Exhibit 99.1
News Release
| Contact: | Robin Gray Corporate Communications 202-637-0317 Emily Duncan Investor Relations 312-394-2345 | |
EXELON REPORTS FIRST QUARTER 2019 RESULTS
Earnings Release Highlights
| • | GAAP Net Income of $0.93 per share and Adjusted (non-GAAP) Operating Earnings of $0.87 per share for the first quarter of 2019 |
| • | Exelon and subsidiaries upgraded by S&P and Fitch on successful execution of utility growth strategy |
| • | Supreme Court upholds the legality of the ZEC program in Illinois and New York |
| • | New Jersey BPU voted to grant ZECs to Hope Creek and Salem 1 and 2 |
| • | Strong utility operations with every utility achieving top decile CAIDI performance |
CHICAGO (May 2, 2019) — Exelon Corporation (NYSE: EXC) today reported its financial results for the first quarter of 2019.
“Delivering clean energy to address climate change while meeting the needs of our customers and the communities we serve continues to drive Exelon’s business results. Our electric and gas companies earned top marks on key customer satisfaction and operating metrics, while our nuclear generation fleet had its best quarterly capacity factor in 10 years,” said Christopher M. Crane, president and CEO. “The Supreme Court declined to hear cases disputing Illinois’ and New York’s Zero Emissions Credit programs, preserving these states’ emissions-free nuclear power plants and the economic and environmental benefits they provide. We marked the anniversaries of our mergers with Constellation and Pepco Holdings, which not only have improved service for our customers but also increased our regulated business mix and provided more stable earnings.”
“Exelon made a strong start to 2019, with adjusted (non-GAAP) operating earnings this quarter above the midpoint of our guidance range, at $0.87 per share,” said Joseph Nigro, Exelon’s senior executive vice president and CFO. “Our strategy to invest in advanced technology and infrastructure to grow our regulated business continues to prove successful and, in recognition of this, both S&P and Fitch upgraded Exelon’s credit ratings.”
First Quarter 2019
Exelon's GAAP Net Income for the first quarter of 2019 increased to $0.93 per share from $0.60 per share in the first quarter of 2018. Adjusted (non-GAAP) Operating Earnings decreased to $0.87 per share in the first quarter of 2019 from $0.96 per share in the first quarter of 2018. For the reconciliations of GAAP Net Income to Adjusted (non-GAAP) Operating Earnings, refer to the tables beginning on page 5.
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The Adjusted (non-GAAP) Operating Earnings in the first quarter of 2019 reflect lower realized energy prices and the absence of the revenue recognized in the first quarter of 2018 related to Zero Emissions Credits (ZECs) generated in Illinois from June through December 2017, partially offset by increased capacity prices at Generation. On the utility side, the Adjusted (non-GAAP) Operating Earnings reflect higher utility earnings due to regulatory rate increases at PECO, BGE and PHI and lower storm costs at PECO and BGE.
Operating Company Results1
ComEd
ComEd's first quarter of 2019 GAAP Net Income and Adjusted (non-GAAP) remained relatively consistent compared with the first quarter of 2018. Due to revenue decoupling, ComEd's distribution earnings are not affected by actual weather or customer usage patterns.
PECO
PECO’s first quarter of 2019 GAAP Net Income increased to $168 million from $113 million in the first quarter of 2018. PECO’s Adjusted (non-GAAP) Operating Earnings for the first quarter of 2019 increased to $169 million from $114 million in the first quarter of 2018, primarily due to regulatory rate increases and the absence of the March 2018 winter storm costs.
BGE
BGE’s first quarter of 2019 GAAP Net Income increased to $160 million from $128 million in the first quarter of 2018. BGE’s Adjusted (non-GAAP) Operating Earnings for the first quarter of 2019 increased to $161 million from $129 million compared with the first quarter of 2018, primarily due to regulatory rate increases and the absence of the March 2018 winter storm costs. Due to revenue decoupling, BGE's distribution earnings are not affected by actual weather or customer usage patterns.
PHI
PHI’s first quarter of 2019 GAAP Net Income increased to $117 million from $65 million in the first quarter of 2018. PHI’s Adjusted (non-GAAP) Operating Earnings for the first quarter of 2019 increased to $118 million from $65 million in the first quarter of 2018, primarily due to regulatory rate increases. Due to revenue decoupling, PHI's distribution earnings related to Pepco Maryland, DPL Maryland and Pepco District of Columbia are not affected by actual weather or customer usage patterns.
Generation
Generation's first quarter of 2019 GAAP Net Income increased to $363 million from $136 million in the first quarter of 2018. Generation’s Adjusted (non-GAAP) Operating Earnings for the first quarter of 2019 decreased to $294 million from $474 million in the first quarter of 2018, primarily due to lower realized energy prices and the absence of the revenue recognized in the first quarter of 2018 related to ZECs generated in Illinois from June through December 2017, partially offset by increased capacity prices.
The proportion of expected generation hedged as of March 31, 2019, was 90 percent to 93 percent for 2019, 64 percent to 67 percent for 2020 and 38 percent to 41 percent for 2021.
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1Exelon’s five 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; 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; and Generation, which consists of owned and contracted electric generating facilities and wholesale and retail customer supply of electric and natural gas products and services, including renewable energy products and risk management services.
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Recent Developments and First Quarter Highlights
| • | Credit Ratings Upgrade: On March 1, 2019, S&P upgraded Exelon and all its subsidiaries by one notch. Exelon’s issuer credit rating was raised from BBB to BBB+. On March 14, 2019, Fitch Ratings upgraded the senior unsecured rating for Exelon from BBB to BBB+ and the senior unsecured ratings of PECO and BGE to A- from BBB+. In addition, Fitch upgraded PECO’s first mortgage bonds from A to A+ and BGE’s first mortgage bonds from A- to A. Both agencies noted that their upgrades reflect Exelon’s solid 2018 financial results, which demonstrated successful execution of its value proposition to grow the utilities and harvest free cash flow from Generation to support that growth. S&P and Fitch were encouraged by Exelon’s discipline and commitment to delivering on its long-term strategy to maintain strong operational and financial measures, succeed in the execution of ZECs, improve operations and regulatory framework at PHI, and focus on utility growth. This strategy has led to a meaningful reduction in overall business risk by changing the long-term earnings profile outlook of the Company to become more regulated. |
| • | New Jersey Board of Public Utilities (NJBPU) Awards ZEC Payments: In 2017, Public Service Enterprise Group Incorporated (PSEG) announced that its New Jersey nuclear plants, including Salem, of which Generation owns a 42.59 percent ownership interest, were showing increased signs of economic distress, which could lead to early retirement. PSEG is the operator of Salem and has the decision-making authority to retire Salem. In 2018, New Jersey enacted legislation that established a ZEC program that provides compensation for nuclear plants that demonstrate to the NJBPU that they meet certain requirements, including that they make a significant contribution to air quality in the state and that their revenues are insufficient to cover their costs and risks. On April 18, 2019, the NJBPU approved the award of ZECs to Salem 1 and Salem 2. Assuming the New Jersey ZEC program operates as expected, Generation no longer considers Salem to be at heightened risk for early retirement. |
| • | Supreme Court Upholds Illinois and New York ZECs: On April 15, 2019, the U.S. Supreme Court denied the plaintiffs' petition seeking a review of circuit court decisions in Illinois and New York related to ZECs. The U.S. Supreme Court decision affirmed the right for states to create climate and clean energy policies. |
| • | ComEd Distribution Formula Rate Filing: On April 8, 2019, ComEd filed its annual distribution formula rate update with the Illinois Commerce Commission (ICC). The ICC approval is due by December 2019 and the rates will take effect in January 2020. The filing request includes a total decrease to the revenue requirement of $6 million, reflecting an increase of $57 million for the initial revenue requirement for 2019 and a decrease of $63 million related to the annual reconciliation for 2018. The revenue requirement for 2019 and annual reconciliation for 2018 provide for a weighted average debt and equity return on distribution rate base of 6.53 percent inclusive of a requested ROE of 8.91 percent. |
| • | ACE New Jersey Electric Distribution Base Rate Case: On March 13, 2019, the NJBPU issued its order providing for a net increase to ACE's annual electric distribution base rates of $70 million (before New Jersey sales and use tax) and reflecting a ROE of 9.6 percent. The new rates were effective April 1, 2019. |
| • | Nuclear Operations: Generation’s nuclear fleet, including its owned output from the Salem Generating Station and 100 percent of the CENG units, produced 45,715 gigawatt-hours (GWhs) in the first quarter of 2019, compared with 46,941 GWhs in the first quarter of 2018. Excluding Salem, the Exelon-operated nuclear plants at ownership achieved a 97.1 percent capacity factor for the first quarter of 2019, compared with 96.5 percent for the first quarter of 2018. The number of planned |
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refueling outage days in the first quarter of 2019 totaled 74, compared with 68 in the first quarter of 2018. There were no non-refueling outage days in the first quarter of 2019, compared with six in the first quarter of 2018.
| • | Fossil and Renewables Operations: The Dispatch Match rate for Generation’s gas and hydro fleet was 97.8 percent in the first quarter of 2019, compared with 98.1 percent in the first quarter of 2018. Energy Capture for the wind and solar fleet was 96.5 percent in the first quarter of 2019, compared with 95.2 percent in the first quarter of 2018. |
| • | Financing Activities: |
| ◦ | On February 19, 2019, ComEd issued $400 million aggregate principal amount of its First Mortgage Bonds, 4.00 percent Series 126, due March 1, 2049. ComEd used the proceeds to repay a portion of its outstanding commercial paper obligations and for general corporate purposes. |
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GAAP/Adjusted (non-GAAP) Operating Earnings Reconciliation
Adjusted (non-GAAP) Operating Earnings for the first quarter of 2019 do not include the following items (after tax) that were included in reported GAAP Net Income:
| (in millions) | Exelon Earnings per Diluted Share | Exelon | ComEd | PECO | BGE | PHI | Generation | ||||||||||||||
| 2019 GAAP Net Income | $ | 0.93 | $ | 907 | $ | 157 | $ | 168 | $ | 160 | $ | 117 | $ | 363 | |||||||
| Mark-to-Market Impact of Economic Hedging Activities (net of taxes of $12 and $10, respectively) | 0.03 | 31 | — | — | — | — | 26 | ||||||||||||||
| Unrealized Gains Related to Nuclear Decommissioning Trust (NDT) Fund Investments (net of taxes of $161) | (0.20 | ) | (193 | ) | — | — | — | — | (193 | ) | |||||||||||
| Long-Lived Asset Impairments (net of taxes of $1) | — | 4 | — | — | — | — | 4 | ||||||||||||||
| Plant Retirements and Divestitures (net of taxes of $6) | 0.02 | 19 | — | — | — | — | 19 | ||||||||||||||
| Cost Management Program (net of taxes of $3, $0, $0, $0 and $3, respectively) | 0.01 | 11 | — | 1 | 1 | 1 | 8 | ||||||||||||||
| Noncontrolling Interests (net of taxes of $13) | 0.07 | 67 | — | — | — | — | 67 | ||||||||||||||
| 2019 Adjusted (non-GAAP) Operating Earnings | $ | 0.87 | $ | 846 | $ | 157 | $ | 169 | $ | 161 | $ | 118 | $ | 294 | |||||||
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Adjusted (non-GAAP) Operating Earnings for the first quarter of 2018 do not include the following items (after tax) that were included in reported GAAP Net Income:
| (in millions) | Exelon Earnings per Diluted Share | Exelon | ComEd | PECO | BGE | PHI | Generation | ||||||||||||||
| 2018 GAAP Net Income | $ | 0.60 | $ | 585 | $ | 165 | $ | 113 | $ | 128 | $ | 65 | $ | 136 | |||||||
| Mark-to-Market Impact of Economic Hedging Activities (net of taxes of $69) | 0.20 | 197 | — | — | — | — | 197 | ||||||||||||||
| Unrealized Losses Related to NDT Fund Investments (net of taxes of $45) | 0.07 | 66 | — | — | — | — | 66 | ||||||||||||||
| Merger and Integrations Costs (net of taxes of $1) | — | 3 | — | — | — | — | 3 | ||||||||||||||
| Plant Retirements and Divestitures (net of taxes of $32) | 0.10 | 92 | — | — | — | — | 92 | ||||||||||||||
| Cost Management Program (net of taxes of $1, $0, $0 and $1, respectively) | 0.01 | 5 | — | 1 | 1 | — | 3 | ||||||||||||||
| Noncontrolling Interests (net of taxes of $5) | (0.02 | ) | (23 | ) | — | — | — | — | (23 | ) | |||||||||||
| 2018 Adjusted (non-GAAP) Operating Earnings | $ | 0.96 | $ | 925 | $ | 165 | $ | 114 | $ | 129 | $ | 65 | $ | 474 | |||||||
Note:
Amounts may not sum due to rounding.
