Delmarva Power & Light Company
Balance Sheets
(Unaudited)
| | | | | | | | | | | |
| (In millions) | March 31, 2026 | | December 31, 2025 |
| ASSETS | | | |
| Current assets | | | |
| Cash and cash equivalents | $ | 12 | | | $ | 9 | |
| Restricted cash and cash equivalents | 10 | | | 3 | |
| Accounts receivable | | | |
| Customer accounts receivable | 228 | | 253 |
| Customer allowance for credit losses | (24) | | (19) |
| Customer accounts receivable, net | 204 | | | 234 | |
| Other accounts receivable | 73 | | 75 |
| Other allowance for credit losses | (11) | | (10) |
| Other accounts receivable, net | 62 | | | 65 | |
| Receivables from affiliates | 2 | | | 2 | |
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| Inventories, net | | | |
| Fossil fuel | 5 | | | 9 | |
| Materials and supplies | 105 | | | 107 | |
| Prepaid utility taxes | 16 | | | 29 | |
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| Regulatory assets | 78 | | | 72 | |
| Prepaid renewable energy credits | 10 | | | 30 | |
| Other | 20 | | | 13 | |
| Total current assets | 524 | | | 573 | |
Property, plant, and equipment (net of accumulated depreciation and amortization of $2,289 and $2,241 as of March 31, 2026 and December 31, 2025, respectively) | 5,921 | | | 5,855 | |
| Deferred debits and other assets | | | |
| Regulatory assets | 208 | | | 214 | |
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| Other | 145 | | | 147 | |
| Total deferred debits and other assets | 353 | | | 361 | |
| Total assets | $ | 6,798 | | | $ | 6,789 | |
See the Combined Notes to Consolidated Financial Statements
42
Delmarva Power & Light Company
Balance Sheets
(Unaudited)
| | | | | | | | | | | |
| (In millions) | March 31, 2026 | | December 31, 2025 |
| LIABILITIES AND SHAREHOLDER'S EQUITY | | | |
| Current liabilities | | | |
| Short-term borrowings | $ | 46 | | | $ | 161 | |
| Long-term debt due within one year | 63 | | | 53 | |
| Accounts payable | 163 | | | 218 | |
| Accrued expenses | 66 | | | 70 | |
| Payables to affiliates | 25 | | | 25 | |
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| Customer deposits | 37 | | | 36 | |
| Regulatory liabilities | 49 | | | 42 | |
| Renewable energy credit obligations | 37 | | | 49 | |
| Other | 29 | | | 22 | |
| Total current liabilities | 515 | | | 676 | |
| Long-term debt | 2,358 | | | 2,291 | |
| Deferred credits and other liabilities | | | |
| Deferred income taxes and unamortized investment tax credits | 1,028 | | | 996 | |
| Regulatory liabilities | 318 | | | 316 | |
| Asset retirement obligations | 13 | | | 12 | |
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| | | |
| Other | 123 | | | 127 | |
| Total deferred credits and other liabilities | 1,482 | | | 1,451 | |
| Total liabilities | 4,355 | | | 4,418 | |
| Commitments and contingencies | | | |
| Shareholder's equity | | | |
| Common stock | 1,767 | | | 1,722 | |
| | | |
| Retained earnings | 676 | | | 649 | |
| Total shareholder's equity | 2,443 | | | 2,371 | |
| Total liabilities and shareholder's equity | $ | 6,798 | | | $ | 6,789 | |
See the Combined Notes to Consolidated Financial Statements
43
Delmarva Power & Light Company
Statements Of Changes In Shareholder's Equity
(Unaudited)
| | | | | | | | | | | | | | | | | | | |
| Three Months Ended March 31, 2026 |
| (In millions) | Common Stock | | | | Retained Earnings | | Total Shareholder's Equity |
| Balance at December 31, 2025 | $ | 1,722 | | | | | $ | 649 | | | $ | 2,371 | |
| Net income | — | | | | | 77 | | | 77 | |
| Common stock dividends | — | | | | | (50) | | | (50) | |
| Contributions from parent | 45 | | | | | — | | | 45 | |
| Balance at March 31, 2026 | $ | 1,767 | | | | | $ | 676 | | | $ | 2,443 | |
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| Three Months Ended March 31, 2025 |
| (In millions) | Common Stock | | | | Retained Earnings | | Total Shareholder's Equity |
| Balance at December 31, 2024 | $ | 1,615 | | | | | $ | 627 | | | $ | 2,242 | |
| Net income | — | | | | | 69 | | | 69 | |
| Common stock dividends | — | | | | | (46) | | | (46) | |
| Contributions from parent | 99 | | | | | — | | | 99 | |
| Balance at March 31, 2025 | $ | 1,714 | | | | | $ | 650 | | | $ | 2,364 | |
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See the Combined Notes to Consolidated Financial Statements
44
Atlantic City Electric Company and Subsidiary Company
Consolidated Statements of Operations and Comprehensive Income
(Unaudited)
| | | | | | | | | | | | | | | | | |
| | | Three Months Ended
March 31, |
| (In millions) | | | | | 2026 | | 2025 |
| Operating revenues | | | | | | | |
| Electric operating revenues | | | | | $ | 438 | | | $ | 372 | |
| Revenues from alternative revenue programs | | | | | (18) | | | — | |
| Operating revenues from affiliates | | | | | 1 | | | 1 | |
| Total operating revenues | | | | | 421 | | | 373 | |
| Operating expenses | | | | | | | |
| Purchased power | | | | | 205 | | | 157 | |
| | | | | | | |
| Operating and maintenance | | | | | 50 | | | 51 | |
| Operating and maintenance from affiliates | | | | | 43 | | | 39 | |
| Depreciation and amortization | | | | | 65 | | | 64 | |
| Taxes other than income taxes | | | | | 2 | | | 2 | |
| Total operating expenses | | | | | 365 | | | 313 | |
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| Operating income | | | | | 56 | | | 60 | |
| Other income and (deductions) | | | | | | | |
| Interest expense, net | | | | | (22) | | | (21) | |
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| Other, net | | | | | 2 | | | 3 | |
| Total other income and (deductions) | | | | | (20) | | | (18) | |
| Income before income taxes | | | | | 36 | | | 42 | |
| Income taxes | | | | | 9 | | | 11 | |
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| Net income | | | | | $ | 27 | | | $ | 31 | |
| Comprehensive income | | | | | $ | 27 | | | $ | 31 | |
See the Combined Notes to Consolidated Financial Statements
45
Atlantic City Electric Company and Subsidiary Company
Statements Of Cash Flows
(Unaudited)
| | | | | | | | | | | |
| Three Months Ended
March 31, |
| (In millions) | 2026 | | 2025 |
| Cash flows from operating activities | | | |
| Net income | $ | 27 | | | $ | 31 | |
| Adjustments to reconcile net income to net cash flows provided by operating activities: | | | |
| Depreciation and amortization | 65 | | | 64 | |
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| Deferred income taxes and amortization of investment tax credits | 30 | | | 8 | |
| Other non-cash operating activities | 34 | | | 25 | |
| Changes in assets and liabilities: | | | |
| Accounts receivable | 15 | | | 21 | |
| Receivables from and payables to affiliates, net | (4) | | | (2) | |
| Inventories | (2) | | | — | |
| Accounts payable and accrued expenses | (1) | | | (8) | |
| Collateral (paid) received, net | (5) | | | 6 | |
| Income taxes | (21) | | | 3 | |
| Regulatory assets and liabilities, net | (32) | | | (28) | |
| Pension and non-pension postretirement benefit contributions | (13) | | | (3) | |
| Other assets and liabilities | 1 | | | (5) | |
| Net cash flows provided by operating activities | 94 | | | 112 | |
| Cash flows from investing activities | | | |
| Capital expenditures | (122) | | | (105) | |
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| Net cash flows used in investing activities | (122) | | | (105) | |
| Cash flows from financing activities | | | |
| Changes in short-term borrowings | (148) | | | (186) | |
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| Issuance of long-term debt | 100 | | | 100 | |
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| Changes in PHI intercompany money pool | — | | | 12 | |
| Dividends paid on common stock | (25) | | | (20) | |
| Contributions from parent | 91 | | | 94 | |
