExelonComEdPECOBGEPHIPepcoDPLACE
Six months ended June 30, 2025$2,054$464$598$375$617$383$126$108
Six months ended June 30, 20241,961450527393591375115101

Combined Notes to Consolidated Financial Statements — (Continued)

(Dollars in millions, except per share data, unless otherwise noted)

Note 6 — Income Taxes

6. Income Taxes (All Registrants)

Rate Reconciliation

The effective income tax rate from continuing operations varies from the U.S. federal statutory rate principally due to the following:

Three Months Ended June 30, 2025**(a)**
ExelonComEd**(b)**PECO**(c)**BGEPHIPepcoDPLACE
U.S. Federal statutory rate21.0%21.0%21.0%21.0%21.0%21.0%21.0%21.0%
Increase (decrease) due to:
State income taxes, net of federal income tax benefit6.57.6(1.2)6.27.16.36.47.1
Plant basis differences(5.4)(0.9)(16.1)(1.5)(0.6)(0.9)(0.6)—
Excess deferred tax amortization(6.5)(8.6)(1.5)(4.1)(4.4)(5.5)(4.5)(1.9)
Amortization of investment tax credit, including deferred taxes on basis difference—(0.1)————(0.1)(0.1)
Tax credits(0.4)(0.6)—(0.4)(0.3)(0.4)(0.3)(0.3)
Other—0.20.70.2(0.1)0.30.11.5
Effective income tax rate15.2%18.6%2.9%21.4%22.7%20.8%22.0%27.3%
Three Months Ended June 30, 2024**(a)**
ExelonComEd**(b)**PECO**(c)**BGE**(d)**PHIPepcoDPLACE
U.S. Federal statutory rate21.0%21.0%21.0%21.0%21.0%21.0%21.0%21.0%
Increase (decrease) due to:
State income taxes, net of federal income tax benefit5.07.8(1.3)6.46.66.16.27.6
Plant basis differences(3.9)(0.8)(13.0)(1.8)(0.9)(1.5)(0.9)0.2
Excess deferred tax amortization(13.2)(17.4)(2.3)(17.5)(3.8)(4.8)(6.6)(1.6)
Amortization of investment tax credit, including deferred taxes on basis difference(0.1)(0.1)——(0.1)—(0.1)(0.1)
Tax credits(0.5)(0.5)—(0.5)(0.4)(0.4)(0.3)(0.2)
Other1.00.3(1.2)0.70.10.2(0.3)0.7
Effective income tax rate9.3%10.3%3.2%8.3%22.5%20.6%19.0%27.6%

(a)Positive percentages represent income tax expense. Negative percentages represent income tax benefit.

(b)For ComEd, the lower effective tax rate is primarily due to CEJA which resulted in the acceleration of certain income tax benefits.

(c)For PECO, the lower effective tax rate is primarily related to plant basis differences attributable to tax repair deductions.

(d)For BGE, the lower effective tax rate is primarily due to the Maryland multi-year plan which resulted in the acceleration of certain income tax benefits.

Combined Notes to Consolidated Financial Statements — (Continued)

(Dollars in millions, except per share data, unless otherwise noted)

Note 6 — Income Taxes

Six Months Ended June 30, 2025**(a)**
ExelonComEd**(b)**PECO**(c)**BGEPHIPepcoDPLACE
U.S. Federal statutory rate21.0%21.0%21.0%21.0%21.0%21.0%21.0%21.0%
Increase (decrease) due to:
State income taxes, net of federal income tax benefit5.57.6(2.8)6.26.76.46.47.1
Plant basis differences(4.3)(0.9)(12.8)(1.5)(0.7)(1.0)(0.5)(0.2)
Excess deferred tax amortization(6.5)(9.0)(1.5)(4.1)(4.1)(5.3)(3.7)(1.6)
Amortization of investment tax credit, including deferred taxes on basis difference—(0.1)————(0.1)(0.1)
Tax credits(0.5)(0.7)—(0.3)(0.3)(0.3)(0.3)(0.3)
Other0.40.20.2—0.10.20.10.4
Effective income tax rate15.6%18.1%4.1%21.3%22.7%21.0%22.9%26.3%
Six Months Ended June 30, 2024**(a)**
ExelonComEd**(b)**PECO**(c)**BGE**(d)**PHIPepcoDPLACE
U.S. Federal statutory rate21.0%21.0%21.0%21.0%21.0%21.0%21.0%21.0%
Increase (decrease) due to:
State income taxes, net of federal income tax benefit5.87.8(0.9)6.36.56.16.27.4
Plant basis differences(3.9)(0.8)(12.5)(1.3)(0.9)(1.4)(1.0)0.1
Excess deferred tax amortization(14.1)(18.0)(2.3)(17.5)(5.3)(6.8)(5.8)(1.5)
Amortization of investment tax credit, including deferred taxes on basis difference(0.1)(0.1)——(0.1)—(0.1)(0.1)
Tax credits(0.5)(0.5)—(0.4)(0.4)(0.4)(0.3)(0.3)
Other0.80.2(0.1)0.20.10.2(0.2)(0.1)
Effective income tax rate9.0%9.6%5.2%8.3%20.9%18.7%19.8%26.5%

(a)Positive percentages represent income tax expense. Negative percentages represent income tax benefit.

(b)For ComEd, the lower effective tax rate is primarily due to CEJA which resulted in the acceleration of certain income tax benefits.

(c)For PECO, the lower effective tax rate is primarily related to plant basis differences attributable to tax repair deductions.

(d)For BGE, the lower effective tax rate is primarily due to the Maryland multi-year plan which resulted in the acceleration of certain income tax benefits.

Unrecognized Tax Benefits

Exelon, PHI and DPL have the following unrecognized tax benefits at June 30, 2025 and December 31, 2024. ComEd's, PECO's, BGE's, Pepco's, and ACE's amounts are not material.

