Item 1. FINANCIAL STATEMENTS

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Item 1. FINANCIAL STATEMENTS

Exelon Corporation and Subsidiary Companies

Consolidated Statements of Operations and Comprehensive Income

(Unaudited)


	Three Months Ended March 31,
(In millions, except per share data)		2026		2025
Operating revenues
Electric operating revenues		$	6,157	$	5,816
Natural gas operating revenues		1,117		1,024
Revenues from alternative revenue programs		(32)		(126)
Total operating revenues		7,242		6,714
Operating expenses
Purchased power		2,382		2,184
Purchased fuel		394		338

Operating and maintenance		1,466		1,347
Depreciation and amortization		952		903
Taxes other than income taxes		443		405
Total operating expenses		5,637		5,177

Loss on sale of assets		—		(1)


Operating income		1,605		1,536
Other income and (deductions)
Interest expense, net		(548)		(504)
Interest expense to affiliates		(7)		(6)
Other, net		69		52
Total other income and (deductions)		(486)		(458)
Income before income taxes		1,119		1,078
Income taxes		200		170





Net income attributable to common shareholders		$	919	$	908






Comprehensive income, net of income taxes
Net income		$	919	$	908
Other comprehensive income, net of income taxes
Pension and non-pension postretirement benefit plans:

Actuarial losses reclassified to periodic benefit cost		7		5
Pension and non-pension postretirement benefit plans valuation adjustments		4		5
Unrealized (loss) on cash flow hedges		(5)		(8)



Other comprehensive income		6		2


Comprehensive income attributable to common shareholders		$	925	$	910

Average shares of common stock outstanding:
Basic		1,024		1,008
Assumed exercise and/or distributions of stock-based awards(a)		2		1
Diluted		1,026		1,009

Earnings per average common share
Basic		$	0.90	$	0.90
Diluted		$	0.90	$	0.90

(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)


	Three Months Ended March 31,
(In millions)	2026		2025
Cash flows from operating activities
Net income	$	919	$	908
Adjustments to reconcile net income to net cash flows provided by operating activities:
Depreciation, amortization, and accretion	953		905


Loss on sales of assets	—		1

Deferred income taxes and amortization of investment tax credits	345		121
Net fair value changes related to derivatives	—		1


Other non-cash operating activities	222		344
Changes in assets and liabilities:
Accounts receivable	395		(402)
Inventories	20		17
Accounts payable and accrued expenses	(632)		(397)

Collateral received, net	45		44
Income taxes	(144)		59
Regulatory assets and liabilities, net	(329)		86
Pension and non-pension postretirement benefit contributions	(346)		(292)
Other assets and liabilities	276		(195)
Net cash flows provided by operating activities	1,724		1,200
Cash flows from investing activities
Capital expenditures	(2,358)		(1,946)








Other investing activities	2		4
Net cash flows used in investing activities	(2,356)		(1,942)
Cash flows from financing activities
Changes in short-term borrowings	(447)		(775)
Proceeds from short-term borrowings with maturities greater than 90 days	500		—

Issuance of long-term debt	1,120		2,425


Issuance of common stock	—		173



Dividends paid on common stock	(430)		(403)
Proceeds from employee stock plans	12		—

Other financing activities	(27)		(35)
Net cash flows provided by financing activities	728		1,385
Increase in cash, restricted cash, and cash equivalents	96		643
Cash, restricted cash, and cash equivalents at beginning of period	1,201		939
Cash, restricted cash, and cash equivalents at end of period	$	1,297	$	1,582

Supplemental cash flow information
Decrease in capital expenditures not paid	(373)		(216)

See the Combined Notes to Consolidated Financial Statements

Exelon Corporation and Subsidiary Companies

Consolidated Balance Sheets

(Unaudited)


(In millions)	March 31, 2026		December 31, 2025
ASSETS
Current assets
Cash and cash equivalents	$	713	$	626
Restricted cash and cash equivalents	560		525

Accounts receivable
Customer accounts receivable	3,636		3,732
Customer allowance for credit losses	(522)		(435)
Customer accounts receivable, net	3,114		3,297
Other accounts receivable	1,680		1,879
Other allowance for credit losses	(102)		(94)
Other accounts receivable, net	1,578		1,785
Inventories, net
Fossil fuel	35		88
Materials and supplies	811		780
Regulatory assets	1,373		1,359
Prepaid renewable energy credits	314		563
Other	504		523
Total current assets	9,002		9,546
Property, plant, and equipment (net of accumulated depreciation and amortization of $20,694 and $20,080 as of March 31, 2026 and December 31, 2025, respectively)	85,564		84,318
Deferred debits and other assets
Regulatory assets	9,322		9,214
Goodwill	6,630		6,630
Receivable related to Regulatory Agreement Units	4,830		4,755
Investments	317		312
Other	1,880		1,795
Total deferred debits and other assets	22,979		22,706
Total assets	$	117,545	$	116,570

See the Combined Notes to Consolidated Financial Statements

Exelon Corporation and Subsidiary Companies

Consolidated Balance Sheets

(Unaudited)


(In millions)	March 31, 2026		December 31, 2025
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Short-term borrowings	$	665	$	612
Long-term debt due within one year	2,326		1,665
Accounts payable	3,119		3,721
Accrued expenses	1,203		1,582
Payables to affiliates	5		5
Customer deposits	565		533
Regulatory liabilities	910		1,128
Mark-to-market derivative liabilities	21		30
Unamortized energy contract liabilities	5		5
Renewable energy credit obligations	222		473
Other	547		577
Total current liabilities	9,588		10,331
Long-term debt	47,859		47,413
Long-term debt to financing trusts	390		390
Deferred credits and other liabilities
Deferred income taxes and unamortized investment tax credits	14,201		13,715
Regulatory liabilities	11,186		11,016
Pension obligations	1,426		1,749
Non-pension postretirement benefit obligations	558		546
Asset retirement obligations	321		321
Mark-to-market derivative liabilities	112		106
Unamortized energy contract liabilities	16		16
Other	2,573		2,169
Total deferred credits and other liabilities	30,393		29,638
Total liabilities	88,230		87,772
Commitments and contingencies

Shareholders’ equity
Common stock (No par value, 2,000 shares authorized, 1,023 shares outstanding as of March 31, 2026 and December 31, 2025)	22,129		22,106
Treasury stock, at cost (2 shares as of March 31, 2026 and December 31, 2025)	(123)		(123)
Retained earnings	8,065		7,577
Accumulated other comprehensive loss, net	(756)		(762)
Total shareholders’ equity	29,315		28,798


Total liabilities and shareholders’ equity	$	117,545	$	116,570

See the Combined Notes to Consolidated Financial Statements

Exelon Corporation and Subsidiary Companies

Consolidated Statements of Changes in Shareholders' Equity

(Unaudited)


	Three Months Ended March 31, 2026
(In millions, shares in thousands)	Issued Shares	Common Stock		Treasury Stock		Retained Earnings		Accumulated Other Comprehensive Loss, net		Total Shareholders' Equity
Balance at December 31, 2025	1,024,401	$	22,106	$	(123)	$	7,577	$	(762)	$	28,798
Net income	—	—		—		919		—		919
Long-term incentive plan activity	338	10		—		—		—		10
Employee stock purchase plan activity	302	13		—		—		—		13




Common stock dividends ($0.42/common share)	—	—		—		(431)		—		(431)
Other comprehensive income, net of income taxes	—	—		—		—		6		6

Balance at March 31, 2026	1,025,041	$	22,129	$	(123)	$	8,065	$	(756)	$	29,315


	Three Months Ended March 31, 2025
(In millions, shares in thousands)	Issued Shares	Common Stock		Treasury Stock		Retained Earnings		Accumulated Other Comprehensive Loss, net		Total Shareholders' Equity
Balance at December 31, 2024	1,007,046	$	21,338	$	(123)	$	6,426	$	(720)	$	26,921
Net income	—	—		—		908		—		908
Long-term incentive plan activity	299	4		—		—		—		4
Employee stock purchase plan activity	(8)	2		—		—		—		2
Issuance of Common Stock	4,031	173		—		—		—		173



Common stock dividends ($0.40/common share)	—	—		—		(403)		—		(403)
Other comprehensive income, net of income taxes	—	—		—		—		2		2

Balance at March 31, 2025	1,011,368	$	21,517	$	(123)	$	6,931	$	(718)	$	27,607

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 March 31,
(In millions)		2026		2025
Operating revenues
Electric operating revenues		$	1,894	$	2,142
Revenues from alternative revenue programs		8		(85)
Operating revenues from affiliates		11		8
Total operating revenues		1,913		2,065
Operating expenses
Purchased power		451		689

Operating and maintenance		335		323
Operating and maintenance from affiliates		103		100
Depreciation and amortization		404		380
Taxes other than income taxes		105		99
Total operating expenses		1,398		1,591

Operating income		515		474
Other income and (deductions)
Interest expense, net		(132)		(125)
Interest expense to affiliates, net		(3)		(3)
Other, net		31		21
Total other income and (deductions)		(104)		(107)
Income before income taxes		411		367
Income taxes		101		65
Net income		$	310	$	302
Comprehensive income		$	310	$	302

See the Combined Notes to Consolidated Financial Statements

Commonwealth Edison Company and Subsidiary Companies

Consolidated Statements of Cash Flows

(Unaudited)


	Three Months Ended March 31,
(In millions)	2026		2025
Cash flows from operating activities
Net income	$	310	$	302
Adjustments to reconcile net income to net cash flows provided by operating activities:
Depreciation and amortization	404		380

Deferred income taxes and amortization of investment tax credits	71		(8)

Other non-cash operating activities	21		141
Changes in assets and liabilities:
Accounts receivable	559		(111)
Receivables from and payables to affiliates, net	(11)		(21)
Inventories	(7)		3
Accounts payable and accrued expenses	(108)		(189)
Collateral received, net	52		5
Income taxes	29		72
Regulatory assets and liabilities, net	(350)		76
Pension and non-pension postretirement benefit contributions	(220)		(189)
Other assets and liabilities	(6)		(102)
Net cash flows provided by operating activities	744		359
Cash flows from investing activities
Capital expenditures	(885)		(590)




Other investing activities	—		1
Net cash flows used in investing activities	(885)		(589)
Cash flows from financing activities
Changes in short-term borrowings	46		311




Dividends paid on common stock	(218)		(203)
Contributions from parent	256		87

Net cash flows provided by financing activities	84		195
Decrease in cash, restricted cash, and cash equivalents	(57)		(35)
Cash, restricted cash, and cash equivalents at beginning of period	663		632
Cash, restricted cash, and cash equivalents at end of period	$	606	$	597

Supplemental cash flow information
Decrease in capital expenditures not paid	$	(133)	$	(25)

See the Combined Notes to Consolidated Financial Statements

Commonwealth Edison Company and Subsidiary Companies

Consolidated Balance Sheets

(Unaudited)


(In millions)	March 31, 2026		December 31, 2025
ASSETS
Current assets
Cash and cash equivalents	$	95	$	159
Restricted cash and cash equivalents	487		454
Accounts receivable
Customer accounts receivable	865		1,058
Customer allowance for credit losses	(130)		(115)
Customer accounts receivable, net	735		943
Other accounts receivable	780		1,155
Other allowance for credit losses	(27)		(23)
Other accounts receivable, net	753		1,132

Receivables from affiliates	7		5

Inventories, net	274		268

Regulatory assets	687		595

Other	189		217
Total current assets	3,227		3,773
Property, plant, and equipment (net of accumulated depreciation and amortization of $8,514 and $8,219 as of March 31, 2026 and December 31, 2025, respectively)	32,738		32,255
Deferred debits and other assets
Regulatory assets	2,750		2,687

Goodwill	2,625		2,625

Receivable related to Regulatory Agreement Units	4,297		4,313
Investments	6		6
Prepaid pension asset	1,480		1,284

Other	1,355		1,342
Total deferred debits and other assets	12,513		12,257
Total assets	$	48,478	$	48,285

See the Combined Notes to Consolidated Financial Statements

Commonwealth Edison Company and Subsidiary Companies

Consolidated Balance Sheets

(Unaudited)


(In millions)	March 31, 2026		December 31, 2025
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Short-term borrowings	$	46	$	—
Long-term debt due within one year	500		500
Accounts payable	927		1,033
Accrued expenses	369		474
Payables to affiliates	72		81
Customer deposits	214		192
Regulatory liabilities	603		846
Mark-to-market derivative liabilities	22		25

Other	295		288
Total current liabilities	3,048		3,439
Long-term debt	12,255		12,253
Long-term debt to financing trust	206		206
Deferred credits and other liabilities
Deferred income taxes and unamortized investment tax credits	5,918		5,828
Regulatory liabilities	9,268		9,163
Asset retirement obligations	195		193

Non-pension postretirement benefit obligations	154		151

Mark-to-market derivative liabilities	111		106

Other	1,370		1,341
Total deferred credits and other liabilities	17,016		16,782
Total liabilities	32,525		32,680
Commitments and contingencies
Shareholders’ equity
Common stock	1,588		1,588


Other paid-in capital	11,275		11,019
Retained earnings	3,090		2,998

Total shareholders’ equity	15,953		15,605
Total liabilities and shareholders’ equity	$	48,478	$	48,285

See the Combined Notes to Consolidated Financial Statements

Commonwealth Edison Company and Subsidiary Companies

Consolidated Statements of Changes in Shareholders' Equity

(Unaudited)


	Three Months Ended March 31, 2026
(In millions)	Common Stock		Other Paid-In Capital		Retained Earnings		Total Shareholders’ Equity
Balance at December 31, 2025	$	1,588	$	11,019	$	2,998	$	15,605
Net income	—		—		310		310
Common stock dividends	—		—		(218)		(218)
Contributions from parent	—		256		—		256
Balance at March 31, 2026	$	1,588	$	11,275	$	3,090	$	15,953









	Three Months Ended March 31, 2025
(In millions)	Common Stock		Other Paid-In Capital		Retained Earnings		Total Shareholders’ Equity
Balance at December 31, 2024	$	1,588	$	10,628	$	2,664	$	14,880
Net income	—		—		302		302
Common stock dividends	—		—		(203)		(203)
Contributions from parent	—		87		—		87
Balance at March 31, 2025	$	1,588	$	10,715	$	2,763	$	15,066

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 March 31,
(In millions)		2026		2025
Operating revenues
Electric operating revenues		$	1,073	$	963
Natural gas operating revenues		410		376
Revenues from alternative revenue programs		5		(9)
Operating revenues from affiliates		4		3
Total operating revenues		1,492		1,333
Operating expenses
Purchased power		451		361
Purchased fuel		161		141

Operating and maintenance		271		266
Operating and maintenance from affiliates		66		61
Depreciation and amortization		121		109
Taxes other than income taxes		69		60
Total operating expenses		1,139		998

Operating income		353		335
Other income and (deductions)
Interest expense, net		(69)		(59)
Interest expense to affiliates, net		(2)		(4)
Other, net		11		8
Total other income and (deductions)		(60)		(55)
Income before income taxes		293		280
Income taxes		15		14

Net income		$	278	$	266
Comprehensive income		$	278	$	266

See the Combined Notes to Consolidated Financial Statements

PECO Energy Company and Subsidiary Companies

Consolidated Statements of Cash Flows

(Unaudited)


	Three Months Ended March 31,
(In millions)	2026		2025
Cash flows from operating activities
Net income	$	278	$	266
Adjustments to reconcile net income to net cash flows provided by operating activities:
Depreciation and amortization	121		109


Deferred income taxes and amortization of investment tax credits	278		(18)
Other non-cash operating activities	34		54
Changes in assets and liabilities:
Accounts receivable	(87)		(148)
Receivables from and payables to affiliates, net	4		(4)
Inventories	23		15
Accounts payable and accrued expenses	(122)		(25)
Collateral (paid) received, net	—		12
Income taxes	(262)		32
Regulatory assets and liabilities, net	(55)		27
Pension and non-pension postretirement benefit contributions	(12)		(9)
Other assets and liabilities	(120)		(117)
Net cash flows provided by operating activities	80		194
Cash flows from investing activities
Capital expenditures	(469)		(424)
Changes in Exelon intercompany money pool	(5)		—

Other investing activities	(1)		2
Net cash flows used in investing activities	(475)		(422)
Cash flows from financing activities

Changes in short-term borrowings	—		(192)




Dividends paid on common stock	(137)		(137)
Contributions from parent	567		563



Net cash flows provided by financing activities	430		234
Increase in cash, restricted cash, and cash equivalents	35		6
Cash, restricted cash, and cash equivalents at beginning of period	116		48
Cash, restricted cash, and cash equivalents at end of period	$	151	$	54

Supplemental cash flow information
Decrease in capital expenditures not paid	$	(33)	$	(20)

See the Combined Notes to Consolidated Financial Statements

PECO Energy Company and Subsidiary Companies

Consolidated Balance Sheets

(Unaudited)


(In millions)	March 31, 2026		December 31, 2025
ASSETS
Current assets
Cash and cash equivalents	$	151	$	116

Accounts receivable
Customer accounts receivable	861		811
Customer allowance for credit losses	(160)		(137)
Customer accounts receivable, net	701		674
Other accounts receivable	178		144
Other allowance for credit losses	(22)		(18)
Other accounts receivable, net	156		126

Receivables from affiliates	2		—



Fossil fuel	16		43
Materials and supplies	87		83
Prepaid utility taxes	127		2
Prepaid renewable energy credits	80		55
Regulatory assets	128		72

Other	29		32
Total current assets	1,477		1,203
Property, plant, and equipment (net of accumulated depreciation and amortization of $4,211 and $4,131 as of March 31, 2026 and December 31, 2025, respectively)	16,245		15,922
Deferred debits and other assets
Regulatory assets	1,351		1,275




Receivable related to Regulatory Agreement Units	533		442
Investments	45		45
Prepaid pension asset	450		441

Other	92		34
Total deferred debits and other assets	2,471		2,237
Total assets	$	20,193	$	19,362

See the Combined Notes to Consolidated Financial Statements

PECO Energy Company and Subsidiary Companies

Consolidated Balance Sheets

(Unaudited)


(In millions)	March 31, 2026		December 31, 2025
LIABILITIES AND SHAREHOLDER'S EQUITY
Current liabilities


Accounts payable	$	758	$	811
Accrued expenses	132		483
Payables to affiliates	41		35

Customer deposits	97		93
Renewable energy credit obligations	81		56
Regulatory liabilities	138		140


Other	42		40
Total current liabilities	1,289		1,658
Long-term debt	6,397		6,396
Long-term debt to financing trusts	184		184
Deferred credits and other liabilities
Deferred income taxes and unamortized investment tax credits	2,944		2,594
Regulatory liabilities	539		449
Asset retirement obligations	26		26
Non-pension postretirement benefit obligations	288		286





Other	158		109
Total deferred credits and other liabilities	3,955		3,464
Total liabilities	11,825		11,702
Commitments and contingencies
Shareholder’s equity
Common stock	5,789		5,222


Retained earnings	2,579		2,438


Total shareholder’s equity	8,368		7,660
Total liabilities and shareholder's equity	$	20,193	$	19,362

See the Combined Notes to Consolidated Financial Statements

PECO Energy Company and Subsidiary Companies

Consolidated Statements of Changes in Shareholders' Equity

(Unaudited)


