Skip to Content
Business Wire

Exelon Reports Second Quarter 2022 Results

Exelon Reports Second Quarter 2022 Results

Earnings Release Highlights

  • GAAP Net Income of $0.47 per share and Adjusted (non-GAAP) Operating Earnings of $0.44 per share for the second quarter of 2022
  • Reaffirming range for full year 2022 Adjusted (non-GAAP) Operating Earnings guidance of $2.18-$2.32 per share
  • In line with previously announced plans, Exelon anticipates issuing up to $1.0 billion of registered shares of common stock through 2025. Exelon plans to establish a $1.0 billion at-the-market (ATM) program and anticipates issuing $500 million in 2022 through the ATM, a one-time common equity offering, or a combination of these methods.
  • Strong utility reliability performance – every utility achieved top quartile in outage duration with ComEd specifically delivering their best-on-record CAIDI performance
  • ComEd filed with the Illinois Commerce Commission (ICC) a proposed plan to promote beneficial electrification efforts in its service area
  • DPL filed its first multi-year plan with the Maryland Public Service Commission (MDPSC) in May seeking an increase in base rates to support significant investments in the local energy grid and other customer experience improvements during the years 2023 to 2025

Exelon Corporation (Nasdaq: EXC) today reported its financial results for the second quarter of 2022.

“Exelon is the leading transmission and distribution utility company in the nation, consistently delivering reliable results, and the second quarter is no exception,” said Chris Crane, Exelon President and CEO. “Our earnings and strong reliability from our energy companies were delivered despite challenging storms. At the same time, our ability to power a cleaner and brighter future for our customers and communities signifies how essential environmental, social and governance principles are to our company and our work leading the energy transformation.”

“During the second quarter, we continued to invest capital for the benefit of our customers and communities and delivered on earnings expectations, generating Adjusted (non-GAAP) Operating Earnings of $0.44 per share,” said Joe Nigro, Exelon’s Chief Financial Officer. “These investments will improve reliability and resiliency, enhance service for our customers and prepare the grid for a clean energy future. We reaffirm our full-year Adjusted (non-GAAP) Operating Earnings guidance range of $2.18 to $2.32 per share. We also are working hard to support our jurisdictions’ more vulnerable customers in making this transition to a cleaner future. Our industry-leading efforts to connect communities to financial assistance are a testament to those efforts.”

Second Quarter 2022

Exelon's GAAP Net Income from Continuing Operations for the second quarter of 2022 increased to $0.47 per share from $0.33 GAAP Net Income from Continuing Operations per share in the second quarter of 2021. Adjusted (non-GAAP) Operating Earnings for the second quarter of 2022 increased to $0.44 per share from $0.36 per share in the second quarter of 2021. For the reconciliations of GAAP Net Income from Continuing Operations to Adjusted (non-GAAP) Operating Earnings, refer to the tables beginning on page 4.

Adjusted (non-GAAP) Operating Earnings in the second quarter of 2022 primarily reflect:

  • Higher utility earnings primarily due to higher electric distribution earnings at ComEd from higher allowed electric distribution ROE due to an increase in treasury rates and higher rate base and rate increases at PECO, BGE, and PHI, partially offset by the absence of favorable weather and volume at ACE as ACE became decoupled effective July 1, 2021, higher depreciation expense at BGE and PHI, and higher credit loss expense at PHI.
  • Higher earnings at the Exelon holding company due to certain BSC costs that were historically allocated to Constellation Energy Generation, LLC (Generation) but are presented as part of continuing operations in Exelon’s results in the second quarter of 2021 as these costs do not qualify as expenses of the discontinued operations per the accounting rules, partially offset by higher interest expense.

Operating Company Results1

ComEd

ComEd's second quarter of 2022 GAAP Net Income increased to $227 million from $192 million in the second quarter of 2021. ComEd's Adjusted (non-GAAP) Operating Earnings for the second quarter of 2022 increased to $229 million from $195 million in the second quarter of 2021, primarily due to increases in electric distribution formula rate earnings (reflecting higher allowed electric distribution ROE due to an increase in treasury rates and the impacts of higher rate base). Due to revenue decoupling, ComEd's distribution earnings are not affected by actual weather or customer usage patterns.

PECO

PECO’s second quarter of 2022 GAAP Net Income increased to $133 million from $104 million in the second quarter of 2021. PECO's Adjusted (non-GAAP) Operating Earnings for the second quarter of 2022 increased to $134 million from $107 million in the second quarter of 2021, primarily due to distribution rate increases.

___________

1Exelon’s four business units include ComEd, which consists of electricity transmission and distribution operations in northern Illinois; PECO, which consists of electricity transmission and distribution operations and retail natural gas distribution operations in southeastern Pennsylvania; BGE, which consists of electricity transmission and distribution operations and retail natural gas distribution operations in central Maryland; and PHI, which consists of electricity transmission and distribution operations in the District of Columbia and portions of Maryland, Delaware, and New Jersey and retail natural gas distribution operations in northern Delaware.

BGE

BGE’s second quarter of 2022 GAAP Net Income decreased to $37 million from $45 million in the second quarter of 2021. BGE's Adjusted (non-GAAP) Operating Earnings for the second quarter of 2022 decreased to $38 million from $48 million in the second quarter of 2021, primarily due to an increase in depreciation expense, partially offset by favorable impacts of the multi-year plans. Due to revenue decoupling, BGE's distribution earnings are not affected by actual weather or customer usage patterns.

PHI

PHI’s second quarter of 2022 GAAP Net Income decreased to $100 million from $141 million in the second quarter of 2021. PHI’s Adjusted (non-GAAP) Operating Earnings for the second quarter of 2022 decreased to $101 million from $144 million in the second quarter of 2021, primarily due to the absence of favorable weather and volume at ACE as ACE became decoupled effective July 1, 2021, an increase in depreciation expense, credit loss expense, contracting costs partially due to timing of maintenance projects, and timing of excess deferred tax amortization, partially offset by distribution rate increases. Due to revenue decoupling, PHI's distribution earnings related to Pepco Maryland, DPL Maryland, Pepco District of Columbia, and ACE are not affected by actual weather or customer usage patterns.

Recent Developments and Second Quarter Highlights

  • DPL Maryland Electric Base Rate Case: On May 19, 2022, DPL filed an application for a three-year cumulative multi-year plan for January 1, 2023 through Dec. 31, 2025 with the MDPSC to increase its electric distribution rates by $23 million effective Jan. 1, 2023, $8 million effective January 1, 2024, and $7 million effective January 1, 2025, to recover capital investments made in 2021 and planned capital investments through the end of 2025, reflecting an ROE of 10.25%. DPL is proposing the acceleration of refunds for certain tax benefits to partially offset the customer rate increases by $12 million and $8 million in 2023 and 2024, respectively. DPL currently expects a decision in the fourth quarter of 2022, but cannot predict if the MDPSC will approve the application as filed.
  • Financing Activities:
    • On May 24, 2022, PECO issued $350 million aggregate principal amount of its First and Refunding Mortgage Bonds, 4.600% Series due May 15, 2052. PECO used the proceeds to repay existing indebtedness and for general corporate purposes.
    • On June 6, 2022, BGE issued $500 million aggregate principal amount of its 4.550% notes due June 1, 2052. BGE used the proceeds to repay outstanding commercial paper obligations, repay existing indebtedness, and for general corporate purposes.
    • Exelon anticipates issuing up to $1.0 billion of registered shares of common stock through 2025. Exelon plans to establish a $1.0 billion ATM program, under which Exelon can issue registered shares of common stock through designated broker-dealers at prevailing market prices. Exelon anticipates issuing $500 million in 2022 through the ATM, a one-time common equity offering, or a combination of these methods.

