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Exelon Reports Fourth Quarter and Full Year 2023 Results and Initiates 2024 Financial Outlook

Earnings Release Highlights

  • GAAP Net Income of $0.62 per share and Adjusted (non-GAAP) Operating Earnings of $0.60 per share for the fourth quarter of 2023
  • Introducing 2024 Adjusted (non-GAAP) Operating Earnings guidance range of $2.40-$2.50 per share
  • Declaring quarterly dividend of $0.38 per share for the first quarter of 2024, representing 5.6% growth over 2023 fourth quarter dividend of $0.36 per share
  • Projecting to invest $35 billion of capital expenditures over the next four years to meet customer needs, resulting in expected rate base growth of 7.5% and operating EPS compounded annual growth of 5-7% from 2023 to 2027
  • Updating 4-year financing plan to include $1.3 billion of additional equity to fund approximately 40% of $3.2 billion of incremental capital expenditures in line with a balanced funding strategy
  • ComEd and PHI ended the year with best-on-record performances in both outage frequency and duration, and all gas utilities sustained top decile performance in gas odor response for the fourth straight quarter
  • A settlement was approved in November by the New Jersey Board of Public Utilities (NJBPU) in Atlantic City Electric’s base rate case
  • Orders in ComEd’s Multi-Year Rate Plan (“MRP”) and Multi-Year Grid Plan as well as BGE’s multi-year plan were received in December

Exelon Corporation (Nasdaq: EXC) today reported its financial results for the fourth quarter and full year 2023.

“Exelon had another strong year in 2023, both financially and operationally,” said President and CEO Calvin Butler. “We delivered in the top half of our guidance range, achieved best-on-record operational performance at multiple utilities, and advocated for a more affordable and equitable energy transformation for our customers. We successfully competed for nearly $200 million in project grants benefiting our customers, supported by the Infrastructure and Investment Jobs Act. In 2024, we will continue to innovate and partner with regulators and stakeholders across Exelon’s jurisdictions to support our shared energy and environmental goals, while demonstrating the power of impact for our customers and communities.”

“We delivered strong financial results for the second year in a row, despite the historically mild weather impacting our non-decoupled jurisdictions,” said Exelon Chief Financial Officer Jeanne Jones. “For the full year 2023, we earned $2.34 per share on a GAAP basis and $2.38 per share on a non-GAAP basis, results that are at the top end of our narrowed guidance range. Over the next four years, Exelon will invest $35 billion to serve our customers, resulting in 7.5% rate base growth and an expected annualized earnings growth rate of 5% to 7% through 2027, off the midpoint of our 2023 guidance, with an expectation of being at midpoint or better in that range. We expect adjusted (non-GAAP) earnings for 2024 of $2.40 to $2.50 per share, driven by continued investment in our jurisdictions’ energy transformations and doing so as affordably and efficiently as possible.”

Fourth Quarter 2023

Exelon's GAAP Net Income from Continuing Operations for the fourth quarter of 2023 increased to $0.62 per share from $0.43 per share in the fourth quarter of 2022. Adjusted (non-GAAP) Operating Earnings for the fourth quarter of 2023 increased to $0.60 per share from $0.43 per share in the fourth 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 4.

GAAP Net Income from Continuing Operations and Adjusted (non-GAAP) Operating Earnings in the fourth quarter of 2023 primarily reflect:

  • Higher utility earnings primarily due to favorable impacts of the multi-year plans including the recognition of the reconciliation in 2023 at BGE. In addition, there were higher electric distribution earnings from higher allowed electric distribution ROE due to an increase in treasury rates at ComEd and favorable impacts of rate increases at PECO and PHI. This was partially offset by higher contracting costs and interest expense at PHI.
  • Higher costs at the Exelon holding company primarily due to higher interest expense and realized losses on hedging activity.

Full Year 2023

Exelon's GAAP Net Income from Continuing Operations for 2023 increased to $2.34 per share from $2.08 per share in 2022. Adjusted (non-GAAP) Operating Earnings for 2023 increased to $2.38 per share from $2.27 per share in 2022.

GAAP Net Income from Continuing Operations and Adjusted (non-GAAP) Operating Earnings for the full year 2023 primarily reflect:

  • Higher utility earnings primarily due to higher electric distribution and transmission earnings from higher allowed ROE due to an increase in treasury rates and higher rate base at ComEd and favorable impacts of rate increases at PECO, BGE, and PHI. In addition, at BGE, there were favorable impacts of the multi-year plans including the recognition of the reconciliation in 2023 and favorable carrying costs related to the carbon mitigation credit (CMC) regulatory asset at ComEd. This was partially offset by unfavorable weather at PECO and PHI, higher depreciation expense and interest expense at PECO, BGE and PHI, higher contracting costs at PHI, and higher storm costs at PECO and BGE.
  • Higher costs at the Exelon holding company primarily due to higher interest expense and realized losses on hedging activity. This was partially offset by 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 2022 as these costs do not qualify as expenses of the discontinued operations per the accounting rules.

Operating Company Results1

ComEd

ComEd's fourth quarter of 2023 GAAP Net Income increased to $268 million from $211 million in the fourth quarter of 2022. ComEd's Adjusted (non-GAAP) Operating Earnings for the fourth quarter of 2023 increased to $269 million from $211 million in the fourth quarter of 2022, primarily due to increases in electric distribution formula rate earnings (reflecting higher allowed electric distribution ROE due to an increase in treasury rates). Due to revenue decoupling, ComEd's distribution earnings are not affected by actual weather or customer usage patterns.

PECO

PECO’s fourth quarter of 2023 GAAP Net Income increased to $153 million from $102 million in the fourth quarter of 2022. PECO's Adjusted (non-GAAP) Operating Earnings for the fourth quarter of 2023 increased to $154 million from $102 million in the fourth quarter of 2022, primarily due to distribution rate increases and favorable impacts from lower storm costs.

BGE

BGE’s fourth quarter of 2023 GAAP Net Income increased to $199 million from $113 million in the fourth quarter of 2022. BGE's Adjusted (non-GAAP) Operating Earnings for the fourth quarter of 2023 increased to $199 million from $114 million in the fourth quarter of 2022, primarily due to favorable impacts of the multi-year plans including the recognition of the reconciliation in 2023. Due to revenue decoupling, BGE's distribution earnings are not affected by actual weather or customer usage patterns.