	Three Months Ended March 31, 2026
(In millions)	Common Stock		Retained Earnings		Total Shareholder's Equity
Balance at December 31, 2025	$	5,222	$	2,438	$	7,660
Net income	—		278		278
Common stock dividends	—		(137)		(137)
Contributions from parent	567		—		567
Balance at March 31, 2026	$	5,789	$	2,579	$	8,368









	Three Months Ended March 31, 2025
(In millions)	Common Stock		Retained Earnings		Total Shareholder's Equity
Balance at December 31, 2024	$	4,645	$	2,170	$	6,815
Net income	—		266		266
Common stock dividends	—		(137)		(137)
Contributions from parent	563		—		563
Balance at March 31, 2025	$	5,208	$	2,299	$	7,507

See the Combined Notes to Consolidated Financial Statements

Baltimore Gas and Electric Company

Statements of Operations and Comprehensive Income

(Unaudited)


	Three Months Ended March 31,
(In millions)		2026		2025
Operating revenues
Electric operating revenues		$	1,257	$	1,021
Natural gas operating revenues		590		560
Revenues from alternative revenue programs		(22)		(29)
Operating revenues from affiliates		3		2
Total operating revenues		1,828		1,554
Operating expenses
Purchased power		630		450
Purchased fuel		178		159

Operating and maintenance		260		242
Operating and maintenance from affiliates		67		63
Depreciation and amortization		167		164
Taxes other than income taxes		104		96
Total operating expenses		1,406		1,174

Operating income		422		380
Other income and (deductions)
Interest expense, net		(62)		(58)
Other, net		17		9
Total other income and (deductions)		(45)		(49)
Income before income taxes		377		331
Income taxes		79		71
Net income		$	298	$	260
Comprehensive income		$	298	$	260

See the Combined Notes to Consolidated Financial Statements

Baltimore Gas and Electric Company

Statements of Cash Flows

(Unaudited)


	Three Months Ended March 31,
(In millions)	2026		2025
Cash flows from operating activities
Net income	$	298	$	260
Adjustments to reconcile net income to net cash flows provided by operating activities:
Depreciation and amortization	167		164

Deferred income taxes and amortization of investment tax credits	191		35

Other non-cash operating activities	44		55
Changes in assets and liabilities:
Accounts receivable	(134)		(153)
Receivables from and payables to affiliates, net	(7)		(10)
Inventories	16		20
Accounts payable and accrued expenses	(63)		(15)
Collateral received, net	4		1
Income taxes	(111)		36
Regulatory assets and liabilities, net	71		14
Pension and non-pension postretirement benefit contributions	(40)		(34)
Other assets and liabilities	71		49
Net cash flows provided by operating activities	507		422
Cash flows from investing activities
Capital expenditures	(437)		(406)

Other investing activities	4		3
Net cash flows used in investing activities	(433)		(403)
Cash flows from financing activities
Changes in short-term borrowings	—		62




Dividends paid on common stock	(114)		(98)


Net cash flows used in financing activities	(114)		(36)
Decrease in cash, restricted cash, and cash equivalents	(40)		(17)
Cash, restricted cash, and cash equivalents at beginning of period	220		34
Cash, restricted cash, and cash equivalents at end of period	$	180	$	17

Supplemental cash flow information
Decrease in capital expenditures not paid	$	(95)	$	(48)

See the Combined Notes to Consolidated Financial Statements

Baltimore Gas and Electric Company

Balance Sheets

(Unaudited)


(In millions)	March 31, 2026		December 31, 2025
ASSETS
Current assets
Cash and cash equivalents	$	173	$	217
Restricted cash and cash equivalents	7		3
Accounts receivable
Customer accounts receivable	1,012		887
Customer allowance for credit losses	(101)		(68)
Customer accounts receivable, net	911		819
Other accounts receivable	116		100
Other allowance for credit losses	(4)		(4)
Other accounts receivable, net	112		96

Receivables from affiliates	1		1


Inventories, net
Fossil fuel	15		36
Materials and supplies	78		74
Prepaid utility taxes	64		126
Regulatory assets	90		175
Prepaid renewable energy credits	50		189
Other	18		14
Total current assets	1,519		1,750
Property, plant, and equipment (net of accumulated depreciation and amortization of $5,351 and $5,234 as of March 31, 2026 and December 31, 2025, respectively)	14,593		14,385
Deferred debits and other assets
Regulatory assets	787		804
Investments	11		10


Prepaid pension asset	221		194

Other	40		41
Total deferred debits and other assets	1,059		1,049
Total assets	$	17,171	$	17,184

See the Combined Notes to Consolidated Financial Statements

Baltimore Gas and Electric Company

Balance Sheets

(Unaudited)


(In millions)	March 31, 2026		December 31, 2025
LIABILITIES AND SHAREHOLDER'S EQUITY
Current liabilities

Long-term debt due within one year	$	350	$	350
Accounts payable	470		640
Accrued expenses	252		352
Payables to affiliates	32		39
Customer deposits	126		125
Regulatory liabilities	45		31

Renewable energy credit obligations	54		194
Other	57		39
Total current liabilities	1,386		1,770
Long-term debt	5,692		5,691
Deferred credits and other liabilities
Deferred income taxes and unamortized investment tax credits	2,464		2,242
Regulatory liabilities	565		595
Asset retirement obligations	36		36
Non-pension postretirement benefit obligations	138		144



Other	104		104
Total deferred credits and other liabilities	3,307		3,121
Total liabilities	10,385		10,582
Commitments and contingencies
Shareholder's equity
Common stock	4,014		4,014

Retained earnings	2,772		2,588


Total shareholder's equity	6,786		6,602


Total liabilities and shareholder's equity	$	17,171	$	17,184

See the Combined Notes to Consolidated Financial Statements

Baltimore Gas and Electric Company

Statements of Changes in Shareholder's Equity

(Unaudited)


	Three Months Ended March 31, 2026
(In millions)	Common Stock		Retained Earnings		Total Shareholder's Equity
Balance at December 31, 2025	$	4,014	$	2,588	$	6,602
Net income	—		298		298
Common stock dividends	—		(114)		(114)

Balance at March 31, 2026	$	4,014	$	2,772	$	6,786









	Three Months Ended March 31, 2025
(In millions)	Common Stock		Retained Earnings		Total Shareholder's Equity
Balance at December 31, 2024	$	3,483	$	2,403	$	5,886
Net income	—		260		260
Common stock dividends	—		(98)		(98)

Balance at March 31, 2025	$	3,483	$	2,565	$	6,048

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 March 31,
(In millions)		2026		2025
Operating revenues
Electric operating revenues		$	1,934	$	1,691
Natural gas operating revenues		116		88
Revenues from alternative revenue programs		(23)		(3)
Operating revenues from affiliates		3		2
Total operating revenues		2,030		1,778
Operating expenses
Purchased power		850		684
Purchased fuel		55		38

Operating and maintenance		365		296
Operating and maintenance from affiliates		59		53
Depreciation and amortization		246		234
Taxes other than income taxes		151		140
Total operating expenses		1,726		1,445

Loss on sale of assets		—		(1)
Operating income		304		332
Other income and (deductions)
Interest expense, net		(105)		(99)
Interest expense to affiliates, net		(1)		(1)
Other, net		18		19
Total other income and (deductions)		(88)		(81)
Income before income taxes		216		251
Income taxes		47		57

Net income		$	169	$	194








Comprehensive income		$	169	$	194

See the Combined Notes to Consolidated Financial Statements

Pepco Holdings LLC and Subsidiary Companies

Consolidated Statements of Cash Flows

(Unaudited)


	Three Months Ended March 31,
(In millions)	2026		2025
Cash flows from operating activities
Net income	$	169	$	194
Adjustments to reconcile net income to net cash flows provided by operating activities:
Depreciation, amortization, and accretion	246		234

Loss on sales of assets	—		1
Deferred income taxes and amortization of investment tax credits	92		32

Other non-cash operating activities	86		69
Changes in assets and liabilities:
Accounts receivable	62		6
Receivables from and payables to affiliates, net	(28)		(9)
Inventories	(9)		(24)
Accounts payable and accrued expenses	(54)		(84)

Collateral (paid) received, net	(10)		27
Income taxes	(45)		25
Regulatory assets and liabilities, net	9		(14)
Pension and non-pension postretirement benefit contributions	(52)		(42)
Other assets and liabilities	10		(13)
Net cash flows provided by operating activities	476		402
Cash flows from investing activities
Capital expenditures	(558)		(513)





Net cash flows used in investing activities	(558)		(513)
Cash flows from financing activities
Changes in short-term borrowings	(493)		(530)


Issuance of long-term debt	345		425

Changes in Exelon intercompany money pool	40		11



Distributions to member	(139)		(132)
Contributions from member	275		352


Other financing activities	(7)		(8)
Net cash flows provided by financing activities	21		118
(Decrease) increase in cash, restricted cash, and cash equivalents	(61)		7
Cash, restricted cash, and cash equivalents at beginning of period	141		163
Cash, restricted cash, and cash equivalents at end of period	$	80	$	170

Supplemental cash flow information
Decrease in capital expenditures not paid	$	(117)	$	(109)

See the Combined Notes to Consolidated Financial Statements

Pepco Holdings LLC and Subsidiary Companies

Consolidated Balance Sheets

(Unaudited)


(In millions)	March 31, 2026		December 31, 2025
ASSETS
Current assets
Cash and cash equivalents	$	49	$	103
Restricted cash and cash equivalents	31		38
Accounts receivable
Customer accounts receivable	897		975
Customer allowance for credit losses	(131)		(115)
Customer accounts receivable, net	766		860
Other accounts receivable	319		292
Other allowance for credit losses	(49)		(49)
Other accounts receivable, net	270		243

Receivables from affiliates	15		14


Inventories, net
Fossil fuel	4		9
Materials and supplies	371		357

Prepaid utility taxes	43		77
Regulatory assets	302		352

Prepaid renewable energy credits	59		201
Other	46		34
Total current assets	1,956		2,288
Property, plant, and equipment (net of accumulated depreciation and amortization of $4,529 and $4,350 as of March 31, 2026 and December 31, 2025, respectively)	21,605		21,377
Deferred debits and other assets
Regulatory assets	1,560		1,556
Goodwill	4,005		4,005
Investments	159		158


Prepaid pension asset	227		199


Other	145		132
Total deferred debits and other assets	6,096		6,050
Total assets	$	29,657	$	29,715

See the Combined Notes to Consolidated Financial Statements

Pepco Holdings LLC and Subsidiary Companies

Consolidated Balance Sheets

(Unaudited)


(In millions)	March 31, 2026		December 31, 2025
LIABILITIES AND MEMBER'S EQUITY
Current liabilities
Short-term borrowings	$	119	$	612
Long-term debt due within one year	75		64
Accounts payable	707		816
Accrued expenses	277		359
Payables to affiliates	44		71
Borrowings from Exelon intercompany money pool	120		80

Customer deposits	128		123
Regulatory liabilities	115		103
Unamortized energy contract liabilities	5		5


Renewable energy credit obligations	87		223
Other	102		121
Total current liabilities	1,779		2,577
Long-term debt	9,853		9,526
Deferred credits and other liabilities
Deferred income taxes and unamortized investment tax credits	3,500		3,391
Regulatory liabilities	726		722
Asset retirement obligations	60		62
Non-pension postretirement benefit obligations	20		24




Unamortized energy contract liabilities	15		16
Other	420		418
Total deferred credits and other liabilities	4,741		4,633
Total liabilities	16,373		16,736
Commitments and contingencies

Member's equity
Membership interest	13,405		13,130

Undistributed losses	(121)		(151)

Total member's equity	13,284		12,979
Total liabilities and member's equity	$	29,657	$	29,715

See the Combined Notes to Consolidated Financial Statements

Pepco Holdings LLC and Subsidiary Companies

Consolidated Statements of Changes in Member's Equity

(Unaudited)


	Three Months Ended March 31, 2026
(In millions)	Membership Interest		Undistributed (Losses)/Gains		Total Member's Equity
Balance at December 31, 2025	$	13,130	$	(151)	$	12,979
Net income	—		169		169
Distributions to member	—		(139)		(139)
Contributions from member	275		—		275
Balance at March 31, 2026	$	13,405	$	(121)	$	13,284


	Three Months Ended March 31, 2025
(In millions)	Membership Interest		Undistributed (Losses)/Gains		Total Member's Equity
Balance at December 31, 2024	$	12,562	$	(240)	$	12,322
Net income	—		194		194
Distributions to member	—		(132)		(132)
Contributions from member	352		—		352
Balance at March 31, 2025	$	12,914	$	(178)	$	12,736

See the Combined Notes to Consolidated Financial Statements

Potomac Electric Power Company

Statements of Operations and Comprehensive Income

(Unaudited)


	Three Months Ended March 31,
(In millions)		2026		2025
Operating revenues
Electric operating revenues		$	986	$	855
Revenues from alternative revenue programs		1		2
Operating revenues from affiliates		2		2
Total operating revenues		989		859
Operating expenses
Purchased power		411		318

Operating and maintenance		151		96
Operating and maintenance from affiliates		67		63
Depreciation and amortization		114		105
Taxes other than income taxes		118		113
Total operating expenses		861		695

Loss on sale of assets		—		(1)

Operating income		128		163
Other income and (deductions)
Interest expense, net		(55)		(52)

Other, net		11		11
Total other income and (deductions)		(44)		(41)
Income before income taxes		84		122
Income taxes		16		25

Net income		$	68	$	97










Comprehensive income		$	68	$	97

See the Combined Notes to Consolidated Financial Statements

Potomac Electric Power Company

Statements Of Cash Flows

(Unaudited)


	Three Months Ended March 31,
(In millions)	2026		2025
Cash flows from operating activities
Net income	$	68	$	97
Adjustments to reconcile net income to net cash flows provided by operating activities:
Depreciation, amortization, and accretion	114		105
Loss on sales of assets	—		1
Deferred income taxes and amortization of investment tax credits	44		10

Other non-cash operating activities	27		12
Changes in assets and liabilities:
Accounts receivable	24		(14)
Receivables from and payables to affiliates, net	(6)		(2)
Inventories	(14)		(20)
Accounts payable and accrued expenses	4		(28)
Collateral (paid) received, net	(12)		10
Income taxes	(28)		15
Regulatory assets and liabilities, net	35		13
Pension and non-pension postretirement benefit contributions	(4)		(4)
Other assets and liabilities	6		(3)
Net cash flows provided by operating activities	258		192
Cash flows from investing activities
Capital expenditures	(285)		(240)





Net cash flows used in investing activities	(285)		(240)
Cash flows from financing activities
Changes in short-term borrowings	(230)		(200)
Issuance of long-term debt	170		200


Dividends paid on common stock	(64)		(66)
Contributions from parent	139		157


Other financing activities	(3)		(5)
Net cash flows provided by financing activities	12		86
(Decrease) increase in cash, restricted cash, and cash equivalents	(15)		38
Cash, restricted cash, and cash equivalents at beginning of period	55		51
Cash, restricted cash, and cash equivalents at end of period	$	40	$	89

Supplemental cash flow information
Decrease in capital expenditures not paid	$	(83)	$	(49)

See the Combined Notes to Consolidated Financial Statements

Potomac Electric Power Company

Balance Sheets

(Unaudited)


(In millions)	March 31, 2026		December 31, 2025
ASSETS
Current assets
Cash and cash equivalents	$	20	$	22
Restricted cash and cash equivalents	20		33
Accounts receivable
Customer accounts receivable	454		484
Customer allowance for credit losses	(76)		(69)
Customer accounts receivable, net	378		415
Other accounts receivable	173		154
Other allowance for credit losses	(26)		(26)
Other accounts receivable, net	147		128

Receivables from affiliates	1		—


Inventories, net	188		174



Regulatory assets	145		182

Prepaid renewable energy credits	49		171
Other	40		59
Total current assets	988		1,184
Property, plant, and equipment (net of accumulated depreciation and amortization of $4,861 and $4,784 as of March 31, 2026 and December 31, 2025, respectively)	10,850		10,747
Deferred debits and other assets
Regulatory assets	400		405
Investments	142		141



Prepaid pension asset	189		194

Other	63		57
Total deferred debits and other assets	794		797
Total assets	$	12,632	$	12,728

See the Combined Notes to Consolidated Financial Statements

Potomac Electric Power Company

Balance Sheets

(Unaudited)


(In millions)	March 31, 2026		December 31, 2025
LIABILITIES AND SHAREHOLDER'S EQUITY
Current liabilities
Short-term borrowings	$	73	$	303
Long-term debt due within one year	7		6
Accounts payable	352		418
Accrued expenses	149		173
Payables to affiliates	32		37



Customer deposits	64		61
Regulatory liabilities	13		13


Renewable energy credit obligations	50		174
Other	62		84
Total current liabilities	802		1,269
Long-term debt	4,795		4,626

Deferred credits and other liabilities
Deferred income taxes and unamortized investment tax credits	1,658		1,604
Regulatory liabilities	271		268
Asset retirement obligations	42		45






Other	219		214
Total deferred credits and other liabilities	2,190		2,131
Total liabilities	7,787		8,026
Commitments and contingencies
Shareholder's equity
Common stock	3,667		3,528


Retained earnings	1,178		1,174

Total shareholder's equity	4,845		4,702
Total liabilities and shareholder's equity	$	12,632	$	12,728

See the Combined Notes to Consolidated Financial Statements

Potomac Electric Power Company

Statements Of Changes In Shareholder's Equity

(Unaudited)


	Three Months Ended March 31, 2026
(In millions)	Common Stock		Retained Earnings		Total Shareholder's Equity
Balance at December 31, 2025	$	3,528	$	1,174	$	4,702
Net income	—		68		68
Common stock dividends	—		(64)		(64)
Contributions from parent	139		—		139
Balance at March 31, 2026	$	3,667	$	1,178	$	4,845


	Three Months Ended March 31, 2025
(In millions)	Common Stock		Retained Earnings		Total Shareholder's Equity
Balance at December 31, 2024	$	3,335	$	1,100	$	4,435
Net income	—		97		97
Common stock dividends	—		(66)		(66)
Contributions from parent	157		—		157
Balance at March 31, 2025	$	3,492	$	1,131	$	4,623

See the Combined Notes to Consolidated Financial Statements

Delmarva Power & Light Company

Statements of Operations and Comprehensive Income

(Unaudited)


	Three Months Ended March 31,
(In millions)		2026		2025
Operating revenues
Electric operating revenues		$	510	$	463
Natural gas operating revenues		116		88
Revenues from alternative revenue programs		(6)		(5)
Operating revenues from affiliates		2		2
Total operating revenues		622		548
Operating expenses
Purchased power		234		209
Purchased fuel		55		38

Operating and maintenance		71		60
Operating and maintenance from affiliates		47		46
Depreciation and amortization		66		63
Taxes other than income taxes		26		21
Total operating expenses		499		437



Operating income		123		111
Other income and (deductions)
Interest expense, net		(27)		(25)

Other, net		4		4
Total other income and (deductions)		(23)		(21)
Income before income taxes		100		90
Income taxes		23		21

Net income		$	77	$	69
Comprehensive income		$	77	$	69

See the Combined Notes to Consolidated Financial Statements

Delmarva Power & Light Company

Statements Of Cash Flows

(Unaudited)


