Exhibit 99.1
News Release
| Contact: | Paul Adams Corporate Communications 202-637-0317 Emily Duncan Investor Relations 312-394-2345 | |
EXELON REPORTS THIRD QUARTER 2019 RESULTS
Earnings Release Highlights
| • | GAAP Net Income of $0.79 per share and Adjusted (non-GAAP) Operating Earnings of $0.92 per share for the third quarter of 2019 |
| • | Narrowing guidance range for full year 2019 Adjusted (non-GAAP) Operating Earnings from $3.00- $3.30 per share to $3.05 - $3.20 per share |
| • | Announcing additional annual cost savings of $100 million; savings of $75 million of operating and maintenance expenses and $25 million of other expenses; full run-rate savings to be achieved in 2022 |
| • | New York’s Supreme Court rejected challenges to New York’s Zero Emissions Credit (ZEC) Program |
| • | Strong utility customer operations performance - every utility achieved top quartile in Service Level and Abandon Rate |
CHICAGO (Oct. 31, 2019) — Exelon Corporation (Nasdaq: EXC) today reported its financial results for the third quarter of 2019.
“Ongoing infrastructure investment at our electric and gas companies is delivering solid financial and customer satisfaction results, while our clean generation fleet continues to achieve best-in-class reliability and operational efficiency,” said Christopher M. Crane, Exelon president and CEO. “Exelon was named to the Dow Jones Sustainability Index for the 14th consecutive year, ranking in the top 20 percent of North American companies in all industries. We continue to look for ways to meet customer expectations for a cleaner and more resilient energy grid, teaming with the Exelon Foundation to launch a new Climate Change Investment Initiative to fund startups focused on technologies to reduce emissions and advocating for state policies that will properly value nuclear and other clean energy resources.”
"Our third-quarter performance remained strong, with adjusted (non-GAAP) earnings of $0.92 cents per share exceeding our guidance range of $0.80 to $0.90 per share,” said Joseph Nigro, Exelon’s senior vice president and CFO. “We are on track to invest more than $5.4 billion at our electric and gas companies by year end to enhance reliability and resiliency. We are also announcing an additional $100 million in annual cost savings at Exelon Generation beginning in 2022, adding to the more than $900 million in companywide cost savings already announced between 2015 and 2018. We are narrowing our guidance range for full-year 2019 adjusted (non-GAAP) operating earnings from $3.00-$3.30 per share to $3.05-$3.20 per share.”
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Third Quarter 2019
Exelon's GAAP Net Income for the third quarter of 2019 increased to $0.79 per share from $0.76 per share in the third quarter of 2018. Adjusted (non-GAAP) Operating Earnings increased to $0.92 per share in the third quarter of 2019 from $0.88 per share in the third quarter of 2018. For the reconciliations of GAAP Net Income to Adjusted (non-GAAP) Operating Earnings, refer to the tables beginning on page 4.
The Adjusted (non-GAAP) Operating Earnings in the third quarter of 2019 primarily reflect higher utility earnings due to regulatory rate increases at PECO, BGE and PHI; and, at Generation, decreased nuclear outage days, increased revenue from ZECs in New York and New Jersey, and lower operating and maintenance expense, partially offset by decreased capacity prices and lower realized energy prices.
Operating Company Results1
ComEd
ComEd's third quarter of 2019 GAAP Net Income and Adjusted (non-GAAP) Operating Earnings remained relatively consistent with the third quarter of 2018. Due to revenue decoupling, ComEd's distribution earnings are not affected by actual weather or customer usage patterns.
PECO
PECO’s third quarter of 2019 GAAP Net Income increased to $140 million from $126 million in the third quarter of 2018. PECO’s Adjusted (non-GAAP) Operating Earnings for the third quarter of 2019 increased to $141 million from $127 million in the third quarter of 2018, primarily due to regulatory rate increases partially offset by unfavorable weather conditions and volume.
BGE
BGE’s third quarter of 2019 GAAP Net Income decreased to $55 million from $63 million in the third quarter of 2018. BGE’s Adjusted (non-GAAP) Operating Earnings for the third quarter of 2019 decreased to $56 million from $64 million compared with the third quarter of 2018, primarily due to an increase in various expenses, partially offset by regulatory rate increases. Due to revenue decoupling, BGE's distribution earnings are not affected by actual weather or customer usage patterns.
PHI
PHI’s third quarter of 2019 GAAP Net Income increased to $189 million from $187 million in the third quarter of 2018. PHI’s Adjusted (non-GAAP) Operating Earnings for the third quarter of 2019 increased to $209 million from $195 million in the third quarter of 2018, primarily due to regulatory rate increases (not reflecting the impact of TCJA). 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.
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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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Generation
Generation's third quarter of 2019 GAAP Net Income increased to $257 million from $234 million in the third quarter of 2018. Generation’s Adjusted (non-GAAP) Operating Earnings for the third quarter of 2019 increased to $352 million from $318 million in the third quarter of 2018, primarily due to increased revenue from ZECs in New York and New Jersey, decreased nuclear outage days, and lower operating and maintenance expense, partially offset by decreased capacity prices and lower realized energy prices.
As of Sept. 30, 2019, the percentage of expected generation hedged is 96%-99%, 84%-87% and 54%-57% for 2019, 2020 and 2021, respectively.
Recent Developments and Third Quarter Highlights
| • | Cost Management Programs: Exelon continues to be committed to managing its costs. On Oct. 31 2019, Exelon announced additional annual cost savings of approximately $100 million, at Generation, to be achieved by 2022. These actions are in response to the continuing economic challenges confronting Generation’s business, necessitating continued focus on cost management through enhanced efficiency and productivity. |
| • | Conowingo Hydroelectric Project: In connection with Generation’s pursuit of a new Federal Energy Regulatory Commission (FERC) license for the Conowingo Hydroelectric Project, on Oct. 29, 2019, Generation and Maryland Department of the Environment (MDE) entered into a settlement agreement that would resolve all outstanding issues between the parties, effective upon and subject to approval by FERC and incorporation of the terms into the new license when issued. The financial impact of this settlement, along with other anticipated and prior license commitments, would be recognized over the term of the new 50-year license and is estimated to be, on average, $11 million to $14 million per year, including capital and operating costs. The actual timing and amount of a majority of these costs are not currently fixed and will vary from year to year throughout the life of the new license. Generation cannot currently predict when FERC will issue the new license. |
| • | New York State Court Upholds New York ZECs: On Oct. 8, 2019, the New York State Court dismissed all remaining claims of plaintiffs' petition seeking to invalidate the ZEC program. The petitioners have until Nov. 11, 2019 to file a notice of appeal. |
| • | BGE Electric and Natural Gas Distribution Base Rate Case: On May 24, 2019 (as amended Oct. 4, 2019), BGE filed an application with the Maryland Public Service Commission (MDPSC) to increase its annual electric and natural gas distribution base rates by $74 million and $59 million, respectively, reflecting a requested ROE of 10.3%. On Oct. 25, 2019, BGE filed a settlement agreement with the MDPSC. The settlement provides for an increase to BGE’s annual electric and natural gas distribution rates of $18 million and $45 million, respectively. A final order from the MDPSC is expected by Dec. 2019. |
| • | Pepco Maryland Electric Distribution Base Rate Case: On Aug. 12, 2019, the MDPSC approved a settlement agreement with an effective date of Aug. 13, 2019 that provides for a net increase to Pepco's annual electric distribution rates of $10 million and reflects a ROE of 9.6%. |
| • | Nuclear Operations: Generation’s nuclear fleet, including its owned output from the Salem Generating Station and 100% of the CENG units, produced 46,215 gigawatt-hours (GWhs) in the third quarter of 2019, compared with 46,549 GWhs in the third quarter of 2018. Excluding Salem, the Exelon-operated nuclear plants at ownership achieved a 95.5% capacity factor for the third quarter of 2019, compared with 93.6% for the third quarter of 2018. The number of planned refueling outage days in the third quarter of 2019 totaled 15, compared with 36 in the third quarter of 2018. There were |
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15 non-refueling outage days in the third quarter of 2019, compared with 12 in the third quarter of 2018.
| • | Fossil and Renewables Operations: The Dispatch Match rate for Generation’s fossil and hydro fleet was 97.5% in the third quarter of 2019, compared with 95.8% in the third quarter of 2018. Energy Capture for the wind and solar fleet was 96.5% in the third quarter of 2019, compared with 95.7% in the third quarter of 2018. |
| • | Financing Activities: |
| ◦ | On Sept. 10, 2019, PECO issued $325 million aggregate principal amount of its First and Refunding Mortgage Bonds, 3.00% Series due Sept. 15, 2049. PECO used the proceeds to satisfy short-term borrowings and for general corporate purposes. |
| ◦ | On Sept. 12, 2019, BGE issued $400 million aggregate principal amount of its 3.20% senior notes due Sept. 15, 2049. BGE used the proceeds to repay outstanding commercial paper obligations and for general corporate purposes. |
GAAP/Adjusted (non-GAAP) Operating Earnings Reconciliation
Adjusted (non-GAAP) Operating Earnings for the third 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 | $ | 0.79 | $ | 772 | $ | 200 | $ | 140 | $ | 55 | $ | 189 | $ | 257 | |||||||
| Mark-to-Market Impact of Economic Hedging Activities (net of taxes of $2 and $4, respectively) | — | (2 | ) | — | — | — | — | (10 | ) | ||||||||||||
| Unrealized Gains Related to Nuclear Decommissioning Trust (NDT) Fund Investments (net of taxes of $34) | (0.04 | ) | (39 | ) | — | — | — | — | (39 | ) | |||||||||||
| Asset Impairments (net of taxes of $53) | 0.12 | 113 | — | — | — | — | 113 | ||||||||||||||
| Plant Retirements and Divestitures (net of taxes of $40) | 0.12 | 119 | — | — | — | — | 119 | ||||||||||||||
| Cost Management Program (net of taxes of $3, $0, $0, $0 and $3, respectively) | 0.01 | 14 | — | 1 | 1 | 2 | 10 | ||||||||||||||
| Asset Retirement Obligation (net of taxes of $9) | (0.09 | ) | (84 | ) | — | — | — | — | (84 | ) | |||||||||||
| Change in Environmental Liabilities (net of taxes of $5, $5 and $0) | 0.02 | 18 | — | — | — | 17 | 1 | ||||||||||||||
| Income Tax-Related Adjustments (entire amount represents tax expense) | 0.01 | 13 | — | — | — | 1 | 9 | ||||||||||||||
| Noncontrolling Interests (net of taxes of $3) | (0.02 | ) | (24 | ) | — | — | — | — | (24 | ) | |||||||||||
| 2019 Adjusted (non-GAAP) Operating Earnings | $ | 0.92 | $ | 900 | $ | 200 | $ | 141 | $ | 56 | $ | 209 | $ | 352 | |||||||
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Adjusted (non-GAAP) Operating Earnings for the third 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 | $ | 0.76 | $ | 733 | $ | 193 | $ | 126 | $ | 63 | $ | 187 | $ | 234 | |||||||
| Mark-to-Market Impact of Economic Hedging Activities (net of taxes of $20 and $22) | (0.06 | ) | (55 | ) | — | — | — | — | (65 | ) | |||||||||||
| Unrealized Gains Related to NDT Fund Investments (net of taxes of $4) | (0.06 | ) | (53 | ) | — | — | — | — | (53 | ) | |||||||||||
| Asset Impairments (net of taxes of $2) | 0.01 | 6 | — | — | — | — | 6 | ||||||||||||||
| Plant Retirements and Divestitures (net of taxes of $70 and $68, respectively) | 0.21 | 202 | — | — | — | — | 204 | ||||||||||||||
| Cost Management Program (net of taxes of $4, $0, $0, $1 and $3, respectively) | 0.01 | 13 | — | 1 | 1 | 1 | 10 | ||||||||||||||
| Asset Retirement Obligation (net of taxes of $6) | 0.02 | 16 | — | — | — | 16 | — | ||||||||||||||
| Change in Environmental Liabilities (net of taxes of $3) | (0.01 | ) | (9 | ) | — | — | — | — | (9 | ) | |||||||||||
| Income Tax-Related Adjustments (entire amount represents tax expense) | (0.02 | ) | (18 | ) | — | — | — | (9 | ) | (30 | ) | ||||||||||
| Noncontrolling Interests (net of taxes of $4) | 0.02 | 21 | — | — | — | — | 21 | ||||||||||||||
| 2018 Adjusted (non-GAAP) Operating Earnings | $ | 0.88 | $ | 856 | $ | 193 | $ | 127 | $ | 64 | $ | 195 | $ | 318 | |||||||
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% to 29.0%. 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 47.1% and 7.7% for the three months ended Sept. 30, 2019 and 2018, respectively.
Webcast Information
Exelon will discuss third 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.