Unless otherwise noted, the income tax impact of each reconciling item between GAAP Net Income 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 except the unrealized gains and losses related to NDT fund investments, the marginal statutory income tax rates for 2019 and 2018 ranged from 26.0 percent to 29.0 percent. Under IRS regulations, NDT fund investment returns are taxed at different rates for investments if they are in qualified or non-qualified funds. The effective tax rates for the unrealized gains and losses related to NDT fund investments were 45.4 percent and 40.3 percent for the three months ended March 31, 2019 and 2018, respectively.
Webcast Information
Exelon will discuss first quarter 2019 earnings in a one-hour 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 Corporation (NYSE: EXC) is a Fortune 100 energy company with the largest number of electricity and natural gas customers in the U.S. Exelon does business in 48 states, the District of Columbia and Canada and had 2018 revenue of $36 billion. Exelon serves approximately 10 million customers in Delaware, the District of Columbia, Illinois, Maryland, New Jersey and Pennsylvania through its Atlantic City Electric, BGE, ComEd, Delmarva Power, PECO and Pepco subsidiaries. Exelon is one of the largest competitive U.S. power generators, with more than 32,000 megawatts of nuclear, gas, wind, solar and hydroelectric generating capacity comprising one of the nation’s cleanest and lowest-cost power generation fleets. The company’s Constellation business unit provides energy products and services to approximately 2 million residential,
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public sector and business customers, including more than two-thirds of the Fortune 100. Follow Exelon on Twitter @Exelon.
Non-GAAP Financial Measures
In addition to net income as determined under generally accepted accounting principles in the United States (GAAP), Exelon evaluates its operating performance using the measure of Adjusted (non-GAAP) Operating Earnings because management believes it represents earnings directly related to the ongoing operations of the business. Adjusted (non-GAAP) Operating Earnings exclude certain costs, expenses, gains and losses and other specified items. This measure is intended to enhance an investor’s overall understanding of period over period operating results and provide an indication of Exelon’s baseline operating performance excluding items that are considered by management to be not directly related to the ongoing operations of the business. In addition, this measure is among the primary indicators management uses as a basis for evaluating performance, allocating resources, setting incentive compensation targets and planning and forecasting of future periods. Adjusted (non-GAAP) Operating Earnings is not a presentation defined under GAAP and may not be comparable to other companies’ presentation. The Company 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 May 2, 2019.
Cautionary Statements Regarding Forward-Looking Information
This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to risks and uncertainties. The factors that could cause actual results to differ materially from the forward-looking statements made by the Registrants include those factors discussed herein, as well as the items discussed in (1) the Registrants' 2018 Annual Report on Form 10-K in (a) ITEM 1A. Risk Factors, (b) ITEM 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations and (c) ITEM 8. Financial Statements and Supplementary Data: Note 22, Commitments and Contingencies; (2) the Registrants' First Quarter 2019 Quarterly Report on Form 10-Q (to be filed on May 2, 2019) in (a) Part II, Other Information, ITEM 1A. Risk Factors; (b) Part 1, Financial Information, ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations and (c) Part I, Financial Information, ITEM 1. Financial Statements: Note 16, Commitments and Contingencies; and (3) other factors discussed in filings with the SEC by the Registrants. Readers are cautioned not to place undue reliance on these forward-looking statements, 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.
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Earnings Release Attachments
Table of Contents
| Consolidating Statements of Operations - three months ended March 31, 2019 and 2018 | |
| Business Segment Comparative Statements of Operations - Generation and ComEd - three months ended March 31, 2019 and 2018 | |
| Business Segment Comparative Statements of Operations - PECO and BGE - three months ended March 31, 2019 and 2018 | |
| Business Segment Comparative Statements of Operations - PHI and Other - three months ended March 31, 2019 and 2018 | |
| Consolidated Balance Sheets - March 31, 2019 and December 31, 2018 | |
| Consolidated Statements of Cash Flows - three months ended March 31, 2019 and 2018 | |
| GAAP Consolidated Statements of Operations and Adjusted (non-GAAP) Operating Earnings Reconciling Adjustments - Exelon - three months ended March 31, 2019 and 2018 | |
| Reconciliation of Adjusted (non-GAAP) Operating Earnings to GAAP Net Income - three months ended March 31, 2019 and 2018 | |
| GAAP Consolidated Statements of Operations and Adjusted (non-GAAP) Operating Earnings Reconciling Adjustments - Generation - three months ended March 31, 2019 and 2018 | |
| GAAP Consolidated Statements of Operations and Adjusted (non-GAAP) Operating Earnings Reconciling Adjustments - ComEd - three months ended March 31, 2019 and 2018 | |
| GAAP Consolidated Statements of Operations and Adjusted (non-GAAP) Operating Earnings Reconciling Adjustments - PECO - three months ended March 31, 2019 and 2018 | |
| GAAP Consolidated Statements of Operations and Adjusted (non-GAAP) Operating Earnings Reconciling Adjustments - BGE - three months ended March 31, 2019 and 2018 | |
| GAAP Consolidated Statements of Operations and Adjusted (non-GAAP) Operating Earnings Reconciling Adjustments - PHI - three months ended March 31, 2019 and 2018 | |
| GAAP Consolidated Statements of Operations and Adjusted (non-GAAP) Operating Earnings Reconciling Adjustments - Other - three months ended March 31, 2019 and 2018 | |
| Generation Statistics - three months ended March 31, 2019, December 31, 2018, September 30, 2018, June 30, 2018 and March 31, 2018 | |
| ComEd Statistics - three months ended March 31, 2019 and 2018 | |
| PECO Statistics - three months ended March 31, 2019 and 2018 | |
| BGE Statistics - three months ended March 31, 2019 and 2018 | |
| Pepco Statistics - three months ended March 31, 2019 and 2018 | |
| DPL Statistics - three months ended March 31, 2019 and 2018 | |
| ACE Statistics - three months ended March 31, 2019 and 2018 | |
EXELON CORPORATION
Consolidating Statements of Operations
(unaudited)
(in millions)
| Three Months Ended March 31, 2019 | ||||||||||||||||||||||||||||
| Generation | ComEd | PECO | BGE | PHI (a) | Other (b) | Exelon Consolidated | ||||||||||||||||||||||
| Operating revenues | $ | 5,296 | $ | 1,408 | $ | 900 | $ | 976 | $ | 1,228 | $ | (331 | ) | $ | 9,477 | |||||||||||||
| Operating expenses | ||||||||||||||||||||||||||||
| Purchased power and fuel | 3,205 | 485 | 331 | 360 | 490 | (318 | ) | 4,553 | ||||||||||||||||||||
| Operating and maintenance | 1,218 | 321 | 225 | 192 | 272 | (39 | ) | 2,189 | ||||||||||||||||||||
| Depreciation and amortization | 405 | 251 | 81 | 136 | 180 | 22 | 1,075 | |||||||||||||||||||||
| Taxes other than income | 135 | 78 | 41 | 68 | 111 | 12 | 445 | |||||||||||||||||||||
| Total operating expenses | 4,963 | 1,135 | 678 | 756 | 1,053 | (323 | ) | 8,262 | ||||||||||||||||||||
| Gain on sales of assets and businesses | — | 3 | — | — | — | — | 3 | |||||||||||||||||||||
| Operating income (loss) | 333 | 276 | 222 | 220 | 175 | (8 | ) | 1,218 | ||||||||||||||||||||
| Other income and (deductions) | ||||||||||||||||||||||||||||
| Interest expense, net | (111 | ) | (87 | ) | (33 | ) | (29 | ) | (65 | ) | (78 | ) | (403 | ) | ||||||||||||||
| Other, net | 430 | 8 | 4 | 5 | 12 | 8 | 467 | |||||||||||||||||||||
| Total other income and (deductions) | 319 | (79 | ) | (29 | ) | (24 | ) | (53 | ) | (70 | ) | 64 | ||||||||||||||||
| Income (loss) before income taxes | 652 | 197 | 193 | 196 | 122 | (78 | ) | 1,282 | ||||||||||||||||||||
| Income taxes | 224 | 40 | 25 | 36 | 5 | (20 | ) | 310 | ||||||||||||||||||||
| Equity in losses of unconsolidated affiliates | (6 | ) | — | — | — | — | — | (6 | ) | |||||||||||||||||||
| Net income (loss) | 422 | 157 | 168 | 160 | 117 | (58 | ) | 966 | ||||||||||||||||||||
| Net income attributable to noncontrolling interests | 59 | — | — | — | — | — | 59 | |||||||||||||||||||||
| Net income (loss) attributable to common shareholders | $ | 363 | $ | 157 | $ | 168 | $ | 160 | $ | 117 | $ | (58 | ) | $ | 907 | |||||||||||||
| Three Months Ended March 31, 2018 | ||||||||||||||||||||||||||||
| Generation | ComEd | PECO | BGE | PHI (a) | Other (b) | Exelon Consolidated | ||||||||||||||||||||||
| Operating revenues | $ | 5,512 | $ | 1,512 | $ | 866 | $ | 977 | $ | 1,251 | $ | (425 | ) | $ | 9,693 | |||||||||||||
| Operating expenses | ||||||||||||||||||||||||||||
| Purchased power and fuel | 3,293 | 605 | 333 | 380 | 520 | (404 | ) | 4,727 | ||||||||||||||||||||
| Operating and maintenance | 1,339 | 313 | 275 | 221 | 309 | (73 | ) | 2,384 | ||||||||||||||||||||
| Depreciation and amortization | 448 | 228 | 75 | 134 | 183 | 23 | 1,091 | |||||||||||||||||||||
| Taxes other than income | 138 | 77 | 41 | 65 | 113 | 12 | 446 | |||||||||||||||||||||
| Total operating expenses | 5,218 | 1,223 | 724 | 800 | 1,125 | (442 | ) | 8,648 | ||||||||||||||||||||
| Gain on sales of assets and businesses | 53 | 3 | — | — | — | — | 56 | |||||||||||||||||||||
| Operating income | 347 | 292 | 142 | 177 | 126 | 17 | 1,101 | |||||||||||||||||||||
| Other income and (deductions) | ||||||||||||||||||||||||||||
| Interest expense, net | (101 | ) | (89 | ) | (33 | ) | (25 | ) | (63 | ) | (60 | ) | (371 | ) | ||||||||||||||
