Exelon Generation 8-K Results of Operations and Financial Condition

Exhibit 99.1

Contact:         Dan Eggers Investor Relations 312-394-2345   Paul Adams Corporate Communications 410-470-4167

EXELON ANNOUNCES FOURTH QUARTER 2016 RESULTS,

PROVIDES 2017 EARNINGS EXPECTATION

CHICAGO (Feb. 8, 2017)— Exelon Corporation (NYSE: EXC) announced fourth quarter 2016 consolidated earnings as follows:

	Full Year				Fourth Quarter
	2016		2015		2016		2015
GAAP Results:
Net Income ($ millions)	$	1,134	$	2,269	$	204	$	309
Diluted Earnings per Share	$	1.22	$	2.54	$	0.22	$	0.33
Adjusted(non-GAAP) Operating Results:
Net Income ($ millions)	$	2,488	$	2,227	$	410	$	347
Diluted Earnings per Share	$	2.68	$	2.49	$	0.44	$	0.38

“2016 was a monumental year for Exelon. We made great progress in the ongoing transformation of our company, with a focus on meeting our commitments to stakeholders via the PHI merger and the creation of the ZEC programs in both New York and Illinois that compensate our Nuclear plants for their carbon free attributes,” said Christopher M. Crane, Exelon President and CEO. “In addition, each of our operating companies turned in best-ever performance in a range of key metrics, which would not have been possible without the remarkable contributions of our 34,000 employees that work hard every day to keep the power and gas flowing for our customers.”

Fourth Quarter Operating Results

Exelon’s GAAP Net Income decreased to $0.22 per share in the fourth quarter of 2016 from $0.33 per share in the fourth quarter of 2015. Exelon’s Adjusted(non-GAAP) Operating Earnings increased to $0.44 per share in the fourth quarter of 2016 from $0.38 per share in the fourth quarter of 2015.

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Fourth quarter 2016 operating results include $0.05 per share of Pepco Holdings, LLC (PHI) Adjusted(non-GAAP) Operating Earnings, which was partially offset by incremental debt and equity costs incurred in connection with the merger. Adjusted(non-GAAP) Operating Earnings in the fourth quarter of 2016 also reflect the following favorable factors:

• Favorable impacts of decreased nuclear outage days at Generation;

• Favorable weather conditions at ComEd and PECO; and

• Higher utility earnings due to regulatory rate increases.

These factors were partially offset by:

• Lower capacity prices at Generation;

• Lower realized energy prices at Generation; and

• Increased depreciation and amortization expenses, primarily from an increase in capital expenditures across the operating companies.

Adjusted(non-GAAP) Operating Earnings for the fourth quarter of 2016 do not include the following items(after-tax) that were included in reported GAAP Net Income:

	(in millions)			(per diluted share)
Exelon GAAP Net Income	$	204		$	0.22
Mark-to-Market Impact of Economic Hedging Activities		(44	)		(0.05	)
Unrealized Losses Related to Nuclear Decommissioning Trust (NDT) Fund Investments		9			0.01
Amortization of Commodity Contract Intangibles		26			0.03
Merger and Integration Costs		23			0.02
Reassessment of State Deferred Income Taxes		10			0.01
Asset Retirement Obligation		(75	)		(0.08	)
Merger Commitments		38			0.04
Plant Retirements and Divestitures(1)		94			0.10
Cost Management Program		8			0.01
Curtailment of Generation Growth and Development Activities		57			0.06
Long-Lived Asset Impairments		(1	)		—
CENG Noncontrolling Interest		61			0.07
Exelon Adjusted(non-GAAP) Operating Earnings	$	410		$	0.44

(1) Includesafter-tax $154 million of incremental accelerated depreciation from June 2, 2016 through December 6, 2016, pursuant to the second quarter decision to early retire the Clinton and Quad Cities nuclear generating facilities, which decision was reversed in December 2016.

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Adjusted(non-GAAP) Operating Earnings for the fourth quarter of 2015 do not include the following items(after-tax) that were included in reported GAAP Net Income:

	(in millions)			(per diluted share)
Exelon GAAP Net Income	$	309		$	0.33
Unrealized Gains Related to NDT Fund Investments		(51	)		(0.05	)
Amortization of Commodity Contract Intangibles		10			0.01
Merger and Integration Costs		9			0.01
Long-Lived Asset Impairments		6			0.01
Reassessment of State Deferred Income Taxes		41			0.05
Reduction in State Income Tax Reserve		(10	)		(0.01	)
PHI Merger Related Redeemable Debt Exchange		13			0.01
CENG Noncontrolling Interest		20			0.02
Exelon Adjusted(non-GAAP) Operating Earnings	$	347		$	0.38

2017 Earnings Outlook

Exelon introduced a guidance range for 2017 Adjusted(non-GAAP) Operating Earnings of $2.50 to $2.80 per share. Operating Earnings guidance is based on the assumption of normal weather, which is determined based on historical average heating and cooling degree days for a30-year period in the respective utilities’ service territories, except at PHI, where a20-year period is used.

The outlook for 2017 Adjusted(non-GAAP) Operating Earnings for Exelon and its subsidiaries excludes the following items:

• Mark-to-market adjustments from economic hedging activities;

• Unrealized gains and losses from NDT fund investments to the extent not offset by contractual accounting as described in the notes to the consolidated financial statements;

• Certain costs incurred related to the PHI acquisition and pending acquisition of the James A. FitzPatrick Nuclear Power Plant;

• Certain costs incurred to achieve cost management program savings;

• Other unusual items; and

• One-time impacts of adopting new accounting standards.

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Fourth Quarter and Recent Highlights

• Reversal of Decision to Early Retire Clinton and Quad Cities Nuclear Facilities: On Dec. 7, 2016, the Future Energy Jobs Act was signed into law by the Governor of Illinois and included a Zero Emission Standard (ZES) providing compensation in the form of a Zero Emission Credit (ZEC). The Illinois ZES will have a10-year duration extending from June 1, 2017, through May 31, 2027. With the passage of the Illinois ZES, Generation has reversed its decision to permanently cease generation operations at the Clinton and Quad Cities nuclear generating plants, subject to prevailing over any potential administrative or legal challenges. Pursuant to this development, in December 2016 Exelon and Generation reversed approximately $120 million of theone-time charges initially recorded in June 2016 associated with the early retirements, primarily for employee-related costs and a materials and supplies inventory reserve adjustment, and adjusted the expected economic useful life for both facilities to 2027 for Clinton, commensurate with the end of the Illinois ZES, and to 2032 for Quad Cities, the end of its operating license.

• Nuclear Operations: Generation’s nuclear fleet, including its owned output from the Salem Generating Station and 100 percent of the Constellation Energy Group (CENG) units, produced 44,834 gigawatt-hours (GWh) in the fourth quarter of 2016, compared with 43,832 GWh in the fourth quarter of 2015. Excluding Salem, the Exelon-operated nuclear plants at ownership achieved a 94.2 percent capacity factor for the fourth quarter of 2016, compared with 93.3 percent for the fourth quarter of 2015. The number of planned refueling outage days totaled 71 in the fourth quarter of 2016, compared with 103 in the fourth quarter of 2015. There were 32non-refueling outage days in the fourth quarter of 2016, compared with 21 days in the fourth quarter of 2015.

• Fossil and Renewable Operations: The Dispatch Match rate for Generation’s gas and hydro fleet was 99.7 percent in the fourth quarter of 2016, compared with 97.3 percent in the fourth quarter of 2015. Energy Capture for the wind and solar fleet was 95.7 percent in the fourth quarter of 2016, compared with 95.3 percent in the fourth quarter of 2015.

• ComEd Electric Distribution Rate Case: On Dec. 6, 2016, the Illinois Commerce Commission issued its final order approving ComEd’s 2016 annual distribution formula rate update. The final order resulted in an increase to the revenue requirement of $127 million. The increase was set using an allowed return on capital of 6.69 percent (inclusive of an allowed ROE of 8.64 percent for 2016 less a reliability performance metric penalty of 5 basis points for the 2015 reconciliation). The rates took effect in January 2017.

• Pepco Maryland Electric Distribution Rate Case: On Nov. 15, 2016, the Maryland Public Service Commission approved an electric rate increase of $53 million based on an allowed ROE of 9.55 percent. The approved electric delivery rates became effective for services rendered on or after Nov. 15, 2016.

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• Settlement of Baltimore City Conduit Fee Dispute: On Nov. 30, 2016, the Baltimore City Board of Estimates approved a favorable settlement agreement entered into between BGE and the City of Baltimore to resolve certain disputes and pending litigation related to BGE’s use of the city-owned underground conduit system, resulting in a credit to expense in the fourth quarter.

• Financing Activities: On Dec. 12, 2016, DPL issued $175 million aggregate principal amount of its 4.15 percent First Mortgage Bonds, due May 15, 2045. The proceeds of the sale of the bonds were used by DPL to refinance maturing mortgage bonds, repay commercial paper and for general corporate purposes.

• Hedging Update: Exelon’s hedging program involves the hedging of commodity risk for Exelon’s expected generation, typically on a ratable basis over a three-year period. Expected generation is the volume of energy that best represents our commodity position in energy markets from owned or contracted generating facilities upon a simulated dispatch model that makes assumptions regarding future market conditions, which are calibrated to market quotes for power, fuel, load following products, and options. The proportion of expected generation hedged as of Dec. 31, 2016, was 91 percent to 94 percent for 2017, 56 percent to 59 percent for 2018, and 28 percent to 31 percent for 2019. The primary objective of Exelon’s hedging program is to manage market risks and protect the value of its generation and its investment-grade balance sheet, while preserving its ability to participate in improving long-term market fundamentals.

Operating Company Results

ComEd consists of electricity transmission and distribution operations in northern Illinois.

ComEd’s fourth quarter 2016 GAAP Net Income was $80 million, compared with net income of $87 million in the fourth quarter of 2015. Adjusted(non-GAAP) Operating Earnings for the fourth quarter of 2016 do not include merger and integration costs that were included in reported GAAP earnings. A reconciliation of Adjusted(non-GAAP) Operating Earnings to GAAP Net Income is presented in the table below:

($ millions)	4Q16		4Q15
ComEd GAAP Net Income	$	80	$	87
Merger and Integration Costs		1		—
ComEd Adjusted(non-GAAP) Operating Earnings	$	81	$	87

ComEd’s Adjusted(non-GAAP) Operating Earnings in the fourth quarter of 2016 decreased $6 million compared with the same quarter in 2015, primarily due to the impacts of certainone-time ordered and proposed adjustments to ComEd’s 2015 and 2016 electric distribution formula revenues.

For the fourth quarter of 2016, heating degree-days in the ComEd service territory were up 18.6 percent relative to the same period in 2015 and 11.2 percent below normal. Total retail electric deliveries increased 3.3 percent in the fourth quarter of 2016 compared with the same period in 2015.

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Weather-normalized retail electric deliveries remained relatively consistent in the fourth quarter of 2016 relative to 2015.

PECO consists of electricity transmission and distribution operations and retail natural gas distribution operations in southeastern Pennsylvania.

PECO’s fourth quarter 2016 GAAP Net Income was $92 million, compared with $79 million in the fourth quarter of 2015. Adjusted(non-GAAP) Operating Earnings for the fourth quarter of 2016 do not include merger and integration costs and cost management program costs that were included in reported GAAP earnings. A reconciliation of GAAP Net Income to Adjusted(non-GAAP) Operating Earnings is presented in the table below:

($ millions)	4Q16		4Q15
PECO GAAP Net Income	$	92	$	79
Merger and Integration Costs		1		—
Cost Management Program		1		—
PECO Adjusted(non-GAAP) Operating Earnings	$	94	$	79

PECO’s Adjusted(non-GAAP) Operating Earnings in the fourth quarter of 2016 increased $15 million from the same quarter in 2015, primarily due to favorable weather and increased electric distribution revenue pursuant to increased rates effective January 2016, partially offset by an increase in uncollectible accounts expense.

For the fourth quarter of 2016, heating degree-days in the PECO service territory were up 45.3 percent relative to the same period in 2015 and were 12.7 percent below normal. Cooling degree-days were up 100.0 percent from prior year and 82.6 percent above normal. Total retail electric deliveries were up 4.6 percent compared with the fourth quarter of 2015. Natural gas deliveries (including both retail and transportation components) in the fourth quarter of 2016 were up 26.1 percent compared with the same period in 2015.

Weather-normalized retail electric deliveries decreased 1.3 percent in the fourth quarter of 2016 compared with the same period in 2015, while gas deliveries remained relatively consistent.

BGE consists of electricity transmission and distribution operations and retail natural gas distribution operations in central Maryland.

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BGE’s fourth quarter 2016 GAAP Net Income was $103 million, compared with $74 million in the fourth quarter of 2015. Adjusted(non-GAAP) Operating Earnings for the fourth quarter of 2016 do not include merger and integration costs and cost management program costs that were included in reported GAAP earnings. A reconciliation of GAAP Net Income to Adjusted(non-GAAP) Operating Earnings is presented in the table below:

($ millions)	4Q16		4Q15
BGE GAAP Net Income	$	103	$	74
Merger and Integration Costs		1		—
Cost Management Program		1		—
BGE Adjusted(non-GAAP) Operating Earnings	$	105	$	74

BGE’s Adjusted(non-GAAP) Operating Earnings in the fourth quarter of 2016 increased $31 million from the same quarter in 2015, primarily due to increased distribution revenue pursuant to increased rates effective June 2016, decreased uncollectible accounts expense and the settlement of the Baltimore City conduit fee dispute, partially offset by increased amortization due to the initiation of cost recovery of the AMI programs. Due to revenue decoupling, BGE is not affected by actual weather with the exception of major storms.

PHI 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.

PHI’s fourth quarter 2016 GAAP Net Income was $30 million. Adjusted(non-GAAP) Operating Earnings for the fourth quarter of 2016 do not include merger and integration costs and merger commitments that were included in reported GAAP Net Income. A reconciliation of GAAP Net Income to Adjusted(non-GAAP) Operating Earnings is presented in the table below:

($ millions)	4Q16
PHI GAAP Net Income	$	30
Merger and Integration Costs		4
Merger Commitments		8
PHI Adjusted(non-GAAP) Operating Earnings	$	42

PHI’s Adjusted(non-GAAP) Operating Earnings in the fourth quarter of 2016 includes the impact from approved rate case orders in 2016.

Generation 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’s fourth quarter 2016 GAAP Net Loss was $41 million, compared with Net Income of $154 million in the fourth quarter of 2015. Adjusted(non-GAAP) Operating Earnings for the fourth quarter of 2016 and 2015 do not include various items (after- tax) that were included in reported GAAP earnings. A reconciliation of GAAP Net (Loss) Income to Adjusted(non-GAAP) Operating Earnings is presented in the table below:

($ millions)	4Q16			4Q15
Generation GAAP Net (Loss) Income	$	(41	)	$	154
Mark-to-Market Impact of Economic Hedging Activities		(44	)		—
Unrealized Losses (Gains) Related to NDT Fund Investments		9			(51	)
Amortization of Commodity Contract Intangibles		26			10
Merger and Integration Costs		15			2
Reassessment of State Deferred Income Taxes		14			11
Asset Retirement Obligation		(75	)		—
Merger Commitments		40			—
Plant Retirements and Divestitures(1)		94			—
Cost Management Program		6			—
Curtailment of Generation Growth and Development Activities		57			—
Long-Lived Asset Impairments		—			6
Reduction in State Income Tax Reserve		—			(10	)
CENG Noncontrolling Interest		61			20
Generation Adjusted(non-GAAP) Operating Earnings	$	162		$	142

(1) Includesafter-tax $154 million of incremental accelerated depreciation from June 2, 2016 through December 6, 2016, pursuant to the second quarter decision to early retire the Clinton and Quad Cities nuclear generating facilities, which decision was reversed in December 2016.