| Other financing activities | (1) | | | (2) | |
| Net cash flows provided by (used in) financing activities | 17 | | | (2) | |
| (Decrease) increase in cash and cash equivalents | (11) | | | 5 | |
| Cash and cash equivalents at beginning of period | 24 | | | 14 | |
| Cash and cash equivalents at end of period | $ | 13 | | | $ | 19 | |
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| Supplemental cash flow information | | | |
| Decrease in capital expenditures not paid | $ | (8) | | | $ | (12) | |
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See the Combined Notes to Consolidated Financial Statements
46
Atlantic City Electric Company and Subsidiary Company
Consolidated Balance Sheets
(Unaudited)
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| (In millions) | March 31, 2026 | | December 31, 2025 |
| ASSETS | | | |
| Current assets | | | |
| Cash and cash equivalents | $ | 12 | | | $ | 22 | |
| Restricted cash and cash equivalents | 1 | | | 2 | |
| Accounts receivable | | | |
| Customer accounts receivable | 216 | | 239 |
| Customer allowance for credit losses | (31) | | (27) |
| Customer accounts receivable, net | 185 | | | 212 | |
| Other accounts receivable | 80 | | 64 |
| Other allowance for credit losses | (12) | | (13) |
| Other accounts receivable, net | 68 | | | 51 | |
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| Receivables from affiliates | 12 | | | 12 | |
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| Inventories, net | 78 | | | 76 | |
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| Regulatory assets | 74 | | | 93 | |
| Other | 8 | | | 8 | |
| Total current assets | 438 | | | 476 | |
Property, plant, and equipment (net of accumulated depreciation and amortization of $2,003 and $1,956 as of March 31, 2026 and December 31, 2025, respectively) | 4,615 | | | 4,556 | |
| Deferred debits and other assets | | | |
| Regulatory assets | 582 | | | 559 | |
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| Other | 50 | | | 41 | |
| Total deferred debits and other assets | 632 | | | 600 | |
| Total assets | $ | 5,685 | | | $ | 5,632 | |
See the Combined Notes to Consolidated Financial Statements
47
Atlantic City Electric Company and Subsidiary Company
Consolidated Balance Sheets
(Unaudited)
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| (In millions) | March 31, 2026 | | December 31, 2025 |
| LIABILITIES AND SHAREHOLDER'S EQUITY | | | |
| Current liabilities | | | |
| Short-term borrowings | $ | — | | | $ | 148 | |
| Long-term debt due within one year | 5 | | | 5 | |
| Accounts payable | 180 | | | 168 | |
| Accrued expenses | 43 | | | 64 | |
| Payables to affiliates | 20 | | | 24 | |
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| Customer deposits | 26 | | | 26 | |
| Regulatory liabilities | 52 | | | 48 | |
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| Other | 9 | | | 13 | |
| Total current liabilities | 335 | | | 496 | |
| Long-term debt | 2,128 | | | 2,028 | |
| Deferred credits and other liabilities | | | |
| Deferred income taxes and unamortized investment tax credits | 900 | | | 869 | |
| Regulatory liabilities | 135 | | | 137 | |
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| Other | 66 | | | 74 | |
| Total deferred credits and other liabilities | 1,101 | | | 1,080 | |
| Total liabilities | 3,564 | | | 3,604 | |
| Commitments and contingencies | | | |
| Shareholder's equity | | | |
| Common stock | 2,104 | | | 2,013 | |
| Retained earnings | 17 | | | 15 | |
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| Total shareholder's equity | 2,121 | | | 2,028 | |
| Total liabilities and shareholder's equity | $ | 5,685 | | | $ | 5,632 | |
See the Combined Notes to Consolidated Financial Statements
48
Atlantic City Electric Company and Subsidiary Company
Consolidated Statements Of Changes In Shareholder's Equity
(Unaudited)
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| Three Months Ended March 31, 2026 |
| (In millions) | Common Stock | | | | Retained (Deficit) Earnings | | Total Shareholder's Equity |
| Balance at December 31, 2025 | $ | 2,013 | | | | | $ | 15 | | | $ | 2,028 | |
| Net income | — | | | | | 27 | | | 27 | |
| Common stock dividends | — | | | | | (25) | | | (25) | |
| Contributions from parent | 91 | | | | | — | | | 91 | |
| Balance at March 31, 2026 | $ | 2,104 | | | | | $ | 17 | | | $ | 2,121 | |
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| Three Months Ended March 31, 2025 |
| (In millions) | Common Stock | | | | Retained (Deficit) Earnings | | Total Shareholder's Equity |
| Balance at December 31, 2024 | $ | 1,915 | | | | | $ | 10 | | | $ | 1,925 | |
| Net income | — | | | | | 31 | | | 31 | |
| Common stock dividends | — | | | | | (20) | | | (20) | |
| Contributions from parent | 94 | | | | | — | | | 94 | |
| Balance at March 31, 2025 | $ | 2,009 | | | | | $ | 21 | | | $ | 2,030 | |
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49
Combined Notes to Consolidated Financial Statements
(Dollars in millions, except per share data, unless otherwise noted)
Note 1 — Significant Accounting Policies
1. Significant Accounting Policies (All Registrants)
Description of Business (All Registrants)
Exelon is a utility services holding company engaged in the energy transmission and distribution businesses through ComEd, PECO, BGE, Pepco, DPL, and ACE.
| | | | | | | | | | | | | | |
| Name of Registrant | | Business | | Service Territories |
| Commonwealth Edison Company | | Purchase and regulated retail sale of electricity | | Northern Illinois, including the City of Chicago (and, through its subsidiary ComEd of Indiana, transmission in a small portion of northwestern Indiana) |
| | Transmission and distribution of electricity to retail customers | | |
| PECO Energy Company | | Purchase and regulated retail sale of electricity and natural gas | | Southeastern Pennsylvania, including the City of Philadelphia (electricity) |
| | Transmission and distribution of electricity and distribution of natural gas to retail customers | | Pennsylvania counties surrounding the City of Philadelphia (natural gas) |
| Baltimore Gas and Electric Company | | Purchase and regulated retail sale of electricity and natural gas | | Central Maryland, including the City of Baltimore (electricity and natural gas) |
| | Transmission and distribution of electricity and distribution of natural gas to retail customers | | |
| Pepco Holdings LLC | | Utility services holding company engaged, through its reportable segments Pepco, DPL, and ACE | | Service Territories of Pepco, DPL, and ACE |
| | | | |
Potomac Electric
Power Company | | Purchase and regulated retail sale of electricity | | District of Columbia, and major portions of Montgomery and Prince George’s Counties, Maryland |
| | Transmission and distribution of electricity to retail customers | | |
Delmarva Power &
Light Company | | Purchase and regulated retail sale of electricity and natural gas | | Portions of Delaware and Maryland (electricity) |
| | Transmission and distribution of electricity and distribution of natural gas to retail customers | | Portions of New Castle County, Delaware (natural gas) |
| Atlantic City Electric Company | | Purchase and regulated retail sale of electricity | | Portions of Southern New Jersey |
| | Transmission and distribution of electricity to retail customers | | |
Prior Period Adjustments (ACE)
In the first quarter of 2026, management identified an error in the historical rate classification for a limited number of ACE customers that resulted in the overstatement of Regulatory assets and Revenues from alternative revenue programs. Management has concluded that the error was not material to previously issued or to the current period financial statements.