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About Exelon
Exelon Corporation (Nasdaq: 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 31,000 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, 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 Oct. 31, 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) 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 22, Commitments and Contingencies; (2) the Registrants' Third Quarter 2019 Quarterly Report on Form 10-Q (to be filed on Oct. 31, 2019) 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 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 Statement of Operations | |
| Consolidated Balance Sheets | |
| Consolidated Statements of Cash Flows | |
| Reconciliation of GAAP Net Income to Adjusted (non-GAAP) Operating Earnings and Analysis of Earnings | |
| GAAP Consolidated Statements of Operations and Adjusted (non-GAAP) Operating Earnings Reconciling Adjustments | |
| Exelon | |
| ComEd | |
| PECO | |
| BGE | |
| PHI | |
| Generation | |
| Other | |
| Statistics | |
| ComEd | |
| PECO | |
| BGE | |
| Pepco | |
| DPL | |
| ACE | |
| Generation | |
Consolidating Statements of Operations
(unaudited)
(in millions)
| ComEd | PECO | BGE | PHI | Generation | Other (a) | Exelon Consolidated | ||||||||||||||||||||||
| Three Months Ended September 30, 2019 | ||||||||||||||||||||||||||||
| Operating revenues | $ | 1,583 | $ | 778 | $ | 703 | $ | 1,380 | $ | 4,774 | $ | (289 | ) | $ | 8,929 | |||||||||||||
| Operating expenses | ||||||||||||||||||||||||||||
| Purchased power and fuel | 577 | 246 | 235 | 519 | 2,651 | (276 | ) | 3,952 | ||||||||||||||||||||
| Operating and maintenance | 340 | 219 | 196 | 290 | 1,087 | (60 | ) | 2,072 | ||||||||||||||||||||
| Depreciation and amortization | 259 | 83 | 116 | 193 | 407 | 25 | 1,083 | |||||||||||||||||||||
| Taxes other than income | 80 | 47 | 65 | 122 | 129 | 9 | 452 | |||||||||||||||||||||
| Total operating expenses | 1,256 | 595 | 612 | 1,124 | 4,274 | (302 | ) | 7,559 | ||||||||||||||||||||
| Gain (loss) on sales of assets and businesses | 1 | — | — | — | (18 | ) | — | (17 | ) | |||||||||||||||||||
| Operating income | 328 | 183 | 91 | 256 | 482 | 13 | 1,353 | |||||||||||||||||||||
| Other income and (deductions) | ||||||||||||||||||||||||||||
| Interest expense, net | (91 | ) | (33 | ) | (31 | ) | (66 | ) | (109 | ) | (79 | ) | (409 | ) | ||||||||||||||
| Other, net | 8 | 4 | 7 | 13 | 128 | (2 | ) | 158 | ||||||||||||||||||||
| Total other income and (deductions) | (83 | ) | (29 | ) | (24 | ) | (53 | ) | 19 | (81 | ) | (251 | ) | |||||||||||||||
| Income (loss) before income taxes | 245 | 154 | 67 | 203 | 501 | (68 | ) | 1,102 | ||||||||||||||||||||
| Income taxes | 45 | 14 | 12 | 14 | 87 | — | 172 | |||||||||||||||||||||
| Equity in losses of unconsolidated affiliates | — | — | — | — | (170 | ) | — | (170 | ) | |||||||||||||||||||
| Net income (loss) | 200 | 140 | 55 | 189 | 244 | (68 | ) | 760 | ||||||||||||||||||||
| Net income (loss) attributable to noncontrolling interests | — | — | — | — | (13 | ) | 1 | (12 | ) | |||||||||||||||||||
| Net income (loss) attributable to common shareholders | $ | 200 | $ | 140 | $ | 55 | $ | 189 | $ | 257 | $ | (69 | ) | $ | 772 | |||||||||||||
| Three Months Ended September 30, 2018 | ||||||||||||||||||||||||||||
| Operating revenues | $ | 1,598 | $ | 757 | $ | 731 | $ | 1,361 | $ | 5,278 | $ | (322 | ) | $ | 9,403 | |||||||||||||
| Operating expenses | ||||||||||||||||||||||||||||
| Purchased power and fuel | 619 | 263 | 272 | 509 | 2,980 | (311 | ) | 4,332 | ||||||||||||||||||||
| Operating and maintenance | 337 | 219 | 182 | 292 | 1,370 | (54 | ) | 2,346 | ||||||||||||||||||||
| Depreciation and amortization | 237 | 75 | 110 | 192 | 468 | 23 | 1,105 | |||||||||||||||||||||
| Taxes other than income | 82 | 46 | 64 | 123 | 143 | 11 | 469 | |||||||||||||||||||||
| Total operating expenses | 1,275 | 603 | 628 | 1,116 | 4,961 | (331 | ) | 8,252 | ||||||||||||||||||||
| (Loss) gain on sales of assets and businesses | — | — | — | — | (6 | ) | 1 | (5 | ) | |||||||||||||||||||
| Operating income | 323 | 154 | 103 | 245 | 311 | 10 | 1,146 | |||||||||||||||||||||
| Other income and (deductions) | ||||||||||||||||||||||||||||
| Interest expense, net | (85 | ) | (32 | ) | (27 | ) | (65 | ) | (101 | ) | (83 | ) | (393 | ) | ||||||||||||||
| Other, net | 7 | 2 | 5 | 11 | 179 | (10 | ) | 194 | ||||||||||||||||||||
| Total other income and (deductions) | (78 | ) | (30 | ) | (22 | ) | (54 | ) | 78 | (93 | ) | (199 | ) | |||||||||||||||
| Income (loss) before income taxes | 245 | 124 | 81 | 191 | 389 | (83 | ) | 947 | ||||||||||||||||||||
| Income taxes | 52 | (2 | ) | 18 | 4 | 78 | (13 | ) | 137 | |||||||||||||||||||
| Equity in losses of unconsolidated affiliates | — | — | — | — | (11 | ) | 1 | (10 | ) | |||||||||||||||||||
| Net income (loss) | 193 | 126 | 63 | 187 | 300 | (69 | ) | 800 | ||||||||||||||||||||
| Net income attributable to noncontrolling interests | — | — | — | — | 66 | 1 | 67 | |||||||||||||||||||||
| Net income (loss) attributable to common shareholders | $ | 193 | $ | 126 | $ | 63 | $ | 187 | $ | 234 | $ | (70 | ) | $ | 733 | |||||||||||||
| Change in Net Income from 2018 to 2019 | $ | 7 | $ | 14 | $ | (8 | ) | $ | 2 | $ | 23 | $ | 1 | $ | 39 | |||||||||||||
| (a) | Other primarily includes eliminating and consolidating adjustments, Exelon’s corporate operations, shared service entities and other financing and investment activities. |
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Consolidating Statements of Operations
(unaudited)
(in millions)
| ComEd | PECO | BGE | PHI | Generation | Other (a) | Exelon Consolidated | ||||||||||||||||||||||
| Nine Months Ended September 30, 2019 | ||||||||||||||||||||||||||||
| Operating revenues | $ | 4,342 | $ | 2,333 | $ | 2,327 | $ | 3,700 | $ | 14,280 | $ | (886 | ) | $ | 26,096 | |||||||||||||
| Operating expenses | ||||||||||||||||||||||||||||
| Purchased power and fuel | 1,469 | 767 | 804 | 1,391 | 8,148 | (848 | ) | 11,731 | ||||||||||||||||||||
| Operating and maintenance | 967 | 643 | 569 | 811 | 3,570 | (141 | ) | 6,419 | ||||||||||||||||||||
| Depreciation and amortization | 767 | 247 | 368 | 562 | 1,221 | 72 | 3,237 | |||||||||||||||||||||
| Taxes other than income | 228 | 126 | 195 | 342 | 394 | 31 | 1,316 | |||||||||||||||||||||
| Total operating expenses | 3,431 | 1,783 | 1,936 | 3,106 | 13,333 | (886 | ) | 22,703 | ||||||||||||||||||||
| Gain on sales of assets and businesses | 4 | — | — | — | 15 | — | 19 | |||||||||||||||||||||
| Operating income | 915 | 550 | 391 | 594 | 962 | — | 3,412 | |||||||||||||||||||||
| Other income and (deductions) | ||||||||||||||||||||||||||||
| Interest expense, net | (268 | ) | (100 | ) | (89 | ) | (197 | ) | (336 | ) | (231 | ) | (1,221 | ) | ||||||||||||||
| Other, net | 27 | 11 | 18 | 39 | 729 | 13 | 837 | |||||||||||||||||||||
| Total other income and (deductions) | (241 | ) | (89 | ) | (71 | ) | (158 | ) | 393 | (218 | ) | (384 | ) | |||||||||||||||
| Income (loss) before income taxes | 674 | 461 | 320 | 436 | 1,355 | (218 | ) | 3,028 | ||||||||||||||||||||
| Income taxes | 130 | 51 | 59 | 25 | 388 | (27 | ) | 626 | ||||||||||||||||||||
| Equity in earnings (losses) of unconsolidated affiliates | — | — | — | 1 | (183 | ) | — | (182 | ) | |||||||||||||||||||
| Net income (loss) | 544 | 410 | 261 | 412 | 784 | (191 | ) | 2,220 | ||||||||||||||||||||
| Net income attributable to noncontrolling interests | — | — | — | — | 56 | — | 56 | |||||||||||||||||||||
| Net income (loss) attributable to common shareholders | $ | 544 | $ | 410 | $ | 261 | $ | 412 | $ | 728 | $ | (191 | ) | $ | 2,164 | |||||||||||||
| Nine Months Ended September 30, 2018 | ||||||||||||||||||||||||||||
| Operating revenues | $ | 4,508 | $ | 2,275 | $ | 2,369 | $ | 3,688 | $ | 15,368 | $ | (1,038 | ) | $ | 27,170 | |||||||||||||
| Operating expenses | ||||||||||||||||||||||||||||
| Purchased power and fuel | 1,702 | 818 | 881 | 1,410 | 8,552 | (989 | ) | 12,374 | ||||||||||||||||||||
| Operating and maintenance | 974 | 686 | 578 | 857 | 4,126 | (185 | ) | 7,036 | ||||||||||||||||||||
| Depreciation and amortization | 696 | 224 | 358 | 555 | 1,383 | 68 | 3,284 | |||||||||||||||||||||
| Taxes other than income | 238 | 125 | 188 | 343 | 414 | 34 | 1,342 | |||||||||||||||||||||
| Total operating expenses | 3,610 | 1,853 | 2,005 | 3,165 | 14,475 | (1,072 | ) | 24,036 | ||||||||||||||||||||
| Gain on sales of assets and businesses | 5 | 1 | 1 | — | 48 | — | 55 | |||||||||||||||||||||
| Operating income | 903 | 423 | 365 | 523 | 941 | 34 | 3,189 | |||||||||||||||||||||
| Other income and (deductions) | ||||||||||||||||||||||||||||
| Interest expense, net | (261 | ) | (96 | ) | (78 | ) | (193 | ) | (305 | ) | (205 | ) | (1,138 | ) | ||||||||||||||
| Other, net | 21 | 4 | 14 | 33 | 164 | (24 | ) | 212 | ||||||||||||||||||||
| Total other income and (deductions) | (240 | ) | (92 | ) | (64 | ) | (160 | ) | (141 | ) | (229 | ) | (926 | ) | ||||||||||||||
| Income (loss) before income taxes | 663 | 331 | 301 | 363 | 800 | (195 | ) | 2,263 | ||||||||||||||||||||
| Income taxes | 140 | (5 | ) | 59 | 28 | 110 | (70 | ) | 262 | |||||||||||||||||||
| Equity in earnings (losses) of unconsolidated affiliates | — | — | — | 1 | (23 | ) | — | (22 | ) | |||||||||||||||||||
| Net income (loss) | 523 | 336 | 242 | 336 | 667 | (125 | ) | 1,979 | ||||||||||||||||||||
| Net income attributable to noncontrolling interests | — | — | — | — | 120 | 1 | 121 | |||||||||||||||||||||
| Net income (loss) attributable to common shareholders | $ | 523 | $ | 336 | $ | 242 | $ | 336 | $ | 547 | $ | (126 | ) | $ | 1,858 | |||||||||||||
| Change in Net Income from 2018 to 2019 | $ | 21 | $ | 74 | $ | 19 | $ | 76 | $ | 181 | $ | (65 | ) | $ | 306 | |||||||||||||
| (a) | Other primarily includes eliminating and consolidating adjustments, Exelon’s corporate operations, shared service entities and other financing and investment activities. |
2
Exelon
Consolidated Balance Sheets
(unaudited)
(in millions)
| September 30, 2019 | December 31, 2018 | |||||||
| Assets | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 1,683 | $ | 1,349 | ||||
| Restricted cash and cash equivalents | 309 | 247 | ||||||
| Accounts receivable, net | ||||||||
| Customer | 4,188 | 4,607 | ||||||
| Other | 1,085 | 1,256 | ||||||
| Mark-to-market derivative assets | 601 | 804 | ||||||
| Unamortized energy contract assets | 49 | 48 | ||||||
| Inventories, net | ||||||||
| Fossil fuel and emission allowances | 325 | 334 | ||||||
| Materials and supplies | 1,458 | 1,351 | ||||||
| Regulatory assets | 1,194 | 1,222 | ||||||
| Assets held for sale | 18 | 904 | ||||||
| Other | 1,296 | 1,238 | ||||||
| Total current assets | 12,206 | 13,360 | ||||||
| Property, plant and equipment, net | 78,593 | 76,707 | ||||||
| Deferred debits and other assets | ||||||||
| Regulatory assets | 8,122 | 8,237 | ||||||
| Nuclear decommissioning trust funds | 12,706 | 11,661 | ||||||
| Investments | 471 | 625 | ||||||
| Goodwill | 6,677 | 6,677 | ||||||
| Mark-to-market derivative assets | 487 | 452 | ||||||
| Unamortized energy contract assets | 353 | 372 | ||||||
| Other | 3,123 | 1,575 | ||||||
| Total deferred debits and other assets | 31,939 | 29,599 | ||||||
| Total assets | $ | 122,738 | $ | 119,666 | ||||
3
| September 30, 2019 | December 31, 2018 | |||||||
| Liabilities and shareholders’ equity | ||||||||
| Current liabilities | ||||||||
| Short-term borrowings | $ | 1,019 | $ | 714 | ||||
| Long-term debt due within one year | 4,248 | 1,349 | ||||||
| Accounts payable | 3,348 | 3,800 | ||||||
| Accrued expenses | 1,877 | 2,112 | ||||||
| Payables to affiliates | 5 | 5 | ||||||
| Regulatory liabilities | 400 | 644 | ||||||
| Mark-to-market derivative liabilities | 239 | 475 | ||||||
| Unamortized energy contract liabilities | 138 | 149 | ||||||
| Renewable energy credit obligation | 375 | 344 | ||||||
| Liabilities held for sale | 11 | 777 | ||||||
| Other | 1,425 | 1,035 | ||||||
| Total current liabilities | 13,085 | 11,404 | ||||||
| Long-term debt | 32,056 | 34,075 | ||||||
| Long-term debt to financing trusts | 390 | 390 | ||||||
| Deferred credits and other liabilities | ||||||||
| Deferred income taxes and unamortized investment tax credits | 12,133 | 11,330 | ||||||
| Asset retirement obligations | 10,089 | 9,679 | ||||||
| Pension obligations | 3,712 | 3,988 | ||||||
| Non-pension postretirement benefit obligations | 2,029 | 1,928 | ||||||
| Spent nuclear fuel obligation | 1,193 | 1,171 | ||||||
| Regulatory liabilities | 9,792 | 9,559 | ||||||
| Mark-to-market derivative liabilities | 416 | 479 | ||||||
| Unamortized energy contract liabilities | 368 | 463 | ||||||
| Other | 3,123 | 2,130 | ||||||
| Total deferred credits and other liabilities | 42,855 | 40,727 | ||||||
| Total liabilities | 88,386 | 86,596 | ||||||
| Commitments and contingencies | ||||||||
| Shareholders’ equity | ||||||||
| Common stock | 19,238 | 19,116 | ||||||
| Treasury stock, at cost | (123 | ) | (123 | ) | ||||
| Retained earnings | 15,871 | 14,766 | ||||||