Generation’s Adjusted(non-GAAP) Operating Earnings in the fourth quarter of 2016 increased $20 million compared with the same quarter in 2015, primarily due to decreased nuclear outage days, the impacts of Generation’s gas portfolio, the impact of the Ginna Reliability Support Services Agreement and the inclusion of ConEdison Solutions results in 2016, partially offset by lower realized energy prices, decreased capacity prices and increased depreciation expense.

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 thenon-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 measures provided in this earnings release and attachments. This press release and earnings release attachments provide reconciliations of adjusted

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(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 Form8-K on February 8, 2017.

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 Exelon Corporation, Exelon Generation Company, LLC, Commonwealth Edison Company, PECO Energy Company, Baltimore Gas and Electric Company, Pepco Holdings LLC (PHI), Potomac Electric Power Company, Delmarva Power & Light Company, and Atlantic City Electric Company (Registrants) include those factors discussed herein, as well as the items discussed in (1) Exelon’s 2015 Annual Report on Form10-K in (a) ITEM 1A. Risk Factors, (b) ITEM 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations and (c) ITEM 8. Financial Statements and Supplementary Data: Note 23; (2) PHI’s 2015 Annual Report on Form10-K in (a) ITEM 1A. Risk Factors, (b) ITEM 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations and (c) ITEM 8. Financial Statements and Supplementary Data: Note 16; (3) Exelon’s Third Quarter 2016 Quarterly Report on Form10-Q in (a) Part II, Other Information, ITEM 1A. Risk Factors; (b) Part 1, Financial Information, ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations and (c) Part I, Financial Information, ITEM 1. Financial Statements: Note 18 and (4) 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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Exelon Corporation (NYSE: EXC) is a Fortune 100 energy company with the largest number of utility customers in the U.S. Exelon does business in 48 states, the District of Columbia and Canada and had 2016 revenue of $31.4 billion. Exelon’s six utilities deliver electricity and natural gas to approximately 10 million customers in Delaware, the District of Columbia, Illinois, Maryland, New Jersey and Pennsylvania through its Atlantic City Electric, BGE, ComEd, Delmarva Power, PECO and Pepco subsidiaries. Exelon is one of the largest competitive U.S. power generators, with more than 32,700 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 2.5 million residential, public sector and business customers, including more thantwo-thirds of the Fortune 100. Follow Exelon on Twitter @Exelon.

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Earnings Release Attachments

Table of Contents

Consolidating Statements of Operations - Three Months Ended December 31, 2016 and 2015	1
Consolidating Statements of Operations - Twelve Months Ended December 31, 2016 and 2015	2
Business Segment Comparative Statements of Operations - Generation and ComEd - Three and Twelve Months Ended December 31, 2016 and 2015	3
Business Segment Comparative Statements of Operations - PECO and BGE - Three and Twelve Months Ended December 31, 2016 and 2015	4
Business Segment Comparative Statements of Operations - PHI and Other - Three and Twelve Months Ended December 31, 2016 and 2015	5
Consolidated Balance Sheets - December 31, 2016 and 2015	6
Consolidated Statements of Cash Flows - Twelve Months Ended December 31, 2016 and 2015	7
Reconciliation of GAAP Consolidated Statements of Operations to Adjusted(non-GAAP) Operating Earnings - Exelon - Three Months Ended December 31, 2016 and 2015	8
Reconciliation of GAAP Consolidated Statements of Operations to Adjusted(non-GAAP) Operating Earnings - Exelon - Twelve Months Ended December 31, 2016 and 2015	10
Reconciliation of Adjusted(non-GAAP) Operating Earnings to GAAP Earnings By Business Segment - Three Months Ended December 31, 2016 and 2015	12
Reconciliation of Adjusted(non-GAAP) Operating Earnings to GAAP Earnings By Business Segment - Twelve Months Ended December 31, 2016 and 2015	14
Reconciliation of GAAP Consolidated Statements of Operations to Adjusted(non-GAAP) Operating Earnings - Generation - Three and Twelve Months Ended December 31, 2016 and 2015	16
Reconciliation of GAAP Consolidated Statements of Operations to Adjusted(non-GAAP) Operating Earnings - ComEd - Three and Twelve Months Ended December 31, 2016 and 2015	18
Reconciliation of GAAP Consolidated Statements of Operations to Adjusted(non-GAAP) Operating Earnings - PECO - Three and Twelve Months Ended December 31, 2016 and 2015	19
Reconciliation of GAAP Consolidated Statements of Operations to Adjusted(non-GAAP) Operating Earnings - BGE - Three and Twelve Months Ended December 31, 2016 and 2015	20
Reconciliation of GAAP Consolidated Statements of Operations to Adjusted(non-GAAP) Operating Earnings - PHI - Three and Twelve Months Ended December 31, 2016 and 2015	21
Reconciliation of GAAP Consolidated Statements of Operations to Adjusted(non-GAAP) Operating Earnings - Other - Three and Twelve Months Ended December 31, 2016 and 2015	22
Exelon Generation Statistics - Three Months Ended December 31, 2016, September 30, 2016, June 30, 2016, March 31, 2016, and December 31, 2015	24
Exelon Generation Statistics - Twelve Months Ended December 31, 2016 and 2015	25
ComEd Statistics - Three and Twelve Months Ended December 31, 2016 and 2015	26
PECO Statistics - Three and Twelve Months Ended December 31, 2016 and 2015	27
BGE Statistics - Three and Twelve Months Ended December 31, 2016 and 2015	29
Pepco Statistics - Three and Twelve Months Ended December 31, 2016 and 2015	31
DPL Statistics - Three and Twelve Months Ended December 31, 2016 and 2015	32
ACE Statistics - Three and Twelve Months Ended December 31, 2016 and 2015	34

EXELON CORPORATION

Consolidating Statements of Operations

(unaudited)

(in millions)

	Three Months Ended December 31, 2016
	Generation			ComEd			PECO			BGE			PHI (a)			Other (b)			Exelon Consolidated
Operating revenues	$	4,388		$	1,223		$	701		$	812		$	1,078		$	(327	)	$	7,875
Operating expenses
Purchased power and fuel		2,221			317			238			300			410			(308	)		3,178
Operating and maintenance		1,308			417			206			149			310			(19	)		2,371
Depreciation and amortization		550			201			69			115			160			20			1,115
Taxes other than income		126			71			38			58			107			8			408
Total operating expenses		4,205			1,006			551			622			987			(299	)		7,072
Gain (Loss) on sales of assets		(89	)		—			—			—			(1	)		1			(89	)
Operating income (loss)		94			217			150			190			90			(27	)		714
Other income and (deductions)
Interest expense, net		(92	)		(87	)		(31	)		(27	)		(61	)		(58	)		(356	)
Other, net		6			8			2			5			13			(1	)		33
Total other income and (deductions)		(86	)		(79	)		(29	)		(22	)		(48	)		(59	)		(323	)
Income (loss) before income taxes		8			138			121			168			42			(86	)		391
Income taxes		(3	)		58			29			65			12			(25	)		136
Equity in (losses) earnings of unconsolidated affiliates		(9	)		—			—			—			—			1			(8	)
Net income (loss)		2			80			92			103			30			(60	)		247
Net income attributable to noncontrolling interests		43			—			—			—			—			—			43
Net (loss) income attributable to common shareholders	$	(41	)	$	80		$	92		$	103		$	30		$	(60	)	$	204
	Three Months Ended December 31, 2015
	Generation			ComEd			PECO			BGE			PHI (a)			Other (b)			Exelon Consolidated
Operating revenues	$	4,294		$	1,196		$	645		$	746		$	—		$	(179	)	$	6,702
Operating expenses
Purchased power and fuel		2,220			327			236			268			—			(177	)		2,874
Operating and maintenance		1,447			402			184			185			—			(14	)		2,204
Depreciation and amortization		280			179			62			94			—			18			633
Taxes other than income		121			72			36			55			—			8			292
Total operating expenses		4,068			980			518			602			—			(165	)		6,003
Gain on sales of assets		4			1			1			—			—			2			8
Operating income (loss)		230			217			128			144			—			(12	)		707
Other income and (deductions)
Interest expense, net		(96	)		(83	)		(30	)		(24	)		—			(45	)		(278	)
Other, net		135			7			2			5			—			(15	)		134
Total other income and (deductions)		39			(76	)		(28	)		(19	)		—			(60	)		(144	)
Income (loss) before income taxes		269			141			100			125			—			(72	)		563
Income taxes		131			54			21			48			—			14			268
Equity in (losses) earnings of unconsolidated affiliates		(5	)		—			—			—			—			1			(4	)
Net income (loss)		133			87			79			77			—			(85	)		291
Net (loss) income attributable to noncontrolling interests and preference stock dividends		(21	)		—			—			3			—			—			(18	)
Net income (loss) attributable to common shareholders	$	154		$	87		$	79		$	74		$	—		$	(85	)	$	309

(a) PHI includes the consolidated results of Potomac Electric Power Company, Delmarva Power & Light Company, and Atlantic City Electric Company from October 1, 2016 to December 31, 2016.

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

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EXELON CORPORATION

Consolidating Statements of Operations

(unaudited)

(in millions)

	Twelve Months Ended December 31, 2016
	Generation			ComEd			PECO			BGE			PHI (a)			Other (b)			Exelon Consolidated
Operating revenues	$	17,751		$	5,254		$	2,994		$	3,233		$	3,643		$	(1,515	)	$	31,360
Operating expenses
Purchased power and fuel		8,830			1,458			1,047			1,294			1,447			(1,436	)		12,640
Operating and maintenance		5,641			1,530			811			737			1,233			96			10,048
Depreciation and amortization		1,879			775			270			423			515			74			3,936
Taxes other than income		506			293			164			229			354			30			1,576
Total operating expenses		16,856			4,056			2,292			2,683			3,549			(1,236	)		28,200
Gain (Loss) on sales of assets		(59	)		7			—			—			(1	)		5			(48	)
Operating income (loss)		836			1,205			702			550			93			(274	)		3,112
Other income and (deductions)
Interest expense, net		(364	)		(461	)		(123	)		(103	)		(195	)		(290	)		(1,536	)
Other, net		401			(65	)		8			21			44			4			413
Total other income and (deductions)		37			(526	)		(115	)		(82	)		(151	)		(286	)		(1,123	)
Income (loss) before income taxes		873			679			587			468			(58	)		(560	)		1,989
Income taxes		290			301			149			174			3			(156	)		761
Equity in (losses) earnings of unconsolidated affiliates		(25	)		—			—			—			—			1			(24	)
Net income (loss)		558			378			438			294			(61	)		(403	)		1,204
Net income attributable to noncontrolling interests and preference stock dividends		62			—			—			8			—			—			70
Net income (loss) attributable to common shareholders	$	496		$	378		$	438		$	286		$	(61	)	$	(403	)	$	1,134
	Twelve Months Ended December 31, 2015
	Generation			ComEd			PECO			BGE			PHI (a)			Other (b)			Exelon Consolidated
Operating revenues	$	19,135		$	4,905		$	3,032		$	3,135		$	—		$	(760	)	$	29,447
Operating expenses
Purchased power and fuel		10,021			1,319			1,190			1,305			—			(751	)		13,084
Operating and maintenance		5,308			1,567			794			683			—			(30	)		8,322
Depreciation and amortization		1,054			707			260			366			—			63			2,450
Taxes other than income		489			296			160			224			—			31			1,200
Total operating expenses		16,872			3,889			2,404			2,578			—			(687	)		25,056
Gain on sales of assets		12			1			2			1			—			2			18
Operating income (loss)		2,275			1,017			630			558			—			(71	)		4,409
Other income and (deductions)
Interest expense, net		(365	)		(332	)		(114	)		(99	)		—			(123	)		(1,033	)
Other, net		(60	)		21			5			18			—			(30	)		(46	)
Total other income and (deductions)		(425	)		(311	)		(109	)		(81	)		—			(153	)		(1,079	)
Income (loss) before income taxes		1,850			706			521			477			—			(224	)		3,330
Income taxes		502			280			143			189			—			(41	)		1,073
Equity in (losses) earnings of unconsolidated affiliates		(8	)		—			—			—			—			1			(7	)
Net income (loss)		1,340			426			378			288			—			(182	)		2,250
Net (loss) income attributable to noncontrolling interests and preference stock dividends		(32	)		—			—			13			—			—			(19	)
Net income (loss) attributable to common shareholders	$	1,372		$	426		$	378		$	275		$	—		$	(182	)	$	2,269

(a) PHI includes the consolidated results of Potomac Electric Power Company, Delmarva Power & Light Company, and Atlantic City Electric Company from March 24, 2016 to December 31, 2016.

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

2

EXELON CORPORATION

Business Segment Comparative Statements of Operations

(unaudited)

(in millions)

	Generation
	Three Months Ended December 31,									Twelve Months Ended December 31,
	2016			2015			Variance			2016			2015			Variance
Operating revenues	$	4,388		$	4,294		$	94		$	17,751		$	19,135		$	(1,384	)
Operating expenses
Purchased power and fuel		2,221			2,220			1			8,830			10,021			(1,191	)
Operating and maintenance		1,308			1,447			(139	)		5,641			5,308			333
Depreciation and amortization		550			280			270			1,879			1,054			825
Taxes other than income		126			121			5			506			489			17
Total operating expenses		4,205			4,068			137			16,856			16,872			(16	)
Gain (Loss) on sales of assets		(89	)		4			(93	)		(59	)		12			(71	)
Operating income		94			230			(136	)		836			2,275			(1,439	)
Other income and (deductions)
Interest expense, net		(92	)		(96	)		4			(364	)		(365	)		1
Other, net		6			135			(129	)		401			(60	)		461
Total other income and (deductions)		(86	)		39			(125	)		37			(425	)		462
Income before income taxes		8			269			(261	)		873			1,850			(977	)
Income taxes		(3	)		131			(134	)		290			502			(212	)
Equity in losses of unconsolidated affiliates		(9	)		(5	)		(4	)		(25	)		(8	)		(17	)
Net income		2			133			(131	)		558			1,340			(782	)
Net income (loss) attributable to noncontrolling interests		43			(21	)		64			62			(32	)		94
Net (loss) income attributable to membership interest	$	(41	)	$	154		$	(195	)	$	496		$	1,372		$	(876	)
	ComEd
	Three Months Ended December 31,									Twelve Months Ended December 31,
	2016			2015			Variance			2016			2015			Variance
Operating revenues	$	1,223		$	1,196		$	27		$	5,254		$	4,905		$	349
Operating expenses
Purchased power		317			327			(10	)		1,458			1,319			139
Operating and maintenance		417			402			15			1,530			1,567			(37	)
Depreciation and amortization		201			179			22			775			707			68
Taxes other than income		71			72			(1	)		293			296			(3	)
Total operating expenses		1,006			980			26			4,056			3,889			167
Gain on sales of assets		—			1			(1	)		7			1			6
Operating income		217			217			—			1,205			1,017			188
Other income and (deductions)
Interest expense, net		(87	)		(83	)		(4	)		(461	)		(332	)		(129	)
Other, net		8			7			1			(65	)		21			(86	)
Total other income and (deductions)		(79	)		(76	)		(3	)		(526	)		(311	)		(215	)
Income before income taxes		138			141			(3	)		679			706			(27	)
Income taxes		58			54			4			301			280			21
Net income	$	80		$	87		$	(7	)	$	378		$	426		$	(48	)

3

EXELON CORPORATION

Business Segment Comparative Statements of Operations

(unaudited)

(in millions)

