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Exelon Reports Third Quarter 2023 Results

Earnings Release Highlights

  • GAAP Net Income of $0.70 per share and Adjusted (non-GAAP) Operating Earnings of $0.67 per share for the third quarter of 2023
  • Narrowing guidance range for full year 2023 Adjusted (non-GAAP) Operating Earnings from $2.30-$2.42 per share to $2.32-$2.40 per share
  • Reaffirming fully regulated operating EPS compounded annual growth target of 6-8% from 2021 and 2022 guidance midpoints through 2025 and 2026, respectively, with expectation to be at midpoint or better of growth range
  • Strong utility reliability performance – every utility achieved top quartile in outage duration and outage frequency, and ComEd and PHI delivered best-on-record performance for the third straight quarter

Exelon Corporation (Nasdaq: EXC) today reported its financial results for the third quarter of 2023.

“In the third quarter we continued to see strong execution of our financial plan and our strategy to lead the energy transformation, achieving top-quartile service reliability and key milestones in our six active rate reviews,” said Exelon President and CEO Calvin Butler. “As power generation decarbonizes and demand increases from development of major data center hubs, we are embarking on interstate transmission projects selected to meet reliability requirements, including PJM’s most recent recommendation to include our proposal to build needed transmission in Maryland and Pennsylvania. We also will be key partners in facilitating two of the recently announced national hydrogen hubs located in Exelon’s service areas, and three of our operating companies were also selected for federal grants through the landmark Infrastructure Investment and Jobs Act to improve reliability and connectivity in the communities we serve and expand benefits for our customers. We continue to be excited by the progress toward the aggressive goals we’ve set to build a sustainable energy future for our customers and communities.”

“Despite an active summer storm season, Exelon’s third quarter performance remained in line with expectations, as we recorded Adjusted (non-GAAP) Operating Earnings of $0.67 per share,” said Exelon Executive Vice President and CFO Jeanne Jones. “We’re also continuing to execute on the $7.2 billion capital investment planned for 2023, designed to address the needs of tomorrow’s grid. We are narrowing our 2023 EPS guidance range to $2.32 to $2.40 per share. We look forward to ending the year strong and further establishing our position as the nation’s leading transmission and delivery company.”

Third Quarter 2023

Exelon's GAAP Net Income from Continuing Operations for the third quarter of 2023 increased to $0.70 per share from $0.68 GAAP Net Income from Continuing Operations per share in the third quarter of 2022. Adjusted (non-GAAP) Operating Earnings for the third quarter of 2023 decreased to $0.67 per share from $0.75 per share in the third quarter of 2022. For the reconciliations of GAAP Net Income from Continuing Operations to Adjusted (non-GAAP) Operating Earnings, refer to the tables beginning on page 3.

Adjusted (non-GAAP) Operating Earnings in the third quarter of 2023 primarily reflect:

  • Lower utility earnings primarily due to increased operating expense as a result of higher storm costs at PECO, BGE and PHI, unfavorable weather at PECO, increased depreciation expense at BGE and PHI, and increased interest expense at BGE. This was partially offset by higher electric distribution formula rate earnings at ComEd from higher allowed ROE due to an increase in U.S. treasury rates and the impacts of higher rate base, rate increases at PECO, BGE, and PHI, and carrying costs related to the carbon mitigation credit (CMC) regulatory asset at ComEd.
  • Higher costs at the Exelon holding company primarily due to higher interest expense.

Operating Company Results1

ComEd

ComEd's third quarter of 2023 GAAP Net Income increased to $333 million from $291 million in the third quarter of 2022. ComEd's Adjusted (non-GAAP) Operating Earnings for the third quarter of 2023 increased to $338 million from $293 million in the third quarter of 2022, primarily due to increases in electric distribution formula rate earnings (reflecting higher allowed ROE due to an increase in U.S. Treasury rates and the impacts of higher rate base) and carrying costs related to the CMC regulatory asset. Due to revenue decoupling, ComEd's distribution earnings are not affected by actual weather or customer usage patterns.

PECO

PECO’s third quarter of 2023 GAAP Net Income increased to $146 million from $135 million in the third quarter of 2022. PECO's Adjusted (non-GAAP) Operating Earnings for the third quarter of 2023 decreased to $149 million from $174 million in the third quarter of 2022, primarily due to unfavorable weather and an increase in storm costs, partially offset by gas distribution rate increases.

___________

1 Exelon’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 third quarter of 2023 GAAP Net Income increased to $45 million from $33 million in the third quarter of 2022. BGE's Adjusted (non-GAAP) Operating Earnings for the third quarter of 2023 decreased to $47 million from $70 million in the third quarter of 2022, primarily due to an increase in depreciation expense, interest expense, and storm costs, 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 third quarter of 2023 GAAP Net Income decreased to $232 million from $289 million in the third quarter of 2022. PHI’s Adjusted (non-GAAP) Operating Earnings for the third quarter of 2023 decreased to $234 million from $286 million in the third quarter of 2022, primarily due to an increase in depreciation expense and storm costs. This is partially offset by distribution and transmission 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 Third Quarter Highlights

  • Dividend: On November 1, 2023, Exelon’s Board of Directors declared a regular quarterly dividend of $0.36 per share on Exelon’s common stock for the fourth quarter of 2023. The dividend is payable on Friday, December 8, 2023, to shareholders of record of Exelon as of 5 p.m. Eastern time on Wednesday, November 15, 2023.
  • Financing Activities:
    • On September 13, 2023, Pepco issued $100 million of First Mortgage Bonds, 5.35% Series, due September 13, 2033. Pepco used the proceeds to repay existing indebtedness and for general corporate purposes.

GAAP/Adjusted (non-GAAP) Operating Earnings Reconciliation

Adjusted (non-GAAP) Operating Earnings for the third quarter of 2023 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

2023 GAAP Net Income from Continuing Operations

$

0.70

 

$

700

 

$

333

$

146

$

45

$

232

 

Mark-to-Market Impact of Economic Hedging Activities (net of taxes of $4)

 

0.01

 

 

12

 

 

 

 

 

 

Asset Retirement Obligation (net of taxes of $1)

 

 

 

(1

)

 

 

 

 

(1

)

Separation Costs (net of taxes of $5, $2, $1, $1, and $1, respectively)

 

0.01

 

 

14

 

 

5

 

3

 

2

 

4

 

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

 

(0.05

)

 

(54

)

 

 

 

 

 

2023 Adjusted (non-GAAP) Operating Earnings

$

0.67

 

$

671

 

$

338

$

149

$

47

$

234

 

Adjusted (non-GAAP) Operating Earnings for the third 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 from Continuing Operations

$

0.68

$

676

 

$

291

$

135

$

33

$

289

 

Asset Retirement Obligation (net of taxes of $2)

 

 

(4

)

 

 

 

 

(4

)

Asset Impairments (net of taxes of $10)

 

0.04

 

37

 

 

 

 

37

 

 

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

 

 

(3

)

 

2

 

1

 

1

 

1

 

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

 

0.04

 

38

 

 

 

38

 

 

 

2022 Adjusted (non-GAAP) Operating Earnings

$

0.75

$

745

 

$

293

$

174

$

70

$

286

 

__________

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 2023 and 2022 ranged from 24.0% to 29.0%.