	Three Months Ended March 31,
(In millions)	2026		2025
Cash flows from operating activities
Net income	$	77	$	69
Adjustments to reconcile net income to net cash flows provided by operating activities:
Depreciation and amortization	66		63

Deferred income taxes and amortization of investment tax credits	26		9

Other non-cash operating activities	19		21
Changes in assets and liabilities:
Accounts receivable	24		(1)
Receivables from and payables to affiliates, net	—		(4)
Inventories	6		(4)
Accounts payable and accrued expenses	(29)		(9)
Collateral received, net	7		9
Income taxes	(3)		13
Regulatory assets and liabilities, net	3		2
Pension and non-pension postretirement benefit contributions	(1)		—
Other assets and liabilities	10		7
Net cash flows provided by operating activities	205		175
Cash flows from investing activities
Capital expenditures	(147)		(156)


Changes in PHI intercompany money pool	—		(12)

Net cash flows used in investing activities	(147)		(168)
Cash flows from financing activities
Changes in short-term borrowings	(115)		(144)
Issuance of long-term debt	75		125


Dividends paid on common stock	(50)		(46)
Contributions from parent	45		99
Other financing activities	(3)		(3)
Net cash flows (used in) provided by financing activities	(48)		31
Increase in cash, restricted cash, and cash equivalents	10		38
Cash, restricted cash, and cash equivalents at beginning of period	12		23
Cash, restricted cash, and cash equivalents at end of period	$	22	$	61

Supplemental cash flow information
Decrease in capital expenditures not paid	$	(25)	$	(47)

See the Combined Notes to Consolidated Financial Statements

Delmarva Power & Light Company

Balance Sheets

(Unaudited)


(In millions)	March 31, 2026		December 31, 2025
ASSETS
Current assets
Cash and cash equivalents	$	12	$	9
Restricted cash and cash equivalents	10		3
Accounts receivable
Customer accounts receivable	228		253
Customer allowance for credit losses	(24)		(19)
Customer accounts receivable, net	204		234
Other accounts receivable	73		75
Other allowance for credit losses	(11)		(10)
Other accounts receivable, net	62		65
Receivables from affiliates	2		2

Inventories, net
Fossil fuel	5		9
Materials and supplies	105		107
Prepaid utility taxes	16		29

Regulatory assets	78		72
Prepaid renewable energy credits	10		30
Other	20		13
Total current assets	524		573
Property, plant, and equipment (net of accumulated depreciation and amortization of $2,289 and $2,241 as of March 31, 2026 and December 31, 2025, respectively)	5,921		5,855
Deferred debits and other assets
Regulatory assets	208		214



Other	145		147
Total deferred debits and other assets	353		361
Total assets	$	6,798	$	6,789

See the Combined Notes to Consolidated Financial Statements

Delmarva Power & Light Company

Balance Sheets

(Unaudited)


(In millions)	March 31, 2026		December 31, 2025
LIABILITIES AND SHAREHOLDER'S EQUITY
Current liabilities
Short-term borrowings	$	46	$	161
Long-term debt due within one year	63		53
Accounts payable	163		218
Accrued expenses	66		70
Payables to affiliates	25		25

Customer deposits	37		36
Regulatory liabilities	49		42
Renewable energy credit obligations	37		49
Other	29		22
Total current liabilities	515		676
Long-term debt	2,358		2,291
Deferred credits and other liabilities
Deferred income taxes and unamortized investment tax credits	1,028		996
Regulatory liabilities	318		316
Asset retirement obligations	13		12


Other	123		127
Total deferred credits and other liabilities	1,482		1,451
Total liabilities	4,355		4,418
Commitments and contingencies
Shareholder's equity
Common stock	1,767		1,722

Retained earnings	676		649
Total shareholder's equity	2,443		2,371
Total liabilities and shareholder's equity	$	6,798	$	6,789

See the Combined Notes to Consolidated Financial Statements

Delmarva Power & Light Company

Statements Of Changes In Shareholder's Equity

(Unaudited)


	Three Months Ended March 31, 2026
(In millions)	Common Stock		Retained Earnings		Total Shareholder's Equity
Balance at December 31, 2025	$	1,722	$	649	$	2,371
Net income	—		77		77
Common stock dividends	—		(50)		(50)
Contributions from parent	45		—		45
Balance at March 31, 2026	$	1,767	$	676	$	2,443


	Three Months Ended March 31, 2025
(In millions)	Common Stock		Retained Earnings		Total Shareholder's Equity
Balance at December 31, 2024	$	1,615	$	627	$	2,242
Net income	—		69		69
Common stock dividends	—		(46)		(46)
Contributions from parent	99		—		99
Balance at March 31, 2025	$	1,714	$	650	$	2,364

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 March 31,
(In millions)		2026		2025
Operating revenues
Electric operating revenues		$	438	$	372
Revenues from alternative revenue programs		(18)		—
Operating revenues from affiliates		1		1
Total operating revenues		421		373
Operating expenses
Purchased power		205		157

Operating and maintenance		50		51
Operating and maintenance from affiliates		43		39
Depreciation and amortization		65		64
Taxes other than income taxes		2		2
Total operating expenses		365		313



Operating income		56		60
Other income and (deductions)
Interest expense, net		(22)		(21)

Other, net		2		3
Total other income and (deductions)		(20)		(18)
Income before income taxes		36		42
Income taxes		9		11

Net income		$	27	$	31
Comprehensive income		$	27	$	31

See the Combined Notes to Consolidated Financial Statements

Atlantic City Electric Company and Subsidiary Company

Statements Of Cash Flows

(Unaudited)


	Three Months Ended March 31,
(In millions)	2026		2025
Cash flows from operating activities
Net income	$	27	$	31
Adjustments to reconcile net income to net cash flows provided by operating activities:
Depreciation and amortization	65		64

Deferred income taxes and amortization of investment tax credits	30		8
Other non-cash operating activities	34		25
Changes in assets and liabilities:
Accounts receivable	15		21
Receivables from and payables to affiliates, net	(4)		(2)
Inventories	(2)		—
Accounts payable and accrued expenses	(1)		(8)
Collateral (paid) received, net	(5)		6
Income taxes	(21)		3
Regulatory assets and liabilities, net	(32)		(28)
Pension and non-pension postretirement benefit contributions	(13)		(3)
Other assets and liabilities	1		(5)
Net cash flows provided by operating activities	94		112
Cash flows from investing activities
Capital expenditures	(122)		(105)



Net cash flows used in investing activities	(122)		(105)
Cash flows from financing activities
Changes in short-term borrowings	(148)		(186)


Issuance of long-term debt	100		100

Changes in PHI intercompany money pool	—		12
Dividends paid on common stock	(25)		(20)
Contributions from parent	91		94
Other financing activities	(1)		(2)
Net cash flows provided by (used in) financing activities	17		(2)
(Decrease) increase in cash and cash equivalents	(11)		5
Cash and cash equivalents at beginning of period	24		14
Cash and cash equivalents at end of period	$	13	$	19

Supplemental cash flow information
Decrease in capital expenditures not paid	$	(8)	$	(12)

See the Combined Notes to Consolidated Financial Statements

Atlantic City Electric Company and Subsidiary Company

Consolidated Balance Sheets

(Unaudited)


(In millions)	March 31, 2026		December 31, 2025
ASSETS
Current assets
Cash and cash equivalents	$	12	$	22
Restricted cash and cash equivalents	1		2
Accounts receivable
Customer accounts receivable	216		239
Customer allowance for credit losses	(31)		(27)
Customer accounts receivable, net	185		212
Other accounts receivable	80		64
Other allowance for credit losses	(12)		(13)
Other accounts receivable, net	68		51

Receivables from affiliates	12		12

Inventories, net	78		76



Regulatory assets	74		93
Other	8		8
Total current assets	438		476
Property, plant, and equipment (net of accumulated depreciation and amortization of $2,003 and $1,956 as of March 31, 2026 and December 31, 2025, respectively)	4,615		4,556
Deferred debits and other assets
Regulatory assets	582		559





Other	50		41
Total deferred debits and other assets	632		600
Total assets	$	5,685	$	5,632

See the Combined Notes to Consolidated Financial Statements

Atlantic City Electric Company and Subsidiary Company

Consolidated Balance Sheets

(Unaudited)


(In millions)	March 31, 2026		December 31, 2025
LIABILITIES AND SHAREHOLDER'S EQUITY
Current liabilities
Short-term borrowings	$	—	$	148
Long-term debt due within one year	5		5
Accounts payable	180		168
Accrued expenses	43		64
Payables to affiliates	20		24



Customer deposits	26		26
Regulatory liabilities	52		48

Other	9		13
Total current liabilities	335		496
Long-term debt	2,128		2,028
Deferred credits and other liabilities
Deferred income taxes and unamortized investment tax credits	900		869
Regulatory liabilities	135		137






Other	66		74
Total deferred credits and other liabilities	1,101		1,080
Total liabilities	3,564		3,604
Commitments and contingencies
Shareholder's equity
Common stock	2,104		2,013
Retained earnings	17		15

Total shareholder's equity	2,121		2,028
Total liabilities and shareholder's equity	$	5,685	$	5,632

See the Combined Notes to Consolidated Financial Statements

Atlantic City Electric Company and Subsidiary Company

Consolidated Statements Of Changes In Shareholder's Equity

(Unaudited)


	Three Months Ended March 31, 2026
(In millions)	Common Stock		Retained (Deficit) Earnings		Total Shareholder's Equity
Balance at December 31, 2025	$	2,013	$	15	$	2,028
Net income	—		27		27
Common stock dividends	—		(25)		(25)
Contributions from parent	91		—		91
Balance at March 31, 2026	$	2,104	$	17	$	2,121


	Three Months Ended March 31, 2025
(In millions)	Common Stock		Retained (Deficit) Earnings		Total Shareholder's Equity
Balance at December 31, 2024	$	1,915	$	10	$	1,925
Net income	—		31		31
Common stock dividends	—		(20)		(20)
Contributions from parent	94		—		94
Balance at March 31, 2025	$	2,009	$	21	$	2,030

See the Combined Notes to Consolidated Financial Statements

Combined Notes to Consolidated Financial Statements

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

Note 1 — Significant Accounting Policies

1. Significant Accounting Policies (All Registrants)

Description of Business (All Registrants)

Exelon is a utility services holding company engaged in the energy transmission and distribution businesses through ComEd, PECO, BGE, Pepco, DPL, and ACE.


Name of Registrant	Business	Service Territories
Commonwealth Edison Company	Purchase and regulated retail sale of electricity	Northern Illinois, including the City of Chicago (and, through its subsidiary ComEd of Indiana, transmission in a small portion of northwestern Indiana)
	Transmission and distribution of electricity to retail customers
PECO Energy Company	Purchase and regulated retail sale of electricity and natural gas	Southeastern Pennsylvania, including the City of Philadelphia (electricity)
	Transmission and distribution of electricity and distribution of natural gas to retail customers	Pennsylvania counties surrounding the City of Philadelphia (natural gas)
Baltimore Gas and Electric Company	Purchase and regulated retail sale of electricity and natural gas	Central Maryland, including the City of Baltimore (electricity and natural gas)
	Transmission and distribution of electricity and distribution of natural gas to retail customers
Pepco Holdings LLC	Utility services holding company engaged, through its reportable segments Pepco, DPL, and ACE	Service Territories of Pepco, DPL, and ACE

Potomac Electric Power Company	Purchase and regulated retail sale of electricity	District of Columbia, and major portions of Montgomery and Prince George’s Counties, Maryland
	Transmission and distribution of electricity to retail customers
Delmarva Power & Light Company	Purchase and regulated retail sale of electricity and natural gas	Portions of Delaware and Maryland (electricity)
	Transmission and distribution of electricity and distribution of natural gas to retail customers	Portions of New Castle County, Delaware (natural gas)
Atlantic City Electric Company	Purchase and regulated retail sale of electricity	Portions of Southern New Jersey
	Transmission and distribution of electricity to retail customers

Prior Period Adjustments (ACE)

In the first quarter of 2026, management identified an error in the historical rate classification for a limited number of ACE customers that resulted in the overstatement of Regulatory assets and Revenues from alternative revenue programs. Management has concluded that the error was not material to previously issued or to the current period financial statements.

The impact of the error correction recognized in the first quarter of 2026 was a $14 million decrease to ACE’s Revenues from alternative revenue programs, a $4 million decrease to Income taxes, and a corresponding decrease of $14 million in Regulatory assets. The overall impact on ACE’s Operating income was a decrease of $14 million, and the impact on ACE’s Net income was $10 million. The error did not impact any net cash flow subtotal for the three months ended March 31, 2026.

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 Registrants' Consolidated Financial Statements includes the accounts of its subsidiaries. All intercompany transactions have been eliminated.

Through its business services subsidiary, BSC, Exelon provides its subsidiaries with a variety of support services at cost, including legal, human resources, financial, information technology, and supply management services. PHI also has a business services subsidiary, PHISCO, which provides a variety of support services at cost, including legal, finance, engineering, customer operations, transmission and distribution planning, asset management, system operations, and power procurement, to PHI operating Registrants. The costs of BSC and

Combined Notes to Consolidated Financial Statements

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

Note 1 — Significant Accounting Policies

PHISCO are directly charged or allocated to the applicable subsidiaries. The results of Exelon’s corporate operations are presented as “Other” within the consolidated financial statements and include intercompany eliminations unless otherwise disclosed.

The accompanying consolidated financial statements as of March 31, 2026 and for the three months ended March 31, 2026 and 2025 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, 2025 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, 2026. 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 March 31, 2026: 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 March 31, 2026. Unless otherwise indicated, the Registrants are currently assessing the impacts such guidance may have (which could be material) in their Consolidated Balance Sheets, Consolidated Statements of Operations and Comprehensive Income, Consolidated Statements of Cash Flows and disclosures, as well as the potential to early adopt where applicable. The Registrants have assessed other FASB issuances of new standards which are not listed below given the current expectation that such standards will not significantly impact the Registrants' financial reporting.

Disaggregation of Income Statement Expenses (Issued November 2024). Provides additional disclosure requirements related to relevant expense captions of income statement expense line items. The revised guidance requires a new tabular disclosure of disaggregated income statement expenses including a break out of (1) purchases of inventory, (2) employee compensation, (3) depreciation, (4) intangible asset amortization, (5) depreciation, depletion, and amortization recognized as part of oil and gas producing activities included in each relevant expense line item on the income statement. The tabular disaggregation should include certain amounts already required to be disclosed under GAAP elsewhere. Any remaining amounts not separately disaggregated quantitatively should include a qualitative description. Additionally, on an annual basis, the standard requires disclosure of management’s definition of selling expenses and the amount of expense. The standard is effective January 1, 2027, with early adoption permitted.

2. Regulatory Matters (All Registrants)

As discussed in Note 2 — Regulatory Matters of the 2025 Form 10-K, the Registrants are involved in rate and regulatory proceedings at FERC and their state commissions. The following discusses developments in 2026 and updates to the 2025 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 2026.

Completed Distribution Base Rate Case Proceedings


Registrant/Jurisdiction			Filing Date			Service				Requested Revenue Requirement Increase				Approved Revenue Requirement Increase			Approved ROE		Approval Date		Rate Effective Date
ComEd - Illinois			January 17, 2023			Electric				$	1,487			$	1,045		8.905%		December 19, 2024		January 1, 2024
	April 26, 2024 (amended on September 11, 2024)			Electric				$	624			$	623			9.89%		October 31, 2024		January 1, 2025
PECO - Pennsylvania			March 28, 2024			Electric				$	464			$	354		N/A		December 12, 2024		January 1, 2025
Natural Gas	$	111		$	78
BGE - Maryland			February 17, 2023			Electric				$	313			$	179		9.50%		December 14, 2023		January 1, 2024
			Natural Gas			$	289			$	229			9.45%
Pepco - District of Columbia			April 13, 2023 (amended February 27, 2024)			Electric				$	186			$	123		9.50%		November 26, 2024		January 1, 2025
Pepco - Maryland			May 16, 2023 (amended February 23, 2024)			Electric				$	111			$	45		9.50%		June 10, 2024		April 1, 2024
DPL - Maryland			May 19, 2022			Electric				$	38			$	29		9.60%		December 14, 2022		January 1, 2023
DPL - Delaware			December 15, 2022 (amended September 29, 2023)			Electric				$	39			$	28		9.60%		April 18, 2024		July 15, 2023
	September 20, 2024 (amended September 5, 2025)			Natural Gas				$	37			$	22			9.60%		December 17, 2025		January 1, 2026
ACE - New Jersey			November 21, 2024			Electric				$	109			$	54		9.60%		November 21, 2025		December 1, 2025

Pending Distribution Base Rate Case Proceedings


Registrant/Jurisdiction	Filing Date	Service	Requested Revenue Requirement Increase		Requested ROE	Expected Approval Timing


Pepco - Maryland(a)	October 14, 2025 (amended April 16, 2026)	Electric	$	120	10.50%	Third quarter of 2026
DPL - Delaware(b)	December 9, 2025	Electric	$	45	10.50%	Third quarter of 2027

(a)On April 14, 2026, Pepco notified the MDPSC of pursuing a traditional base rate case.

(b)DPL can implement interim rates on July 9, 2026, subject to refund.

Combined Notes to Consolidated Financial Statements — (Continued)

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

Note 2 — Regulatory Matters

ComEd Distribution Base Rate Case Proceedings

The ICC approved ComEd's four-year MRP for the period January 1, 2024 through December 31, 2027. The MRP was originally approved by the ICC on December 14, 2023 and was subsequently amended on January 10, 2024, April 18, 2024 and December 19, 2024. The December 19, 2024 order provided a total revenue requirement increase of $1.045 billion inclusive of rate increases of approximately $752 million in 2024, $80 million in 2025, $102 million in 2026, and $111 million in 2027.

On May 1, 2026, ComEd filed its 2025 MRP Reconciliation reflecting a revenue increase of $234 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.

On March 20, 2026, ComEd filed its annual revenue balancing reconciliation for 2025. This reconciliation, which is a component of revenue decoupling, reflected a revenue reduction of $128 million. The reconciliation is effective January 1, 2027, subject to regulatory approval.

On December 18, 2025, the ICC approved ComEd's 2024 MRP Reconciliation reflecting a revenue increase of $243 million, including the tax benefit of NOLCs. While NOLCs are included in the MRP Reconciliation per the final order, the impacts of the NOLCs will not be reflected in the financial statements until the PLR is received from the IRS. See Note 6 — Income Taxes for additional information on NOLCs. On January 20, 2026, the Illinois Attorney General filed an Application for Rehearing of the December 18 order, which focuses solely on NOLCs. On February 5, 2026, the ICC denied the Illinois Attorney General's Application for Rehearing.

PECO Distribution Base Rate Case Proceedings

On December 12, 2024, the PAPUC issued their Opinions and Orders which approved the non-unanimous partial settlements with limited modifications for both the electric and natural gas base rate cases, and denied the Weather Normalization Adjustment requested in the natural gas base rate case.

PECO’s approved annual electric revenue requirement increase of $354 million is partially offset by a one-time credit of $64 million in 2025. In addition, the PAPUC approved the recovery of storm damage costs incurred by PECO in January 2024, up to $23 million, subject to review for reasonableness and prudency in PECO’s next distribution rate case.