GAAP/Adjusted (non-GAAP) Operating Earnings Reconciliation

Adjusted (non-GAAP) Operating Earnings for the second quarter of 2022 do not include the following items (after tax) that were included in reported GAAP Net Income from Continuing Operations:

(in millions, except per share amounts)

Exelon

Earnings per

Diluted

Share

Exelon

ComEd

PECO

BGE

PHI

2022 GAAP Net Income (Loss) from Continuing Operations

$

0.47

 

$

465

 

$

227

$

133

$

37

$

100

Separation Costs (net of taxes of $3, $1, $0, $0, and $1, respectively)

 

0.01

 

 

10

 

 

2

 

1

 

1

 

2

Income Tax-Related Adjustments (entire amount represents tax expense)

 

(0.04

)

 

(43

)

 

 

 

 

2022 Adjusted (non-GAAP) Operating Earnings

$

0.44

 

$

433

 

$

229

$

134

$

38

$

101

Adjusted (non-GAAP) Operating Earnings for the second quarter of 2021 do not include the following items (after tax) that were included in reported GAAP Net Income from Continuing Operations:

(in millions, except per share amounts)

Exelon

Earnings per

Diluted

Share

Exelon

ComEd

PECO

BGE

PHI

2021 GAAP Net Income (Loss) from Continuing Operations

$

0.33

$

326

$

192

$

104

$

45

$

141

Mark-to-Market Impact of Economic Hedging Activities (net of taxes of $1)

 

 

3

 

 

 

 

Cost Management Program (net of taxes of $0)

 

 

1

 

 

 

 

COVID-19 Direct Costs (net of taxes of $1, $0, $0, and $1, respectively)

 

 

4

 

 

1

 

1

 

2

Acquisition Related Costs (net of taxes of $1)

 

 

2

 

 

 

 

ERP System Implementation Costs (net of taxes of $1)

 

 

2

 

 

 

 

Separation Costs (net of taxes of $6, $1, $1, $1, and $1, respectively)

 

0.01

 

10

 

2

 

1

 

1

 

2

2021 Adjusted (non-GAAP) Operating Earnings

$

0.36

$

348

$

195

$

107

$

48

$

144

Note:
Amounts may not sum due to rounding.
Unless otherwise noted, the income tax impact of each reconciling item between GAAP Net Income (Loss) from Continuing Operations and Adjusted (non-GAAP) Operating Earnings is based on the marginal statutory federal and state income tax rates for each Registrant, taking into account whether the income or expense item is taxable or deductible, respectively, in whole or in part. For all items, the marginal statutory income tax rates for 2022 and 2021 ranged from 24.0% to 29.0%.

Webcast Information

Exelon will discuss second quarter 2022 earnings in a conference call scheduled for today at 9 a.m. Central Time (10 a.m. Eastern Time). The webcast and associated materials can be accessed at www.exeloncorp.com/investor-relations.

About Exelon

Exelon is a Fortune 200 company and the nation’s largest utility company, serving more than 10 million customers through six fully regulated transmission and distribution utilities — Atlantic City Electric (ACE), Baltimore Gas and Electric (BGE), Commonwealth Edison (ComEd), Delmarva Power & Light (DPL), PECO Energy Company (PECO), and Potomac Electric Power Company (Pepco). More than 18,000 Exelon employees dedicate their time and expertise to supporting our communities through reliable, affordable and efficient energy delivery, workforce development, equity, economic development and volunteerism. Follow Exelon on Twitter @Exelon.

Non-GAAP Financial Measures

In addition to net income as determined under generally accepted accounting principles in the United States (GAAP), Exelon evaluates its operating performance using the measure of Adjusted (non-GAAP) Operating Earnings because management believes it represents earnings directly related to the ongoing operations of the business. Adjusted (non-GAAP) Operating Earnings exclude certain costs, expenses, gains and losses, and other specified items. This measure is intended to enhance an investor’s overall understanding of period over period operating results and provide an indication of Exelon’s baseline operating performance excluding items that are considered by management to be not directly related to the ongoing operations of the business. In addition, this measure is among the primary indicators management uses as a basis for evaluating performance, allocating resources, setting incentive compensation targets, and planning and forecasting of future periods. Adjusted (non-GAAP) Operating Earnings is not a presentation defined under GAAP and may not be comparable to other companies’ presentation. Exelon has provided the non-GAAP financial measure as supplemental information and in addition to the financial measures that are calculated and presented in accordance with GAAP. Adjusted (non-GAAP) Operating Earnings should not be deemed more useful than, a substitute for, or an alternative to the most comparable GAAP Net Income measures provided in this earnings release and attachments. This press release and earnings release attachments provide reconciliations of Adjusted (non-GAAP) Operating Earnings to the most directly comparable financial measures calculated and presented in accordance with GAAP, are posted on Exelon’s website: www.exeloncorp.com, and have been furnished to the Securities and Exchange Commission on Form 8-K on Aug. 3, 2022.

Cautionary Statements Regarding Forward-Looking Information

This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to risks and uncertainties. Words such as “could,” “may,” “expects,” “anticipates,” “will,” “targets,” “goals,” “projects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “predicts,” and variations on such words, and similar expressions that reflect our current views with respect to future events and operational, economic, and financial performance, are intended to identify such forward-looking statements.

The factors that could cause actual results to differ materially from the forward-looking statements made by Exelon Corporation, Commonwealth Edison Company, PECO Energy Company, Baltimore Gas and Electric Company, Pepco Holdings LLC, Potomac Electric Power Company, Delmarva Power & Light Company, and Atlantic City Electric Company (Registrants) include those factors discussed herein, as well as the items discussed in (1) the Registrants' 2021 Annual Report on Form 10-K filed with the SEC on February 25, 2022 in Part I, ITEM 1A. Risk Factors; (2) the Registrants' Current Report on Form 8-K filed with the SEC on June 30, 2022 to recast Exelon's consolidated financial statements and certain other financial information originally included in the 2021 Form 10-K in (a) Part II, ITEM 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations and (b) Part II, ITEM 8. Financial Statements and Supplementary Data: Note 17, Commitments and Contingencies; (3) the Registrants' Second Quarter 2022 Quarterly Report on Form 10-Q (to be filed on Aug. 3, 2022) in (a) Part II, ITEM 1A. Risk Factors, (b) Part I, ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations, and (c) Part I, ITEM 1. Financial Statements: Note 12, Commitments and Contingencies; and (4) other factors discussed in filings with the SEC by the Registrants.

Investors are cautioned not to place undue reliance on these forward-looking statements, whether written or oral, which apply only as of the date of this press release. None of the Registrants undertakes any obligation to publicly release any revision to its forward-looking statements to reflect events or circumstances after the date of this press release.