| Accumulated other comprehensive loss, net | (2,963 | ) | (2,995 | ) | ||||
| Total shareholders’ equity | 32,023 | 30,764 | ||||||
| Noncontrolling interests | 2,329 | 2,306 | ||||||
| Total equity | 34,352 | 33,070 | ||||||
| Total liabilities and shareholders’ equity | $ | 122,738 | $ | 119,666 | ||||
4
Exelon
Consolidated Statements of Cash Flows
(unaudited)
(in millions)
| Nine Months Ended September 30, | ||||||||
| 2019 | 2018 | |||||||
| Cash flows from operating activities | ||||||||
| Net income | $ | 2,220 | $ | 1,979 | ||||
| Adjustments to reconcile net income to net cash flows provided by operating activities: | ||||||||
| Depreciation, amortization and accretion, including nuclear fuel and energy contract amortization | 4,393 | 4,511 | ||||||
| Asset impairments | 174 | 49 | ||||||
| Gain on sales of assets and businesses | (15 | ) | (55 | ) | ||||
| Deferred income taxes and amortization of investment tax credits | 412 | 97 | ||||||
| Net fair value changes related to derivatives | 96 | 67 | ||||||
| Net realized and unrealized (gains) losses on NDT funds | (467 | ) | (21 | ) | ||||
| Other non-cash operating activities | 460 | 804 | ||||||
| Changes in assets and liabilities: | ||||||||
| Accounts receivable | 445 | (167 | ) | |||||
| Inventories | (94 | ) | (24 | ) | ||||
| Accounts payable and accrued expenses | (671 | ) | 84 | |||||
| Option premiums received (paid), net | 13 | (36 | ) | |||||
| Collateral (posted) received, net | (254 | ) | 222 | |||||
| Income taxes | 143 | 166 | ||||||
| Pension and non-pension postretirement benefit contributions | (377 | ) | (362 | ) | ||||
| Other assets and liabilities | (1,079 | ) | (639 | ) | ||||
| Net cash flows provided by operating activities | 5,399 | 6,675 | ||||||
| Cash flows from investing activities | ||||||||
| Capital expenditures | (5,259 | ) | (5,497 | ) | ||||
| Proceeds from NDT fund sales | 8,443 | 6,379 | ||||||
| Investment in NDT funds | (8,437 | ) | (6,553 | ) | ||||
| Acquisition of assets and businesses, net | — | (57 | ) | |||||
| Proceeds from sales of assets and businesses | 17 | 90 | ||||||
| Other investing activities | 21 | 29 | ||||||
| Net cash flows used in investing activities | (5,215 | ) | (5,609 | ) | ||||
| Cash flows from financing activities | ||||||||
| Changes in short-term borrowings | 430 | (218 | ) | |||||
| Proceeds from short-term borrowings with maturities greater than 90 days | — | 126 | ||||||
| Repayments on short-term borrowings with maturities greater than 90 days | (125 | ) | (1 | ) | ||||
| Issuance of long-term debt | 1,576 | 2,664 | ||||||
| Retirement of long-term debt | (644 | ) | (1,480 | ) | ||||
| Dividends paid on common stock | (1,055 | ) | (999 | ) | ||||
| Proceeds from employee stock plans | 94 | 67 | ||||||
| Other financing activities | (63 | ) | (94 | ) | ||||
| Net cash flows provided by financing activities | 213 | 65 | ||||||
| Increase in cash, cash equivalents and restricted cash | 397 | 1,131 | ||||||
| Cash, cash equivalents and restricted cash at beginning of period | 1,781 | 1,190 | ||||||
| Cash, cash equivalents and restricted cash at end of period | $ | 2,178 | $ | 2,321 | ||||
5
Exelon
Reconciliation of GAAP Net Income to Adjusted (non-GAAP) Operating Earnings and Analysis of Earnings
Three Months Ended September 30, 2019 and 2018
(unaudited)
(in millions, except per share data)
| Exelon Earnings per Diluted Share | ComEd | PECO | BGE | PHI | Generation | Other (a) | Exelon | |||||||||||||||||||||||||
| 2018 GAAP Net Income (Loss) | $ | 0.76 | $ | 193 | $ | 126 | $ | 63 | $ | 187 | $ | 234 | $ | (70 | ) | $ | 733 | |||||||||||||||
| Mark-to-Market Impact of Economic Hedging Activities (net of taxes of $22, $2 and $20, respectively) | (0.06 | ) | — | — | — | — | (65 | ) | 10 | (55 | ) | |||||||||||||||||||||
| Unrealized Gains Related to NDT Fund Investments (net of taxes of $4) (1) | (0.06 | ) | — | — | — | — | (53 | ) | — | (53 | ) | |||||||||||||||||||||
| Asset Impairments (net of taxes of $2) | 0.01 | — | — | — | — | 6 | — | 6 | ||||||||||||||||||||||||
| Plant Retirements and Divestitures (net of taxes of $68, $2 and $70) (2) | 0.21 | — | — | — | — | 204 | (2 | ) | 202 | |||||||||||||||||||||||
| Cost Management Program (net of taxes of $0, $0, $1, $3 and $4, respectively) (3) | 0.01 | — | 1 | 1 | 1 | 10 | — | 13 | ||||||||||||||||||||||||
| Asset Retirement Obligation (net of taxes of $6) (4) | 0.02 | — | — | — | 16 | — | — | 16 | ||||||||||||||||||||||||
| Change in Environmental Liabilities (net of taxes of $3) | (0.01 | ) | — | — | — | — | (9 | ) | — | (9 | ) | |||||||||||||||||||||
| Income Tax-Related Adjustments (entire amount represents tax expense) (5) | (0.02 | ) | — | — | — | (9 | ) | (30 | ) | 21 | (18 | ) | ||||||||||||||||||||
| Noncontrolling Interests (net of taxes of $4) (6) | 0.02 | — | — | — | — | 21 | — | 21 | ||||||||||||||||||||||||
| 2018 Adjusted (non-GAAP) Operating Earnings (Loss) | 0.88 | 193 | 127 | 64 | 195 | 318 | (41 | ) | 856 | |||||||||||||||||||||||
| Year Over Year Effects on Adjusted (non-GAAP) Operating Earnings: | ||||||||||||||||||||||||||||||||
| ComEd, PECO, BGE and PHI Margins: | ||||||||||||||||||||||||||||||||
| Weather | (0.01 | ) | — | (b) | (3 | ) | — | (b) | (3 | ) | (b) | — | — | (6 | ) | |||||||||||||||||
| Load | (0.01 | ) | — | (b) | (4 | ) | — | (b) | (1 | ) | (b) | — | — | (5 | ) | |||||||||||||||||
| Other Energy Delivery (8) | 0.07 | 19 | (c) | 34 | (c) | 7 | (c) | 10 | (c) | — | — | 70 | ||||||||||||||||||||
| Generation Energy Margins, Excluding Mark-to-Market: | ||||||||||||||||||||||||||||||||
| Nuclear Volume (9) | (0.01 | ) | — | — | — | — | (5 | ) | — | (5 | ) | |||||||||||||||||||||
| Nuclear Fuel Cost | 0.01 | — | — | — | — | 7 | — | 7 | ||||||||||||||||||||||||
| Capacity Pricing (10) | (0.12 | ) | — | — | — | — | (120 | ) | — | (120 | ) | |||||||||||||||||||||
| Zero Emission Credit Revenue (11) | 0.03 | — | — | — | — | 33 | — | 33 | ||||||||||||||||||||||||
| Market and Portfolio Conditions (12) | (0.01 | ) | — | — | — | — | (14 | ) | — | (14 | ) | |||||||||||||||||||||
| Operating and Maintenance Expense: | ||||||||||||||||||||||||||||||||
| Labor, Contracting and Materials (13) | 0.06 | — | 4 | (9 | ) | 6 | 57 | — | 58 | |||||||||||||||||||||||
| Planned Nuclear Refueling Outages (14) | 0.03 | — | — | — | — | 25 | — | 25 | ||||||||||||||||||||||||
| Pension and Non-Pension Postretirement Benefits (15) | 0.01 | 6 | 1 | — | (4 | ) | 8 | 3 | 14 | |||||||||||||||||||||||
| Other Operating and Maintenance (16) | 0.01 | (8 | ) | (4 | ) | (1 | ) | — | 19 | (1 | ) | 5 | ||||||||||||||||||||
| Depreciation and Amortization Expense (17) | (0.03 | ) | (16 | ) | (6 | ) | (4 | ) | (1 | ) | 3 | (1 | ) | (25 | ) | |||||||||||||||||
| Interest Expense, Net | — | (3 | ) | — | (2 | ) | — | 2 | — | (3 | ) | |||||||||||||||||||||
| Income Taxes (18) | — | 8 | (8 | ) | 1 | 5 | 16 | (19 | ) | 3 | ||||||||||||||||||||||
| Noncontrolling Interests (19) | 0.01 | — | — | — | — | 9 | — | 9 | ||||||||||||||||||||||||
| Other | — | 1 | — | — | 2 | (6 | ) | 1 | (2 | ) | ||||||||||||||||||||||
| Total Year Over Year Effects on Adjusted (non-GAAP) Operating Earnings | 0.04 | 7 | 14 | (8 | ) | 14 | 34 | (17 | ) | 44 | ||||||||||||||||||||||
| 2019 GAAP Net Income (Loss) | 0.79 | 200 | 140 | 55 | 189 | 257 | (69 | ) | 772 | |||||||||||||||||||||||
| Mark-to-Market Impact of Economic Hedging Activities (net of taxes of $4, $2 and $2, respectively) | — | — | — | — | — | (10 | ) | 8 | (2 | ) | ||||||||||||||||||||||
| Unrealized Gains Related to NDT Fund Investments (net of taxes of $34) (1) | (0.04 | ) | — | — | — | — | (39 | ) | — | (39 | ) | |||||||||||||||||||||
| Asset Impairments (net of taxes of $53) (7) | 0.12 | — | — | — | — | 113 | — | 113 | ||||||||||||||||||||||||
| Plant Retirements and Divestitures (net of taxes of $40) (2) | 0.12 | — | — | — | — | 119 | — | 119 | ||||||||||||||||||||||||
| Cost Management Program (net of taxes of $0, $0, $0, $3 and $3, respectively) (3) | 0.01 | — | 1 | 1 | 2 | 10 | — | 14 | ||||||||||||||||||||||||
| Asset Retirement Obligation (net of taxes of $9) (4) | (0.09 | ) | — | — | — | — | (84 | ) | — | (84 | ) | |||||||||||||||||||||
| Change in Environmental Liabilities (net of taxes of $5, $0 and $5, respectively) | 0.02 | — | — | — | 17 | 1 | — | 18 | ||||||||||||||||||||||||
| Income Tax-Related Adjustments (entire amount represents tax expense) (5) | 0.01 | — | — | — | 1 | 9 | 3 | 13 | ||||||||||||||||||||||||
| Noncontrolling Interests (net of taxes of $3) (6) | (0.02 | ) | — | — | — | — | (24 | ) | — | (24 | ) | |||||||||||||||||||||
| 2019 Adjusted (non-GAAP) Operating Earnings (Loss) | $ | 0.92 | $ | 200 | $ | 141 | $ | 56 | $ | 209 | $ | 352 | $ | (58 | ) | $ | 900 | |||||||||||||||
6
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% to 29.0%. 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 47.1% and 7.7% for the three months ended September 30, 2019 and 2018, respectively.
| (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 and DPL Maryland, 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, 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 expense associated with Generation's decision to early retire the Oyster Creek and Three Mile Island nuclear facilities and a charge associated with a remeasurement of the Oyster Creek ARO. In 2019, primarily reflects accelerated depreciation and amortization expenses associated with the early retirement of the TMI nuclear facility and certain fossil sites, a charge associated with a remeasurement of the TMI ARO and the loss on sale of Oyster Creek to Holtec. |
| (3) | Primarily represents reorganization costs related to cost management programs. |
| (4) | In 2018, reflects an increase at Pepco related primarily to asbestos identified at its Buzzard Point property. In 2019, reflects a benefit related to Generation's annual nuclear ARO update for non-regulatory units. |
| (5) | In 2018, reflects an adjustment to the remeasurement of deferred income taxes as a result of the TCJA. In 2019, primarily reflects the adjustment to deferred income taxes due to changes in forecasted apportionment. |
| (6) | Represents elimination from Generation’s results of the noncontrolling interests related to certain exclusion items. In 2018, primarily related to the impact of unrealized gains on NDT fund investments for CENG units. In 2019, primarily related to the impact of the impairment of equity investments in distributed energy companies, partially offset by the impact of Generation's annual nuclear ARO update and unrealized gains on NDT fund investments for CENG units. |
| (7) | In 2019, primarily reflects the impairment of equity method investments in certain distributed energy companies. The impact of such impairment net of noncontrolling interest is $0.02. |
| (8) | For ComEd, reflects increased electric distribution, energy efficiency and transmission revenues (due to higher rate base and fully recoverable costs, partially offset by lower electric distribution ROE due to decreased treasury rates). For PECO, BGE, and PHI, primarily 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. |
| (9) | Primarily reflects the permanent cease of generation operations at Oyster Creek in September 2018, partially offset by a decrease in nuclear outage days. |
| (10) | Reflects decreased capacity prices in the Mid-Atlantic, Midwest, New York, and Other power regions. |
| (11) | Primarily reflects an increase in New York ZEC prices and the approval of the New Jersey ZEC Program in the second quarter of 2019. |
| (12) | Primarily reflects lower realized energy prices. |
| (13) | For Generation, primarily reflects decreased costs related to the permanent cease of generation operations at Oyster Creek and lower labor costs resulting from previous cost management programs. |
| (14) | Primarily reflects a decrease in the number of nuclear outage days in 2019, excluding Salem. |
| (15) | 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. |
| (16) | For Generation, primarily reflects primarily reflects decreased costs related to the permanent cease of generation operations at Oyster Creek. |
| (17) | 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 partially offset by decreased regulatory asset amortization. |
| (18) | For Generation, primarily reflects renewable tax credits and one-time adjustments. For PECO, primarily reflects decreased 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. |
| (19) | Reflects elimination from Generation’s results of activity attributable to noncontrolling interests, primarily for CENG. |
7
Exelon
Reconciliation of GAAP Net Income to Adjusted (non-GAAP) Operating Earnings and Analysis of Earnings
Nine Months Ended September 30, 2019 and 2018
(unaudited)
(in millions, except per share data)
| Exelon Earnings per Diluted Share | ComEd | PECO | BGE | PHI | Generation | Other (a) | Exelon | |||||||||||||||||||||||||
| 2018 GAAP Net Income (Loss) | $ | 1.92 | $ | 523 | $ | 336 | $ | 242 | $ | 336 | $ | 547 | $ | (126 | ) | $ | 1,858 | |||||||||||||||