BGE Distribution Base Rate Case Proceedings

In February 2023, BGE filed its three-year cumulative multi-year plan for January 1, 2024 through December 31, 2026 to the MDPSC, which was approved in December 2023 and went into effect on January 1, 2024. The MDSPC awarded BGE electric revenue requirement increases of $41 million, $113 million, and $25 million with an approved ROE of 9.50% in 2024, 2025, and 2026, respectively, and natural gas revenue requirement increases of $126 million, $62 million, and $41 million with an approved ROE of 9.45% in 2024, 2025, and 2026, respectively. The requested revenue requirement increases will be used to recover capital investments designed to increase the resilience of the electric and gas distribution systems and support Maryland's climate and regulatory initiatives.

The MDPSC also approved a portion of the requested 2021 and 2022 reconciliation amounts, which were recovered through separate electric and gas riders between March 2024 and February 2025. As such, the reconciliation amounts are not included in the approved revenue increases. The 2021 reconciliation amounts are $13 million and $7 million for electric and gas, respectively, and the 2022 reconciliation amounts are $39 million and $15 million for electric and gas, respectively. In April 2024, BGE filed with the MDPSC its request for recovery of the 2023 reconciliation amounts of $79 million and $73 million for electric and gas, respectively, with supporting testimony and schedules. In December 2025, the MDPSC authorized BGE to recover $31 million and $46 million for electric and gas, respectively, beginning in February 2026 and extending through December 2027, in the reconciliation rider. In addition to the amounts approved in the reconciliation rider, the MDPSC provided for additional regulatory assets related to minor storms of $24 million (to be recovered over 5 years) and the Baltimore City conduit of $4 million (to be reviewed along with a cost-benefit analysis in BGE’s next rate case).

Pepco District of Columbia Distribution Base Rate Case Proceedings

Combined Notes to Consolidated Financial Statements — (Continued)

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

Note 2 — Regulatory Matters

On April 13, 2023, Pepco filed an electric base rate case with the DCPSC (amended February 27, 2024) requesting a total revenue requirement increase of $186 million and an ROE of 10.50%. The DCPSC issued an order approving the two-year cumulative multi-year plan on November 26, 2024, which included a total revenue requirement increase of $123 million with an ROE of 9.50% effective January 1, 2025 through December 31, 2026. The DCPSC awarded Pepco electric incremental revenue requirement increases of $99 million and $24 million for 2025 and 2026, respectively. Subsequent to DCPSC approval of the order, interveners appealed the order on several grounds including that the DCPSC did not hold evidentiary hearings. On March 5, 2026, the District of Columbia Court of Appeals remanded the November 26, 2024, order back to the DCPSC to hold evidentiary hearings. On March 27, 2026, the DCPSC issued an order adopting a procedural schedule and requested supplemental briefing on what interim rates should be in effect during the remand period but did not order any refunds for previous amounts collected. Pepco is preparing for the proceeding and will continue to monitor developments.

Pepco Maryland Distribution Base Rate Case Proceedings

On May 16, 2023, Pepco filed an electric base rate case with the MDPSC (amended February 23, 2024) requesting a total revenue requirement increase of $111 million (before offsets) and an ROE of 10.50%. The MDPSC issued an order on June 10, 2024 awarding Pepco a one-year multi-year plan for April 1, 2024 through March 31, 2025 which included an incremental revenue requirement increase of $45 million and an ROE of 9.50%. The MDPSC did not adopt the requested revenue requirement increases of $80 million (before offsets), $51 million, and $14 million as filed for 2025, 2026, and the 2027 nine-month extension period, respectively. The MDPSC also approved the requested reconciliation amounts for the 12-month periods ending March 31, 2022, and March 31, 2023, which will be recovered through a rider between August 2024 through March 2026. As such, the reconciliation amounts are not included in the approved revenue requirement increases. The reconciliation amounts are $1 million and $7 million, for the 12-month periods ending March 31, 2022, and March 31, 2023, respectively. In July 2024, Pepco filed its request with the MDPSC, for recovery of the reconciliation amounts of $31 million for the 12-month period ended March 31, 2024, with supporting testimony and schedules. On March 31, 2026, the MDPSC issued an order authorizing Pepco to recover approximately $13 million through the reconciliation rider. This will be recovered through rates between May 2026 through April 2027. Additionally, the order disallowed the recovery of various assets. The order resulted in the write off of $11 million of Regulatory assets and $15 million of Property, plant and equipment with a total of $26 million recorded in Operations and maintenance expense.

DPL Maryland Distribution Base Rate Case Proceedings

On May 19, 2022, DPL filed an electric base rate case with the MDPSC requesting a total revenue requirement increase of $38 million based on an ROE of 10.25%. On December 14, 2022, the MDPSC issued an order awarding DPL a total revenue requirement increase of $29 million with an ROE of 9.60%. The order reflects a three-year cumulative multi-year plan for January 1, 2023 through December 31, 2025, with rates remaining in effect subsequent to the multi-year plan period. The MDPSC awarded DPL electric incremental revenue requirement increases of $17 million, $6 million, and $6 million for 2023, 2024, and 2025, respectively.

DPL Delaware Distribution Base Rate Case Proceedings

On December 15, 2022, DPL filed an electric base rate case with the DEPSC (amended September 29, 2023) requesting a total revenue requirement increase of $39 million and an ROE of 10.50%. On April 18, 2024, the DEPSC issued an order awarding DPL a total revenue requirement increase of $28 million with an ROE of 9.60%, effective July 15, 2023. As part of the approved order, the DEPSC approved the Significant Storm Expense Rate Rider (Rider SSER) which will allow DPL to recover expenses associated with qualified storms. A qualified storm will be an individual storm for which DPL incurs expenses between $5 million and $15 million. The Rider SSER allows DPL to recover significant storm damage expenses for the previous 12-month period over a future 24-month period. For individual storm events for which DPL incurs expenses of more than $15 million, the future recovery period will be evaluated on a case-by-case basis and the unamortized balance will earn a return at DPL's authorized long-term cost of debt. The Rider SSER will have an annual true-up filing, subject to DEPSC review and approval.

ACE New Jersey Distribution Base Rate Case Proceedings

Combined Notes to Consolidated Financial Statements — (Continued)

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

Note 2 — Regulatory Matters

On November 21, 2024, ACE filed an electric base rate case with the NJBPU requesting a total revenue requirement increase of $109 million, before NJ sales and use tax, and an ROE of 10.70%. On November 21, 2025, the NJBPU issued an order awarding ACE an electric revenue requirement increase, before NJ sales and use tax, of $54 million effective December 1, 2025, with an ROE of 9.60%. In addition, the NJBPU approved the recovery through a regulatory asset of work stoppage costs that were incurred by ACE in 2023 of $38 million.

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 (2024-2027 Grid Plan), also filed on January 17, covering planned investments on the electric distribution system within ComEd’s service area through 2027. Costs incurred during each year of the MRP are subject to ICC review and the plan’s revenue requirement for each year will be reconciled with the actual costs that the ICC determines are prudently and reasonably incurred for that year. The reconciliation is subject to adjustment for certain costs, including a limitation on recovery of costs that are more than 105% of certain costs in the previously approved MRP revenue requirement, absent a modification of the rate plan itself. Thus, for example, the rate adjustments necessary to reconcile 2024 revenues to ComEd’s actual 2024 costs incurred would take effect in January 2026 after the ICC’s review during 2025.

On December 14, 2023, the ICC issued a final order. The ICC rejected ComEd’s 2024-2027 Grid Plan as non-compliant with certain requirements of CEJA and required ComEd to file a revised 2024-2027 Grid Plan. On January 10, 2024, ComEd filed an appeal in the Illinois Appellate Court of portions of the ICC's December 2023 order, including but not limited to the allowed ROE, 50% equity ratio, and denial of a return on ComEd’s pension asset. There is no deadline by when the appellate court must rule. On March 13, 2024, ComEd filed its Refiled 2024-2027 Grid Plan with supporting testimony and schedules with the ICC and subsequently on March 15, 2024, ComEd also filed a petition to adjust its MRP to authorize increased rates consistent with the Refiled 2024-2027 Grid Plan. On December 19, 2024, the ICC approved the Refiled 2024-2027 Grid Plan and adjusted the approved MRP with rates effective on January 1, 2025. The final approved MRP, as adjusted, which reflects the Refiled Grid Plan, resulted in a total cumulative revenue requirement increase of $1.045 billion over the 2024-2027 plan years and remains subject to annual reconciliations in accordance with CEJA. ComEd filed timely requests for rehearing and an appeal of the MRP order, again limited to the issues on which rehearing of the December 2023 order was denied, including the allowed ROE, 50% equity ratio, and denial of a return on ComEd's pension asset.

On January 16, 2026, ComEd filed a multi-year integrated grid plan (2028-2031 Grid Plan), seeking approval for planned investments on the electric distribution system within ComEd's service area in 2028-2031. The ICC must issue an order by December 15, 2026.

Carbon Mitigation Credit

CEJA establishes decarbonization requirements for Illinois as well as programs to support the retention and development of emissions-free sources of electricity. ComEd is required to purchase CMCs from participating nuclear power generating facilities between June 1, 2022 and May 31, 2027. The price to be paid for each CMC was established through a competitive bidding process that included consumer-protection measures that capped the maximum acceptable bid amount and a formula that reduces CMC prices by an energy price index, the base residual auction capacity price in the ComEd zone of PJM, and the monetized value of any federal tax credit or other subsidy if applicable. On October 31, 2025, the seller provided notification to ComEd and the IPA that it has reflected on its 2024 federal tax return $804 million of nuclear production tax credits associated with its

Combined Notes to Consolidated Financial Statements — (Continued)

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

Note 2 — Regulatory Matters

participating nuclear power generating facilities. These amounts will be collected from the seller through an adjustment to the CMC price to be paid by ComEd and returned to customers in 2026. As of December 31, 2025, Exelon and ComEd's Consolidated Balance Sheets reflected these amounts as a receivable from the seller with an offsetting balance within the Carbon mitigation credit regulatory liability. These adjustments had no net impact on Exelon and ComEd’s Consolidated Statements of Operations and Comprehensive Income. The seller has not provided notification to ComEd or the IPA that any subsidies or tax credits, such as nuclear production tax credits, have been monetized for 2025. The consumer protection measures contained in CEJA will result in net payments to ComEd ratepayers if the energy index, the capacity price and applicable federal tax credits or subsidy exceed the CMC contract price. Beginning with the June 2022 monthly billing period, ComEd began issuing credits and/or charges to its retail customers under its CMC rider, the Rider Carbon-Free Resource Adjustment (Rider CFRA). A regulatory asset or liability is recorded for the difference between ComEd's costs associated with the procurement of CMCs from participating nuclear power generating facilities and revenues received from customers. The balance of the liability as of March 31, 2026 is $434 million.

On February 2, 2024, ComEd filed a petition with the ICC to initiate the reconciliation proceeding for the costs incurred in connection with the procurement of CMC’s during the delivery year beginning June 1, 2022 and extending through May 31, 2023. While both Staff and the Administrative Law Judge's proposed order supported ComEd’s proposed reconciliation adjustment, on September 4, 2025, the ICC issued its final order rejecting the proposed reconciliation adjustment. Specifically, the order disallowed portions of the administrative costs as well as a portion of ComEd's interest costs on the balance of credit extended to customers under the applicable tariff that were not yet funded by payments from the generator. The CMC costs themselves were not disallowed. The order resulted in an immaterial impact to the financial statements and on October 3, 2025 ComEd filed its Application for Rehearing. On October 16, 2025, the ICC denied ComEd's Application. On October 17, 2025, ComEd filed its appeal with the Illinois Appellate Court for review of the ICC's order and its denial of rehearing.

Energy Efficiency

CEJA extends ComEd’s current cumulative annual energy efficiency MWh savings goals through 2040, adds expanded electrification measures to those goals, increases low-income commitments, and adds a new performance adjustment to the energy efficiency formula rate. ComEd expects its annual spend to increase through 2040 to achieve these energy efficiency MWh savings goals, which is deferred as a separate regulatory asset that is recovered through the energy efficiency formula rate over the weighted average useful life, as approved by the ICC, of the related energy efficiency measures.

In 2026, Illinois enacted the CRGA, which makes certain changes to the energy efficiency framework established under CEJA.

CRGA modifies the manner in which ComEd’s energy efficiency savings goals are calculated by establishing a flat incremental annual savings requirement that applies indefinitely. CRGA also increases energy efficiency budget and low‑income commitments from levels established under CEJA, expands the categories of savings that may be credited toward annual goals, and revises the return on equity applicable to the energy efficiency regulatory asset to align with the distribution return on equity.

Beginning in 2027, ComEd expects that implementation of CRGA may result in higher annual energy efficiency spending. Incremental costs incurred in advance of recovery are expected to be deferred as a regulatory asset and recovered through ComEd’s energy efficiency formula rate over the weighted‑average useful life of the related measures, subject to approval by the Illinois Commerce Commission.

The energy efficiency provisions of CRGA are effective June 1, 2026. In advance of the effective date, ComEd has begun undertaking implementation activities, including regulatory filings and planning efforts.

Combined Notes to Consolidated Financial Statements — (Continued)

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

Note 2 — Regulatory Matters

Maryland Regulatory Matters

Summer and Winter Rate Mitigation (Exelon, BGE, PHI, Pepco, and DPL). As part of the passing of the Next Generation Energy Act of 2025 by the Maryland General Assembly, the MDPSC issued an order on June 26, 2025, to implement the Legislative Energy Relief Refund program under which bill credits were distributed to residential customers based on their consumption of electricity supply that was subject to the renewable energy portfolio standard. On July 24, 2025, the MDPSC issued an order accepting BGE, Pepco, and DPL's proposal for the implementation of the program. As a result, BGE, Pepco, and DPL received $49 million, $21 million, and $8 million, respectively, from the MDPSC on February 3, 2026. These amounts were used to reduce residential customer account receivable balances within the first quarter of 2026.

Other Federal Regulatory Matters

PJM Cost Allocation Methodology (All Registrants). On March 6, 2026, FERC issued an order requiring the removal of the de minimis threshold exemption in the calculation of the cost responsibility of certain transmission reliability upgrade costs allocated to the rate zones of PJM transmission owners, including the Utility Registrants. FERC further ordered PJM to recalculate historical cost allocations for the period beginning June 18, 2015, and to pass through additional charges or payments to PJM customers, including Utility Registrants, as applicable, with interest within 90 days. On April 29, 2026, the time for those calculations was extended until further order from FERC. The Utility Registrants expect to recover any incremental charges incurred or reimburse any payments received through prospective electric customer rates. On April 6, 2026, a number of parties filed petitions for rehearing or clarification.

The final impacts of the decision cannot be predicted and the results, while not reasonably estimable at this time, could be material to the financial statements.

Regulatory Assets and Liabilities

The Utility Registrants' regulatory assets and liabilities have not changed materially since December 31, 2025, unless noted below. See Note 2 — Regulatory Matters of the 2025 Form 10-K for additional information on the specific regulatory assets and liabilities.

ComEd. Regulatory assets increased $155 million primarily due to an increase of $127 million in the Electric energy and natural gas costs regulatory asset.

PECO. Regulatory assets increased $132 million primarily due to an increase of $72 million in the Deferred income taxes regulatory asset. Regulatory liabilities increased $88 million primarily due to an increase of $91 million in the Decommissioning the Regulatory Agreement Units.

BGE. Regulatory assets decreased $102 million primarily due to a decrease of $45 million in the Electric energy and natural gas costs regulatory asset and a decrease of $42 million in the Energy efficiency and demand response programs regulatory asset. Regulatory liabilities decreased $16 million primarily due to a decrease of $31 million in the Deferred income taxes regulatory liability.

Pepco. Regulatory assets decreased $42 million primarily due to a decrease of $27 million in the Energy efficiency and demand response programs regulatory asset.

DPL. Regulatory assets remained consistent primarily due to a decrease of $15 million in the Energy efficiency and demand response programs regulatory asset, partially offset by an increase of $8 million in the Electric energy and natural gas costs regulatory asset and an increase of $4 million in the Transmission formula rate annual reconciliations regulatory asset.

ACE. Regulatory liabilities increased $2 million primarily due to an increase of $13 million in the Electric energy and natural gas costs regulatory liability, partially offset by a decrease of $4 million in the Transmission formula rate annual reconciliations regulatory liability and a decrease of $4 million in the Over-recovered credit loss expense regulatory liability.

Combined Notes to Consolidated Financial Statements — (Continued)

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

Note 2 — Regulatory Matters

Capitalized Ratemaking Amounts Not Recognized

The following table presents authorized amounts capitalized for ratemaking purposes related to earnings on shareholders' investment that are not recognized for financial reporting purposes in the Registrants' Consolidated Balance Sheets. These amounts will be recognized as revenues in the related Consolidated Statements of Operations and Comprehensive Income in the periods they are billable to the Utility Registrants' customers. PECO had no related amounts at March 31, 2026 and December 31, 2025.


	Exelon		ComEd(a)		BGE(b)		PHI		Pepco(c)		DPL(d)		ACE(e)
March 31, 2026	$	79	$	10	$	39	$	30	$	14	$	—	$	16

December 31, 2025	98		12		47		39		22		1		16

(a)For the three months ended March 31, 2026 reflects ComEd's unrecognized equity returns earned for ratemaking purposes on its electric distribution rate regulatory asset. For the year ended December 31, 2025, reflects ComEd's unrecognized equity returns earned for ratemaking purposes on its electric distribution rates and distributed generation regulatory assets.

(b)BGE's amount capitalized for ratemaking purposes primarily relates to 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.

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 3 — Revenue from Contracts with Customers of the 2025 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 3 — Revenue from Contracts with Customers of the 2025 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 months ended March 31, 2026 and 2025. At March 31, 2026 and December 31, 2025, ComEd's, PECO's, and BGE's contract liabilities were immaterial.

Combined Notes to Consolidated Financial Statements — (Continued)

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

Note 3 — Revenue from Contracts with Customers



	Exelon(a)		PHI(a)		Pepco(a)		DPL		ACE
Balance at December 31, 2025	$	119	$	119	$	95	$	12	$	12
Revenues recognized	(1)		(1)		(1)		—		—
Balance at March 31, 2026	$	118	$	118	$	94	$	12	$	12





	Exelon(a)		PHI(a)		Pepco(a)		DPL		ACE
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

(a)Revenues recognized in the three months ended March 31, 2026 and 2025, were included in the contract liabilities at December 31, 2025 and 2024, 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 March 31, 2026. This disclosure only includes contracts for which the total consideration is fixed and determinable at contract inception. The average contract term varies by customer type and commodity but ranges from one month to several years.

This disclosure excludes the Utility Registrants' gas and electric tariff sales contracts and transmission revenue contracts as they generally have an original expected duration of one year or less and, therefore, do not contain any future, unsatisfied performance obligations to be included in this disclosure.


Year	Exelon		PHI		Pepco		DPL		ACE
2026	$	4	$	4	$	4	$	—	$	—
2027	6		6		5		1		—
2028	6		6		5		—		1
2029	7		7		6		1		—
2030 and thereafter	95		95		74		10		11
Total	$	118	$	118	$	94	$	12	$	12

Revenue Disaggregation

The Registrants disaggregate revenue recognized from contracts with customers into categories that depict how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors. See Note 4 — Segment Information for the presentation of the Registrants' revenue disaggregation.