	PECO
	Three Months Ended December 31,									Twelve Months Ended December 31,
	2016			2015			Variance			2016			2015			Variance
Operating revenues	$	701		$	645		$	56		$	2,994		$	3,032		$	(38	)
Operating expenses
Purchased power and fuel		238			236			2			1,047			1,190			(143	)
Operating and maintenance		206			184			22			811			794			17
Depreciation and amortization		69			62			7			270			260			10
Taxes other than income		38			36			2			164			160			4
Total operating expenses		551			518			33			2,292			2,404			(112	)
Gain on sales of assets		—			1			(1	)		—			2			(2	)
Operating income		150			128			22			702			630			72
Other income and (deductions)
Interest expense, net		(31	)		(30	)		(1	)		(123	)		(114	)		(9	)
Other, net		2			2			—			8			5			3
Total other income and (deductions)		(29	)		(28	)		(1	)		(115	)		(109	)		(6	)
Income before income taxes		121			100			21			587			521			66	��
Income taxes		29			21			8			149			143			6
Net income attributable to common shareholder	$	92		$	79		$	13		$	438		$	378		$	60
	BGE
	Three Months Ended December 31,									Twelve Months Ended December 31,
	2016			2015			Variance			2016			2015			Variance
Operating revenues	$	812		$	746		$	66		$	3,233		$	3,135		$	98
Operating expenses
Purchased power and fuel		300			268			32			1,294			1,305			(11	)
Operating and maintenance		149			185			(36	)		737			683			54
Depreciation and amortization		115			94			21			423			366			57
Taxes other than income		58			55			3			229			224			5
Total operating expenses		622			602			20			2,683			2,578			105
Gain on sales of assets		—			—			—			—			1			(1	)
Operating income		190			144			46			550			558			(8	)
Other income and (deductions)
Interest expense, net		(27	)		(24	)		(3	)		(103	)		(99	)		(4	)
Other, net		5			5			—			21			18			3
Total other income and (deductions)		(22	)		(19	)		(3	)		(82	)		(81	)		(1	)
Income before income taxes		168			125			43			468			477			(9	)
Income taxes		65			48			17			174			189			(15	)
Net income		103			77			26			294			288			6
Preference stock dividends		—			3			(3	)		8			13			(5	)
Net income attributable to common shareholders	$	103		$	74		$	29		$	286		$	275		$	11

4

EXELON CORPORATION

Business Segment Comparative Statements of Operations

(unaudited)

(in millions)

	PHI (a)
	Three Months Ended December 31,									Twelve Months Ended December 31,
	2016			2015			Variance			2016			2015			Variance
Operating revenues	$	1,078		$	—		$	1,078		$	3,643		$	—		$	3,643
Operating expenses
Purchased power and fuel		410			—			410			1,447			—			1,447
Operating and maintenance		310			—			310			1,233			—			1,233
Depreciation and amortization		160			—			160			515			—			515
Taxes other than income		107			—			107			354			—			354
Total operating expenses		987			—			987			3,549			—			3,549
Loss on sales of assets		(1	)		—			(1	)		(1	)		—			(1	)
Operating income		90			—			90			93			—			93
Other income and (deductions)
Interest expense, net		(61	)		—			(61	)		(195	)		—			(195	)
Other, net		13			—			13			44			—			44
Total other income and (deductions)		(48	)		—			(48	)		(151	)		—			(151	)
Income (loss) before income taxes		42			—			42			(58	)		—			(58	)
Income taxes		12			—			12			3			—			3
Net income (loss) attributable to common shareholders	$	30		$	—		$	30		$	(61	)	$	—		$	(61	)
	Other (b)
	Three Months Ended December 31,									Twelve Months Ended December 31,
	2016			2015			Variance			2016			2015			Variance
Operating revenues	$	(327	)	$	(179	)	$	(148	)	$	(1,515	)	$	(760	)	$	(755	)
Operating expenses
Purchased power and fuel		(308	)		(177	)		(131	)		(1,436	)		(751	)		(685	)
Operating and maintenance		(19	)		(14	)		(5	)		96			(30	)		126
Depreciation and amortization		20			18			2			74			63			11
Taxes other than income		8			8			—			30			31			(1	)
Total operating expenses		(299	)		(165	)		(134	)		(1,236	)		(687	)		(549	)
Gain on sales of assets		1			2			(1	)		5			2			3
Operating loss		(27	)		(12	)		(15	)		(274	)		(71	)		(203	)
Other income and (deductions)
Interest expense, net		(58	)		(45	)		(13	)		(290	)		(123	)		(167	)
Other, net		(1	)		(15	)		14			4			(30	)		34
Total other income and (deductions)		(59	)		(60	)		1			(286	)		(153	)		(133	)
Loss before income taxes		(86	)		(72	)		(14	)		(560	)		(224	)		(336	)
Income taxes		(25	)		14			(39	)		(156	)		(41	)		(115	)
Equity in earnings of unconsolidated affiliates		1			1			—			1			1			—
Net loss attributable to common shareholders	$	(60	)	$	(85	)	$	25		$	(403	)	$	(182	)	$	(221	)

(a) PHI includes the consolidated results of Potomac Electric Power Company, Delmarva Power & Light Company, and Atlantic City Electric Company from March 24, 2016 to December 31, 2016 for twelve months ended and October 1, 2016 to December 31, 2016 for three months ended. Exelon did not own PHI in 2015.

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

5

EXELON CORPORATION

Consolidated Balance Sheets

(in millions)

	December 31, 2016			December 31, 2015
Assets	(unaudited)
Current assets
Cash and cash equivalents	$	635		$	6,502
Restricted cash and cash equivalents		253			205
Deposit with IRS		1,250			—
Accounts receivable, net
Customer		4,158			3,187
Other		1,201			912
Mark-to-market derivative assets		917			1,365
Unamortized energy contract assets		88			86
Inventories, net
Fossil fuel		364			462
Materials and supplies		1,274			1,104
Regulatory assets		1,342			759
Other		930			752
Total current assets		12,412			15,334
Property, plant and equipment, net		71,555			57,439
Deferred debits and other assets
Regulatory assets		10,046			6,065
Nuclear decommissioning trust funds		11,061			10,342
Investments		629			639
Goodwill		6,677			2,672
Mark-to-market derivative assets		492			758
Unamortized energy contracts assets		447			484
Pledged assets for Zion Station decommissioning		113			206
Other		1,472			1,445
Total deferred debits and other assets		30,937			22,611
Total assets	$	114,904		$	95,384
Liabilities and shareholders’ equity
Current liabilities
Short-term borrowings	$	1,267		$	533
Long-term debt due within one year		2,430			1,500
Accounts payable		3,441			2,883
Accrued expenses		3,460			2,376
Payables to affiliates		8			8
Regulatory liabilities		602			369
Mark-to-market derivative liabilities		282			205
Unamortized energy contract liabilities		407			100
Renewable energy credit obligation		428			302
PHI Merger related obligation		151			—
Other		981			842
Total current liabilities		13,457			9,118
Long-term debt		31,575			23,645
Long-term debt to financing trusts		641			641
Deferred credits and other liabilities
Deferred income taxes and unamortized investment tax credits		18,138			13,776
Asset retirement obligations		9,111			8,585
Pension obligations		4,248			3,385
Non-pension postretirement benefit obligations		1,848			1,618
Spent nuclear fuel obligation		1,024			1,021
Regulatory liabilities		4,187			4,201
Mark-to-market derivative liabilities		392			374
Unamortized energy contract liabilities		830			117
Payable for Zion Station decommissioning		14			90
Other		1,827			1,491
Total deferred credits and other liabilities		41,619			34,658
Total liabilities		87,292			68,062
Commitments and contingencies
Contingently redeemable noncontrolling interest		—			28
Shareholders’ equity
Common stock		18,794			18,676
Treasury stock, at cost		(2,327	)		(2,327	)
Retained earnings		12,030			12,068
Accumulated other comprehensive loss, net		(2,660	)		(2,624	)
Total shareholders’ equity		25,837			25,793
BGE preference stock not subject to mandatory redemption		—			193
Noncontrolling interests		1,775			1,308
Total equity		27,612			27,294
Total liabilities and shareholders’ equity	$	114,904		$	95,384

6

EXELON CORPORATION

Consolidated Statements of Cash Flows

(unaudited)

(in millions)

	Twelve Months Ended December 31,
	2016			2015
Cash flows from operating activities
Net income	$	1,204		$	2,250
Adjustments to reconcile net income to net cash flows provided by operating activities:
Depreciation, amortization, and accretion, including nuclear fuel and energy contract amortization		5,576			3,987
Impairments of long-lived assets		306			36
(Gain) Loss on sales of assets		48			(18	)
Deferred income taxes and amortization of investment tax credits		664			752
Net fair value changes related to derivatives		24			(367	)
Net realized and unrealized (gains) losses on nuclear decommissioning trust fund investments		(229	)		131
Othernon-cash operating activities		1,333			1,109
Changes in assets and liabilities:
Accounts receivable		(432	)		240
Inventories		7			4
Accounts payable and accrued expenses		771			(121	)
Option premiums (paid) received, net		(66	)		58
Collateral received, net		931			347
Income taxes		576			97
Pension andnon-pension postretirement benefit contributions		(397	)		(502	)
Deposit with IRS		(1,250	)		—
Other assets and liabilities		(632	)		(387	)
Net cash flows provided by operating activities		8,434			7,616
Cash flows from investing activities
Capital expenditures		(8,565	)		(7,624	)
Proceeds from termination of direct financing lease investment		360			—
Proceeds from nuclear decommissioning trust fund sales		9,496			6,895
Investment in nuclear decommissioning trust funds		(9,738	)		(7,147	)
Acquisitions of businesses, net		(6,934	)		(40	)
Proceeds from sales of long-lived assets		61			147
Change in restricted cash		(42	)		66
Other investing activities		(130	)		(119	)
Net cash flows used in investing activities		(15,492	)		(7,822	)
Cash flows from financing activities
Changes in short-term borrowings		(353	)		80
Proceeds from short-term borrowings with maturities greater than 90 days		240			—
Repayments on short-term borrowings with maturities greater than 90 days		(462	)		—
Issuance of long-term debt		4,716			6,709
Retirement of long-term debt		(1,936	)		(2,687	)
Issuance of common stock		—			1,868
Redemption of preference stock		(190	)		—
Distributions to noncontrolling interests of consolidated VIE		—			—
Dividends paid on common stock		(1,166	)		(1,105	)
Proceeds from employee stock plans		55			32
Sale of noncontrolling interest		372			—
Other financing activities		(85	)		(67	)
Net cash flows provided by financing activities		1,191			4,830
(Decrease) Increase in cash and cash equivalents		(5,867	)		4,624
Cash and cash equivalents at beginning of period		6,502			1,878
Cash and cash equivalents at end of period	$	635		$	6,502

7

EXELON CORPORATION

Reconciliation of GAAP Consolidated Statements of Operations

to Adjusted(non-GAAP) Operating Earnings

(unaudited)

(in millions, except per share data)

	Three Months Ended December 31, 2016										Three Months Ended December 31, 2015
	GAAP (a)			Adjustments				Adjusted Non-GAAP			GAAP (a)			Adjustments				Adjusted Non-GAAP
Operating revenues	$	7,875		$	177		(b),(d)	$	8,052		$	6,702		$	(20	)	(b),(d)	$	6,682
Operating expenses
Purchased power and fuel		3,178			184		(b),(d),(i)		3,362			2,874			(33	)	(b),(d)		2,841
Operating and maintenance		2,371			107		(e),(g),(h), (i),(j),(k)		2,478			2,204			(24	)	(e),(l)		2,180
Depreciation and amortization		1,115			(251	)	(i)		864			633			—				633
Taxes other than income		408			—				408			292			—				292
Total operating expenses		7,072			40				7,112			6,003			(57	)			5,946
Gain (Loss) on sales of assets		(89	)		89				—			8			—				8
Operating income		714			226				940			707			37				744
Other income and (deductions)
Interest expense, net		(356	)		—				(356	)		(278	)		—				(278	)
Other, net		33			37		(c),(i),(k)		70			134			(73	)	(c),(n)		61
Total other income and (deductions)		(323	)		37				(286	)		(144	)		(73	)			(217	)
Income before income taxes		391			263				654			563			(36	)			527
Income taxes		136			118		(b),(c),(d), (e),(f),(g), (h),(i),(j), (k)		254			268			(54	)	(b),(c),(d), (e),(f),(l), (m),(n)		214
Equity in losses of unconsolidated affiliates		(8	)		—				(8	)		(4	)		—				(4	)
Net income		247			145				392			291			18				309
Net income (loss) attributable to noncontrolling interests and preference stock dividends		43			(61	)	(o)		(18	)		(18	)		(20	)	(o)		(38	)
Net income attributable to common shareholders	$	204		$	206			$	410		$	309		$	38			$	347
Effective tax rate		34.8	%						38.8	%		47.6	%						40.6	%
Earnings per average common share
Basic	$	0.22		$	0.22			$	0.44		$	0.34		$	0.04			$	0.38
Diluted	$	0.22		$	0.22			$	0.44		$	0.33		$	0.05			$	0.38
Average common shares outstanding
Basic		925							925			921							921
Diluted		928							928			924							924
Effect of adjustments on earnings per average diluted common share recorded in accordance with GAAP:
Mark-to-market impact of economic hedging activities (b)				$	(0.05	)								$	—
Unrealized losses (gains) related to NDT fund investments (c)					0.01										(0.05	)
Amortization of commodity contract intangibles (d)					0.03										0.01
Merger and integration costs (e)					0.02										0.01
Reassessment of state deferred income taxes (f)					0.01										0.05
Asset retirement obligation (g)					(0.08	)									—
Merger commitments (h)					0.04										—
Plant retirements and divestitures (i)					0.10										—
Cost management program (j)					0.01										—
Curtailment of Generation growth and development activities (k)					0.06										—
Long-lived asset impairment (l)					—										0.01
Reduction in state income tax reserve (m)					—										(0.01	)
PHI merger related redeemable debt exchange (n)					—										0.01
Noncontrolling interest (o)					0.07										0.02
Total adjustments				$	0.22									$	0.05

For the three months ended December 31, 2016, includes financial results for PHI. Therefore, the results of operations from 2016 and 2015 are not comparable for Exelon. The explanations below identify any other significant or unusual items affecting the results of operations.

(a) Results reported in accordance with accounting principles generally accepted in the United States (GAAP).

(b) Adjustment to exclude themark-to-market impact of Exelon’s economic hedging activities, net of intercompany eliminations.

(c) Adjustment to exclude the unrealized gains and losses on NDT fund investments to the extent not offset by contractual accounting as described in the notes to the consolidated financial statements.

8

(d) Adjustment to exclude thenon-cash amortization of intangible assets, net, related to commodity contracts recorded at fair value related to the Integrys acquisition in 2015 and the Integrys and ConEdison Solutions acquisitions in 2016.

(e) 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 and pending FitzPatrick acquisition.

(f) Adjustment to exclude thenon-cash impact of the remeasurement of state deferred income taxes, primarily as a result of changes in forecasted apportionment.

(g) Adjustment to exclude anon-cash benefit pursuant to the annual update of the Generation nuclear decommissioning obligation related to thenon-regulatory units.

(h) Adjustments to exclude costs incurred as part of the settlement orders approving the PHI acquisition and in 2016, a charge related to a 2012 CEG merger commitment.

(i) Adjustment to primarily exclude incremental accelerated depreciation and amortization expenses from June 2, 2016 through December 6, 2016 pursuant to the second quarter decision to early retire the Clinton and Quad Cities nuclear generating facilities, which decision was reversed in December 2016, partially offset by the reversal of certainone-time charges for materials & supplies inventory reserves and severance reserves upon Generation’s decision to continue operating the plants with the passage of the Illinois Zero Emission Standard.

(j) Adjustment to exclude 2016 reorganization costs related to a cost management program.

(k) Adjustment to exclude theone-time recognition of a loss on sale of assets and asset impairment charges pursuant to Generation’s strategic decision in the fourth quarter of 2016 to narrow the scope and scale of its growth and development activities.