| Mark-to-Market Impact of Economic Hedging Activities (net of taxes of $23, $3 and $26, respectively) | 0.08 | — | — | — | — | 65 | 9 | 74 | ||||||||||||||||||||||||
| Unrealized Losses Related to NDT Fund Investments (net of taxes of $118) (1) | 0.10 | — | — | — | — | 94 | — | 94 | ||||||||||||||||||||||||
| PHI Merger and Integration Costs (net of taxes of $0, $1, and $1, respectively) | — | — | — | 1 | — | 4 | — | 5 | ||||||||||||||||||||||||
| Asset Impairments (net of taxes of $13) (2) | 0.04 | — | — | — | — | 36 | — | 36 | ||||||||||||||||||||||||
| Plant Retirements and Divestitures (net of taxes of $147, $1 and $148, respectively) (3) | 0.43 | — | — | — | — | 424 | (2 | ) | 422 | |||||||||||||||||||||||
| Cost Management Program (net of taxes of $1, $1, $1, $7 and $10, respectively) (4) | 0.03 | — | 2 | 2 | 3 | 22 | — | 29 | ||||||||||||||||||||||||
| Asset Retirement Obligation (net of taxes of $6) (5) | 0.02 | — | — | — | 16 | — | — | 16 | ||||||||||||||||||||||||
| Change in Environmental Liabilities (net of taxes of $1) | — | — | — | — | — | (4 | ) | — | (4 | ) | ||||||||||||||||||||||
| Income Tax-Related Adjustments (entire amount represents tax expense) (6) | (0.03 | ) | — | — | — | (8 | ) | (29 | ) | 10 | (27 | ) | ||||||||||||||||||||
| Noncontrolling Interests (net of taxes of $9) (7) | (0.04 | ) | — | — | — | — | (36 | ) | — | (36 | ) | |||||||||||||||||||||
| 2018 Adjusted (non-GAAP) Operating Earnings (Loss) | 2.55 | 523 | 338 | 245 | 347 | 1,123 | (109 | ) | 2,467 | |||||||||||||||||||||||
| Year Over Year Effects on Adjusted (non-GAAP) Operating Earnings: | ||||||||||||||||||||||||||||||||
| ComEd, PECO, BGE and PHI Margins: | ||||||||||||||||||||||||||||||||
| Weather | (0.02 | ) | — | (b) | (11 | ) | — | (b) | (5 | ) | (b) | — | — | (16 | ) | |||||||||||||||||
| Load | — | — | (b) | (4 | ) | — | (b) | 1 | (b) | — | — | (3 | ) | |||||||||||||||||||
| Other Energy Delivery (8) | 0.20 | 49 | (c) | 91 | (c) | 25 | (c) | 26 | (c) | — | — | 191 | ||||||||||||||||||||
| Generation Energy Margins, Excluding Mark-to-Market: | ||||||||||||||||||||||||||||||||
| Nuclear Volume (9) | (0.08 | ) | — | — | — | — | (82 | ) | — | (82 | ) | |||||||||||||||||||||
| Nuclear Fuel Cost (10) | 0.03 | — | — | — | — | 30 | — | 30 | ||||||||||||||||||||||||
| Capacity Pricing (11) | (0.11 | ) | — | — | — | — | (105 | ) | — | (105 | ) | |||||||||||||||||||||
| Zero Emission Credit Revenue (12) | (0.04 | ) | — | — | — | — | (42 | ) | — | (42 | ) | |||||||||||||||||||||
| Market and Portfolio Conditions (13) | (0.36 | ) | — | — | — | — | (353 | ) | — | (353 | ) | |||||||||||||||||||||
| Operating and Maintenance Expense: | ||||||||||||||||||||||||||||||||
| Labor, Contracting and Materials (14) | 0.12 | 3 | (3 | ) | (12 | ) | 24 | 101 | (1 | ) | 112 | |||||||||||||||||||||
| Planned Nuclear Refueling Outages (15) | 0.07 | — | — | — | — | 65 | — | 65 | ||||||||||||||||||||||||
| Pension and Non-Pension Postretirement Benefits (16) | 0.06 | 20 | 3 | (1 | ) | (6 | ) | 33 | 9 | 58 | ||||||||||||||||||||||
| Other Operating and Maintenance (17) | 0.03 | (18 | ) | 30 | 18 | 18 | (3 | ) | (12 | ) | 33 | |||||||||||||||||||||
| Depreciation and Amortization Expense (18) | (0.07 | ) | (51 | ) | (16 | ) | (7 | ) | (5 | ) | 11 | (2 | ) | (70 | ) | |||||||||||||||||
| Interest Expense, Net | (0.02 | ) | (4 | ) | (2 | ) | (7 | ) | (3 | ) | 8 | (12 | ) | (20 | ) | |||||||||||||||||
| Income Taxes (19) | (0.02 | ) | 13 | (18 | ) | 6 | 32 | (7 | ) | (45 | ) | (19 | ) | |||||||||||||||||||
| Noncontrolling Interests (20) | 0.12 | — | — | — | — | 119 | — | 119 | ||||||||||||||||||||||||
| Other (21) | (0.04 | ) | 9 | 4 | (4 | ) | 5 | (49 | ) | (1 | ) | (36 | ) | |||||||||||||||||||
| Total Year Over Year Effects on Adjusted (non-GAAP) Operating Earnings | (0.16 | ) | 21 | 74 | 18 | 87 | (274 | ) | (64 | ) | (138 | ) | ||||||||||||||||||||
| 2019 GAAP Net Income (Loss) | 2.22 | 544 | 410 | 261 | 412 | 728 | (191 | ) | 2,164 | |||||||||||||||||||||||
| Mark-to-Market Impact of Economic Hedging Activities (net of taxes of $26, $5 and $31, respectively) | 0.10 | — | — | — | — | 80 | 17 | 97 | ||||||||||||||||||||||||
| Unrealized Gains Related to NDT Fund Investments (net of taxes of $167) (1) | (0.19 | ) | — | — | — | — | (181 | ) | — | (181 | ) | |||||||||||||||||||||
| Asset Impairments (net of taxes of $54) (2) | 0.12 | — | — | — | — | 119 | — | 119 | ||||||||||||||||||||||||
| Plant Retirements and Divestitures (net of taxes of $8, $1 and $9, respectively) (3) | 0.12 | — | — | — | — | 115 | (1 | ) | 114 | |||||||||||||||||||||||
| Cost Management Program (net of taxes of $1, $1, $1, $7 and $10, respectively) (4) | 0.03 | — | 2 | 2 | 4 | 23 | — | 31 | ||||||||||||||||||||||||
| Litigation Settlement Gain (net of taxes of $7) | (0.02 | ) | — | — | — | — | (19 | ) | — | (19 | ) | |||||||||||||||||||||
| Asset Retirement Obligation (net of taxes of $9) (5) | (0.09 | ) | — | — | — | — | (84 | ) | — | (84 | ) | |||||||||||||||||||||
| Change in Environmental Liabilities (net of taxes of $5, $0, and $5, respectively) | 0.02 | — | — | — | 17 | 1 | — | 18 | ||||||||||||||||||||||||
| Income Tax-Related Adjustments (entire amount represents tax expense) (6) | 0.01 | — | — | — | 1 | 9 | 3 | 13 | ||||||||||||||||||||||||
| Noncontrolling Interests (net of taxes of $18) (7) | 0.06 | — | — | — | — | 58 | — | 58 | ||||||||||||||||||||||||
| 2019 Adjusted (non-GAAP) Operating Earnings (Loss) | $ | 2.39 | $ | 544 | $ | 412 | $ | 263 | $ | 434 | $ | 849 | $ | (173 | ) | $ | 2,329 | |||||||||||||||
8
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% to 29.0%. 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 48.1% and 55.5% for the nine months ended September 30, 2019 and 2018, respectively.
| (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 and DPL Maryland, 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, 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 the impairment of certain wind projects at Generation. In 2019, primarily reflects the impairment of equity method investments in certain distributed energy companies. The impact of such impairment net of noncontrolling interest is $0.02. |
| (3) | In 2018, primarily reflects accelerated depreciation and amortization expenses and one-time charges associated with Generation's decision to early retire the Oyster Creek and TMI nuclear facilities, a charge associated with a remeasurement of the Oyster Creek ARO, 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 the early retirement of the TMI nuclear facility and certain fossil sites and the loss on the sale of Oyster Creek to Holtec, partially offset by net realized gains related to Oyster Creek's NDT fund investments, a net benefit associated with remeasurements of the TMI ARO and a gain on the sale of certain wind assets. |
| (4) | Primarily represents reorganization costs related to cost management programs. |
| (5) | In 2018, reflects an increase at Pepco related primarily to asbestos identified at its Buzzard Point property. In 2019, reflects a benefit related to Generation's annual nuclear ARO update for non-regulatory units. |
| (6) | In 2018, reflects an adjustment to the remeasurement of deferred income taxes as a result of the TCJA. In 2019, primarily reflects the adjustment to deferred income taxes due to changes in forecasted apportionment. |
| (7) | Represents elimination from Generation’s results of the noncontrolling interests related to certain exclusion items. In 2018, primarily related to the impact of unrealized losses on NDT fund investments for CENG units. In 2019, primarily related to the impact of unrealized gains on NDT fund investments and the impact of the Generation's annual nuclear ARO update for CENG units, partially offset by the impairment of certain equity investments in distributed energy companies. |
| (8) | For ComEd, reflects increased electric distribution, energy efficiency and transmission revenues (due to higher rate base and fully recoverable costs, partially offset by lower electric distribution ROE due to decreased treasury rates). 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. |
| (9) | Primarily reflects the permanent cease of generation operations at Oyster Creek in September 2018, partially offset by a decrease in nuclear outage days. |
| (10) | Primarily reflects a decrease in fuel prices and decreased nuclear output as a result of the permanent cease of generation operations at Oyster Creek. |
| (11) | Reflects decreased capacity prices in the Mid-Atlantic, Midwest, New York, and Other Power Regions. |
| (12) | 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, partially offset by an increase in New York ZEC prices and the approval of the New Jersey ZEC Program in the second quarter of 2019. |
| (13) | Primarily reflects lower realized energy prices and the impacts of Generation's natural gas portfolio. |
| (14) | For Generation, primarily reflects decreased costs related to the permanent cease of generation operations at Oyster Creek and lower labor costs resulting from previous cost management programs. For PHI, primarily reflects decreased contracting costs. Additionally, for all utilities, reflects decreased mutual assistance expenses. |
| (15) | Primarily reflects a decrease in the number of nuclear outage days in 2019, excluding Salem. |
| (16) | 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. |
| (17) | For Generation, primarily reflects the absence of a supplemental NEIL insurance distribution received in the first quarter 2018, an increase in planned nuclear outage days at Salem in 2019. 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. |
| (18) | Reflects ongoing capital expenditures across all utilities. For ComEd, also reflects higher depreciation rates effective January 2019 and increased amortization of deferred energy efficiency costs pursuant to FEJA. For PHI, the impact of ongoing capital expenditures is partially offset by decreased regulatory asset amortization. |
| (19) | For Generation, primarily reflects renewable tax credits and one-time adjustments. For PECO, primarily reflects decreased 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. |
| (20) | Reflects elimination from Generation’s results of activity attributable to noncontrolling interests, primarily for CENG. |
| (21) | For Generation, primarily reflects lower realized NDT fund gains. |
9
Exelon
GAAP Consolidated Statements of Operations and
Adjusted (non-GAAP) Operating Earnings Reconciling Adjustments
(unaudited)
(in millions, except per share data)
| Three Months Ended September 30, 2019 | Three Months Ended September 30, 2018 | |||||||||||||||||||
| GAAP (a) | Non-GAAP Adjustments | GAAP (a) | Non-GAAP Adjustments | |||||||||||||||||
| Operating revenues | $ | 8,929 | $ | (77 | ) | (b) | $ | 9,403 | $ | (6 | ) | (b) | ||||||||
| Operating expenses | ||||||||||||||||||||
| Purchased power and fuel | 3,952 | (63 | ) | (b),(d) | 4,332 | 46 | (b),(d) | |||||||||||||
| Operating and maintenance | 2,072 | 18 | (c),(d),(e),(f),(h) | 2,346 | (130 | ) | (c),(d),(e),(h) | |||||||||||||
| Depreciation and amortization | 1,083 | (96 | ) | (d) | 1,105 | (152 | ) | (d) | ||||||||||||
| Taxes other than income | 452 | — | 469 | — | ||||||||||||||||
| Total operating expenses | 7,559 | 8,252 | ||||||||||||||||||
| Gain on sales of assets and businesses | (17 | ) | 18 | (d) | (5 | ) | 6 | (d) | ||||||||||||
| Operating income | 1,353 | 1,146 | ||||||||||||||||||
| Other income and (deductions) | ||||||||||||||||||||
| Interest expense, net | (409 | ) | 14 | (b) | (393 | ) | 8 | (b) | ||||||||||||
| Other, net | 158 | (75 | ) | (i) | 194 | (69 | ) | (b),(i) | ||||||||||||
| Total other income and (deductions) | (251 | ) | (199 | ) | ||||||||||||||||
| Income before income taxes | 1,102 | 947 | ||||||||||||||||||
| Income taxes | 172 | 33 | (b),(c),(d),(e),(f),(h),(i),(j),(k) | 137 | 73 | (b),(d),(c),(e),(h),(i),(j),(k) | ||||||||||||||
| Equity in losses of unconsolidated affiliates | (170 | ) | 164 | (f) | (10 | ) | — | |||||||||||||
| Net income | 760 | 800 | ||||||||||||||||||
| Net income attributable to noncontrolling interests | (12 | ) | 24 | (d),(e),(f),(g),(h),(i) | 67 | (21 | ) | (g) | ||||||||||||
| Net income attributable to common shareholders | $ | 772 | $ | 733 | ||||||||||||||||
Effective tax rate(n) | 15.6 | % | 14.5 | % | ||||||||||||||||
| Earnings per average common share | ||||||||||||||||||||
| Basic | $ | 0.79 | $ | 0.76 | ||||||||||||||||
| Diluted | $ | 0.79 | $ | 0.76 | ||||||||||||||||
| Average common shares outstanding | ||||||||||||||||||||
| Basic | 973 | 968 | ||||||||||||||||||
| Diluted | 974 | 970 | ||||||||||||||||||
| (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) | Adjustment to exclude a change in environmental liabilities. |
| (d) | In 2018, adjustment to exclude accelerated depreciation and amortization expense associated with Generation's decision to early retire the Oyster Creek and Three Mile Island nuclear facilities and a charge associated with a remeasurement of the Oyster Creek ARO. In 2019, adjustment to exclude accelerated depreciation and amortization expenses associated with the early retirement of the TMI nuclear facility and certain fossil sites, a charge associated with the remeasurement of the TMI ARO and the loss on sale of Oyster Creek to Holtec. |