Combined Notes to Consolidated Financial Statements — (Continued)

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

Note 4 — Segment Information

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 months ended March 31, 2026 and 2025 is as follows:


	ComEd		PECO		BGE		PHI		Other(a)		Intersegment Eliminations		Exelon
Operating revenues(b):
2026
Electric revenues	$	1,913	$	1,082	$	1,245	$	1,911	$	—	$	(17)	$	6,134
Natural gas revenues	—		410		583		116		—		(1)		1,108
Shared service and other revenues	—		—		—		3		489		(492)		—
Total operating revenues	$	1,913	$	1,492	$	1,828	$	2,030	$	489	$	(510)	$	7,242
2025
Electric revenues	$	2,065	$	956	$	1,012	$	1,687	$	—	$	(11)	$	5,709
Natural gas revenues	—		377		542		88		—		(2)		1,005
Shared service and other revenues	—		—		—		3		466		(469)		—
Total operating revenues	$	2,065	$	1,333	$	1,554	$	1,778	$	466	$	(482)	$	6,714
Less:
Purchased power
2026	$	451	$	451	$	630	$	850	$	—	$	—	$	2,382
2025	689		361		450		684		—		—		2,184
Purchased fuel
2026	$	—	$	161	$	178	$	55	$	—	$	—	$	394
2025	—		141		159		38		—		—		338



Operating and maintenance
2026	$	335	$	271	$	260	$	365	$	447	$	(212)	$	1,466
2025	323		266		242		296		429		(209)		1,347
Operating and maintenance from affiliates
2026	$	103	$	66	$	67	$	59	$	12	$	(307)	$	—
2025	100		61		63		53		11		(288)		—
Depreciation and amortization
2026	$	404	$	121	$	167	$	246	$	14	$	—	$	952
2025	380		109		164		234		16		—		903

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
2026	$	105	$	69	$	104	$	151	$	14	$	—	$	443
2025	99		60		96		140		10		—		405
Loss on sale of assets
2026	$	—	$	—	$	—	$	—	$	—	$	—	$	—
2025	—		—		—		1		—		—		1
Interest expense, net(c)
2026	$	132	$	69	$	62	$	105	$	180	$	—	$	548
2025	125		59		58		99		163		—		504
Interest expense to affiliates, net(c)
2026	$	3	$	2	$	—	$	1	$	—	$	1	$	7
2025	3		4		—		1		(1)		(1)		6
Other, net
2026	$	(31)	$	(11)	$	(17)	$	(18)	$	—	$	8	$	(69)
2025	(21)		(8)		(9)		(19)		(11)		16		(52)
Income taxes
2026	$	101	$	15	$	79	$	47	$	(42)	$	—	$	200
2025	65		14		71		57		(37)		—		170
Net income (loss) attributable to common shareholders
2026	$	310	$	278	$	298	$	169	$	(136)	$	—	$	919
2025	302		266		260		194		(114)		—		908
Supplemental segment information
Intersegment revenues(d)
2026	$	11	$	4	$	3	$	3	$	486	$	(507)	$	—
2025	8		3		2		2		463		(478)		—
Capital expenditures
2026	$	885	$	469	$	437	$	558	$	9	$	—	$	2,358
2025	590		424		406		513		13		—		1,946
Total assets
March 31, 2026	$	48,478	$	20,193	$	17,171	$	29,657	$	6,380	$	(4,334)	$	117,545
December 31, 2025	48,285		19,362		17,184		29,715		6,170		(4,146)		116,570

(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:


	Pepco		DPL		ACE		Other(a)		Intersegment Eliminations		PHI
Operating revenues(b):
2026
Electric revenues	$	989	$	506	$	421	$	—	$	(5)	$	1,911
Natural gas revenues	—		116		—		—		—		116
Shared service and other revenues	—		—		—		110		(107)		3

Combined Notes to Consolidated Financial Statements — (Continued)

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

Note 4 — Segment Information


Total operating revenues	$	989	$	622	$	421	$	110	$	(112)	$	2,030
2025
Electric revenues	$	859	$	460	$	373	$	—	$	(5)	$	1,687
Natural gas revenues	—		88		—		—		—		88
Shared service and other revenues	—		—		—		106		(103)		3
Total operating revenues	$	859	$	548	$	373	$	106	$	(108)	$	1,778
Less:
Purchased power
2026	$	411	$	234	$	205	$	—	$	—	$	850
2025	318		209		157		—		—		684
Purchased fuel
2026	$	—	$	55	$	—	$	—	$	—	$	55
2025	—		38		—		—		—		38



Operating and maintenance
2026	$	151	$	71	$	50	$	93	$	—	$	365
2025	96		60		51		89		—		296
Operating and maintenance from affiliates
2026	$	67	$	47	$	43	$	14	$	(112)	$	59
2025	63		46		39		13		(108)		53
Depreciation and amortization
2026	$	114	$	66	$	65	$	1	$	—	$	246
2025	105		63		64		2		—		234
Taxes other than income taxes
2026	$	118	$	26	$	2	$	5	$	—	$	151
2025	113		21		2		4		—		140
Loss on sale of assets
2026	$	—	$	—	$	—	$	—	$	—	$	—
2025	1		—		—		—		—		1
Interest expense, net(c)
2026	$	55	$	27	$	22	$	1	$	—	$	105
2025	52		25		21		1		—		99
Interest expense to affiliates, net(c)
2026	$	—	$	—	$	—	$	1	$	—	$	1
2025	—		—		—		1		—		1
Other, net
2026	$	(11)	$	(4)	$	(2)	$	(1)	$	—	$	(18)
2025	(11)		(4)		(3)		(1)		—		(19)
Income taxes
2026	$	16	$	23	$	9	$	(1)	$	—	$	47
2025	25		21		11		—		—		57
Net income (loss) attributable to common shareholders
2026	$	68	$	77	$	27	$	(3)	$	—	$	169
2025	97		69		31		(3)		—		194
Supplemental segment information
Intersegment revenues(d)
2026	$	2	$	2	$	1	$	110	$	(112)	$	3
2025	2		2		1		106		(109)		2
Capital expenditures

Combined Notes to Consolidated Financial Statements — (Continued)

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

Note 4 — Segment Information


2026	$	285	$	147	$	122	$	4	$	—	$	558
2025	240		156		105		12		—		513
Total assets
March 31, 2026	$	12,632	$	6,798	$	5,685	$	4,618	$	(76)	$	29,657
December 31, 2025	12,728		6,789		5,632		4,602		(36)		29,715

(a)Other primarily includes PHI’s corporate operations, shared service entities, and other financing and investment activities.

(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 March 31, 2026
Revenues from contracts with customers	ComEd		PECO		BGE		PHI		Pepco		DPL		ACE
Electric revenues
Residential	$	1,024	$	725	$	818	$	1,096	$	507	$	331	$	258
Small commercial & industrial	484		172		130		191		54		69		68
Large commercial & industrial	120		87		180		395		321		30		44
Public authorities & electric railroads	12		8		8		19		10		4		5
Other(a)	249		77		117		232		93		77		64
Total electric revenues(b)	$	1,889	$	1,069	$	1,253	$	1,933	$	985	$	511	$	439
Natural gas revenues
Residential	$	—	$	286	$	401	$	74	$	—	$	74	$	—
Small commercial & industrial	—		96		63		29		—		29		—
Large commercial & industrial	—		—		93		4		—		4		—
Transportation	—		20		—		5		—		5		—
Other(c)	—		7		31		4		—		4		—
Total natural gas revenues(d)	$	—	$	409	$	588	$	116	$	—	$	116	$	—
Total revenues from contracts with customers	$	1,889	$	1,478	$	1,841	$	2,049	$	985	$	627	$	439
Other revenues
Revenues from alternative revenue programs	$	8	$	5	$	(22)	$	(23)	$	1	$	(6)	$	(18)
Other electric revenues(e)	16		8		6		4		3		1		—
Other natural gas revenues(e)	—		1		3		—		—		—		—

Total other revenues	$	24	$	14	$	(13)	$	(19)	$	4	$	(5)	$	(18)
Total revenues for reportable segments	$	1,913	$	1,492	$	1,828	$	2,030	$	989	$	622	$	421

Combined Notes to Consolidated Financial Statements — (Continued)

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

Note 4 — Segment Information



	Three Months Ended March 31, 2025
Revenues from contracts with customers	ComEd		PECO		BGE		PHI		Pepco		DPL		ACE
Electric revenues
Residential	$	993	$	631	$	648	$	918	$	424	$	298	$	196
Small commercial & industrial	600		162		109		169		51		64		54
Large commercial & industrial	296		84		144		367		289		28		50
Public authorities & electric railroads	17		8		8		17		8		4		5
Other(a)	236		76		113		223		86		71		68
Total electric revenues(b)	$	2,142	$	961	$	1,022	$	1,694	$	858	$	465	$	373
Natural gas revenues
Residential	$	—	$	267	$	378	$	56	$	—	$	56	$	—
Small commercial & industrial	—		86		63		21		—		21		—
Large commercial & industrial	—		—		96		3		—		3		—
Transportation	—		13		—		5		—		5		—
Other(c)	—		10		24		3		—		3		—
Total natural gas revenues(d)	$	—	$	376	$	561	$	88	$	—	$	88	$	—
Total revenues from contracts with customers	$	2,142	$	1,337	$	1,583	$	1,782	$	858	$	553	$	373
Other revenues
Revenues from alternative revenue programs	$	(85)	$	(9)	$	(29)	$	(3)	$	2	$	(5)	$	—
Other electric revenues(e)	8		4		—		(1)		(1)		—		—
Other natural gas revenues(e)	—		1		—		—		—		—		—

Total other revenues	$	(77)	$	(4)	$	(29)	$	(4)	$	1	$	(5)	$	—
Total revenues for reportable segments	$	2,065	$	1,333	$	1,554	$	1,778	$	859	$	548	$	373

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

(b)Includes operating revenues from affiliates in 2026 and 2025 respectively of:

$11 million, $8 million at ComEd
$4 million, $2 million at PECO
$2 million, $1 million at BGE
$3 million, $2 million at PHI
$2 million, $2 million at Pepco
$2 million, $2 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 2026 and 2025 respectively of:

less than $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 March 31, 2026
	Exelon		ComEd		PECO		BGE(b)		PHI		Pepco		DPL(c)		ACE
Balance at December 31, 2025	$	435	$	115	$	137	$	68	$	115	$	69	$	19	$	27
Plus: Current period provision for expected credit losses	148		32		39		43		34		17		8		9
Less: Write-offs, net of recoveries(a)	61		17		16		10		18		10		3		5
Balance at March 31, 2026	$	522	$	130	$	160	$	101	$	131	$	76	$	24	$	31

	Three Months Ended March 31, 2025
	Exelon		ComEd		PECO		BGE		PHI		Pepco		DPL		ACE
Balance at December 31, 2024	$	406	$	109	$	133	$	56	$	108	$	59	$	17	$	32
Plus: Current period provision for expected credit losses	133		33		41		23		36		17		10		9
Less: Write-offs, net of recoveries	53		17		14		7		15		7		4		4
Balance at March 31, 2025	$	486	$	125	$	160	$	72	$	129	$	69	$	23	$	37

(a)Recoveries were not material to the Registrants.

(b)For BGE, the increase in current period provision for expected credit losses when comparing to the three months ended March 31, 2025, is primarily a result of increased receivable balances.

(c)For DPL, the decrease in current period provision for expected credit losses when comparing to the three months ended March 31, 2025, is primarily a result of favorable customer payment behavior.

The following tables present the rollforward of Allowance for Credit Losses on Other Accounts Receivable.


	Three Months Ended March 31, 2026
	Exelon		ComEd		PECO		BGE		PHI		Pepco		DPL		ACE(b)
Balance at December 31, 2025	$	94	$	23	$	18	$	4	$	49	$	26	$	10	$	13
Plus: Current period provision for expected credit losses	17		8		6		1		2		1		1		—
Less: Write-offs, net of recoveries(a)	9		4		2		1		2		1		—		1
Balance at March 31, 2026	$	102	$	27	$	22	$	4	$	49	$	26	$	11	$	12

	Three Months Ended March 31, 2025
	Exelon		ComEd		PECO		BGE		PHI		Pepco		DPL		ACE
Balance at December 31, 2024	$	107	$	34	$	18	$	6	$	49	$	27	$	9	$	13
Plus: Current period provision for expected credit losses	15		2		9		1		3		—		—		3
Less: Write-offs, net of recoveries	9		2		5		1		1		—		—		1
Balance at March 31, 2025	$	113	$	34	$	22	$	6	$	51	$	27	$	9	$	15

(a)Recoveries were not material to the Registrants.

(b)For ACE, the decrease in current period provision for expected credit losses when comparing to the three months ended March 31, 2025, is primarily a result of decreased aged receivables.

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 March 31, 2026 and December 31, 2025.


	Unbilled customer revenues(a)
	Exelon		ComEd		PECO		BGE		PHI		Pepco		DPL		ACE
March 31, 2026	$	873	$	246	$	206	$	211	$	210	$	107	$	59	$	44
December 31, 2025	1,231		301		278		325		327		155		100		72

(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 three months ended March 31, 2026 and 2025, the Utility Registrants were required, under separate legislation and regulations in Illinois, Pennsylvania, Maryland, District of Columbia, Delaware, and New Jersey, to purchase certain receivables from alternative retail electric and, as applicable, natural gas suppliers that participated in the utilities' consolidated billing. The following table presents the total receivables purchased.


	Total receivables purchased
	Exelon		ComEd		PECO		BGE		PHI		Pepco		DPL		ACE
Three months ended March 31, 2026	$	1,310	$	304	$	411	$	188	$	407	$	262	$	76	$	69
Three months ended March 31, 2025	1,138		253		334		225		326		201		68		57

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 March 31, 2026(a)(b)
	Exelon				ComEd				PECO(c)				BGE
U.S. Federal statutory rate	$	235	21.0	%	$	86	21.0	%	$	62	21.0	%	$	79	21.0	%
Increase (decrease) due to:
State income taxes, net of Federal income tax benefit	64		5.7		30		7.3		(3)		(1.0)		23		6.1
Tax credits	(3)		(0.3)		(1)		(0.2)		—		—		(1)		(0.3)
Change in Unrecognized Tax Benefits	(17)		(1.5)		(2)		(0.5)		—		—		(1)		(0.3)
Nontaxable or nondeductible items	10		0.9		1		0.1		—		—		—		—
Other Adjustments
Plant Basis differences	(53)		(4.7)		(5)		(1.2)		(39)		(13.2)		(8)		(2.1)
Excess deferred tax	(35)		(3.1)		(8)		(1.9)		(5)		(1.7)		(13)		(3.4)
Amortization of ITC, net deferred taxes	(1)		(0.1)		—		—		—		—		—		—
Effective Tax Rate	$	200	17.9	%	$	101	24.6	%	$	15	5.1	%	$	79	21.0	%

Combined Notes to Consolidated Financial Statements — (Continued)

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

Note 6 — Income Taxes


	Three Months Ended March 31, 2026(a)(b)
	PHI				PEPCO				DPL				ACE
U.S. Federal statutory rate	$	45	21.0	%	$	18	21.0	%	$	21	21.0	%	$	8	21.0	%
Increase (decrease) due to:
State income taxes, net of Federal income tax benefit	14		6.5		5		6.0		6		6.0		3		8.3
Tax credits	(1)		(0.5)		—		—		—		—		—		—
Change in Unrecognized Tax Benefits	—		—		—		—		—		—		—
Nontaxable or nondeductible items	—		—		—		—		—		—		—		—
Other Adjustments
Plant Basis differences	(2)		(0.9)		(1)		(1.2)		(1)		(1.0)		—		—
Excess deferred tax	(9)		(4.3)		(6)		(6.8)		(3)		(3.0)		(2)		(4.3)
Amortization of ITC, net deferred taxes	—		—		—		—		—		—		—		—
Effective Tax Rate	$	47	21.8	%	$	16	19.0	%	$	23	23.0	%	$	9	25.0	%


	Three Months Ended March 31, 2025(a)(b)
	Exelon				ComEd(d)				PECO(c)				BGE
U.S. Federal statutory rate	$	227	21.0	%	$	77	21.0	%	$	59	21.0	%	$	70	21.0	%
Increase (decrease) due to:
State income taxes, net of Federal income tax benefit	57		5.3		28		7.6		(10)		(3.6)		21		6.3
Tax credits	(5)		(0.5)		(2)		(0.5)		—		—		(1)		(0.3)
Nontaxable or nondeductible items	4		0.5		1		0.2		—		—		—		—
Other Adjustments
Plant Basis differences	(42)		(3.9)		(4)		(1.1)		(31)		(11.0)		(5)		(1.5)
Excess deferred tax	(70)		(6.5)		(35)		(9.5)		(4)		(1.4)		(14)		(4.0)
Amortization of ITC, net deferred taxes	(1)		(0.1)		—		—		—		—		—		—
Effective Tax Rate	$	170	15.8	%	$	65	17.7	%	$	14	5.0	%	$	71	21.5	%


	Three Months Ended March 31, 2025(a)(b)
	PHI				PEPCO				DPL				ACE
U.S. Federal statutory rate	$	53	21.0	%	$	26	21.0	%	$	19	21.0	%	$	9	21.0	%
Increase (decrease) due to:
State income taxes, net of Federal income tax benefit	16		6.4		8		6.6		6		6.7		3		7.1
Tax credits	(1)		(0.4)		(1)		(0.8)		—		—		—		—
Nontaxable or nondeductible items	1		0.5		—		—		—		—		—		—
Other Adjustments
Plant Basis differences	(2)		(0.8)		(1)		(0.8)		(1)		(1.1)		—		0.5
Excess deferred tax	(10)		(4.0)		(7)		(5.5)		(3)		(3.3)		(1)		(2.4)
Amortization of ITC, net deferred taxes	—		—		—		—		—		—		—		—
Effective Tax Rate	$	57	22.7	%	$	25	20.5	%	$	21	23.3	%	$	11	26.2	%

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

(b)Exelon and Registrants had no adjustments to the following disclosure categories: Foreign Tax Effects, Effects of Changes in Tax Law or Rates Enacted in the Current Period, Effects of Cross-Border Tax Laws, and Changes in Valuation Allowances.

(c)For PECO, the lower effective tax rate is primarily related to state income taxes, net of federal income tax benefit and plant basis differences attributable to tax repair deductions.

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

Combined Notes to Consolidated Financial Statements — (Continued)

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

Note 6 — Income Taxes

State and local Income Tax (Major Jurisdictions)

The state and local jurisdictions that comprise the majority of the effect of the state and local income tax, net of federal income taxes category by Registrant are presented below:


	2026	2025
Exelon	IL, MD	IL, MD
ComEd	IL	IL
PECO	PA	PA
BGE	MD	MD
PHI	MD, NJ	MD, NJ
Pepco	MD	MD
DPL	DE	DE
ACE	NJ	NJ

Unrecognized Tax Benefits

Exelon, PHI and DPL have the following unrecognized tax benefits at March 31, 2026 and December 31, 2025. ComEd's, PECO's, BGE's, Pepco's, and ACE's amounts are not material.