Earnings Release Attachments

Table of Contents

 
 

Consolidating Statement of Operations

1

 

 

Consolidated Balance Sheets

3

 

 

Consolidated Statements of Cash Flows

5

 

 

Reconciliation of GAAP Net Income from Continuing Operations to Adjusted (non-GAAP) Operating Earnings and Analysis of Earnings

6

 

 

Statistics

 

ComEd

10

PECO

11

BGE

13

Pepco

16

DPL

17

ACE

19

Consolidating Statements of Operations

(unaudited)

(in millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ComEd

 

PECO

 

BGE

 

PHI

 

Other (a)

 

Exelon

Three Months Ended June 30, 2022

 

 

 

 

 

 

 

 

 

 

 

Operating revenues

$

1,425

 

 

$

816

 

 

$

786

 

 

$

1,221

 

 

$

(9

)

 

$

4,239

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

Purchased power and fuel

 

283

 

 

 

283

 

 

 

289

 

 

 

420

 

 

 

(1

)

 

 

1,274

 

Operating and maintenance

 

338

 

 

 

215

 

 

 

205

 

 

 

292

 

 

 

59

 

 

 

1,109

 

Depreciation and amortization

 

328

 

 

 

93

 

 

 

152

 

 

 

240

 

 

 

17

 

 

 

830

 

Taxes other than income taxes

 

90

 

 

 

48

 

 

 

71

 

 

 

114

 

 

 

7

 

 

 

330

 

Total operating expenses

 

1,039

 

 

 

639

 

 

 

717

 

 

 

1,066

 

 

 

82

 

 

 

3,543

 

Loss on sales of assets and businesses

 

(2

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2

)

Operating income (loss)

 

384

 

 

 

177

 

 

 

69

 

 

 

155

 

 

 

(91

)

 

 

694

 

Other income and (deductions)

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

(104

)

 

 

(43

)

 

 

(36

)

 

 

(73

)

 

 

(102

)

 

 

(358

)

Other, net

 

13

 

 

 

8

 

 

 

5

 

 

 

19

 

 

 

130

 

 

 

175

 

Total other (deductions) and income

 

(91

)

 

 

(35

)

 

 

(31

)

 

 

(54

)

 

 

28

 

 

 

(183

)

Income (loss) from continuing operations before income taxes

 

293

 

 

 

142

 

 

 

38

 

 

 

101

 

 

 

(63

)

 

 

511

 

Income taxes

 

66

 

 

 

9

 

 

 

1

 

 

 

1

 

 

 

(31

)

 

 

46

 

Net income (loss) from continuing operations after income taxes

 

227

 

 

 

133

 

 

 

37

 

 

 

100

 

 

 

(32

)

 

 

465

 

Net income from discontinued operations after income taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

227

 

 

 

133

 

 

 

37

 

 

 

100

 

 

 

(32

)

 

 

465

 

Net income attributable to noncontrolling interests

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) attributable to common shareholders

$

227

 

 

$

133

 

 

$

37

 

 

$

100

 

 

$

(32

)

 

$

465

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30, 2021

 

 

 

 

 

 

 

 

 

 

 

Operating revenues

$

1,517

 

 

$

693

 

 

$

682

 

 

$

1,140

 

 

$

(12

)

 

$

4,020

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

Purchased power and fuel

 

500

 

 

 

207

 

 

 

219

 

 

 

396

 

 

 

(1

)

 

 

1,321

 

Operating and maintenance

 

323

 

 

 

209

 

 

 

193

 

 

 

256

 

 

 

92

 

 

 

1,073

 

Depreciation and amortization

 

296

 

 

 

87

 

 

 

141

 

 

 

194

 

 

 

18

 

 

 

736

 

Taxes other than income taxes

 

77

 

 

 

49

 

 

 

67

 

 

 

109

 

 

 

12

 

 

 

314

 

Total operating expenses

 

1,196

 

 

 

552

 

 

 

620

 

 

 

955

 

 

 

121

 

 

 

3,444

 

Gain on sales of assets and businesses

 

 

 

 

 

 

 

 

 

 

 

 

 

4

 

 

 

4

 

Operating income (loss)

 

321

 

 

 

141

 

 

 

62

 

 

 

185

 

 

 

(129

)

 

 

580

 

Other income and (deductions)

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

(98

)

 

 

(42

)

 

 

(34

)

 

 

(67

)

 

 

(83

)

 

 

(324

)

Other, net

 

15

 

 

 

7

 

 

 

9

 

 

 

20

 

 

 

22

 

 

 

73

 

Total other deductions

 

(83

)

 

 

(35

)

 

 

(25

)

 

 

(47

)

 

 

(61

)

 

 

(251

)

Income (loss) from continuing operations before income taxes

 

238

 

 

 

106

 

 

 

37

 

 

 

138

 

 

 

(190

)

 

 

329

 

Income taxes

 

46

 

 

 

2

 

 

 

(8

)

 

 

(3

)

 

 

(34

)

 

 

3

 

Net income (loss) from continuing operations after income taxes

 

192

 

 

 

104

 

 

 

45

 

 

 

141

 

 

 

(156

)

 

 

326

 

Net income from discontinued operations after income taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

150

 

 

 

150

 

Net income (loss)

 

192

 

 

 

104

 

 

 

45

 

 

 

141

 

 

 

(6

)

 

 

476

 

Net income attributable to noncontrolling interests

 

 

 

 

 

 

 

 

 

 

 

 

 

75

 

 

 

75

 

Net income (loss) attributable to common shareholders

$

192

 

 

$

104

 

 

$

45

 

 

$

141

 

 

$

(81

)

 

$

401

 

 

 

 

 

 

 

 

 

 

 

 

 

Change in Net income from continuing operations 2021 to 2022

$

35

 

 

$

29

 

 

$

(8

)

 

$

(41

)

 

$

124

 

 

$

139

 

Consolidating Statements of Operations

(unaudited)

(in millions)

 

 

ComEd

 

PECO

 

BGE

 

PHI

 

Other (a)

 

Exelon

Six Months Ended June 30, 2022

 

 

 

 

 

 

 

 

 

 

 

Operating revenues

$

3,158

 

 

$

1,863

 

 

$

1,940

 

 

$

2,626

 

 

$

(21

)

 

$

9,566

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

Purchased power and fuel

 

921

 

 

 

689

 

 

 

743

 

 

 

999

 

 

 

 

 

 

3,352

 

Operating and maintenance

 

689

 

 

 

463

 

 

 

423

 

 

 

591

 

 

 

122

 

 

 

2,288

 

Depreciation and amortization

 

649

 

 

 

185

 

 

 

322

 

 

 

459

 

 

 

32

 

 

 

1,647

 

Taxes other than income taxes

 

185

 

 

 

95

 

 

 

148

 

 

 

233

 

 

 

23

 

 

 

684

 

Total operating expenses

 

2,444

 

 

 

1,432

 

 

 

1,636

 

 

 

2,282

 

 

 

177

 

 

 

7,971

 

Loss on sales of assets and businesses

 

(2

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2

)

Operating income (loss)

 

712

 

 

 

431

 

 

 

304

 

 

 

344

 

 

 

(198

)

 

 

1,593

 

Other income and (deductions)

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

(204

)

 

 

(84

)

 

 

(71

)

 

 

(143

)

 

 

(195

)

 

 

(697

)

Other, net

 

26

 

 

 

16

 

 

 

11

 

 

 

37

 

 

 

223

 

 

 

313

 

Total other (deductions) and income

 

(178

)

 

 

(68

)

 

 

(60

)

 

 

(106

)

 

 

28

 

 

 

(384

)

Income (loss) from continuing operations before income taxes

 

534

 

 

 

363

 

 

 

244

 

 

 

238

 

 

 

(170

)

 

 

1,209

 

Income taxes

 

119

 

 

 

24

 

 

 

10

 

 

 

8

 

 

 

102

 

 

 

263

 

Net income (loss) from continuing operations after income taxes

 

415

 

 

 

339

 

 

 

234

 

 

 

230

 

 

 

(272

)

 

 

946

 

Net income from discontinued operations after income taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

117

 

 

 

117

 

Net income (loss)

 

415

 

 

 

339

 

 

 

234

 

 

 

230

 

 

 

(155

)

 

 

1,063

 