PHI

PHI’s fourth quarter of 2023 GAAP Net Income increased to $101 million from $90 million in the fourth quarter of 2022. PHI’s Adjusted (non-GAAP) Operating Earnings for the fourth quarter of 2023 increased to $102 million from $90 million in the fourth quarter of 2022, primarily due to distribution and transmission rate increases and timing of excess deferred tax amortization, partially offset by increases in contracting costs and interest expense. 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.

Initiates Annual Guidance for 2024

Exelon introduced a guidance range for 2024 Adjusted (non-GAAP) Operating Earnings of $2.40-$2.50 per share. There are no adjustments between 2024 projected GAAP Earnings and Adjusted (non-GAAP) Operating Earnings currently.

___________

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.

Recent Developments and Fourth Quarter Highlights

  • Dividend: On February 21, 2024, Exelon’s Board of Directors declared a regular quarterly dividend of $0.38 per share on Exelon’s common stock for the first quarter of 2024. The dividend is payable on Friday, March 15, 2024, to shareholders of record of Exelon as of 5 p.m. Eastern time on Monday, March 4, 2024.
  • Rate Case Developments:
    • ComEd Multi-Year Rate Plan: On December 14, 2023, the Illinois Commerce Commission (ICC) issued a final order on ComEd's MRP for 2024-2027. The ICC approved total requested revenue requirement increases of $451 million effective January 1, 2024, $14 million effective January 1, 2025, $6 million effective January 1, 2026, and $30 million effective January 1, 2027, based on an ROE of 8.905%, and an equity ratio of 50%.
    • BGE Electric and Gas Multi-Year Plan: On December 14, 2023, the Maryland Public Service Commission (MDPSC) issued an order on BGE's multi-year plans. The MDPSC order provides for an electric rate increase of approximately $41 million, $113 million, and $25 million in 2024, 2025, and 2026, respectively, based on an ROE of 9.50%. Additionally, the MDPSC order provides for a natural gas rate increase of approximately $126 million, $62 million, and $41 million in 2024, 2025, and 2026, respectively, based on an ROE of 9.45%.
    • ACE Electric Base Rate Case: On November 17, 2023, the NJBPU approved an increase in ACE's annual electric distribution base rates of $45 million (before New Jersey sales and use tax), reflecting an ROE of 9.60%. The order approved incremental increases in ACE's electric distribution base rates of $36 million and $9 million effective December 1, 2023 and February 1, 2024, respectively.
  • Financing Activities: On November 8, 2023, DPL issued $340 million, $75 million, and $110 million of First Mortgage Bonds, 5.45%, 5.55%, and 5.72% Series, due November 8, 2033, November 8, 2038, and November 8, 2053, respectively. DPL 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 fourth 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

 

0.62

 

$

617

 

$

268

$

153

$

199

$

101

Mark-to-Market Impact of Economic Hedging Activities (net of taxes of $6)

 

(0.02

)

 

(17

)

 

 

 

 

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

 

 

 

3

 

 

1

 

1

 

1

 

1

2023 Adjusted (non-GAAP) Operating Earnings

 

0.60

 

$

603

 

$

269

$

154

$

199

$

102

 

 

 

 

 

 

 

Adjusted (non-GAAP) Operating Earnings for the fourth 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

$

0.43

 

$

432

 

$

211

$

102

$

113

$

90

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

 

 

 

4

 

 

 

 

 

Asset Impairments (net of taxes of $0)

 

 

 

1

 

 

 

 

1

 

Separation Costs (net of taxes of $0)

 

 

 

(1

)

 

 

 

 

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

 

(0.01

)

 

(8

)

 

 

 

 

2022 Adjusted (non-GAAP) Operating Earnings

$

0.43

 

$

428

 

$

211

$

102

$

114

$

90

 

 

 

 

 

 

 

Adjusted (non-GAAP) Operating Earnings for the full year 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

$

2.34

 

$

2,328

 

$

1,090

$

563

$

485

$

590

 

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

 

 

 

(4

)

 

 

 

 

 

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

 

0.03

 

 

29

 

 

 

 

 

29

 

Asset Retirement Obligations (net of taxes of $1)

 

 

 

(1

)

 

 

 

 

(1

)

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

 

0.05

 

 

46

 

 

 

 

 

 

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

 

0.02

 

 

22

 

 

8

 

4

 

4

 

6

 

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

 

0.01

 

 

11

 

 

11

 

 

 

 

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

 

(0.05

)

 

(54

)

 

 

 

 

 

2023 Adjusted (non-GAAP) Operating Earnings

$

2.38

 

$

2,377

 

$

1,108

$

566

$

489

$

624

 

 

 

 

 

 

 

 

Adjusted (non-GAAP) Operating Earnings for the full year 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

$

2.08

$

2,054

 

$

917

$

576

$

380

$

608

 

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

 

 

4

 

 

 

 

 

 

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

 

 

1

 

 

 

 

 

 

Asset Retirement Obligations (net of taxes of $2)

 

 

(4

)

 

 

 

 

(4

)

Asset Impairments (net of taxes of $10)

 

0.04

 

38

 

 

 

 

38

 

 

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

 

0.02

 

24

 

 

9

 

4

 

4

 

7

 

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

 

0.12

 

122

 

 

 

38

 

 

3

 

2022 Adjusted (non-GAAP) Operating Earnings

$

2.27

$

2,239

 

$

926

$

619

$

423

$

614

 

 

 

 

 

 

 

 

__________

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 fourth 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 www.exeloncorp.com/investor-relations.

About Exelon

Exelon (Nasdaq: EXC) is a Fortune 250 company and the nation’s largest utility company, serving more than 10.5 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 19,500 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 | X.

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: https://investors.exeloncorp.com, and have been furnished to the Securities and Exchange Commission on Form 8-K on Feb. 21, 2024.