Webcast Information

Exelon will discuss third quarter 2023 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 https://investors.exeloncorp.com.

About Exelon

Exelon (Nasdaq: EXC) is a Fortune 250 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 19,000 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 X, formerly known as 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 Nov. 2, 2023.

Cautionary Statements Regarding Forward-Looking Information

This press release contains certain forward-looking statements within the meaning of federal securities laws that are subject to risks and uncertainties. Words such as “could,” “may,” “expects,” “anticipates,” “will,” “targets,” “goals,” “projects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “predicts,” “should,” 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' 2022 Annual Report on Form 10-K in (a) Part I, ITEM 1A. Risk Factors, (b) Part II, ITEM 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations, and (c) Part II, ITEM 8. Financial Statements and Supplementary Data: Note 18, Commitments and Contingencies; (2) the Registrants' Third Quarter 2023 Quarterly Report on Form 10-Q (to be filed on Nov. 2, 2023) 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 (3) other factors discussed in filings with the SEC by the Registrants.

Investors are cautioned not to place undue reliance on these forward-looking statements, 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

14

Pepco

17

DPL

18

ACE

20

 

Consolidating Statements of Operations

(unaudited)

(in millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

ComEd

 

PECO

 

BGE

 

PHI

 

Other (a)

 

Exelon

Three Months Ended September 30, 2023

 

 

 

 

 

 

 

 

 

 

 

Operating revenues

$

2,268

 

 

$

1,037

 

 

$

932

 

 

$

1,773

 

 

$

(30

)

 

$

5,980

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

Purchased power and fuel

 

896

 

 

 

411

 

 

 

380

 

 

 

710

 

 

 

 

 

 

2,397

 

Operating and maintenance

 

385

 

 

 

277

 

 

 

214

 

 

 

339

 

 

 

(28

)

 

 

1,187

 

Depreciation and amortization

 

357

 

 

 

100

 

 

 

161

 

 

 

257

 

 

 

15

 

 

 

890

 

Taxes other than income taxes

 

100

 

 

 

59

 

 

 

80

 

 

 

134

 

 

 

10

 

 

 

383

 

Total operating expenses

 

1,738

 

 

 

847

 

 

 

835

 

 

 

1,440

 

 

 

(3

)

 

 

4,857

 

Operating income (loss)

 

530

 

 

 

190

 

 

 

97

 

 

 

333

 

 

 

(27

)

 

 

1,123

 

Other income and (deductions)

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

(119

)

 

 

(52

)

 

 

(47

)

 

 

(80

)

 

 

(139

)

 

 

(437

)

Other, net

 

16

 

 

 

11

 

 

 

6

 

 

 

28

 

 

 

20

 

 

 

81

 

Total other income and (deductions)

 

(103

)

 

 

(41

)

 

 

(41

)

 

 

(52

)

 

 

(119

)

 

 

(356

)

Income (loss) before income taxes

 

427

 

 

 

149

 

 

 

56

 

 

 

281

 

 

 

(146

)

 

 

767

 

Income taxes

 

94

 

 

 

3

 

 

 

11

 

 

 

49

 

 

 

(90

)

 

 

67

 

Net income (loss)

 

333

 

 

 

146

 

 

 

45

 

 

 

232

 

 

 

(56

)

 

 

700

 

Net income (loss) attributable to common shareholders

$

333

 

 

$

146

 

 

$

45

 

 

$

232

 

 

$

(56

)

 

$

700

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended September 30, 2022

 

 

 

 

 

 

 

 

 

 

 

Operating revenues

$

1,378

 

 

$

1,014

 

 

$

870

 

 

$

1,598

 

 

$

(15

)

 

$

4,845

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

Purchased power and fuel

 

121

 

 

 

403

 

 

 

350

 

 

 

610

 

 

 

 

 

 

1,484

 

Operating and maintenance

 

355

 

 

 

243

 

 

 

235

 

 

 

277

 

 

 

38

 

 

 

1,148

 

Depreciation and amortization

 

333

 

 

 

92

 

 

 

148

 

 

 

238

 

 

 

14

 

 

 

825

 

Taxes other than income taxes

 

104

 

 

 

60

 

 

 

77

 

 

 

129

 

 

 

7

 

 

 

377

 

Total operating expenses

 

913

 

 

 

798

 

 

 

810

 

 

 

1,254

 

 

 

59

 

 

 

3,834

 

Operating income (loss)

 

465

 

 

 

216

 

 

 

60

 

 

 

344

 

 

 

(74

)

 

 

1,011

 

Other income and (deductions)

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

(104

)

 

 

(45

)

 

 

(39

)

 

 

(72

)

 

 

(105

)

 

 

(365

)

Other, net

 

14

 

 

 

8

 

 

 

5

 

 

 

19

 

 

 

76

 

 

 

122

 

Total other income and (deductions)

 

(90

)

 

 

(37

)

 

 

(34

)

 

 

(53

)

 

 

(29

)

 

 

(243

)

Income (loss) before income taxes

 

375

 

 

 

179

 

 

 

26

 

 

 

291

 

 

 

(103

)

 

 

768

 

Income taxes

 

84

 

 

 

44

 

 

 

(7

)

 

 

2

 

 

 

(31

)

 

 

92

 

Net income (loss)

 

291

 

 

 

135

 

 

 

33

 

 

 

289

 

 

 

(72

)

 

 

676

 

Net income (loss) attributable to common shareholders

$

291

 

 

$

135

 

 

$

33

 

 

$

289

 

 

$

(72

)

 

$

676

 

 

 

 

 

 

 

 

 

 

 

 

 

Change in net income (loss) from 2022 to 2023

$

42

 

 

$

11

 

 

$

12

 

 

$

(57

)

 

$

16

 

 

$

24

 

 

Consolidating Statements of Operations

(unaudited)

(in millions)

 

 

ComEd

 

PECO

 

BGE

 

PHI

 

Other (a)

 

Exelon

Nine Months Ended September 30, 2023

 

 

 

 

 

 

 

 

 

 

 

Operating revenues

$

5,836

 

 

$

2,977

 

 

$

2,986

 

 

$

4,615

 

 

$

(54

)

 

$

16,360

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

Purchased power and fuel

 