Net income attributable to noncontrolling interests

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

 

 

1

 

Net income (loss) attributable to common shareholders

$

415

 

 

$

339

 

 

$

234

 

 

$

230

 

 

$

(156

)

 

$

1,062

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended June 30, 2021

 

 

 

 

 

 

 

 

 

 

 

Operating revenues

$

3,052

 

 

$

1,582

 

 

$

1,656

 

 

$

2,384

 

 

$

(22

)

 

$

8,652

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

Purchased power and fuel

 

1,025

 

 

 

523

 

 

 

550

 

 

 

874

 

 

 

 

 

 

2,972

 

Operating and maintenance

 

639

 

 

 

443

 

 

 

390

 

 

 

513

 

 

 

170

 

 

 

2,155

 

Depreciation and amortization

 

589

 

 

 

173

 

 

 

293

 

 

 

404

 

 

 

35

 

 

 

1,494

 

Taxes other than income taxes

 

153

 

 

 

92

 

 

 

139

 

 

 

222

 

 

 

25

 

 

 

631

 

Total operating expenses

 

2,406

 

 

 

1,231

 

 

 

1,372

 

 

 

2,013

 

 

 

230

 

 

 

7,252

 

Gain on sales of assets and businesses

 

 

 

 

 

 

 

 

 

 

 

 

 

4

 

 

 

4

 

Operating income (loss)

 

646

 

 

 

351

 

 

 

284

 

 

 

371

 

 

 

(248

)

 

 

1,404

 

Other income and (deductions)

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

(193

)

 

 

(80

)

 

 

(67

)

 

 

(134

)

 

 

(169

)

 

 

(643

)

Other, net

 

22

 

 

 

12

 

 

 

16

 

 

 

36

 

 

 

45

 

 

 

131

 

Total other (deductions)

 

(171

)

 

 

(68

)

 

 

(51

)

 

 

(98

)

 

 

(124

)

 

 

(512

)

Income (loss) from continuing operations before income taxes

 

475

 

 

 

283

 

 

 

233

 

 

 

273

 

 

 

(372

)

 

 

892

 

Income taxes

 

85

 

 

 

12

 

 

 

(21

)

 

 

5

 

 

 

(39

)

 

 

42

 

Equity in earnings of unconsolidated affiliates

 

 

 

 

 

 

 

 

 

 

1

 

 

 

 

 

 

1

 

Net income (loss) from continuing operations after income taxes

 

390

 

 

 

271

 

 

 

254

 

 

 

269

 

 

 

(333

)

 

 

851

 

Net (loss) from discontinued operations after income taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

(640

)

 

 

(640

)

Net income (loss)

 

390

 

 

 

271

 

 

 

254

 

 

 

269

 

 

 

(973

)

 

 

211

 

Net income attributable to noncontrolling interests

 

 

 

 

 

 

 

 

 

 

 

 

 

99

 

 

 

99

 

Net income (loss) attributable to common shareholders

$

390

 

 

$

271

 

 

$

254

 

 

$

269

 

 

$

(1,072

)

 

$

112

 

 

 

 

 

 

 

 

 

 

 

 

 

Change in Net income from continuing operations 2021 to 2022

$

25

 

 

$

68

 

 

$

(20

)

 

$

(39

)

 

$

61

 

 

$

95

 

__________

(a)

Other primarily includes eliminating and consolidating adjustments, Exelon’s corporate operations, shared service entities, and other financing and investment activities.

Exelon

Consolidated Balance Sheets

(unaudited)

(in millions)

 

 

 

June 30, 2022

 

December 31, 2021

Assets

 

 

 

 

Current assets

 

 

 

 

Cash and cash equivalents

 

$

816

 

 

$

672

 

Restricted cash and cash equivalents

 

 

961

 

 

 

321

 

Accounts receivable

 

 

 

 

Customer accounts receivable

 

 

2,219

 

 

 

2,189

 

Customer allowance for credit losses

 

 

(354

)

 

 

(320

)

Customer accounts receivable, net

 

 

1,865

 

 

 

1,869

 

Other accounts receivable

 

 

1,403

 

 

 

1,068

 

Other allowance for credit losses

 

 

(81

)

 

 

(72

)

Other accounts receivable, net

 

 

1,322

 

 

 

996

 

Inventories, net

 

 

 

 

Fossil fuel

 

 

133

 

 

 

105

 

Materials and supplies

 

 

491

 

 

 

476

 

Regulatory assets

 

 

1,239

 

 

 

1,296

 

Other

 

 

515

 

 

 

387

 

Current assets of discontinued operations

 

 

 

 

 

7,835

 

Total current assets

 

 

7,342

 

 

 

13,957

 

Property, plant, and equipment, net

 

 

66,456

 

 

 

64,558

 

Deferred debits and other assets

 

 

 

 

Regulatory assets

 

 

8,350

 

 

 

8,224

 

Goodwill

 

 

6,630

 

 

 

6,630

 

Receivable related to Regulatory Agreement Units

 

 

2,265

 

 

 

 

Investments

 

 

235

 

 

 

250

 

Other

 

 

1,017

 

 

 

885

 

Property, plant, and equipment, deferred debits, and other assets of discontinued operations

 

 

 

 

 

38,509

 

Total deferred debits and other assets

 

 

18,497

 

 

 

54,498

 

Total assets

 

$

92,295

 

 

$

133,013

 

 

 

 

 

 

 

 

 

 

 

Liabilities and shareholders’ equity

 

 

 

 

Current liabilities

 

 

 

 

Short-term borrowings

 

$

2,003

 

 

$

1,248

 

Long-term debt due within one year

 

 

505

 

 

 

2,153

 

Accounts payable

 

 

2,451

 

 

 

2,379

 

Accrued expenses

 

 

1,057

 

 

 

1,137

 

Payables to affiliates

 

 

5

 

 

 

5

 

Regulatory liabilities

 

 

411

 

 

 

376

 

Mark-to-market derivative liabilities

 

 

 

 

 

18

 

Unamortized energy contract liabilities

 

 

11

 

 

 

89

 

Other

 

 

1,588

 

 

 

766

 

Current liabilities of discontinued operations

 

 

 

 

 

7,940

 

Total current liabilities

 

 

8,031

 

 

 

16,111

 

Long-term debt

 

 

35,789

 

 

 

30,749

 

Long-term debt to financing trusts

 

 

390

 

 

 

390

 

Deferred credits and other liabilities

 

 

 

 

Deferred income taxes and unamortized investment tax credits

 

 

11,240

 

 

 

10,611

 

Regulatory liabilities

 

 

8,513

 

 

 

9,628

 

Pension obligations

 

 

1,406

 

 

 

2,051

 

Non-pension postretirement benefit obligations

 

 

800

 

 

 

811

 

Asset retirement obligations

 

 

275

 

 

 

271

 

Mark-to-market derivative liabilities

 

 

103

 

 

 

201

 

Unamortized energy contract liabilities

 

 

38

 

 

 

146

 

Other

 

 

2,054

 

 

 

1,573

 

Long-term debt, deferred credits, and other liabilities of discontinued operations

 

 

 

 

 

25,676

 

Total deferred credits and other liabilities

 

 

24,429

 

 

 

50,968

 

Total liabilities

 

 

68,639

 

 

 

98,218

 

Commitments and contingencies

 

 

 

 

Shareholders’ equity

 

 

 

 

Common stock

 

 

20,319

 

 

 

20,324

 

Treasury stock, at cost

 

 

(123

)

 

 

(123

)

Retained earnings

 

 

4,161

 

 

 

16,942

 

Accumulated other comprehensive loss, net

 