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 filed with the SEC 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 (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

13

Pepco

15

DPL

16

ACE

18

Consolidating Statements of Operations

(unaudited)

(in millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

ComEd

 

PECO

 

BGE

 

PHI

 

Other (a)

 

Exelon

Three Months Ended December 31, 2023

 

 

 

 

 

 

 

 

 

 

 

Operating revenues

$

2,008

 

 

$

917

 

 

$

1,041

 

 

$

1,411

 

 

$

(9

)

 

$

5,368

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

Purchased power and fuel

 

748

 

 

 

347

 

 

 

387

 

 

 

544

 

 

 

 

 

 

2,026

 

Operating and maintenance

 

373

 

 

 

217

 

 

 

109

 

 

 

336

 

 

 

(11

)

 

 

1,024

 

Depreciation and amortization

 

358

 

 

 

100

 

 

 

167

 

 

 

249

 

 

 

16

 

 

 

890

 

Taxes other than income taxes

 

87

 

 

 

46

 

 

 

80

 

 

 

121

 

 

 

11

 

 

 

345

 

Total operating expenses

 

1,566

 

 

 

710

 

 

 

743

 

 

 

1,250

 

 

 

16

 

 

 

4,285

 

Gain on sales of assets and businesses

 

 

 

 

 

 

 

 

 

 

9

 

 

 

 

 

 

9

 

Operating income (loss)

 

442

 

 

 

207

 

 

 

298

 

 

 

170

 

 

 

(25

)

 

 

1,092

 

Other income and (deductions)

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

(120

)

 

 

(53

)

 

 

(47

)

 

 

(84

)

 

 

(148

)

 

 

(452

)

Other, net

 

24

 

 

 

10

 

 

 

5

 

 

 

28

 

 

 

10

 

 

 

77

 

Total other income and (deductions)

 

(96

)

 

 

(43

)

 

 

(42

)

 

 

(56

)

 

 

(138

)

 

 

(375

)

Income (loss) before income taxes

 

346

 

 

 

164

 

 

 

256

 

 

 

114

 

 

 

(163

)

 

 

717

 

Income taxes

 

78

 

 

 

11

 

 

 

57

 

 

 

13

 

 

 

(59

)

 

 

100

 

Net income (loss)

 

268

 

 

 

153

 

 

 

199

 

 

 

101

 

 

 

(104

)

 

 

617

 

Net income (loss) attributable to common shareholders

$

268

 

 

$

153

 

 

$

199

 

 

$

101

 

 

$

(104

)

 

$

617

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended December 31, 2022

 

 

 

 

 

 

 

 

 

 

 

Operating revenues

$

1,225

 

 

$

1,026

 

 

$

1,086

 

 

$

1,342

 

 

$

(12

)

 

$

4,667

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

Purchased power and fuel

 

68

 

 

 

442

 

 

 

474

 

 

 

554

 

 

 

 

 

 

1,538

 

Operating and maintenance

 

368

 

 

 

288

 

 

 

220

 

 

 

292

 

 

 

69

 

 

 

1,237

 

Depreciation and amortization

 

341

 

 

 

95

 

 

 

161

 

 

 

240

 

 

 

15

 

 

 

852

 

Taxes other than income taxes

 

84

 

 

 

47

 

 

 

77

 

 

 

114

 

 

 

8

 

 

 

330

 

Total operating expenses

 

861

 

 

 

872

 

 

 

932

 

 

 

1,200

 

 

 

92

 

 

 

3,957

 

Operating income (loss)

 

364

 

 

 

154

 

 

 

154

 

 

 

142

 

 

 

(104

)

 

 

710

 

Other income and (deductions)

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

(106

)

 

 

(48

)

 

 

(41

)

 

 

(75

)

 

 

(115

)

 

 

(385

)

Other, net

 

14

 

 

 

8

 

 

 

5

 

 

 

22

 

 

 

52

 

 

 

101

 

Total other income and (deductions)

 

(92

)

 

 

(40

)

 

 

(36

)

 

 

(53

)

 

 

(63

)

 

 

(284

)

Income (loss) before income taxes

 

272

 

 

 

114

 

 

 

118

 

 

 

89

 

 

 

(167

)

 

 

426

 

Income taxes

 

61

 

 

 

12

 

 

 

5

 

 

 

(1

)

 

 

(83

)

 

 

(6

)

Net income (loss)

 

211

 

 

 

102

 

 

 

113

 

 

 

90

 

 

 

(84

)

 

 

432

 

Net income (loss) attributable to common shareholders

$

211

 

 

$

102

 

 

$

113

 

 

$

90

 

 

$

(84

)

 

$

432

 

 

 

 

 

 

 

 

 

 

 

 

 

Change in net income (loss) from 2022 to 2023

$

57

 

 

$

51

 

 

$

86

 

 

$

11

 

 

$

(20

)

 

$

185

 

Consolidating Statements of Operations

(unaudited)

(in millions)

 

 

ComEd

 

PECO

 

BGE

 

PHI

 

Other (a)

 

Exelon

Twelve Months Ended December 31, 2023

 

 

 

 

 

 

 

 

 

 

 

Operating revenues

$

7,844

 

 

$

3,894

 

 

$

4,027

 

 

$

6,026

 

 

$

(64

)

 

$

21,727

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

Purchased power and fuel

 

2,816

 

 

 

1,544

 

 

 

1,531

 

 

 

2,348

 

 

 

2

 

 

 

8,241

 

Operating and maintenance

 

1,450

 

 

 

1,003

 

 

 

741

 

 

 

1,289

 

 

 

76

 

 

 

4,559

 

Depreciation and amortization

 

1,403

 

 

 

397

 

 

 

654

 

 

 

990

 

 

 

62

 

 

 

3,506

 

Taxes other than income taxes

 

369

 

 

 

202

 

 

 

319

 

 

 

487

 

 

 

31

 

 

 

1,408

 

Total operating expenses

 

6,038

 

 

 

3,146

 

 

 

3,245

 

 

 

5,114

 

 

 

171

 

 

 

17,714

 

Gain on sales of assets and businesses

 

 

 

 

 

 

 

 

 

 

9

 

 

 

1

 

 

 

10

 

Operating income (loss)

 

1,806

 

 

 

748

 

 

 

782

 

 

 

921

 

 

 

(234

)

 

 

4,023

 

Other income and (deductions)

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

(477

)

 

 

(201

)

 

 

(182

)

 

 

(323

)

 

 

(546

)

 

 

(1,729

)

Other, net

 

75

 

 

 

36

 

 

 

18

 

 

 

108

 