The impact of the error correction recognized in the first quarter of 2026 was a $14 million decrease to ACE’s Revenues from alternative revenue programs, a $4 million decrease to Income taxes, and a corresponding decrease of $14 million in Regulatory assets. The overall impact on ACE’s Operating income was a decrease of $14 million, and the impact on ACE’s Net income was $10 million. The error did not impact any net cash flow subtotal for the three months ended March 31, 2026.
Basis of Presentation (All Registrants)
This is a combined quarterly report of all Registrants. The Notes to the Consolidated Financial Statements apply to the Registrants as indicated parenthetically next to each corresponding disclosure. When appropriate, the Registrants are named specifically for their related activities and disclosures. Each of the Registrants' Consolidated Financial Statements includes the accounts of its subsidiaries. All intercompany transactions have been eliminated.
Through its business services subsidiary, BSC, Exelon provides its subsidiaries with a variety of support services at cost, including legal, human resources, financial, information technology, and supply management services. PHI also has a business services subsidiary, PHISCO, which provides a variety of support services at cost, including legal, finance, engineering, customer operations, transmission and distribution planning, asset management, system operations, and power procurement, to PHI operating Registrants. The costs of BSC and
Combined Notes to Consolidated Financial Statements
(Dollars in millions, except per share data, unless otherwise noted)
Note 1 — Significant Accounting Policies
PHISCO are directly charged or allocated to the applicable subsidiaries. The results of Exelon’s corporate operations are presented as “Other” within the consolidated financial statements and include intercompany eliminations unless otherwise disclosed.
The accompanying consolidated financial statements as of March 31, 2026 and for the three months ended March 31, 2026 and 2025 are unaudited but, in the opinion of each Registrant's management, the Registrants include all adjustments that are considered necessary for a fair statement of the Registrants’ respective financial statements in accordance with GAAP. All adjustments are of a normal, recurring nature, except as otherwise disclosed. The December 31, 2025 Consolidated Balance Sheets were derived from audited financial statements. The interim financial statements are to be read in conjunction with prior annual financial statements and notes. Additionally, financial results for interim periods are not necessarily indicative of results that may be expected for any other interim period or for the fiscal year ending December 31, 2026. These Combined Notes to Consolidated Financial Statements have been prepared pursuant to the rules and regulations of the SEC for Quarterly Reports on Form 10-Q. Certain information and note disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations.
New Accounting Standards (All Registrants)
New Accounting Standards Issued and Not Yet Adopted as of March 31, 2026: The following new authoritative accounting guidance issued by the FASB has not yet been adopted and reflected by the Registrants in their consolidated financial statements as of March 31, 2026. Unless otherwise indicated, the Registrants are currently assessing the impacts such guidance may have (which could be material) in their Consolidated Balance Sheets, Consolidated Statements of Operations and Comprehensive Income, Consolidated Statements of Cash Flows and disclosures, as well as the potential to early adopt where applicable. The Registrants have assessed other FASB issuances of new standards which are not listed below given the current expectation that such standards will not significantly impact the Registrants' financial reporting.
Disaggregation of Income Statement Expenses (Issued November 2024). Provides additional disclosure requirements related to relevant expense captions of income statement expense line items. The revised guidance requires a new tabular disclosure of disaggregated income statement expenses including a break out of (1) purchases of inventory, (2) employee compensation, (3) depreciation, (4) intangible asset amortization, (5) depreciation, depletion, and amortization recognized as part of oil and gas producing activities included in each relevant expense line item on the income statement. The tabular disaggregation should include certain amounts already required to be disclosed under GAAP elsewhere. Any remaining amounts not separately disaggregated quantitatively should include a qualitative description. Additionally, on an annual basis, the standard requires disclosure of management’s definition of selling expenses and the amount of expense. The standard is effective January 1, 2027, with early adoption permitted.
2. Regulatory Matters (All Registrants)
As discussed in Note 2 — Regulatory Matters of the 2025 Form 10-K, the Registrants are involved in rate and regulatory proceedings at FERC and their state commissions. The following discusses developments in 2026 and updates to the 2025 Form 10-K.
Combined Notes to Consolidated Financial Statements — (Continued)
(Dollars in millions, except per share data, unless otherwise noted)
Note 2 — Regulatory Matters
Distribution Base Rate Case Proceedings
The following tables show the completed and pending distribution base rate case proceedings in 2026.
Completed Distribution Base Rate Case Proceedings
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| Registrant/Jurisdiction | | Filing Date | | Service | | Requested Revenue Requirement Increase | | Approved Revenue Requirement Increase | | Approved ROE | | Approval Date | | Rate Effective Date |
| ComEd - Illinois | | January 17, 2023 | | Electric | | $ | 1,487 | | | $ | 1,045 | | | 8.905% | | December 19, 2024 | | January 1, 2024 |
| April 26, 2024 (amended on September 11, 2024) | | Electric | | $ | 624 | | | $ | 623 | | | 9.89% | | October 31, 2024 | | January 1, 2025 |
| PECO - Pennsylvania | | March 28, 2024 | | Electric | | $ | 464 | | | $ | 354 | | | N/A | | December 12, 2024 | | January 1, 2025 |
| Natural Gas | $ | 111 | | | $ | 78 | |
| BGE - Maryland | | February 17, 2023 | | Electric | | $ | 313 | | | $ | 179 | | | 9.50% | | December 14, 2023 | | January 1, 2024 |
| | Natural Gas | | $ | 289 | | | $ | 229 | | | 9.45% | | |
| Pepco - District of Columbia | | April 13, 2023 (amended February 27, 2024) | | Electric | | $ | 186 | | | $ | 123 | | | 9.50% | | November 26, 2024 | | January 1, 2025 |
| Pepco - Maryland | | May 16, 2023 (amended February 23, 2024) | | Electric | | $ | 111 | | | $ | 45 | | | 9.50% | | June 10, 2024 | | April 1, 2024 |
| DPL - Maryland | | May 19, 2022 | | Electric | | $ | 38 | | | $ | 29 | | | 9.60% | | December 14, 2022 | | January 1, 2023 |
| DPL - Delaware | | December 15, 2022 (amended September 29, 2023) | | Electric | | $ | 39 | | | $ | 28 | | | 9.60% | | April 18, 2024 | | July 15, 2023 |
| September 20, 2024 (amended September 5, 2025) | | Natural Gas | | $ | 37 | | | $ | 22 | | | 9.60% | | December 17, 2025 | | January 1, 2026 |
| ACE - New Jersey | | November 21, 2024 | | Electric | | $ | 109 | | | $ | 54 | | | 9.60% | | November 21, 2025 | | December 1, 2025 |
Pending Distribution Base Rate Case Proceedings
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| Registrant/Jurisdiction | | Filing Date | | Service | | Requested Revenue Requirement Increase | | Requested ROE | | Expected Approval Timing |
| | | | | | | | | | |
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Pepco - Maryland(a) | | October 14, 2025 (amended April 16, 2026) | | Electric | | $ | 120 | | | 10.50% | | Third quarter of 2026 |
DPL - Delaware(b) | | December 9, 2025 | | Electric | | $ | 45 | | | 10.50% | | Third quarter of 2027 |
__________(a)On April 14, 2026, Pepco notified the MDPSC of pursuing a traditional base rate case.
(b)DPL can implement interim rates on July 9, 2026, subject to refund.