Exelon**(a)**PHIDPL
June 30, 2025$101$52$16
December 31, 2024964812

(a)At June 30, 2025 and December 31, 2024, Exelon's unrecognized tax benefits is inclusive of $31 million related to Constellation's share of unrecognized tax benefits for periods prior to the separation. Exelon reflected an offsetting receivable of $31 million in Other deferred debits and other assets in the Consolidated Balance Sheet for these amounts.

Other Tax Matters

One Big Beautiful Bill Act (All Registrants)

Combined Notes to Consolidated Financial Statements — (Continued)

(Dollars in millions, except per share data, unless otherwise noted)

Note 6 — Income Taxes

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 for 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.

Corporate Alternative Minimum Tax (All Registrants)

On August 16, 2022, the IRA was signed into law and implements a new corporate alternative minimum tax (CAMT) that imposes a 15.0% tax on modified GAAP net income. 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 statute, 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.

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 Utility 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.

Tax Matters Agreement (Exelon)

In connection with the separation, Exelon entered into a TMA with Constellation. 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. At June 30, 2025, there is no balance due to or from Constellation.

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. At June 30, 2025, there is no balance due to or from Constellation.

Tax Attributes. At the date of separation certain tax attributes, primarily pre-closing tax credit carryforwards, that were generated by Constellation 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

Combined Notes to Consolidated Financial Statements — (Continued)

(Dollars in millions, except per share data, unless otherwise noted)

Note 6 — Income Taxes

remitted $127 million of payments to Constellation for the utilization of pre-closing tax credit carryforwards. At June 30, 2025, Exelon recorded a payable of $174 million and $38 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.

7. Retirement Benefits (All Registrants)

Defined Benefit Pension and OPEB

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%.

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.

A portion of the net periodic benefit cost for all plans is capitalized within the Consolidated Balance Sheets. The following table presents the components of Exelon's net periodic benefit costs, prior to capitalization, for the three and six months ended June 30, 2025 and 2024.

Pension BenefitsOPEB
Three Months Ended June 30,Three Months Ended June 30,
2025202420252024
Components of net periodic benefit cost
Service cost$39$40$6$7
Interest cost1471412524
Expected return on assets(178)(184)(21)(21)
Amortization of:
Prior service credit——(2)(2)
Actuarial loss (gain)5354(1)—
Net periodic benefit cost$61$51$7$8
Pension BenefitsOPEB
Six Months Ended June 30,Six Months Ended June 30,
2025202420252024
Components of net periodic benefit cost
Service cost$77$82$12$14
Interest cost2932825048
Expected return on assets(356)(368)(42)(42)
Amortization of:
Prior service cost (credit)11(4)(4)
Actuarial loss (gain)106107(1)—
Net periodic benefit cost$121$104$15$16

The amounts below represent the Registrants' allocated pension and OPEB costs. 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

Combined Notes to Consolidated Financial Statements — (Continued)

(Dollars in millions, except per share data, unless otherwise noted)

Note 7 — Retirement Benefits

included in Operating and maintenance expense and Property, plant, and equipment, net in their consolidated financial statements.

Three Months Ended June 30,Six Months Ended June 30,
Pension and OPEB Costs2025202420252024
Exelon$68$59$136$120
ComEd21194236
PECO1—3—
BGE14163031
PHI24234946
Pepco1071816
DPL4387
ACE3467

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 three and six months ended June 30, 2025 and 2024.

Three Months Ended June 30,Six Months Ended June 30,
Savings Plan Employer Contributions2025202420252024
Exelon$30$29$56$51
ComEd12102220
PECO4588
BGE3366
PHI56108
Pepco2132
DPL1122
ACE—111

8. 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

Combined Notes to Consolidated Financial Statements — (Continued)

(Dollars in millions, except per share data, unless otherwise noted)

Note 8 — Derivative Financial Instruments

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 regulatory-approved recovery mechanisms. The following table provides a summary of the Utility Registrants’ primary derivative hedging instruments, listed by commodity and accounting treatment.

RegistrantCommodityAccounting TreatmentHedging Instrument
ComEdElectricityNPNSFixed price contracts based on all requirements in the IPA procurement plans.
ElectricityChanges 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.
PECOElectricityNPNSFixed price contracts for default supply requirements through full requirements contracts.
GasNPNSFixed price contracts to cover about 10% of planned natural gas purchases in support of projected firm sales.
BGEElectricityNPNSFixed price contracts for all SOS requirements through full requirements contracts.
GasNPNSFixed price purchases associated with forecasted gas supply requirements.
PepcoElectricityNPNSFixed price contracts for all SOS requirements through full requirements contracts.
DPLElectricityNPNSFixed price contracts for all SOS requirements through full requirements contracts.
GasNPNSFixed and index priced contracts through full requirements contracts.
GasChanges 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.
ACEElectricityNPNSFixed price contracts for all BGS requirements through full requirements contracts.

(a)See Note 3 — Regulatory Matters of the 2024 Form 10-K for additional information.

(b)The fair value of the DPL economic hedge is not material at June 30, 2025 and December 31, 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 June 30, 2025 would result in an immaterial impact to Exelon's Consolidated Net Income.

Combined Notes to Consolidated Financial Statements — (Continued)

(Dollars in millions, except per share data, unless otherwise noted)

Note 8 — Derivative Financial Instruments

Below is a summary of the interest rate hedge balances at June 30, 2025 and December 31, 2024.

Derivatives Designated as Hedging Instruments
June 30, 2025December 31, 2024
Other current assets$—$14
Other deferred debits (noncurrent assets)212
Total derivative assets226
Mark-to-market derivative liabilities (current liabilities)—(1)
Mark-to-market derivative liabilities (noncurrent liabilities)(7)—
Total mark-to-market derivative liabilities(7)(1)
Total mark-to-market derivative net assets (liabilities)$(5)$25

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.