 

 

171

 

 

 

408

 

Total other income and (deductions)

 

(402

)

 

 

(165

)

 

 

(164

)

 

 

(215

)

 

 

(375

)

 

 

(1,321

)

Income (loss) from continuing operations before income taxes

 

1,404

 

 

 

583

 

 

 

618

 

 

 

706

 

 

 

(609

)

 

 

2,702

 

Income taxes

 

314

 

 

 

20

 

 

 

133

 

 

 

116

 

 

 

(209

)

 

 

374

 

Net income (loss) from continuing operations after income taxes

 

1,090

 

 

 

563

 

 

 

485

 

 

 

590

 

 

 

(400

)

 

 

2,328

 

Net income from discontinued operations after income taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

1,090

 

 

 

563

 

 

 

485

 

 

 

590

 

 

 

(400

)

 

 

2,328

 

Net income (loss) attributable to common shareholders

$

1,090

 

 

$

563

 

 

$

485

 

 

$

590

 

 

$

(400

)

 

$

2,328

 

 

 

 

 

 

 

 

 

 

 

 

 

Twelve Months Ended December 31, 2022

 

 

 

 

 

 

 

 

 

 

 

Operating revenues

$

5,761

 

 

$

3,903

 

 

$

3,895

 

 

$

5,565

 

 

$

(46

)

 

$

19,078

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

Purchased power and fuel

 

1,109

 

 

 

1,535

 

 

 

1,567

 

 

 

2,164

 

 

 

(2

)

 

 

6,373

 

Operating and maintenance

 

1,412

 

 

 

992

 

 

 

877

 

 

 

1,157

 

 

 

235

 

 

 

4,673

 

Depreciation and amortization

 

1,323

 

 

 

373

 

 

 

630

 

 

 

938

 

 

 

61

 

 

 

3,325

 

Taxes other than income taxes

 

374

 

 

 

202

 

 

 

302

 

 

 

475

 

 

 

37

 

 

 

1,390

 

Total operating expenses

 

4,218

 

 

 

3,102

 

 

 

3,376

 

 

 

4,734

 

 

 

331

 

 

 

15,761

 

Loss on sales of assets and businesses

 

(2

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2

)

Operating income (loss)

 

1,541

 

 

 

801

 

 

 

519

 

 

 

831

 

 

 

(377

)

 

 

3,315

 

Other income and (deductions)

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

(414

)

 

 

(177

)

 

 

(152

)

 

 

(292

)

 

 

(412

)

 

 

(1,447

)

Other, net

 

54

 

 

 

31

 

 

 

21

 

 

 

78

 

 

 

351

 

 

 

535

 

Total other income and (deductions)

 

(360

)

 

 

(146

)

 

 

(131

)

 

 

(214

)

 

 

(61

)

 

 

(912

)

Income (loss) from continuing operations before income taxes

 

1,181

 

 

 

655

 

 

 

388

 

 

 

617

 

 

 

(438

)

 

 

2,403

 

Income taxes

 

264

 

 

 

79

 

 

 

8

 

 

 

9

 

 

 

(11

)

 

 

349

 

Net income (loss) from continuing operations after income taxes

 

917

 

 

 

576

 

 

 

380

 

 

 

608

 

 

 

(427

)

 

 

2,054

 

Net income from discontinued operations after income taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

117

 

 

 

117

 

Net income (loss)

 

917

 

 

 

576

 

 

 

380

 

 

 

608

 

 

 

(310

)

 

 

2,171

 

Net income attributable to noncontrolling interests

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

 

 

1

 

Net income (loss) attributable to common shareholders

$

917

 

 

$

576

 

 

$

380

 

 

$

608

 

 

$

(311

)

 

$

2,170

 

 

 

 

 

 

 

 

 

 

 

 

 

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

$

173

 

 

$

(13

)

 

$

105

 

 

$

(18

)

 

$

27

 

 

$

274

 

__________

(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)

 

 

 

December 31, 2023

 

December 31, 2022

Assets

 

 

 

 

Current assets

 

 

 

 

Cash and cash equivalents

 

$

445

 

 

$

407

 

Restricted cash and cash equivalents

 

 

482

 

 

 

566

 

Accounts receivable

 

 

 

 

Customer accounts receivable

 

 

2,659

 

 

 

2,544

 

Customer allowance for credit losses

 

 

(317

)

 

 

(327

)

Customer accounts receivable, net

 

 

2,342

 

 

 

2,217

 

Other accounts receivable

 

 

1,101

 

 

 

1,426

 

Other allowance for credit losses

 

 

(82

)

 

 

(82

)

Other accounts receivable, net

 

 

1,019

 

 

 

1,344

 

Inventories, net

 

 

 

 

Fossil fuel

 

 

94

 

 

 

208

 

Materials and supplies

 

 

707

 

 

 

547

 

Regulatory assets

 

 

2,215

 

 

 

1,641

 

Other

 

 

473

 

 

 

406

 

Total current assets

 

 

7,777

 

 

 

7,336

 

Property, plant, and equipment, net

 

 

73,593

 

 

 

69,076

 

Deferred debits and other assets

 

 

 

 

Regulatory assets

 

 

8,698

 

 

 

8,037

 

Goodwill

 

 

6,630

 

 

 

6,630

 

Receivable related to Regulatory Agreement Units

 

 

3,232

 

 

 

2,897

 

Investments

 

 

251

 

 

 

232

 

Other

 

 

1,365

 

 

 

1,141

 

Total deferred debits and other assets

 

 

20,176

 

 

 

18,937

 

Total assets

 

$

101,546

 

 

$

95,349

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Shareholders' Equity

 

 

 

 

Current liabilities

 

 

 

 

Short-term borrowings

 

$

2,523

 

 

$

2,586

 

Long-term debt due within one year

 

 

1,403

 

 

 

1,802

 

Accounts payable

 

 

2,846

 

 

 

3,382

 

Accrued expenses

 

 

1,375

 

 

 

1,226

 

Payables to affiliates

 

 

5

 

 

 

5

 

Regulatory liabilities

 

 

389

 

 

 

437

 

Mark-to-market derivative liabilities

 

 

74

 

 

 

8

 

Unamortized energy contract liabilities

 

 

8

 

 

 

10

 

Other

 