(l) Adjustment to exclude a 2015 charge to earnings primarily related to the impairment of upstream assets at Generation.

(m) Adjustment to exclude the 2015 reduction of a previously recorded state income tax reserve associated with the 2014 sales of Keystone and Conemaugh.

(n) Adjustment to exclude the costs associated with the exchange and redemption in December 2015 of certain mandatorily redeemable debt issued to finance the PHI merger.

(o) Adjustments to exclude Generation’s noncontrolling interest related to CENG exclusion items, primarily related to the impact of unrealized gains and losses on NDT fund investments and changes in asset retirement obligations in 2016, and in 2015 the impact of unrealized gains and losses on NDT fund investments.

9

EXELON CORPORATION

Reconciliation of GAAP Consolidated Statements of Operations

to Adjusted(non-GAAP) Operating Earnings

(unaudited)

(in millions, except per share data)

	Twelve Months Ended December 31, 2016										Twelve Months Ended December 31, 2015
	GAAP (a)			Adjustments				Adjusted Non-GAAP			GAAP (a)			Adjustments				Adjusted Non-GAAP
Operating revenues	$	31,360		$	545		(b),(d),(e)	$	31,905		$	29,447		$	(210	)	(b),(d)	$	29,237
Operating expenses
Purchased power and fuel		12,640			395		(b),(d),(j)		13,035			13,084			55		(b),(d)		13,139
Operating and maintenance		10,048			(849	)	(e),(f),(g), (i),(j),(k), (m)		9,199			8,322			(90	)	(e),(f),(g), (p)		8,232
Depreciation and amortization		3,936			(704	)	(e),(j)		3,232			2,450			—				2,450
Taxes other than income		1,576			(1	)	(k)		1,575			1,200			—				1,200
Total operating expenses		28,200			(1,159	)			27,041			25,056			(35	)			25,021
Gain (Loss) on sales of assets		(48	)		57				9			18			—				18
Operating income		3,112			1,761				4,873			4,409			(175	)			4,234
Other income and (deductions)
Interest expense, net		(1,536	)		153		(l)		(1,383	)		(1,033	)		(27	)	(e),(o),(n)		(1,060	)
Other, net		413			(124	)	(c),(j),(l),(m)		289			(46	)		284		(c),(r)		238
Total other income and (deductions)		(1,123	)		29				(1,094	)		(1,079	)		257				(822	)
Income before income taxes		1,989			1,790				3,779			3,330			82				3,412
Income taxes		761			538		(b),(c),(d), (e),(f),(g), (h),(i),(j), (k),(l),(m)		1,299			1,073			92		(b),(c),(d), (e),(f),(g), (h),(n),(o), (p),(q),(r)		1,165
Equity in losses of unconsolidated affiliates		(24	)		—				(24	)		(7	)		—				(7	)
Net income		1,204			1,252				2,456			2,250			(10	)			2,240
Net income (loss) attributable to noncontrolling interests and preference stock dividends		70			(102	)	(s)		(32	)		(19	)		32		(s)		13
Net income attributable to common shareholders	$	1,134		$	1,354			$	2,488		$	2,269		$	(42	)		$	2,227
Effective tax rate		38.3	%						34.4	%		32.2	%						34.1	%
Earnings per average common share
Basic	$	1.23		$	1.47			$	2.70		$	2.55		$	(0.05	)		$	2.50
Diluted	$	1.22		$	1.46			$	2.68		$	2.54		$	(0.05	)		$	2.49
Average common shares outstanding
Basic		924							924			890							890
Diluted		927							927			893							893
Effect of adjustments on earnings per average diluted common share recorded in accordance with GAAP:
Mark-to-market impact of economic hedging activities (b)				$	0.03									$	(0.18	)
Unrealized (gains) losses related to NDT fund investments (c)					(0.13	)									0.13
Amortization of commodity contract intangibles (d)					0.04										—
Merger and integration costs (e)					0.12										0.07
Long-lived asset impairment (f)					0.11										0.02
Asset retirement obligation (g)					(0.08	)									(0.01	)
Reassessment of state deferred income taxes (h)					0.01										0.05
Merger commitments (i)					0.47										—
Plant retirements and divestitures (j)					0.47										—
Cost management program (k)					0.04										—
Like-kind exchange tax position (l)					0.21										—
Curtailment of Generation growth and development activities (m)					0.06										—
Tax settlements (n)					—										(0.06	)
Mark-to-market impact of PHI merger related swaps (o)					—										(0.02	)
Midwest Generation bankruptcy recoveries (p)					—										(0.01	)
Reduction in state income tax reserve (q)					—										(0.01	)
PHI merger related redeemable debt exchange (r)					—										0.01
Noncontrolling interest (s)					0.11										(0.04	)
Total adjustments				$	1.46									$	(0.05	)

As a result of the PHI acquisition completion on March 23, 2016, the table includes financial results for PHI beginning on March 24, 2016 to December 31, 2016. Therefore, the results of operations from 2016 and 2015 are not comparable for Exelon. The explanations below identify any other significant or unusual items affecting the results of operations.

(a) Results reported in accordance with accounting principles generally accepted in the United States (GAAP).

(b) Adjustment to exclude themark-to-market impact of Exelon’s economic hedging activities, net of intercompany eliminations.

10

(c) Adjustment to exclude the unrealized gains and losses on NDT fund investments to the extent not offset by contractual accounting as described in the notes to the consolidated financial statements.

(d) Adjustment to exclude thenon-cash amortization of intangible assets, net, related to commodity contracts recorded at fair value related to the Integrys acquisition in 2015 and the Integrys and ConEdison Solutions acquisitions in 2016.

(e) 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 and pending FitzPatrick acquisition, partially offset in 2016 at ComEd, BGE and PHI by the anticipated recovery of previously incurred PHI acquisition costs.

(f) Adjustment to exclude a 2015 charge to earnings primarily related to the impairment of investment in long-term leases at Corporate and 2016 charges to earnings primarily related to the impairment of upstream assets and certain wind projects at Generation.

(g) Adjustment to exclude anon-cash benefit pursuant to the annual update of the Generation nuclear decommissioning obligation related to thenon-regulatory units.

(h) Adjustment to exclude thenon-cash impact of the remeasurement of state deferred income taxes, primarily as a result of changes in forecasted apportionment.

(i) Adjustments to exclude costs incurred as part of the settlement orders approving the PHI acquisition and in 2016, a charge related to a 2012 CEG merger commitment.

(j) Adjustment to primarily exclude accelerated depreciation and amortization expenses through December 2016 and construction work in process impairments associated with Generation’s previous decision to early retire the Clinton and Quad Cities nuclear facilities, partially offset by a gain associated with Generation’s 2016 sale of the New Boston generating site.

(k) Adjustment to exclude 2016 severance expense and reorganization costs related to a cost management program.

(l) Adjustment to exclude the recognition of a penalty and associated interest expense in the third quarter of 2016, as a result of a tax court decision on Exelon’s like-kind exchange tax position.

(m) Adjustment to exclude theone-time recognition of a loss on sale of assets and asset impairment charges pursuant to Generation’s strategic decision in the fourth quarter of 2016 to narrow the scope and scale of its growth and development activities.

(n) Adjustment to exclude benefits related to the favorable settlements in 2015 of certain income tax positions on Constellation’spre-acquisition tax returns.

(o) Adjustment to exclude the impact ofmark-to-market activity on forward-starting interest rate swaps held at Exelon Corporate related to financing for the PHI acquisition, which were terminated on June 8, 2015.

(p) Adjustment to exclude the 2015 benefit for the favorable settlement of a long-term railcar lease agreement pursuant to the Midwest Generation bankruptcy.

(q) Adjustment to exclude the 2015 reduction of a previously recorded state income tax reserve associated with the 2014 sales of Keystone and Conemaugh.

(r) Adjustment to exclude costs associated with the exchange and redemption in December 2015 of certain mandatorily redeemable debt issued to finance the PHI merger.

(s) Adjustments to exclude the elimination from Generation’s results of the noncontrolling interest related to CENG exclusion items, primarily related to the impact of unrealized gains and losses on NDT fund investments andmark-to-market activity.

11

EXELON CORPORATION

Reconciliation of Adjusted(non-GAAP) Operating

Earnings to GAAP Earnings (in millions)

Three Months Ended December 31, 2016 and 2015

(unaudited)

	Exelon Earnings per Diluted Share			Generation			ComEd				PECO				BGE				PHI (a)				Other (b)			Exelon (a)
2015 GAAP Earnings (Loss)	$	0.33		$	154		$	87			$	79			$	74			$	—			$	(85	)	$	309
2015 Adjusted(non-GAAP) Operating (Earnings) Loss Adjustments:
Unrealized Gains Related to NDT Fund Investments (1)		(0.05	)		(51	)		—				—				—				—				—			(51	)
Amortization of Commodity Contract Intangibles (2)		0.01			10			—				—				—				—				—			10
Merger and Integration Costs (3)		0.01			2			—				—				—				—				7			9
Long-Lived Asset Impairments (4)		0.01			6			—				—				—				—				—			6
Reassessment of State Deferred Income Taxes (5)		0.05			11			—				—				—				—				30			41
Reduction in State Income Tax Reserve (6)		(0.01	)		(10	)		—				—				—				—				—			(10	)
PHI Merger Related Redeemable Debt Exchange (7)		0.01			—			—				—				—				—				13			13
CENG Noncontrolling Interest (8)		0.02			20			—				—				—				—				—			20
2015 Adjusted(non-GAAP) Operating Earnings (Loss)		0.38			142			87				79				74				—				(35	)		347
Year Over Year Effects on Earnings:
ComEd, PECO, BGE and PHI Margins:
Weather		0.03			—			8				21				—		(c)		—		(c)		—			29
Load		—			—			(2	)			(1	)			—		(c)		—		(c)		—			(3	)
Other Energy Delivery (14)		0.47			—			17		(d)		11		(d)		20		(d)		391		(d)		—			439
Generation Energy Margins, ExcludingMark-to-Market:
Nuclear Volume (15)		0.02			18			—				—				—				—				—			18
Nuclear Fuel Cost		—			2			—				—				—				—				—			2
Capacity Pricing (16)		(0.03	)		(24	)		—				—				—				—				—			(24	)
Market and Portfolio Conditions (17)		0.05			49			—				—				—				—				—			49
Operating and Maintenance Expense:
Labor, Contracting and Materials (18)		(0.14	)		(20	)		(8	)			(3	)			(4	)			(97	)			—			(132	)
Planned Nuclear Refueling Outages (19)		0.03			30			—				—				—				—				—			30
Pension andNon-Pension Postretirement Benefits (20)		—			5			5				1				(1	)			(10	)			1			1
Other Operating and Maintenance (21)		(0.09	)		(13	)		(5	)			(9	)			27				(65	)			(20	)		(85	)
Depreciation and Amortization Expense (22)		(0.15	)		(11	)		(13	)			(4	)			(13	)			(94	)			(1	)		(136	)
Interest Expense, Net (23)		(0.05	)		1			(2	)			(1	)			(2	)			(28	)			(10	)		(42	)
Income Taxes (24)		0.01			12			(7	)			1				—				8				(7	)		7
Equity in Earnings of Unconsolidated Affiliates		—			(3	)		—				—				—				—				—			(3	)
CENG Noncontrolling Interest (25)		(0.02	)		(15	)		—				—				—				—				—			(15	)
Other (26)		(0.07	)		(11	)		1				(1	)			4				(63	)			(2	)		(72	)
2016 Adjusted(non-GAAP) Operating Earnings (Loss)		0.44			162			81				94				105				42				(74	)		410
2016 Adjusted(non-GAAP) Operating Earnings (Loss) Adjustments:
Mark-to-Market Impact of Economic Hedging Activities		0.05			44			—				—				—				—				—			44
Unrealized Losses Related to NDT Fund Investments (1)		(0.01	)		(9	)		—				—				—				—				—			(9	)
Amortization of Commodity Contract Intangibles (2)		(0.03	)		(26	)		—				—				—				—				—			(26	)
Merger and Integration Costs (3)		(0.02	)		(15	)		(1	)			(1	)			(1	)			(4	)			(1	)		(23	)
Long-Lived Asset Impairments (4)		—			—			—				—				—				—				1			1
Reassessment of State Deferred Income Taxes (5)		(0.01	)		(14	)		—				—				—				—				4			(10	)
Asset Retirement Obligation (9)		0.08			75			—				—				—				—				—			75
Merger Commitments (10)		(0.04	)		(40	)		—				—				—				(8	)			10			(38	)
Plant Retirements and Divestitures (11)		(0.10	)		(94	)		—				—				—				—				—			(94	)
Cost Management Program (12)		(0.01	)		(6	)		—				(1	)			(1	)			—				—			(8	)
Curtailment of Generation Growth and Development Activities (13)		(0.06	)		(57	)		—				—				—				—				—			(57	)
CENG Noncontrolling Interest (8)		(0.07	)		(61	)		—				—				—				—				—			(61	)
2016 GAAP Earnings (Loss)	$	0.22		$	(41	)	$	80			$	92			$	103			$	30			$	(60	)	$	204

(a) For the three months ended December 31, 2016, includes financial results for PHI. Therefore, the results of operations from 2016 and 2015 are not comparable for PHI and Exelon. The explanations below identify any other significant or unusual items affecting the results of operations. PHI consolidated results includes Potomac Electric Power Company, Delmarva Power & Light Company, and Atlantic City Electric Company.

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

(c) As approved by the Maryland PSC and District of Columbia PSC, BGE, Pepco and DPL Maryland record monthly adjustments to rates for residential, commercial and industrial customers to eliminate the effects of abnormal weather and usage patterns per customer on distribution volumes.

12

(d) For regulatory recovery mechanisms, including ComEd’s distribution formula rate, ComEd, 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 unrealized gains in 2015 and unrealized losses in 2016 on NDT fund investments to the extent not offset by contractual accounting as described in the notes to the consolidated financial statements.

(2) Represents thenon-cash amortization of intangible assets, net, related to commodity contracts recorded at fair value related to the Integrys acquisition in 2015 and the Integrys and ConEdison Solutions acquisitions in 2016.

(3) Reflects 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 and pending FitzPatrick acquisition.

(4) Reflects charges to earnings primarily related to the impairments of certain upstream assets in 2015.

(5) Reflects thenon-cash impact of the remeasurement of state deferred income taxes, primarily as a result of changes in forecasted apportionment.

(6) Reflects the 2015 reduction of a previously recorded state income tax reserve associated with the 2014 sales of Keystone and Conemaugh.

(7) Reflects the costs associated with the exchange and redemption in December 2015 of certain mandatorily redeemable debt issued to finance the PHI acquisition.

(8) Represents elimination from Generation’s results of the noncontrolling interest related to CENG exclusion items, primarily related to the impact of unrealized gains and losses on NDT fund investments and changes in asset retirement obligations in 2016, and in 2015 the impact of unrealized gains and losses on NDT fund investments.

(9) Primarily reflects anon-cash benefit pursuant to the annual update of the Generation nuclear decommissioning obligation related to thenon-regulatory units.

(10) Represents costs incurred as part of the settlement orders approving the PHI acquisition and in 2016, a charge related to a 2012 CEG merger commitment.

(11) Primarily reflects incremental accelerated depreciation and amortization expense from June 2, 2016 through December 6, 2016, pursuant to the second quarter decision to early retire the Clinton and Quad Cities nuclear generation facilities, which decision was reversed in December 2016, partially offset by the reversal of certainone-time charges for materials & supplies inventory reserves and severance reserves upon Generation’s decision to continue operating the plants with the passage of the Illinois Zero Emission Standard.

(12) Represents 2016 reorganization costs related to a cost management program.

(13) Reflects theone-time recognition for a loss on sale of assets and asset impairment charges pursuant to Generation’s strategic decision in the fourth quarter of 2016 to narrow the scope and scale of its growth and development activities.