| Other, net | (44 | ) | 8 | 2 | 4 | 11 | (9 | ) | (28 | ) | ||||||||||||||||||
| Total other income and (deductions) | (145 | ) | (81 | ) | (31 | ) | (21 | ) | (52 | ) | (69 | ) | (399 | ) | ||||||||||||||
| Income (loss) before income taxes | 202 | 211 | 111 | 156 | 74 | (52 | ) | 702 | ||||||||||||||||||||
| Income taxes | 9 | 46 | (2 | ) | 28 | 9 | (31 | ) | 59 | |||||||||||||||||||
| Equity in losses of unconsolidated affiliates | (7 | ) | — | — | — | — | — | (7 | ) | |||||||||||||||||||
| Net income (loss) | 186 | 165 | 113 | 128 | 65 | (21 | ) | 636 | ||||||||||||||||||||
| Net income attributable to noncontrolling interests | 50 | — | — | — | — | 1 | 51 | |||||||||||||||||||||
| Net income (loss) attributable to common shareholders | $ | 136 | $ | 165 | $ | 113 | $ | 128 | $ | 65 | $ | (22 | ) | $ | 585 | |||||||||||||
| (a) | PHI consolidated results includes Pepco, DPL and ACE. |
| (b) | Other primarily includes eliminating and consolidating adjustments, Exelon’s corporate operations, shared service entities and other financing and investment activities. |
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EXELON CORPORATION
Business Segment Comparative Statements of Operations
(unaudited)
(in millions)
| Generation | ||||||||||||
| Three Months Ended March 31, | ||||||||||||
| 2019 | 2018 | Variance | ||||||||||
| Operating revenues | $ | 5,296 | $ | 5,512 | $ | (216 | ) | |||||
| Operating expenses | ||||||||||||
| Purchased power and fuel | 3,205 | 3,293 | (88 | ) | ||||||||
| Operating and maintenance | 1,218 | 1,339 | (121 | ) | ||||||||
| Depreciation and amortization | 405 | 448 | (43 | ) | ||||||||
| Taxes other than income | 135 | 138 | (3 | ) | ||||||||
| Total operating expenses | 4,963 | 5,218 | (255 | ) | ||||||||
| Gain on sales of assets and businesses | — | 53 | (53 | ) | ||||||||
| Operating income | 333 | 347 | (14 | ) | ||||||||
| Other income and (deductions) | ||||||||||||
| Interest expense, net | (111 | ) | (101 | ) | (10 | ) | ||||||
| Other, net | 430 | (44 | ) | 474 | ||||||||
| Total other income and (deductions) | 319 | (145 | ) | 464 | ||||||||
| Income before income taxes | 652 | 202 | 450 | |||||||||
| Income taxes | 224 | 9 | 215 | |||||||||
| Equity in losses of unconsolidated affiliates | (6 | ) | (7 | ) | 1 | |||||||
| Net income | 422 | 186 | 236 | |||||||||
| Net income attributable to noncontrolling interests | 59 | 50 | 9 | |||||||||
| Net income attributable to membership interest | $ | 363 | $ | 136 | $ | 227 | ||||||
| ComEd | ||||||||||||
| Three Months Ended March 31, | ||||||||||||
| 2019 | 2018 | Variance | ||||||||||
| Operating revenues | $ | 1,408 | $ | 1,512 | $ | (104 | ) | |||||
| Operating expenses | ||||||||||||
| Purchased power | 485 | 605 | (120 | ) | ||||||||
| Operating and maintenance | 321 | 313 | 8 | |||||||||
| Depreciation and amortization | 251 | 228 | 23 | |||||||||
| Taxes other than income | 78 | 77 | 1 | |||||||||
| Total operating expenses | 1,135 | 1,223 | (88 | ) | ||||||||
| Gain on sales of assets | 3 | 3 | — | |||||||||
| Operating income | 276 | 292 | (16 | ) | ||||||||
| Other income and (deductions) | ||||||||||||
| Interest expense, net | (87 | ) | (89 | ) | 2 | |||||||
| Other, net | 8 | 8 | — | |||||||||
| Total other income and (deductions) | (79 | ) | (81 | ) | 2 | |||||||
| Income before income taxes | 197 | 211 | (14 | ) | ||||||||
| Income taxes | 40 | 46 | (6 | ) | ||||||||
| Net income | $ | 157 | $ | 165 | $ | (8 | ) | |||||
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EXELON CORPORATION
Business Segment Comparative Statements of Operations
(unaudited)
(in millions)
| PECO | ||||||||||||
| Three Months Ended March 31, | ||||||||||||
| 2019 | 2018 | Variance | ||||||||||
| Operating revenues | $ | 900 | $ | 866 | $ | 34 | ||||||
| Operating expenses | ||||||||||||
| Purchased power and fuel | 331 | 333 | (2 | ) | ||||||||
| Operating and maintenance | 225 | 275 | (50 | ) | ||||||||
| Depreciation and amortization | 81 | 75 | 6 | |||||||||
| Taxes other than income | 41 | 41 | — | |||||||||
| Total operating expenses | 678 | 724 | (46 | ) | ||||||||
| Operating income | 222 | 142 | 80 | |||||||||
| Other income and (deductions) | ||||||||||||
| Interest expense, net | (33 | ) | (33 | ) | — | |||||||
| Other, net | 4 | 2 | 2 | |||||||||
| Total other income and (deductions) | (29 | ) | (31 | ) | 2 | |||||||
| Income before income taxes | 193 | 111 | 82 | |||||||||
| Income taxes | 25 | (2 | ) | 27 | ||||||||
| Net income | $ | 168 | $ | 113 | $ | 55 | ||||||
| BGE | ||||||||||||
| Three Months Ended March 31, | ||||||||||||
| 2019 | 2018 | Variance | ||||||||||
| Operating revenues | $ | 976 | $ | 977 | $ | (1 | ) | |||||
| Operating expenses | ||||||||||||
| Purchased power and fuel | 360 | 380 | (20 | ) | ||||||||
| Operating and maintenance | 192 | 221 | (29 | ) | ||||||||
| Depreciation and amortization | 136 | 134 | 2 | |||||||||
| Taxes other than income | 68 | 65 | 3 | |||||||||
| Total operating expenses | 756 | 800 | (44 | ) | ||||||||
| Operating income | 220 | 177 | 43 | |||||||||
| Other income and (deductions) | ||||||||||||
| Interest expense, net | (29 | ) | (25 | ) | (4 | ) | ||||||
| Other, net | 5 | 4 | 1 | |||||||||
| Total other income and (deductions) | (24 | ) | (21 | ) | (3 | ) | ||||||
| Income before income taxes | 196 | 156 | 40 | |||||||||
| Income taxes | 36 | 28 | 8 | |||||||||
| Net income | $ | 160 | $ | 128 | $ | 32 | ||||||
4
EXELON CORPORATION
Business Segment Comparative Statements of Operations
(unaudited)
(in millions)
PHI (a) | ||||||||||||
| Three Months Ended March 31, | ||||||||||||
| 2019 | 2018 | Variance | ||||||||||
| Operating revenues | $ | 1,228 | $ | 1,251 | $ | (23 | ) | |||||
| Operating expenses | ||||||||||||
| Purchased power and fuel | 490 | 520 | (30 | ) | ||||||||
| Operating and maintenance | 272 | 309 | (37 | ) | ||||||||
| Depreciation and amortization | 180 | 183 | (3 | ) | ||||||||
| Taxes other than income | 111 | 113 | (2 | ) | ||||||||
| Total operating expenses | 1,053 | 1,125 | (72 | ) | ||||||||
| Operating income | 175 | 126 | 49 | |||||||||
| Other income and (deductions) | ||||||||||||
| Interest expense, net | (65 | ) | (63 | ) | (2 | ) | ||||||
| Other, net | 12 | 11 | 1 | |||||||||
| Total other income and (deductions) | (53 | ) | (52 | ) | (1 | ) | ||||||
| Income before income taxes | 122 | 74 | 48 | |||||||||
| Income taxes | 5 | 9 | (4 | ) | ||||||||
| Net income | $ | 117 | $ | 65 | $ | 52 | ||||||
| Other (b) | ||||||||||||
| Three Months Ended March 31, | ||||||||||||
| 2019 | 2018 | Variance | ||||||||||
| Operating revenues | $ | (331 | ) | $ | (425 | ) | $ | 94 | ||||
| Operating expenses | ||||||||||||
| Purchased power and fuel | (318 | ) | (404 | ) | 86 | |||||||
| Operating and maintenance | (39 | ) | (73 | ) | 34 | |||||||
| Depreciation and amortization | 22 | 23 | (1 | ) | ||||||||
| Taxes other than income | 12 | 12 | — | |||||||||
| Total operating expenses | (323 | ) | (442 | ) | 119 | |||||||
| Operating income | (8 | ) | 17 | (25 | ) | |||||||
| Other income and (deductions) | ||||||||||||
| Interest expense, net | (78 | ) | (60 | ) | (18 | ) | ||||||
| Other, net | 8 | (9 | ) | 17 | ||||||||
| Total other income and (deductions) | (70 | ) | (69 | ) | (1 | ) | ||||||
| Loss before income taxes | (78 | ) | (52 | ) | (26 | ) | ||||||
| Income taxes | (20 | ) | (31 | ) | 11 | |||||||
| Net loss | $ | (58 | ) | $ | (21 | ) | $ | (37 | ) | |||
| Net income attributable to noncontrolling interests | — | 1 | (1 | ) | ||||||||
| Net loss attributable to common shareholders | $ | (58 | ) | $ | (22 | ) | $ | (36 | ) | |||
| (a) | PHI consolidated results includes Pepco, DPL and ACE. |
| (b) | Other primarily includes eliminating and consolidating adjustments, Exelon’s corporate operations, shared service entities and other financing and investment activities. |
5
EXELON CORPORATION
Consolidated Balance Sheets
(unaudited) (in millions)
| March 31, 2019 | December 31, 2018 | |||||||
| Assets | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 880 | $ | 1,349 | ||||
| Restricted cash and cash equivalents | 223 | 247 | ||||||
| Accounts receivable, net | ||||||||
| Customer | 4,564 | 4,607 | ||||||
| Other | 1,062 | 1,256 | ||||||
| Mark-to-market derivative assets | 652 | 804 | ||||||
| Unamortized energy contract assets | 49 | 48 | ||||||
| Inventories, net | ||||||||
| Fossil fuel and emission allowances | 179 | 334 | ||||||
| Materials and supplies | 1,380 | 1,351 | ||||||
| Regulatory assets | 1,191 | 1,222 | ||||||
| Assets held for sale | 890 | 904 | ||||||
| Other | 1,406 | 1,238 | ||||||
| Total current assets | 12,476 | 13,360 | ||||||
| Property, plant and equipment, net | 77,460 | 76,707 | ||||||
| Deferred debits and other assets | ||||||||
| Regulatory assets | 8,222 | 8,237 | ||||||
| Nuclear decommissioning trust funds | 12,302 | 11,661 | ||||||
| Investments | 620 | 625 | ||||||
| Goodwill | 6,677 | 6,677 | ||||||
| Mark-to-market derivative assets | 454 | 452 | ||||||
| Unamortized energy contract assets | 365 | 372 | ||||||
| Other | 3,017 | 1,575 | ||||||
| Total deferred debits and other assets | 31,657 | 29,599 | ||||||
| Total assets | $ | 121,593 | $ | 119,666 | ||||
6
| March 31, 2019 | December 31, 2018 | |||||||
| Liabilities and shareholders’ equity | ||||||||
| Current liabilities | ||||||||
| Short-term borrowings | $ | 1,254 | $ | 714 | ||||
| Long-term debt due within one year | 2,508 | 1,349 | ||||||
| Accounts payable | 3,327 | 3,800 | ||||||
| Accrued expenses | 1,725 | 2,112 | ||||||
| Payables to affiliates | 5 | 5 | ||||||
| Regulatory liabilities | 522 | 644 | ||||||
| Mark-to-market derivative liabilities | 345 | 475 | ||||||
| Unamortized energy contract liabilities | 151 | 149 | ||||||
| Renewable energy credit obligation | 348 | 344 | ||||||
| Liabilities held for sale | 799 | 777 | ||||||
| Other | 1,245 | 1,035 | ||||||
| Total current liabilities | 12,229 | 11,404 | ||||||