2,068

 

 

 

1,197

 

 

 

1,145

 

 

 

1,805

 

 

 

 

 

 

6,215

 

Operating and maintenance

 

1,077

 

 

 

786

 

 

 

632

 

 

 

952

 

 

 

88

 

 

 

3,535

 

Depreciation and amortization

 

1,045

 

 

 

297

 

 

 

487

 

 

 

741

 

 

 

46

 

 

 

2,616

 

Taxes other than income taxes

 

282

 

 

 

156

 

 

 

239

 

 

 

366

 

 

 

20

 

 

 

1,063

 

Total operating expenses

 

4,472

 

 

 

2,436

 

 

 

2,503

 

 

 

3,864

 

 

 

154

 

 

 

13,429

 

Operating income (loss)

 

1,364

 

 

 

541

 

 

 

483

 

 

 

751

 

 

 

(208

)

 

 

2,931

 

Other income and (deductions)

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

(357

)

 

 

(149

)

 

 

(135

)

 

 

(238

)

 

 

(398

)

 

 

(1,277

)

Other, net

 

50

 

 

 

26

 

 

 

14

 

 

 

80

 

 

 

161

 

 

 

331

 

Total other income and (deductions)

 

(307

)

 

 

(123

)

 

 

(121

)

 

 

(158

)

 

 

(237

)

 

 

(946

)

Income (loss) from continuing operations before income taxes

 

1,057

 

 

 

418

 

 

 

362

 

 

 

593

 

 

 

(445

)

 

 

1,985

 

Income taxes

 

235

 

 

 

8

 

 

 

76

 

 

 

103

 

 

 

(148

)

 

 

274

 

Net income (loss) from continuing operations after income taxes

 

822

 

 

 

410

 

 

 

286

 

 

 

490

 

 

 

(297

)

 

 

1,711

 

Net income from discontinued operations after income taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

822

 

 

 

410

 

 

 

286

 

 

 

490

 

 

 

(297

)

 

 

1,711

 

Net income attributable to noncontrolling interests

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) attributable to common shareholders

$

822

 

 

$

410

 

 

$

286

 

 

$

490

 

 

$

(297

)

 

$

1,711

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30, 2022

 

 

 

 

 

 

 

 

 

 

 

Operating revenues

$

4,536

 

 

$

2,877

 

 

$

2,810

 

 

$

4,223

 

 

$

(34

)

 

$

14,412

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

Purchased power and fuel

 

1,041

 

 

 

1,093

 

 

 

1,093

 

 

 

1,609

 

 

 

(1

)

 

 

4,835

 

Operating and maintenance

 

1,045

 

 

 

705

 

 

 

658

 

 

 

867

 

 

 

161

 

 

 

3,436

 

Depreciation and amortization

 

982

 

 

 

277

 

 

 

470

 

 

 

697

 

 

 

46

 

 

 

2,472

 

Taxes other than income taxes

 

289

 

 

 

155

 

 

 

225

 

 

 

362

 

 

 

30

 

 

 

1,061

 

Total operating expenses

 

3,357

 

 

 

2,230

 

 

 

2,446

 

 

 

3,535

 

 

 

236

 

 

 

11,804

 

Loss on sale of assets and businesses

 

(2

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2

)

Operating income (loss)

 

1,177

 

 

 

647

 

 

 

364

 

 

 

688

 

 

 

(270

)

 

 

2,606

 

Other income and (deductions)

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

(308

)

 

 

(129

)

 

 

(110

)

 

 

(216

)

 

 

(300

)

 

 

(1,063

)

Other, net

 

40

 

 

 

23

 

 

 

16

 

 

 

56

 

 

 

300

 

 

 

435

 

Total other income and (deductions)

 

(268

)

 

 

(106

)

 

 

(94

)

 

 

(160

)

 

 

 

 

 

(628

)

Income (loss) from continuing operations before income taxes

 

909

 

 

 

541

 

 

 

270

 

 

 

528

 

 

 

(270

)

 

 

1,978

 

Income taxes

 

203

 

 

 

67

 

 

 

3

 

 

 

10

 

 

 

73

 

 

 

356

 

Net income (loss) from continuing operations after income taxes

 

706

 

 

 

474

 

 

 

267

 

 

 

518

 

 

 

(343

)

 

 

1,622

 

Net income from discontinued operations after income taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

117

 

 

 

117

 

Net income (loss)

 

706

 

 

 

474

 

 

 

267

 

 

 

518

 

 

 

(226

)

 

 

1,739

 

Net income attributable to noncontrolling interests

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

 

 

1

 

Net income (loss) attributable to common shareholders

$

706

 

 

$

474

 

 

$

267

 

 

$

518

 

 

$

(227

)

 

$

1,738

 

 

 

 

 

 

 

 

 

 

 

 

 

Change in net income (loss) from continuing operations from 2022 to 2023

$

116

 

 

$

(64

)

 

$

19

 

 

$

(28

)

 

$

46

 

 

$

89

 

__________

(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)

 

 

 

September 30, 2023

 

December 31, 2022

Assets

 

 

 

 

Current assets

 

 

 

 

Cash and cash equivalents

 

$

300

 

 

$

407

 

Restricted cash and cash equivalents

 

 

435

 

 

 

566

 

Accounts receivable

 

 

 

 

Customer accounts receivable

 

 

2,575

 

 

 

2,544

 

Customer allowance for credit losses

 

 

(341

)

 

 

(327

)

Customer accounts receivable, net

 

 

2,234

 

 

 

2,217

 

Other accounts receivable

 

 

1,168

 

 

 

1,426

 

Other allowance for credit losses

 

 

(88

)

 

 

(82

)

Other accounts receivable, net

 

 

1,080

 

 

 

1,344

 

Inventories, net

 

 

 

 

Fossil fuel

 

 

105

 

 

 

208

 

Materials and supplies

 

 

657

 

 

 

547

 

Regulatory assets

 

 

2,307

 

 

 

1,641

 

Other

 

 

401

 

 

 

406

 

Total current assets

 

 

7,519

 

 

 

7,336

 

Property, plant, and equipment, net

 

 

72,458

 

 

 

69,076

 

Deferred debits and other assets

 

 

 

 

Regulatory assets

 

 

8,128

 

 

 

8,037

 

Goodwill

 

 

6,630

 

 

 

6,630

 

Receivable related to Regulatory Agreement Units

 

 

2,923

 

 

 

2,897

 

Investments

 

 

246

 

 

 

232

 

Other

 

 

1,355

 

 

 

1,141

 

Total deferred debits and other assets

 

 

19,282

 

 

 

18,937

 

Total assets

 

$

99,259

 

 

$

95,349

 

 

 

 

 

 

 

 

September 30, 2023

 