 

(701

)

 

 

(2,750

)

Total shareholders’ equity

 

 

23,656

 

 

 

34,393

 

Noncontrolling interests

 

 

 

 

 

402

 

Total equity

 

 

23,656

 

 

 

34,795

 

Total liabilities and shareholders’ equity

 

$

92,295

 

 

$

133,013

 

Exelon

Consolidated Statements of Cash Flows

(unaudited)

(in millions)

 

 

 

Six Months Ended June 30,

 

 

2022

 

2021

Cash flows from operating activities

 

 

 

 

Net income

 

$

1,063

 

 

$

211

 

Adjustments to reconcile net income to net cash flows provided by operating activities:

 

 

 

 

Depreciation, amortization, and accretion, including nuclear fuel and energy contract amortization

 

 

1,854

 

 

 

4,180

 

Asset impairments

 

 

 

 

 

500

 

Gain on sales of assets and businesses

 

 

(8

)

 

 

(83

)

Deferred income taxes and amortization of investment tax credits

 

 

143

 

 

 

(163

)

Net fair value changes related to derivatives

 

 

(59

)

 

 

(490

)

Net realized and unrealized losses (gains) on NDT funds

 

 

205

 

 

 

(376

)

Net unrealized losses (gains) on equity investments

 

 

16

 

 

 

(96

)

Other non-cash operating activities

 

 

276

 

 

 

(331

)

Changes in assets and liabilities:

 

 

 

 

Accounts receivable

 

 

(795

)

 

 

(16

)

Inventories

 

 

12

 

 

 

1

 

Accounts payable and accrued expenses

 

 

544

 

 

 

(87

)

Option premiums (paid) received, net

 

 

(39

)

 

 

2

 

Collateral received, net

 

 

1,689

 

 

 

957

 

Income taxes

 

 

23

 

 

 

190

 

Regulatory assets and liabilities, net

 

 

(376

)

 

 

(276

)

Pension and non-pension postretirement benefit contributions

 

 

(585

)

 

 

(559

)

Other assets and liabilities

 

 

(723

)

 

 

(2,426

)

Net cash flows provided by operating activities

 

 

3,240

 

 

 

1,138

 

Cash flows from investing activities

 

 

 

 

Capital expenditures

 

 

(3,507

)

 

 

(4,040

)

Proceeds from NDT fund sales

 

 

488

 

 

 

4,438

 

Investment in NDT funds

 

 

(516

)

 

 

(4,538

)

Collection of DPP

 

 

169

 

 

 

2,209

 

Proceeds from sales of assets and businesses

 

 

16

 

 

 

724

 

Other investing activities

 

 

4

 

 

 

17

 

Net cash flows used in investing activities

 

 

(3,346

)

 

 

(1,190

)

Cash flows from financing activities

 

 

 

 

Changes in short-term borrowings

 

 

(597

)

 

 

(666

)

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

 

 

1,150

 

 

 

500

 

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

 

 

(350

)

 

 

 

Issuance of long-term debt

 

 

5,151

 

 

 

2,455

 

Retirement of long-term debt

 

 

(1,707

)

 

 

(630

)

Dividends paid on common stock

 

 

(663

)

 

 

(747

)

Proceeds from employee stock plans

 

 

17

 

 

 

47

 

Transfer of cash, restricted cash, and cash equivalents to Constellation

 

 

(2,594

)

 

 

 

Other financing activities

 

 

(84

)

 

 

(64

)

Net cash flows provided by financing activities

 

 

323

 

 

 

895

 

Increase in cash, restricted cash, and cash equivalents

 

 

217

 

 

 

843

 

Cash, restricted cash, and cash equivalents at beginning of period

 

 

1,619

 

 

 

1,166

 

Cash, restricted cash, and cash equivalents at end of period

 

$

1,836

 

 

$

2,009

 

Exelon

Reconciliation of GAAP Net Income (Loss) from Continuing Operations to Adjusted (non-GAAP) Operating Earnings and Analysis of Earnings

Three Months Ended June 30, 2022 and 2021

(unaudited)

(in millions, except per share data)

 

 

Exelon

Earnings per

Diluted

Share

 

ComEd

 

PECO

 

BGE

 

PHI

 

Other (a)

 

Exelon

2021 GAAP Net Income (Loss) from Continuing Operations

$

0.33

 

 

$

192

 

 

$

104

 

 

$

45

 

 

$

141

 

 

$

(156

)

 

$

326

 

Mark-to-Market Impact of Economic Hedging Activities (net of taxes of $1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3

 

 

 

3

 

Cost Management Program (net of taxes of $0)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

 

 

1

 

COVID-19 Direct Costs (net of taxes of $0, $0, $1, and $1 respectively) (1)

 

 

 

 

 

 

 

1

 

 

 

1

 

 

 

2

 

 

 

 

 

 

4

 

Acquisition Related Costs (net of taxes of $1) (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2

 

 

 

2

 

ERP System Implementation Costs (net of taxes of $1) (3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2

 

 

 

2

 

Separation Costs (net of taxes of $1, $1, $1, $1, $2 and $6, respectively) (4)

 

0.01

 

 

 

2

 

 

 

1

 

 

 

1

 

 

 

2

 

 

 

4

 

 

 

10

 

2021 Adjusted (non-GAAP) Operating Earnings (Loss)

$

0.36

 

 

$

195

 

 

$

107

 

 

$

48

 

 

$

144

 

 

$

(146

)

 

$

348

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Over Year Effects on Adjusted (non-GAAP) Operating Earnings:

Weather

$

(0.01

)

 

$

 

(b)

$

(1

)

 

$

 

(b)

$

(4

)

(b)

$

 

 

$

(5

)

Load

 

(0.01

)

 

 

 

(b)

 

1

 

 

 

 

(b)

 

(9

)

(b)

 

 

 

 

(8

)

Distribution and Transmission Rates (6)

 

0.09

 

 

 

30

 

(c)

 

27

 

(c)

 

13

 

(c)

 

23

 

(c)

 

 

 

 

93

 

Other Energy Delivery (7)

 

0.10

 

 

 

59

 

(c)

 

6

 

(c)

 

8

 

(c)

 

30

 

(c)

 

 

 

 

103

 

Operating and Maintenance Expense (8)

 

(0.06

)

 

 

(15

)

 

 

(7

)

 

 

(13

)

 

 

(28

)

 

 

9

 

 

 

(54

)

Pension and Non-Pension Postretirement Benefits

 

0.01

 

 

 

5

 

 

 

2

 

 

 

2

 

 

 

 

 

 

3

 

 

 

12

 

Depreciation and Amortization Expense (9)

 

(0.07

)

 

 

(23

)

 

 

(4

)

 

 

(8

)

 

 

(33

)

 

 

 

 

 

(68

)

Other (10)

 

0.01

 

 

 

(22

)

 

 

3

 

 

 

(12

)

 

 

(22

)

 

 

65

 

 

 

12

 

Total Year Over Year Effects on Adjusted (non-GAAP) Operating Earnings

$

0.08

 

 

$

34

 

 

$

27

 

 

$

(10

)

 

$

(43

)

 

$

77

 

 

$

85

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2022 GAAP Net Income (Loss) from Continuing Operations

$

0.47

 

 

$

227

 

 

$

133

 

 

$

37

 

 

$

100

 

 

$

(32

)

 

$

465

 

Separation Costs (net of taxes of $1, $0, $0, $1, $1, and $4, respectively) (4)

 

0.01

 

 

 

2

 

 

 

1

 

 

 

1

 

 

 

2

 

 

 

4

 

 

 

10

 

Income Tax-Related Adjustments (entire amount represents tax expense) (5)

 

(0.04

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(43

)

 

 

(43

)

2022 Adjusted (non-GAAP) Operating Earnings (Loss)

$

0.44

 

 

$

229

 

 

$

134

 

 

$

38

 

 

$

101

 

 

$

(69

)

 

$

433

 

Note:

Amounts may not sum due to rounding.