Combined Notes to Consolidated Financial Statements — (Continued)
(Dollars in millions, except per share data, unless otherwise noted)
Note 2 — Regulatory Matters
ComEd Distribution Base Rate Case Proceedings
The ICC approved ComEd's four-year MRP for the period January 1, 2024 through December 31, 2027. The MRP was originally approved by the ICC on December 14, 2023 and was subsequently amended on January 10, 2024, April 18, 2024 and December 19, 2024. The December 19, 2024 order provided a total revenue requirement increase of $1.045 billion inclusive of rate increases of approximately $752 million in 2024, $80 million in 2025, $102 million in 2026, and $111 million in 2027.
On May 1, 2026, ComEd filed its 2025 MRP Reconciliation reflecting a revenue increase of $234 million, which includes the tax benefit of NOLCs. While NOLCs were included in the MRP Reconciliation, the impacts of the NOLCs will not be reflected in the financial statements until the PLR is received from the IRS. See Note 6 — Income Taxes for additional information on NOLCs.
On March 20, 2026, ComEd filed its annual revenue balancing reconciliation for 2025. This reconciliation, which is a component of revenue decoupling, reflected a revenue reduction of $128 million. The reconciliation is effective January 1, 2027, subject to regulatory approval.
On December 18, 2025, the ICC approved ComEd's 2024 MRP Reconciliation reflecting a revenue increase of $243 million, including the tax benefit of NOLCs. While NOLCs are included in the MRP Reconciliation per the final order, the impacts of the NOLCs will not be reflected in the financial statements until the PLR is received from the IRS. See Note 6 — Income Taxes for additional information on NOLCs. On January 20, 2026, the Illinois Attorney General filed an Application for Rehearing of the December 18 order, which focuses solely on NOLCs. On February 5, 2026, the ICC denied the Illinois Attorney General's Application for Rehearing.
PECO Distribution Base Rate Case Proceedings
On December 12, 2024, the PAPUC issued their Opinions and Orders which approved the non-unanimous partial settlements with limited modifications for both the electric and natural gas base rate cases, and denied the Weather Normalization Adjustment requested in the natural gas base rate case.
PECO’s approved annual electric revenue requirement increase of $354 million is partially offset by a one-time credit of $64 million in 2025. In addition, the PAPUC approved the recovery of storm damage costs incurred by PECO in January 2024, up to $23 million, subject to review for reasonableness and prudency in PECO’s next distribution rate case.
BGE Distribution Base Rate Case Proceedings
In February 2023, BGE filed its three-year cumulative multi-year plan for January 1, 2024 through December 31, 2026 to the MDPSC, which was approved in December 2023 and went into effect on January 1, 2024. The MDSPC awarded BGE electric revenue requirement increases of $41 million, $113 million, and $25 million with an approved ROE of 9.50% in 2024, 2025, and 2026, respectively, and natural gas revenue requirement increases of $126 million, $62 million, and $41 million with an approved ROE of 9.45% in 2024, 2025, and 2026, respectively. The requested revenue requirement increases will be used to recover capital investments designed to increase the resilience of the electric and gas distribution systems and support Maryland's climate and regulatory initiatives.
The MDPSC also approved a portion of the requested 2021 and 2022 reconciliation amounts, which were recovered through separate electric and gas riders between March 2024 and February 2025. As such, the reconciliation amounts are not included in the approved revenue increases. The 2021 reconciliation amounts are $13 million and $7 million for electric and gas, respectively, and the 2022 reconciliation amounts are $39 million and $15 million for electric and gas, respectively. In April 2024, BGE filed with the MDPSC its request for recovery of the 2023 reconciliation amounts of $79 million and $73 million for electric and gas, respectively, with supporting testimony and schedules. In December 2025, the MDPSC authorized BGE to recover $31 million and $46 million for electric and gas, respectively, beginning in February 2026 and extending through December 2027, in the reconciliation rider. In addition to the amounts approved in the reconciliation rider, the MDPSC provided for additional regulatory assets related to minor storms of $24 million (to be recovered over 5 years) and the Baltimore City conduit of $4 million (to be reviewed along with a cost-benefit analysis in BGE’s next rate case).
Pepco District of Columbia Distribution Base Rate Case Proceedings
Combined Notes to Consolidated Financial Statements — (Continued)
(Dollars in millions, except per share data, unless otherwise noted)
Note 2 — Regulatory Matters
On April 13, 2023, Pepco filed an electric base rate case with the DCPSC (amended February 27, 2024) requesting a total revenue requirement increase of $186 million and an ROE of 10.50%. The DCPSC issued an order approving the two-year cumulative multi-year plan on November 26, 2024, which included a total revenue requirement increase of $123 million with an ROE of 9.50% effective January 1, 2025 through December 31, 2026. The DCPSC awarded Pepco electric incremental revenue requirement increases of $99 million and $24 million for 2025 and 2026, respectively. Subsequent to DCPSC approval of the order, interveners appealed the order on several grounds including that the DCPSC did not hold evidentiary hearings. On March 5, 2026, the District of Columbia Court of Appeals remanded the November 26, 2024, order back to the DCPSC to hold evidentiary hearings. On March 27, 2026, the DCPSC issued an order adopting a procedural schedule and requested supplemental briefing on what interim rates should be in effect during the remand period but did not order any refunds for previous amounts collected. Pepco is preparing for the proceeding and will continue to monitor developments.
Pepco Maryland Distribution Base Rate Case Proceedings
On May 16, 2023, Pepco filed an electric base rate case with the MDPSC (amended February 23, 2024) requesting a total revenue requirement increase of $111 million (before offsets) and an ROE of 10.50%. The MDPSC issued an order on June 10, 2024 awarding Pepco a one-year multi-year plan for April 1, 2024 through March 31, 2025 which included an incremental revenue requirement increase of $45 million and an ROE of 9.50%. The MDPSC did not adopt the requested revenue requirement increases of $80 million (before offsets), $51 million, and $14 million as filed for 2025, 2026, and the 2027 nine-month extension period, respectively. The MDPSC also approved the requested reconciliation amounts for the 12-month periods ending March 31, 2022, and March 31, 2023, which will be recovered through a rider between August 2024 through March 2026. As such, the reconciliation amounts are not included in the approved revenue requirement increases. The reconciliation amounts are $1 million and $7 million, for the 12-month periods ending March 31, 2022, and March 31, 2023, respectively. In July 2024, Pepco filed its request with the MDPSC, for recovery of the reconciliation amounts of $31 million for the 12-month period ended March 31, 2024, with supporting testimony and schedules. On March 31, 2026, the MDPSC issued an order authorizing Pepco to recover approximately $13 million through the reconciliation rider. This will be recovered through rates between May 2026 through April 2027. Additionally, the order disallowed the recovery of various assets. The order resulted in the write off of $11 million of Regulatory assets and $15 million of Property, plant and equipment with a total of $26 million recorded in Operations and maintenance expense.
DPL Maryland Distribution Base Rate Case Proceedings
On May 19, 2022, DPL filed an electric base rate case with the MDPSC requesting a total revenue requirement increase of $38 million based on an ROE of 10.25%. On December 14, 2022, the MDPSC issued an order awarding DPL a total revenue requirement increase of $29 million with an ROE of 9.60%. The order reflects a three-year cumulative multi-year plan for January 1, 2023 through December 31, 2025, with rates remaining in effect subsequent to the multi-year plan period. The MDPSC awarded DPL electric incremental revenue requirement increases of $17 million, $6 million, and $6 million for 2023, 2024, and 2025, respectively.