December 31, 2022

Liabilities and shareholders’ equity

 

 

 

 

Current liabilities

 

 

 

 

Short-term borrowings

 

$

1,720

 

 

$

2,586

 

Long-term debt due within one year

 

 

1,654

 

 

 

1,802

 

Accounts payable

 

 

2,684

 

 

 

3,382

 

Accrued expenses

 

 

1,315

 

 

 

1,226

 

Payables to affiliates

 

 

5

 

 

 

5

 

Regulatory liabilities

 

 

437

 

 

 

437

 

Mark-to-market derivative liabilities

 

 

44

 

 

 

8

 

Unamortized energy contract liabilities

 

 

8

 

 

 

10

 

Other

 

 

933

 

 

 

1,155

 

Total current liabilities

 

 

8,800

 

 

 

10,611

 

Long-term debt

 

 

39,431

 

 

 

35,272

 

Long-term debt to financing trusts

 

 

390

 

 

 

390

 

Deferred credits and other liabilities

 

 

 

 

Deferred income taxes and unamortized investment tax credits

 

 

11,792

 

 

 

11,250

 

Regulatory liabilities

 

 

9,236

 

 

 

9,112

 

Pension obligations

 

 

1,085

 

 

 

1,109

 

Non-pension postretirement benefit obligations

 

 

515

 

 

 

507

 

Asset retirement obligations

 

 

269

 

 

 

269

 

Mark-to-market derivative liabilities

 

 

113

 

 

 

83

 

Unamortized energy contract liabilities

 

 

29

 

 

 

35

 

Other

 

 

2,129

 

 

 

1,967

 

Total deferred credits and other liabilities

 

 

25,168

 

 

 

24,332

 

Total liabilities

 

 

73,789

 

 

 

70,605

 

Commitments and contingencies

 

 

 

 

Shareholders’ equity

 

 

 

 

Common stock

 

 

20,956

 

 

 

20,908

 

Treasury stock, at cost

 

 

(123

)

 

 

(123

)

Retained earnings

 

 

5,233

 

 

 

4,597

 

Accumulated other comprehensive loss, net

 

 

(596

)

 

 

(638

)

Total shareholders’ equity

 

 

25,470

 

 

 

24,744

 

Total liabilities and shareholders’ equity

 

$

99,259

 

 

$

95,349

 

 

Exelon

Consolidated Statements of Cash Flows

(unaudited)

(in millions)

 

 

 

Nine Months Ended September 30,

 

 

 

2023

 

 

 

2022

 

Cash flows from operating activities

 

 

 

 

Net income

 

$

1,711

 

 

$

1,739

 

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

 

 

 

 

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

 

 

2,616

 

 

 

2,679

 

Asset impairments

 

 

 

 

 

46

 

Gain on sales of assets and businesses

 

 

 

 

 

(8

)

Deferred income taxes and amortization of investment tax credits

 

 

210

 

 

 

256

 

Net fair value changes related to derivatives

 

 

21

 

 

 

(59

)

Net realized and unrealized losses on NDT funds

 

 

 

 

 

205

 

Net unrealized losses on equity investments

 

 

 

 

 

16

 

Other non-cash operating activities

 

 

(237

)

 

 

265

 

Changes in assets and liabilities:

 

 

 

 

Accounts receivable

 

 

82

 

 

 

(1,049

)

Inventories

 

 

(8

)

 

 

(121

)

Accounts payable and accrued expenses

 

 

(454

)

 

 

823

 

Option premiums paid, net

 

 

 

 

 

(39

)

Collateral (paid) received, net

 

 

(183

)

 

 

1,456

 

Income taxes

 

 

50

 

 

 

3

 

Regulatory assets and liabilities, net

 

 

(395

)

 

 

(689

)

Pension and non-pension postretirement benefit contributions

 

 

(97

)

 

 

(596

)

Other assets and liabilities

 

 

(24

)

 

 

(786

)

Net cash flows provided by operating activities

 

 

3,292

 

 

 

4,141

 

Cash flows from investing activities

 

 

 

 

Capital expenditures

 

 

(5,540

)

 

 

(5,179

)

Proceeds from NDT fund sales

 

 

 

 

 

488

 

Investment in NDT funds

 

 

 

 

 

(516

)

Collection of DPP

 

 

 

 

 

169

 

Proceeds from sales of assets and businesses

 

 

 

 

 

16

 

Other investing activities

 

 

25

 

 

 

36

 

Net cash flows used in investing activities

 

 

(5,515

)

 

 

(4,986

)

Cash flows from financing activities

 

 

 

 

Changes in short-term borrowings

 

 

(1,116

)

 

 

(335

)

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

 

 

400

 

 

 

1,150

 

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

 

 

(150

)

 

 

(925

)

Issuance of long-term debt

 

 

5,300

 

 

 

5,801

 

Retirement of long-term debt

 

 

(1,209

)

 

 

(2,067

)

Issuance of common stock

 

 

 

 

 

563

 

Dividends paid on common stock

 

 

(1,074

)

 

 

(999

)

Proceeds from employee stock plans

 

 

30

 

 

 

26

 

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

 

 

 

 

 

(2,594

)

Other financing activities

 

 

(101

)

 

 

(121

)

Net cash flows provided by financing activities

 

 

2,080

 

 

 

499

 

Decrease in cash, restricted cash, and cash equivalents

 

 

(143

)

 

 

(346

)

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

 

 

1,090

 

 

 

1,619

 

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

 

$

947

 

 

$

1,273

 

 

Exelon

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

Three Months Ended September 30, 2023 and 2022

(unaudited)

(in millions, except per share data)

 

 

Exelon

Earnings per

Diluted

Share

 

ComEd

 

PECO

 

BGE

 

PHI

 

Other (a)

 

Exelon

2022 GAAP Net Income (Loss) from Continuing Operations

$

0.68

 

 

$

291

 

 

$

135

 

 

$

33

 

 

$

289

 

 

$

(72

)

 

$

676

 

Asset Retirement Obligation (net of taxes of $2)

 

 

 

 

 

 

 

 

 

 

 

 

 

(4

)

 

 

 

 

 

(4

)

Asset Impairments (net of taxes of $10) (1)

 

0.04

 

 

 

 

 

 

 

 

 

37

 

 

 

 

 

 

 

 

 

37

 

Separation Costs (net of taxes of $1, $0, $0, $0, $2, and $1, respectively) (2)

 

 

 

 

2

 

 

 

1

 

 

 

1

 

 

 

1

 

 

 

(8

)

 

 

(3

)

Income Tax-Related Adjustments (entire amount represents tax expense) (3)

 

0.04

 

 

 

 

 

 

38

 

 

 

 

 

 

 

 

 

 

 

 

38

 