Unless otherwise noted, the income tax impact of each reconciling item between GAAP Net Income from Continuing Operations and Adjusted (non-GAAP) Operating Earnings is based on the marginal statutory federal and state income tax rates for each Registrant, taking into account whether the income or expense item is taxable or deductible, respectively, in whole or in part. For all items, the marginal statutory income tax rates for 2022 and 2021 ranged from 24.0% to 29.0%.

 

 

(a)

Other primarily includes eliminating and consolidating adjustments, Exelon’s corporate operations, shared service entities, and other financing and investment activities.

(b)

For ComEd, BGE, Pepco, DPL Maryland, and ACE, customer rates are adjusted to eliminate the impacts of weather and customer usage on distribution volumes.

(c)

For regulatory recovery mechanisms, including ComEd’s distribution formula rate and energy efficiency formula, ComEd, PECO, BGE, and PHI utilities transmission formula rates, and riders across all utilities, revenues increase and decrease i) as fully recoverable costs fluctuate (with no impact on net earnings), and ii) pursuant to changes in rate base, capital structure and ROE (which impact net earnings).

(1)

Represents direct costs related to COVID-19 consisting primarily of costs to acquire personal protective equipment, costs for cleaning supplies and services, and costs to hire healthcare professionals to monitor the health of employees, which are recorded in Operating and maintenance expense.

(2)

Reflects certain BSC costs related to the acquisition of Electricite de France SA's (EDF's) interest in CENG, which was completed in the third quarter of 2021, that were historically allocated to Constellation Energy Generation, LLC (Generation) but are presented as part of continuing operations in Exelon’s results as these costs do not qualify as expenses of the discontinued operations per the accounting rules.

(3)

Reflects costs related to a multi-year Enterprise Resource Program (ERP) system implementation, which are recorded in Operating and maintenance expense.

(4)

Represents costs related to the separation primarily comprised of system-related costs, third-party costs paid to advisors, consultants, lawyers, and other experts assisting in the separation, and employee-related severance costs, which are recorded in Operating and maintenance expense.

(5)

In connection with the separation, Exelon recorded a one-time impact associated with a state tax benefit.

(6)

For ComEd, reflects increased electric distribution revenues due to higher allowed electric distribution ROE driven by an increase in treasury rates and higher rate base. For PECO, reflects increased revenue primarily due to distribution rate increases. For BGE, reflects increased revenue due to distribution rate increases. For PHI, reflects increased revenue primarily due to distribution rate increases.

(7)

For ComEd, reflects increased electric distribution, transmission, and energy efficiency revenues due to higher fully recoverable costs. For PHI, includes the regulatory asset amortization of the ACE Power Purchase Agreement termination obligation recorded in the first quarter of 2022, which is fully recoverable.

(8)

Represents Operating and maintenance expense, excluding pension and non-pension postretirement benefits. For PHI, primarily reflects increased credit loss expense and higher contracting costs partially due to timing of maintenance projects. For Corporate, primarily reflects two offsetting items: 1) lower BSC costs that were historically allocated to Generation but are presented as part of continuing operations in Exelon’s results as these costs do not qualify as expenses of the discontinued operations per the accounting rules and 2) an increase in Operating and maintenance expense with an offsetting increase in other income for costs billed to Constellation for services provided by Exelon through the Transition Services Agreement (TSA).

(9)

Reflects ongoing capital expenditures across all utilities. For ComEd, also reflects increased amortization of deferred energy efficiency costs. For PHI, also includes the regulatory asset amortization of the ACE Power Purchase Agreement termination obligation recorded in the first quarter of 2022, which is fully recoverable in Other Energy Delivery.

(10)

For ComEd, includes increased taxes related to the Energy Transition Assistance Charge rider which are fully recoverable in Other Energy Delivery. For PHI, reflects the timing of tax expense driven by the timing of excess deferred tax amortization, which will reverse by the end of the year. For Corporate, primarily reflects an increase in other income for costs billed to Constellation for services provided by Exelon through the TSA with an offsetting increase in Operating and maintenance expense.

Exelon

Reconciliation of GAAP Net Income (Loss) from Continuing Operations to Adjusted (non-GAAP) Operating Earnings and Analysis of Earnings

Six Months Ended June 30, 2022 and 2021

(unaudited)

(in millions, except per share data)

 

 

Exelon

Earnings

per Diluted

Share

 

ComEd

 

PECO

 

BGE

 

PHI

 

Other (a)

 

Exelon

2021 GAAP Net Income (Loss) from Continuing Operations

$

0.87

 

 

$

390

 

 

$

271

 

 

$

254

 

 

$

269

 

 

$

(333

)

 

$

851

 

Mark-to-Market Impact of Economic Hedging Activities (net of taxes of $1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3

 

 

 

3

 

Cost Management Program (net of taxes of $0)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

 

 

1

 

COVID-19 Direct Costs (net of taxes of $1, $1, $1 and $3, respectively) (1)

 

0.01

 

 

 

 

 

 

2

 

 

 

1

 

 

 

2

 

 

 

 

 

 

5

 

Acquisition Related Costs (net of taxes of $3) (2)

 

0.01

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

7

 

 

 

7

 

ERP System Implementation Costs (net of taxes of $0, $0, $0, $1 and $1, respectively) (3)

 

0.01

 

 

 

 

 

 

1

 

 

 

1

 

 

 

1

 

 

 

4

 

 

 

7

 

Separation Costs (net of taxes of $1, $1, $1, $1, $2 and $6, respectively) (4)

 

0.02

 

 

 

3

 

 

 

2

 

 

 

2

 

 

 

3

 

 

 

5

 

 

 

15

 

Income Tax-Related Adjustments (entire amount represents tax expense)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2

)

 

 

(2

)

2021 Adjusted (non-GAAP) Operating Earnings (Loss)

$

0.91

 

 

$

393

 

 

$

277

 

 

$

258

 

 

$

274

 

 

$

(315

)

 

$

887

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Over Year Effects on Adjusted (non-GAAP) Operating Earnings:

 

 

 

 

 

 

 

 

 

 

 

 

Weather

$

(0.01

)

 

$

 

(b)

$

(7

)

 

$

 

(b)

$

(3

)

(b)

$

 

 

$

(10

)

Load

 

0.01

 

 

 

 

(b)

 

10

 

 

 

 

(b)

 

(4

)

(b)

 

 

 

 

6

 

Distribution and Transmission Rates (6)

 

0.17

 

 

 

43

 

(c)

 

63

 

(c)

 

19

 

(c)

 

49

 

(c)

 

 

 

 

174

 

Other Energy Delivery (7)

 

0.19

 

 

 

107

 

(c)

 

16

 

(c)

 

29

 

(c)

 

39

 

(c)

 

 

 

 

191

 

Operating and Maintenance Expense (8)

 

(0.14

)

 

 

(42

)

 

 

(18

)

 

 

(29

)

 

 

(57

)

 

 

10

 

 

 

(136

)

Pension and Non-Pension Postretirement Benefits

 

0.02

 

 

 

10

 

 

 

3

 

 

 

4

 

 

 

1

 

 

 

6

 

 

 

24

 

Depreciation and Amortization Expense (9)

 

(0.11

)