DPL Delaware Distribution Base Rate Case Proceedings
On December 15, 2022, DPL filed an electric base rate case with the DEPSC (amended September 29, 2023) requesting a total revenue requirement increase of $39 million and an ROE of 10.50%. On April 18, 2024, the DEPSC issued an order awarding DPL a total revenue requirement increase of $28 million with an ROE of 9.60%, effective July 15, 2023. As part of the approved order, the DEPSC approved the Significant Storm Expense Rate Rider (Rider SSER) which will allow DPL to recover expenses associated with qualified storms. A qualified storm will be an individual storm for which DPL incurs expenses between $5 million and $15 million. The Rider SSER allows DPL to recover significant storm damage expenses for the previous 12-month period over a future 24-month period. For individual storm events for which DPL incurs expenses of more than $15 million, the future recovery period will be evaluated on a case-by-case basis and the unamortized balance will earn a return at DPL's authorized long-term cost of debt. The Rider SSER will have an annual true-up filing, subject to DEPSC review and approval.
ACE New Jersey Distribution Base Rate Case Proceedings
Combined Notes to Consolidated Financial Statements — (Continued)
(Dollars in millions, except per share data, unless otherwise noted)
Note 2 — Regulatory Matters
On November 21, 2024, ACE filed an electric base rate case with the NJBPU requesting a total revenue requirement increase of $109 million, before NJ sales and use tax, and an ROE of 10.70%. On November 21, 2025, the NJBPU issued an order awarding ACE an electric revenue requirement increase, before NJ sales and use tax, of $54 million effective December 1, 2025, with an ROE of 9.60%. In addition, the NJBPU approved the recovery through a regulatory asset of work stoppage costs that were incurred by ACE in 2023 of $38 million.
Other State Regulatory Matters
Illinois Regulatory Matters
CEJA (Exelon and ComEd). On September 15, 2021, the Governor of Illinois signed into law CEJA. CEJA includes, among other features, (1) procurement of CMCs from qualifying nuclear-powered generating facilities, (2) a requirement to file a general rate case or a new four-year MRP no later than January 20, 2023 to establish rates effective after ComEd’s existing performance-based distribution formula rate sunsets, (3) requirements that ComEd and the ICC initiate and conduct various regulatory proceedings on subjects including ethics, spending, grid investments, and performance metrics.
ComEd Electric Distribution Rates
Beginning in 2024, ComEd recovers from retail customers, subject to certain exceptions, the costs it incurs to provide electric delivery services either through its electric distribution rate or other recovery mechanisms authorized by CEJA. On January 17, 2023, ComEd filed a petition with the ICC seeking approval of a MRP for 2024-2027. The MRP supports a multi-year grid plan (2024-2027 Grid Plan), also filed on January 17, covering planned investments on the electric distribution system within ComEd’s service area through 2027. Costs incurred during each year of the MRP are subject to ICC review and the plan’s revenue requirement for each year will be reconciled with the actual costs that the ICC determines are prudently and reasonably incurred for that year. The reconciliation is subject to adjustment for certain costs, including a limitation on recovery of costs that are more than 105% of certain costs in the previously approved MRP revenue requirement, absent a modification of the rate plan itself. Thus, for example, the rate adjustments necessary to reconcile 2024 revenues to ComEd’s actual 2024 costs incurred would take effect in January 2026 after the ICC’s review during 2025.
On December 14, 2023, the ICC issued a final order. The ICC rejected ComEd’s 2024-2027 Grid Plan as non-compliant with certain requirements of CEJA and required ComEd to file a revised 2024-2027 Grid Plan. On January 10, 2024, ComEd filed an appeal in the Illinois Appellate Court of portions of the ICC's December 2023 order, including but not limited to the allowed ROE, 50% equity ratio, and denial of a return on ComEd’s pension asset. There is no deadline by when the appellate court must rule. On March 13, 2024, ComEd filed its Refiled 2024-2027 Grid Plan with supporting testimony and schedules with the ICC and subsequently on March 15, 2024, ComEd also filed a petition to adjust its MRP to authorize increased rates consistent with the Refiled 2024-2027 Grid Plan. On December 19, 2024, the ICC approved the Refiled 2024-2027 Grid Plan and adjusted the approved MRP with rates effective on January 1, 2025. The final approved MRP, as adjusted, which reflects the Refiled Grid Plan, resulted in a total cumulative revenue requirement increase of $1.045 billion over the 2024-2027 plan years and remains subject to annual reconciliations in accordance with CEJA. ComEd filed timely requests for rehearing and an appeal of the MRP order, again limited to the issues on which rehearing of the December 2023 order was denied, including the allowed ROE, 50% equity ratio, and denial of a return on ComEd's pension asset.
On January 16, 2026, ComEd filed a multi-year integrated grid plan (2028-2031 Grid Plan), seeking approval for planned investments on the electric distribution system within ComEd's service area in 2028-2031. The ICC must issue an order by December 15, 2026.
Carbon Mitigation Credit
CEJA establishes decarbonization requirements for Illinois as well as programs to support the retention and development of emissions-free sources of electricity. ComEd is required to purchase CMCs from participating nuclear power generating facilities between June 1, 2022 and May 31, 2027. The price to be paid for each CMC was established through a competitive bidding process that included consumer-protection measures that capped the maximum acceptable bid amount and a formula that reduces CMC prices by an energy price index, the base residual auction capacity price in the ComEd zone of PJM, and the monetized value of any federal tax credit or other subsidy if applicable. On October 31, 2025, the seller provided notification to ComEd and the IPA that it has reflected on its 2024 federal tax return $804 million of nuclear production tax credits associated with its
Combined Notes to Consolidated Financial Statements — (Continued)
(Dollars in millions, except per share data, unless otherwise noted)
Note 2 — Regulatory Matters
participating nuclear power generating facilities. These amounts will be collected from the seller through an adjustment to the CMC price to be paid by ComEd and returned to customers in 2026. As of December 31, 2025, Exelon and ComEd's Consolidated Balance Sheets reflected these amounts as a receivable from the seller with an offsetting balance within the Carbon mitigation credit regulatory liability. These adjustments had no net impact on Exelon and ComEd’s Consolidated Statements of Operations and Comprehensive Income. The seller has not provided notification to ComEd or the IPA that any subsidies or tax credits, such as nuclear production tax credits, have been monetized for 2025. The consumer protection measures contained in CEJA will result in net payments to ComEd ratepayers if the energy index, the capacity price and applicable federal tax credits or subsidy exceed the CMC contract price. Beginning with the June 2022 monthly billing period, ComEd began issuing credits and/or charges to its retail customers under its CMC rider, the Rider Carbon-Free Resource Adjustment (Rider CFRA). A regulatory asset or liability is recorded for the difference between ComEd's costs associated with the procurement of CMCs from participating nuclear power generating facilities and revenues received from customers. The balance of the liability as of March 31, 2026 is $434 million.
On February 2, 2024, ComEd filed a petition with the ICC to initiate the reconciliation proceeding for the costs incurred in connection with the procurement of CMC’s during the delivery year beginning June 1, 2022 and extending through May 31, 2023. While both Staff and the Administrative Law Judge's proposed order supported ComEd’s proposed reconciliation adjustment, on September 4, 2025, the ICC issued its final order rejecting the proposed reconciliation adjustment. Specifically, the order disallowed portions of the administrative costs as well as a portion of ComEd's interest costs on the balance of credit extended to customers under the applicable tariff that were not yet funded by payments from the generator. The CMC costs themselves were not disallowed. The order resulted in an immaterial impact to the financial statements and on October 3, 2025 ComEd filed its Application for Rehearing. On October 16, 2025, the ICC denied ComEd's Application. On October 17, 2025, ComEd filed its appeal with the Illinois Appellate Court for review of the ICC's order and its denial of rehearing.
Energy Efficiency
CEJA extends ComEd’s current cumulative annual energy efficiency MWh savings goals through 2040, adds expanded electrification measures to those goals, increases low-income commitments, and adds a new performance adjustment to the energy efficiency formula rate. ComEd expects its annual spend to increase through 2040 to achieve these energy efficiency MWh savings goals, which is deferred as a separate regulatory asset that is recovered through the energy efficiency formula rate over the weighted average useful life, as approved by the ICC, of the related energy efficiency measures.