| Long-term debt | 32,960 | 34,075 | ||||||
| Long-term debt to financing trusts | 390 | 390 | ||||||
| Deferred credits and other liabilities | ||||||||
| Deferred income taxes and unamortized investment tax credits | 11,642 | 11,330 | ||||||
| Asset retirement obligations | 9,967 | 9,679 | ||||||
| Pension obligations | 3,734 | 3,988 | ||||||
| Non-pension postretirement benefit obligations | 1,984 | 1,928 | ||||||
| Spent nuclear fuel obligation | 1,178 | 1,171 | ||||||
| Regulatory liabilities | 9,781 | 9,559 | ||||||
| Mark-to-market derivative liabilities | 434 | 479 | ||||||
| Unamortized energy contract liabilities | 432 | 463 | ||||||
| Other | 3,158 | 2,130 | ||||||
| Total deferred credits and other liabilities | 42,310 | 40,727 | ||||||
| Total liabilities | 87,889 | 86,596 | ||||||
| Commitments and contingencies | ||||||||
| Shareholders’ equity | ||||||||
| Common stock | 19,171 | 19,116 | ||||||
| Treasury stock, at cost | (123 | ) | (123 | ) | ||||
| Retained earnings | 15,321 | 14,766 | ||||||
| Accumulated other comprehensive loss, net | (3,012 | ) | (2,995 | ) | ||||
| Total shareholders’ equity | 31,357 | 30,764 | ||||||
| Noncontrolling interests | 2,347 | 2,306 | ||||||
| Total equity | 33,704 | 33,070 | ||||||
| Total liabilities and shareholders’ equity | $ | 121,593 | $ | 119,666 | ||||
7
EXELON CORPORATION
Consolidated Statements of Cash Flows
(unaudited)
(in millions)
| Three Months Ended March 31, | ||||||||
| 2019 | 2018 | |||||||
| Cash flows from operating activities | ||||||||
| Net income | $ | 966 | $ | 636 | ||||
| Adjustments to reconcile net income to net cash flows provided by operating activities: | ||||||||
| Depreciation, amortization and accretion, including nuclear fuel and energy contract amortization | 1,460 | 1,501 | ||||||
| Impairment of long-lived assets | 7 | — | ||||||
| Gain on sales of assets and businesses | — | (56 | ) | |||||
| Deferred income taxes and amortization of investment tax credits | 187 | (14 | ) | |||||
| Net fair value changes related to derivatives | 31 | 259 | ||||||
| Net realized and unrealized (gains) losses on NDT funds | (308 | ) | 68 | |||||
| Other non-cash operating activities | 127 | 240 | ||||||
| Changes in assets and liabilities: | ||||||||
| Accounts receivable | 79 | 133 | ||||||
| Inventories | 128 | 167 | ||||||
| Accounts payable and accrued expenses | (764 | ) | (451 | ) | ||||
| Option premiums received (paid), net | 6 | (27 | ) | |||||
| Collateral posted, net | (101 | ) | (214 | ) | ||||
| Income taxes | 141 | 86 | ||||||
| Pension and non-pension postretirement benefit contributions | (328 | ) | (331 | ) | ||||
| Other assets and liabilities | (587 | ) | (495 | ) | ||||
| Net cash flows provided by operating activities | 1,044 | 1,502 | ||||||
| Cash flows from investing activities | ||||||||
| Capital expenditures | (1,873 | ) | (1,880 | ) | ||||
| Proceeds from NDT fund sales | 3,713 | 1,189 | ||||||
| Investment in NDT funds | (3,666 | ) | (1,248 | ) | ||||
| Proceeds from sales of assets and businesses | 8 | 79 | ||||||
| Other investing activities | 32 | 3 | ||||||
| Net cash flows used in investing activities | (1,786 | ) | (1,857 | ) | ||||
| Cash flows from financing activities | ||||||||
| Changes in short-term borrowings | 540 | 726 | ||||||
| Proceeds from short-term borrowings with maturities greater than 90 days | — | 1 | ||||||
| Repayments on short-term borrowings with maturities greater than 90 days | — | (1 | ) | |||||
| Issuance of long-term debt | 402 | 1,130 | ||||||
| Retirement of long-term debt | (352 | ) | (1,241 | ) | ||||
| Dividends paid on common stock | (352 | ) | (333 | ) | ||||
| Proceeds from employee stock plans | 51 | 12 | ||||||
| Other financing activities | (14 | ) | (30 | ) | ||||
| Net cash flows provided by financing activities | 275 | 264 | ||||||
| Decrease in cash, cash equivalents and restricted cash | (467 | ) | (91 | ) | ||||
| Cash, cash equivalents and restricted cash at beginning of period | 1,781 | 1,190 | ||||||
| Cash, cash equivalents and restricted cash at end of period | $ | 1,314 | $ | 1,099 | ||||
8
EXELON CORPORATION
GAAP Consolidated Statements of Operations and
Adjusted (non-GAAP) Operating Earnings Reconciling Adjustments
(unaudited)
(in millions, except per share data)
| Three Months Ended March 31, 2019 | Three Months Ended March 31, 2018 | |||||||||||||||||||
| GAAP (a) | Non-GAAP Adjustments | GAAP (a) | Non-GAAP Adjustments | |||||||||||||||||
| Operating revenues | $ | 9,477 | $ | 52 | (b) | $ | 9,693 | $ | 97 | (b) | ||||||||||
| Operating expenses | ||||||||||||||||||||
| Purchased power and fuel | 4,553 | 20 | (b),(c) | 4,727 | (183 | ) | (b),(c) | |||||||||||||
| Operating and maintenance | 2,189 | 56 | (c),(d),(e) | 2,384 | (36 | ) | (c),(d),(f) | |||||||||||||
| Depreciation and amortization | 1,075 | (100 | ) | (c) | 1,091 | (137 | ) | (c) | ||||||||||||
| Taxes other than income | 445 | — | 446 | — | ||||||||||||||||
| Total operating expenses | 8,262 | 8,648 | ||||||||||||||||||
| Gain on sales of assets and businesses | 3 | — | 56 | (53 | ) | (c) | ||||||||||||||
| Operating income | 1,218 | 1,101 | ||||||||||||||||||
| Other income and (deductions) | ||||||||||||||||||||
| Interest expense, net | (403 | ) | 15 | (b) | (371 | ) | — | |||||||||||||
| Other, net | 467 | (358 | ) | (c),(g) | (28 | ) | 111 | (g) | ||||||||||||
| Total other income and (deductions) | 64 | (399 | ) | |||||||||||||||||
| Income before income taxes | 1,282 | 702 | ||||||||||||||||||
| Income taxes | 310 | (139 | ) | (b),(c),(d),(e),(g),(h) | 59 | 148 | (b),(c),(d),(f),(g),(h) | |||||||||||||
| Equity in losses of unconsolidated affiliates | (6 | ) | — | (7 | ) | — | ||||||||||||||
| Net income | 966 | 636 | ||||||||||||||||||
| Net income attributable to noncontrolling interests | 59 | (67 | ) | (i) | 51 | 23 | (i) | |||||||||||||
| Net income attributable to common shareholders | $ | 907 | $ | 585 | ||||||||||||||||
Effective tax rate(h) | 24.2 | % | 8.4 | % | ||||||||||||||||
| Earnings per average common share | ||||||||||||||||||||
| Basic | $ | 0.93 | $ | 0.61 | ||||||||||||||||
| Diluted | $ | 0.93 | $ | 0.60 | ||||||||||||||||
| Average common shares outstanding | ||||||||||||||||||||
| Basic | 971 | 966 | ||||||||||||||||||
| Diluted | 972 | 968 | ||||||||||||||||||
| Effect of adjustments on earnings per average diluted common share recorded in accordance with GAAP: | ||||||||||||||||||||
| Mark-to-market impact of economic hedging activities (b) | $ | 0.03 | $ | 0.20 | ||||||||||||||||
| Unrealized (gains) losses related to NDT fund investments (g) | (0.20 | ) | 0.07 | |||||||||||||||||
| Plant retirements and divestitures (c) | 0.02 | 0.10 | ||||||||||||||||||
| Cost management program (d) | 0.01 | 0.01 | ||||||||||||||||||
| Noncontrolling interests (i) | 0.07 | (0.02 | ) | |||||||||||||||||
| Total adjustments | $ | (0.06 | ) | (j) | $ | 0.36 | ||||||||||||||
| (a) | Results reported in accordance with accounting principles generally accepted in the United States (GAAP). |
| (b) | Adjustment to exclude the mark-to-market impact of Exelon’s economic hedging activities, net of intercompany eliminations. |
| (c) | In 2018, adjustment to exclude accelerated depreciation and amortization expenses and one-time charges associated with Generation's decision to early retire the Oyster Creek nuclear facility and accelerated depreciation and amortization expenses associated with the 2017 decision to early retire the Three Mile Island (TMI) nuclear facility, partially offset by a gain associated with Generation's sale of its electrical contracting business. In 2019, adjustment to exclude accelerated depreciation and amortization expenses associated with Generation's previous decision to early retire the TMI nuclear facility and a benefit associated with a remeasurement of the TMI asset retirement obligation. |
| (d) | Adjustment to exclude reorganization costs related to cost management programs. |
| (e) | Adjustment to exclude the impairment of certain wind projects at Generation. |
| (f) | Adjustment to exclude costs related to the PHI acquisition. |
| (g) | Adjustment to exclude the impact of net unrealized gains and losses on Generation’s NDT fund investments for Non-Regulatory and Regulatory Agreement Units. The impacts of the Regulatory Agreement Units, including the associated income taxes, are contractually eliminated, resulting in no earnings impact. |
| (h) | The effective tax rate related to Adjusted (non-GAAP) Operating Earnings is 16.8 percent and 17.1 percent for the three months ended March 31, 2019 and March 31, 2018, respectively. |
| (i) | Adjustment to exclude elimination from Generation’s results of the noncontrolling interests related to certain exclusion items, primarily related to the impact of unrealized gains and losses on NDT fund investments at CENG. |
| (j) | Amounts may not sum due to rounding. |
9
EXELON CORPORATION
Reconciliation of Adjusted (non-GAAP) Operating
Earnings to GAAP Net Income (in millions)
Three Months Ended March 31, 2019 and 2018
(unaudited)
| Exelon Earnings per Diluted Share | Generation | ComEd | PECO | BGE | PHI (a) | Other (b) | Exelon | |||||||||||||||||||||||||
| 2018 GAAP Net Income | $ | 0.60 | $ | 136 | $ | 165 | $ | 113 | $ | 128 | $ | 65 | $ | (22 | ) | $ | 585 | |||||||||||||||
| 2018 Adjusted (non-GAAP) Operating (Earnings) Loss Adjustments: | ||||||||||||||||||||||||||||||||
| Mark-to-Market Impact of Economic Hedging Activities (net of taxes of $69) | 0.20 | 197 | — | — | — | — | — | 197 | ||||||||||||||||||||||||
| Unrealized Losses Related to NDT Fund Investments (net of taxes of $45) (1) | 0.07 | 66 | — | — | — | — | — | 66 | ||||||||||||||||||||||||
| PHI Merger and Integration Costs (net of taxes of $1) | — | 3 | — | — | — | — | — | 3 | ||||||||||||||||||||||||
| Plant Retirements and Divestitures (net of taxes of $32) (2) | 0.10 | 92 | — | — | — | — | — | 92 | ||||||||||||||||||||||||