| (e) | Adjustment to exclude reorganization costs related to cost management programs. |
| (f) | In 2019, adjustment to exclude impairment of equity investments in certain distributed energy companies. |
| (g) | Adjustment to exclude 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. |
| (h) | In 2018, adjustment to exclude an increase at Pepco related primarily to asbestos identified at its Buzzard Point property. In 2019, adjustment to exclude a benefit related to Generation's annual nuclear ARO update for non-regulatory units. |
| (i) | 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. |
| (j) | The effective tax rate related to Adjusted (non-GAAP) Operating Earnings is 18.3% and 18.7% for the three months ended September 30, 2019 and September 30, 2018, respectively. |
| (k) | In 2018, adjustment to exclude the remeasurement of deferred income taxes as a result of the TCJA. In 2019, adjustment to exclude primarily deferred income taxes due to changes in forecasted apportionment. |
10
Exelon
GAAP Consolidated Statements of Operations and
Adjusted (non-GAAP) Operating Earnings Reconciling Adjustments
(unaudited)
(in millions, except per share data)
| Nine Months Ended September 30, 2019 | Nine Months Ended September 30, 2018 | |||||||||||||||||||
| GAAP (a) | Non-GAAP Adjustments | GAAP (a) | Non-GAAP Adjustments | |||||||||||||||||
| Operating revenues | $ | 26,096 | $ | (64 | ) | (b) | $ | 27,170 | $ | 96 | (b) | |||||||||
| Operating expenses | ||||||||||||||||||||
| Purchased power and fuel | 11,731 | (160 | ) | (b),(c) | 12,374 | (61 | ) | (b),(c) | ||||||||||||
| Operating and maintenance | 6,419 | 70 | (c),(d),(e),(f),(h),(i) | 7,036 | (234 | ) | (c),(d),(e),(g),(h),(i) | |||||||||||||
| Depreciation and amortization | 3,237 | (294 | ) | (c) | 3,284 | (441 | ) | (c) | ||||||||||||
| Taxes other than income | 1,316 | — | 1,342 | — | ||||||||||||||||
| Total operating expenses | 22,703 | 24,036 | ||||||||||||||||||
| Gain on sales of assets and businesses | 19 | (15 | ) | (c) | 55 | (48 | ) | (c) | ||||||||||||
| Operating income | 3,412 | 3,189 | ||||||||||||||||||
| Other income and (deductions) | ||||||||||||||||||||
| Interest expense, net | (1,221 | ) | 42 | (b) | (1,138 | ) | 8 | (b) | ||||||||||||
| Other, net | 837 | (501 | ) | (b),(c),(j) | 212 | 200 | (b),(j) | |||||||||||||
| Total other income and (deductions) | (384 | ) | (926 | ) | ||||||||||||||||
| Income before income taxes | 3,028 | 2,263 | ||||||||||||||||||
| Income taxes | 626 | (98 | ) | (b),(c),(d),(e),(f),(h),(i),(j),(k),(l) | 262 | 348 | (b),(c),(d),(e),(g),(h),(i),(j),(k),(l) | |||||||||||||
| Equity in losses of unconsolidated affiliates | (182 | ) | 164 | (i) | (22 | ) | — | |||||||||||||
| Net income | 2,220 | 1,979 | ||||||||||||||||||
| Net income attributable to noncontrolling interests | 56 | (58 | ) | (c),(e),(h),(i),(j),(m) | 121 | 35 | (m) | |||||||||||||
| Net income attributable to common shareholders | $ | 2,164 | $ | 1,858 | ||||||||||||||||
Effective tax rate(h) | 20.7 | % | 11.6 | % | ||||||||||||||||
| Earnings per average common share | ||||||||||||||||||||
| Basic | $ | 2.23 | $ | 1.92 | ||||||||||||||||
| Diluted | $ | 2.22 | $ | 1.92 | ||||||||||||||||
| Average common shares outstanding | ||||||||||||||||||||
| Basic | 972 | 967 | ||||||||||||||||||
| Diluted | 973 | 969 | ||||||||||||||||||
| (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 and TMI nuclear facilities, a charge associated with a remeasurement of the Oyster Creek ARO, partially offset by a gain associated with Generation's sale of its electrical contracting business. In 2019, adjustment to exclude net realized gains related to Oyster Creek's NDT fund investments, a net benefit associated with a remeasurement of the TMI asset retirement obligation and a gain on the sale of certain wind assets, partially offset by accelerated depreciation and amortization expenses associated with Generation's previous decision to early retire the TMI nuclear facility and certain fossil sites as well as the loss on sale of Oyster Creek to Holtec. |
| (d) | Adjustment to exclude changes to environmental liabilities. |
| (e) | Adjustment to exclude reorganization costs related to cost management programs. |
| (f) | Adjustment to exclude a gain related to a litigation settlement. |
| (g) | In 2018, adjustment to exclude costs related to the PHI acquisition. |
| (h) | In 2018, adjustment to exclude an increase at Pepco related primarily to asbestos identified at its Buzzard Point property. In 2019, adjustment to exclude a benefit related to Generation's annual nuclear ARO update for non-regulatory units. |
| (i) | In 2018, adjustment to exclude the impairment of certain wind projects at Generation. In 2019, adjustment to exclude the impairment of equity investments in certain distributed energy companies. |
| (j) | 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. |
| (k) | The effective tax rate related to Adjusted (non-GAAP) Operating Earnings is 18.4% and 18.7% for the nine months ended September 30, 2019 and September 30, 2018, respectively. |
| (l) | In 2018, adjustment to exclude the remeasurement of deferred income taxes as a result of the TCJA. In 2019, adjustment to primarily exclude deferred income taxes due to changes in forecasted apportionment. |
| (m) | 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. |
11
ComEd
GAAP Consolidated Statements of Operations and
Adjusted (non-GAAP) Operating Earnings Reconciling Adjustments
(unaudited)
(in millions)
| Three Months Ended September 30, 2019 | Three Months Ended September 30, 2018 | |||||||||||||||||||
| GAAP (a) | Non-GAAP Adjustments | GAAP (a) | Non-GAAP Adjustments | |||||||||||||||||
| Operating revenues | $ | 1,583 | $ | — | $ | 1,598 | $ | — | ||||||||||||
| Operating expenses | ||||||||||||||||||||
| Purchased power and fuel | 577 | — | 619 | — | ||||||||||||||||
| Operating and maintenance | 340 | — | 337 | — | ||||||||||||||||
| Depreciation and amortization | 259 | — | 237 | — | ||||||||||||||||
| Taxes other than income | 80 | — | 82 | — | ||||||||||||||||
| Total operating expenses | 1,256 | 1,275 | ||||||||||||||||||
| Gain of sale of assets | 1 | — | — | — | ||||||||||||||||
| Operating income | 328 | 323 | ||||||||||||||||||
| Other income and (deductions) | ||||||||||||||||||||
| Interest expense, net | (91 | ) | — | (85 | ) | — | ||||||||||||||
| Other, net | 8 | — | 7 | — | ||||||||||||||||
| Total other income and (deductions) | (83 | ) | (78 | ) | ||||||||||||||||
| Income before income taxes | 245 | 245 | ||||||||||||||||||
| Income taxes | 45 | — | 52 | — | ||||||||||||||||
| Net income | $ | 200 | $ | 193 | ||||||||||||||||
| Nine Months Ended September 30, 2019 | Nine Months Ended September 30, 2018 | |||||||||||||||||||
| GAAP (a) | Non-GAAP Adjustments | GAAP (a) | Non-GAAP Adjustments | |||||||||||||||||
| Operating revenues | $ | 4,342 | $ | — | $ | 4,508 | $ | — | ||||||||||||
| Operating expenses | ||||||||||||||||||||
| Purchased power and fuel | 1,469 | — | 1,702 | — | ||||||||||||||||
| Operating and maintenance | 967 | — | 974 | — | ||||||||||||||||
| Depreciation and amortization | 767 | — | 696 | — | ||||||||||||||||
| Taxes other than income | 228 | — | 238 | — | ||||||||||||||||
| Total operating expenses | 3,431 | 3,610 | ||||||||||||||||||
| Gain on sales of assets | 4 | — | 5 | — | ||||||||||||||||
| Operating income | 915 | 903 | ||||||||||||||||||
| Other income and (deductions) | ||||||||||||||||||||
| Interest expense, net | (268 | ) | — | (261 | ) | — | ||||||||||||||
| Other, net | 27 | — | 21 | — | ||||||||||||||||
| Total other income and (deductions) | (241 | ) | (240 | ) | ||||||||||||||||
| Income before income taxes | 674 | 663 | ||||||||||||||||||
| Income taxes | 130 | — | 140 | — | ||||||||||||||||
| Net income | $ | 544 | $ | 523 | ||||||||||||||||
| (a) | Results reported in accordance with accounting principles generally accepted in the United States (GAAP). |
12
PECO
GAAP Consolidated Statements of Operations and
Adjusted (non-GAAP) Operating Earnings Reconciling Adjustments
(unaudited)
(in millions)
| Three Months Ended September 30, 2019 | Three Months Ended September 30, 2018 | |||||||||||||||||||
| GAAP (a) | Non-GAAP Adjustments | GAAP (a) | Non-GAAP Adjustments | |||||||||||||||||
| Operating revenues | $ | 778 | $ | — | $ | 757 | $ | — | ||||||||||||
| Operating expenses | ||||||||||||||||||||
| Purchased power and fuel | 246 | — | 263 | — | ||||||||||||||||
| Operating and maintenance | 219 | (1 | ) | (b) | 219 | (1 | ) | (b) | ||||||||||||
| Depreciation and amortization | 83 | — | 75 | — | ||||||||||||||||
| Taxes other than income | 47 | — | 46 | — | ||||||||||||||||
| Total operating expenses | 595 | 603 | ||||||||||||||||||
| Operating income | 183 | 154 | ||||||||||||||||||
| Other income and (deductions) | ||||||||||||||||||||
| Interest expense, net | (33 | ) | — | (32 | ) | — | ||||||||||||||
| Other, net | 4 | — | 2 | — | ||||||||||||||||
| Total other income and (deductions) | (29 | ) | (30 | ) | ||||||||||||||||
| Income before income taxes | 154 | 124 | ||||||||||||||||||
| Income taxes | 14 | — | (2 | ) | — | |||||||||||||||
| Net income | $ | 140 | $ | 126 | ||||||||||||||||
| Nine Months Ended September 30, 2019 | Nine Months Ended September 30, 2018 | |||||||||||||||||||
| GAAP (a) | Non-GAAP Adjustments | GAAP (a) | Non-GAAP Adjustments | |||||||||||||||||
| Operating revenues | $ | 2,333 | $ | — | $ | 2,275 | $ | — | ||||||||||||
| Operating expenses | ||||||||||||||||||||
| Purchased power and fuel | 767 | — | 818 | — | ||||||||||||||||
| Operating and maintenance | 643 | (3 | ) | (b) | 686 | (3 | ) | (b) | ||||||||||||
| Depreciation and amortization | 247 | — | 224 | — | ||||||||||||||||
| Taxes other than income | 126 | — | 125 | — | ||||||||||||||||
| Total operating expenses | 1,783 | 1,853 | ||||||||||||||||||
| Gain on sales of assets | — | — | 1 | — | ||||||||||||||||
| Operating income | 550 | 423 | ||||||||||||||||||
| Other income and (deductions) | ||||||||||||||||||||
| Interest expense, net | (100 | ) | — | (96 | ) | — | ||||||||||||||
| Other, net | 11 | — | 4 | — | ||||||||||||||||
| Total other income and (deductions) | (89 | ) | (92 | ) | ||||||||||||||||
| Income before income taxes | 461 | 331 | ||||||||||||||||||
| Income taxes | 51 | 1 | (b) | (5 | ) | 1 | (b) | |||||||||||||
| Net income | $ | 410 | $ | 336 | ||||||||||||||||
| (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. |
13
BGE
GAAP Consolidated Statements of Operations and
Adjusted (non-GAAP) Operating Earnings Reconciling Adjustments
(unaudited)
(in millions)
| Three Months Ended September 30, 2019 | Three Months Ended September 30, 2018 | |||||||||||||||||||
| GAAP (a) | Non-GAAP Adjustments | GAAP (a) | Non-GAAP Adjustments | |||||||||||||||||
| Operating revenues | $ | 703 | $ | — | $ | 731 | $ | — | ||||||||||||
| Operating expenses | ||||||||||||||||||||
| Purchased power and fuel | 235 | — | 272 | — | ||||||||||||||||
| Operating and maintenance | 196 | (1 | ) | (b) | 182 | (1 | ) | (b) | ||||||||||||
| Depreciation and amortization | 116 | — | 110 | — | ||||||||||||||||
| Taxes other than income | 65 | — | 64 | — | ||||||||||||||||
| Total operating expenses | 612 | 628 | ||||||||||||||||||
| Operating income | 91 | 103 | ||||||||||||||||||
| Other income and (deductions) | ||||||||||||||||||||
| Interest expense, net | (31 | ) | — | (27 | ) | — | ||||||||||||||
| Other, net | 7 | — | 5 | — | ||||||||||||||||
| Total other income and (deductions) | (24 | ) | (22 | ) | ||||||||||||||||
| Income before income taxes | 67 | 81 | ||||||||||||||||||
| Income taxes | 12 | — | 18 | — | ||||||||||||||||
| Net income | $ | 55 | $ | 63 | ||||||||||||||||
| Nine Months Ended September 30, 2019 | Nine Months Ended September 30, 2018 | |||||||||||||||||||
| GAAP (a) | Non-GAAP Adjustments | GAAP (a) | Non-GAAP Adjustments | |||||||||||||||||
| Operating revenues | $ | 2,327 | $ | — | $ | 2,369 | $ | — | ||||||||||||
| Operating expenses | ||||||||||||||||||||
| Purchased power and fuel | 804 | — | 881 | — | ||||||||||||||||
| Operating and maintenance | 569 | (3 | ) | (b) | 578 | (4 | ) | (b), (c) | ||||||||||||
| Depreciation and amortization | 368 | — | 358 | — | ||||||||||||||||
| Taxes other than income | 195 | — | 188 | — | ||||||||||||||||
| Total operating expenses | 1,936 | 2,005 | ||||||||||||||||||
| Gain on sales of assets | — | — | 1 | — | ||||||||||||||||
| Operating income | 391 | 365 | ||||||||||||||||||
| Other income and (deductions) | ||||||||||||||||||||
| Interest expense, net | (89 | ) | — | (78 | ) | — | ||||||||||||||
| Other, net | 18 | — | 14 | — | ||||||||||||||||
| Total other income and (deductions) | (71 | ) | (64 | ) | ||||||||||||||||
| Income before income taxes | 320 | 301 | ||||||||||||||||||
| Income taxes | 59 | 1 | (b) | 59 | 1 | (b), (c) | ||||||||||||||