In 2026, Illinois enacted the CRGA, which makes certain changes to the energy efficiency framework established under CEJA.
CRGA modifies the manner in which ComEd’s energy efficiency savings goals are calculated by establishing a flat incremental annual savings requirement that applies indefinitely. CRGA also increases energy efficiency budget and low‑income commitments from levels established under CEJA, expands the categories of savings that may be credited toward annual goals, and revises the return on equity applicable to the energy efficiency regulatory asset to align with the distribution return on equity.
Beginning in 2027, ComEd expects that implementation of CRGA may result in higher annual energy efficiency spending. Incremental costs incurred in advance of recovery are expected to be deferred as a regulatory asset and recovered through ComEd’s energy efficiency formula rate over the weighted‑average useful life of the related measures, subject to approval by the Illinois Commerce Commission.
The energy efficiency provisions of CRGA are effective June 1, 2026. In advance of the effective date, ComEd has begun undertaking implementation activities, including regulatory filings and planning efforts.
Combined Notes to Consolidated Financial Statements — (Continued)
(Dollars in millions, except per share data, unless otherwise noted)
Note 2 — Regulatory Matters
Maryland Regulatory Matters
Summer and Winter Rate Mitigation (Exelon, BGE, PHI, Pepco, and DPL). As part of the passing of the Next Generation Energy Act of 2025 by the Maryland General Assembly, the MDPSC issued an order on June 26, 2025, to implement the Legislative Energy Relief Refund program under which bill credits were distributed to residential customers based on their consumption of electricity supply that was subject to the renewable energy portfolio standard. On July 24, 2025, the MDPSC issued an order accepting BGE, Pepco, and DPL's proposal for the implementation of the program. As a result, BGE, Pepco, and DPL received $49 million, $21 million, and $8 million, respectively, from the MDPSC on February 3, 2026. These amounts were used to reduce residential customer account receivable balances within the first quarter of 2026.
Other Federal Regulatory Matters
PJM Cost Allocation Methodology (All Registrants). On March 6, 2026, FERC issued an order requiring the removal of the de minimis threshold exemption in the calculation of the cost responsibility of certain transmission reliability upgrade costs allocated to the rate zones of PJM transmission owners, including the Utility Registrants. FERC further ordered PJM to recalculate historical cost allocations for the period beginning June 18, 2015, and to pass through additional charges or payments to PJM customers, including Utility Registrants, as applicable, with interest within 90 days. On April 29, 2026, the time for those calculations was extended until further order from FERC. The Utility Registrants expect to recover any incremental charges incurred or reimburse any payments received through prospective electric customer rates. On April 6, 2026, a number of parties filed petitions for rehearing or clarification.
The final impacts of the decision cannot be predicted and the results, while not reasonably estimable at this time, could be material to the financial statements.
Regulatory Assets and Liabilities
The Utility Registrants' regulatory assets and liabilities have not changed materially since December 31, 2025, unless noted below. See Note 2 — Regulatory Matters of the 2025 Form 10-K for additional information on the specific regulatory assets and liabilities.
ComEd. Regulatory assets increased $155 million primarily due to an increase of $127 million in the Electric energy and natural gas costs regulatory asset.
PECO. Regulatory assets increased $132 million primarily due to an increase of $72 million in the Deferred income taxes regulatory asset. Regulatory liabilities increased $88 million primarily due to an increase of $91 million in the Decommissioning the Regulatory Agreement Units.
BGE. Regulatory assets decreased $102 million primarily due to a decrease of $45 million in the Electric energy and natural gas costs regulatory asset and a decrease of $42 million in the Energy efficiency and demand response programs regulatory asset. Regulatory liabilities decreased $16 million primarily due to a decrease of $31 million in the Deferred income taxes regulatory liability.
Pepco. Regulatory assets decreased $42 million primarily due to a decrease of $27 million in the Energy efficiency and demand response programs regulatory asset.
DPL. Regulatory assets remained consistent primarily due to a decrease of $15 million in the Energy efficiency and demand response programs regulatory asset, partially offset by an increase of $8 million in the Electric energy and natural gas costs regulatory asset and an increase of $4 million in the Transmission formula rate annual reconciliations regulatory asset.
ACE. Regulatory liabilities increased $2 million primarily due to an increase of $13 million in the Electric energy and natural gas costs regulatory liability, partially offset by a decrease of $4 million in the Transmission formula rate annual reconciliations regulatory liability and a decrease of $4 million in the Over-recovered credit loss expense regulatory liability.
Combined Notes to Consolidated Financial Statements — (Continued)
(Dollars in millions, except per share data, unless otherwise noted)
Note 2 — Regulatory Matters
Capitalized Ratemaking Amounts Not Recognized
The following table presents authorized amounts capitalized for ratemaking purposes related to earnings on shareholders' investment that are not recognized for financial reporting purposes in the Registrants' Consolidated Balance Sheets. These amounts will be recognized as revenues in the related Consolidated Statements of Operations and Comprehensive Income in the periods they are billable to the Utility Registrants' customers. PECO had no related amounts at March 31, 2026 and December 31, 2025.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Exelon | | ComEd(a) | | BGE(b) | | PHI | | Pepco(c) | | DPL(d) | | ACE(e) |
| March 31, 2026 | | | $ | 79 | | | $ | 10 | | | $ | 39 | | | $ | 30 | | | $ | 14 | | | $ | — | | | $ | 16 | |
| | | | | | | | | | | | | | | |
| December 31, 2025 | | | 98 | | | 12 | | | 47 | | | 39 | | | 22 | | | 1 | | | 16 | |
__________
(a)For the three months ended March 31, 2026 reflects ComEd's unrecognized equity returns earned for ratemaking purposes on its electric distribution rate regulatory asset. For the year ended December 31, 2025, reflects ComEd's unrecognized equity returns earned for ratemaking purposes on its electric distribution rates and distributed generation regulatory assets.
(b)BGE's amount capitalized for ratemaking purposes primarily relates to investments in rate base included in the multi-year plan reconciliations.
(c)Pepco's authorized amounts capitalized for ratemaking purposes relate to earnings on shareholders' investment on AMI programs, Energy efficiency and demand response programs, investments in rate base and revenues included in the multi-year plan reconciliations, and a portion of Pepco District of Columbia's revenue decoupling.
(d)DPL's authorized amounts capitalized for ratemaking purposes relate to earnings on shareholders' investment on AMI programs and Energy efficiency and demand response programs.
(e)ACE's authorized amounts capitalized for ratemaking purposes primarily relate to earnings on shareholders' investment on AMI programs.
3. Revenue from Contracts with Customers (All Registrants)
The Registrants recognize revenue from contracts with customers to depict the transfer of goods or services to customers at an amount that the entities expect to be entitled to in exchange for those goods or services. The primary sources of revenue include regulated electric and gas tariff sales, distribution, and transmission services.
See Note 3 — Revenue from Contracts with Customers of the 2025 Form 10-K for additional information regarding the primary sources of revenue for the Registrants.
Contract Liabilities
The Registrants record contract liabilities when consideration is received or due prior to the satisfaction of the performance obligations. The Registrants record contract liabilities in Other current liabilities and Other noncurrent deferred credits and other liabilities in their Consolidated Balance Sheets.
For Pepco, DPL, and ACE these contract liabilities primarily relate to upfront consideration received in the third quarter of 2020 for a collaborative arrangement ("Agreement") with an unrelated owner and manager of communication infrastructure, as well as additional consideration received for the payment option amendment ("Amendment") executed during the fourth quarter of 2023, which is discussed in further detail within Note 3 — Revenue from Contracts with Customers of the 2025 Form 10-K. The contract liability balance attributable to the Agreement and the Amendment is being recognized as Electric operating revenues over a 35 year period and 31 year period, respectively.