 

968

 

 

 

1,155

 

Total current liabilities

 

 

9,591

 

 

 

10,611

 

Long-term debt

 

 

39,692

 

 

 

35,272

 

Long-term debt to financing trusts

 

 

390

 

 

 

390

 

Deferred credits and other liabilities

 

 

 

 

Deferred income taxes and unamortized investment tax credits

 

 

11,956

 

 

 

11,250

 

Regulatory liabilities

 

 

9,576

 

 

 

9,112

 

Pension obligations

 

 

1,571

 

 

 

1,109

 

Non-pension postretirement benefit obligations

 

 

527

 

 

 

507

 

Asset retirement obligations

 

 

267

 

 

 

269

 

Mark-to-market derivative liabilities

 

 

106

 

 

 

83

 

Unamortized energy contract liabilities

 

 

27

 

 

 

35

 

Other

 

 

2,088

 

 

 

1,967

 

Total deferred credits and other liabilities

 

 

26,118

 

 

 

24,332

 

Total liabilities

 

 

75,791

 

 

 

70,605

 

Commitments and contingencies

 

 

 

 

Shareholders’ equity

 

 

 

 

Common stock

 

 

21,114

 

 

 

20,908

 

Treasury stock, at cost

 

 

(123

)

 

 

(123

)

Retained earnings

 

 

5,490

 

 

 

4,597

 

Accumulated other comprehensive loss, net

 

 

(726

)

 

 

(638

)

Total shareholders’ equity

 

 

25,755

 

 

 

24,744

 

Total liabilities and shareholders' equity

 

$

101,546

 

 

$

95,349

 

Exelon

Consolidated Statements of Cash Flows

(unaudited)

(in millions)

 

 

 

Twelve Months Ended December 31,

 

 

 

2023

 

 

 

2022

 

Cash flows from operating activities

 

 

 

 

Net income

 

$

2,328

 

 

$

2,171

 

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

 

 

 

 

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

 

 

3,506

 

 

 

3,533

 

Asset impairments

 

 

 

 

 

48

 

Gain on sales of assets and businesses

 

 

(10

)

 

 

(8

)

Deferred income taxes and amortization of investment tax credits

 

 

319

 

 

 

255

 

Net fair value changes related to derivatives

 

 

22

 

 

 

(53

)

Net realized and unrealized losses on NDT funds

 

 

 

 

 

205

 

Net unrealized losses on equity investments

 

 

 

 

 

16

 

Other non-cash operating activities

 

 

(335

)

 

 

370

 

Changes in assets and liabilities:

 

 

 

 

Accounts receivable

 

 

(37

)

 

 

(1,222

)

Inventories

 

 

(45

)

 

 

(121

)

Accounts payable and accrued expenses

 

 

(191

)

 

 

1,318

 

Option premiums paid, net

 

 

 

 

 

(39

)

Collateral (paid) received, net

 

 

(146

)

 

 

1,248

 

Income taxes

 

 

48

 

 

 

(4

)

Regulatory assets and liabilities, net

 

 

(439

)

 

 

(1,326

)

Pension and non-pension postretirement benefit contributions

 

 

(129

)

 

 

(616

)

Other assets and liabilities

 

 

(188

)

 

 

(905

)

Net cash flows provided by operating activities

 

 

4,703

 

 

 

4,870

 

Cash flows from investing activities

 

 

 

 

Capital expenditures

 

 

(7,408

)

 

 

(7,147

)

Proceeds from NDT fund sales

 

 

 

 

 

488

 

Investment in NDT funds

 

 

 

 

 

(516

)

Collection of DPP

 

 

 

 

 

169

 

Proceeds from sales of assets and businesses

 

 

25

 

 

 

16

 

Other investing activities

 

 

8

 

 

 

 

Net cash flows used in investing activities

 

 

(7,375

)

 

 

(6,990

)

Cash flows from financing activities

 

 

 

 

Changes in short-term borrowings

 

 

(313

)

 

 

986

 

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

 

 

400

 

 

 

1,300

 

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

 

 

(150

)

 

 

(1,500

)

Issuance of long-term debt

 

 

5,825

 

 

 

6,309

 

Retirement of long-term debt

 

 

(1,713

)

 

 

(2,073

)

Issuance of common stock

 

 

140

 

 

 

563

 

Dividends paid on common stock

 

 

(1,433

)

 

 

(1,334

)

Proceeds from employee stock plans

 

 

41

 

 

 

36

 

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

 

 

 

 

 

(2,594

)

Other financing activities

 

 

(114

)

 

 

(102

)

Net cash flows provided by financing activities

 

 

2,683

 

 

 

1,591

 

Increase (decrease) in cash, restricted cash, and cash equivalents

 

 

11

 

 

 

(529

)

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

 

 

1,090

 

 

 

1,619

 

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

 

$

1,101

 

 

$

1,090

 

Exelon

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

Three Months Ended December 31, 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

$

0.43

 

 

$

211

 

 

$

102

 

 

$

113

 

 

$

90

 

 

$

(84

)

 

$

432

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4

 

 

 

4

 

Asset Impairments (net of taxes of $0) (1)

 

 

 

 

 

 

 

 

 

 

1

 

 

 

 

 

 

 

 

 

1

 

Separation Costs (net of taxes of $0) (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1

)

 

 

(1

)

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

 

(0.01

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(8

)

 

 

(8

)

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

$

0.43

 

 

$

211

 

 

$

102

 

 

$

114

 

 

$

90

 

 

$

(89

)

 

$

428

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

Weather

$

(0.01

)

 

$

 

(b)

$

(13

)

 

$

 

(b)

$

 

(b)

$

 

 

$

(13

)

Load

 

(0.01

)

 

 

 

(b)

 

(2

)

 

 

 

(b)

 

(4

)

(b)

 

 

 

 

(6

)

Distribution and Transmission Rates (4)

 

0.06

 

 

 

19

 

(c)

 

21

 

(c)

 

10

 

(c)

 

21

 

(c)

 

(16

)

 

 

55

 

Other Energy Delivery (5)

 

0.06

 

 

 

54

 

(c)

 

(17

)

(c)

 

(7

)

(c)

 

32

 

(c)

 

 

 

 

62

 

Operating and Maintenance Expense (6)

 