(14) For ComEd, primarily reflects increased transmission formula rate revenues due to increased capital investment and an increase in fully recoverable costs. For PECO, primarily reflects increased electric distribution revenue pursuant to a rate increase effective January 1, 2016. For BGE, primarily reflects increased distribution revenue pursuant to increased rates as a result of the distribution rate orders issued by the MDPSC in June 2016 and July 2016. For PHI, reflects results of rate case orders received in 2016.

(15) Primarily reflects a decrease in nuclear outage days in 2016 versus 2015, including Salem.

(16) Primarily reflects decreased capacity prices in theMid-Atlantic and Midwest regions, partially offset by increased capacity prices in New England.

(17) Primarily reflects the impact of the Ginna Reliability Support Services Agreement, the inclusion of Pepco Energy Services and ConEdison Solutions results in 2016 and the impacts of Generation’s gas portfolio, partially offset by lower realized energy prices primarily in theMid-Atlantic region.

(18) For Generation, primarily reflects increased contracting costs related to energy efficiency projects and the inclusion of Pepco Energy Services results in 2016.

(19) Primarily reflects a reduction in the number of nuclear outage days in 2016, excluding Salem.

(20) Primarily reflects favorable impact of higher pension and OPEB discount rates in 2016.

(21) For ComEd, primarily relates to increased fully recoverable costs associated with energy efficiency programs and an increase in uncollectible accounts expense. For PECO, primarily reflects an increase in uncollectible accounts expense . For BGE, primarily reflects the settlement of the Baltimore City Conduit Fee Dispute, as well as a decrease in uncollectible accounts expense

(22) For BGE, primarily reflects increased amortization due to the initiation of cost recovery of the AMI programs. Additionally, primarily reflects increased depreciation for ongoing capital expenditures across all operating companies.

(23) For Corporate, primarily reflects increased interest expense due to higher outstanding debt to fund the PHI acquisition and general corporate purposes.

(24) For Generation, primarily reflects the prior year favorable settlement of certain income tax positions offset by the 2015 bonus depreciation extension impact on the domestic production activities deduction.

(25) Reflects elimination from Generation’s results of the noncontrolling interest related to the net impact of CENG’s operating revenue and expenses.

(26) For Generation, primarily reflects lower realized NDT fund gains.

13

EXELON CORPORATION

Reconciliation of Adjusted(non-GAAP) Operating

Earnings to GAAP Earnings (in millions)

Twelve Months Ended December 31, 2016 and 2015

(unaudited)

	Exelon Earnings per Diluted Share			Generation			ComEd				PECO				BGE				PHI (a)				Other (b)			Exelon (a)
2015 GAAP Earnings (Loss)	$	2.54		$	1,372		$	426			$	378			$	275			$	—			$	(182	)	$	2,269
2015 Adjusted(non-GAAP) Operating (Earnings) Loss Adjustments:
Mark-to-Market Impact of Economic Hedging Activities		(0.18	)		(160	)		—				—				—				—				2			(158	)
Unrealized Losses Related to NDT Fund Investments (1)		0.13			115			—				—				—				—				—			115
Amortization of Commodity Contract Intangibles (2)		—			(5	)		—				—				—				—				—			(5	)
Merger and Integration Costs (3)		0.07			20			6				2				2				—				28			58
Long-Lived Asset Impairments (4)		0.02			6			—				—				—				—				15			21
Asset Retirement Obligation (5)		(0.01	)		(6	)		—				—				—				—				—			(6	)
Tax Settlements (6)		(0.06	)		(52	)		—				—				—				—				—			(52	)
Mark-to-Market Impact of PHI Merger Related Interest Rate Swap (7)		(0.02	)		—			—				—				—				—				(21	)		(21	)
Midwest Generation Bankruptcy Recoveries (8)		(0.01	)		(6	)		—				—				—				—				—			(6	)
Reassessment of State Deferred Income Taxes (9)		0.05			11			—				—				—				—				30			41
Reduction in State Income Tax Reserve (10)		(0.01	)		(10	)		—				—				—				—				—			(10	)
PHI Merger Related Redeemable Debt Exchange (11)		0.01			—			—				—				—				—				13			13
CENG Noncontrolling Interest (12)		(0.04	)		(32	)		—				—				—				—				—			(32	)
2015 Adjusted(non-GAAP) Operating Earnings (Loss)		2.49			1,253			432				380				277				—				(115	)		2,227
Year Over Year Effects on Earnings:
ComEd, PECO, BGE and PHI Margins:
Weather		0.03			—			32				(6	)			—		(c)		—		(c)		—			26
Load		—			—			(1	)			5				—		(c)		—		(c)		—			4
Other Energy Delivery (18)		1.62			—			90		(d)		63		(d)		65		(d)		1,285		(d)		—			1,503
Generation Energy Margins, ExcludingMark-to-Market:
Nuclear Volume (19)		0.05			44			—				—				—				—				—			44
Nuclear Fuel Cost (20)		0.02			17			—				—				—				—				—			17
Capacity Pricing (21)		(0.02	)		(17	)		—				—				—				—				—			(17	)
Market and Portfolio Conditions (22)		0.11			98			—				—				—				—				—			98
Operating and Maintenance Expense:
Labor, Contracting and Materials (23)		(0.47	)		(114	)		(7	)			(13	)			(4	)			(297	)			—			(435	)
Planned Nuclear Refueling Outages (24)		0.05			49			—				—				—				—				—			49
Pension andNon-Pension Postretirement Benefits (25)		0.02			26			14				2				(1	)			(31	)			5			15
Other Operating and Maintenance (26)		(0.26	)		(49	)		11				4				(27	)			(164	)			(16	)		(241	)
Depreciation and Amortization Expense (27)		(0.50	)		(74	)		(41	)			(6	)			(34	)			(301	)			(6	)		(462	)
Interest Expense, Net (28)		(0.17	)		7			(14	)			(5	)			(4	)			(88	)			(52	)		(156	)
Income Taxes (29)		0.03			(32	)		3				22				13				31				(5	)		32
Equity in Earnings of Unconsolidated Affiliates		(0.01	)		(10	)		—				—				—				—				—			(10	)
CENG Noncontrolling Interest (30)		0.03			25			—				—				—				—				—			25
Other (31)		(0.25	)		(42	)		5				(2	)			4				(207	)			11			(231	)
Share Differential (32)		(0.09	)		—			—				—				—				—				—			—
2016 Adjusted(non-GAAP) Operating Earnings (Loss)		2.68			1,181			524				444				289				228				(178	)		2,488
2016 Adjusted(non-GAAP) Operating Earnings (Loss) Adjustments:
Mark-to-Market Impact of Economic Hedging Activities		(0.03	)		(24	)		—				—				—				—				—			(24	)
Unrealized Gains Related to NDT Fund Investments (1)		0.13			118			—				—				—				—				—			118
Amortization of Commodity Contract Intangibles (2)		(0.04	)		(35	)		—				—				—				—				—			(35	)
Merger and Integration Costs (3)		(0.12	)		(35	)		3				(3	)			—				(42	)			(37	)		(114	)
Long-Lived Asset Impairments (4)		(0.11	)		(103	)		—				—				—				—				—			(103	)
Asset Retirement Obligation (5)		0.08			75			—				—				—				—				—			75
Reassessment of State Deferred Income Taxes (9)		(0.01	)		(20	)		—				—				—				—				10			(10	)
Merger Commitments (13)		(0.47	)		(42	)		—				—				—				(247	)			(148	)		(437	)
Plant Retirements and Divestitures (14)		(0.47	)		(432	)		—				—				—				—				—			(432	)
Cost Management Program (15)		(0.04	)		(28	)		—				(3	)			(3	)			—				—			(34	)
Like-Kind Exchange Tax Position (16)		(0.21	)		—			(149	)			—				—				—				(50	)		(199	)
Curtailment of Generation Growth and Development Activities (17)		(0.06	)		(57	)		—				—				—				—				—			(57	)
CENG Noncontrolling Interest (12)		(0.11	)		(102	)		—				—				—				—				—			(102	)
2016 GAAP Earnings (Loss)	$	1.22		$	496		$	378			$	438			$	286			$	(61	)		$	(403	)	$	1,134

14

(a) As a result of the PHI acquisition completion on March 23, 2016, the table includes financial results for PHI beginning on March 24, 2016 to December 31, 2016. Therefore, the results of operations from 2016 and 2015 are not comparable for PHI and Exelon. The explanations below identify any other significant or unusual items affecting the results of operations. PHI consolidated results includes Potomac Electric Power Company, Delmarva Power & Light Company, and Atlantic City Electric Company.

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

(c) As approved by the Maryland PSC and District of Columbia PSC, BGE, Pepco and DPL Maryland record monthly adjustments to rates for residential, commercial and industrial customers to eliminate the effects of abnormal weather and usage patterns per customer on distribution volumes.

(d) For regulatory recovery mechanisms, including ComEd’s distribution formula rate, ComEd, 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 unrealized losses in 2015 and unrealized gains in 2016 on NDT fund investments to the extent not offset by contractual accounting as described in the notes to the consolidated financial statements.

(2) Represents thenon-cash amortization of intangible assets, net, related to commodity contracts recorded at fair value related to the Integrys acquisition in 2015 and the Integrys and ConEdison Solutions acquisitions in 2016.

(3) Reflects 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 and pending FitzPatrick acquisition, partially offset in 2016 at ComEd, BGE and PHI by the anticipated recovery of previously incurred PHI acquisition costs.

(4) Reflects impairment of investment in long-term leases at Corporate in 2015 and the impairment of upstream assets and certain wind projects in 2016.

(5) Primarily reflects anon-cash benefit pursuant to the annual update of the Generation nuclear decommissioning obligation related to thenon-regulatory units.

(6) Reflects benefits related to the favorable settlements in 2015 of certain income tax positions on Constellation’spre-acquisition tax returns.

(7) Reflects the impact ofmark-to-market activity on forward-starting interest rate swaps held at Exelon Corporate related to financing for the PHI acquisition, which were terminated on June 8, 2015.

(8) Primarily reflects a 2015 benefit for the favorable settlement of a long-term railcar lease agreement pursuant to the Midwest Generation bankruptcy.

(9) Reflects thenon-cash impact of the remeasurement of state deferred income taxes, primarily as a result of changes in forecasted apportionment.

(10) Reflects the 2015 reduction of a previously recorded state income tax reserve associated with the 2014 sales of Keystone and Conemaugh.

(11) Reflects the costs associated with the exchange and redemption in December 2015 of certain mandatorily redeemable debt issued to finance the PHI acquisition.

(12) Represents elimination from Generation’s results of the noncontrolling interest related to CENG exclusion items, primarily related to the impact of unrealized gains and losses on NDT fund investments and changes in asset retirement obligations in 2016, and in 2015 the impact of unrealized gains and losses on NDT fund investments andmark-to-market activity.

(13) Represents costs incurred as part of the settlement orders approving the PHI acquisition and in 2016, a charge related to a 2012 CEG merger commitment.

(14) Primarily reflects accelerated depreciation and amortization expenses through December 2016 and construction work in progress impairments associated with Generation’s previous decision to early retire the Clinton and Quad Cities nuclear facilities, partially offset by a gain associated with Generation’s 2016 sale of the New Boston generating site.

(15) Represents 2016 severance expense and reorganization costs related to a cost management program.

(16) Represents the recognition of a penalty and associated interest expense in the third quarter of 2016, as a result of a tax court decision on Exelon’s like-kind exchange tax position.

(17) Reflects theone-time recognition for a loss on sale of assets and asset impairment charges pursuant to Generation’s strategic decision in the fourth quarter of 2016 to narrow the scope and scale of its growth and development activities.

(18) For ComEd, primarily reflects increased electric distribution and transmission formula rate revenues (due to increased capital investments partially offset by lower electric distribution ROE due to a decrease in treasury rates), partially offset by a decrease in fully recoverable costs. For PECO, primarily reflects increased electric distribution revenue pursuant to a rate increase effective January 1, 2016. For BGE, primarily reflects increased distribution revenue pursuant to increased rates as a result of the distribution rate orders issued by the MDPSC in June 2016 and July 2016 and increased transmission revenue. For PHI, reflects results of rate case orders received in 2016.

(19) Primarily reflects a decrease in nuclear outage days at higher capacity units in 2016 versus 2015, including Salem, despite an increase in overall nuclear outage days.

(20) Primarily reflects a decrease in fuel prices, partially offset by an increase in nuclear output.

(21) Primarily reflects decreased capacity prices in theMid-Atlantic region, partially offset by increased capacity prices in the New England region.

(22) Primarily reflects the impact of the Ginna Reliability Support Services Agreement, the inclusion of Pepco Energy Services results in 2016 and revenue related to energy efficiency projects, partially offset by lower realized energy prices.

(23) For Generation, reflects the net increase to contracting costs primarily related to energy efficiency projects and the inclusion of Pepco Energy Services results in 2016. For PECO, primarily reflects increased contracting costs related to vegetation management and other projects.

(24) Primarily reflects a reduction in the number of nuclear outage days in 2016, excluding Salem.

(25) Primarily reflects favorable impact of higher pension and OPEB discount rates in 2016.

(26) For Generation, primarily reflects the extended duration of an outage at Salem and the inclusion of Pepco Energy Services results in 2016. For ComEd, primarily relates to decreased fully recoverable costs associated with energy efficiency programs and a decrease in uncollectible accounts expense. For BGE, primarily reflects charges for certain disallowances contained in the June and July 2016 rate case orders and increased storm costs in the BGE service territory, partially offset by a decrease in uncollectible accounts expense.

(27) For Generation, primarily reflects increased nuclear decommissioning amortization. For BGE, primarily reflects increased amortization due to the initiation of cost recovery of the AMI programs. Additionally, primarily reflects increased depreciation for ongoing capital expenditures across all operating companies.

(28) For ComEd, primarily reflects increased interest expense due to higher outstanding debt. For Corporate, primarily reflects increased interest expense due to higher outstanding debt to fund the PHI acquisition and general corporate purposes.

(29) For Generation, primarily reflects a decrease in domestic production activities deduction. For PECO, primarily reflects an increase in the repairs tax deduction and the impact of a cumulative adjustment related to a gas repairs tax return accounting method change in 2016. For BGE, primarily reflects a cumulative adjustment to tax expense for transmission-related regulatory assets.

(30) Reflects elimination from Generation’s results of the noncontrolling interest related to the net impact of CENG’s operating revenue and expenses.

(31) For Generation, primarily reflects lower realized NDT fund gains. For Corporate, primarily reflects the absence of a 2015 loss on the termination of forward-starting interest rate swaps.

(32) Reflects the impact on earnings per share due to the increase in Exelon’s average diluted common shares outstanding from 893 million in 2015 to 927 million in 2016 as a result of the July 2015 common stock issuance.