The following table provides a rollforward of the contract liabilities reflected in Exelon's, PHI's, Pepco's, DPL's, and ACE's Consolidated Balance Sheets for the three months ended March 31, 2026 and 2025. At March 31, 2026 and December 31, 2025, ComEd's, PECO's, and BGE's contract liabilities were immaterial.
Combined Notes to Consolidated Financial Statements — (Continued)
(Dollars in millions, except per share data, unless otherwise noted)
Note 3 — Revenue from Contracts with Customers
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | |
| | Exelon(a) | | PHI(a) | | Pepco(a) | | DPL | | ACE |
| Balance at December 31, 2025 | | $ | 119 | | | $ | 119 | | | $ | 95 | | | $ | 12 | | | $ | 12 | |
| Revenues recognized | | (1) | | | (1) | | | (1) | | | — | | | — | |
| Balance at March 31, 2026 | | $ | 118 | | | $ | 118 | | | $ | 94 | | | $ | 12 | | | $ | 12 | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | Exelon(a) | | PHI(a) | | Pepco(a) | | DPL | | ACE |
| Balance at December 31, 2024 | | $ | 127 | | | $ | 127 | | | $ | 101 | | | $ | 13 | | | $ | 13 | |
| Revenues recognized | | (1) | | | (1) | | | (1) | | | — | | | — | |
| Balance at March 31, 2025 | | $ | 126 | | | $ | 126 | | | $ | 100 | | | $ | 13 | | | $ | 13 | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
__________(a)Revenues recognized in the three months ended March 31, 2026 and 2025, were included in the contract liabilities at December 31, 2025 and 2024, respectively.
Transaction Price Allocated to Remaining Performance Obligations
The following table shows the amounts of future revenues expected to be recorded in each year for performance obligations that are unsatisfied or partially unsatisfied as of March 31, 2026. This disclosure only includes contracts for which the total consideration is fixed and determinable at contract inception. The average contract term varies by customer type and commodity but ranges from one month to several years.
This disclosure excludes the Utility Registrants' gas and electric tariff sales contracts and transmission revenue contracts as they generally have an original expected duration of one year or less and, therefore, do not contain any future, unsatisfied performance obligations to be included in this disclosure.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year | Exelon | | PHI | | Pepco | | DPL | | ACE |
| 2026 | $ | 4 | | | $ | 4 | | | $ | 4 | | | $ | — | | | $ | — | |
| 2027 | 6 | | | 6 | | | 5 | | | 1 | | | — | |
| 2028 | 6 | | | 6 | | | 5 | | | — | | | 1 | |
| 2029 | 7 | | | 7 | | | 6 | | | 1 | | | — | |
| 2030 and thereafter | 95 | | | 95 | | | 74 | | | 10 | | | 11 | |
| Total | $ | 118 | | | $ | 118 | | | $ | 94 | | | $ | 12 | | | $ | 12 | |
Revenue Disaggregation
The Registrants disaggregate revenue recognized from contracts with customers into categories that depict how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors. See Note 4 — Segment Information for the presentation of the Registrants' revenue disaggregation.
Combined Notes to Consolidated Financial Statements — (Continued)
(Dollars in millions, except per share data, unless otherwise noted)
Note 4 — Segment Information
4. Segment Information (All Registrants)
Operating segments for each of the Registrants are determined based on information used by the CODMs in deciding how to evaluate performance and allocate resources at each of the Registrants. The Chief Executive Officer is the CODM for Exelon. For PHI and each of the Utility Registrants, CODM responsibilities are shared by Exelon's Chief Operating Officer and the Utility Registrant's Chief Executive Officer.
Exelon has six reportable segments, which include ComEd, PECO, BGE, and PHI's three reportable segments consisting of Pepco, DPL, and ACE. ComEd, PECO, BGE, Pepco, DPL, and ACE each represent a single reportable segment, and as such, no separate segment information is provided for these Registrants. Exelon, ComEd, PECO, BGE, PHI, Pepco, DPL, and ACE's CODMs rely on a variety of business considerations, including net income, in evaluating segment performance, determining reinvestment of profits, and establishing the amounts of dividend distributions.
An analysis and reconciliation of the Registrants’ reportable segment information to the respective information in the consolidated financial statements for the three months ended March 31, 2026 and 2025 is as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| ComEd | | PECO | | BGE | | PHI | | Other(a) | | Intersegment
Eliminations | | Exelon |
Operating revenues(b): | | | | | | | | | | | | | |
| 2026 | | | | | | | | | | | | | |
| Electric revenues | $ | 1,913 | | | $ | 1,082 | | | $ | 1,245 | | | $ | 1,911 | | | $ | — | | | $ | (17) | | | $ | 6,134 | |
| Natural gas revenues | — | | | 410 | | | 583 | | | 116 | | | — | | | (1) | | | 1,108 | |
| Shared service and other revenues | — | | | — | | | — | | | 3 | | | 489 | | | (492) | | | — | |
| Total operating revenues | $ | 1,913 | | | $ | 1,492 | | | $ | 1,828 | | | $ | 2,030 | | | $ | 489 | | | $ | (510) | | | $ | 7,242 | |
| 2025 | | | | | | | | | | | | | |
| Electric revenues | $ | 2,065 | | | $ | 956 | | | $ | 1,012 | | | $ | 1,687 | | | $ | — | | | $ | (11) | | | $ | 5,709 | |
| Natural gas revenues | — | | | 377 | | | 542 | | | 88 | | | — | | | (2) | | | 1,005 | |
| Shared service and other revenues | — | | | — | | | — | | | 3 | | | 466 | | | (469) | | | — | |
| Total operating revenues | $ | 2,065 | | | $ | 1,333 | | | $ | 1,554 | | | $ | 1,778 | | | $ | 466 | | | $ | (482) | | | $ | 6,714 | |
| Less: | | | | | | | | | | | | | |
| Purchased power | | | | | | | | | | | | | |
| 2026 | $ | 451 | | | $ | 451 | | | $ | 630 | | | $ | 850 | | | $ | — | | | $ | — | | | $ | 2,382 | |
| 2025 | 689 | | | 361 | | | 450 | | | 684 | | | — | | | — | | | 2,184 | |
| Purchased fuel | | | | | | | | | | | | | |
| 2026 | $ | — | | | $ | 161 | | | $ | 178 | | | $ | 55 | | | $ | — | | | $ | — | | | $ | 394 | |
| 2025 | — | | | 141 | | | 159 | | | 38 | | | — | | | — | | | 338 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| Operating and maintenance | | | | | | | | | | | | | |
| 2026 | $ | 335 | | | $ | 271 | | | $ | 260 | | | $ | 365 | | | $ | 447 | | | $ | (212) | | | $ | 1,466 | |
| 2025 | 323 | | | 266 | | | 242 | | | 296 | | | 429 | | | (209) | | | 1,347 | |
| Operating and maintenance from affiliates | | | | | | | | | | | | | |
| 2026 | $ | 103 | | | $ | 66 | | | $ | 67 | | | $ | 59 | | | $ | 12 | | | $ | (307) | | | $ | — | |