| Net income | $ | 261 | $ | 242 | ||||||||||||||||
| (a) | Results reported in accordance with GAAP. |
| (b) | Adjustment to exclude reorganization costs related to cost management programs. |
| (c) | Adjustment to exclude certain costs associated with mergers and acquisitions, including, if and when applicable, professional fees, employee-related expenses, integration activities, and upfront credit facilities fees related to the PHI acquisition. |
14
PHI
GAAP Consolidated Statements of Operations and
Adjusted (non-GAAP) Operating Earnings Reconciling Adjustments
(unaudited)
(in millions)
| Three Months Ended September 30, 2019 | Three Months Ended September 30, 2018 | |||||||||||||||||||
| GAAP (a) | Non-GAAP Adjustments | GAAP (a) | Non-GAAP Adjustments | |||||||||||||||||
| Operating revenues | $ | 1,380 | $ | — | $ | 1,361 | $ | — | ||||||||||||
| Operating expenses | ||||||||||||||||||||
| Purchased power and fuel | 519 | — | 509 | — | ||||||||||||||||
| Operating and maintenance | 290 | (25 | ) | (c) | 292 | (24 | ) | (b) | ||||||||||||
| Depreciation and amortization | 193 | — | 192 | — | ||||||||||||||||
| Taxes other than income | 122 | — | 123 | — | ||||||||||||||||
| Total operating expenses | 1,124 | 1,116 | ||||||||||||||||||
| Operating income | 256 | 245 | ||||||||||||||||||
| Other income and (deductions) | ||||||||||||||||||||
| Interest expense, net | (66 | ) | — | (65 | ) | — | ||||||||||||||
| Other, net | 13 | — | 11 | — | ||||||||||||||||
| Total other income and (deductions) | (53 | ) | (54 | ) | ||||||||||||||||
| Income before income taxes | 203 | 191 | ||||||||||||||||||
| Income taxes | 14 | 5 | (c),(d) | 4 | 16 | (b),(d) | ||||||||||||||
| Net income | $ | 189 | $ | 187 | ||||||||||||||||
| Nine Months Ended September 30, 2019 | Nine Months Ended September 30, 2018 | |||||||||||||||||||
| GAAP (a) | Non-GAAP Adjustments | GAAP (a) | Non-GAAP Adjustments | |||||||||||||||||
| Operating revenues | $ | 3,700 | $ | — | $ | 3,688 | $ | — | ||||||||||||
| Operating expenses | ||||||||||||||||||||
| Purchased power and fuel | 1,391 | — | 1,410 | — | ||||||||||||||||
| Operating and maintenance | 811 | (28 | ) | (c) | 857 | (26 | ) | (b) | ||||||||||||
| Depreciation and amortization | 562 | — | 555 | — | ||||||||||||||||
| Taxes other than income | 342 | — | 343 | — | ||||||||||||||||
| Total operating expenses | 3,106 | 3,165 | ||||||||||||||||||
| Operating income | 594 | 523 | ||||||||||||||||||
| Other income and (deductions) | ||||||||||||||||||||
| Interest expense, net | (197 | ) | — | (193 | ) | — | ||||||||||||||
| Other, net | 39 | — | 33 | — | ||||||||||||||||
| Total other income and (deductions) | (158 | ) | (160 | ) | ||||||||||||||||
| Income before income taxes | 436 | 363 | ||||||||||||||||||
| Income taxes | 25 | 6 | (c),(d) | 28 | 15 | (b),(d) | ||||||||||||||
| Equity in earnings of unconsolidated affiliates | 1 | 1 | ||||||||||||||||||
| Net income | $ | 412 | $ | 336 | ||||||||||||||||
| (a) | Results reported in accordance with accounting principles generally accepted in the United States (GAAP). |
| (b) | Adjustment to exclude an increase at Pepco related primarily to asbestos identified at its Buzzard Point property. |
| (c) | Adjustment to exclude an increase at Pepco related primarily to an increase in environmental liabilities. |
| (d) | In 2018, reflects an adjustment to the remeasurement of deferred income taxes as a result of the TCJA. In 2019, primarily reflects the adjustment to deferred income taxes due to changes in forecasted apportionment. |
15
Generation
GAAP Consolidated Statements of Operations and
Adjusted (non-GAAP) Operating Earnings Reconciling Adjustments
(unaudited)
(in millions)
| Three Months Ended September 30, 2019 | Three Months Ended September 30, 2018 | |||||||||||||||||||
| GAAP (a) | Non-GAAP Adjustments | GAAP (a) | Non-GAAP Adjustments | |||||||||||||||||
| Operating revenues | $ | 4,774 | $ | (77 | ) | (b) | $ | 5,278 | $ | (6 | ) | (b) | ||||||||
| Operating expenses | ||||||||||||||||||||
| Purchased power and fuel | 2,651 | (63 | ) | (b),(c) | 2,980 | 46 | (b),(c) | |||||||||||||
| Operating and maintenance | 1,087 | 33 | (c),(d),(e),(f),(k) | 1,370 | (104 | ) | (c),(d),(e),(j),(k) | |||||||||||||
| Depreciation and amortization | 407 | (96 | ) | (c) | 468 | (152 | ) | (c) | ||||||||||||
| Taxes other than income | 129 | — | 143 | — | ||||||||||||||||
| Total operating expenses | 4,274 | 4,961 | ||||||||||||||||||
| (Loss) on sales of assets and businesses | (18 | ) | 18 | (c) | (6 | ) | 6 | (c) | ||||||||||||
| Operating income | 482 | 311 | ||||||||||||||||||
| Other income and (deductions) | ||||||||||||||||||||
| Interest expense, net | (109 | ) | 4 | (b) | (101 | ) | (4 | ) | (b) | |||||||||||
| Other, net | 128 | (75 | ) | (g) | 179 | (69 | ) | (b),(g) | ||||||||||||
| Total other income and (deductions) | 19 | 78 | ||||||||||||||||||
| Income before income taxes | 501 | 389 | ||||||||||||||||||
| Income taxes | 87 | 41 | (b),(c),(d),(e),(f),(g),(h),(k) | 78 | 74 | (b),(c),(d),(e),(g),(h),(j),(k) | ||||||||||||||
| Equity in losses of unconsolidated affiliates | (170 | ) | 164 | (e) | (11 | ) | — | |||||||||||||
| Net income | 244 | 300 | ||||||||||||||||||
| Net income attributable to noncontrolling interests | (13 | ) | 24 | (c),(d),(e),(f),(g),(i) | 66 | (21 | ) | (i) | ||||||||||||
| Net income attributable to membership interest | $ | 257 | $ | 234 | ||||||||||||||||
| Nine Months Ended September 30, 2019 | Nine Months Ended September 30, 2018 | |||||||||||||||||||
| GAAP (a) | Non-GAAP Adjustments | GAAP (a) | Non-GAAP Adjustments | |||||||||||||||||
| Operating revenues | $ | 14,280 | $ | (64 | ) | (b) | $ | 15,368 | $ | 96 | (b) | |||||||||
| Operating expenses | ||||||||||||||||||||
| Purchased power and fuel | 8,148 | (160 | ) | (b),(c) | 8,552 | (61 | ) | (b),(c) | ||||||||||||
| Operating and maintenance | 3,570 | 92 | (c),(d),(e),(f),(k),(l) | 4,126 | (202 | ) | (c),(d),(e),(j),(k) | |||||||||||||
| Depreciation and amortization | 1,221 | (294 | ) | (c) | 1,383 | (441 | ) | (c) | ||||||||||||
| Taxes other than income | 394 | — | 414 | — | ||||||||||||||||
| Total operating expenses | 13,333 | 14,475 | ||||||||||||||||||
| Gain on sales of assets and businesses | 15 | (15 | ) | (c) | 48 | (48 | ) | (c) | ||||||||||||
| Operating income | 962 | 941 | ||||||||||||||||||
| Other income and (deductions) | ||||||||||||||||||||
| Interest expense, net | (336 | ) | 20 | (b) | (305 | ) | (4 | ) | (b) | |||||||||||
| Other, net | 729 | (501 | ) | (b),(c),(g) | 164 | 200 | (b),(g) | |||||||||||||
| Total other income and (deductions) | 393 | (141 | ) | |||||||||||||||||
| Income before income taxes | 1,355 | 800 | ||||||||||||||||||
| Income taxes | 388 | (97 | ) | (b),(c),(d),(e),(f),(g),(h),(k),(l) | 110 | 337 | (b),(c),(d),(e),(g),(h),(j),(k) | |||||||||||||
| Equity in losses of unconsolidated affiliates | (183 | ) | 164 | (e) | (23 | ) | — | |||||||||||||
| Net income | 784 | 667 | ||||||||||||||||||
| Net income attributable to noncontrolling interests | 56 | (58 | ) | (c),(d),(e),(f),(g),(i) | 120 | 35 | (i) | |||||||||||||
| Net income attributable to membership interest | $ | 728 | $ | 547 | ||||||||||||||||
| (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 and TMI nuclear facilities, a charge associated with a remeasurement of the Oyster Creek ARO, partially offset by a gain associated |
16
with Generation's sale of its electrical contracting business. In 2019, adjustment to exclude net realized gains related to Oyster Creek's NDT fund investments, a net benefit associated with a remeasurement of the TMI asset retirement obligation and a gain on the sale of certain wind assets, partially offset by accelerated depreciation and amortization expenses associated with the early retirement of the TMI nuclear facility and certain fossil sites as well as the loss on sale of Oyster Creek to Holtec.
| (d) | Adjustment to exclude reorganization costs related to cost management programs. |
| (e) | In 2018, adjustment to exclude impairment of certain wind projects at Generation. In 2019, adjustment to exclude the impairment of equity investments in certain distributed energy companies. |
| (f) | Adjustment to exclude a benefit related to Generation's annual nuclear ARO update for non-regulatory units. |
| (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) | In 2018, adjustment to exclude the remeasurement of deferred income taxes as a result of the TCJA. In 2019, adjustment to exclude primarily deferred income taxes due to changes in forecasted apportionment. |
| (i) | 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. |
| (j) | In 2018, adjustment to exclude certain costs associated with mergers and acquisitions, including, if and when applicable, professional fees, employee-related expenses and integration activities. |
| (k) | Adjustment to exclude a change in environmental liabilities. |
| (l) | Adjustment to exclude a gain related to a litigation settlement. |
17
Other (a)
GAAP Consolidated Statements of Operations and
Adjusted (non-GAAP) Operating Earnings Reconciling Adjustments
(unaudited)
(in millions)
| Three Months Ended September 30, 2019 | Three Months Ended September 30, 2018 | |||||||||||||||||||
| GAAP (b) | Non-GAAP Adjustments | GAAP (b) | Non-GAAP Adjustments | |||||||||||||||||
| Operating revenues | $ | (289 | ) | $ | — | $ | (322 | ) | $ | — | ||||||||||
| Operating expenses | ||||||||||||||||||||
| Purchased power and fuel | (276 | ) | — | (311 | ) | — | ||||||||||||||
| Operating and maintenance | (60 | ) | 12 | (54 | ) | — | ||||||||||||||
| Depreciation and amortization | 25 | — | 23 | — | ||||||||||||||||
| Taxes other than income | 9 | — | 11 | — | ||||||||||||||||
| Total operating expenses | (302 | ) | (331 | ) | ||||||||||||||||
| Gain on sales of assets and businesses | — | — | 1 | — | ||||||||||||||||
| Operating income | 13 | 10 | ||||||||||||||||||
| Other income and (deductions) | ||||||||||||||||||||
| Interest expense, net | (79 | ) | 10 | (c) | (83 | ) | 12 | (c) | ||||||||||||
| Other, net | (2 | ) | — | (10 | ) | — | ||||||||||||||
| Total other income and (deductions) | (81 | ) | (93 | ) | ||||||||||||||||
| Loss before income taxes | (68 | ) | (83 | ) | ||||||||||||||||
| Income taxes | — | (13 | ) | (c),(e) | (13 | ) | (17 | ) | (d),(e) | |||||||||||
| Equity in earnings of unconsolidated affiliates | — | — | 1 | — | ||||||||||||||||
| Net (loss) income | (68 | ) | (69 | ) | ||||||||||||||||
| Net income attributable to noncontrolling interests | 1 | 1 | — | |||||||||||||||||
| Net (loss) income attributable to common shareholders | $ | (69 | ) | $ | (70 | ) | ||||||||||||||
| Nine Months Ended September 30, 2019 | Nine Months Ended September 30, 2018 | |||||||||||||||||||
| GAAP (b) | Non-GAAP Adjustments | GAAP (b) | Non-GAAP Adjustments | |||||||||||||||||
| Operating revenues | $ | (886 | ) | $ | — | $ | (1,038 | ) | $ | — | ||||||||||
| Operating expenses | ||||||||||||||||||||
| Purchased power and fuel | (848 | ) | — | (989 | ) | — | ||||||||||||||
| Operating and maintenance | (141 | ) | 12 | (185 | ) | 1 | ||||||||||||||
| Depreciation and amortization | 72 | — | 68 | — | ||||||||||||||||
| Taxes other than income | 31 | — | 34 | — | ||||||||||||||||
| Total operating expenses | (886 | ) | (1,072 | ) | ||||||||||||||||
| Gain on sales of assets | — | — | — | — | ||||||||||||||||
| Operating income | — | 34 | ||||||||||||||||||
| Other income and (deductions) | ||||||||||||||||||||
| Interest expense, net | (231 | ) | 22 | (c) | (205 | ) | 12 | (c) | ||||||||||||
| Other, net | 13 | — | (24 | ) | — | |||||||||||||||
| Total other income and (deductions) | (218 | ) | (229 | ) | ||||||||||||||||
| Loss before income taxes | (218 | ) | (195 | ) | ||||||||||||||||
| Income taxes | (27 | ) | (9 | ) | (c),(d),(e) | (70 | ) | (6 | ) | (c),(d),(e) | ||||||||||
| Equity in earnings of unconsolidated affiliates | — | — | — | — | ||||||||||||||||
| Net (loss) income | (191 | ) | (125 | ) | ||||||||||||||||
| Net income attributable to noncontrolling interests | — | 1 | ||||||||||||||||||
| Net (loss) income attributable to common shareholders | $ | (191 | ) | $ | (126 | ) | ||||||||||||||
| (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. |
| (d) | In 2018, primarily reflects accelerated depreciation and amortization expenses and one-time charges associated with Generation's decision to early retire the Oyster Creek and TMI nuclear facilities, a charge associated with a remeasurement of the Oyster Creek ARO, partially offset by a gain |
18
associated with Generation's sale of its electrical contracting business. In 2019, primarily reflects net realized gains related to Oyster Creek's NDT fund investments, a benefit associated with a remeasurement of the TMI asset retirement obligation and a gain on the sale of certain wind assets, partially offset by accelerated depreciation and amortization expenses associated with Generation's previous decision to early retire the TMI nuclear facility and certain fossil sites as well as the loss on sale of Oyster Creek to Holtec.