15

EXELON CORPORATION

Reconciliation of GAAP Consolidated Statements of Operations

to Adjusted(non-GAAP) Operating Earnings

(unaudited) (in millions)

	Generation
	Three Months Ended December 31, 2016											Three Months Ended December 31, 2015
	GAAP (a)			Adjustments					Adjusted Non-GAAP			GAAP (a)			Adjustments					Adjusted Non-GAAP
Operating revenues	$	4,388		$	177		(b	),(d)	$	4,565		$	4,294		$	(20	)	(b	),(d)	$	4,274
Operating expenses
Purchased power and fuel		2,221			184		(b	),(j)		2,405			2,220			(33	)	(b	),(d)		2,187
Operating and maintenance		1,308			123		(e (j	),(g),(i),  ),(k),(l)		1,431			1,447			(14	)	(e	),(f)		1,433
Depreciation and amortization		550			(251	)	(j	)		299			280			—					280
Taxes other than income		126			—					126			121			—					121
Total operating expenses		4,205			56					4,261			4,068			(47	)				4,021
Gain (Loss) on sale of assets		(89	)		89		(j	),(l)		—			4			—					4
Operating income		94			210					304			230			27					257
Other inome and (deductions)
Interest expense, net		(92	)		—					(92	)		(96	)		—					(96	)
Other, net		6			37		(c	)		43			135			(95	)				40
Total other income and (deductions)		(86	)		37					(49	)		39			(95	)				(56	)
Income before income taxes		8			247					255			269			(68	)				201
Income taxes		(3	)		105		(b (e (i	),(c),(d),  ),(g),(h),  ),(j),(k),(l)		102			131			(36	)	(b (e	),(c),(d),  ),(f),(h),(o)		95
Equity in losses of unconsolidated affiliates		(9	)		—					(9	)		(5	)		—					(5	)
Net income		2			142					144			133			(32	)				101
Net income (loss) attributable to noncontrolling interests		43			(61	)	(p	)		(18	)		(21	)		(20	)	(p	)		(41	)
Net (loss) income attributable to membership interest	$	(41	)	$	203				$	162		$	154		$	(12	)			$	142
	Twelve Months Ended December 31, 2016											Twelve Months Ended December 31, 2015
	GAAP (a)			Adjustments					Adjusted Non-GAAP			GAAP (a)			Adjustments					Adjusted Non-GAAP
Operating revenues	$	17,751		$	553		(b	),(d)	$	18,304		$	19,135		$	(210	)	(b	),(d)	$	18,925
Operating expenses
Purchased power and fuel		8,830			395		(b	),(d),(j)		9,225			10,021			55		(b	),(d)		10,076
Operating and maintenance		5,641			(213	)	(e (i	),(f),(g),  ),(j),(k),(l)		5,428			5,308			(23	)	(e (g	),(f),  ),(n)		5,285
Depreciation and amortization		1,879			(704	)	(e	),(j)		1,175			1,054			—					1,054
Taxes other than income		506			(1	)	(k	)		505			489			—					489
Total operating expenses		16,856			(523	)				16,333			16,872			32					16,904
Gain (Loss) on sales of assets		(59	)		57		(j	),(l)		(2	)		12			—					12
Operating income		836			1,133					1,969			2,275			(242	)				2,033
Other income and (deductions)
Interest expense, net		(364	)		—					(364	)		(365	)		(12	)	(m	)		(377	)
Other, net		401			(230	)	(c	)		171			(60	)		262		(c	)		202
Total other income and (deductions)		37			(230	)				(193	)		(425	)		250					(175	)
Income before income taxes		873			903					1,776			1,850			8					1,858
Income taxes		290			320		(b (e (h	),(c),(d),  ),(f),(g),  ),(i),(j),(k),(l)		610			502			95		(b (e (h	),(c),(d),  ),(f),(g),  ),(m),(n),(o)		597
Equity in losses of unconsolidated affiliates		(25	)		—					(25	)		(8	)		—					(8	)
Net income		558			583					1,141			1,340			(87	)				1,253
Net income (loss) attributable to noncontrolling interests		62			(102	)	(p	)		(40	)		(32	)		32		(p	)		—
Net income attributable to membership interest	$	496		$	685				$	1,181		$	1,372		$	(119	)			$	1,253

(a) Results reported in accordance with GAAP.

(b) Adjustment to exclude themark-to-market impact of Exelon’s economic hedging activities, net of intercompany eliminations.

(c) Adjustment to exclude the unrealized gains and losses on NDT fund investments to the extent not offset by contractual accounting as described in the notes to the consolidated financial statements.

(d) Adjustment to exclude thenon-cash amortization of intangible assets, net, related to commodity contracts recorded at fair value related to the Integrys acquisition in 2015 and the Integrys and ConEdison Solutions acquisitions in 2016.

16

(e) 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 and pending FitzPatrick acquisition.

(f) Adjustment to exclude 2016 charges to earnings primarily related to the impairment of upstream assets and certain wind projects at Generation.

(g) Adjustment to exclude anon-cash benefit pursuant to the annual update of the Generation nuclear decommissioning obligation related to thenon-regulatory units.

(h) Adjustment to exclude thenon-cash impact of the remeasurement of state deferred income taxes, primarily as a result of changes in forecasted apportionment.

(i) Adjustments to exclude costs incurred as part of the settlement orders approving the PHI acquisition and in 2016, a charge related to a 2012 CEG merger commitment.

(j) Adjustment to exclude accelerated depreciation and amortization expenses through December 2016 and construction work in process impairments associated with Generation’s previous decision to early retire the Clinton and Quad Cities nuclear facilities, partially offset by a gain associated with Generation’s 2016 sale of the New Boston generating site.

(k) Adjustment to exclude 2016 severance expense and reorganization costs related to a cost management program.

(l) Adjustment to exclude theone-time recognition of a loss on sale of assets and asset impairment charges pursuant to Generation’s strategic decision in the fourth quarter of 2016 to narrow the scope and scale of its growth and development activities.

(m) Adjustment to exclude benefits related to the favorable settlements in 2015 of certain income tax positions on Constellation’spre-acquisition tax returns.

(n) Adjustment to exclude the 2015 benefit for the favorable settlement of a long-term railcar lease agreement pursuant to the Midwest Generation bankruptcy.

(o) Adjustment to exclude the 2015 reduction of a previously recorded state income tax reserve associated with the 2014 sales of Keystone and Conemaugh.

(p) Adjustments to exclude the elimination from Generation’s results of the noncontrolling interest related to CENG exclusion items, primarily related to the impact of unrealized gains and losses on NDT fund investments andmark-to-market activity.

17

EXELON CORPORATION

Reconciliation of GAAP Consolidated Statements of Operations

to Adjusted(non-GAAP) Operating Earnings

(unaudited)

(in millions)

	ComEd
	Three Months Ended December 31, 2016									Three Months Ended December 31, 2015
	GAAP (a)			Adjustments			Adjusted Non-GAAP			GAAP (a)			Adjustments			Adjusted Non-GAAP
Operating revenues	$	1,223		$	—		$	1,223		$	1,196		$	—		$	1,196
Operating expenses
Purchased power		317			—			317			327			—			327
Operating and maintenance		417			(1	) (b)		416			402			—			402
Depreciation and amortization		201			—			201			179			—			179
Taxes other than income		71			—			71			72			—			72
Total operating expenses		1,006			(1	)		1,005			980			—			980
Gain on sales of assets		—			—			—			1			—			1
Operating income		217			1			218			217			—			217
Other income and (deductions)
Interest expense, net		(87	)		—			(87	)		(83	)		—			(83	)
Other, net		8			—			8			7			—			7
Total other income and (deductions)		(79	)		—			(79	)		(76	)		—			(76	)
Income before income taxes		138			1			139			141			—			141
Income taxes		58			—			58			54			—			54
Net income	$	80		$	1		$	81		$	87		$	—		$	87
	Twelve Months Ended December 31, 2016									Twelve Months Ended December 31, 2015
	GAAP (a)			Adjustments			Adjusted Non-GAAP			GAAP (a)			Adjustments			Adjusted Non-GAAP
Operating revenues	$	5,254		$	(8	) (b)	$	5,246		$	4,905		$	—		$	4,905
Operating expenses
Purchased power		1,458			—			1,458			1,319			—			1,319
Operating and maintenance		1,530			(3	) (b)		1,527			1,567			(9	) (b)		1,558
Depreciation and amortization		775			—			775			707			—			707
Taxes other than income		293			—			293			296			—			296
Total operating expenses		4,056			(3	)		4,053			3,889			(9	)		3,880
Gain on sales of assets		7			—			7			1			—			1
Operating income		1,205			(5	)		1,200			1,017			9			1,026
Other income and (deductions)
Interest expense, net		(461	)		105	(c)		(356	)		(332	)		—			(332	)
Other, net		(65	)		86	(c)		21			21			—			21
Total other income and (deductions)		(526	)		191			(335	)		(311	)		—			(311	)
Income before income taxes		679			186			865			706			9			715
Income taxes		301			40	(b),(c)		341			280			3	(b)		283
Net income	$	378		$	146		$	524		$	426		$	6		$	432

(a) Results reported in accordance with GAAP.

(b) 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, partially offset in 2016 at ComEd by the anticipated recovery of previously incurred PHI acquisition costs.

(c) Adjustment to exclude the recognition of a penalty and associated interest expense in the third quarter of 2016, as a result of a tax court decision on Exelon’s like-kind exchange tax position.

18

EXELON CORPORATION

Reconciliation of GAAP Consolidated Statements of Operations

to Adjusted(non-GAAP) Operating Earnings

(unaudited)

(in millions)

	PECO
	Three Months Ended December 31, 2016										Three Months Ended December 31, 2015
	GAAP (a)			Adjustments				Adjusted Non-GAAP			GAAP (a)			Adjustments				Adjusted Non-GAAP
Operating revenues	$	701		$	—			$	701		$	645		$	—			$	645
Operating expenses
Purchased power and fuel		238			—				238			236			—				236
Operating and maintenance		206			(3	)	(b),(c)		203			184			—				184
Depreciation and amortization		69			—				69			62			—				62
Taxes other than income		38			—				38			36			—				36
Total operating expenses		551			(3	)			548			518			—				518
Gain on sales of assets		—			—				—			1			—				1
Operating income		150			3				153			128			—				128
Other income and (deductions)
Interest expense, net		(31	)		—				(31	)		(30	)		—				(30	)
Other, net		2			—				2			2			—				2
Total other income and (deductions)		(29	)		—				(29	)		(28	)		—				(28	)
Income before income taxes		121			3				124			100			—				100
Income taxes		29			1		(b),(c)		30			21			—				21
Net income attributable to common shareholder	$	92		$	2			$	94		$	79		$	—			$	79
	Twelve Months Ended December 31, 2016										Twelve Months Ended December 31, 2015
	GAAP (a)			Adjustments				Adjusted Non-GAAP			GAAP (a)			Adjustments				Adjusted Non-GAAP
Operating revenues	$	2,994		$	—			$	2,994		$	3,032		$	—			$	3,032
Operating expenses
Purchased power and fuel		1,047			—				1,047			1,190			—				1,190
Operating and maintenance		811			(10	)	(b),(c)		801			794			(4	)	(b)		790
Depreciation and amortization		270			—				270			260			—				260
Taxes other than income		164			—				164			160			—				160
Total operating expenses		2,292			(10	)			2,282			2,404			(4	)			2,400
Gain on sales of assets		—			—				—			2			—				2
Operating income		702			10				712			630			4				634
Other income and (deductions)
Interest expense, net		(123	)		—				(123	)		(114	)		—				(114	)
Other, net		8			—				8			5			—				5
Total other income and (deductions)		(115	)		—				(115	)		(109	)		—				(109	)
Income before income taxes		587			10				597			521			4				525
Income taxes		149			4		(b),(c)		153			143			2		(b)		145
Net income attributable to common shareholder	$	438		$	6			$	444		$	378		$	2			$	380

(a) Results reported in accordance with GAAP.

(b) 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.

(c) Adjustment to exclude the 2016 severance expense and reorganization costs related to a cost management program.

19

EXELON CORPORATION

Reconciliation of GAAP Consolidated Statements of Operations

to Adjusted(non-GAAP) Operating Earnings

(unaudited)

(in millions)

	BGE
	Three Months Ended December 31, 2016										Three Months Ended December 31, 2015
	GAAP (a)			Adjustments				Adjusted Non-GAAP			GAAP (a)			Adjustments				Adjusted Non-GAAP
Operating revenues	$	812		$	—			$	812		$	746		$	—			$	746
Operating expenses
Purchased power and fuel		300			—				300			268			—				268
Operating and maintenance		149			(3	)	(b),(c)		146			185			—				185
Depreciation and amortization		115			—				115			94			—				94
Taxes other than income		58			—				58			55			—				55
Total operating expenses		622			(3	)			619			602			—				602
Operating income		190			3				193		��	144			—				144
Other income and (deductions)
Interest expense, net		(27	)		—				(27	)		(24	)		—				(24	)
Other, net		5			—				5			5			—				5
Total other income and (deductions)		(22	)		—				(22	)		(19	)		—				(19	)
Income before income taxes		168			3				171			125			—				125
Income taxes		65			1		(b),(c)		66			48			—				48
Net income		103			2				105			77			—				77
Preference stock dividends		—			—				—			3			—				3
Net income attributable to common shareholders	$	103		$	2			$	105		$	74		$	—			$	74
	Twelve Months Ended December 31, 2016										Twelve Months Ended December 31, 2015
	GAAP (a)			Adjustments				Adjusted Non-GAAP			GAAP (a)			Adjustments				Adjusted Non-GAAP
Operating revenues	$	3,233		$	—			$	3,233		$	3,135		$	—			$	3,135
Operating expenses
Purchased power and fuel		1,294			—				1,294			1,305			—				1,305
Operating and maintenance		737			(5	)	(b),(c)		732			683			(5	)	(b)		678
Depreciation and amortization		423			—				423			366			—				366
Taxes other than income		229			—				229			224			—				224
Total operating expenses		2,683			(5	)			2,678			2,578			(5	)			2,573
Gain on sale of assets		—			—				—			1			—				1
Operating income		550			5				555			558			5				563
Other income and (deductions)
Interest expense, net		(103	)		—				(103	)		(99	)		—				(99	)
Other, net		21			—				21			18			—				18
Total other income and (deductions)		(82	)		—				(82	)		(81	)		—				(81	)
Income before income taxes		468			5				473			477			5				482
Income taxes		174			2		(b),(c)		176			189			3		(b)		192
Net income		294			3				297			288			2				290
Preference stock dividends		8			—				8			13			—				13
Net income attributable to common shareholders	$	286		$	3			$	289		$	275		$	2			$	277

(a) Results reported in accordance with GAAP.

(b) 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, partially offset in 2016 at BGE by the recovery of previously incurred PHI acquisition costs.

(c) Adjustment to exclude the 2016 severance expense and reorganization costs related to a cost management program.

20

EXELON CORPORATION

Reconciliation of GAAP Consolidated Statements of Operations

to Adjusted(non-GAAP) Operating Earnings

(unaudited)

(in millions)

	PHI
	Three Months Ended December 31, 2016										Three Months Ended December 31, 2015
	GAAP (a)			Adjustments				Adjusted Non-GAAP			GAAP (a)		Adjustments		Adjusted Non-GAAP
Operating revenues	$	1,078		$	—			$	1,078		$	—	$	—	$	—
Operating expenses
Purchased power and fuel		410			—				410			—		—		—
Operating and maintenance		310			(17	)	(b),(c)		293			—		—		—
Depreciation and amortization		160			—				160			—		—		—
Taxes other than income		107			—				107			—		—		—
Total operating expenses		987			(17	)			970			—		—		—
Loss on sales of assets		(1	)		—				(1	)		—		—		—
Operating income		90			17				107			—		—		—
Other income and (deductions)
Interest expense, net		(61	)		—				(61	)		—		—		—
Other, net		13			—				13			—		—		—
Total other income and (deductions)		(48	)		—				(48	)		—		—		—
Income before income taxes		42			17				59			—		—		—
Income taxes		12			5		(b),(c)		17			—		—		—
Net income	$	30		$	12			$	42		$	—	$	—	$	—
	Twelve Months Ended December 31, 2016										Twelve Months Ended December 31, 2015
	GAAP (a)			Adjustments				Adjusted Non-GAAP			GAAP (a)		Adjustments		Adjusted Non-GAAP
Operating revenues	$	3,643		$	—			$	3,643		$	—	$	—	$	—
Operating expenses
Purchased power and fuel		1,447			—				1,447			—		—		—
Operating and maintenance		1,233			(392	)	(b),(c)		841			—		—		—
Depreciation and amortization		515			—				515			—		—		—
Taxes other than income		354			—				354			—		—		—
Total operating expenses		3,549			(392	)			3,157			—		—		—
Loss on sales of assets		(1	)		—				(1	)		—		—		—
Operating income		93			392				485			—		—		—
Other income and (deductions)
Interest expense, net		(195	)		—				(195	)		—		—		—
Other, net		44			—				44			—		—		—
Total other income and (deductions)		(151	)		—				(151	)		—		—		—
(Loss) income before income taxes		(58	)		392				334			—		—		—
Income taxes		3			103		(b),(c)		106			—		—		—
Net (loss) income	$	(61	)	$	289			$	228		$	—	$	—	$	—

As a result of the PHI acquisition completion on March 23, 2016, the table includes financial results for PHI beginning on March 24, 2016 to December 31, 2016 for the twelve months ended and quarterly results for the December 31, 2016 three months ended period. Therefore, the results of operations from 2016 and 2015 are not comparable for PHI and Exelon. The explanations below identify any other significant or unusual items affecting the results of operations. PHI consolidated results includes Potomac Electric Power Company, Delmarva Power & Light Company, and Atlantic City Electric Company.