 

 

(42

)

 

 

(9

)

 

 

(21

)

 

 

(40

)

 

 

1

 

 

 

(111

)

Other (10)

 

0.04

 

 

 

(47

)

 

 

7

 

 

 

(22

)

 

 

(21

)

 

 

123

 

 

 

40

 

Total Year Over Year Effects on Adjusted (non-GAAP) Operating Earnings

$

0.17

 

 

$

29

 

 

$

65

 

 

$

(20

)

 

$

(36

)

 

$

140

 

 

$

178

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2022 GAAP Net Income (Loss) from Continuing Operations

$

0.96

 

 

$

415

 

 

$

339

 

 

$

234

 

 

$

230

 

 

$

(272

)

 

$

946

 

ERP System Implementation Costs (net of taxes of $0) (3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

 

 

1

 

Separation Costs (net of taxes of $3, $1, $1, $2, $3, and $11, respectively) (4)

 

0.03

 

 

 

7

 

 

 

3

 

 

 

4

 

 

 

5

 

 

 

8

 

 

 

27

 

Income Tax-Related Adjustments (entire amount represents tax expense) (5)

 

0.09

 

 

 

 

 

 

 

 

 

 

 

 

3

 

 

 

89

 

 

 

92

 

2022 Adjusted (non-GAAP) Operating Earnings (Loss)

$

1.08

 

 

$

422

 

 

$

342

 

 

$

238

 

 

$

238

 

 

$

(175

)

 

$

1,065

 

Note:

Amounts may not sum due to rounding.

Unless otherwise noted, the income tax impact of each reconciling item between GAAP Net Income from Continuing Operations and Adjusted (non-GAAP) Operating Earnings is based on the marginal statutory federal and state income tax rates for each Registrant, taking into account whether the income or expense item is taxable or deductible, respectively, in whole or in part. For all items, the marginal statutory income tax rates for 2022 and 2021 ranged from 24.0% to 29.0%.

 

(a)

Other primarily includes eliminating and consolidating adjustments, Exelon’s corporate operations, shared service entities, and other financing and investment activities.

(b)

For ComEd, BGE, Pepco, DPL Maryland, and ACE, customer rates are adjusted to eliminate the impacts of weather and customer usage on distribution volumes.

(c)

For regulatory recovery mechanisms, including ComEd’s distribution formula rate and energy efficiency formula, ComEd, PECO, BGE, and PHI utilities transmission formula rates, and riders across all utilities, revenues increase and decrease i) as fully recoverable costs fluctuate (with no impact on net earnings), and ii) pursuant to changes in rate base, capital structure and ROE (which impact net earnings).

(1)

Represents direct costs related to COVID-19 consisting primarily of costs to acquire personal protective equipment, costs for cleaning supplies and services, and costs to hire healthcare professionals to monitor the health of employees, which are recorded in Operating and maintenance expense.

(2)

Reflects certain BSC costs related to the acquisition of Electricite de France SA's (EDF's) interest in CENG, which was completed in the third quarter of 2021, that were historically allocated to Constellation Energy Generation, LLC (Generation) but are presented as part of continuing operations in Exelon’s results as these costs do not qualify as expenses of the discontinued operations per the accounting rules.

(3)

Reflects costs related to a multi-year Enterprise Resource Program (ERP) system implementation, which are recorded in Operating and maintenance expense.

(4)

Represents costs related to the separation primarily comprised of system-related costs, third-party costs paid to advisors, consultants, lawyers, and other experts assisting in the separation, and employee-related severance costs, which are recorded in Operating and maintenance expense.

(5)

In connection with the separation, Exelon recorded an income tax expense primarily due to the long-term marginal state income tax rate change, the recognition of valuation allowances against the net deferred tax assets positions for certain standalone state filing jurisdictions, and nondeductible transaction costs partially offset by a one-time impact associated with a state tax benefit.

(6)

For ComEd, reflects increased electric distribution revenues due to higher allowed electric distribution ROE driven by an increase in treasury rates and higher rate base. For PECO, reflects increased revenue primarily due to distribution rate increases. For BGE, reflects increased revenue due to distribution and transmission rate increases. For PHI, reflects increased revenue primarily due to distribution rate increases.

(7)

For ComEd, reflects increased electric distribution, transmission, and energy efficiency revenues due to higher fully recoverable costs. For PHI, includes the regulatory asset amortization of the ACE Power Purchase Agreement termination obligation recorded in the first quarter of 2022, which is fully recoverable.

(8)

Represents Operating and maintenance expense, excluding pension and non-pension postretirement benefits. For ComEd, primarily reflects the voluntary customer refund related to the ICC investigation of matters identified in the Deferred Prosecution Agreement. For BGE, reflects higher credit loss expense. For PHI, includes increased storm costs, increased credit loss expense, and higher contracting costs partially due to timing of maintenance projects. For Corporate, primarily reflects two offsetting items: 1) lower BSC costs that were historically allocated to Generation but are presented as part of continuing operations in Exelon’s results as these costs do not qualify as expenses of the discontinued operations per the accounting rules (YTD Q2 2022 includes one month of costs for the period prior to the separation compared to six months of costs included in YTD Q2 2021) and 2) an increase in Operating and maintenance expense with an offsetting increase in other income for costs billed to Constellation for services provided by Exelon through the Transition Services Agreement (TSA).

(9)

Reflects ongoing capital expenditures across all utilities. For ComEd, also reflects increased amortization of deferred energy efficiency costs. For PHI, includes the regulatory asset amortization of the ACE Power Purchase Agreement termination obligation recorded in the first quarter of 2022, which is fully recoverable in Other Energy Delivery.

(10)

For ComEd, includes increased taxes related to the Energy Transition Assistance Charge rider which are fully recoverable in Other Energy Delivery. For PECO, includes an increase in tax repairs deduction. For PHI, primarily reflects increased interest expense and the timing of tax expense driven by the timing of excess deferred tax amortization, which will reverse by the end of the year. For Corporate, primarily reflects an increase in other income for costs billed to Constellation for services provided by Exelon through the TSA with an offsetting increase in Operating and maintenance expense.

ComEd Statistics

Three Months Ended June 30, 2022 and 2021

 

 

 

 

 

Electric Deliveries (in GWhs)

 

Revenue (in millions)

 

2022

 

2021

 

% Change

 

Weather - Normal % Change

 

2022

 

2021

 

% Change

Electric Deliveries and Revenues(a)

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential

6,617

 

6,558

 

0.9

%

 

(0.1

)%

 

$

819

 

$

759

 

7.9

%

Small commercial & industrial

7,198

 

7,101

 

1.4

%

 

1.1

%

 

 

312

 

 

377

 

(17.2

)%

Large commercial & industrial

6,641

 

6,368

 

4.3

%

 

4.4

%

 

 

11

 

 

138

 

(92.0

)%

Public authorities & electric railroads

186

 

203

 

(8.4

)%

 

(8.6

)%

 

 

5

 

 

11

 

(54.5

)%

Other(b)

 

 

n/a

 

 

n/a

 

 

 

234

 

 

214

 

9.3

%

Total electric revenues(c)

20,642

 

20,230

 

2.0

%

 

1.7

%

 

 

1,381

 

 

1,499

 

(7.9

)%

Other Revenues(d)

 

 

 

 

 

 

 

 

 

44

 

 

18

 

144.4

%

Total Electric Revenues

 

 

 

 

 

 

 

 

$

1,425

 

$

1,517

 

(6.1

)%

Purchased Power

 

 

 

 

 

 

 

 

$

283

 

$

500

 