| Cost Management Program (net of taxes of $1, $0, $0 and $1, respectively) (3) | 0.01 | 3 | — | 1 | 1 | — | — | 5 | ||||||||||||||||||||||||
| Noncontrolling Interests (net of taxes of $5) (4) | (0.02 | ) | (23 | ) | — | — | — | — | — | (23 | ) | |||||||||||||||||||||
| 2018 Adjusted (non-GAAP) Operating Earnings (Loss) | 0.96 | 474 | 165 | 114 | 129 | 65 | (22 | ) | 925 | |||||||||||||||||||||||
| Year Over Year Effects on Earnings: | ||||||||||||||||||||||||||||||||
| ComEd, PECO, BGE and PHI Margins: | ||||||||||||||||||||||||||||||||
| Weather | — | — | — | (c) | 1 | — | (c) | — | (c) | — | 1 | |||||||||||||||||||||
| Load | — | — | — | (c) | 2 | — | (c) | (1 | ) | (c) | — | 1 | ||||||||||||||||||||
| Other Energy Delivery (5) | 0.06 | — | 11 | (d) | 23 | (d) | 14 | (d) | 6 | (d) | — | 54 | ||||||||||||||||||||
| Generation Energy Margins, Excluding Mark-to-Market: | ||||||||||||||||||||||||||||||||
| Nuclear Volume (6) | (0.04 | ) | (43 | ) | — | — | — | — | — | (43 | ) | |||||||||||||||||||||
| Nuclear Fuel Cost (7) | 0.01 | 11 | — | — | — | — | — | 11 | ||||||||||||||||||||||||
| Capacity Pricing (8) | 0.04 | 35 | — | — | — | — | — | 35 | ||||||||||||||||||||||||
| Zero Emission Credit Revenue (9) | (0.10 | ) | (102 | ) | — | — | — | — | — | (102 | ) | |||||||||||||||||||||
| Market and Portfolio Conditions (10) | (0.19 | ) | (182 | ) | — | — | — | — | — | (182 | ) | |||||||||||||||||||||
| Operating and Maintenance Expense: | ||||||||||||||||||||||||||||||||
| Labor, Contracting and Materials (11) | 0.03 | 25 | 4 | (5 | ) | — | 5 | — | 29 | |||||||||||||||||||||||
| Planned Nuclear Refueling Outages | — | (2 | ) | — | — | — | — | — | (2 | ) | ||||||||||||||||||||||
| Pension and Non-Pension Postretirement Benefits (12) | 0.02 | 12 | 8 | 1 | — | (1 | ) | 3 | 23 | |||||||||||||||||||||||
| Other Operating and Maintenance (13) | 0.04 | (14 | ) | (18 | ) | 39 | 21 | 23 | (10 | ) | 41 | |||||||||||||||||||||
| Depreciation and Amortization Expense (14) | (0.02 | ) | 4 | (16 | ) | (4 | ) | (1 | ) | 2 | (1 | ) | (16 | ) | ||||||||||||||||||
| Interest Expense, Net | — | 9 | 1 | — | (2 | ) | (1 | ) | (6 | ) | 1 | |||||||||||||||||||||
| Income Taxes (15) | (0.01 | ) | (15 | ) | 2 | (2 | ) | 3 | 18 | (17 | ) | (11 | ) | |||||||||||||||||||
| Noncontrolling Interests (16) | 0.09 | 85 | — | — | — | — | — | 85 | ||||||||||||||||||||||||
| Other | — | (3 | ) | — | — | (3 | ) | 2 | — | (4 | ) | |||||||||||||||||||||
| 2019 Adjusted (non-GAAP) Operating Earnings (Loss) | 0.87 | 294 | 157 | 169 | 161 | 118 | (53 | ) | 846 | |||||||||||||||||||||||
| 2019 Adjusted (non-GAAP) Operating Earnings (Loss) Adjustments: | ||||||||||||||||||||||||||||||||
| Mark-to-Market Impact of Economic Hedging Activities (net of taxes of $10, $2 and $12, respectively) | (0.03 | ) | (26 | ) | — | — | — | — | (5 | ) | (31 | ) | ||||||||||||||||||||
| Unrealized Gains Related to NDT Fund Investments (net of taxes of $161) (1) | 0.20 | 193 | — | — | — | — | — | 193 | ||||||||||||||||||||||||
| Long-Lived Asset Impairments (net of taxes of $1) | — | (4 | ) | — | — | — | — | — | (4 | ) | ||||||||||||||||||||||
| Plant Retirements and Divestitures (net of taxes of $6) (2) | (0.02 | ) | (19 | ) | — | — | — | — | — | (19 | ) | |||||||||||||||||||||
| Cost Management Program (net of taxes of $3, $0, $0, $0 and $3, respectively) (3) | (0.01 | ) | (8 | ) | — | (1 | ) | (1 | ) | (1 | ) | — | (11 | ) | ||||||||||||||||||
| Noncontrolling Interests (net of taxes of $13) (4) | (0.07 | ) | (67 | ) | — | — | — | — | — | (67 | ) | |||||||||||||||||||||
| 2019 GAAP Net Income (Loss) | $ | 0.93 | $ | 363 | $ | 157 | $ | 168 | $ | 160 | $ | 117 | $ | (58 | ) | $ | 907 | |||||||||||||||
10
Note:
Amounts may not sum due to rounding.
Unless otherwise noted, the income tax impact of each reconciling item between GAAP Net Income 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 except the unrealized gains and losses related to NDT fund investments, the marginal statutory income tax rates for 2019 and 2018 ranged from 26.0 percent to 29.0 percent. Under IRS regulations, NDT fund investment returns are taxed at different rates for investments if they are in qualified or non-qualified funds. The effective tax rates for the unrealized gains and losses related to NDT fund investments were 45.4 percent and 40.3 percent for the three months ended March 31, 2019 and 2018, respectively.
| (a) | PHI consolidated results includes Pepco, DPL and ACE. |
| (b) | Other primarily includes eliminating and consolidating adjustments, Exelon’s corporate operations, shared service entities and other financing and investment activities. |
| (c) | For ComEd, BGE, Pepco and DPL Maryland, customer rates are adjusted to eliminate the impacts of weather and customer usage on distribution volumes. |
| (d) | For regulatory recovery mechanisms, including ComEd’s distribution formula rate, 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 the impact of net unrealized gains and losses on Generation’s NDT fund investments for Non-Regulatory and Regulatory Agreement Units. The impacts of the Regulatory Agreement Units, including the associated income taxes, are contractually eliminated, resulting in no earnings impact. |
| (2) | In 2018, primarily reflects accelerated depreciation and amortization expenses and one-time charges associated with Generation's decision to early retire the Oyster Creek nuclear facility and accelerated depreciation and amortization expenses associated with the 2017 decision to early retire the Three Mile Island (TMI) nuclear facility, partially offset by a gain associated with Generation's sale of its electrical contracting business. In 2019, primarily reflects accelerated depreciation and amortization expenses associated with Generation's previous decision to early retire the TMI nuclear facility and a benefit associated with a remeasurement of the TMI asset retirement obligation. |
| (3) | Primarily represents reorganization costs related to cost management programs. |
| (4) | Represents elimination from Generation’s results of the noncontrolling interests related to certain exclusion items, primarily related to the impact of unrealized gains and losses on NDT fund investments at CENG. |
| (5) | For ComEd, reflects increased electric distribution, energy efficiency and transmission revenues due to higher rate base. For PECO, BGE, and PHI, reflects increased revenue as a result of rate increases. For PECO, also reflects increased revenue as a result of the absence in 2019 of the 2010 and 2011 electric and gas distribution tax repair credits fully refunded in 2018. For PHI, the rate increases were partially offset by the accelerated amortization of certain deferred income tax regulatory liabilities established upon the enactment of TCJA as the result of regulatory settlements. Additionally, for all utilities, reflects decreased mutual assistance revenues. |
| (6) | Primarily reflects the permanent cease of generation operations at Oyster Creek in September 2018. |
| (7) | Primarily reflects a decrease in fuel prices and decreased nuclear output as a result of the permanent cease of generation operations at Oyster Creek. |
| (8) | Primarily reflects increased capacity prices in the Mid-Atlantic and Midwest regions, partially offset by decreased capacity prices in Other Power Regions. |
| (9) | Primarily reflects the absence of the revenue recognized in the first quarter 2018 related to zero emissions credits generated in Illinois from June through December 2017. |
| (10) | Primarily reflects lower realized energy prices. |
| (11) | For Generation, primarily reflects decreased costs related to the permanent cease of generation operations at Oyster Creek. For the utilities, primarily reflects decreased mutual assistance expenses. |
| (12) | Primarily reflects an increase in discount rates and the favorable impacts of the merger of two of Exelon’s pension plans effective in January 2019, partially offset by lower than expected asset returns in 2018. |
| (13) | For Generation, primarily reflects the absence of a supplemental NEIL insurance distribution received in the first quarter 2018. For ComEd, primarily reflects increased storm costs. For PECO and BGE, primarily reflects decreased storm costs related to March 2018 winter storms. For PHI, primarily reflects a decrease in uncollectible accounts expense. |
| (14) | Reflects ongoing capital expenditures across all utilities. For ComEd, also reflects higher depreciation rates effective January 2019. For PHI, the impact of ongoing capital expenditures is more than offset by decreased regulatory asset amortization. |
| (15) | For Generation, primarily reflects renewable tax credits and one-time adjustments. For PECO, primarily reflects the decline in the amortization of income tax regulatory liabilities established in 2010 and 2011 for electric and gas repair deductions that were fully refunded to customers in 2018. For PHI, primarily reflects the accelerated amortization of certain deferred income tax regulatory liabilities established upon the enactment of TCJA as the result of regulatory settlements. |
| (16) | Reflects elimination from Generation’s results of activity attributable to noncontrolling interests, primarily for CENG. |
11
EXELON CORPORATION
GAAP Consolidated Statements of Operations and
Adjusted (non-GAAP) Operating Earnings Reconciling Adjustments
(unaudited)
(in millions)
| Generation | ||||||||||||||||||||
| Three Months Ended March 31, 2019 | Three Months Ended March 31, 2018 | |||||||||||||||||||
| GAAP (a) | Non-GAAP Adjustments | GAAP (a) | Non-GAAP Adjustments | |||||||||||||||||
| Operating revenues | $ | 5,296 | $ | 52 | (b) | $ | 5,512 | $ | 97 | (b) | ||||||||||
| Operating expenses | ||||||||||||||||||||
| Purchased power and fuel | 3,205 | 20 | (b),(c) | 3,293 | (183 | ) | (b),(c) | |||||||||||||
| Operating and maintenance | 1,218 | 59 | (c),(d),(e) | 1,339 | (34 | ) | (c),(d),(f) | |||||||||||||