0.14

 

 

 

(4

)

 

 

54

 

 

 

81

 

 

 

(27

)

 

 

50

 

 

 

154

 

Pension and Non-Pension Postretirement Benefits

 

 

 

 

2

 

 

 

 

 

 

(1

)

 

 

(4

)

 

 

 

 

 

(3

)

Depreciation and Amortization Expense (7)

 

(0.02

)

 

 

(12

)

 

 

(4

)

 

 

(4

)

 

 

(4

)

 

 

 

 

 

(24

)

Interest Expense and Other (8)

 

(0.05

)

 

 

(1

)

 

 

13

 

 

 

6

 

 

 

(2

)

 

 

(66

)

 

 

(50

)

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

$

0.17

 

 

$

58

 

 

$

52

 

 

$

85

 

 

$

12

 

 

$

(32

)

 

$

175

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2023 GAAP Net Income (Loss) from Continuing Operations

$

0.62

 

 

$

268

 

 

$

153

 

 

$

199

 

 

$

101

 

 

$

(104

)

 

$

617

 

Mark-to-Market Impact of Economic Hedging Activities (net of taxes of $6)

 

(0.02

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(17

)

 

 

(17

)

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

 

 

 

 

1

 

 

 

1

 

 

 

1

 

 

 

1

 

 

 

(1

)

 

 

3

 

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

$

0.60

 

 

$

269

 

 

$

154

 

 

$

199

 

 

$

102

 

 

$

(121

)

 

$

603

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.

(3)

In 2022, in connection with the separation, Exelon recorded an income tax benefit related to deductible transaction costs.

(4)

For ComEd, reflects an increase in distribution revenues due to higher allowed electric distribution ROE driven by an increase in treasury rates. For PECO, reflects an increase in revenue primarily due to higher gas distribution rates charged to customers, coupled with higher overall effective rates for both electric and gas attributable to decreased usage. For BGE, reflects an increase in revenue due to distribution rate increases. For PHI, reflects an increase in revenue primarily due to distribution and transmission rate increases. For Corporate, reflects an increase in realized losses from hedging activity.

(5)

For ComEd, primarily reflect an increase in electric distribution, transmission, and energy efficiency revenues due to higher fully recoverable costs. For PECO, reflects a decrease in 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 fully offset in Interest expense and Other. For PHI, also reflects higher transmission revenues due to increased Income taxes, Depreciation and amortization, and Operating and maintenance expense, which are fully offset in a combination of Operating and maintenance expense, Depreciation and amortization expense, and Interest expense and Other.

(6)

Represents Operating and maintenance expense, excluding pension and non-pension postretirement benefits. For PECO, primarily reflects a decrease in other operating expenses, a decrease in program costs related to regulatory required programs, and a decrease in storm costs. For BGE, primarily reflects a decrease in other operating expense due to favorable impacts from the multi-year plan reconciliations. For PHI, primarily reflects an increase in contracting costs primarily due to the ACE employee strike. 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 and higher depreciation rates effective January 2023 for ComEd.

(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.

Exelon

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

Twelve Months Ended December 31, 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

$

2.08

 

 

$

917

 

 

$

576

 

 

$

380

 

 

$

608

 

 

$

(427

)

 

$

2,054

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4

 

 

 

4

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

 

 

1

 

Asset Retirement Obligations (net of taxes of $2)

 

 

 

 

 

 

 

 

 

 

 

 

 

(4

)

 

 

 

 

 

(4

)

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

 

0.04

 

 

 

 

 

 

 

 

 

38

 

 

 

 

 

 

 

 

 

38

 

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

 

0.02

 

 

 

9

 

 

 

4

 

 

 

4

 

 

 

7

 

 

 

 

 

 

24

 

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

 

0.12

 

 

 

 

 

 

38

 

 

 

 

 

 

3

 

 

 

81

 

 

 

122

 

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

$

2.27

 

 

$

926

 

 

$

619

 

 

$

423

 

 

$

614

 

 

$

(343

)

 

$

2,239

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

Weather

$

(0.12

)

 

$

 

(b)

$

(105

)

 

$

 

(b)

$

(12

)

(b)

$

 

 

$

(117

)

Load

 

(0.01

)

 

 

 

(b)

 

2

 

 

 

 

(b)

 

(8

)

(b)

 

 

 

 

(6

)

Distribution and Transmission Rates (5)

 

0.28

 

 

 

117

 

(c)

 

62

 

(c)

 

42

 

(c)

 

80

 

(c)

 

(16

)

 

 

285

 

Other Energy Delivery (6)

 

0.29

 

 

 

162

 

(c)

 

28

 

(c)

 

(10

)

(c)

 

109

 

(c)

 

 

 

 

289

 

Operating and Maintenance Expense (7)

 

0.07

 

 

 

(37

)

 

 

(10

)

 

 

67

 

 

 

(51

)

 

 

104

 

 

 

73

 

Pension and Non-Pension Postretirement Benefits

 

(0.02

)

 

 

9

 

 

 

2

 

 

 

(4

)

 

 

(16

)

 

 

(13

)

 

 

(22

)

Depreciation and Amortization Expense (8)

 

(0.12

)

 

 

(57

)

 

 

(18

)

 

 

(13

)

 

 

(28

)

 

 

(3

)

 

 

(119

)

Interest Expense and Other (9)

 

(0.25

)

 

 

(12

)

 

 

(14

)

 

 

(16

)

 

 

(64

)

 

 

(139

)

 

 

(245

)

Share Differential (10)

 

(0.02

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

$

0.11

 

 

$

182

 

 

$

(53

)

 

$

66

 

 

$

10

 

 

$

(67

)

 

$

138

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2023 GAAP Net Income (Loss) from Continuing Operations

$

2.34

 

 

$

1,090

 

 

$

563

 

 

$

485

 

 

$

590

 

 

$

(400

)

 

$

2,328

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(4

)

 

 

(4

)

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

 

0.03

 

 

 

 

 

 

 

 

 

 

 

 

29

 

 

 

 

 

 

29

 

Asset Retirement Obligations (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, and $7, respectively) (3)

 

0.02

 

 

 

8

 

 

 

4

 

 

 

4

 

 

 

6

 

 

 

 

 

 

22

 

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)

$

2.38

 

 

$

1,108

 

 

$

566

 

 

$

489

 

 

$

624

 

 

$

(410

)

 

$

2,377

 

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 Program (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, primarily 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 due to changes in forecasted apportionment.