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 9 – 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 second quarter of 2025, Exelon Corporate entered into $30 million notional of 5-year maturity floating-to-fixed swaps and $30 million notional of 10-year maturity floating-to-fixed swaps, for a total notional of $60 million designated as cash flow hedges. The following table provides the notional amounts outstanding held by Exelon at June 30, 2025 and December 31, 2024.

June 30, 2025December 31, 2024
5-year maturity floating-to-fixed swaps$305$657
10-year maturity floating-to-fixed swaps305658
Total$610$1,315

The related AOCI derivative loss for the three and six months ended June 30, 2025 was $4 million and $13 million (net of tax), respectively. The related AOCI derivative gain for the three and six months ended June 30, 2024 was immaterial. See Note 13 – 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 June 30, 2025. Cash collateral held by ComEd, PECO, BGE, Pepco, DPL, and ACE must be deposited in an unaffiliated major U.S. commercial bank 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, as of June 30, 2025 and December 31, 2024:

Combined Notes to Consolidated Financial Statements — (Continued)

(Dollars in millions, except per share data, unless otherwise noted)

Note 8 — Derivative Financial Instruments

June 30, 2025December 31, 2024
Exelon$196$181
ComEd173176
PECO(a)6—
BGE51
PHI124
Pepco31
DPL52
ACE(a)5—

(a)PECO and ACE had less than one million in cash collateral held from external parties at 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. As of June 30, 2025, 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 June 30, 2025, they could have been required to post collateral to their counterparties of $35 million, $48 million, and $14 million, respectively.

9. 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 June 30, 2025 and December 31, 2024.

Outstanding Commercial Paper atAverage Interest Rate on Commercial Paper Borrowings at
Commercial Paper IssuerJune 30, 2025December 31, 2024June 30, 2025December 31, 2024
Exelon(a)$609$1,3594.58%4.66%
ComEd$—$36—%4.55%
PECO$203$1924.55%4.65%
BGE$—$175—%4.61%
PHI(b)$230$5304.59%4.70%
Pepco$149$2004.59%4.69%
DPL$2$1444.53%4.74%
ACE$79$1864.58%4.67%

(a)Exelon Corporate had $176 million outstanding commercial paper borrowings at June 30, 2025 and $426 million in outstanding commercial paper borrowings at December 31, 2024.

(b)Represents the consolidated amounts of Pepco, DPL, and ACE.

Combined Notes to Consolidated Financial Statements — (Continued)

(Dollars in millions, except per share data, unless otherwise noted)

Note 9 — 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:

BorrowerAggregate Bank CommitmentInterest Rate
Exelon Corporate$900SOFR plus 1.075%
ComEd$1,000SOFR plus 1.000%
PECO$600SOFR plus 0.900%
BGE$600SOFR plus 0.900%
Pepco$300SOFR plus 1.000%
DPL$300SOFR plus 1.000%
ACE$300SOFR plus 1.000%

Exelon Corporate and the Utility Registrants had no outstanding amounts on the revolving credit facilities as of June 30, 2025.

The Utility Registrants have credit facility agreements, arranged at community banks, which may be utilized to issue letters of credit. The facility agreements have aggregate commitments of $40 million, $40 million, $15 million, $15 million, $15 million, and $15 million, at ComEd, PECO, BGE, Pepco, DPL, and ACE, respectively. These facilities expire on October 3, 2025.

See Note 16 — Debt and Credit Agreements of the 2024 Form 10-K for additional information on the Registrants' credit facilities.

Short-Term Loan Agreements

On March 14, 2024, Exelon Corporate amended and bifurcated the $500 million term loan agreement into two tranches of $350 million and $150 million. The loan agreements were renewed in the first quarter of 2025, extending the expiration date to March 13, 2026. Pursuant to the loan agreements, loans made thereunder bear interest at a variable rate equal to SOFR plus 1.00% and all indebtedness thereunder is unsecured. The loan agreements are reflected in Exelon's Consolidated Balance Sheets within Short-term borrowings.

Combined Notes to Consolidated Financial Statements — (Continued)

(Dollars in millions, except per share data, unless otherwise noted)

Note 9 — Debt and Credit Agreements

Long-Term Debt

Issuance of Long-Term Debt

During the six months ended June 30, 2025, the following long-term debt was issued:

CompanyTypeInterest RateMaturityAmountUse of Proceeds
ExelonJunior Subordinated Notes(a)6.50%March 15, 2055$1,000Repay outstanding commercial paper obligations, and for general corporate purposes.
ExelonNotes5.125%March 15, 2031$500Repay outstanding commercial paper obligations, and for general corporate purposes.
ExelonNotes5.875%March 15, 2055$500Repay outstanding commercial paper obligations, and for general corporate purposes.
ComEdFirst Mortgage Bonds5.95%June 1, 2055$725Repay outstanding commercial paper obligations, and for general corporate purposes.
BGENotes5.45%June 1, 2035$650Repay outstanding commercial paper obligations, and for general corporate purposes.
Pepco(b)First Mortgage Bonds5.48%March 26, 2040$200Repay existing indebtedness and for general corporate purposes.
DPLFirst Mortgage Bonds5.28%March 26, 2035$125Repay existing indebtedness and for general corporate purposes.
ACE(c)First Mortgage Bonds5.28%March 26, 2035$100Repay existing indebtedness and for general corporate purposes.

(a)The Junior Subordinated Notes bear interest at 6.50% per annum, commencing February 19, 2025 to, but excluding March 15, 2035. Thereafter, the interest rate resets every five years on March 15 and will be set at a rate per annum equal to the Five-year U.S. Treasury Rate plus a spread of 1.975%.

(b)On March 26, 2025, Pepco entered into a purchase agreement of First Mortgage Bonds of $75 million at 5.78% due on September 17, 2055. The closing date of the issuance is expected to occur in September 2025.