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

$

0.75

 

 

$

293

 

 

$

174

 

 

$

70

 

 

$

286

 

 

$

(78

)

 

$

745

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

Weather

$

(0.03

)

 

$

 

(b)

$

(29

)

 

$

 

(b)

$

(1

)

(b)

$

 

 

$

(30

)

Load

 

0.01

 

 

 

 

(b)

 

11

 

 

 

 

(b)

 

(1

)

(b)

 

 

 

 

10

 

Distribution and Transmission Rates (4)

 

0.06

 

 

 

36

 

(c)

 

6

��

(c)

 

8

 

(c)

 

11

 

(c)

 

 

 

 

61

 

Other Energy Delivery (5)

 

0.10

 

 

 

46

 

(c)

 

23

 

(c)

 

3

 

(c)

 

31

 

(c)

 

 

 

 

103

 

Operating and Maintenance Expense (6)

 

(0.05

)

 

 

(20

)

 

 

(24

)

 

 

(15

)

 

 

(35

)

 

 

44

 

 

 

(50

)

Pension and Non-Pension Postretirement Benefits

 

(0.01

)

 

 

2

 

 

 

 

 

 

(1

)

 

 

(4

)

 

 

(12

)

 

 

(15

)

Depreciation and Amortization Expense (7)

 

(0.04

)

 

 

(17

)

 

 

(6

)

 

 

(10

)

 

 

(12

)

 

 

(1

)

 

 

(46

)

Interest Expense and Other (8)

 

(0.11

)

 

 

(2

)

 

 

(6

)

 

 

(8

)

 

 

(41

)

 

 

(50

)

 

 

(107

)

Share Differential (9)

 

(0.01

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

$

(0.08

)

 

$

45

 

 

$

(25

)

 

$

(23

)

 

$

(52

)

 

$

(19

)

 

$

(74

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2023 GAAP Net Income (Loss) from Continuing Operations

$

0.70

 

 

$

333

 

 

$

146

 

 

$

45

 

 

$

232

 

 

$

(56

)

 

$

700

 

Mark-to-Market Impact of Economic Hedging Activities (net of taxes of $4)

 

0.01

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

12

 

 

 

12

 

Asset Retirement Obligation (net of taxes of $1)

 

 

 

 

 

 

 

 

 

 

 

 

 

(1

)

 

 

 

 

 

(1

)

Separation Costs (net of taxes of $2, $1, $1, $1, and $5, respectively) (2)

 

0.01

 

 

 

5

 

 

 

3

 

 

 

2

 

 

 

4

 

 

 

 

 

 

14

 

Income Tax-Related Adjustments (entire amount represents tax expense) (3)

 

(0.05

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(54

)

 

 

(54

)

2023 Adjusted (non-GAAP) Operating Earnings (Loss)

$

0.67

 

 

$

338

 

 

$

149

 

 

$

47

 

 

$

234

 

 

$

(97

)

 

$

671

 

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 2023 and 2022 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)

Reflects costs related to the impairment of an office building at BGE, which are recorded in Operating and maintenance expense.

(2)

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 and Other, net.

(3)

In 2022, reflects an adjustment to exclude one-time non-cash impacts associated with the remeasurement of deferred income taxes as a result of the reduction in Pennsylvania corporate income tax rate. In 2023, reflects the adjustment to state deferred income taxes due to changes in forecasted apportionment.

(4)

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 primarily due to distribution rate increases. For PHI, reflects increased revenue primarily due to distribution and transmission rate increases.

(5)

For ComEd, reflects increased electric distribution, transmission, and energy efficiency revenues due to higher fully recoverable costs and also reflects carrying costs related to the CMC regulatory assets. For PECO, reflects increased transmission and energy efficiency revenues due to regulatory required programs. For PHI, reflects higher revenues due to certain EDIT benefits being fully amortized and passed through to customers, which is offset in Interest expense and Other.

(6)

Represents Operating and maintenance expense, excluding pension and non-pension postretirement benefits. For PECO, primarily reflects increased storm costs and increased program costs related to regulatory required programs. For BGE, primarily reflects increased storm costs. For PHI, reflects increased credit loss expense and increased storm costs. For Corporate, primarily reflects a decrease in Operating and maintenance expense with an offsetting decrease in other income, for costs billed to Constellation for services provided by Exelon through the Transition Services Agreement (TSA).

(7)

Reflects ongoing capital expenditures across all utilities.

(8)

For PHI, primarily reflects higher income tax expense due to certain EDIT benefits being fully amortized and passed through to customers, with an offsetting increase in Other energy delivery. For Corporate, primarily reflects a decrease in other income for costs billed to Constellation for services provided by Exelon through the TSA, with an offsetting decrease in Operating and maintenance expense.

(9)

Reflects the impact on earnings per share due to the increase in Exelon's average diluted common shares outstanding as a result of the August 2022 common stock issuance.

 

Exelon

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

Nine Months Ended September 30, 2023 and 2022

(unaudited)

(in millions, except per share data)

 

 

Exelon

Earnings

per Diluted

Share

 

ComEd

 

PECO

 

BGE

 

PHI

 

Other (a)

 

Exelon

2022 GAAP Net Income (Loss) from Continuing Operations

$

1.65

 

 

$

706

 

 

$

474

 

 

$

267

 

 

$

518

 

 

$

(343

)

 

$

1,622

 

ERP System Implementation Costs (net of taxes of $0) (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

 

 

1

 

Asset Retirement Obligation (net of taxes of $2)

 

 

 

 

 

 

 

 

 

 

 

 

 

(4

)

 

 

 

 

 

(4

)

Asset Impairments (net of taxes of $10) (2)

 

0.04

 

 

 

 

 

 

 

 

 

37

 

 

 

 

 

 

 

 

 

37

 

Separation Costs (net of taxes of $4, $2, $2, $3, $0 and $10, respectively) (3)

 

0.03

 

 

 

9

 

 

 

4

 

 

 

4

 

 

 

7

 

 

 

1

 

 

 

25

 

Income Tax-Related Adjustments (entire amount represents tax expense) (4)

 

0.13

 

 

 

 

 

 

38

 

 

 

 

 

 

3

 

 

 

89

 

 

 

130

 

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

$

1.84

 

 

$

715

 

 

$

517

 

 

$

308

 

 

$

523

 

 

$

(252

)

 

$

1,811

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

Weather

$

(0.10

)

 

$

 

(b)

$

(92

)

 

$

 

(b)

$

(12

)

(b)

$

 

 

$

(104

)

Load

 

 

 

 

 

(b)

 

4

 

 

 

 

(b)

 

(4

)

(b)

 

 

 

 

 

Distribution and Transmission Rates (5)

 

0.24

 

 

 

101

 

(c)

 

41

 