	Exelon(a)		PHI		DPL
March 31, 2026	$	85	$	50	$	14
December 31, 2025	100		48		12

(a)At March 31, 2026 and December 31, 2025, Exelon's unrecognized tax benefits is inclusive of $20 million related to Constellation's share of unrecognized tax benefits for periods prior to the separation. Exelon reflected an offsetting receivable of $20 million in Other deferred debits and other assets in the Consolidated Balance Sheet for these amounts.

Other Tax Matters

Tax Matters Agreement (Exelon)

In February 2022, in connection with the separation between Exelon and Constellation, the parties entered into a TMA. The TMA governs the respective rights, responsibilities, and obligations between Exelon and Constellation after the separation with respect to tax liabilities, refunds and attributes for open tax years that Constellation was part of Exelon’s consolidated group for U.S. federal, state, and local tax purposes.

Indemnification for Taxes. As a former subsidiary of Exelon, Constellation has joint and several liability with Exelon to the IRS and certain state jurisdictions relating to the taxable periods prior to the separation. The TMA specifies that Constellation is liable for their share of taxes required to be paid by Exelon with respect to taxable periods prior to the separation to the extent Constellation would have been responsible for such taxes under the Exelon tax sharing agreement when Constellation was included in Exelon's consolidated group. At March 31, 2026, 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 Exelon tax sharing agreement when Constellation was included in Exelon's consolidated group. At March 31, 2026, there is no balance due to or from Constellation.

Tax Attributes. At the date of separation certain tax attributes, primarily pre-separation tax credit carryforwards, that were generated by Constellation were required by law to be allocated to Exelon. The TMA provides that Exelon will reimburse Constellation when those allocated tax attribute carryforwards are utilized. In 2026, Exelon received $235 million of payments from Constellation as reimbursement for a reduction in previously utilized pre-separation tax credit carryforwards due to amended federal tax returns filed in Q1 2026. At March 31, 2026, Exelon recorded a payable of $58 million and $373 million in Other current liabilities and Other deferred credits

Combined Notes to Consolidated Financial Statements — (Continued)

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

Note 6 — Income Taxes

and other liabilities, respectively, in the Consolidated Balance Sheet for tax attribute carryforwards that are expected to be utilized and reimbursed to Constellation.

Corporate Alternative Minimum Tax (All Registrants)

On August 16, 2022, the IRA was signed into law and implements a new corporate alternative minimum tax (CAMT) that imposes a 15.0% tax on modified GAAP net income. Corporations will now pay the greater of 15.0% of financial statement pre-tax income (with certain adjustments) or their regular federal tax liability, which is federal taxable income multiplied by 21.0% federal corporate tax rate. Corporations are entitled to a tax credit (minimum tax credit) to the extent the CAMT liability exceeds the regular tax liability. This amount can be carried forward indefinitely and used in future years when regular tax exceeds the CAMT.

For the years ended December 31, 2025, December 31, 2024, and December 31, 2023, based on the existing guidance in effect at that time, Exelon and each of the Utility Registrants were subject to and reported the CAMT on a separate Registrant basis in the Consolidated Statements of Operations and Comprehensive Income and the Consolidated Balance Sheets.

On February 18, 2026, the U.S. Treasury issued guidance addressing the implementation of CAMT in the form of a notice. The new guidance permits corporate taxpayers to deduct repair and maintenance costs in the calculation of their CAMT liabilities. The notice applies retroactively, permitting Exelon to file amended returns for both 2024 and 2023 to reduce its CAMT liability by $80 million. Pursuant to the TMA, Exelon received reimbursement from Constellation for $235 million due to the reduction in the amount of Constellation's tax credits needed to offset Exelon's CAMT liability on its amended returns.

The impact of the notice was recorded as of March 31, 2026.

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.

7. Retirement Benefits (All Registrants)

Defined Benefit Pension and OPEB

The majority of the 2026 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 5.42%. The majority of the 2026 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 5.34%.

During the first quarter of 2026, Exelon received an updated valuation of its pension and OPEB to reflect actual census data as of January 1, 2026. This valuation resulted in an increase to the pension obligation of $6 million and an increase to the OPEB obligation of $10 million and a decrease to the asset of $2 million, respectively. Additionally, AOCI decreased by $4 million (after-tax) and regulatory assets increased by $23 million and liabilities increased by $1 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 months ended March 31, 2026 and 2025.

Combined Notes to Consolidated Financial Statements — (Continued)

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

Note 7 — Retirement Benefits


	Pension Benefits				OPEB
	Three Months Ended March 31,				Three Months Ended March 31,
	2026		2025		2026		2025
Components of net periodic benefit cost
Service cost	$	40	$	38	$	7	$	6
Interest cost	143		146		25		25
Expected return on assets	(176)		(178)		(22)		(21)
Amortization of:
Prior service cost (credit)	1		1		(2)		(2)
Actuarial loss	50		53		—		—


Net periodic benefit cost	$	58	$	60	$	8	$	8

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


	Three Months Ended March 31,
Pension and OPEB Costs		2026		2025
Exelon		$	65	$	68
ComEd		27		21
PECO		4		2
BGE		7		16
PHI		20		25
Pepco		7		8
DPL		4		4
ACE		2		3

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 months ended March 31, 2026 and 2025.


	Three Months Ended March 31,
Savings Plan Employer Contributions		2026		2025
Exelon		$	32	$	26
ComEd		11		10
PECO		4		4
BGE		3		3
PHI		5		5
Pepco		1		1
DPL		1		1
ACE		1		1

Combined Notes to Consolidated Financial Statements — (Continued)

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

Note 8 — Derivative Financial Instruments

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 (All Registrants)

The Utility Registrants employ established policies and procedures to manage their risks associated with market fluctuations in commodity prices by entering into physical and financial derivative contracts, which are either determined to be non-derivative or classified as economic hedges. The Utility Registrants procure electric and natural gas supply through a competitive procurement process approved by each of the respective state utility commissions. The Utility Registrants’ hedging programs are intended to reduce exposure to energy and natural gas price volatility and have no direct earnings impact as the costs are fully recovered from customers through regulatory-approved recovery mechanisms. The following table provides a summary of the Utility Registrants’ primary derivative hedging instruments, listed by commodity and accounting treatment.


Registrant	Commodity	Accounting Treatment	Hedging Instrument
ComEd	Electricity	NPNS	Fixed price contracts based on all requirements in the IPA procurement plans.
Electricity	Changes in fair value of economic hedge recorded to an offsetting regulatory asset or liability(a)	20-year floating-to-fixed energy swap contracts beginning June 2012 based on the renewable energy resource procurement requirements in the Illinois Settlement Legislation of approximately 1.3 million MWhs per year.
PECO	Electricity	NPNS	Fixed price contracts for default supply requirements through full requirements contracts.
Gas	NPNS	Fixed price contracts to cover about 10% of planned natural gas purchases in support of projected firm sales.
BGE	Electricity	NPNS	Fixed price contracts for all SOS requirements through full requirements contracts.
Gas	NPNS	Fixed price purchases associated with forecasted gas supply requirements.
Pepco	Electricity	NPNS	Fixed price contracts for all SOS requirements through full requirements contracts.
DPL	Electricity	NPNS	Fixed price contracts for all SOS requirements through full requirements contracts.
Gas	NPNS	Fixed and index priced contracts through full requirements contracts.
Gas	Changes in fair value of economic hedge recorded to an offsetting regulatory asset or liability(b)	Exchange traded future contracts for up to 50% of estimated monthly purchase requirements each month, including purchases for storage injections.
ACE	Electricity	NPNS	Fixed price contracts for all BGS requirements through full requirements contracts.

(a)See Note 2 — Regulatory Matters of the 2025 Form 10-K for additional information.

Combined Notes to Consolidated Financial Statements — (Continued)

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

Note 8 — Derivative Financial Instruments

(b)The fair value of the DPL economic hedge is not material at March 31, 2026 and December 31, 2025.

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 March 31, 2026 would result in an immaterial impact to Exelon's Consolidated Net income.

Below is a summary of the interest rate hedge balances at March 31, 2026 and December 31, 2025.


	Derivatives Designated as Hedging Instruments
	March 31, 2026		December 31, 2025
Other current assets	$	—	$	3
Other deferred debits (noncurrent assets)	2		—
Total derivative assets	2		3
Mark-to-market derivative liabilities (current liabilities)	—		(4)
Mark-to-market derivative liabilities (noncurrent liabilities)	(1)		—
Total mark-to-market derivative liabilities	(1)		(4)
Total mark-to-market derivative net assets (liabilities)	$	1	$	(1)

Cash Flow Hedges (Interest Rate Risk)

For derivative instruments that qualify and are designated as cash flow hedges, the changes in fair value each period are initially recorded in AOCI and reclassified into earnings when the underlying transaction affects earnings. The gains and losses reclassified out of AOCI for the three months ended March 31, 2026 and 2025 are immaterial.

In February 2026, Exelon terminated the previously issued floating-to-fixed swaps with a total notional of $550 million upon issuance of $775 million of debt. See Note 9 – Debt and Credit Agreements for additional information on the debt issuance. The settlements resulted in a net cash payment of $6 million. The accumulated AOCI loss of $4 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 first quarter of 2026, Exelon Corporate entered into $30 million notional of 10-year maturity floating-to-fixed swaps designated as cash flow hedges. The following table provides the notional amounts outstanding held by Exelon at March 31, 2026 and December 31, 2025.


	March 31, 2026		December 31, 2025
5-year maturity floating-to-fixed swaps	$	60	$	335
10-year maturity floating-to-fixed swaps	120		365
Total	$	180	$	700

The related AOCI derivative gain for the three months ended March 31, 2026 was $1 million (net of tax). The related AOCI derivative loss for the three months ended March 31, 2025 was $9 million (net of tax). See Note 13 – Changes in Accumulated Other Comprehensive Income (Loss) for additional information.

Credit Risk (All Registrants)

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

Combined Notes to Consolidated Financial Statements — (Continued)

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

Note 8 — Derivative Financial Instruments

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 March 31, 2026. 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, at March 31, 2026 and December 31, 2025:


	March 31, 2026		December 31, 2025
Exelon	$	217	$	223
ComEd	192		192
PECO	6		6
BGE	8		4
PHI	11		21
Pepco	1		13
DPL	10		3
ACE(a)	—		5

(a)ACE had less than one million in cash collateral with external parties at March 31, 2026.

The Utility Registrants’ electric supply procurement contracts do not contain provisions that would require them to post collateral. PECO’s, BGE’s, and DPL’s natural gas procurement contracts contain provisions that could require PECO, BGE, and DPL to post collateral in the form of cash or credit support, which vary by contract and counterparty, with thresholds contingent upon PECO's, BGE's, and DPL's credit rating. As of March 31, 2026, 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 March 31, 2026, they could have been required to post collateral to their counterparties of $38 million, $20 million, and $23 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 March 31, 2026 and December 31, 2025.


	Outstanding Commercial Paper at				Average Interest Rate on Commercial Paper Borrowings at
Commercial Paper Issuer	March 31, 2026		December 31, 2025		March 31, 2026		December 31, 2025
Exelon(a)	$	165	$	612	3.94	%	3.94	%
ComEd	$	46	$	—	3.93	%	—	%
PECO	$	—	$	—	—	%	—	%
BGE	$	—	$	—	—	%	—	%
PHI(b)	$	119	$	612	3.95	%	3.94	%

Pepco	$	73	$	303	3.94	%	3.93	%
DPL	$	46	$	161	3.96	%	3.94	%
ACE	$	—	$	148	—	%	3.94	%

Combined Notes to Consolidated Financial Statements — (Continued)

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

Note 9 — Debt and Credit Agreements

(a)Exelon Corporate had no outstanding commercial paper borrowings at March 31, 2026 and no outstanding commercial paper borrowings at December 31, 2025.

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

Revolving Credit Agreements

On August 29, 2024, Exelon Corporate and each of the Utility Registrants amended and restated their respective syndicated revolving credit facility, extending the maturity date to August 29, 2029. The following table reflects the credit agreements:


Borrower	Aggregate Bank Commitment		Interest Rate
Exelon Corporate	$	900	SOFR plus 1.075%
ComEd	$	1,000	SOFR plus 1.000%
PECO	$	600	SOFR plus 0.900%
BGE	$	600	SOFR plus 0.900%
Pepco	$	300	SOFR plus 1.000%
DPL	$	300	SOFR plus 1.000%
ACE	$	300	SOFR plus 1.000%

Exelon Corporate and the Utility Registrants had no outstanding amounts on the revolving credit facilities as of March 31, 2026.

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. On October 3, 2025, the Utility Registrants amended and extended their credit facilities at community banks. Previously structured as one-year arrangements, the facilities are now two-year terms. These facilities expire on October 1, 2027.

See Note 14 — Debt and Credit Agreements of the 2025 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. Exelon Corporate repaid the term loans on December 5, 2025.

On March 25, 2026, Exelon Corporate entered into two term loan agreements for $350 million and $150 million. Both agreements mature on March 24, 2027. Pursuant to the loan agreements, loans made thereunder bear interest at a variable rate equal to SOFR plus 0.85% and all indebtedness thereunder is unsecured. The loans are reflected in Exelon's Consolidated Balance Sheet within Short-term borrowings.

Long-Term Debt

Issuance of Long-Term Debt

Combined Notes to Consolidated Financial Statements — (Continued)

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

Note 9 — Debt and Credit Agreements

During the three months ended March 31, 2026, the following long-term debt was issued:


Company	Type	Interest Rate	Maturity	Amount	Use of Proceeds
Exelon	Senior Notes	4.95%	March 15, 2036	$775	Repay existing indebtedness and for general corporate purposes.
Pepco	First Mortgage Bonds	5.00%	March 19, 2036	110	Repay existing indebtedness and for general corporate purposes.
Pepco	First Mortgage Bonds	5.30%	March 19, 2041	60	Repay existing indebtedness and for general corporate purposes.

DPL	First Mortgage Bonds	5.74%	March 19, 2056	75	Repay existing indebtedness and for general corporate purposes.
ACE	First Mortgage Bonds	4.95%	March 19, 2036	100	Repay existing indebtedness and for general corporate purposes.

Convertible Senior Notes

On December 4, 2025, Exelon Corporation issued $1 billion aggregate principal amount of 3.25% Convertible Senior Notes due 2029 (Convertible Senior Notes). The Convertible Senior Notes are reflected as Long-term debt on Exelon’s Consolidated Balance Sheet.

The Convertible Senior Notes are senior, unsecured notes that bear interest at a fixed rate of 3.25% per year, payable semiannually in arrears on March 15 and September 15 of each year, beginning on September 15, 2026. The Convertible Senior Notes will mature on March 15, 2029, unless earlier converted or repurchased in accordance with their terms.

Under the following circumstances, holders may convert the Convertible Senior Notes at their option prior to the close of business on the business day preceding December 15, 2028:

during any calendar quarter beginning after the quarter ending on March 31, 2026, if the last reported sale price of Exelon’s common stock for at least 20 trading days (whether consecutive or not) during the period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter is greater than or equal the stock was trading at greater than or equal to 130% of the conversion price on each applicable trading day as determined by Exelon;
during the five business day period after any ten consecutive trading day period (measurement period) in which the applicable trading price per $1,000 principal amount of notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of the common stock and the conversion rate on each such trading day;
upon the occurrence of certain corporate events specified in the respective supplemental indentures governing the Convertible Senior Notes.

On or after December 15, 2028, a holder may convert for all, or any portion of its Convertible Senior Notes at any time prior to the close of business on the business day immediately preceding the applicable maturity date regardless of the foregoing conditions.

Exelon will settle conversions of the Convertible Senior Notes by paying cash up to the aggregate principal amount to be converted and paying or delivering, as the case may be, cash, shares of common stock, or a combination of cash and shares of common stock, at Exelon’s discretion, in respect of the remainder, if any, of Exelon's conversion obligation in excess of the aggregate principal amount of the Convertible Senior Notes being converted. The Convertible Senior Notes are initially convertible at 17.5093 shares per $1,000 principal amount, which is equivalent to an initial conversion price of approximately 57.11 per share of common stock. The initial conversion price of the Convertible Senior Notes represents a premium of approximately 25% over the last reported sale price of Exelon’s common stock on the Nasdaq Global Select Market on December 1, 2025. These conversions will be subject to adjustment upon the occurrence of certain specified events but will not be adjusted for accrued and unpaid interest. In addition, upon the occurrence of a make-whole fundamental change (as defined in the indenture) Exelon will, in certain circumstances, increase the applicable conversion rate by a number of additional shares of common stock for conversions in connection with the make-whole fundamental change.

As of March 31, 2026, no shares of the Convertible Senior Notes have been converted.

Combined Notes to Consolidated Financial Statements — (Continued)

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

Note 9 — Debt and Credit Agreements

EPS Impact

Diluted earnings per common shares will also reflect the dilutive effect of potential common shares from share-based awards and convertible notes. The dilutive effect of the Convertible Senior Notes is computed using the if-converted method. For the period ended March 31, 2026, no incremental shares were assumed converted or included in the diluted earnings per common share resulting from the Convertible Senior Notes.

Tax-Exempt Bonds

As of March 31, 2026, DPL had $78.4 million outstanding of its 3.60% Delaware Economic Development Authority's Gas Facilities Refunding Revenue Bonds, maturing on January 1, 2031. The bonds were previously reoffered in July 2025. There have been no material changes to the terms since December 31, 2025. See Note 14 — Debt and Credit Agreements of the 2025 Form 10-K for additional information on the DPL reoffering of tax-exempt bonds.

Debt Covenants

As of March 31, 2026, the Registrants are in compliance with debt covenants.

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 15 — Fair Value of Financial Assets and Liabilities of the 2025 Form 10-K.

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

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 March 31, 2026 and December 31, 2025. 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.


	March 31, 2026														December 31, 2025
	Carrying Amount			Fair Value											Carrying Amount		Fair Value
			Level 1			Level 2			Level 3			Total			Level 1		Level 2		Level 3		Total
Long-Term Debt, including amounts due within one year(a)
Exelon (b)	$	50,185		$	—		$	40,580		$	4,558		$	45,138	$	49,078	$	—	$	40,637	$	4,318	$	44,955
ComEd	12,755			—			11,019			—			11,019		12,753		—		11,291		—		11,291
PECO	6,397			—			5,471			—			5,471		6,396		—		5,593		—		5,593
BGE	6,042			—			5,390			—			5,390		6,041		—		5,510		—		5,510
PHI	9,928			—			4,151			4,558			8,709		9,590		—		4,236		4,318		8,554
Pepco	4,802			—			2,484			1,990			4,474		4,632		—		2,546		1,861		4,407
DPL	2,421			—			644			1,446			2,090		2,344		—		657		1,410		2,067
ACE	2,133			—			812			1,123			1,935		2,033		—		819		1,047		1,866
Long-Term Debt to Financing Trusts
Exelon	$	390		$	—		$	—		$	398		$	398	$	390	$	—	$	—	$	403	$	403
ComEd	206			—			—			212			212		206		—		—		216		216
PECO	184			—			—			186			186		184		—		—		187		187

(a)Includes unamortized debt issuance costs, unamortized debt discount and premium, net, purchase accounting fair value adjustments, and finance lease liabilities which are not fair valued. Refer to Note 14 — Debt and Credit Agreements of the 2025 Form 10-K for unamortized debt issuance costs, unamortized debt discount and premium, net, and purchase accounting fair value adjustments and Note 9 — Leases of the 2025 Form 10-K for finance lease liabilities.