(c)On March 26, 2025, ACE entered into a purchase agreement of First Mortgage Bonds of $75 million and $75 million at 5.54% and 5.81% due on November 19, 2040 and November 19, 2055, respectively. The closing date of the issuance is expected to occur in November 2025.

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 June 30, 2025, the Registrants are in compliance with debt covenants.

Combined Notes to Consolidated Financial Statements — (Continued)

(Dollars in millions, except per share data, unless otherwise noted)

Note 10 — Fair Value of Financial Assets and Liabilities

10. 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.

Exelon’s valuation techniques used to measure the fair value of the assets and liabilities shown in the tables below are in accordance with the policies discussed in Note 17 — Fair Value of Financial Assets and Liabilities of the 2024 Form 10-K.

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) as of June 30, 2025 and December 31, 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.

June 30, 2025December 31, 2024
Carrying AmountFair ValueCarrying AmountFair Value
Level 1Level 2Level 3TotalLevel 1Level 2Level 3Total
Long-Term Debt, including amounts due within one year**(a)**
Exelon$47,345$—$38,504$4,211$42,715$44,400$—$35,337$3,720$39,057
ComEd12,750—11,157—11,15712,030—10,260—10,260
PECO5,705—4,852—4,8525,704—4,816—4,816
BGE6,040—5,435—5,4355,395—4,702—4,702
PHI9,535—4,1824,2118,3939,124—4,0933,7207,813
Pepco4,558—2,5171,7704,2874,362—2,4751,5444,019
DPL2,346—6411,3992,0402,220—6231,2501,873
ACE2,035—8091,0421,8511,933—7879251,712
Long-Term Debt to Financing Trusts
Exelon$390$—$—$397$397$390$—$—$396$396
ComEd206——210210206——208208
PECO184——186186184——188188

(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 16 — Debt and Credit Agreements of the 2024 Form 10-K for unamortized debt issuance costs, unamortized debt discount and premium, net, and purchase accounting fair value adjustments and Note 10 — Leases of the 2024 Form 10-K for finance lease liabilities.

Combined Notes to Consolidated Financial Statements — (Continued)

(Dollars in millions, except per share data, unless otherwise noted)

Note 10 — 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 June 30, 2025 and December 31, 2024. Exelon and the Utility Registrants have immaterial and no financial assets or liabilities measured using the NAV practical expedient, respectively:

Exelon

At June 30, 2025At December 31, 2024
Level 1Level 2Level 3TotalLevel 1Level 2Level 3Total
Assets
Cash equivalents(a)$926$—$—$926$544$—$—$544
Rabbi trust investments
Cash equivalents97——9794——94
Mutual funds64——6465——65
Fixed income—6—6—6—6
Life insurance contracts—712394—732295
Rabbi trust investments subtotal16177232611597922260
Interest rate derivative assets
Derivatives designated as hedging instruments—2—2—26—26
Economic hedges————————
Interest rate derivative assets subtotal—2—2—26—26
Total assets1,08779231,18970310522830
Liabilities
Commodity derivative liabilities——(135)(135)——(132)(132)
Interest rate derivative liabilities
Derivatives designated as hedging instruments—(7)—(7)—(1)—(1)
Economic hedges————————
Interest rate derivative liabilities subtotal—(7)—(7)—(1)—(1)
Deferred compensation obligation—(64)—(64)—(74)—(74)
Total liabilities—(71)(135)(206)—(75)(132)(207)
Total net assets (liabilities)$1,087$8$(112)$983$703$30$(110)$623

(a)Exelon excludes cash of $150 million and $219 million at June 30, 2025 and December 31, 2024, respectively, and restricted cash of $175 million and $176 million at June 30, 2025 and December 31, 2024, respectively, and includes long-term restricted cash of $49 million and $41 million at June 30, 2025 and December 31, 2024, respectively, which is reported in Other deferred debits and other assets in the Consolidated Balance Sheets.

Combined Notes to Consolidated Financial Statements — (Continued)

(Dollars in millions, except per share data, unless otherwise noted)

Note 10 — Fair Value of Financial Assets and Liabilities

ComEd, PECO, and BGE

ComEdPECOBGE
At June 30, 2025Level 1Level 2Level 3TotalLevel 1Level 2Level 3TotalLevel 1Level 2Level 3Total
Assets
Cash equivalents(a)$613$—$—$613$2$—$—$2$232$—$—$232
Rabbi trust investments
Mutual funds————11——119——9
Life insurance contracts—————22—22————
Rabbi trust investments subtotal————1122—339——9
Total assets613——6131322—35241——241
Liabilities
Commodity derivative liabilities(b)——(135)(135)————————
Deferred compensation obligation—(8)—(8)—(7)—(7)—(4)—(4)
Total liabilities—(8)(135)(143)—(7)—(7)—(4)—(4)
Total net assets (liabilities)$613$(8)$(135)$470$13$15$—$28$241$(4)$—$237
ComEdPECOBGE
At December 31, 2024Level 1Level 2Level 3TotalLevel 1Level 2Level 3TotalLevel 1Level 2Level 3Total
Assets
Cash equivalents(a)$390$—$—$390$29$—$—$29$1$—$—$1
Rabbi trust investments
Mutual funds————12——1210——10
Life insurance contracts—————22—22————
Rabbi trust investments subtotal————1222—3410——10
Total assets390——3904122—6311——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 $61 million and $66 million at June 30, 2025 and December 31, 2024, respectively, and restricted cash of $173 million and $176 million at June 30, 2025 and December 31, 2024, respectively. Additionally, ComEd includes long-term restricted cash of $49 million and $41 million at June 30, 2025 and December 31, 2024, respectively, which is reported in Other deferred debits and other assets in the Consolidated Balance Sheets. PECO

Combined Notes to Consolidated Financial Statements — (Continued)

(Dollars in millions, except per share data, unless otherwise noted)

Note 10 — Fair Value of Financial Assets and Liabilities

excludes cash of $23 million and $19 million at June 30, 2025 and December 31, 2024, respectively. BGE excludes cash of $9 million and $33 million at June 30, 2025 and December 31, 2024, respectively.