(a) Results reported in accordance with GAAP.

(b) 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, partially offset in 2016 at PHI by the anticipated recovery of previously incurred PHI acquisition costs.

(c) Adjustment to exclude costs incurred as part of the settlement orders approving the PHI acquisition.

21

EXELON CORPORATION

Reconciliation of GAAP Consolidated Statements of Operations

to Adjusted(non-GAAP) Operating Earnings

(unaudited)

(in millions)

	Other (a)
	Three Months Ended December 31, 2016										Three Months Ended December 31, 2015
	GAAP (b)			Adjustments				Adjusted Non-GAAP			GAAP (b)			Adjustments				Adjusted Non-GAAP
Operating revenues	$	(327	)	$	—			$	(327	)	$	(179	)	$	—			$	(179	)
Operating expenses
Purchased power and fuel		(308	)		—				(308	)		(177	)		—				(177	)
Operating and maintenance		(19	)		8		(c),(d)		(11	)		(14	)		(10	)	(c)		(24	)
Depreciation and amortization		20			—				20			18			—				18
Taxes other than income		8			—				8			8			—				8
Total operating expenses		(299	)		8				(291	)		(165	)		(10	)			(175	)
Gain on sales of assets		1			—				1			2			—				2
Operating loss		(27	)		(8	)			(35	)		(12	)		10				(2	)
Other income and (deductions)
Interest expense, net		(58	)		—				(58	)		(45	)		—				(45	)
Other, net		(1	)		—				(1	)		(15	)		22		(i)		7
Total other income and (deductions)		(59	)		—				(59	)		(60	)		22				(38	)
Loss before income taxes		(86	)		(8	)			(94	)		(72	)		32				(40	)
Income taxes		(25	)		6		(c),(d),(g), (h)		(19	)		14			(18	)	(c),(h),(i)		(4	)
Equity in earnings of unconsolidated affiliates		1			—				1			1			—				1
Net loss attributable to common shareholders	$	(60	)	$	(14	)		$	(74	)	$	(85	)	$	50			$	(35	)
	Twelve Months Ended December 31, 2016										Twelve Months Ended December 31, 2015
	GAAP (b)			Adjustments				Adjusted Non-GAAP			GAAP (b)			Adjustments				Adjusted Non-GAAP
Operating revenues	$	(1,515	)	$	—			$	(1,515	)	$	(760	)	$	—			$	(760	)
Operating expenses
Purchased power and fuel		(1,436	)		—				(1,436	)		(751	)		—				(751	)
Operating and maintenance		96			(226	)	(c),(d)		(130	)		(30	)		(49	)	(c),(g)		(79	)
Depreciation and amortization		74			—				74			63			—				63
Taxes other than income		30			—				30			31			—				31
Total operating expenses		(1,236	)		(226	)			(1,462	)		(687	)		(49	)			(736	)
Gain on sale of assets		5			—				5			2			—				2
Operating loss		(274	)		226				(48	)		(71	)		49				(22	)
Other income and (deductions)
Interest expense, net		(290	)		48		(j)		(242	)		(123	)		(15	)	(c),(f)		(138	)
Other, net		4			20		(j)		24			(30	)		22		(i)		(8	)
Total other income and (deductions)		(286	)		68				(218	)		(153	)		7				(146	)
Loss before income taxes		(560	)		294				(266	)		(224	)		56				(168	)
Income taxes		(156	)		69		(c),(d),(h), (j)		(87	)		(41	)		(11	)	(c),(e),(f), (g),(h),(i)		(52	)
Equity in earnings of unconsolidated affiliates		1			—				1			1			—				1
Net loss attributable to common shareholders	$	(403	)	$	225			$	(178	)	$	(182	)	$	67			$	(115	)

(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 GAAP.

(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.

(d) Adjustment to exclude costs incurred as part of the settlement orders approving the PHI acquisition.

(e) Adjustment to exclude themark-to-market impact of Exelon’s economic hedging activities, net of intercompany eliminations.

(f) Adjustment to exclude themark-to-market impact of Exelon’s Corporate’s forward-starting interest rate swaps related to financing for the PHI acquisition, which were terminated on June 8, 2015.

(g) Adjustment to exclude a 2015 charge to earnings primarily related to the impairment of investment in long-term leases.

22

(h) Adjustment to exclude thenon-cash impact of the remeasurement of state deferred income taxes, primarily as a result of changes in forecasted apportionment.

(i) Adjustment to exclude costs associated with the exchange and redemption in December 2015 of certain mandatorily redeemable debt issued to finance the PHI merger.

(j) Adjustment to exclude the recognition of a penalty and associated interest expense in the third quarter of 2016, as a result of a tax court decision on Exelon’s like-kind exchange tax position.

23

EXELON CORPORATION

Exelon Generation Statistics

	Three Months Ended,
	December 31, 2016		September 30, 2016			June 30, 2016		March 31, 2016		December 31, 2015
Supply (in GWhs)
Nuclear Generation
Mid-Atlantic (a)		16,410		15,604			15,224		16,208		15,500
Midwest		23,743		24,262			23,001		23,662		23,620
New York (a)		4,681		4,843			4,228		4,932		4,712
Total Nuclear Generation		44,834		44,709			42,453		44,802		43,832
Fossil and Renewables (a)
Mid-Atlantic		442		706			685		898		746
Midwest		442		273			324		449		490
New England		1,142		1,886			2,016		1,924		408
New York		1		1			1		1		—
ERCOT		1,056		2,472			1,879		1,376		1,163
Other Power Regions (b)		1,935		2,103			1,995		2,147		1,834
Total Fossil and Renewables		5,018		7,441			6,900		6,795		4,641
Purchased Power
Mid-Atlantic		2,849		7,139			3,131		3,755		1,441
Midwest		400		461			688		706		814
New England		4,768		3,927			3,782		4,155		6,372
ERCOT		3,189		2,895			2,259		2,294		2,501
Other Power Regions (b)		3,308		3,803			3,879		2,600		4,636
					��
Total Purchased Power		14,514		18,225			13,739		13,510		15,764
Total Supply/Sales by Region (d)
Mid-Atlantic (c)		19,701		23,449			19,040		20,861		17,687
Midwest (c)		24,585		24,996			24,013		24,817		24,924
New England		5,910		5,813			5,798		6,079		6,780
New York		4,682		4,844			4,229		4,933		4,712
ERCOT		4,245		5,367			4,138		3,670		3,664
Other Power Regions (b)		5,243		5,906			5,874		4,747		6,470
Total Supply/Sales by Region		64,366		70,375			63,092		65,107		64,237
	Three Months Ended,
	December 31, 2016		September 30, 2016			June 30, 2016		March 31, 2016		December 31, 2015
Outage Days (e)
Refueling		71		17			87		70		103
Non-refueling		32		—			21		10		21
Total Outage Days		103		17			108		80		124

(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 South, West and Canada.

(c) Includes affiliate sales to PECO and BGE in theMid-Atlantic region and affiliate sales to ComEd in the Midwest region. As a result of the PHI merger, includes affiliate sales to Pepco, DPL, and ACE in theMid-Atlantic region for the successor period of March 24, 2016 to March 31, 2016, April 1, 2016 to June 30, 2016, July 1, 2016 to September 30, 2016, and October 1, 2016 to December 31, 2016.

(d) Excludes physical proprietary trading volumes of 2,164 GWh, 1,506 GWh, 1,289 GWh, 1,220 GWh, and 1,932 GWh, for the three months ended December 31, 2016, September 30, 2016, June 30, 2016, March 31, 2016, and December 31, 2015, respectively.

(e) Outage days exclude Salem.

24

EXELON CORPORATION

Exelon Generation Statistics

Twelve Months Ended December 31, 2016

	December 31, 2016		December 31, 2015
Supply (in GWhs)
Nuclear Generation
Mid-Atlantic (a)		63,447		63,283
Midwest		94,668		93,422
New York (a)		18,684		18,769
Total Nuclear Generation		176,799		175,474
Fossil and Renewables
Mid-Atlantic		2,731		2,774
Midwest		1,488		1,547
New England		6,968		2,983
New York		3		3
ERCOT		6,785		5,763
Other Power Regions (b)		8,179		7,848
Total Fossil and Renewables		26,154		20,918
Purchased Power
Mid-Atlantic		16,874		8,160
Midwest		2,255		2,325
New England		16,632		24,309
New York		—		—
ERCOT		10,637		10,070
Other Power Regions (b)		13,589		18,773
Total Purchased Power		59,987		63,637
Total Supply/Sales by Region (d)
Mid-Atlantic (c)		83,052		74,217
Midwest (c)		98,411		97,294
New England		23,600		27,292
New York		18,687		18,772
ERCOT		17,422		15,833
Other Power Regions (b)		21,768		26,621
Total Supply/Sales by Region		262,940		260,029

(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 South, West and Canada.

(c) Includes affiliate sales to PECO and BGE in theMid-Atlantic region and affiliate sales to ComEd in the Midwest region. As a result of the PHI merger, includes affiliate sales to Pepco, DPL, and ACE in theMid-Atlantic region for the successor period of March 24, 2016 to December 31, 2016.

(d) Excludes physical proprietary trading volumes of 6,179 GWh and 7,310 GWh for the twelve months ended December 31, 2016 and 2015, respectively.

25

EXELON CORPORATION

ComEd Statistics

Three Months Ended December 31, 2016 and 2015

	Electric Deliveries (in GWhs)										Revenue (in millions)
	2016		2015		% Change			Weather- Normal % Change			2016		2015		% Change
Retail Deliveries and Sales (a)
Residential		6,052		5,895		2.7	%		(2.1	)%	$	578	$	574		0.7	%
Small Commercial & Industrial		7,527		7,412		1.6	%		(1.2	)%		310		308		0.6	%
Large Commercial & Industrial		6,784		6,402		6.0	%		3.2	%		112		104		7.7	%
Public Authorities & Electric Railroads		351		344		2.0	%		(2.0	)%		12		11		9.1	%
Total Retail		20,714		20,053		3.3	%		(0.1	)%		1,012		997		1.5	%
Other Revenue (b)												211		199		6.0	%
Total Electric Revenue (c)											$	1,223	$	1,196		2.3	%
Purchased Power											$	317	$	327		(3.1	)%

							% Change
Heating and Cooling Degree-Days	2016		2015		Normal		From 2015			From Normal
Heating Degree-Days		2,037		1,718		2,293		18.6	%		(11.2	)%
Cooling Degree-Days		27		1		11		2,600.0	%		145.5	%

Twelve Months Ended December 31, 2016 and 2015

	Electric Deliveries (in GWhs)										Revenue (in millions)
	2016		2015		% Change			Weather- Normal % Change			2016		2015		% Change
Retail Deliveries and Sales (a)
Residential		27,790		26,496		4.9	%		(0.6	)%	$	2,597	$	2,360		10.0	%
Small Commercial & Industrial		31,975		31,717		0.8	%		(0.3	)%		1,316		1,337		(1.6	)%
Large Commercial & Industrial		27,842		27,210		2.3	%		1.5	%		462		443		4.3	%
Public Authorities & Electric Railroads		1,298		1,309		(0.8	)%		(0.8	)%		45		42		7.1	%
Total Retail		88,905		86,732		2.5	%		0.2	%		4,420		4,182		5.7	%
Other Revenue (b)												834		723		15.4	%
Total Electric Revenue (c)											$	5,254	$	4,905		7.1	%
Purchased Power											$	1,458	$	1,319		10.5	%

							% Change
Heating and Cooling Degree-Days	2016		2015		Normal		From 2015			From Normal
Heating Degree-Days		5,715		6,091		6,341		(6.2	)%		(9.9	)%
Cooling Degree-Days		1,157		806		842		43.5	%		37.4	%

Number of Electric Customers	2016		2015
Residential		3,595,376		3,550,239
Small Commercial & Industrial		374,644		370,932
Large Commercial & Industrial		2,007		1,976
Public Authorities & Electric Railroads		4,750		4,820
Total		3,976,777		3,927,967

(a) Reflects delivery volume and revenue 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, revenue also reflects the cost of energy and transmission.

(b) Other revenue primarily includes transmission revenue from PJM. Other items include rental revenue, revenue related to late payment charges, revenue from other utilities for mutual assistance programs and recoveries of environmental costs associated with MGP sites.

(c) Includes operating revenues from affiliates totaling $3 million and $1 million for the three months ended December 31, 2016 and 2015, and $15 million and $4 million for the twelve months ended December 31, 2016 and 2015, respectively.

26

EXELON CORPORATION

PECO Statistics

Three Months Ended December 31, 2016 and 2015

	Electric and Gas Deliveries										Revenue (in millions)
	2016		2015		% Change			Weather- Normal % Change			2016		2015		% Change
Electric (in GWhs)
Retail Deliveries and Sales (a)
Residential		2,982		2,701		10.4	%		(2.4	)%	$	353	$	323		9.3	%
Small Commercial & Industrial		1,863		1,812		2.8	%		(3.2	)%		96		97		(1.0	)%
Large Commercial & Industrial		3,665		3,621		1.2	%		0.4	%		52		55		(5.5	)%
Public Authorities & Electric Railroads		218		214		1.9	%		1.9	%		7		8		(12.5	)%
Total Retail		8,728		8,348		4.6	%		(1.3	)%		508		483		5.2	%
Other Revenue (b)												52		52		—	%
Total Electric Revenue												560		535		4.7	%
Natural Gas (in mmcfs)
Retail Deliveries and Sales
Retail Sales (c)		17,959		13,269		35.3	%		0.9	%		132		101		30.7	%
Transportation and Other		6,713		6,294		6.7	%		(3.5	)%		9		9		—	%
Total Gas		24,672		19,563		26.1	%		(0.2	)%		141		110		28.2	%
Total Electric and Gas Revenues											$	701	$	645		8.7	%
Purchased Power and Fuel											$	238	$	236		0.8	%

							% Change
Heating and Cooling Degree-Days	2016		2015		Normal		From 2015			From Normal
Heating Degree-Days		1,425		981		1,632		45.3	%		(12.7	)%
Cooling Degree-Days		42		21		23		100.0	%		82.6	%

Twelve Months Ended December 31, 2016 and 2015

	Electric and Gas Deliveries										Revenue (in millions)
	2016		2015		% Change			Weather- Normal % Change			2016		2015		% Change
Electric (in GWhs)
Retail Deliveries and Sales (a)
Residential		13,664		13,630		0.2	%		0.4	%	$	1,631	$	1,599		2.0	%
Small Commercial & Industrial		8,099		8,118		(0.2	)%		0.5	%		430		428		0.5	%
Large Commercial & Industrial		15,263		15,365		(0.7	)%		(1.4	)%		234		221		5.9	%
Public Authorities & Electric Railroads		890		881		1.0	%		1.0	%		32		31		3.2	%
Total Retail		37,916		37,994		(0.2	)%		(0.3	)%		2,327		2,279		2.1	%
Other Revenue (b)												204		207		(1.4	)%
Total Electric Revenue												2,531		2,486		1.8	%
Natural Gas (in mmcfs)
Retail Deliveries and Sales
Retail Sales (c)		56,447		59,003		(4.3	)%		1.5	%		430		511		(15.9	)%
Transportation and Other		27,630		27,879		(0.9	)%		(0.1	)%		33		35		(5.7	)%
Total Gas		84,077		86,882		(3.2	)%		1.0	%		463		546		(15.2	)%
Total Electric and Gas Revenues											$	2,994	$	3,032		(1.3	)%
Purchased Power and Fuel											$	1,047	$	1,190		(12.0	)%

							% Change
Heating and Cooling Degree-Days	2016		2015		Normal		From 2015			From Normal
Heating Degree-Days		4,041		4,245		4,613		(4.8	)%		(12.4	)%
Cooling Degree-Days		1,726		1,720		1,301		0.3	%		32.7	%

Number of Electric Customers	2016		2015		Number of Gas Customers	2016		2015
Residential		1,456,585		1,444,338	Residential		472,606		467,263
Small Commercial & Industrial		150,142		149,200	Commercial & Industrial		43,668		43,160
Large Commercial & Industrial		3,096		3,091	Total Retail		516,274		510,423
Public Authorities & Electric Railroads		9,823		9,805	Transportation		790		827
Total		1,619,646		1,606,434	Total		517,064		511,250

(a) Reflects delivery volume and revenue 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, revenue also reflects the cost of energy and transmission.