(b)Includes the net carrying amount and the estimated fair value (Level 2) of the Convertible Senior Notes $1 billion and $1 billion for the year ended March 31, 2026, respectively.

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 March 31, 2026 and December 31, 2025. Exelon and the Utility Registrants have immaterial and no financial assets or liabilities measured using the NAV practical expedient, respectively:

Exelon


	At March 31, 2026						At December 31, 2025
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets
Cash equivalents(a)	$	945	$	—	$	—	$	945	$	825	$	—	$	—	$	825
Rabbi trust investments
Cash equivalents	103		—		—		103		101		—		—		101
Mutual funds	72		—		—		72		71		—		—		71
Fixed income	—		6		—		6		—		6		—		6
Life insurance contracts	—		80		21		101		—		79		21		100
Rabbi trust investments subtotal	175		86		21		282		172		85		21		278

Interest rate derivative assets
Derivatives designated as hedging instruments	—		2		—		2		—		3		—		3

Interest rate derivative assets subtotal	—		2		—		2		—		3		—		3
Total assets	1,120		88		21		1,229		997		88		21		1,106
Liabilities
Commodity derivative liabilities	—		—		(133)		(133)		—		—		(131)		(131)
Interest rate derivative liabilities
Derivatives designated as hedging instruments	—		(1)		—		(1)		—		(4)		—		(4)

Interest rate derivative liabilities subtotal	—		(1)		—		(1)		—		(4)		—		(4)
Deferred compensation obligation	—		(68)		—		(68)		—		(71)		—		(71)
Total liabilities	—		(69)		(133)		(202)		—		(75)		(131)		(206)
Total net assets (liabilities)	$	1,120	$	19	$	(112)	$	1,027	$	997	$	13	$	(110)	$	900

(a)Exelon excludes cash of $157 million and $180 million at March 31, 2026 and December 31, 2025, respectively, and restricted cash of $195 million and $196 million at March 31, 2026 and December 31, 2025, respectively, and includes long-term restricted cash of $24 million and $50 million at March 31, 2026 and December 31, 2025, 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


	ComEd								PECO								BGE
At March 31, 2026	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets
Cash equivalents(a)	$	343	$	—	$	—	$	343	$	125	$	—	$	—	$	125	$	172	$	—	$	—	$	172
Rabbi trust investments

Mutual funds	—		—		—		—		13		—		—		13		11		—		—		11
Life insurance contracts	—		—		—		—		—		25		—		25		—		—		—		—
Rabbi trust investments subtotal	—		—		—		—		13		25		—		38		11		—		—		11

Total assets	343		—		—		343		138		25		—		163		183		—		—		183
Liabilities
Commodity derivative liabilities(b)	—		—		(133)		(133)		—		—		—		—		—		—		—		—
Deferred compensation obligation	—		(9)		—		(9)		—		(8)		—		(8)		—		(4)		—		(4)
Total liabilities	—		(9)		(133)		(142)		—		(8)		—		(8)		—		(4)		—		(4)
Total net assets (liabilities)	$	343	$	(9)	$	(133)	$	201	$	138	$	17	$	—	$	155	$	183	$	(4)	$	—	$	179


	ComEd								PECO								BGE
At December 31, 2025	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets
Cash equivalents(a)	$	393	$	—	$	—	$	393	$	93	$	—	$	—	$	93	$	205	$	—	$	—	$	205
Rabbi trust investments
Mutual funds	—		—		—		—		13		—		—		13		10		—		—		10
Life insurance contracts	—		—		—		—		—		25		—		25		—		—		—		—
Rabbi trust investments subtotal	—		—		—		—		13		25		—		38		10		—		—		10
Total assets	393		—		—		393		106		25		—		131		215		—		—		215
Liabilities
Commodity derivative liabilities(b)	—		—		(131)		(131)		—		—		—		—		—		—		—		—
Deferred compensation obligation	—		(9)		—		(9)		—		(8)		—		(8)		—		(4)		—		(4)
Total liabilities	—		(9)		(131)		(140)		—		(8)		—		(8)		—		(4)		—		(4)
Total net assets (liabilities)	$	393	$	(9)	$	(131)	$	253	$	106	$	17	$	—	$	123	$	215	$	(4)	$	—	$	211

(a)ComEd excludes cash of $69 million and $77 million at March 31, 2026 and December 31, 2025, respectively, and restricted cash of $194 million and $193 million at March 31, 2026 and December 31, 2025, respectively. Additionally, ComEd includes long-term restricted cash of $24 million and $50 million at March 31, 2026 and December 31, 2025, 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 $26 million and $23 million at March 31, 2026 and December 31, 2025, respectively. BGE excludes cash of $8 million and $15 million at March 31, 2026 and December 31, 2025, respectively.

(b)The Level 3 balance consists of the current and noncurrent liability of $22 million and $111 million, respectively, at March 31, 2026 and $25 million and $106 million, respectively, at December 31, 2025 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 March 31, 2026								At December 31, 2025
PHI	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets
Cash equivalents(a)	$	35	$	—	$	—	$	35	$	83	$	—	$	—	$	83
Rabbi trust investments
Cash equivalents	101		—		—		101		99		—		—		99
Mutual funds	9		—		—		9		9		—		—		9
Fixed income	—		6		—		6		—		6		—		6
Life insurance contracts	—		23		20		43		—		23		20		43
Rabbi trust investments subtotal	110		29		20		159		108		29		20		157
Total assets	145		29		20		194		191		29		20		240
Liabilities
Deferred compensation obligation	—		(9)		—		(9)		—		(9)		—		(9)



Total liabilities	—		(9)		—		(9)		—		(9)		—		(9)
Total net assets	$	145	$	20	$	20	$	185	$	191	$	20	$	20	$	231


	Pepco								DPL								ACE
At March 31, 2026	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets
Cash equivalents(a)	$	20	$	—	$	—	$	20	$	10	$	—	$	—	$	10	$	5	$	—	$	—	$	5




Rabbi trust investments
Cash equivalents	100		—		—		100		—		—		—		—		—		—		—		—

Life insurance contracts	—		23		20		43		—		—		—		—		—		—		—		—
Rabbi trust investments subtotal	100		23		20		143		—		—		—		—		—		—		—		—
Total assets	120		23		20		163		10		—		—		10		5		—		—		5
Liabilities
Deferred compensation obligation	—		(1)		—		(1)		—		—		—		—		—		—		—		—



Total liabilities	—		(1)		—		(1)		—		—		—		—		—		—		—		—
Total net assets	$	120	$	22	$	20	$	162	$	10	$	—	$	—	$	10	$	5	$	—	$	—	$	5

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


	Pepco								DPL								ACE
At December 31, 2025	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets
Cash equivalents(a)	$	33	$	—	$	—	$	33	$	3	$	—	$	—	$	3	$	—	$	—	$	—	$	—
Rabbi trust investments
Cash equivalents	98		—		—		98		—		—		—		—		—		—		—		—


Life insurance contracts	—		23		20		43		—		—		—		—		—		—		—		—
Rabbi trust investments subtotal	98		23		20		141		—		—		—		—		—		—		—		—
Total assets	131		23		20		174		3		—		—		3		—		—		—		—
Liabilities
Deferred compensation obligation	—		(1)		—		(1)		—		—		—		—		—		—		—		—



Total liabilities	—		(1)		—		(1)		—		—		—		—		—		—		—		—
Total net assets	$	131	$	22	$	20	$	173	$	3	$	—	$	—	$	3	$	—	$	—	$	—	$	—

(a)PHI excludes cash of $44 million and $56 million at March 31, 2026 and December 31, 2025, respectively, and restricted cash of $1 million and $2 million at March 31, 2026 and December 31, 2025. Pepco excludes cash of $20 million and $22 million at March 31, 2026 and December 31, 2025, respectively. DPL excludes cash of $12 million and $9 million at March 31, 2026 and December 31, 2025, respectively. ACE excludes cash of $7 million and $22 million at March 31, 2026 and December 31, 2025, respectively and restricted cash of $1 million and $2 million at March 31, 2026 and December 31, 2025, respectively.

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

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 months ended March 31, 2026 and 2025:



	Exelon		ComEd		PHI and Pepco
Three Months Ended March 31, 2026	Total		Commodity Derivatives		Life Insurance Contracts
Balance at December 31, 2025	$	(110)	$	(131)	$	20
Total realized / unrealized gains (losses)
Included in net income(a)	—		—		—


Included in regulatory assets/liabilities(b)	(2)		(2)		—








Balance at March 31, 2026(c)	$	(112)	$	(133)	$	20
The amount of total gains included in income attributed to the change in unrealized gains related to assets and liabilities at March 31, 2026	$	—	$	—	$	—



	Exelon		ComEd		PHI and Pepco
Three Months Ended March 31, 2025	Total		Commodity Derivatives		Life Insurance Contracts
Balance at December 31, 2024	$	(110)	$	(132)	$	21
Total realized / unrealized gains (losses)
Included in net income(a)	—		—		—

Included in regulatory assets/liabilities(b)	(19)		(19)		—








Balance at March 31, 2025(c)	$	(129)	$	(151)	$	21
The amount of total gains included in income attributed to the change in unrealized gains related to assets and liabilities at March 31, 2025	$	—	$	—	$	—

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

(b)For ComEd, this includes $10 million of decreases in fair value and an increase for realized gains due to settlements of $8 million recorded in Purchased power expense associated with floating-to-fixed energy swap contracts with unaffiliated suppliers for the three months ended March 31, 2026. Includes $30 million of decreases 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 March 31, 2025.

(c)For ComEd, the balance of the current and noncurrent asset was zero as of March 31, 2026. The balance consists of a current and noncurrent liability of $22 million and $111 million, respectively, as of March 31, 2026.

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 trade						Fair Value at March 31, 2026						Fair Value at December 31, 2025						Valuation Technique						Unobservable Input						2026 Range & Arithmetic Average															2025 Range & Arithmetic Average
Commodity derivatives						$	(133)					$	(131)					Discounted Cash Flow						Forward power price(a)						$26.72			-			$57.33			$40.28						$28.45			-			$62.87			$38.62

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

Combined Notes to Consolidated Financial Statements — (Continued)

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

Note 11 — Commitments and Contingencies

11. Commitments and Contingencies (All Registrants)

The following is an update to the current status of commitments and contingencies set forth in Note 16 — Commitments and Contingencies of the 2025 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 March 31, 2026:


Description	Exelon		PHI		Pepco		DPL		ACE
Total commitments	$	513	$	320	$	120	$	89	$	111
Remaining commitments(a)	21		19		19		—		—

(a)Remaining commitments extend through 2026 and include escrow funds 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 March 31, 2026, representing commitments potentially triggered by future events were as follows:


			Expiration within
	Total		2026		2027		2028		2029		2030		2031 and beyond
Exelon
Letters of credit(a)	$	57	$	38	$	19	$	—	$	—	$	—	$	—
Surety bonds(b)	465		185		115		165		—		—		—
Financing trust guarantees(c)	378		—		—		78		—		—		300
Guaranteed lease residual values(d)	23		—		2		6		4		4		7
Total commercial commitments	$	923	$	223	$	136	$	249	$	4	$	4	$	307

ComEd
Letters of credit(a)	$	18	$	15	$	3	$	—	$	—	$	—	$	—
Surety bonds(b)	131		37		94		—		—		—		—
Financing trust guarantees(c)	200		—		—		—		—		—		200
Total commercial commitments	$	349	$	52	$	97	$	—	$	—	$	—	$	200

PECO
Letters of credit(a)	$	5	$	3	$	2	$	—	$	—	$	—	$	—
Surety bonds(b)	10		1		9		—		—		—		—
Financing trust guarantees(c)	178		—		—		78		—		—		100
Total commercial commitments	$	193	$	4	$	11	$	78	$	—	$	—	$	100

BGE
Letters of credit(a)	$	27	$	16	$	11	$	—	$	—	$	—	$	—
Surety bonds(b)	92		2		3		87		—		—		—
Total commercial commitments	$	119	$	18	$	14	$	87	$	—	$	—	$	—

PHI
Letters of credit(a)	$	4	$	2	$	2	$	—	$	—	$	—	$	—
Surety bonds(b)	173		90		5		78		—		—		—
Guaranteed lease residual values(d)	23		—		2		6		4		4		7
Total commercial commitments	$	200	$	92	$	9	$	84	$	4	$	4	$	7

Pepco
Letters of credit(a)	$	2	$	2	$	—	$	—	$	—	$	—	$	—
Surety bonds(b)	161		82		1		78		—		—		—
Guaranteed lease residual values(d)	8		—		1		2		1		2		2
Total commercial commitments	$	171	$	84	$	2	$	80	$	1	$	2	$	2

DPL
Letters of credit(a)	$	1	$	—	$	1	$	—	$	—	$	—	$	—
Surety bonds(b)	6		3		3		—		—		—		—
Guaranteed lease residual values(d)	9		—		1		2		2		1		3
Total commercial commitments	$	16	$	3	$	5	$	2	$	2	$	1	$	3

ACE
Letters of credit(a)	$	1	$	—	$	1	$	—	$	—	$	—	$	—
Surety bonds(b)	6		5		1		—		—		—		—
Guaranteed lease residual values(d)	6		—		—		2		1		1		2
Total commercial commitments	$	13	$	5	$	2	$	2	$	1	$	1	$	2

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 $53 million guaranteed by Exelon and PHI, of which $17 million, $20 million, and $16 million is guaranteed by Pepco, DPL, and ACE, respectively. Historically, payments under the guarantees have not been made and PHI believes the likelihood of payments being required under the guarantees is remote.

Environmental Remediation Matters

General (All Registrants). The Registrants’ operations have in the past, and may in the future, require substantial expenditures to comply with environmental laws. Additionally, under federal and state environmental laws, the Registrants are generally liable for the costs of remediating environmental contamination of property now or formerly owned by them and of property contaminated by hazardous substances generated by them. The Registrants own or lease a number of real estate parcels, including parcels on which their operations or the operations of others may have resulted in contamination by substances that are considered hazardous under environmental laws. In addition, the Registrants are currently involved in a number of proceedings relating to sites where hazardous substances have been deposited and may be subject to additional proceedings in the future. Unless otherwise disclosed, the Registrants cannot reasonably estimate whether they will incur significant liabilities for additional investigation and remediation costs at these or additional sites identified by the Registrants, environmental agencies, or others, or whether such costs will be recoverable from third parties, including customers. Additional costs could have a material, unfavorable impact on the Registrants' financial statements.

MGP Sites (All Registrants). ComEd, PECO, BGE, and DPL have identified sites where former MGP or gas purification activities have or may have resulted in actual site contamination. For some sites, there are additional PRPs that may share responsibility for the ultimate remediation of each location.

ComEd has 16 sites currently under some degree of active study and/or remediation. ComEd expects the majority of the remediation at these sites to continue through at least 2033.
PECO has 5 sites currently under some degree of active study and/or remediation. PECO expects the majority of the remediation at these sites to continue through at least 2030.
BGE has 4 sites currently requiring some level of remediation and/or ongoing activity. BGE expects the majority of the remediation at these sites to continue through at least 2026.
DPL has 1 site currently under study and the required cost at the site is not expected to be material.

The historical nature of the MGP and gas purification sites, and the fact that many of the sites have been buried and built over, impacts the ability to determine a precise estimate of the ultimate costs prior to initial sampling and determination of the exact scope and method of remedial activity. Management determines its best estimate of remediation costs using all available information at the time of each study, including probabilistic and deterministic modeling for ComEd and PECO, and the remediation standards currently required by the applicable state environmental agency. Prior to performing 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 March 31, 2026 and December 31, 2025, 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:


	March 31, 2026				December 31, 2025
	Total Environmental Investigation and Remediation Liabilities		Portion of Total Related to MGP Investigation and Remediation		Total Environmental Investigation and Remediation Liabilities		Portion of Total Related to MGP Investigation and Remediation
Exelon	$	381	$	318	$	386	$	321
ComEd	289		288		289		289
PECO	22		20		23		22
BGE	13		10		13		10
PHI	57		—		57		—
Pepco	55		—		55		—
DPL	1		—		1		—
ACE	1		—		1		—

Benning Road Site (Exelon, PHI, and Pepco)****. In September 2010, PHI received a letter from the EPA identifying the Benning Road site as one of six land-based sites potentially contributing to contamination of the lower Anacostia River. A portion of the site, which is owned by Pepco, was formerly the location of an electric generating facility owned by Pepco subsidiary, Pepco Energy Services (PES), which became a part of Constellation following the 2016 merger between PHI and Exelon. This generating facility was deactivated in June 2012. The remaining portion of the site consists of a Pepco transmission and distribution service center that remains in operation. In December 2011, the U.S. District Court for the District of Columbia approved a Consent Decree entered into by Pepco and Pepco Energy Services (hereinafter "Pepco Entities") with the DOEE, which requires the Pepco Entities to conduct a Remedial Investigation and Feasibility Study (RI/FS) for the Benning Road site and an approximately 10 to 15-acre portion of the adjacent Anacostia River. The purpose of this RI/FS is to define the nature and extent of contamination from the Benning Road site and to evaluate remedial alternatives.

Pursuant to an internal agreement between the Pepco Entities, since 2013, Pepco has performed the work required by the Consent Decree and has been reimbursed for that work by an agreed upon allocation of costs between the Pepco Entities. In September 2019, the Pepco Entities issued a draft “final” RI report which the DOEE approved on February 3, 2020. In October 2022, the DOEE approved dividing the work to complete the landside portion of the FS from the waterside portion to expedite the overall schedule for completion of the project. The landside FS was approved by the DOEE on March 15th, 2024, and the waterside FS was approved by the DOEE on December 16, 2024. The DOEE and Pepco entered into an addendum to the Benning Consent Decree pursuant to which Pepco has agreed to fund or perform the remedial actions to be selected by the DOEE for the landside and waterside areas. This addendum to the Benning Consent Decree was entered by the Court on February 27, 2024 and became effective on that date. Pepco drafted separate proposed plans for the landside and waterside areas, which were approved and issued by the DOEE for public comment on December 16, 2024 and September 4, 2025, respectively. The public comment period for the landside and waterside areas closed on April 18, 2025 and October 31, 2025, respectively. Pepco submitted a matrix of proposed responses to the public comments and a proposed Record of Decision (ROD) to the DOEE for the landside area on August 15, 2025. Following the close of the waterside area comment period, Pepco will submit a matrix of proposed responses to the public comments and a proposed ROD to the DOEE for the waterside area. The DOEE will issue RODs identifying the remedial actions determined to be necessary for the landside and waterside areas, which will be implemented by Pepco in accordance with the Benning Consent Decree.

As part of the separation between Exelon and Constellation in February 2022, the internal agreement between the Pepco Entities for completion and payment for the remaining Consent Decree work was memorialized in a formal agreement for post-separation activities. A second post-separation assumption agreement between Exelon and Constellation transferred any of the potential remaining remediation liability, if any, of PES/Constellation to a non-utility subsidiary of Exelon which going forward will be responsible for those liabilities. 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, and the second installment of $12 million on April 7, 2026. The funds were deposited into the DOEE’s Clean Land Fund for the District’s costs of the Interim ROD work. The Anacostia River Consent Decree caps Pepco’s liability for these costs and provides Pepco with the right to seek contributions from other PRPs. The Anacostia River Consent Decree was signed by the judge for the U.S. District Court for the District of Columbia and became effective on April 11, 2024. Exelon, PHI, and Pepco have accrued a liability for Pepco’s payment obligations under the Anacostia Consent Decree and management's best estimate of its share of any other future Anacostia River response costs. Pepco has concluded that incremental exposure remains reasonably possible, but management cannot reasonably estimate a range of loss beyond the amounts recorded, which are included in the table above.