(b)The Level 3 balance consists of the current and noncurrent liability of $24 million and $111 million, respectively, at June 30, 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 — (Continued)

(Dollars in millions, except per share data, unless otherwise noted)

Note 10 — Fair Value of Financial Assets and Liabilities

PHI, Pepco, DPL, and ACE

At June 30, 2025At December 31, 2024
PHILevel 1Level 2Level 3TotalLevel 1Level 2Level 3Total
Assets
Cash equivalents(a)$47$—$—$47$93$—$—$93
Rabbi trust investments
Cash equivalents95——9592——92
Mutual funds9——99——9
Fixed income—6—6—6—6
Life insurance contracts—212243—232144
Rabbi trust investments subtotal10427221531012921151
Total assets15127222001942921244
Liabilities
Deferred compensation obligation—(10)—(10)—(12)—(12)
Total liabilities—(10)—(10)—(12)—(12)
Total net assets$151$17$22$190$194$17$21$232
PepcoDPLACE
At June 30, 2025Level 1Level 2Level 3TotalLevel 1Level 2Level 3TotalLevel 1Level 2Level 3Total
Assets
Cash equivalents(a)$23$—$—$23$6$—$—$6$—$—$—$—
Rabbi trust investments
Cash equivalents94——94————————
Life insurance contracts—212243————————
Rabbi trust investments subtotal942122137————————
Total assets11721221606——6————
Liabilities
Deferred compensation obligation—(1)—(1)————————
Total liabilities—(1)—(1)————————
Total net assets$117$20$22$159$6$—$—$6$—$—$—$—

Combined Notes to Consolidated Financial Statements — (Continued)

(Dollars in millions, except per share data, unless otherwise noted)

Note 10 — Fair Value of Financial Assets and Liabilities

PepcoDPLACE
At December 31, 2024Level 1Level 2Level 3TotalLevel 1Level 2Level 3TotalLevel 1Level 2Level 3Total
Assets
Cash equivalents(a)$21$—$—$21$3$—$—$3$—$—$—$—
Rabbi trust investments
Cash equivalents91——91————————
Life insurance contracts—232144————————
Rabbi trust investments subtotal912321135————————
Total assets11223211563——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 $48 million and $70 million at June 30, 2025 and December 31, 2024, respectively, and restricted cash of $2 million and zero at June 30, 2025 and December 31, 2024. Pepco excludes cash of $21 million and $30 million at June 30, 2025 and December 31, 2024, respectively. DPL excludes cash of $8 million and $20 million at June 30, 2025 and December 31, 2024, respectively. ACE excludes cash of $15 million and $14 million at June 30, 2025 and December 31, 2024, respectively and restricted cash of $2 million and zero at June 30, 2025 and December 31, 2024, respectively

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 three and six months ended June 30, 2025 and 2024:

ExelonComEdPHI and Pepco
Three Months Ended June 30, 2025TotalCommodity DerivativesLife Insurance Contracts
Balance at March 31, 2025$(129)$(151)$21
Total realized / unrealized gains (losses)
Included in net income(a)1—1
Included in regulatory assets/liabilities1616(b)—
Settlements———
Balance at June 30, 2025$(112)$(135)(c)$22
The amount of total gains included in income attributed to the change in unrealized gains related to assets and liabilities at June 30, 2025$1$—$1

Combined Notes to Consolidated Financial Statements — (Continued)

(Dollars in millions, except per share data, unless otherwise noted)

Note 10 — Fair Value of Financial Assets and Liabilities

ExelonComEdPHI and Pepco
Three Months Ended June 30, 2024TotalCommodity DerivativesLife Insurance Contracts
Balance at March 31, 2024$(65)$(108)$41
Total realized / unrealized gains (losses)
Included in net income(a)1—2
Included in regulatory assets/liabilities(31)(31)(b)—
Settlements(21)—(21)
Balance at June 30, 2024$(116)$(139)$22
The amount of total gains included in income attributed to the change in unrealized gains related to assets and liabilities at June 30, 2024$2$—$2
ExelonComEdPHI and Pepco
Six Months Ended June 30, 2025TotalCommodity DerivativesLife Insurance Contracts
Balance at December 31, 2024$(110)$(132)$21
Total realized / unrealized gains (losses)
Included in net income(a)1—1
Included in regulatory assets/liabilities(3)(3)(b)—
Settlements———
Balance at June 30, 2025$(112)$(135)(c)$22
The amount of total gains included in income attributed to the change in unrealized gains related to assets and liabilities at June 30, 2025$1$—$1
ExelonComEdPHI and Pepco
Six Months Ended June 30, 2024TotalCommodity DerivativesLife Insurance Contracts
Balance at December 31, 2023$(90)$(133)$41
Total realized / unrealized gains (losses)
Included in net income(a)1—2
Included in regulatory assets/liabilities(6)(6)(b)—
Settlements(21)—(21)
Balance at June 30, 2024$(116)$(139)$22
The amount of total gains included in income attributed to the change in unrealized gains related to assets and liabilities at June 30, 2024$2$—$2

(a)Classified in Operating and maintenance expense in the Consolidated Statements of Operations and Comprehensive Income.

(b)Includes $5 million of increases in fair value and an increase for realized gains due to settlements of $11 million recorded in Purchased power expense associated with floating-to-fixed energy swap contracts with unaffiliated suppliers for the three months ended June 30, 2025. Includes $43 million of decreases in fair value and an increase for realized gains due to settlements of $12 million recorded in Purchased power expense associated with floating-to-fixed energy swap contracts with unaffiliated suppliers for the three months ended June 30, 2024. Includes $17 million of decreases in fair value and an increase for realized gains due to settlements of $20 million recorded in Purchased power expense associated with floating-to-fixed energy swap contracts with unaffiliated suppliers for the six months ended June 30, 2025. Includes $30 million of decreases in fair value and an increase for realized gains due to settlements of $24 million recorded in Purchased power expense associated with floating-to-fixed energy swap contracts with unaffiliated suppliers for the six months ended June 30, 2024.