| Depreciation and amortization | 405 | (100 | ) | (c) | 448 | (137 | ) | (c) | ||||||||||||
| Taxes other than income | 135 | — | 138 | — | ||||||||||||||||
| Total operating expenses | 4,963 | 5,218 | ||||||||||||||||||
| Gain on sales of assets and businesses | — | — | 53 | (53 | ) | (c) | ||||||||||||||
| Operating income | 333 | 347 | ||||||||||||||||||
| Other income and (deductions) | ||||||||||||||||||||
| Interest expense, net | (111 | ) | 8 | (b) | (101 | ) | — | |||||||||||||
| Other, net | 430 | (358 | ) | (b),(c),(g) | (44 | ) | 111 | (g) | ||||||||||||
| Total other income and (deductions) | 319 | (145 | ) | |||||||||||||||||
| Income before income taxes | 652 | 202 | ||||||||||||||||||
| Income taxes | 224 | (141 | ) | (b),(c),(d),(e),(g) | 9 | 148 | (b),(c),(d),(f),(g) | |||||||||||||
| Equity in losses of unconsolidated affiliates | (6 | ) | — | (7 | ) | — | ||||||||||||||
| Net income | 422 | 186 | ||||||||||||||||||
| Net income attributable to noncontrolling interests | 59 | (67 | ) | (h) | 50 | 23 | (h) | |||||||||||||
| Net income attributable to membership interest | $ | 363 | $ | 136 | ||||||||||||||||
| (a) | Results reported in accordance with accounting principles generally accepted in the United States (GAAP). |
| (b) | Adjustment to exclude the mark-to-market impact of Generation’s economic hedging activities, net of intercompany eliminations. |
| (c) | In 2018, adjustment to exclude accelerated depreciation and amortization expenses and one-time charges associated with Generation's decision to early retire the Oyster Creek nuclear facility and accelerated depreciation and amortization expenses associated with the 2017 decision to early retire the Three Mile Island (TMI) nuclear facility, partially offset by a gain associated with Generation's sale of its electrical contracting business. In 2019, adjustment to exclude accelerated depreciation and amortization expenses associated with Generation's previous decision to early retire the TMI nuclear facility and a benefit associated with a remeasurement of the TMI asset retirement obligation. |
| (d) | Adjustment to exclude reorganization costs related to cost management programs. |
| (e) | Adjustment to exclude the impairment of certain wind projects. |
| (f) | Adjustment to exclude costs related to the PHI acquisition. |
| (g) | Adjustment to exclude the impact of net unrealized gains and losses on Generation’s NDT fund investments for Non-Regulatory and Regulatory Agreement Units. The impacts of the Regulatory Agreement Units, including the associated income taxes, are contractually eliminated, resulting in no earnings impact. |
| (h) | Adjustment to exclude the elimination from Generation’s results of the noncontrolling interest related to certain exclusion items, primarily related to the impact of unrealized gains and losses on NDT fund investments at CENG. |
12
EXELON CORPORATION
GAAP Consolidated Statements of Operations and
Adjusted (non-GAAP) Operating Earnings Reconciling Adjustments
(unaudited)
(in millions)
| ComEd | ||||||||||||||||||||
| Three Months Ended March 31, 2019 | Three Months Ended March 31, 2018 | |||||||||||||||||||
| GAAP (a) | Non-GAAP Adjustments | GAAP (a) | Non-GAAP Adjustments | |||||||||||||||||
| Operating revenues | $ | 1,408 | $ | — | $ | 1,512 | $ | — | ||||||||||||
| Operating expenses | ||||||||||||||||||||
| Purchased power and fuel | 485 | — | 605 | — | ||||||||||||||||
| Operating and maintenance | 321 | — | 313 | — | ||||||||||||||||
| Depreciation and amortization | 251 | — | 228 | — | ||||||||||||||||
| Taxes other than income | 78 | — | 77 | — | ||||||||||||||||
| Total operating expenses | 1,135 | 1,223 | ||||||||||||||||||
| Gain on sales of assets | 3 | — | 3 | — | ||||||||||||||||
| Operating income | 276 | 292 | ||||||||||||||||||
| Other income and (deductions) | ||||||||||||||||||||
| Interest expense, net | (87 | ) | — | (89 | ) | — | ||||||||||||||
| Other, net | 8 | — | 8 | — | ||||||||||||||||
| Total other income and (deductions) | (79 | ) | (81 | ) | ||||||||||||||||
| Income before income taxes | 197 | 211 | ||||||||||||||||||
| Income taxes | 40 | — | 46 | — | ||||||||||||||||
| Net income | $ | 157 | $ | 165 | ||||||||||||||||
| (a) | Results reported in accordance with accounting principles generally accepted in the United States (GAAP). |
13
EXELON CORPORATION
GAAP Consolidated Statements of Operations and
Adjusted (non-GAAP) Operating Earnings Reconciling Adjustments
(unaudited)
(in millions)
| PECO | ||||||||||||||||||||
| Three Months Ended March 31, 2019 | Three Months Ended March 31, 2018 | |||||||||||||||||||
| GAAP (a) | Non-GAAP Adjustments | GAAP (a) | Non-GAAP Adjustments | |||||||||||||||||
| Operating revenues | $ | 900 | $ | — | $ | 866 | $ | — | ||||||||||||
| Operating expenses | ||||||||||||||||||||
| Purchased power and fuel | 331 | — | 333 | — | ||||||||||||||||
| Operating and maintenance | 225 | (1 | ) | (b) | 275 | (1 | ) | (b) | ||||||||||||
| Depreciation and amortization | 81 | — | 75 | — | ||||||||||||||||
| Taxes other than income | 41 | — | 41 | — | ||||||||||||||||
| Total operating expenses | 678 | 724 | ||||||||||||||||||
| Operating income | 222 | 142 | ||||||||||||||||||
| Other income and (deductions) | ||||||||||||||||||||
| Interest expense, net | (33 | ) | — | (33 | ) | — | ||||||||||||||
| Other, net | 4 | — | 2 | — | ||||||||||||||||
| Total other income and (deductions) | (29 | ) | (31 | ) | ||||||||||||||||
| Income before income taxes | 193 | 111 | ||||||||||||||||||
| Income taxes | 25 | — | (2 | ) | — | |||||||||||||||
| Net income | $ | 168 | $ | 113 | ||||||||||||||||
| (a) | Results reported in accordance with accounting principles generally accepted in the United States (GAAP). |
| (b) | Adjustment to exclude reorganization costs related to cost management programs. |
14
EXELON CORPORATION
GAAP Consolidated Statements of Operations and
Adjusted (non-GAAP) Operating Earnings Reconciling Adjustments
(unaudited)
(in millions)
| BGE | ||||||||||||||||||||
| Three Months Ended March 31, 2019 | Three Months Ended March 31, 2018 | |||||||||||||||||||
| GAAP (a) | Non-GAAP Adjustments | GAAP (a) | Non-GAAP Adjustments | |||||||||||||||||
| Operating revenues | $ | 976 | $ | — | $ | 977 | $ | — | ||||||||||||
| Operating expenses | ||||||||||||||||||||
| Purchased power and fuel | 360 | — | 380 | — | ||||||||||||||||
| Operating and maintenance | 192 | (1 | ) | (b) | 221 | (1 | ) | (b) | ||||||||||||
| Depreciation and amortization | 136 | — | 134 | — | ||||||||||||||||
| Taxes other than income | 68 | — | 65 | — | ||||||||||||||||
| Total operating expenses | 756 | 800 | ||||||||||||||||||
| Operating income | 220 | 177 | ||||||||||||||||||
| Other income and (deductions) | ||||||||||||||||||||
| Interest expense, net | (29 | ) | — | (25 | ) | — | ||||||||||||||
| Other, net | 5 | — | 4 | — | ||||||||||||||||
| Total other income and (deductions) | (24 | ) | (21 | ) | ||||||||||||||||
| Income before income taxes | 196 | 156 | ||||||||||||||||||
| Income taxes | 36 | — | 28 | — | ||||||||||||||||
| Net income | $ | 160 | $ | 128 | ||||||||||||||||
| (a) | Results reported in accordance with accounting principles generally accepted in the United States (GAAP). |
| (b) | Adjustment to exclude reorganization costs related to cost management programs. |
15
EXELON CORPORATION
GAAP Consolidated Statements of Operations and
Adjusted (non-GAAP) Operating Earnings Reconciling Adjustments
(unaudited)
(in millions)
| PHI (b) | ||||||||||||||||||||
| Three Months Ended March 31, 2019 | Three Months Ended March 31, 2018 | |||||||||||||||||||
| GAAP (a) | Non-GAAP Adjustments | GAAP (a) | Non-GAAP Adjustments | |||||||||||||||||
| Operating revenues | $ | 1,228 | $ | — | $ | 1,251 | $ | — | ||||||||||||
| Operating expenses | ||||||||||||||||||||
| Purchased power and fuel | 490 | — | 520 | — | ||||||||||||||||
| Operating and maintenance | 272 | (1 | ) | (c) | 309 | — | ||||||||||||||
| Depreciation and amortization | 180 | — | 183 | — | ||||||||||||||||
| Taxes other than income | 111 | — | 113 | — | ||||||||||||||||
| Total operating expenses | 1,053 | 1,125 | ||||||||||||||||||
| Operating income | 175 | 126 | ||||||||||||||||||
| Other income and (deductions) | ||||||||||||||||||||
| Interest expense, net | (65 | ) | — | (63 | ) | — | ||||||||||||||
| Other, net | 12 | — | 11 | — | ||||||||||||||||
| Total other income and (deductions) | (53 | ) | (52 | ) | ||||||||||||||||
| Income before income taxes | 122 | 74 | ||||||||||||||||||
| Income taxes | 5 | — | 9 | — | ||||||||||||||||
| Net income | $ | 117 | $ | 65 | ||||||||||||||||
| (a) | Results reported in accordance with accounting principles generally accepted in the United States (GAAP). |
| (b) | PHI consolidated results includes Pepco, DPL and ACE. |
| (c) | Adjustment to exclude reorganization costs related to cost management programs. |
16
EXELON CORPORATION
GAAP Consolidated Statements of Operations and
Adjusted (non-GAAP) Operating Earnings Reconciling Adjustments
(unaudited)
(in millions)
| Other (a) | ||||||||||||||||||||
| Three Months Ended March 31, 2019 | Three Months Ended March 31, 2018 | |||||||||||||||||||
| GAAP (b) | Non-GAAP Adjustments | GAAP (b) | Non-GAAP Adjustments | |||||||||||||||||
| Operating revenues | $ | (331 | ) | $ | — | $ | (425 | ) | $ | — | ||||||||||
| Operating expenses | ||||||||||||||||||||
| Purchased power and fuel | (318 | ) | — | (404 | ) | — | ||||||||||||||
| Operating and maintenance | (39 | ) | — | (73 | ) | — | ||||||||||||||
| Depreciation and amortization | 22 | — | 23 | — | ||||||||||||||||
| Taxes other than income | 12 | — | 12 | — | ||||||||||||||||
| Total operating expenses | (323 | ) | (442 | ) | ||||||||||||||||
| Operating income | (8 | ) | 17 | |||||||||||||||||
| Other income and (deductions) | ||||||||||||||||||||
| Interest expense, net | (78 | ) | 7 | (c) | (60 | ) | — | |||||||||||||
| Other, net | 8 | — | (9 | ) | — | |||||||||||||||