(c)

 

33

 

(c)

 

60

 

(c)

 

 

 

 

235

 

Other Energy Delivery (6)

 

0.22

 

 

 

105

 

(c)

 

44

 

(c)

 

(3

)

(c)

 

76

 

(c)

 

 

 

 

222

 

Operating and Maintenance Expense (7)

 

(0.08

)

 

 

(33

)

 

 

(64

)

 

 

(13

)

 

 

(22

)

 

 

54

 

 

 

(78

)

Pension and Non-Pension Postretirement Benefits

 

(0.02

)

 

 

8

 

 

 

2

 

 

 

(3

)

 

 

(12

)

 

 

(14

)

 

 

(19

)

Depreciation and Amortization Expense (8)

 

(0.10

)

 

 

(45

)

 

 

(15

)

 

 

(10

)

 

 

(25

)

 

 

(4

)

 

 

(99

)

Interest Expense and Other (9)

 

(0.20

)

 

 

(12

)

 

 

(24

)

 

 

(23

)

 

 

(62

)

 

 

(73

)

 

 

(194

)

Share Differential (10)

 

(0.02

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

$

(0.06

)

 

$

124

 

 

$

(104

)

 

$

(19

)

 

$

(1

)

 

$

(37

)

 

$

(37

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2023 GAAP Net Income (Loss) from Continuing Operations

$

1.72

 

 

$

822

 

 

$

410

 

 

$

286

 

 

$

490

 

 

$

(297

)

 

$

1,711

 

Mark-to-Market Impact of Economic Hedging Activities (net of taxes of $4)

 

0.01

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

14

 

 

 

14

 

Change in Environmental Liabilities (net of taxes of $8)

 

0.03

 

 

 

 

 

 

 

 

 

 

 

 

29

 

 

 

 

 

 

29

 

Asset Retirement Obligation (net of taxes of $1)

 

 

 

 

 

 

 

 

 

 

 

 

 

(1

)

 

 

 

 

 

(1

)

SEC Matter Loss Contingency (net of taxes of $0)

 

0.05

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

46

 

 

 

46

 

Separation Costs (net of taxes of $3, $1, $1, $2, $0, and $7, respectively) (3)

 

0.02

 

 

 

7

 

 

 

3

 

 

 

3

 

 

 

5

 

 

 

1

 

 

 

19

 

Change in FERC Audit Liability (net of taxes of $4)

 

0.01

 

 

 

11

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

11

 

Income Tax-Related Adjustments (entire amount represents tax expense) (4)

 

(0.05

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(54

)

 

 

(54

)

2023 Adjusted (non-GAAP) Operating Earnings (Loss)

$

1.78

 

 

$

839

 

 

$

413

 

 

$

289

 

 

$

522

 

 

$

(289

)

 

$

1,774

 

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 2023 and 2022 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)

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

(2)

Reflects costs related to the impairment of an office building at BGE, which are recorded in Operating and maintenance expense.

(3)

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 and Other, net.

(4)

In 2022, for PECO, reflects an adjustment to exclude one-time non-cash impacts associated with the remeasurement of deferred income taxes as a result of the reduction in Pennsylvania corporate income tax rate. For Corporate, 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. In 2023, reflects the adjustment to state deferred income taxes dues to changes in forecasted apportionment.

(5)

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 and transmission rate increases.

(6)

For ComEd, reflects increased electric distribution, transmission, and energy efficiency revenues due to higher fully recoverable costs and also reflects carrying costs related to the CMC regulatory assets. For PECO, reflects increased transmission and energy efficiency revenues due to regulatory required programs. For PHI, reflects higher revenues due to certain EDIT benefits being fully amortized and passed through to customers, which is offset in Interest expense and Other and the regulatory asset amortization of the ACE Purchase Power Agreement termination obligation recorded in the first quarter of 2022, which is fully recoverable.

(7)

Represents Operating and maintenance expense, excluding pension and non-pension postretirement benefits. For ComEd, reflects increased contracting costs. For PECO, primarily reflects increased storm costs and increased program costs related to regulatory required programs. For BGE, primarily reflects increased storm costs. For PHI, reflects increased contracting costs due to timing. For Corporate, includes the following three items: 1) a decrease in Operating and maintenance expense with an offsetting decrease in other income for costs billed to Constellation for services provided by Exelon through the TSA 2) 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 Q1 2023 includes no costs compared to one month of costs for the period prior to the separation for YTD Q1 2022), and 3) an increase in costs for the DPA related matters.

(8)

Reflects ongoing capital expenditures across all utilities and higher depreciation rates effective January 2023 for ComEd. For PHI, includes the regulatory asset amortization of the ACE Purchase Power Agreement termination obligation recorded in the first quarter of 2022, which is fully recoverable in Other Energy Delivery.

(9)

For PHI, primarily reflects higher income tax expense due to certain EDIT benefits being fully amortized and passed through to customers, with an offsetting increase in Other energy delivery. For Corporate, primarily reflects an increase in interest expense and a decrease in other income for costs billed to Constellation for services provided by Exelon through the TSA, with an offsetting decrease in Operating and maintenance expense. These items are partially offset by an increase in other income for the proposed settlement of the DPA related derivative claims.

(10)

Reflects the impact on earnings per share due to the increase in Exelon's average diluted common shares outstanding as a result of the August 2022 common stock issuance.

 

ComEd Statistics

Three Months Ended September 30, 2023 and 2022

 

 

Electric Deliveries (in GWhs)

 

Revenue (in millions)

 

2023

 

2022

 

% Change

 

Weather -

Normal %

Change

 

2023

 

2022

 

% Change

Electric Deliveries and Revenues(a)

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential

8,199

 

8,467

 

(3.2

)%

 

(5.3

)%

 

$

1,047

 

$

935

 

 

12.0

%

Small commercial & industrial

7,822

 

8,003

 

(2.3

)%

 

(2.3

)%

 

 

540

 

 

217

 

 

148.8

%

Large commercial & industrial

7,039

 

6,973

 

0.9

%

 

0.2

%

 

 

263

 

 

(117

)

 

(324.8

)%

Public authorities & electric railroads

209

 

216

 

(3.2

)%

 

(3.5

)%

 

 

11

 

 

3

 

 

266.7

%

Other(b)

 

 

n/a

 

 

n/a

 

 

 

265

 

 

246

 

 

7.7

%

Total electric revenues(c)

23,269

 

23,659

 

(1.6

)%

 

(2.6

)%

 

 

2,126

 

 

1,284

 

 

65.6

%

Other Revenues(d)

 

 

 

 

 

 

 

 

 

142

 

 

94

 

 

51.1

%

Total Electric Revenues

 

 

 

 

 

 

 

 

$

2,268

 

$

1,378

 

 