(5)

For ComEd, reflects an increase in distribution revenues due to higher allowed electric distribution ROE driven by an increase in treasury rates and higher rate base. For PECO, reflects an increase in revenue primarily due to higher gas distribution rates charged to customers, coupled with higher overall effective rates for both electric and gas attributable to decreased usage. For BGE, reflects an increase in revenue due to distribution and transmission rate increases. For PHI, reflects an increase in revenue primarily due to distribution and transmission rate increases. For Corporate, reflects an increase in realized losses from hedging activity.

(6)

For ComEd, reflects an increase in 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 an increase in transmission and energy efficiency revenues due to regulatory required programs. For PHI, primarily reflects higher revenues due to certain EDIT benefits being fully amortized and passed through to customers, which is fully 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. For PHI, also reflects higher transmission revenues due to increased Income taxes, Depreciation and amortization, and Operating and maintenance expense, which are fully offset in a combination of Operating and maintenance expense, Depreciation and amortization expense, and Interest expense and Other.

(7)

Represents Operating and maintenance expense, excluding pension and non-pension postretirement benefits. For ComEd, reflects an increase in credit loss expense. For PECO, primarily reflects an increase in storm costs, an increase in program costs related to regulatory required programs, partially offset by a decrease in other operating expenses. For BGE, primarily reflects a decrease due to favorable impacts resulting from the multi-year plan reconciliations, partially offset by an increase in storm costs. For PHI, reflects an increase in contracting costs primarily due to the ACE employee strike. 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 (2023 includes no costs compared to one month of costs for the period prior to the separation for 2022), and 3) an increase in costs for 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 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, 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 December 31, 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

5,806

 

5,984

 

(3.0

)%

 

(1.4

)%

 

$

821

 

$

695

 

 

18.1

%

Small commercial & industrial

6,852

 

7,061

 

(3.0

)%

 

(1.1

)%

 

 

494

 

 

220

 

 

124.5

%

Large commercial & industrial

6,607

 

6,543

 

1.0

%

 

1.2

%

 

 

271

 

 

(43

)

 

(730.2

)%

Public authorities & electric railroads

233

 

250

 

(6.8

)%

 

(4.4

)%

 

 

18

 

 

7

 

 

157.1

%

Other(b)

 

 

n/a

 

 

n/a

 

 

 

250

 

 

237

 

 

5.5

%

Total electric revenues(c)

19,498

 

19,838

 

(1.7

)%

 

(0.5

)%

 

 

1,854

 

 

1,116

 

 

66.1

%

Other Revenues(d)

 

 

 

 

 

 

 

 

 

154

 

 

110

 

 

40.0

%

Total Electric Revenues

 

 

 

 

 

 

 

 

$

2,008

 

$

1,226

 

 

63.8

%

Purchased Power

 

 

 

 

 

 

 

 

$

748

 

$

68

 

 

1,000.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

% Change

Heating and Cooling Degree-Days

2023

 

2022

 

Normal

 

From 2022

 

From Normal

Heating Degree-Days

1,747

 

2,091

 

2,139

 

(16.5

)%

 

(18.3

)%

Cooling Degree-Days

56

 

19

 

14

 

194.7

%

 

300.0

%

Twelve Months Ended December 31, 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

26,023

 

27,819

 

(6.5

)%

 

(2.9

)%

 

$

3,565

 

$

3,304

 

7.9

%

Small commercial & industrial

28,706

 

29,766

 

(3.6

)%

 

(2.0

)%

 

 

1,857

 

 

1,173

 

58.3

%

Large commercial & industrial

26,708

 

26,904

 

(0.7

)%

 

(0.2

)%

 

 

824

 

 

5

 

16,380.0

%

Public authorities & electric railroads

855

 

909

 

(5.9

)%

 

(4.7

)%

 

 

51

 

 

29

 

75.9

%

Other(b)

 

 

n/a

 

 

n/a

 

 

 

965

 

 

955

 

1.0

%

Total electric revenues(c)

82,292

 

85,398

 

(3.6

)%

 

(1.8

)%

 

 

7,262

 

 

5,466

 

32.9

%

Other Revenues(d)

 

 

 

 

 

 

 

 

 

582

 

 

295

 

97.3

%

Total Electric Revenues

 

 

 

 

 

 

 

 

$

7,844

 

$

5,761

 

36.2

%

Purchased Power

 

 

 

 

 

 

 

 

$

2,816

 

$

1,109

 

153.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

% Change

Heating and Cooling Degree-Days

2023

 

2022

 

Normal

 

From 2022

 

From Normal

Heating Degree-Days

5,014

 

6,044

 

5,968

 

(17.0

)%

 

(16.0

)%

Cooling Degree-Days

1,145

 

1,174

 

1,002

 

(2.5

)%

 

14.3

%

Number of Electric Customers

2023

 

2022

Residential

3,744,213

 

3,723,282

Small commercial & industrial

391,675

 

391,298

Large commercial & industrial

1,877

 

1,890

Public authorities & electric railroads

4,807

 

4,858

Total

4,142,572

 

4,121,328

__________
(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 $2 million and $2 million for the three months ended December 31, 2023 and 2022, respectively, and $16 million and $16 million for the twelve months ended December 31, 2023 and 2022, respectively.

(d)

Includes alternative revenue programs and late payment charges.