| Total other income and (deductions) | (70 | ) | (69 | ) | ||||||||||||||||
| Loss before income taxes | (78 | ) | (52 | ) | ||||||||||||||||
| Income taxes | (20 | ) | 2 | (c) | (31 | ) | — | |||||||||||||
| Equity in earnings of unconsolidated affiliates | — | — | — | — | ||||||||||||||||
| Net (loss) income | (58 | ) | (21 | ) | ||||||||||||||||
| Net income attributable to noncontrolling interests | — | 1 | ||||||||||||||||||
| Net (loss) income attributable to common shareholders | $ | (58 | ) | $ | (22 | ) | ||||||||||||||
| (a) | Other primarily includes eliminating and consolidating adjustments, Exelon’s corporate operations, shared service entities and other financing and investment activities. |
| (b) | Results reported in accordance with accounting principles generally accepted in the United States (GAAP). |
| (c) | Adjustment to exclude the mark-to-market impact of Exelon’s economic hedging activities, net of intercompany eliminations. |
17
EXELON CORPORATION
Generation Statistics
| Three Months Ended | |||||||||||||||
| March 31, 2019 | December 31, 2018 | September 30, 2018 | June 30, 2018 | March 31, 2018 | |||||||||||
| Supply (in GWhs) | |||||||||||||||
| Nuclear Generation | |||||||||||||||
Mid-Atlantic(a) | 15,080 | 15,175 | 16,197 | 16,498 | 16,229 | ||||||||||
| Midwest | 23,733 | 23,752 | 23,834 | 23,100 | 23,597 | ||||||||||
New York(a) | 6,902 | 6,882 | 6,518 | 6,125 | 7,115 | ||||||||||
| Total Nuclear Generation | 45,715 | 45,809 | 46,549 | 45,723 | 46,941 | ||||||||||
| Fossil and Renewables | |||||||||||||||
| Mid-Atlantic | 951 | 1,010 | 853 | 907 | 900 | ||||||||||
| Midwest | 392 | 353 | 244 | 321 | 455 | ||||||||||
| New York | 1 | — | 1 | 1 | 1 | ||||||||||
| ERCOT | 3,078 | 2,791 | 3,137 | 2,303 | 2,949 | ||||||||||
Other Power Regions(b) | 3,141 | 2,563 | 3,628 | 3,037 | 4,028 | ||||||||||
| Total Fossil and Renewables | 7,563 | 6,717 | 7,863 | 6,569 | 8,333 | ||||||||||
| Purchased Power | |||||||||||||||
| Mid-Atlantic | 2,566 | 1,678 | 3,504 | 557 | 766 | ||||||||||
| Midwest | 288 | 263 | 174 | 223 | 336 | ||||||||||
| ERCOT | 1,042 | 1,046 | 1,811 | 2,320 | 1,373 | ||||||||||
Other Power Regions(b) | 12,569 | 12,268 | 12,705 | 10,455 | 9,570 | ||||||||||
| Total Purchased Power | 16,465 | 15,255 | 18,194 | 13,555 | 12,045 | ||||||||||
| Total Supply/Sales by Region | |||||||||||||||
Mid-Atlantic(c) | 18,597 | 17,863 | 20,554 | 17,962 | 17,895 | ||||||||||
Midwest(c) | 24,413 | 24,368 | 24,252 | 23,644 | 24,388 | ||||||||||
| New York | 6,903 | 6,882 | 6,519 | 6,126 | 7,116 | ||||||||||
| ERCOT | 4,120 | 3,837 | 4,948 | 4,623 | 4,322 | ||||||||||
Other Power Regions(b) | 15,710 | 14,831 | 16,333 | 13,492 | 13,598 | ||||||||||
| Total Supply/Sales by Region | 69,743 | 67,781 | 72,606 | 65,847 | 67,319 | ||||||||||
| Three Months Ended | |||||||||||||||
| March 31, 2019 | December 31, 2018 | September 30, 2018 | June 30, 2018 | March 31, 2018 | |||||||||||
Outage Days(d) | |||||||||||||||
| Refueling | 74 | 76 | 36 | 94 | 68 | ||||||||||
| Non-refueling | — | 18 | 12 | 2 | 6 | ||||||||||
| Total Outage Days | 74 | 94 | 48 | 96 | 74 | ||||||||||
| (a) | Includes the proportionate share of output where Generation has an undivided ownership interest in jointly-owned generating plants and includes the total output of plants that are fully consolidated (e.g. CENG). |
| (b) | Other Power Regions includes New England, South, West and Canada. |
| (c) | Includes affiliate sales to PECO, BGE, Pepco, DPL and ACE in the Mid-Atlantic region and affiliate sales to ComEd in the Midwest region. |
| (d) | Outage days exclude Salem. |
18
EXELON CORPORATION
ComEd Statistics
Three Months Ended March 31, 2019 and 2018
| Revenue (in millions) | |||||||||||
| 2019 | 2018 | % Change | |||||||||
Rate-Regulated Electric Revenues(a) | |||||||||||
| Residential | $ | 710 | $ | 717 | (1.0 | )% | |||||
| Small commercial & industrial | 360 | 385 | (6.5 | )% | |||||||
| Large commercial & industrial | 132 | 152 | (13.2 | )% | |||||||
| Public authorities & electric railroads | 13 | 14 | (7.1 | )% | |||||||
Other(b) | 217 | 230 | (5.7 | )% | |||||||
Total rate-regulated electric revenues(c) | 1,432 | 1,498 | (4.4 | )% | |||||||
Other Rate-Regulated Revenue(d) | (24 | ) | 14 | (271.4 | )% | ||||||
| Total Electric Revenue | $ | 1,408 | $ | 1,512 | (6.9 | )% | |||||
| Purchased Power | $ | 485 | $ | 605 | (19.8 | )% | |||||
| (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 revenues from transmission revenue from PJM, wholesale electric revenue and mutual assistance revenue. |
| (c) | Includes operating revenues from affiliates totaling $4 million and $14 million for the three months ended March 31, 2019 and 2018, respectively. |
| (d) | Includes alternative revenue programs and late payment charges. |
19
EXELON CORPORATION
PECO Statistics
Three Months Ended March 31, 2019 and 2018
| Electric and Natural Gas Deliveries | Revenue (in millions) | ||||||||||||||||||||||
| 2019 | 2018 | % Change | Weather- Normal % Change | 2019 | 2018 | % Change | |||||||||||||||||
| Electric (in GWhs) | |||||||||||||||||||||||
Rate-Regulated Electric Deliveries and Revenues(a) | |||||||||||||||||||||||
| Residential | 3,641 | 3,628 | 0.4 | % | 0.4 | % | $ | 409 | $ | 403 | 1.5 | % | |||||||||||
| Small commercial & industrial | 2,066 | 2,029 | 1.8 | % | 1.8 | % | 96 | 101 | (5.0 | )% | |||||||||||||
| Large commercial & industrial | 3,571 | 3,703 | (3.6 | )% | (3.6 | )% | 48 | 58 | (17.2 | )% | |||||||||||||
| Public authorities & electric railroads | 195 | 197 | (1.0 | )% | (0.9 | )% | 7 | 8 | (12.5 | )% | |||||||||||||
Other(b) | — | — | n/a | n/a | 62 | 62 | — | % | |||||||||||||||
Total rate-regulated electric revenues(c) | 9,473 | 9,557 | (0.9 | )% | (0.9 | )% | 622 | 632 | (1.6 | )% | |||||||||||||
Other Rate-Regulated Revenue(d) | (2 | ) | 2 | (200.0 | )% | ||||||||||||||||||
| Total Electric Revenue | 620 | 634 | (2.2 | )% | |||||||||||||||||||
| Natural Gas (in mmcfs) | |||||||||||||||||||||||
Rate-Regulated Gas Deliveries and Revenues(e) | |||||||||||||||||||||||
| Residential | 21,218 | 20,574 | 3.1 | % | 1.2 | % | 198 | 161 | 23.0 | % | |||||||||||||
| Small commercial & industrial | 10,644 | 10,417 | 2.2 | % | 0.1 | % | 72 | 62 | 16.1 | % | |||||||||||||
| Large commercial & industrial | 19 | 47 | (59.6 | )% | (10.8 | )% | 1 | 1 | — | % | |||||||||||||
| Transportation | 7,973 | 7,568 | 5.4 | % | 5.6 | % | 7 | 6 | 16.7 | % | |||||||||||||
Other(f) | — | — | n/a | n/a | 2 | 2 | — | % | |||||||||||||||
Total rate-regulated natural gas revenues(g) | 39,854 | 38,606 | 3.2 | % | 1.7 | % | 280 | 232 | 20.7 | % | |||||||||||||
Other Rate-Regulated Revenue(d) | — | — | n/a | ||||||||||||||||||||
| Total Natural Gas Revenues | 280 | 232 | 20.7 | % | |||||||||||||||||||
| Total Electric and Natural Gas Revenues | $ | 900 | $ | 866 | 3.9 | % | |||||||||||||||||
| Purchased Power and Fuel | $ | 331 | $ | 333 | (0.6 | )% | |||||||||||||||||
| % Change | |||||||||||||||
| Heating and Cooling Degree-Days | 2019 | 2018 | Normal | From 2018 | From Normal | ||||||||||
| Heating Degree-Days | 2,432 | 2,397 | 2,429 | 1.5 | % | 0.1 | % | ||||||||
| Cooling Degree-Days | 2 | — | 1 | 200.0 | % | 100.0 | % | ||||||||
| Number of Electric Customers | 2019 | 2018 | Number of Natural Gas Customers | 2019 | 2018 | |||||||||
| Residential | 1,485,698 | 1,474,555 | Residential | 483,560 | 478,565 | |||||||||
| Small Commercial & Industrial | 153,042 | 151,947 | Small Commercial & Industrial | 44,274 | 44,053 | |||||||||
| Large Commercial & Industrial | 3,107 | 3,113 | Large Commercial & Industrial | 1 | 4 | |||||||||
| Public Authorities & Electric Railroads | 9,638 | 9,541 | Transportation | 744 | 768 | |||||||||
| Total | 1,651,485 | 1,639,156 | Total | 528,579 | 523,390 | |||||||||
| (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 revenues from transmission revenue from PJM, wholesale electric revenue and mutual assistance revenue. |
| (c) | Includes operating revenues from affiliates totaling $1 million and $2 million for the three months ended March 31, 2019 and 2018, 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 for both the three months ended March 31, 2019 and 2018. |
20
EXELON CORPORATION
BGE Statistics
Three Months Ended March 31, 2019 and 2018
| Revenue (in millions) | ||||||||||
| 2019 | 2018 | % Change | ||||||||
Rate-Regulated Electric Revenues(a) | ||||||||||
| Residential | $ | 385 | $ | 393 | (2.0 | )% | ||||
| Small commercial & industrial | 70 | 68 | 2.9 | % | ||||||
| Large commercial & industrial | 110 | 106 | 3.8 | % | ||||||
| Public authorities & electric railroads | 7 | 7 | — | % | ||||||
Other(b) | 80 | 78 | 2.6 | % | ||||||
Total rate-regulated electric revenues(c) | 652 | 652 | — | % | ||||||
Other Rate-Regulated Revenue(d) | 6 | 6 | — | % | ||||||
| Total Electric Revenue | 658 | 658 | — | % | ||||||
Rate-Regulated Gas Revenues(e) | ||||||||||
| Residential | 219 | 224 | (2.2 | )% | ||||||
| Small commercial & industrial | 35 | 34 | 2.9 | % | ||||||
| Large commercial & industrial | 50 | 47 | 6.4 | % | ||||||
Other(f) | 4 | 27 | (85.2 | )% | ||||||
Total rate-regulated natural gas revenues(g) | 308 | 332 | (7.2 | )% | ||||||
Other Rate-Regulated Revenue(d) | 10 | (13 | ) | (176.9 | )% | |||||
| Total Natural Gas Revenues | 318 | 319 | (0.3 | )% | ||||||
| Total Electric and Natural Gas Revenues | $ | 976 | $ | 977 | (0.1 | )% | ||||
| Purchased Power and Fuel | $ | 360 | $ | 380 | (5.3 | )% | ||||
| Number of Electric Customers | 2019 | 2018 | Number of Natural Gas Customers | 2019 | 2018 | |||||||||
| Residential | 1,171,027 | 1,163,887 | Residential | 635,241 | 631,594 | |||||||||
| Small Commercial & Industrial | 113,976 | 113,675 | Small Commercial & Industrial | 38,322 | 38,443 | |||||||||
| Large Commercial & Industrial | 12,278 | 12,148 | Large Commercial & Industrial | 5,981 | 5,874 | |||||||||
| Public Authorities & Electric Railroads | 266 | 270 | Total | 679,544 | 675,911 | |||||||||
| Total | 1,297,547 | 1,289,980 | ||||||||||||