(43.4

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

% Change

Heating and Cooling Degree-Days

2022

 

2021

 

Normal

 

From 2021

 

From Normal

Heating Degree-Days

713

 

627

 

697

 

13.7

%

 

2.3

%

Cooling Degree-Days

377

 

391

 

266

 

(3.6

)%

 

41.7

%

 

Six Months Ended June 30, 2022 and 2021

 

Electric Deliveries (in GWhs)

 

Revenue (in millions)

 

2022

 

2021

 

% Change

 

Weather - Normal % Change

 

2022

 

2021

 

% Change

Electric Deliveries and Revenues(a)

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential

13,368

 

13,243

 

0.9

%

 

(0.7

)%

 

$

1,675

 

$

1,502

 

11.5

%

Small commercial & industrial

14,702

 

14,366

 

2.3

%

 

1.7

%

 

 

736

 

 

744

 

(1.1

)%

Large commercial & industrial

13,388

 

12,847

 

4.2

%

 

4.0

%

 

 

165

 

 

271

 

(39.1

)%

Public authorities & electric railroads

443

 

470

 

(5.7

)%

 

(5.9

)%

 

 

20

 

 

22

 

(9.1

)%

Other(b)

 

 

n/a

 

 

n/a

 

 

 

472

 

 

433

 

9.0

%

Total electric revenues(c)

41,901

 

40,926

 

2.4

%

 

1.6

%

 

 

3,068

 

 

2,972

 

3.2

%

Other Revenues(d)

 

 

 

 

 

 

 

 

 

90

 

 

80

 

12.5

%

Total Electric Revenues

 

 

 

 

 

 

 

 

$

3,158

 

$

3,052

 

3.5

%

Purchased Power

 

 

 

 

 

 

 

 

$

921

 

$

1,025

 

(10.1

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

% Change

Heating and Cooling Degree-Days

2022

 

2021

 

Normal

 

From 2021

 

From Normal

Heating Degree-Days

3,878

 

3,616

 

3,782

 

7.2

%

 

2.5

%

Cooling Degree-Days

377

 

391

 

266

 

(3.6

) %

 

41.7

%

Number of Electric Customers

2022

 

2021

Residential

3,711,023

 

3,697,515

Small commercial & industrial

390,357

 

388,877

Large commercial & industrial

1,900

 

1,852

Public authorities & electric railroads

4,853

 

4,873

Total

4,108,133

 

4,093,117

__________

(a)

Reflects revenues from customers purchasing electricity directly from ComEd and customers purchasing electricity from a competitive electric generation supplier, as all customers are assessed delivery charges. For customers purchasing electricity from ComEd, revenues also reflect the cost of energy and transmission.

(b)

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

(c)

Includes operating revenues from affiliates totaling $3 million and $5 million for the three months ended June 30, 2022 and 2021, respectively, and $8 million and $11 million for the six months ended June 30, 2022 and 2021, respectively.

(d)

Includes alternative revenue programs and late payment charges.

PECO Statistics

Three Months Ended June 30, 2022 and 2021

 

 

 

 

 

Electric and Natural Gas Deliveries

 

Revenue (in millions)

 

2022

 

2021

 

% Change

 

Weather-

Normal

% Change

 

2022

 

2021

 

% Change

Electric (in GWhs)

 

 

 

 

 

 

 

 

 

 

 

 

 

Electric Deliveries and Revenues(a)

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential

3,060

 

3,116

 

(1.8

)%

 

(1.1

)%

 

$

431

 

$

383

 

12.5

%

Small commercial & industrial

1,813

 

1,758

 

3.1

%

 

3.0

%

 

 

126

 

 

99

 

27.3

%

Large commercial & industrial

3,416

 

3,475

 

(1.7

)%

 

(1.8

)%

 

 

72

 

 

59

 

22.0

%

Public authorities & electric railroads

135

 

121

 

11.6

%

 

11.9

%

 

 

7

 

 

8

 

(12.5

)%

Other(b)

 

 

n/a

 

 

n/a

 

 

 

68

 

 

54

 

25.9

%

Total electric revenues(c)

8,424

 

8,470

 

(0.5

)%

 

(0.4

)%

 

 

704

 

 

603

 

16.7

%

Other Revenues(d)

 

 

 

 

 

 

 

 

 

4

 

 

7

 

(42.9

)%

Total Electric Revenues

 

 

 

 

 

 

 

 

 

708

 

 

610

 

16.1

%

Natural Gas (in mmcfs)

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural Gas Deliveries and Revenues(e)

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential

5,206

 

5,027

 

3.6

%

 

4.9

%

 

 

71

 

 

55

 

29.1

%

Small commercial & industrial

3,638

 

3,121

 

16.6

%

 

17.2

%

 

 

29

 

 

22

 

31.8

%

Large commercial & industrial

4

 

2

 

100.0

%

 

12.6

%

 

 

 

 

 

N/A

 

Transportation

5,707

 

5,468

 

4.4

%

 

5.7

%

 

 

6

 

 

5

 

20.0

%

Other(f)

 

 

n/a

 

 

n/a

 

 

 

2

 

 

1

 

100.0

%

Total natural gas revenues(g)

14,555

 

13,618

 

6.9

%

 

8.0

%

 

 

108

 

 

83

 

30.1

%

Other Revenues(d)

 

 

 

 

 

 

 

 

 

 

 

 

100.0

%

Total Natural Gas Revenues

 

 

 

 

 

 

 

 

 

108

 

 

83

 

30.1

%

Total Electric and Natural Gas Revenues

 

 

 

 

 

$

816

 

$

693

 

17.7

%

Purchased Power and Fuel

 

 

 

 

 

 

 

 

$

283

 

$

207

 

36.7

%

 

 

 

 

 

 

 

% Change

Heating and Cooling Degree-Days

2022

 

2021

 

Normal

 

From 2021

 

From Normal

Heating Degree-Days

385

 

404

 

424

 

(4.7

)%

 

(9.2

)%

Cooling Degree-Days

434

 

418

 

391

 

3.8

%

 

11.0

%

Six Months Ended June 30, 2022 and 2021

 

 

Electric and Natural Gas Deliveries

 

Revenue (in millions)

 

2022

 

2021

 

% Change

 

Weather-

Normal

% Change

 

2022

 

2021

 

% Change

Electric (in GWhs)

 

 

 

 

 

 

 

 

 

 

 

 

 

Electric Deliveries and Revenues(a)

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential

6,818

 

6,883

 

(0.9

)%

 

0.1

%

 

$

918

 

$

816

 

12.5

%

Small commercial & industrial

3,750

 

3,639

 

3.1

%

 

3.2

%

 

 

237

 

 

199

 

19.1

%

Large commercial & industrial

6,748

 

6,747

 

%

 

%

 

 

136

 

 

116

 

17.2

%

Public authorities & electric railroads

317

 

270

 

17.4

%

 

17.7

%

 

 

15

 

 

17

 

(11.8

)%

Other(b)

 

 

n/a

 

 

n/a

 

 

 

130

 

 

106

 

22.6

%

Total electric revenues(c)

17,633

 

17,539

 

0.5

%

 

1.0

%

 

 

1,436

 

 

1,254

 

14.5

%

Other Revenues(d)

 

 

 

 

 

 

 

 

 

13

 

 

17

 

(23.5

)%

Total Electric Revenues

 

 

 

 

 

 

 

 

 

1,449

 

 

1,271

 

14.0

%

Natural Gas (in mmcfs)

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural Gas Deliveries and Revenues(e)

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential

26,043

 

25,701

 

1.3

%

 

4.4

%

 

 

289