PECO Statistics

Three Months Ended December 31, 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

3,076

 

3,175

 

(3.1

)%

 

(0.3

)%

 

$

473

 

 

$

488

 

(3.1

)%

Small commercial & industrial

1,751

 

1,812

 

(3.4

)%

 

(1.0

)%

 

 

111

 

 

 

135

 

(17.8

)%

Large commercial & industrial

3,240

 

3,355

 

(3.4

)%

 

(2.6

)%

 

 

53

 

 

 

70

 

(24.3

)%

Public authorities & electric railroads

142

 

149

 

(4.7

)%

 

(5.1

)%

 

 

7

 

 

 

7

 

%

Other(b)

 

 

n/a

 

 

n/a

 

 

 

79

 

 

 

69

 

14.5

%

Total electric revenues(c)

8,209

 

8,491

 

(3.3

)%

 

(1.4

)%

 

 

723

 

 

 

769

 

(6.0

)%

Other Revenues(d)

 

 

 

 

 

 

 

 

 

(5

)

 

 

6

 

(183.3

)%

Total Electric Revenues

 

 

 

 

 

 

 

 

 

718

 

 

 

775

 

(7.4

)%

Natural Gas (in mmcfs)

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural Gas Deliveries and Revenues(e)

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential

12,145

 

13,895

 

(12.6

)%

 

(1.6

)%

 

 

138

 

 

 

177

 

(22.0

)%

Small commercial & industrial

6,801

 

7,211

 

(5.7

)%

 

(1.6

)%

 

 

49

 

 

 

61

 

(19.7

)%

Large commercial & industrial

12

 

11

 

9.1

%

 

0.1

%

 

 

 

 

 

 

n/a

 

Transportation

6,259

 

6,503

 

(3.8

)%

 

(2.5

)%

 

 

7

 

 

 

7

 

%

Other(f)

 

 

n/a

 

 

n/a

 

 

 

5

 

 

 

5

 

%

Total natural gas revenues(g)

25,217

 

27,620

 

(8.7

)%

 

(1.8

)%

 

 

199

 

 

 

250

 

(20.4

)%

Other Revenues(d)

 

 

 

 

 

 

 

 

 

 

 

 

1

 

(100.0

)%

Total Natural Gas Revenues

 

 

 

 

 

 

 

 

 

199

 

 

 

251

 

(20.7

)%

Total Electric and Natural Gas Revenues

 

 

 

 

 

$

917

 

 

$

1,026

 

(10.6

)%

Purchased Power and Fuel

 

 

 

 

 

 

 

 

$

347

 

 

$

442

 

(21.5

)%

 

 

 

 

 

 

 

% Change

Heating and Cooling Degree-Days

2023

 

2022

 

Normal

 

From 2022

 

From Normal

Heating Degree-Days

1,351

 

1,503

 

1,534

 

(10.1

)%

 

(11.9

)%

Cooling Degree-Days

48

 

18

 

32

 

166.7

%

 

50.0

%

Twelve Months Ended December 31, 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

13,262

 

14,379

 

(7.8

)%

 

0.5

%

 

$

2,090

 

$

2,026

 

3.2

%

Small commercial & industrial

7,367

 

7,701

 

(4.3

)%

 

(0.3

)%

 

 

526

 

 

521

 

1.0

%

Large commercial & industrial

13,638

 

14,046

 

(2.9

)%

 

(0.8

)%

 

 

249

 

 

299

 

(16.7

)%

Public authorities & electric railroads

606

 

638

 

(5.0

)%

 

(5.0

)%

 

 

30

 

 

30

 

%

Other(b)

 

 

n/a

 

 

n/a

 

 

 

298

 

 

271

 

10.0

%

Total electric revenues(c)

34,873

 

36,764

 

(5.1

)%

 

(0.3

)%

 

 

3,193

 

 

3,147

 

1.5

%

Other Revenues(d)

 

 

 

 

 

 

 

 

 

9

 

 

18

 

(50.0

)%

Total Electric Revenues

 

 

 

 

 

 

 

 

 

3,202

 

 

3,165

 

1.2

%

Natural Gas (in mmcfs)

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural Gas Deliveries and Revenues(e)

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential

35,842

 

42,135

 

(14.9

)%

 

(3.2

)%

 

 

473

 

 

512

 

(7.6

)%

Small commercial & industrial

21,182

 

23,449

 

(9.7

)%

 

(1.7

)%

 

 

172

 

 

186

 

(7.5

)%

Large commercial & industrial

51

 

31

 

64.5

%

 

2.7

%

 

 

1

 

 

 

n/a

 

Transportation

23,741

 

25,011

 

(5.1

)%

 

(2.4

)%

 

 

27

 

 

26

 

3.8

%

Other(f)

 

 

n/a

 

 

n/a

 

 

 

17

 

 

12

 

41.7

%

Total natural gas revenues(g)

80,816

 

90,626

 

(10.8

)%

 

(2.6

)%

 

 

690

 

 

736

 

(6.3

)%

Other Revenues(d)

 

 

 

 

 

 

 

 

 

2

 

 

2

 

100.0

%

Total Natural Gas Revenues

 

 

 

 

 

 

 

 

 

692

 

 

738

 

(6.2

)%

Total Electric and Natural Gas Revenues

 

 

 

 

 

$

3,894

 

$

3,903

 

(0.2

)%

Purchased Power and Fuel

 

 

 

 

 

 

 

 

$

1,544

 

$

1,535

 

0.6

%

 

 

 

 

 

 

 

% Change

Heating and Cooling Degree-Days

2023

 

2022

 

Normal

 

From 2022

 

From Normal

Heating Degree-Days

3,587

 

4,135

 

4,399

 

(13.3

)%

 

(18.5

)%

Cooling Degree-Days

1,345

 

1,743

 

1,440

 

(22.8

)%

 

(6.6

)%

Number of Electric Customers

2023

 

2022

 

Number of Natural Gas Customers

2023

 

2022

Residential

1,535,927

 

1,525,635

 

Residential

507,197

 

502,944

Small commercial & industrial

156,248

 

155,576

 

Small commercial & industrial

45,001

 

44,957

Large commercial & industrial

3,127

 

3,121

 

Large commercial & industrial

9

 

9

Public authorities & electric railroads

10,417

 

10,393

 

Transportation

627

 

655

Total

1,705,719

 

1,694,725

 

Total

552,834

 

548,565

__________

(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 $3 million and $2 million for the three months ended December 31, 2023 and 2022, respectively, and $7 million and $7 million for the twelve months ended December 31, 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 December 31, 2023 and 2022, respectively, and $2 million and less than $1 million for the twelve months ended December 31, 2023 and 2022, respectively.

BGE Statistics

Three Months Ended December 31, 2023 and 2022

 

 

Electric and Natural Gas Deliveries

 

Revenue (in millions)

 

2023

 

2022

 

% Change

 

Weather-

Normal

% Change

 

 

2023

 

 

2022

 

 

% Change

Electric (in GWhs)