(c)The balance of the current and noncurrent asset was effectively zero as of June 30, 2025. The balance consists of a current and noncurrent liability of $24 million and $111 million, respectively, as of June 30, 2025.

Combined Notes to Consolidated Financial Statements — (Continued)

(Dollars in millions, except per share data, unless otherwise noted)

Note 10 — Fair Value of Financial Assets and Liabilities

Commodity Derivatives (Exelon and ComEd)

The table below discloses the significant unobservable inputs to the forward curve used to value mark-to-market derivatives.

Type of tradeFair Value at June 30, 2025Fair Value at December 31, 2024Valuation TechniqueUnobservable Input2025 Range & Arithmetic Average2024 Range & Arithmetic Average
Commodity derivatives$(135)$(132)Discounted Cash FlowForward power price(a)$28.24-$62.10$40.28$30.31-$59.88$42.08

(a)An increase to the forward power price would increase the fair value.

11. Commitments and Contingencies (All Registrants)

The following is an update to the current status of commitments and contingencies set forth in Note 18 — Commitments and Contingencies of the 2024 Form 10-K.

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 acquisition date and the total remaining obligations for Exelon, PHI, Pepco, DPL, and ACE at June 30, 2025:

DescriptionExelonPHIPepcoDPLACE
Total commitments$513$320$120$89$111
Remaining commitments(a)2422211—

(a)Remaining commitments extend through 2026 and include escrow funds, charitable contributions, and rate credits.

Combined Notes to Consolidated Financial Statements — (Continued)

(Dollars in millions, except per share data, unless otherwise noted)

Note 11 — Commitments and Contingencies

Commercial Commitments (All Registrants). The Registrants’ commercial commitments at June 30, 2025, representing commitments potentially triggered by future events were as follows:

Expiration within
Total202520262027202820292030 and beyond
Exelon
Letters of credit(a)$56$28$28$—$—$—$—
Surety bonds(b)27516233278——
Financing trust guarantees(c)378———78—300
Guaranteed lease residual values(d)24—34548
Total commercial commitments$733$190$64$6$161$4$308
ComEd
Letters of credit(a)$18$10$8$—$—$—$—
Surety bonds(b)373052———
Financing trust guarantees(c)200—————200
Total commercial commitments$255$40$13$2$—$—$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$14$13$—$—$—$—
Surety bonds(b)312————
Total commercial commitments$30$15$15$—$—$—$—
PHI
Letters of credit(a)$4$2$2$—$—$—$—
Surety bonds(b)1747719—78——
Guaranteed lease residual values(d)24—34548
Total commercial commitments$202$79$24$4$83$4$8
Pepco
Letters of credit(a)$2$2$—$—$—$—$—
Surety bonds(b)1627113—78——
Guaranteed lease residual values(d)8—11213
Total commercial commitments$172$73$14$1$80$1$3
DPL
Letters of credit(a)$1$—$1$—$—$—$—
Surety bonds(b)734————
Guaranteed lease residual values(d)9—12222
Total commercial commitments$17$3$6$2$2$2$2
ACE
Letters of credit(a)$1$—$1$—$—$—$—
Surety bonds(b)532————
Guaranteed lease residual values(d)7—11113
Total commercial commitments$13$3$4$1$1$1$3

Combined Notes to Consolidated Financial Statements — (Continued)

(Dollars in millions, except per share data, unless otherwise noted)

Note 11 — 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 9 years. The maximum potential obligation at the end of the minimum lease term would be $55 million guaranteed by Exelon and PHI, of which $17 million, $21 million, and $17 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 2031.

  • 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 2028.

  • 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 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.

Combined Notes to Consolidated Financial Statements — (Continued)

(Dollars in millions, except per share data, unless otherwise noted)

Note 11 — Commitments and Contingencies

At June 30, 2025 and December 31, 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:

June 30, 2025December 31, 2024
Total Environmental Investigation and Remediation LiabilitiesPortion of Total Related to MGP Investigation and RemediationTotal Environmental Investigation and Remediation LiabilitiesPortion of Total Related to MGP Investigation and Remediation
Exelon$382$317$403$322
ComEd280280285284
PECO29272928
BGE14101310
PHI58—75—
Pepco56—73—
DPL1—1—
ACE1—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 Generation 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 a proposed plan for the landside area, which was approved and issued by the DOEE for public comment on December 16, 2024. The landside area public comment period closed on April 18, 2025. Pepco will submit a matrix of proposed responses to the public comments and a proposed Record of Decision (ROD) to the DOEE for the landside area before August 18, 2025. Pepco also submitted a draft proposed plan to the DOEE for the waterside area on April 15, 2025. The DOEE will review Pepco’s draft and issue a final proposed plan for public comment. After the waterside area public comment period closes, 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 ROD(s) identifying the remedial actions determined to be necessary for the landside and waterside areas.

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/Generation to a non-utility subsidiary of Exelon which going forward will be responsible for those liabilities. 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.

Combined Notes to Consolidated Financial Statements — (Continued)

(Dollars in millions, except per share data, unless otherwise noted)

Note 11 — Commitments and Contingencies

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, 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.

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

Combined Notes to Consolidated Financial Statements — (Continued)

(Dollars in millions, except per share data, unless otherwise noted)

Note 11 — Commitments and Contingencies

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. Pepco submitted a vault system report and a revised report addressing the DOEE's comments in May 2025. 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

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,

Combined Notes to Consolidated Financial Statements — (Continued)

(Dollars in millions, except per share data, unless otherwise noted)

Note 11 — Commitments and Contingencies

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 renewed motion for preliminary approval.

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.

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 property, plant, and equipment 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.