64.6

%

Purchased Power

 

 

 

 

 

 

 

 

$

896

 

$

121

 

 

640.5

%

 

 

 

 

 

 

 

% Change

Heating and Cooling Degree-Days

2023

 

2022

 

Normal

 

From 2022

 

From Normal

Heating Degree-Days

15

 

75

 

79

 

(80.0

)%

 

(81.0

)%

Cooling Degree-Days

791

 

778

 

722

 

1.7

%

 

9.6

%

 

Nine Months Ended September 30, 2023 and 2022

 

 

Electric Deliveries (in GWhs)

 

Revenue (in millions)

 

2023

 

2022

 

% Change

 

Weather -

Normal %

Change

 

2023

 

2022

 

% Change

Electric Deliveries and Revenues(a)

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential

20,217

 

21,835

 

(7.4

)%

 

(3.3

)%

 

$

2,744

 

$

2,610

 

5.1

%

Small commercial & industrial

21,854

 

22,705

 

(3.7

)%

 

(2.3

)%

 

 

1,363

 

 

953

 

43.0

%

Large commercial & industrial

20,101

 

20,361

 

(1.3

)%

 

(0.7

)%

 

 

553

 

 

48

 

1,052.1

%

Public authorities & electric railroads

622

 

659

 

(5.6

)%

 

(4.8

)%

 

 

33

 

 

22

 

50.0

%

Other(b)

 

 

n/a

 

 

n/a

 

 

 

716

 

 

718

 

(0.3

)%

Total electric revenues(c)

62,794

 

65,560

 

(4.2

)%

 

(2.2

)%

 

 

5,409

 

 

4,351

 

24.3

%

Other Revenues(d)

 

 

 

 

 

 

 

 

 

427

 

 

185

 

130.8

%

Total Electric Revenues

 

 

 

 

 

 

 

 

$

5,836

 

$

4,536

 

28.7

%

Purchased Power

 

 

 

 

 

 

 

 

$

2,068

 

$

1,041

 

98.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

% Change

Heating and Cooling Degree-Days

2023

 

2022

 

Normal

 

From 2022

 

From Normal

Heating Degree-Days

3,267

 

3,953

 

3,829

 

(17.4

)%

 

(14.7

)%

Cooling Degree-Days

1,089

 

1,155

 

988

 

(5.7

)%

 

10.2

%

Number of Electric Customers

2023

 

2022

Residential

3,733,678

 

3,711,894

Small commercial & industrial

391,222

 

390,303

Large commercial & industrial

1,887

 

1,892

Public authorities & electric railroads

4,802

 

4,854

Total

4,131,589

 

4,108,943

__________

(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 $9 million and $6 million for the three months ended September 30, 2023 and 2022, respectively, and $14 million and $14 million for the nine months ended September 30, 2023 and 2022, respectively.

(d)

Includes alternative revenue programs and late payment charges.

 

PECO Statistics

Three Months Ended September 30, 2023 and 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Electric and Natural Gas Deliveries

 

Revenue (in millions)

 

2023

 

2022

 

% Change

 

Weather-

Normal %

Change

 

2023

 

2022

 

% Change

Electric (in GWhs)

 

 

 

 

 

 

 

 

 

 

 

 

 

Electric Deliveries and Revenues(a)

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential

4,134

 

4,386

 

(5.7

)%

 

4.9

%

 

$

654

 

$

620

 

5.5

%

Small commercial & industrial

2,070

 

2,139

 

(3.2

)%

 

0.8

%

 

 

148

 

 

149

 

(0.7

)%

Large commercial & industrial

3,830

 

3,943

 

(2.9

)%

 

(0.4

)%

 

 

67

 

 

93

 

(28.0

)%

Public authorities & electric railroads

152

 

172

 

(11.6

)%

 

(10.8

)%

 

 

7

 

 

8

 

(12.5

)%

Other(b)

 

 

n/a

 

 

n/a

 

 

 

80

 

 

71

 

12.7

%

Total electric revenues(c)

10,186

 

10,640

 

(4.3

)%

 

1.7

%

 

 

956

 

 

941

 

1.6

%

Other Revenues(d)

 

 

 

 

 

 

 

 

 

14

 

 

 

n/a

 

Total Electric Revenues

 

 

 

 

 

 

 

 

 

970

 

 

941

 

3.1

%

Natural Gas (in mmcfs)

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural Gas Deliveries and Revenues(e)

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential

2,134

 

2,197

 

(2.9

)%

 

(5.4

)%

 

 

43

 

 

46

 

(6.5

)%

Small commercial & industrial

1,939

 

2,054

 

(5.6

)%

 

(8.1

)%

 

 

16

 

 

20

 

(20.0

)%

Large commercial & industrial

4

 

6

 

(33.3

)%

 

(7.1

)%

 

 

 

 

 

n/a

 

Transportation

5,278

 

5,162

 

2.2

%

 

8.3

%

 

 

7

 

 

5

 

40.0

%

Other(f)

 

 

n/a

 

 

n/a

 

 

 

1

 

 

2

 

(50.0

)%

Total natural gas revenues(g)

9,355

 

9,419

 

(0.7

)%

 

1.1

%

 

 

67

 

 

73

 

(8.2

)%

Other Revenues(d)

 

 

 

 

 

 

 

 

 

 

 

 

n/a

 

Total Natural Gas Revenues

 

 

 

 

 

 

 

 

 

67

 

 

73

 

(8.2

)%

Total Electric and Natural Gas Revenues

 

 

 

 

 

$

1,037

 

$

1,014

 

2.3

%

Purchased Power and Fuel

 

 

 

 

 

 

 

 

$

411

 

$

403

 

2.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

% Change

Heating and Cooling Degree-Days

2023

 

2022

 

Normal

 

From 2022

 

From Normal

Heating Degree-Days

18

 

19

 

22

 

(5.3

)%

 

(18.2

)%

Cooling Degree-Days

1,064

 

1,290

 

1,022

 

(17.5

)%

 

4.1

%

 

Nine Months Ended September 30, 2023 and 2022

 

 

Electric and Natural Gas Deliveries

 

Revenue (in millions)

 

2023

 

2022

 

% Change

 

Weather-

Normal %

Change

 

2023

 

2022

 

% Change

Electric (in GWhs)

 

 

 

 

 

 

 

 

 

 

 

 

 

Electric Deliveries and Revenues(a)

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential

10,186

 

11,204

 

(9.1

)%

 

0.7

%

 

$

1,617

 

$

1,538

 

5.1

%

Small commercial & industrial

5,616

 

5,889

 

(4.6

)%

 

%

 

 

415

 

 

386

 

7.5

%

Large commercial & industrial

10,398

 

10,691

 

(2.7

)%

 