In addition to the activities associated with the remedial process outlined above, CERCLA separately requires federal and state (here including Washington, D.C.) Natural Resource Trustees (federal or state agencies designated by the President or the relevant state, respectively, or Indian tribes) to conduct an assessment of any damages to natural resources within their jurisdiction as a result of the contamination that is being remediated. The Trustees can seek compensation from responsible parties for such damages, including restoration costs. During the second quarter of 2018, Pepco became aware that the Trustees are in the beginning stages of a NRD assessment, a process that often takes many years beyond the remedial decision to complete. Pepco has concluded that a loss associated with the eventual NRD assessment is reasonably possible. Due to the early stage of the NRD process, Pepco cannot reasonably estimate the final range of loss potentially resulting from this process. Pepco has become aware, however, that the District is pursuing claims against other parties. Specifically, in January 2025, D.C. OAG filed a lawsuit against the United States seeking to declare the United States liable under CERCLA and the District of Columbia’s Brownfield Revitalization Act of 2000 and to recover the District’s response costs associated with its investigation and remediation of Anacostia River sediment contamination and for future NRDs. Pepco is not a party to this suit, but Pepco, the United States, and the District of Columbia have entered mediation discussions to resolve their respective claims against one another under CERCLA and the Brownfield Revitalization Act with respect to the river. The court has put the case on hold pending the outcome of the mediation.

As noted in the Benning Road Site disclosure above, as part of the separation of Exelon and Constellation in February 2022, an assumption agreement was executed transferring any potential future remediation liabilities associated with the Benning Site remediation to a non-utility subsidiary of Exelon. Similarly, any potential future liability associated with the Anacostia River Sediment Project was also assumed by this entity.

Combined Notes to Consolidated Financial Statements — (Continued)

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

Note 11 — Commitments and Contingencies

Buzzard Point Site (Exelon, PHI, and Pepco). On December 8, 2022, Pepco received a letter from the D.C. OAG, alleging wholly past violations of the District's stormwater discharge and waste disposal requirements related to operations at the Buzzard Point facility, a 9-acre parcel of waterfront property in Washington, D.C. occupied by an active substation and former steam plant building. The letter also alleged wholly past violations by Pepco of stormwater discharge requirements related to its district-wide system of underground vaults. Pepco entered into a Consent Order with the District of Columbia to resolve the alleged violations without any admission of liability. The Consent Order requires Pepco to pay a civil penalty of $10 million. In addition, Pepco has agreed to assess the environmental conditions at its Buzzard Point facility and conduct any remedial actions deemed necessary as a result of the assessment, and also to assess potential environmental impacts associated with the operation of its underground vaults. The Superior Court for the District of Columbia signed and entered the Consent Order, and it became effective on February 2, 2024. Pepco is proceeding through the multi-step environmental investigation and response as outlined in the consent order. Specifically, the DOEE approved Pepco's Preliminary Site Assessment in July 2025. In September 2025, Pepco timely submitted its work plan for the second stage, the Supplemental Investigation Plan, which the DOEE approved in November 2025. Pepco also submitted an environmental assessment to the DOEE of the vault system pursuant to the Consent Order in July 2024. In response to the DOEE's comments, Pepco made revised submissions in May 2025, September 2025, and January 2026. The DOEE approved Pepco's vault system report on February 2, 2026. Exelon, PHI, and Pepco have accrued a liability for the projected costs for the required environmental assessments and remediation. In January 2025, Pepco paid the last installment of the civil penalty. Pepco has concluded that incremental exposure remains reasonably possible, but management cannot reasonably estimate a range of loss beyond the amounts recorded, which are included in the table above.

Litigation and Regulatory Matters

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

Combined Notes to Consolidated Financial Statements — (Continued)

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

Note 11 — Commitments and Contingencies

(Stipulation), which contained the terms of the proposed settlement. The proposed settlement terms include but are not limited to: a payment of $40 million to Exelon by Exelon’s insurers of which $10 million constitutes the attorneys’ fee award to be paid to the Settling Shareholders’ counsel; various compliance and disclosure-related reforms; and certain changes in Board and Committee composition. The non-settling shareholders objected to the settlement and opposed preliminary approval. On September 20, 2024, the court denied without prejudice the SLC’s motion for preliminary approval. The court’s order provided that if the SLC can substantiate or otherwise revise the attorneys’ fees aspect of the settlement, then the SLC could renew its motion for preliminary approval by October 21, 2024. On October 21, 2024, the SLC filed its second renewed motion for preliminary approval, and the Settling Shareholders filed a brief in support of the SLC's second renewed motion for preliminary approval. On November 20, 2024, the non-settling plaintiffs filed an opposition to the renewed motion for preliminary approval. On December 18, 2024, the SLC and Settling Shareholders filed replies in support of the renewed motion for preliminary approval. The court granted the renewed motion for preliminary approval on November 17, 2025, and the final settlement hearing was held on May 5, 2026.

Maryland Sales and Use Tax Refund Claim (Exelon, BGE, PHI, Pepco, and DPL). Maryland imposes a 6% sales and use tax on the purchase of most goods and services. BGE, Pepco, and DPL have filed or plan to file protective refund claims, totaling an estimated $100 million, treating electric transmission and distribution machinery and equipment as nontaxable pursuant to the manufacturing exemption available under the Maryland sales and use tax law. The Maryland Comptroller has initially denied the refund claim and litigation is pending.

On November 22, 2024, the Appellate Court of Maryland, in a case involving a regulated electric utility operating in Maryland, ruled the purchase of certain transmission and distribution equipment qualify for the sales tax manufacturing exemption. On December 20, 2024, the Maryland Attorney General, on behalf of the Maryland Comptroller, filed a motion for reconsideration with the Appellate Court of Maryland of its ruling. The motion for reconsideration was denied on February 3, 2025.

On February 18, 2025, the Maryland Attorney General, on behalf of the Maryland Comptroller, filed a petition with the Maryland Supreme Court requesting review of the Appellate Court of Maryland’s ruling. On April 24, 2025, the Maryland Supreme Court granted the petition to review the ruling. On October 1, 2025, the Maryland Supreme Court heard oral arguments in the case.

In the event transmission and distribution equipment is determined to be exempt, Exelon, BGE, PHI, Pepco, and DPL will record estimated receivables of $100 million, $65 million, $35 million, $25 million, and $10 million, respectively. The sales tax payments were primarily capitalized; therefore, the refund would be recorded as a reduction to PP&E included in rate base.

General (All Registrants). The Registrants are involved in various other litigation matters that are being defended and handled in the ordinary course of business. The Registrants are also from time to time subject to audits and investigations by the FERC and other regulators. The assessment of whether a loss is probable or reasonably possible, and whether the loss or a range of loss is estimable, often involves a series of complex judgments about future events. The Registrants maintain accruals for such losses that are probable of being incurred and subject to reasonable estimation. Management is sometimes unable to estimate an amount or range of reasonably possible loss, particularly where (1) the damages sought are indeterminate, (2) the proceedings are in the early stages, or (3) the matters involve novel or unsettled legal theories. In such cases, there is considerable uncertainty regarding the timing or ultimate resolution of such matters, including a possible eventual loss.

12. Shareholders' Equity (Exelon)

At-the-Market Program

On May 2, 2025, Exelon executed an equity distribution agreement ("2025 Equity Distribution Agreement"), 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. 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.

In the first quarter of 2026, Exelon entered into various forward sale agreements under the 2025 ATM program. The forward sale agreements require Exelon to, at its election prior to the maturity date, either (i) physically settle

Combined Notes to Consolidated Financial Statements — (Continued)

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

Note 12 — Shareholders' Equity

the transactions by issuing shares of its Common stock to the forward counterparties in exchange for net proceeds at the then-applicable forward sale price specified by the agreements or (ii) net settle the transactions in whole or in part through the delivery to the forward counterparties or receipt from the forward counterparties of cash or shares in accordance with the provisions of the agreements. The following forward sale agreements were entered into under Exelon’s ATM program in the first quarter of 2026:


Effective Period	Shares Available (in millions)	Weighted-Average Net Price		Maturity Date
Q1 2026	5.4	$	47.67	July 30, 2027
Q1 2026	6.4	$	48.68	September 2, 2027

Additionally, the following forward sale agreements were entered into during the twelve months ended 2025 under Exelon’s ATM program and were not settled as of December 31, 2025:


Effective Period	Shares Available (in millions)	Weighted-Average Net Price		Maturity Date
Q2 2025	3.6	$	43.17	November 16, 2026
Q3 2025	11.5	$	43.73	December 15, 2026
Q4 2025	0.8	$	45.42	December 15, 2026

No amounts have been or will be recorded on Exelon's balance sheet with respect to the equity offerings until the equity forward sale agreements have been settled. Each initial forward sale price is subject to adjustment on a daily basis based on a floating interest rate factor and will decrease by other fixed amounts specified in the agreements. Until settlement of the equity forward, earnings per share dilution resulting from the agreement, if any, will be determined under the treasury stock method. For the three months ended March 31, 2026, approximately 26.5 million shares under the forward sale agreements were not included in the calculation of diluted earnings per share because their effect would have been antidilutive.

Inclusive of the impact of the forward sale agreements, $1.0 billion of Common stock remained available for sale pursuant to the ATM program as of March 31, 2026.

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 March 31, 2026	Cash Flow Hedges		Pension and Non-Pension Postretirement Benefit Plan Items(a)		Total
Balance at December 31, 2025	$	33	$	(795)	$	(762)
OCI before reclassifications	(3)		4		1
Amounts reclassified from AOCI	(2)		7		5
Net current-period OCI	(5)		11		6
Balance at March 31, 2026	$	28	$	(784)	$	(756)


Three Months Ended March 31, 2025	Cash Flow Hedges		Pension and Non-Pension Postretirement Benefit Plan Items(a)		Total
Balance at December 31, 2024	$	45	$	(765)	$	(720)
OCI before reclassifications	(6)		5		(1)
Amounts reclassified from AOCI	(2)		5		3
Net current-period OCI	(8)		10		2
Balance at March 31, 2025	$	37	$	(755)	$	(718)

(a)This AOCI component is included in the computation of net periodic pension and OPEB cost. See Note 12 — Retirement Benefits of the 2025 Form 10-K and Note 7 — Retirement Benefits for additional information. See Exelon's Statements of Operations and Comprehensive Income for individual components of AOCI.

Combined Notes to Consolidated Financial Statements — (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 March 31,
		2026		2025
Pension and non-pension postretirement benefit plans:

Actuarial losses reclassified to periodic benefit cost		$	(2)	$	(2)
Pension and non-pension postretirement benefit plans valuation adjustments		(1)		(2)
Unrealized gains on cash flow hedges		1		3

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
	Exelon		ComEd		PECO		BGE		PHI		Pepco		DPL		ACE
Three Months Ended March 31, 2026
Utility taxes(a)	$	275	$	86	$	57	$	36	$	96	$	86	$	9	$	1
Property	125		10		5		63		47		31		15		1
Payroll	34		8		5		4		8		2		1		1

Three Months Ended March 31, 2025
Utility taxes(a)	$	258	$	81	$	50	$	34	$	93	$	84	$	8	$	1
Property	111		9		5		57		40		28		12		—
Payroll	33		8		5		5		7		1		1		1

(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.


	Other, net
	Exelon		ComEd		PECO		BGE		PHI		Pepco		DPL		ACE
Three Months Ended March 31, 2026
AFUDC — Equity	$	57	$	21	$	10	$	15	$	11	$	9	$	1	$	1
Non-service net periodic benefit cost	(10)		—		—		—		—		—		—		—

Three Months Ended March 31, 2025
AFUDC — Equity	$	39	$	12	$	7	$	9	$	11	$	8	$	2	$	1
Non-service net periodic benefit cost	(13)		—		—		—		—		—		—		—

Supplemental Cash Flow Information

The following tables provide additional information about material items recorded in the Registrants' 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


	Depreciation, amortization, and accretion
	Exelon		ComEd		PECO		BGE		PHI		Pepco		DPL			ACE
Three Months Ended March 31, 2026
Property, plant, and equipment(a)	$	794	$	317	$	120	$	132	$	211	$	94	$	59	`	$	57
Amortization of regulatory assets and liabilities, net(a)	158		87		1		35		35		20		7			8
Amortization of intangible assets, net(a)	—		—		—		—		—		—		—			—


ARO accretion(b)	1		—		—		—		—		—		—			—
Total depreciation, amortization, and accretion	$	953	$	404	$	121	$	167	$	246	$	114	$	66		$	65

Three Months Ended March 31, 2025
Property, plant, and equipment(a)	$	750	$	302	$	108	$	124	$	201	$	88	$	57		$	55
Amortization of regulatory assets and liabilities, net(a)	152		78		1		40		33		17		6			9
Amortization of intangible assets, net(a)	2		—		—		—		—		—		—			—


ARO accretion(b)	1		—		—		—		—		—		—			—
Total depreciation, amortization, and accretion	$	905	$	380	$	109	$	164	$	234	$	105	$	63		$	64

(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.


	Other non-cash operating activities
	Exelon		ComEd		PECO		BGE		PHI		Pepco		DPL		ACE
Three Months Ended March 31, 2026
Pension and OPEB costs	$	65	$	27	$	4	$	7	$	20	$	7	$	4	$	2
Allowance for credit losses	109		17		43		26		23		11		7		5


True-up adjustments to decoupling mechanisms and formula rates(a)	40		(8)		(5)		22		31		(1)		6		26





Amortization of operating ROU asset	6		—		—		2		3		1		1		1


AFUDC — Equity	(57)		(21)		(10)		(15)		(11)		(9)		(1)		(1)

Three Months Ended March 31, 2025
Pension and OPEB costs	$	68	$	21	$	2	$	16	$	25	$	8	$	4	$	3
Allowance for credit losses	97		11		43		14		29		10		9		10


True-up adjustments to decoupling mechanisms and formula rates(a)	136		85		9		29		13		(2)		5		10





Amortization of operating ROU asset	9		—		—		2		6		1		2		2


AFUDC — Equity	(39)		(12)		(7)		(9)		(11)		(8)		(2)		(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 2 — Regulatory Matters of the 2025 Form 10-K for additional information.

Combined Notes to Consolidated Financial Statements — (Continued)

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

Note 14 — Supplemental Financial 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.


	Cash, cash equivalents, and restricted cash
	Exelon		ComEd		PECO		BGE		PHI		Pepco		DPL		ACE
Balance at March 31, 2026
Cash and cash equivalents	$	713	$	95	$	151	$	173	$	49	$	20	$	12	$	12
Restricted cash and cash equivalents	560		487		—		7		31		20		10		1
Restricted cash included in Other deferred debits and other assets	24		24		—		—		—		—		—		—
Total cash, restricted cash, and cash equivalents	$	1,297	$	606	$	151	$	180	$	80	$	40	$	22	$	13

Balance at December 31, 2025
Cash and cash equivalents	$	626	$	159	$	116	$	217	$	103	$	22	$	9	$	22
Restricted cash and cash equivalents	525		454		—		3		38		33		3		2
Restricted cash included in Other deferred debits and other assets	50		50		—		—		—		—		—		—
Total cash, restricted cash, and cash equivalents	$	1,201	$	663	$	116	$	220	$	141	$	55	$	12	$	24

For additional information on restricted cash see Note 1 — Significant Accounting Policies of the 2025 Form 10-K.

Supplemental Balance Sheet Information

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


	Accrued expenses
	Exelon		ComEd		PECO		BGE		PHI		Pepco		DPL		ACE
Balance at March 31, 2026
Compensation-related accruals(a)	$	395	$	130	$	55	$	52	$	66	$	20	$	14	$	10
Taxes accrued	249		118		20		105		96		71		21		10
Interest accrued	466		105		55		91		85		37		28		19


Balance at December 31, 2025
Compensation-related accruals(a)	$	705	$	209	$	96	$	99	$	125	$	35	$	24	$	17
Taxes accrued	242		94		306		191		107		69		25		18
Interest accrued	538		155		75		55		92		49		18		20

(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.

Combined Notes to Consolidated Financial Statements — (Continued)

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

Note 15 — Related Party Transactions

The following table presents the service company costs allocated to the Registrants:


	Operating and maintenance from affiliates				Capitalized costs
	Three Months Ended March 31,					Three Months Ended March 31,
	2026		2025				2026		2025
Exelon
BSC							$	134	$	160
PHISCO							25		25
ComEd
BSC	$	103	$	100			61		62
PECO
BSC	65		59				21		27
BGE
BSC	66		63				21		33
PHI
BSC	58		52				30		39
PHISCO	—		—				25		25
Pepco
BSC	35		32				13		17
PHISCO	32		31				10		10

DPL
BSC	22		20				9		12
PHISCO	24		25				7		8

ACE
BSC	17		16				7		8
PHISCO	26		23				7		7

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:

March 31, 2026


				Receivables from affiliates:
	Payables to affiliates:			ComEd			PECO			BGE			Pepco			DPL			ACE			BSC			PHISCO			Other			Total
ComEd					$	—		$	—		$	—		$	—		$	—		$	70		$	—		$	2		$	72
PECO		$	—					—			—			—			—			36			—			5			41
BGE		—			—						—			—			—			31			—			1			32
PHI(a)		—			—			—			—			—			—			2			—			5			7
Pepco		—			—			—						—			—			15			16			1			32
DPL		—			—			—			—						—			10			14			1			25
ACE		3			—			—			—			—						6			10			1			20


Other		4			2			1			1			2			12			(1)			—						21
Total		$	7		$	2		$	1		$	1		$	2		$	12		$	169		$	40		$	16		$	250

December 31, 2025


				Receivables from affiliates:
	Payables to affiliates:			ComEd			PECO			BGE			Pepco			DPL			ACE			BSC			PHISCO			Other			Total
ComEd					$	—		$	—		$	—		$	—		$	—		$	76		$	—		$	5		$	81
PECO		$	—					—			—			—			—			33			—			2			35
BGE		—			—						—			—			—			39			—			—			39
PHI(a)		—			—			—			—			—			—			5			2			11			18
Pepco		—			—			—						—			—			25			11			1			37
DPL		—			—			—			—						—			15			10			—			25
ACE		—			—			—			—			—						14			10			—			24
Other		5			—			1			—			2			12			—			—						20
Total		$	5		$	—		$	1		$	—		$	2		$	12		$	207		$	33		$	19		$	279

(a)PHI is presented exclusive of Pepco, DPL, and ACE, which are included in the table herein.

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:


	March 31, 2026						December 31, 2025
	Exelon		ComEd		PECO		Exelon		ComEd		PECO
ComEd Financing III	$	206	$	206	$	—	$	206	$	206	$	—
PECO Trust III	81		—		81		81		—		81
PECO Trust IV	103		—		103		103		—		103
Total	$	390	$	206	$	184	$	390	$	206	$	184

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