27

(b) Other revenue includes transmission revenue from PJM and wholesale electric revenue.

(c) Reflects delivery volume and revenue 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.

(d) Total electric revenue includes operating revenues from affiliates totaling $2 million and less than $1 million for the three months ended December 31, 2016 and 2015, respectively, and $7 million and $1 million for the twelve months ended December 31, 2016 and 2015, respectively. Total natural gas revenues includes operating revenues from affiliates totaling less than $1 million for both three months ended December 31, 2016 and 2015, and $1 million for both twelve months ended December 31, 2016 and 2015.

28

EXELON CORPORATION

BGE Statistics

Three Months Ended December 31, 2016 and 2015

	Electric and Gas Deliveries							Revenue (in millions)
	2016		2015		% Change			2016		2015		% Change
Electric (in GWhs)
Retail Deliveries and Sales (a)
Residential		2,744		2,333		17.6	%	$	350	$	317		10.4	%
Small Commercial & Industrial		697		706		(1.3	)%		65		65		—	%
Large Commercial & Industrial		3,330		3,558		(6.4	)%		112		118		(5.1	)%
Public Authorities & Electric Railroads		67		70		(4.3	)%		9		8		12.5	%
Total Retail		6,838		6,667		2.6	%		536		508		5.5	%
Other Revenue (b)									75		73		2.7	%
Total Electric Revenue									611		581		5.2	%
Natural Gas (in mmcfs)
Retail Deliveries and Sales (c)
Retail Sales		27,394		24,137		13.5	%		190		157		21.0	%
Transportation and Other (d)		1,898		1,716		10.6	%		11		8		37.5	%
Total Gas		29,292		25,853		13.3	%		201		165		21.8	%
Total Electric and Gas Revenues								$	812	$	746		8.8	%
Purchased Power and Fuel								$	300	$	268		11.9	%

							% Change
Heating and Cooling Degree-Days	2016		2015		Normal		From 2015			From Normal
Heating Degree-Days		1,549		1,248		1,685		24.1	%		(8.1	)%
Cooling Degree-Days		32		15		25		113.3	%		28.0	%

Twelve Months Ended December 31, 2016 and 2015

	Electric and Gas Deliveries							Revenue (in millions)
	2016		2015		% Change			2016		2015		% Change
Electric (in GWhs)
Retail Deliveries and Sales (a)
Residential		12,740		12,598		1.1	%	$	1,554	$	1,449		7.2	%
Small Commercial & Industrial		3,040		3,119		(2.5	)%		277		273		1.5	%
Large Commercial & Industrial		13,957		14,293		(2.4	)%		449		469		(4.3	)%
Public Authorities & Electric Railroads		283		294		(3.7	)%		35		32		9.4	%
Total Retail		30,020		30,304		(0.9	)%		2,315		2,223		4.1	%
Other Revenue (b)									294		267		10.1	%
Total Electric Revenue									2,609		2,490		4.8	%
Natural Gas (in mmcfs)
Retail Deliveries and Sales (c)
Retail Sales		96,808		96,618		0.2	%		593		607		(2.3	)%
Transportation and Other (d)		5,977		6,238		(4.2	)%		31		38		(18.4	)%
Total Natural Gas		102,785		102,856		(0.1	)%		624		645		(3.3	)%
Total Electric and Gas Revenues								$	3,233	$	3,135		3.1	%
Purchased Power and Fuel								$	1,294	$	1,305		(0.8	)%

							% Change
Heating and Cooling Degree-Days	2016		2015		Normal		From 2015			From Normal
Heating Degree-Days		4,427		4,666		4,684		(5.1	)%		(5.5	)%
Cooling Degree-Days		998		924		876		8.0	%		13.9	%

Number of Electric Customers	2016		2015		Number of Gas Customers	2016		2015
Residential		1,150,096		1,137,934	Residential		623,647		616,994
Small Commercial & Industrial		113,230		113,138	Commercial & Industrial		44,255		44,119
Large Commercial & Industrial		12,053		11,906	Total Retail		667,902		661,113
Public Authorities & Electric Railroads		280		285	Transportation		—		—
Total		1,275,659		1,263,263	Total		667,902		661,113

(a) Reflects delivery volume and revenue 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, revenue also reflects the cost of energy and transmission.

(b) Other revenue includes wholesale transmission revenue and late payment charges.

29

(c) Reflects delivery volume and revenue 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.

(d) Transportation and other gas revenue includesoff-system revenue of 1,898 mmcfs ($8 million) and 1,716 mmcfs ($7 million) for the three months ended December 31, 2016 and 2015, respectively, and 5,977 mmcfs ($23 million) and 6,238 mmcfs ($35 million) for the twelve months ended December 31, 2016 and 2015, respectively.

30

EXELON CORPORATION

Pepco Statistics

Three Months Ended December 31, 2016 and 2015

	Electric Deliveries							Revenue (in millions)
	2016		2015		% Change			2016		2015		% Change
Electric (in GWhs)
Retail Deliveries and Sales (a)
Residential		1,720		1,608		7.0	%	$	209	$	201		4.0	%
Small Commercial & Industrial		335		321		4.4	%		34		37		(8.1	)%
Large Commercial & Industrial		3,669		3,592		2.1	%		190		187		1.6	%
Public Authorities & Electric Railroads		180		174		3.4	%		9		7		28.6	%
Total Retail		5,904		5,695		3.7	%		442		432		2.3	%
Other Revenue (b)									49		56		(12.5	)%
Total Electric Revenue (c)									491		488		0.6	%
Purchased Power								$	143	$	146		(2.1	)%

							% Change
Heating and Cooling Degree-Days	2016		2015		Normal		From 2015			From Normal
Heating Degree-Days		1,217		966		1,380		26.0	%		(11.8	)%
Cooling Degree-Days		64		22		39		190.9	%		64.1	%

Twelve Months Ended December 31, 2016 and 2015

	Electric Deliveries							Revenue (in millions)
	2016		2015		% Change			2016		2015		% Change
Electric (in GWhs)
Retail Deliveries and Sales (a)
Residential		8,372		8,452		(0.9	)%	$	1,000	$	970		3.1	%
Small Commercial & Industrial		1,459		1,471		(0.8	)%		150		153		(2.0	)%
Large Commercial & Industrial		15,559		15,351		1.4	%		803		777		3.3	%
Public Authorities & Electric Railroads		724		714		1.4	%		32		30		6.7	%
Total Retail		26,114		25,988		0.5	%		1,985		1,930		2.8	%
Other Revenue (b)									201		199		1.0	%
Total Electric Revenue (c)									2,186		2,129		2.7	%
Purchased Power								$	706	$	719		(1.8	)%

							% Change
Heating and Cooling Degree-Days	2016		2015		Normal		From 2015			From Normal
Heating Degree-Days		3,624		3,657		3,887		(0.9	)%		(6.8	)%
Cooling Degree-Days		1,936		1,936		1,626		—	%		19.1	%

Number of Electric Customers	2016		2015
Residential		780,652		767,392
Small Commercial & Industrial		53,529		53,838
Large Commercial & Industrial		21,391		20,976
Public Authorities & Electric Railroads		130		129
Total		855,702		842,335

(a) Reflects delivery volumes and 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, revenue also reflects the cost of energy and transmission.

(b) Other revenue includes transmission revenue from PJM and wholesale electric revenues.

(c) Includes operating revenues from affiliates totaling $1 million for the three months ended December 31, 2016 and 2015, and $5 million for the twelve months ended December 31, 2016 and 2015.

31

EXELON CORPORATION

DPL Statistics

Three Months Ended December 31, 2016 and 2015

	Electric and Natural Gas Deliveries							Revenue (in millions)
	2016		2015		% Change			2016		2015		% Change
Electric (in GWhs)
Retail Deliveries and Sales (a)
Residential		1,115		1,041		7.1	%	$	147	$	146		0.7	%
Small Commercial & Industrial		544		506		7.5	%		45		47		(4.3	)%
Large Commercial & Industrial		1,131		1,233		(8.3	)%		24		24		—	%
Public Authorities & Electric Railroads		12		11		9.1	%		3		3		—	%
Total Retail		2,802		2,791		0.4	%		219		220		(0.5	)%
Other Revenue (b)									38		43		(11.6	)%
Total Electric Revenue (c)									257		263		(2.3	)%
Natural Gas (in mmcfs)
Retail Deliveries and Sales (d)
Retail Sales		4,834		3,096		56.1	%		40		31		29.0	%
Transportation and Other (e)		1,000		1,477		(32.3	)%		6		4		50.0	%
Total Natural Gas		5,834		4,573		27.6	%		46		35		31.4	%
Total Electric and Natural Gas Revenues								$	303	$	298		1.7	%
Purchased Power and Fuel								$	135	$	135		—	%

							% Change
Heating and Cooling Degree-Days	2016		2015		Normal		From 2015			From Normal
Heating Degree-Days		1,507		1,146		1,598		31.5	%		(5.7	)%
Cooling Degree-Days		43		13		24		230.8	%		79.2	%

Twelve Months Ended December 31, 2016 and 2015

	Electric and Natural Gas Deliveries							Revenue (in millions)
	2016		2015		% Change			2016		2015		% Change
Electric (in GWhs)
Retail Deliveries and Sales (a)
Residential		5,181		5,337		(2.9	)%	$	668	$	681		(1.9	)%
Small Commercial & Industrial		2,290		2,311		(0.9	)%		187		192		(2.6	)%
Large Commercial & Industrial		4,623		4,781		(3.3	)%		98		101		(3.0	)%
Public Authorities & Electric Railroads		46		45		2.2	%		13		12		8.3	%
Total Retail		12,140		12,474		(2.7	)%		966		986		(2.0	)%
Other Revenue (b)									163		152		7.2	%
Total Electric Revenue (c)									1,129		1,138		(0.8	)%
Natural Gas (in mmcfs)
Retail Deliveries and Sales (d)
Retail Sales		14,087		13,816		2.0	%		127		143		(11.2	)%
Transportation and Other (e)		5,455		6,193		(11.9	)%		21		21		—	%
Total Natural Gas		19,542		20,009		(2.3	)%		148		164		(9.8	)%
Total Electric and Natural Gas Revenues								$	1,277	$	1,302		(1.9	)%
Purchased Power and Fuel								$	583	$	634		(8.0	)%

							% Change
Heating and Cooling Degree-Days	2016		2015		Normal		From 2015			From Normal
Heating Degree-Days		4,319		4,421		4,572		(2.3	)%		(5.5	)%
Cooling Degree-Days		1,453		1,328		1,188		9.4	%		22.3	%

Number of Electric Customers	2016		2015		Number of Natural Gas Customers	2016		2015
Residential		456,181		453,145	Residential		120,951		119,771
Small Commercial & Industrial		60,173		59,714	Commercial & Industrial		9,801		9,712
Large Commercial & Industrial		1,411		1,410	Total Retail		130,752		129,483
Public Authorities & Electric Railroads		643		643	Transportation		156		159
Total		518,408		514,912	Total		130,908		129,642

(a) 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, revenue also reflects the cost of energy and transmission.

(b) Other revenue includes transmission revenue from PJM and wholesale electric revenues.

32

(c) Includes operating revenues from affiliates totaling $1 million and $2 million for the three months ended December 31, 2016 and 2015, respectively, and $7 million and $6 million for the twelve months ended December 31, 2016 and 2015, respectively.

(d) 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.

(e) Transportation and other revenue includesoff-system natural gas sales and the short-term release of interstate pipeline transportation and storage capacity not needed to serve customers.

33

EXELON CORPORATION

ACE Statistics

Three Months Ended December 31, 2016 and 2015

	Electric Deliveries							Revenue (in millions)
	2016		2015		% Change			2016		2015		% Change
Electric (in GWhs)
Retail Deliveries and Sales (a)
Residential		826		870		(5.1	)%	$	134	$	141		(5.0	)%
Small Commercial & Industrial		457		292		56.5	%		50		40		25.0	%
Large Commercial & Industrial		697		925		(24.6	)%		43		58		(25.9	)%
Public Authorities & Electric Railroads		14		13		7.7	%		3		3		—	%
Total Retail		1,994		2,100		(5.0	)%		230		242		(5.0	)%
Other Revenue (b)									45		50		(10.0	)%
Total Electric Revenue (c)									275		292		(5.8	)%
Purchased Power and Fuel								$	133	$	155		(14.2	)%

							% Change
Heating and Cooling Degree-Days	2016		2015		Normal		From 2015			From Normal
Heating Degree-Days		1,549		1,147		1,625		35.0	%		(4.7	)%
Cooling Degree-Days		36		11		21		227.3	%		71.4	%

Twelve Months Ended December 31, 2016 and 2015

	Electric Deliveries							Revenue (in millions)
	2016		2015		% Change			2016		2015		% Change
Electric (in GWhs)
Retail Deliveries and Sales (a)
Residential		4,153		4,322		(3.9	)%	$	664	$	690		(3.8	)%
Small Commercial & Industrial		1,455		1,288		13.0	%		183		175		4.6	%
Large Commercial & Industrial		3,402		3,594		(5.3	)%		201		213		(5.6	)%
Public Authorities & Electric Railroads		49		45		8.9	%		13		12		8.3	%
Total Retail		9,059		9,249		(2.1	)%		1,061		1,090		(2.7	)%
Other Revenue (b)									196		205		(4.4	)%
Total Electric Revenue (c)									1,257		1,295		(2.9	)%
Purchased Power								$	651	$	708		(8.1	)%

							% Change
Heating and Cooling Degree-Days	2016		2015		Normal		From 2015			From Normal
Heating Degree-Days		4,487		4,671		4,768		(3.9	)%		(5.9	)%
Cooling Degree-Days		1,303		1,259		1,093		3.5	%		19.2	%

Number of Electric Customers	2016		2015
Residential		484,240		482,000
Small Commercial & Industrial		61,008		60,745
Large Commercial & Industrial		3,763		3,871
Public Authorities & Electric Railroads		610		529
Total		549,621		547,145

(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, revenue also reflects the cost of energy and transmission.

(b) Other revenue includes transmission revenue from PJM and wholesale electric revenues.

(c) Includes operating revenues from affiliates totaling $1 million for the three months ended December 31, 2016 and 2015, and $3 million and $4 million for the twelve months ended December 31, 2016 and 2015, respectively.

34