12. Shareholders' Equity (Exelon)

At-the-Market Programs

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.

During the first quarter of 2025, Exelon issued approximately 4.0 million shares of Common stock at an average net price of $42.98 per share. The net proceeds from the issuance were $173 million, which were used for general corporate purposes.

In addition, in the first quarter of 2025, Exelon entered into forward sale agreements for 5.7 million shares of Common stock, at a weighted-average net forward price of $43.24 per share. The forward sale agreements require Exelon to, at its election prior to December 15, 2025, either (i) physically settle the transactions by issuing

Combined Notes to Consolidated Financial Statements — (Continued)

(Dollars in millions, except per share data, unless otherwise noted)

Note 12 — Shareholders' Equity

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.

In the second quarter of 2025, Exelon entered into forward sale agreements for 6.2 million shares, and 3.6 million shares of Common stock, at a weighted-average net forward price of $43.51, and $43.17 per share, respectively. The forward sale agreements require Exelon to, at its election prior to December 15, 2025 and November 16, 2026, respectively, 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.

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 six months ended June 30, 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, $2.1 billion of Common stock remained available for sale pursuant to the ATM program as of June 30, 2025.

Combined Notes to Consolidated Financial Statements — (Continued)

(Dollars in millions, except per share data, unless otherwise noted)

Note 13 — Changes in Accumulated Other Comprehensive Income

13. Changes in Accumulated Other Comprehensive Income (Loss) (Exelon)

The following table presents changes in Exelon's AOCI, net of tax, by component:

Three Months Ended June 30, 2025Cash Flow HedgesPension and Non-Pension Postretirement Benefit Plan Items**(a)**Total
Balance at March 31, 2025$37$(755)$(718)
OCI before reclassifications(4)1(3)
Amounts reclassified from AOCI(2)53
Net current-period OCI(6)6—
Balance at June 30, 2025$31$(749)$(718)
Three Months Ended June 30, 2024Cash Flow HedgesPension and Non-Pension Postretirement Benefit Plan Items**(a)**Total
Balance at March 31, 2024$30$(742)$(712)
OCI before reclassifications(2)(2)(4)
Amounts reclassified from AOCI(1)54
Net current-period OCI(3)3—
Balance at June 30, 2024$27$(739)$(712)
Six Months Ended June 30, 2025Cash Flow HedgesPension and Non-Pension Postretirement Benefit Plan Items**(a)**Total
Balance at December 31, 2024$45$(765)$(720)
OCI before reclassifications(11)5(6)
Amounts reclassified from AOCI(3)118
Net current-period OCI$(14)$16$2
Balance at June 30, 2025$31$(749)$(718)
Six Months Ended June 30, 2024Cash Flow HedgesPension and Non-Pension Postretirement Benefit Plan Items**(a)**Total
Balance at December 31, 2023$(3)$(723)$(726)
OCI before reclassifications32(26)6
Amounts reclassified from AOCI(2)108
Net current-period OCI$30$(16)$14
Balance at June 30, 2024$27$(739)$(712)

(a)This AOCI component is included in the computation of net periodic pension and OPEB cost. See Note 14 — Retirement Benefits and Note 7 — Retirement Benefits of the 2024 Form 10-K for additional information. See Exelon's Statements of Operations and Comprehensive Income for individual components of AOCI.

Combined Notes to Consolidated Financial Statements — (Continued)

(Dollars in millions, except per share data, unless otherwise noted)

Note 13 — Changes in Accumulated Other Comprehensive Income

The following table presents Income tax benefit (expense) allocated to each component of Exelon's Other comprehensive income (loss):

Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
Pension and non-pension postretirement benefit plans:
Actuarial losses reclassified to periodic benefit cost$(2)$(2)$(4)$(4)
Pension and non-pension postretirement benefit plans valuation adjustments——(2)8
Unrealized gains on cash flow hedges——2(10)

14. 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
ExelonComEdPECOBGEPHIPepcoDPLACE
Three Months Ended June 30, 2025
Utility taxes(a)$247$79$47$33$88$80$7$1
Property11184574027121
Payroll349558211
Three Months Ended June 30, 2024
Utility taxes(a)$226$73$42$31$80$72$6$—
Property107105533926121
Payroll339457211
Six Months Ended June 30, 2025
Utility taxes(a)$496$159$98$58$181$164$15$2
Property2221891148055241
Payroll671691015322
Six Months Ended June 30, 2024
Utility taxes(a)$447$148$83$54$162$146$14$2
Property2121891077853231
Payroll67189914422

(a)The Registrants' utility taxes represent 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.

Combined Notes to Consolidated Financial Statements — (Continued)

(Dollars in millions, except per share data, unless otherwise noted)

Note 14 — Supplemental Financial Information

Other, net
ExelonComEdPECOBGEPHIPepcoDPLACE
Three Months Ended June 30, 2025
AFUDC — Equity$43$14$10$9$10$8$1$1
Non-service net periodic benefit cost(13)———————
Three Months Ended June 30, 2024
AFUDC — Equity$38$9$8$6$15$12$3$—
Non-service net periodic benefit cost(11)———————
Six Months Ended June 30, 2025
AFUDC — Equity$81$26$17$18$20$15$3$2
Non-service net periodic benefit cost(26)———————
Six Months Ended June 30, 2024
AFUDC — Equity$78$19$16$13$30$23$6$1
Non-service net periodic benefit cost(17)———————

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
ExelonComEdPECOBGEPHIPepcoDPLACE
Six Months Ended June 30, 2025
Property, plant, and equipment(a)$1,506$608$219$249$402$177$113$111
Amortization of regulatory assets and liabilities, net(a)29615926965351316
Amortization of intangible assets, net(a)3———————
ARO accretion(b)1———————
Total depreciation, amortization and accretion$1,806$767$221$318$467$212$126$127
Six Months Ended June 30, 2024
Property, plant, and equipment(a)$1,436$573$203$247$383$164$107$105
Amortization of regulatory assets and liabilities, net(a)33316476597411541
Amortization of intangible assets, net(a)4———————
ARO accretion(b)1———1———
Total depreciation and amortization$1,774$737$210$312$481$205$122$146

(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.