(0.3

)%

 

 

196

 

 

229

 

(14.4

)%

Public authorities & electric railroads

464

 

489

 

(5.1

)%

 

(5.0

)%

 

 

23

 

 

23

 

%

Other(b)

 

 

n/a

 

 

n/a

 

 

 

219

 

 

202

 

8.4

%

Total electric revenues(c)

26,664

 

28,273

 

(5.7

)%

 

0.1

%

 

 

2,470

 

 

2,378

 

3.9

%

Other Revenues(d)

 

 

 

 

 

 

 

 

 

14

 

 

12

 

16.7

%

Total Electric Revenues

 

 

 

 

 

 

 

 

 

2,484

 

 

2,390

 

3.9

%

Natural Gas (in mmcfs)

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural Gas Deliveries and Revenues(e)

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential

23,697

 

28,240

 

(16.1

)%

 

(3.9

)%

 

 

335

 

 

335

 

%

Small commercial & industrial

14,381

 

16,238

 

(11.4

)%

 

(1.8

)%

 

 

123

 

 

125

 

(1.6

)%

Large commercial & industrial

39

 

20

 

95.0

%

 

3.6

%

 

 

1

 

 

 

n/a

 

Transportation

17,482

 

18,508

 

(5.5

)%

 

(2.3

)%

 

 

20

 

 

19

 

5.3

%

Other(f)

 

 

n/a

 

 

n/a

 

 

 

12

 

 

7

 

71.4

%

Total natural gas revenues(g)

55,599

 

63,006

 

(11.8

)%

 

(2.9

)%

 

 

491

 

 

486

 

1.0

%

Other Revenues(d)

 

 

 

 

 

 

 

 

 

2

 

 

1

 

100.0

%

Total Natural Gas Revenues

 

 

 

 

 

 

 

 

 

493

 

 

487

 

1.2

%

Total Electric and Natural Gas Revenues

 

 

 

 

 

$

2,977

 

$

2,877

 

3.5

%

Purchased Power and Fuel

 

 

 

 

 

 

 

 

$

1,197

 

$

1,093

 

9.5

%

 

 

 

 

 

 

 

% Change

Heating and Cooling Degree-Days

2023

 

2022

 

Normal

 

From 2022

 

From Normal

Heating Degree-Days

2,236

 

2,632

 

2,866

 

(15.0

)%

 

(22.0

)%

Cooling Degree-Days

1,297

 

1,725

 

1,408

 

(24.8

)%

 

(7.9

)%

Number of Electric Customers

2023

 

2022

 

Number of Natural Gas Customers

2023

 

2022

Residential

1,531,168

 

1,523,269

 

Residential

505,370

 

500,934

Small commercial & industrial

155,932

 

155,516

 

Small commercial & industrial

44,743

 

46,074

Large commercial & industrial

3,111

 

3,120

 

Large commercial & industrial

9

 

9

Public authorities & electric railroads

10,416

 

10,393

 

Transportation

629

 

656

Total

1,700,627

 

1,692,298

 

Total

550,751

 

547,673

__________

(a)

Reflects delivery volumes and revenues from customers purchasing electricity directly from PECO and customers purchasing electricity from a competitive electric generation supplier as all customers are assessed distribution charges. For customers purchasing electricity from PECO, 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 $2 million and $3 million for the three months ended September 30, 2023 and 2022, respectively, and $5 million and $5 million for the nine months ended September 30, 2023 and 2022, respectively.

(d)

Includes alternative revenue programs and late payment charges.

(e)

Reflects delivery volumes and revenues from customers purchasing natural gas directly from PECO and customers purchasing natural gas from a competitive natural gas supplier as all customers are assessed distribution charges. For customers purchasing natural gas from PECO, revenue also reflects the cost of natural gas.

(f)

Includes revenues primarily from off-system sales.

(g)

Includes operating revenues from affiliates totaling less than $1 million and less than $1 million for the three months ended September 30, 2023 and 2022, respectively, and $1 million and $1 million for the nine months ended September 30, 2023 and 2022, respectively.

 

BGE Statistics

Three Months Ended September 30, 2023 and 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Electric and Natural Gas Deliveries

 

Revenue (in millions)

 

2023

 

2022

 

% Change

 

Weather-

Normal %

Change

 

 

2023

 

 

 

2022

 

 

% Change

Electric (in GWhs)

 

 

 

 

 

 

 

 

 

 

 

 

 

Electric Deliveries and Revenues(a)

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential

3,601

 

3,664

 

(1.7

)%

 

(1.4

)%

 

$

512

 

 

$

406

 

 

26.1

%

Small commercial & industrial

722

 

754

 

(4.2

)%

 

(1.4

)%

 

 

86

 

 

 

88

 

 

(2.3

)%

Large commercial & industrial

3,664

 

3,703

 

(1.1

)%

 

(1.2

)%

 

 

144

 

 

 

158

 

 

(8.9

)%

Public authorities & electric railroads

50

 

46

 

8.7

%

 

3.9

%

 

 

7

 

 

 

7

 

 

%

Other(b)

 

 

n/a

 

 

n/a

 

 

 

104

 

 

 

101

 

 

3.0

%

Total electric revenues(c)

8,037

 

8,167

 

(1.6

)%

 

(1.3

)%

 

 

853

 

 

 

760

 

 

12.2

%

Other Revenues(d)

 

 

 

 

 

 

 

 

 

(17

)

 

 

(3

)

 

466.7

%

Total Electric Revenues

 

 

 

 

 

 

 

 

 

836

 

 

 

757

 

 

10.4

%

Natural Gas (in mmcfs)

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural Gas Deliveries and Revenues(e)

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential

2,258

 

2,321

 

(2.7

)%

 

(2.0

)%

 

 

57

 

 

 

70

 

 

(18.6

)%

Small commercial & industrial

782

 

844

 

(7.3

)%

 

(7.1

)%

 

 

10

 

 

 

13

 

 

(23.1

)%

Large commercial & industrial

7,512

 

7,943

 

(5.4

)%

 

(5.2

)%

 

 

25

 

 

 

28

 

 

(10.7

)%

Other(f)

7

 

82

 

(91.5

)%

 

n/a

 

 

 

4

 

 

 

2

 

 

100.0

%

Total natural gas revenues(g)

10,559

 

11,190

 

(5.6

)%

 

(4.7

)%

 

 

96

 

 

 

113

 

 

(15.0

)%

Other Revenues(d)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

n/a

 

Total Natural Gas Revenues

 

 

 

 

 

 

 

 

 

96

 

 

 

113

 

 

(15.0

)%

Total Electric and Natural Gas Revenues

 

 

 

 

 

$

932

 

 

$

870

 

 

7.1

%

Purchased Power and Fuel