| (a) | Reflects revenues from customers purchasing electricity directly from BGE and customers purchasing electricity from a competitive electric generation supplier as all customers are assessed distribution charges. For customers purchasing electricity from BGE, revenues also reflect the cost of energy and transmission. |
| (b) | Includes revenues from transmission revenue from PJM, wholesale electric revenue and mutual assistance revenue. |
| (c) | Includes operating revenues from affiliates totaling $2 million for both the three months ended March 31, 2019 and 2018. |
| (d) | Includes alternative revenue programs and late payment charges. |
| (e) | Reflects delivery volumes and revenues from customers purchasing natural gas directly from BGE and customers purchasing natural gas from a competitive natural gas supplier as all customers are assessed distribution charges. For customers purchasing natural gas from BGE, revenue also reflects the cost of natural gas. |
| (f) | Includes revenues primarily from off-system sales. |
| (g) | Includes operating revenues from affiliates totaling $4 million for both the three months ended March 31, 2019 and 2018. |
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EXELON CORPORATION
PEPCO Statistics
Three Months Ended March 31, 2019 and 2018
| Revenue (in millions) | |||||||||||
| 2019 | 2018 | % Change | |||||||||
Rate-Regulated Electric Revenues(a) | |||||||||||
| Residential | $ | 256 | $ | 259 | (1.2 | )% | |||||
| Small commercial & industrial | 38 | 32 | 18.8 | % | |||||||
| Large commercial & industrial | 204 | 190 | 7.4 | % | |||||||
| Public authorities & electric railroads | 8 | 7 | 14.3 | % | |||||||
Other(b) | 53 | 49 | 8.2 | % | |||||||
Total rate-regulated electric revenues(c) | 559 | 537 | 4.1 | % | |||||||
Other Rate-Regulated Revenue(d) | 16 | 20 | (20.0 | )% | |||||||
| Total Electric Revenue | $ | 575 | $ | 557 | 3.2 | % | |||||
| Purchased Power | $ | 187 | $ | 182 | 2.7 | % | |||||
| Number of Electric Customers | 2019 | 2018 | ||||
| Residential | 809,845 | 797,105 | ||||
| Small Commercial & Industrial | 54,295 | 53,602 | ||||
| Large Commercial & Industrial | 22,030 | 21,718 | ||||
| Public Authorities & Electric Railroads | 153 | 146 | ||||
| Total | 886,323 | 872,571 | ||||
| (a) | Reflects revenues from customers purchasing electricity directly from Pepco and customers purchasing electricity from a competitive electric generation supplier as all customers are assessed distribution charges. For customers purchasing electricity from Pepco, revenues also reflect the cost of energy and transmission. |
| (b) | Includes revenues from transmission revenue from PJM, wholesale electric revenue and mutual assistance revenue. |
| (c) | Includes operating revenues from affiliates of $2 million in both the three months ended March 31, 2019 and 2018. |
| (d) | Includes alternative revenue programs and late payment charge revenues. |
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EXELON CORPORATION
DPL Statistics
Three Months Ended March 31, 2019 and 2018
| Electric and Natural Gas Deliveries to Delaware Customers | Revenue (a) (in millions) | ||||||||||||||||||||||
| 2019 | 2018 | % Change | Weather - Normal % Change | 2019 | 2018 | % Change | |||||||||||||||||
| Electric (in GWhs) | |||||||||||||||||||||||
Rate-Regulated Electric Deliveries and Revenues(b) | |||||||||||||||||||||||
| Residential | 851 | 869 | (2.1 | )% | (1.5 | )% | $ | 185 | $ | 191 | (3.1 | )% | |||||||||||
| Small Commercial & industrial | 321 | 330 | (2.7 | )% | (2.6 | )% | 48 | 46 | 4.3 | % | |||||||||||||
| Large Commercial & industrial | 810 | 829 | (2.3 | )% | (2.2 | )% | 24 | 23 | 4.3 | % | |||||||||||||
| Public authorities & electric railroads | 8 | 9 | (11.1 | )% | (7.3 | )% | 3 | 4 | (25.0 | )% | |||||||||||||
Other(c) | — | — | n/a | n/a | 47 | 41 | 14.6 | % | |||||||||||||||
Total rate-regulated electric revenues(d) | 1,990 | 2,037 | (2.3 | )% | (2.0 | )% | 307 | 305 | 0.7 | % | |||||||||||||
Other Rate-Regulated Revenue(e) | 3 | 1 | 200.0 | % | |||||||||||||||||||
| Total Electric Revenue | 310 | 306 | 1.3 | % | |||||||||||||||||||
| Natural Gas (in mmcfs) | |||||||||||||||||||||||
Rate-Regulated Gas Deliveries and Revenues(f) | |||||||||||||||||||||||
| Residential | 4,607 | 4,485 | 2.7 | % | 1.8 | % | $ | 44 | 47 | (6.4 | )% | ||||||||||||
| Small commercial & industrial | 2,020 | 1,878 | 7.6 | % | 6.6 | % | 19 | 18 | 5.6 | % | |||||||||||||
| Large commercial & industrial | 523 | 516 | 1.4 | % | 1.4 | % | 1 | 4 | (75.0 | )% | |||||||||||||
| Transportation | 2,218 | 2,213 | 0.2 | % | (0.2 | )% | 4 | 5 | (20.0 | )% | |||||||||||||
Other(f) | — | — | n/a | n/a | 3 | 4 | (25.0 | )% | |||||||||||||||
| Total rate-regulated natural gas revenues | 9,368 | 9,092 | 3.0 | % | 2.3 | % | 71 | 78 | (9.0 | )% | |||||||||||||
Other Rate-Regulated Revenue(g) | (1 | ) | — | (100.0 | )% | ||||||||||||||||||
| Total Natural Gas Revenues | 70 | 78 | (10.3 | )% | |||||||||||||||||||
| Total Electric and Natural Gas Revenues | $ | 380 | $ | 384 | (1.0 | )% | |||||||||||||||||
| Purchased Power and Fuel | $ | 164 | $ | 177 | (7.3 | )% | |||||||||||||||||
| Delaware Electric Service Territory | % Change | ||||||||||||||
Heating Degree-Days(h) | 2019 | 2018 | Normal | From 2018 | From Normal | ||||||||||
| Heating Degree-Days | 2,522 | 2,504 | 2,508 | 0.7 | % | 0.6 | % | ||||||||
| Delaware Natural Gas Service Territory | % Change | ||||||||||||||
| Heating Degree-Days | 2019 | 2018 | Normal | From 2018 | From Normal | ||||||||||
| Heating Degree-Days | 2,522 | 2,504 | 2,496 | 0.7 | % | 1.0 | % | ||||||||
| Number of Total Electric Customers (Maryland and Delaware) | 2019 | 2018 | Number of Delaware Gas Customers | 2019 | 2018 | |||||||||
| Residential | 464,638 | 460,863 | Residential | 124,575 | 123,062 | |||||||||
| Small Commercial & Industrial | 61,391 | 60,962 | Small Commercial & Industrial | 10,023 | 9,873 | |||||||||
| Large Commercial & Industrial | 1,400 | 1,383 | Large Commercial & Industrial | 18 | 17 | |||||||||
| Public Authorities & Electric Railroads | 620 | 625 | Transportation | 157 | 155 | |||||||||
| Total | 528,049 | 523,833 | Total | 134,773 | 133,107 | |||||||||
| (a) | Includes revenues from distribution customers in the Maryland and Delaware service territories. |
| (b) | Reflects delivery volumes and revenues from customers purchasing electricity directly from DPL and customers purchasing electricity from a competitive electric generation supplier as all customers are assessed distribution charges. For customers purchasing electricity from DPL, revenues also reflect the cost of energy and transmission. |
| (c) | Includes revenues from transmission revenue from PJM, wholesale electric revenue and mutual assistance revenue. |
| (d) | Includes operating revenues from affiliates totaling $2 million for both the three months ended March 31, 2019 and 2018. |
| (e) | Includes alternative revenue programs and late payment charges. |
| (f) | Reflects delivery volumes and revenues from customers purchasing natural gas directly from DPL and customers purchasing natural gas from a competitive natural gas supplier as all customers are assessed distribution charges. For customers purchasing natural gas from DPL, revenue also reflects the cost of natural gas. |
| (g) | Includes revenues primarily from off-system sales. |
| (h) | There were no cooling degree days in DPL's electric service territory for both the three months ended March 31, 2019 and 2018. |
23
EXELON CORPORATION
ACE Statistics
Three Months Ended March 31, 2019 and 2018
| Electric Deliveries (in GWhs) | Revenue (in millions) | ||||||||||||||||||||||
| 2019 | 2018 | % Change | Weather - Normal % Change | 2019 | 2018 | % Change | |||||||||||||||||
Rate-Regulated Electric Deliveries and Revenues(a) | |||||||||||||||||||||||
| Residential | 908 | 990 | (8.3 | )% | (8.8 | )% | $ | 138 | $ | 160 | (13.8 | )% | |||||||||||
| Small Commercial & industrial | 310 | 314 | (1.3 | )% | (1.3 | )% | 34 | 37 | (8.1 | )% | |||||||||||||
| Large Commercial & industrial | 791 | 824 | (4.0 | )% | (4.1 | )% | 39 | 46 | (15.2 | )% | |||||||||||||
| Public Authorities & Electric Railroads | 13 | 15 | (13.3 | )% | (10.6 | )% | 3 | 3 | — | % | |||||||||||||
Other(b) | — | — | n/a | n/a | 57 | 66 | (13.6 | )% | |||||||||||||||
Total rate-regulated electric revenues(c) | 2,022 | 2,143 | (5.6 | )% | (5.9 | )% | 271 | 312 | (13.1 | )% | |||||||||||||
Other Rate-Regulated Revenue(d) | 2 | (2 | ) | (200.0 | )% | ||||||||||||||||||
| Total Electric Revenue | $ | 273 | $ | 310 | (11.9 | )% | |||||||||||||||||
| Purchased Power | $ | 139 | $ | 161 | (13.7 | )% | |||||||||||||||||
| % Change | |||||||||||||||
Heating Degree-Days(e) | 2019 | 2018 | Normal | From 2018 | From Normal | ||||||||||
| Heating Degree-Days | 2,506 | 2,413 | 2,489 | 3.9 | % | 0.7 | % | ||||||||
| Number of Electric Customers | 2019 | 2018 | ||||
| Residential | 491,935 | 488,495 | ||||
| Small Commercial & Industrial | 61,377 | 61,059 | ||||
| Large Commercial & Industrial | 3,494 | 3,611 | ||||
| Public Authorities & Electric Railroads | 661 | 643 | ||||
| Total | 557,467 | 553,808 | ||||
| (a) | Reflects delivery volumes and revenues from customers purchasing electricity directly from ACE and customers purchasing electricity from a competitive electric generation supplier as all customers are assessed distribution charges. For customers purchasing electricity from ACE, revenues also reflect the cost of energy and transmission. |
| (b) | Includes revenues from transmission revenue from PJM, wholesale electric revenue and mutual assistance revenue. |
| (c) | Includes operating revenues from affiliates of $1 million in both the three months ended March 31, 2019 and 2018. |
| (d) | Includes alternative revenue programs and late payment charge revenues. |
| (e) | There were no cooling degree days in ACE's service territory for both the three months ended March 31, 2019 and 2018. |
24