| (e) | In 2018, adjustment to exclude the remeasurement of deferred income taxes as a result of TCJA. In 2019, adjustment to exclude primarily deferred income taxes due to changes in forecasted apportionment. |
19
ComEd Statistics
Three Months Ended September 30, 2019 and 2018
| Revenue (in millions) | |||||||||||
| 2019 | 2018 | % Change | |||||||||
Rate-Regulated Electric Revenues(a) | |||||||||||
| Residential | $ | 865 | $ | 861 | 0.5 | % | |||||
| Small commercial & industrial | 393 | 391 | 0.5 | % | |||||||
| Large commercial & industrial | 141 | 131 | 7.6 | % | |||||||
| Public authorities & electric railroads | 12 | 11 | 9.1 | % | |||||||
Other(b) | 222 | 212 | 4.7 | % | |||||||
Total rate-regulated electric revenues(c) | 1,633 | 1,606 | 1.7 | % | |||||||
Other Rate-Regulated Revenues(d) | (50 | ) | (8 | ) | 525.0 | % | |||||
| Total Electric Revenues | $ | 1,583 | $ | 1,598 | (0.9 | )% | |||||
| Purchased Power | $ | 577 | $ | 619 | (6.8 | )% | |||||
Nine Months Ended September 30, 2019 and 2018
| Revenue (in millions) | |||||||||||
| 2019 | 2018 | % Change | |||||||||
Rate-Regulated Electric Revenues(a) | |||||||||||
| Residential | $ | 2,221 | $ | 2,277 | (2.5 | )% | |||||
| Small commercial & industrial | 1,103 | 1,132 | (2.6 | )% | |||||||
| Large commercial & industrial | 399 | 411 | (2.9 | )% | |||||||
| Public authorities & electric railroads | 35 | 36 | (2.8 | )% | |||||||
Other(b) | 660 | 656 | 0.6 | % | |||||||
Total rate-regulated electric revenues(c) | 4,418 | 4,512 | (2.1 | )% | |||||||
Other Rate-Regulated Revenues(d) | (76 | ) | (4 | ) | 1,800.0 | % | |||||
| Total Electric Revenues | $ | 4,342 | $ | 4,508 | (3.7 | )% | |||||
| Purchased Power | $ | 1,469 | $ | 1,702 | (13.7 | )% | |||||
| (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 $4 million for the three months ended September 30, 2019 and 2018, and $13 million and $23 million for the nine months ended September 30, 2019 and 2018, respectively. |
| (d) | Includes alternative revenue programs and late payment charges. |
20
PECO Statistics
Three Months Ended September 30, 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 | 4,106 | 4,166 | (1.4 | )% | (0.8 | )% | $ | 479 | $ | 458 | 4.6 | % | |||||||||||
| Small commercial & industrial | 2,203 | 2,315 | (4.8 | )% | (2.0 | )% | 109 | 108 | 0.9 | % | |||||||||||||
| Large commercial & industrial | 4,109 | 4,378 | (6.1 | )% | (6.3 | )% | 63 | 64 | (1.6 | )% | |||||||||||||
| Public authorities & electric railroads | 183 | 189 | (3.2 | )% | (3.3 | )% | 9 | 7 | 28.6 | % | |||||||||||||
Other(b) | — | — | n/a | n/a | 63 | 59 | 6.8 | % | |||||||||||||||
Total rate-regulated electric revenues(c) | 10,601 | 11,048 | (4.0 | )% | (3.3 | )% | 723 | 696 | 3.9 | % | |||||||||||||
Other Rate-Regulated Revenues(d) | (7 | ) | 4 | (275.0 | )% | ||||||||||||||||||
| Total Electric Revenues | 716 | 700 | 2.3 | % | |||||||||||||||||||
| Natural Gas (in mmcfs) | |||||||||||||||||||||||
Rate-Regulated Gas Deliveries and Revenues(e) | |||||||||||||||||||||||
| Residential | 2,109 | 2,099 | 0.5 | % | 7.9 | % | $ | 38 | $ | 36 | 5.6 | % | |||||||||||
| Small commercial & industrial | 1,901 | 1,776 | 7.0 | % | 15.1 | % | 17 | 15 | 13.3 | % | |||||||||||||
| Large commercial & industrial | 10 | 6 | 66.7 | % | 12.4 | % | — | — | n/a | ||||||||||||||
| Transportation | 5,395 | 5,693 | (5.2 | )% | (3.4 | )% | 5 | 5 | — | % | |||||||||||||
Other(f) | — | — | n/a | n/a | 2 | 1 | 100.0 | % | |||||||||||||||
Total rate-regulated natural gas revenues(g) | 9,415 | 9,574 | (1.7 | )% | 2.5 | % | 62 | 57 | 8.8 | % | |||||||||||||
Other Rate-Regulated Revenues(d) | — | — | n/a | ||||||||||||||||||||
| Total Natural Gas Revenues | 62 | 57 | 8.8 | % | |||||||||||||||||||
| Total Electric and Natural Gas Revenues | $ | 778 | $ | 757 | 2.8 | % | |||||||||||||||||
| Purchased Power and Fuel | $ | 246 | $ | 263 | (6.5 | )% | |||||||||||||||||
| % Change | |||||||||||||||
| Heating and Cooling Degree-Days | 2019 | 2018 | Normal | From 2018 | From Normal | ||||||||||
| Heating Degree-Days | 2 | 13 | 27 | (84.6 | )% | (92.6 | )% | ||||||||
| Cooling Degree-Days | 1,143 | 1,124 | 1,001 | 1.7 | % | 14.2 | % | ||||||||
21
Nine Months Ended September 30, 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 | 10,568 | 10,741 | (1.6 | )% | (0.5 | )% | $ | 1,231 | $ | 1,199 | 2.7 | % | |||||||||||
| Small commercial & industrial | 6,093 | 6,273 | (2.9 | )% | (1.7 | )% | 304 | 306 | (0.7 | )% | |||||||||||||
| Large commercial & industrial | 11,449 | 11,892 | (3.7 | )% | (3.9 | )% | 163 | 174 | (6.3 | )% | |||||||||||||
| Public authorities & electric railroads | 560 | 568 | (1.4 | )% | (2.0 | )% | 23 | 21 | 9.5 | % | |||||||||||||
| Other(b) | — | — | n/a | n/a | 186 | 181 | 2.8 | % | |||||||||||||||
| Total rate-regulated electric revenues(c) | 28,670 | 29,474 | (2.7 | )% | (2.1 | )% | 1,907 | 1,881 | 1.4 | % | |||||||||||||
| Other Rate-Regulated Revenues(d) | (6 | ) | 12 | (150.0 | )% | ||||||||||||||||||
| Total Electric Revenues | 1,901 | 1,893 | 0.4 | % | |||||||||||||||||||
| Natural Gas (in mmcfs) | |||||||||||||||||||||||
| Rate-Regulated Gas Deliveries and Revenues(e) | |||||||||||||||||||||||
| Residential | 26,678 | 28,562 | (6.6 | )% | 1.1 | % | $ | 285 | $ | 259 | 10.0 | % | |||||||||||
| Small commercial & industrial | 16,585 | 15,792 | 5.0 | % | 1.2 | % | 122 | 102 | 19.6 | % | |||||||||||||
| Large commercial & industrial | 46 | 58 | (20.7 | )% | 6.0 | % | 1 | 1 | — | % | |||||||||||||
| Transportation | 19,087 | 19,242 | (0.8 | )% | 1.3 | % | 18 | 16 | 12.5 | % | |||||||||||||
| Other(f) | — | — | n/a | n/a | 5 | 4 | 25.0 | % | |||||||||||||||
| Total rate-regulated natural gas revenues(g) | 62,396 | 63,654 | (2.0 | )% | 1.2 | % | 431 | 382 | 12.8 | % | |||||||||||||
| Other Rate-Regulated Revenues(d) | 1 | — | 100.0 | % | |||||||||||||||||||
| Total Natural Gas Revenues | 432 | 382 | 13.1 | % | |||||||||||||||||||
| Total Electric and Natural Gas Revenues | $ | 2,333 | $ | 2,275 | 2.5 | % | |||||||||||||||||
| Purchased Power and Fuel | $ | 767 | $ | 818 | (6.2 | )% | |||||||||||||||||
| % Change | |||||||||||||||
| Heating and Cooling Degree-Days | 2019 | 2018 | Normal | From 2018 | From Normal | ||||||||||
| Heating Degree-Days | 2,704 | 2,892 | 2,890 | (6.5 | )% | (6.4 | )% | ||||||||
| Cooling Degree-Days | 1,570 | 1,506 | 1,386 | 4.2 | % | 13.3 | % | ||||||||
| Number of Electric Customers | 2019 | 2018 | Number of Natural Gas Customers | 2019 | 2018 | |||||||||
| Residential | 1,489,046 | 1,476,914 | Residential | 484,676 | 479,732 | |||||||||
| Small Commercial & Industrial | 153,400 | 152,253 | Small Commercial & Industrial | 43,869 | 43,638 | |||||||||
| Large Commercial & Industrial | 3,104 | 3,124 | Large Commercial & Industrial | 2 | 1 | |||||||||
| Public Authorities & Electric Railroads | 9,775 | 9,561 | Transportation | 735 | 761 | |||||||||
| Total | 1,655,325 | 1,641,852 | Total | 529,282 | 524,132 | |||||||||
| (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 $1 million and $2 million for the three months ended September 30, 2019 and 2018, respectively, and $4 million and $5 million for the nine months ended September 30, 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 the three months ended September 30, 2019 and 2018, and less than $1 million for the both nine months ended September 30, 2019 and 2018. |
22
BGE Statistics
Three Months Ended September 30, 2019 and 2018
| Revenue (in millions) | ||||||||||
| 2019 | 2018 | % Change | ||||||||
| Electric (in GWhs) | ||||||||||
Rate-Regulated Electric Revenues(a) | ||||||||||
| Residential | $ | 352 | $ | 366 | (3.8 | )% | ||||
| Small commercial & industrial | 64 | 68 | (5.9 | )% | ||||||
| Large commercial & industrial | 116 | 117 | (0.9 | )% | ||||||
| Public authorities & electric railroads | 7 | 7 | — | % | ||||||
Other(b) | 82 | 91 | (9.9 | )% | ||||||
Total rate-regulated electric revenues(c) | 621 | 649 | (4.3 | )% | ||||||
Other Rate-Regulated Revenues(d) | (2 | ) | (4 | ) | (50.0 | )% | ||||
| Total Electric Revenues | 619 | 645 | (4.0 | )% | ||||||
| Natural Gas (in mmcfs) | ||||||||||
Rate-Regulated Gas Revenues(e) | ||||||||||
| Residential | 49 | 46 | 6.5 | % | ||||||
| Small commercial & industrial | 9 | 8 | 12.5 | % | ||||||
| Large commercial & industrial | 20 | 17 | 17.6 | % | ||||||
Other(f) | 5 | 12 | (58.3 | )% | ||||||
Total rate-regulated natural gas revenues(g) | 83 | 83 | — | % | ||||||
Other Rate-Regulated Revenues(d) | 1 | 3 | (66.7 | )% | ||||||
| Total Natural Gas Revenues | 84 | 86 | (2.3 | )% | ||||||
| Total Electric and Natural Gas Revenues | $ | 703 | $ | 731 | (3.8 | )% | ||||
| Purchased Power and Fuel | $ | 235 | $ | 272 | (13.6 | )% | ||||
Nine Months Ended September 30, 2019 and 2018
| Revenue (in millions) | ||||||||||
| 2019 | 2018 | % Change | ||||||||
Rate-Regulated Electric Revenues(a) | ||||||||||
| Residential | $ | 1,019 | $ | 1,054 | (3.3 | )% | ||||
| Small commercial & industrial | 193 | 196 | (1.5 | )% | ||||||
| Large commercial & industrial | 335 | 325 | 3.1 | % | ||||||
| Public authorities & electric railroads | 20 | 21 | (4.8 | )% | ||||||
Other(b) | 242 | 246 | (1.6 | )% | ||||||
Total rate-regulated electric revenues(c) | 1,809 | 1,842 | (1.8 | )% | ||||||
Other Rate-Regulated Revenues(d) | 8 | 8 | — | % | ||||||
| Total Electric Revenues | 1,817 | 1,850 | (1.8 | )% | ||||||
Rate-Regulated Gas Revenues(e) | ||||||||||
| Residential | 327 | 345 | (5.2 | )% | ||||||
| Small commercial & industrial | 55 | 55 | — | % | ||||||
| Large commercial & industrial | 93 | 88 | 5.7 | % | ||||||
Other(f) | 19 | 49 | (61.2 | )% | ||||||
Total rate-regulated natural gas revenues(g) | 494 | 537 | (8.0 | )% | ||||||
Other Rate-Regulated Revenues(d) | 16 | (18 | ) | (188.9 | )% | |||||
| Total Natural Gas Revenues | 510 | 519 | (1.7 | )% | ||||||
| Total Electric and Natural Gas Revenues | $ | 2,327 | $ | 2,369 | (1.8 | )% | ||||
| Purchased Power and Fuel | $ | 804 | $ | 881 | (8.7 | )% | ||||
| Number of Electric Customers | 2019 | 2018 | Number of Natural Gas Customers | 2019 | 2018 | |||||||||
| Residential | 1,174,188 | 1,165,012 | Residential | 636,030 | 631,589 | |||||||||
| Small Commercial & Industrial | 114,301 | 114,082 | Small Commercial & Industrial | 38,129 | 38,175 | |||||||||
| Large Commercial & Industrial | 12,296 | 12,218 | Large Commercial & Industrial | 6,005 | 5,920 | |||||||||
| Public Authorities & Electric Railroads | 264 | 263 | Total | 680,164 | 675,684 | |||||||||
| Total | 1,301,049 | 1,291,575 | ||||||||||||
| (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. |
23
| (c) | Includes operating revenues from affiliates totaling $2 million and $1 million for the three months ended September 30, 2019 and 2018, respectively, and $5 million for both the nine months ended September 30, 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 and $5 million for the three months ended September 30, 2019 and 2018, respectively, and $13 million for both the nine months ended September 30, 2019 and 2018. |
24
Pepco Statistics
Three Months Ended September 30, 2019 and 2018
| Revenue (in millions) | |||||||||||
| 2019 | 2018 | % Change | |||||||||
Rate-Regulated Electric Revenues(a) | |||||||||||
| Residential | $ | 311 | $ | 306 | 1.6 | % | |||||
| Small commercial & industrial | 41 | 39 | 5.1 | % | |||||||
| Large commercial & industrial | 222 | 230 | (3.5 | )% | |||||||
| Public authorities & electric railroads | 11 | 8 | 37.5 | % | |||||||
Other(b) | 58 | 47 | 23.4 | % | |||||||
Total rate-regulated electric revenues(c) | 643 | 630 | 2.1 | % | |||||||
Other Rate-Regulated Revenues(d) | (1 | ) | (2 | ) | (50.0 | )% | |||||
| Total Electric Revenues | $ | 642 | $ | 628 | 2.2 | % | |||||
| Purchased Power | $ | 181 | $ | 177 | 2.3 | % | |||||
Nine Months Ended September 30, 2019 and 2018
| Revenue (in millions) | |||||||||||
| 2019 | 2018 | % Change | |||||||||
Rate-Regulated Electric Revenues(a) | |||||||||||
| Residential | $ | 792 | $ | 792 | — | % | |||||
| Small commercial & industrial | 114 | 104 | 9.6 | % | |||||||
| Large commercial & industrial | 633 | 632 | 0.2 | % | |||||||