Combined Notes to Consolidated Financial Statements — (Continued)

(Dollars in millions, except per share data, unless otherwise noted)

Note 14 — Supplemental Financial Information

Other non-cash operating activities
ExelonComEdPECOBGEPHIPepcoDPLACE
Six Months Ended June 30, 2025
Pension and OPEB costs$136$42$3$30$49$18$8$6
Allowance for credit losses13723501747191117
True-up adjustments to decoupling mechanisms and formula rates(a)397319843271458
Amortization of operating ROU asset16——49231
AFUDC — Equity(81)(26)(17)(18)(20)(15)(3)(2)
Six Months Ended June 30, 2024
Pension and OPEB costs$120$36$—$31$46$16$7$7
Allowance for credit losses9384711271637
True-up adjustments to decoupling mechanisms and formula rates(a)(15)242(19)(22)(37)411
Amortization of operating ROU asset19——313332
AFUDC — Equity(78)(19)(16)(13)(30)(23)(6)(1)

(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 rates. 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 3 — Regulatory Matters of the 2024 Form 10-K for additional information.

The following tables provide a reconciliation of cash, cash equivalents, and restricted cash reported within the Registrants’ Consolidated Balance Sheets that sum to the total of the same amounts in their Consolidated Statements of Cash Flows.

Combined Notes to Consolidated Financial Statements — (Continued)

(Dollars in millions, except per share data, unless otherwise noted)

Note 14 — Supplemental Financial Information

Cash, cash equivalents, and restricted cash
ExelonComEdPECOBGEPHIPepcoDPLACE
Balance at June 30, 2025
Cash and cash equivalents$724$387$25$236$67$22$9$15
Restricted cash and cash equivalents478411—5302252
Restricted cash included in Other deferred debits and other assets4949——————
Total cash, restricted cash, and cash equivalents$1,251$847$25$241$97$44$14$17
Balance at December 31, 2024
Cash and cash equivalents$357$105$48$33$139$30$21$14
Restricted cash and cash equivalents541486—124212—
Restricted cash included in Other deferred debits and other assets4141——————
Total cash, restricted cash, and cash equivalents$939$632$48$34$163$51$23$14
Balance at June 30, 2024
Cash and cash equivalents$934$326$19$428$119$19$50$15
Restricted cash and cash equivalents5304469—22211—
Restricted cash included in Other deferred debits and other assets7171——————
Total cash, restricted cash, and cash equivalents$1,535$843$28$428$141$40$51$15
Balance at December 31, 2023
Cash and cash equivalents$445$110$42$47$180$48$16$21
Restricted cash and cash equivalents482402912424——
Restricted cash included in Other deferred debits and other assets174174——————
Total cash, restricted cash, and cash equivalents$1,101$686$51$48$204$72$16$21

For additional information on restricted cash see Note 1 — Significant Accounting Policies of the 2024 Form 10-K.

Supplemental Balance Sheet Information

The following table provides additional information about material items recorded in the Registrants' Consolidated Balance Sheets.

Combined Notes to Consolidated Financial Statements — (Continued)

(Dollars in millions, except per share data, unless otherwise noted)

Note 14 — Supplemental Financial Information

Accrued expenses
ExelonComEdPECOBGEPHIPepcoDPLACE
Balance at June 30, 2025
Compensation-related accruals(a)$504$138$77$70$96$29$19$13
Taxes accrued19390429846499
Interest accrued530156605691481820
Balance at December 31, 2024
Compensation-related accruals(a)$679$197$87$88$132$38$26$18
Taxes accrued217961334110921111
Interest accrued468150605083441618

(a)Primarily includes accrued payroll, bonuses and other incentives, vacation, and benefits.

15. 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 affiliatesCapitalized costs
Three Months Ended June 30,Six Months Ended June 30,Three Months Ended June 30,Six Months Ended June 30,
20252024202520242025202420252024
Exelon
BSC$162$159$323$317
PHISCO29295358
ComEd
BSC$100$104$200$2046163124134
PECO
BSC616112011928295458
BGE
BSC636212512132256549
PHI
BSC49491009941428076
PHISCO————29295358
Pepco
BSC3232636317183435
PHISCO3233626612122324
DPL
BSC2020403912132425
PHISCO26265051981617
ACE
BSC161632329101815
PHISCO24254748891417

Combined Notes to Consolidated Financial Statements — (Continued)

(Dollars in millions, except per share data, unless otherwise noted)

Note 15 — Related Party Transactions

Current Receivables from/Payables to Affiliates

The following tables present current Receivables from affiliates and current Payables to affiliates:

June 30, 2025

Receivables from affiliates:
Payables to affiliates:ComEdPECOBGEPepcoDPLACEBSCPHISCOOtherTotal
ComEd$—$—$—$—$—$61$—$5$66
PECO$8————35—245
BGE—————35—136
PHI——————5—1116
Pepco—————1816—34
DPL—————1112124
ACE———1—911—21
Other4———1101—16
Total$12$—$—$1$1$10$175$39$20$258

December 31, 2024

Receivables from affiliates:
Payables to affiliates:ComEdPECOBGEPepcoDPLACEBSCPHISCOOtherTotal
ComEd$—$—$—$—$—$67$—$10$77
PECO$—————37—441
BGE—————47—148
PHI——————711018
Pepco—————2115137
DPL—————1411126
ACE—————1110122
Other4——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 intercompany 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:

June 30, 2025December 31, 2024
ExelonComEdPECOExelonComEdPECO
ComEd Financing III$206$206$—$206$206$—
PECO Trust III81—8181—81
PECO Trust IV103—103103—103
Total$390$206$184$390$206$184

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