| Public authorities & electric railroads | 27 | 24 | 12.5 | % | |||||||
Other(b) | 166 | 145 | 14.5 | % | |||||||
Total rate-regulated electric revenues(c) | 1,732 | 1,697 | 2.1 | % | |||||||
Other Rate-Regulated Revenues(d) | 16 | 11 | 45.5 | % | |||||||
| Total Electric Revenues | $ | 1,748 | $ | 1,708 | 2.3 | % | |||||
| Purchased Power | $ | 513 | $ | 497 | 3.2 | % | |||||
| Number of Electric Customers | 2019 | 2018 | ||||
| Residential | 814,412 | 802,607 | ||||
| Small Commercial & Industrial | 54,130 | 53,700 | ||||
| Large Commercial & Industrial | 22,240 | 21,927 | ||||
| Public Authorities & Electric Railroads | 158 | 147 | ||||
| Total | 890,940 | 878,381 | ||||
| (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 transmission revenue from PJM, wholesale electric revenue and mutual assistance revenue. |
| (c) | Includes operating revenues from affiliates totaling $2 million for the three months ended September 30, 2019 and 2018 respectively, and $5 million for the nine months ended September 30, 2019 and 2018. |
| (d) | Includes alternative revenue programs and late payment charge revenues. |
25
DPL Statistics
Three Months Ended September 30, 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 | 947 | 945 | 0.2 | % | 0.3 | % | $ | 178 | $ | 180 | (1.1 | )% | |||||||||||
| Small Commercial & industrial | 387 | 376 | 2.9 | % | 2.5 | % | 48 | 48 | — | % | |||||||||||||
| Large Commercial & industrial | 924 | 973 | (5.0 | )% | (5.2 | )% | 26 | 25 | 4.0 | % | |||||||||||||
| Public authorities & electric railroads | 8 | 8 | — | % | (1.1 | )% | 3 | 3 | — | % | |||||||||||||
Other(c) | — | — | n/a | n/a | 50 | 47 | 6.4 | % | |||||||||||||||
Total rate-regulated electric revenues(d) | 2,266 | 2,302 | (1.6 | )% | (1.7 | )% | 305 | 303 | 0.7 | % | |||||||||||||
Other Rate-Regulated Revenues(e) | (6 | ) | 1 | (700.0 | )% | ||||||||||||||||||
| Total Electric Revenues | 299 | 304 | (1.6 | )% | |||||||||||||||||||
| Natural Gas (in mmcfs) | |||||||||||||||||||||||
Rate-Regulated Gas Deliveries and Revenues(f) | |||||||||||||||||||||||
| Residential | 403 | 360 | 11.9 | % | 11.8 | % | 9 | 8 | 12.5 | % | |||||||||||||
| Small commercial & industrial | 386 | 309 | 24.9 | % | 22.9 | % | 4 | 5 | (20.0 | )% | |||||||||||||
| Large commercial & industrial | 407 | 454 | (10.4 | )% | (10.4 | )% | 1 | 2 | (50.0 | )% | |||||||||||||
| Transportation | 1,212 | 1,260 | (3.8 | )% | (3.5 | )% | 4 | 3 | 33.3 | % | |||||||||||||
Other(g) | — | — | n/a | n/a | 2 | 6 | (66.7 | )% | |||||||||||||||
| Total rate-regulated natural gas revenues | 2,408 | 2,383 | 1.0 | % | 1.4 | % | 20 | 24 | (16.7 | )% | |||||||||||||
Other Rate-Regulated Revenues(e) | — | — | n/a | ||||||||||||||||||||
| Total Natural Gas Revenues | 20 | 24 | (16.7 | )% | |||||||||||||||||||
| Total Electric and Natural Gas Revenues | $ | 319 | $ | 328 | (2.7 | )% | |||||||||||||||||
| Purchased Power and Fuel | $ | 127 | $ | 133 | (4.5 | )% | |||||||||||||||||
| Delaware Electric Service Territory | % Change | ||||||||||||||
| Heating and Cooling Degree-Days | 2019 | 2018 | Normal | From 2018 | From Normal | ||||||||||
| Heating Degree-Days | 6 | 11 | 33 | (45.5 | )% | (81.8 | )% | ||||||||
| Cooling Degree-Days | 1,043 | 1,027 | 871 | 1.6 | % | 19.7 | % | ||||||||
| Delaware Natural Gas Service Territory | % Change | ||||||||||||||
| Heating Degree-Days | 2019 | 2018 | Normal | From 2018 | From Normal | ||||||||||
| Heating Degree-Days | 6 | 11 | 41 | (45.5 | )% | (85.4 | )% | ||||||||
26
Nine Months Ended September 30, 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 | 2,450 | 2,485 | (1.4 | )% | (0.6 | )% | $ | 499 | $ | 513 | (2.7 | )% | |||||||||||
| Small Commercial & industrial | 1,013 | 1,027 | (1.4 | )% | (1.3 | )% | 141 | 138 | 2.2 | % | |||||||||||||
| Large Commercial & industrial | 2,600 | 2,730 | (4.8 | )% | (4.8 | )% | 75 | 74 | 1.4 | % | |||||||||||||
| Public authorities & electric railroads | 25 | 25 | — | % | 1.1 | % | 10 | 10 | — | % | |||||||||||||
Other(c) | — | — | n/a | n/a | 151 | 129 | 17.1 | % | |||||||||||||||
Total rate-regulated electric revenues(d) | 6,088 | 6,267 | (2.9 | )% | (2.6 | )% | 876 | 864 | 1.4 | % | |||||||||||||
Other Rate-Regulated Revenues(e) | (5 | ) | 8 | (162.5 | )% | ||||||||||||||||||
| Total Electric Revenues | 871 | 872 | (0.1 | )% | |||||||||||||||||||
| Natural Gas (in mmcfs) | |||||||||||||||||||||||
Rate-Regulated Gas Deliveries and Revenues(f) | |||||||||||||||||||||||
| Residential | 5,751 | 5,801 | (0.9 | )% | 3.8 | % | $ | 64 | 68 | (5.9 | )% | ||||||||||||
| Small commercial & industrial | 2,972 | 2,831 | 5.0 | % | 8.9 | % | 30 | 31 | (3.2 | )% | |||||||||||||
| Large commercial & industrial | 1,372 | 1,438 | (4.6 | )% | (4.5 | )% | 4 | 7 | (42.9 | )% | |||||||||||||
| Transportation | 4,905 | 4,893 | 0.2 | % | 1.6 | % | 11 | 12 | (8.3 | )% | |||||||||||||
Other(g) | — | — | n/a | n/a | 6 | 11 | (45.5 | )% | |||||||||||||||
| Total rate-regulated natural gas revenues | 15,000 | 14,963 | 0.2 | % | 3.3 | % | 115 | 129 | (10.9 | )% | |||||||||||||
Other Rate-Regulated Revenues(e) | 1 | — | n/a | ||||||||||||||||||||
| Total Natural Gas Revenues | 116 | 129 | (10.1 | )% | |||||||||||||||||||
| Total Electric and Natural Gas Revenues | $ | 987 | $ | 1,001 | (1.4 | )% | |||||||||||||||||
| Purchased Power and Fuel | $ | 399 | $ | 425 | (6.1 | )% | |||||||||||||||||
| Delaware Electric Service Territory | % Change | ||||||||||||||
| Heating Degree-Days | 2019 | 2018 | Normal | From 2018 | From Normal | ||||||||||
| Heating Degree-Days | 2,828 | 2,995 | 3,017 | (5.6 | )% | (6.3 | )% | ||||||||
| Cooling Degree-Days | 1,429 | 1,376 | 1,198 | 3.9 | % | 19.3 | % | ||||||||
| Delaware Natural Gas Service Territory | % Change | ||||||||||||||
| Heating Degree-Days | 2019 | 2018 | Normal | From 2018 | From Normal | ||||||||||
| Heating Degree-Days | 2,828 | 2,995 | 3,031 | (5.6 | )% | (6.7 | )% | ||||||||
| Number of Total Electric Customers (Maryland and Delaware) | 2019 | 2018 | Number of Delaware Gas Customers | 2019 | 2018 | |||||||||
| Residential | 466,972 | 463,017 | Residential | 124,944 | 123,145 | |||||||||
| Small Commercial & Industrial | 61,657 | 61,277 | Small Commercial & Industrial | 9,885 | 9,798 | |||||||||
| Large Commercial & Industrial | 1,418 | 1,400 | Large Commercial & Industrial | 18 | 19 | |||||||||
| Public Authorities & Electric Railroads | 616 | 622 | Transportation | 158 | 154 | |||||||||
| Total | 530,663 | 526,316 | Total | 135,005 | 133,116 | |||||||||
| (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 transmission revenue from PJM, wholesale electric revenue and mutual assistance revenue. |
| (d) | Includes operating revenues from affiliates totaling $1 million and $2 million for the three months ended September 30, 2019 and 2018 and $5 million and $6 million for the nine months ended September 30, 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. |
27
ACE Statistics
Three Months Ended September 30, 2019 and 2018
| 2019 | 2018 | % Change | Weather - Normal % Change | 2019 | 2018 | % Change | |||||||||||||||||
Rate-Regulated Electric Deliveries and Revenues(a) | |||||||||||||||||||||||
| Residential | 1,470 | 1,548 | (5.0 | )% | (1.6 | )% | $ | 252 | $ | 240 | 5.0 | % | |||||||||||
| Small Commercial & industrial | 431 | 442 | (2.5 | )% | (0.5 | )% | 58 | 53 | 9.4 | % | |||||||||||||
| Large Commercial & industrial | 938 | 1,030 | (8.9 | )% | (7.9 | )% | 49 | 48 | 2.1 | % | |||||||||||||
| Public Authorities & Electric Railroads | 10 | 10 | — | % | (3.9 | )% | 3 | 3 | — | % | |||||||||||||
Other(b) | — | — | n/a | n/a | 56 | 63 | (11.1 | )% | |||||||||||||||
Total rate-regulated electric revenues(c) | 2,849 | 3,030 | (6.0 | )% | (3.7 | )% | 418 | 407 | 2.7 | % | |||||||||||||
Other Rate-Regulated Revenues(d) | 1 | (1 | ) | (200.0 | )% | ||||||||||||||||||
| Total Electric Revenues | $ | 419 | $ | 406 | 3.2 | % | |||||||||||||||||
| Purchased Power | $ | 210 | $ | 198 | 6.1 | % | |||||||||||||||||
| Heating and Cooling Degree-Days | 2019 | 2018 | Normal | From 2018 | From Normal | ||||||||||
| Heating Degree-Days | 13 | 1 | 38 | 1,200.0 | % | (65.8 | )% | ||||||||
| Cooling Degree-Days | 980 | 1,093 | 831 | (10.3 | )% | 17.9 | % | ||||||||
Nine Months Ended September 30, 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 | 3,182 | 3,363 | (5.4 | )% | (3.9 | )% | $ | 525 | $ | 534 | (1.7 | )% | |||||||||||
| Small Commercial & industrial | 1,055 | 1,066 | (1.0 | )% | 0.1 | % | 132 | 128 | 3.1 | % | |||||||||||||
| Large Commercial & industrial | 2,600 | 2,725 | (4.6 | )% | (4.2 | )% | 135 | 139 | (2.9 | )% | |||||||||||||
| Public Authorities & Electric Railroads | 34 | 36 | (5.6 | )% | (5.9 | )% | 10 | 10 | — | % | |||||||||||||
Other(b) | — | — | n/a | n/a | 164 | 174 | (5.7 | )% | |||||||||||||||
Total rate-regulated electric revenues(c) | 6,871 | 7,190 | (4.4 | )% | (3.4 | )% | 966 | 985 | (1.9 | )% | |||||||||||||
Other Rate-Regulated Revenues(d) | — | (4 | ) | (100.0 | )% | ||||||||||||||||||
| Total Electric Revenues | $ | 966 | $ | 981 | (1.5 | )% | |||||||||||||||||
| Purchased Power | $ | 479 | $ | 486 | (1.4 | )% | |||||||||||||||||
| % Change | |||||||||||||||
| Heating Degree-Days | 2019 | 2018 | Normal | From 2018 | From Normal | ||||||||||
| Heating Degree-Days | 2,899 | 2,928 | 3,080 | (1.0 | )% | (5.9 | )% | ||||||||
| Cooling Degree-Days | 1,330 | 1,447 | 1,129 | (8.1 | )% | 17.8 | % | ||||||||
| Number of Electric Customers | 2019 | 2018 | ||||
| Residential | 493,720 | 489,961 | ||||
| Small Commercial & Industrial | 61,376 | 61,141 | ||||
| Large Commercial & Industrial | 3,418 | 3,569 | ||||
| Public Authorities & Electric Railroads | 676 | 656 | ||||
| Total | 559,190 | 555,327 | ||||
| (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 transmission revenue from PJM, wholesale electric revenue and mutual assistance revenue. |
| (c) | Includes operating revenues from affiliates totaling $1 million for both the three months ended September 30, 2019 and 2018 and $2 million for both the nine months ended September 30, 2019 and 2018. |
| (d) | Includes alternative revenue programs and late payment charge revenues. |
28
Generation Statistics
| Three Months Ended | Nine Months Ended | |||||||||||
| September 30, 2019 | September 30, 2018 | September 30, 2019 | September 30, 2018 | |||||||||
| Supply (in GWhs) | ||||||||||||
Nuclear Generation(a) | ||||||||||||
| Mid-Atlantic | 15,281 | 16,197 | 44,436 | 48,924 | ||||||||
| Midwest | 23,730 | 23,834 | 71,459 | 70,532 | ||||||||
| New York | 7,204 | 6,518 | 20,783 | 19,758 | ||||||||
| Total Nuclear Generation | 46,215 | 46,549 | 136,678 | 139,214 | ||||||||
| Fossil and Renewables | ||||||||||||
| Mid-Atlantic | 485 | 853 | 2,351 | 2,660 | ||||||||
| Midwest | 262 | 244 | 981 | 1,020 | ||||||||
| New York | 3 | 1 | 4 | 3 | ||||||||
| ERCOT | 4,500 | 3,137 | 10,644 | 8,389 | ||||||||
Other Power Regions(b) | 3,135 | 3,628 | 8,789 | 10,692 | ||||||||
| Total Fossil and Renewables | 8,385 | 7,863 | 22,769 | 22,764 | ||||||||
| Purchased Power | ||||||||||||
| Mid-Atlantic | 5,235 | 3,504 | 10,359 | 4,828 | ||||||||
| Midwest | 124 | 174 | 662 | 733 | ||||||||
| ERCOT | 1,329 | 1,811 | 3,585 | 5,504 | ||||||||
Other Power Regions(b) | 13,006 | 12,705 | 36,693 | 32,731 | ||||||||
| Total Purchased Power | 19,694 | 18,194 | 51,299 | 43,796 | ||||||||
| Total Supply/Sales by Region | ||||||||||||
Mid-Atlantic(c) | 21,001 | 20,554 | 57,146 | 56,412 | ||||||||
Midwest(c) | 24,116 | 24,252 | 73,102 | 72,285 | ||||||||
| New York | 7,207 | 6,519 | 20,787 | 19,761 | ||||||||
| ERCOT | 5,829 | 4,948 | 14,229 | 13,893 | ||||||||
Other Power Regions(b) | 16,141 | 16,333 | 45,482 | 43,423 | ||||||||
| Total Supply/Sales by Region | 74,294 | 72,606 | 210,746 | 205,774 | ||||||||
| Three Months Ended | Nine Months Ended | |||||||||||
| September 30, 2019 | September 30, 2018 | September 30, 2019 | September 30, 2018 | |||||||||
Outage Days(d) | ||||||||||||
| Refueling | 15 | 36 | 145 | 198 | ||||||||
| Non-refueling | 15 | 12 | 43 | 20 | ||||||||
| Total Outage Days | 30 | 48 | 188 | 218 | ||||||||
| (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. |
29