| 2025 | 100 | | | 61 | | | 63 | | | 53 | | | 11 | | | (288) | | | — | |
| Depreciation and amortization | | | | | | | | | | | | | |
| 2026 | $ | 404 | | | $ | 121 | | | $ | 167 | | | $ | 246 | | | $ | 14 | | | $ | — | | | $ | 952 | |
| 2025 | 380 | | | 109 | | | 164 | | | 234 | | | 16 | | | — | | | 903 | |
Combined Notes to Consolidated Financial Statements — (Continued)
(Dollars in millions, except per share data, unless otherwise noted)
Note 4 — Segment Information
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Taxes other than income taxes | | | | | | | | | | | | | |
| 2026 | $ | 105 | | | $ | 69 | | | $ | 104 | | | $ | 151 | | | $ | 14 | | | $ | — | | | $ | 443 | |
| 2025 | 99 | | | 60 | | | 96 | | | 140 | | | 10 | | | — | | | 405 | |
| Loss on sale of assets | | | | | | | | | | | | | |
| 2026 | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | |
| 2025 | — | | | — | | | — | | | 1 | | | — | | | — | | | 1 | |
Interest expense, net(c) | | | | | | | | | | | | | |
| 2026 | $ | 132 | | | $ | 69 | | | $ | 62 | | | $ | 105 | | | $ | 180 | | | $ | — | | | $ | 548 | |
| 2025 | 125 | | | 59 | | | 58 | | | 99 | | | 163 | | | — | | | 504 | |
Interest expense to affiliates, net(c) | | | | | | | | | | | | | |
| 2026 | $ | 3 | | | $ | 2 | | | $ | — | | | $ | 1 | | | $ | — | | | $ | 1 | | | $ | 7 | |
| 2025 | 3 | | | 4 | | | — | | | 1 | | | (1) | | | (1) | | | 6 | |
| Other, net | | | | | | | | | | | | | |
| 2026 | $ | (31) | | | $ | (11) | | | $ | (17) | | | $ | (18) | | | $ | — | | | $ | 8 | | | $ | (69) | |
| 2025 | (21) | | | (8) | | | (9) | | | (19) | | | (11) | | | 16 | | | (52) | |
| Income taxes | | | | | | | | | | | | | |
| 2026 | $ | 101 | | | $ | 15 | | | $ | 79 | | | $ | 47 | | | $ | (42) | | | $ | — | | | $ | 200 | |
| 2025 | 65 | | | 14 | | | 71 | | | 57 | | | (37) | | | — | | | 170 | |
| Net income (loss) attributable to common shareholders | | | | | | | | | | | | | |
| 2026 | $ | 310 | | | $ | 278 | | | $ | 298 | | | $ | 169 | | | $ | (136) | | | $ | — | | | $ | 919 | |
| 2025 | 302 | | | 266 | | | 260 | | | 194 | | | (114) | | | — | | | 908 | |
| Supplemental segment information | | | | | | | | | | | | | |
Intersegment revenues(d) | | | | | | | | | | | | | |
| 2026 | $ | 11 | | | $ | 4 | | | $ | 3 | | | $ | 3 | | | $ | 486 | | | $ | (507) | | | $ | — | |
| 2025 | 8 | | | 3 | | | 2 | | | 2 | | | 463 | | | (478) | | | — | |
| Capital expenditures | | | | | | | | | | | | | |
| 2026 | $ | 885 | | | $ | 469 | | | $ | 437 | | | $ | 558 | | | $ | 9 | | | $ | — | | | $ | 2,358 | |
| 2025 | 590 | | | 424 | | | 406 | | | 513 | | | 13 | | | — | | | 1,946 | |
| Total assets | | | | | | | | | | | | | |
| March 31, 2026 | $ | 48,478 | | | $ | 20,193 | | | $ | 17,171 | | | $ | 29,657 | | | $ | 6,380 | | | $ | (4,334) | | | $ | 117,545 | |
| December 31, 2025 | 48,285 | | | 19,362 | | | 17,184 | | | 29,715 | | | 6,170 | | | (4,146) | | | 116,570 | |
__________
(a)Other primarily includes Exelon’s corporate operations, shared service entities, and other financing and investment activities.
(b)Includes gross utility tax receipts from customers. The offsetting remittance of utility taxes to the governing bodies is recorded in Taxes other than income taxes in the Registrants’ Consolidated Statements of Operations and Comprehensive Income. See Note 14 — Supplemental Financial Information for additional information on total utility taxes.
(c)Interest expense, net and Interest expense to affiliates, net are primarily inclusive of Interest expense, which is partially offset by an immaterial amount of Interest income.
(d)See Note 15 — Related Party Transactions for additional information on intersegment revenues.
PHI:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Pepco | | DPL | | ACE | | Other(a) | | Intersegment
Eliminations | | PHI |
Operating revenues(b): | | | | | | | | | | | |
| 2026 | | | | | | | | | | | |
| Electric revenues | $ | 989 | | | $ | 506 | | | $ | 421 | | | $ | — | | | $ | (5) | | | $ | 1,911 | |
| Natural gas revenues | — | | | 116 | | | — | | | — | | | — | | | 116 | |
| Shared service and other revenues | — | | | — | | | — | | | 110 | | | (107) | | | 3 | |
Combined Notes to Consolidated Financial Statements — (Continued)
(Dollars in millions, except per share data, unless otherwise noted)
Note 4 — Segment Information
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total operating revenues | $ | 989 | | | $ | 622 | | | $ | 421 | | | $ | 110 | | | $ | (112) | | | $ | 2,030 | |
| 2025 | | | | | | | | | | | |
| Electric revenues | $ | 859 | | | $ | 460 | | | $ | 373 | | | $ | — | | | $ | (5) | | | $ | 1,687 | |
| Natural gas revenues | — | | | 88 | | | — | | | — | | | — | | | 88 | |
| Shared service and other revenues | — | | | — | | | — | | | 106 | | | (103) | | | 3 | |
| Total operating revenues | $ | 859 | | | $ | 548 | | | $ | 373 | | | $ | 106 | | | $ | (108) | | | $ | 1,778 | |
| Less: | | | | | | | | | | | |
| Purchased power | | | | | | | | | | | |
| 2026 | $ | 411 | | | $ | 234 | | | $ | 205 | | | $ | — | | | $ | — | | | $ | 850 | |
| 2025 | 318 | | | 209 | | | 157 | | | — | | | — | | | 684 | |
| Purchased fuel | | | | | | | | | | | |
| 2026 | $ | — | | | $ | 55 | | | $ | — | | | $ | — | | | $ | — | | | $ | 55 | |
| 2025 | — | | | 38 | | | — | | | — | | | — | | | 38 | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| Operating and maintenance | | | | | | | | | | | |
| 2026 | $ | 151 | | | $ | 71 | | | $ | 50 | | | $ | 93 | | | $ | — | | | $ | 365 | |
| 2025 | 96 | | | 60 | | | 51 | | | 89 | | | — | | | 296 | |
| Operating and maintenance from affiliates | | | | | | | | | | | |
| 2026 | $ | 67 | | | $ | 47 | | | $ | 43 | | | $ | 14 | | | $ | (112) | | | $ | 59 | |
| 2025 | 63 | | | 46 | | | 39 | | | 13 | | | (108) | | | 53 | |
| Depreciation and amortization | | | | | | | | | | | |
| 2026 | $ | 114 | | | $ | 66 | | | $ | 65 | | | $ | 1 | | | $ | — | | | $ | 246 | |
| 2025 | 105 | | | 63 | | | 64 | | | 2 | | | — | | | 234 | |
| Taxes other than income taxes | | | | | | | | | | | |
| 2026 | $ | 118 | | | $ | 26 | | | $ | 2 | | | $ | 5 | | | $ | — | | | $ | 151 | |
| 2025 | 113 | | | 21 | | | 2 | | | 4 | | | — | | | 140 | |
| Loss on sale of assets | | | | | | | | | | | |
| 2026 | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | |
| 2025 | 1 | | | — | | | — | | | — | | | — | | | 1 | |
Interest expense, net(c) | | | | | | | | | | | |
| 2026 | $ | 55 | | | $ | 27 | | | $ | 22 | | | $ | 1 | | | $ | — | | | $ | 105 | |
| 2025 | 52 | | | 25 | | | 21 | | | 1 | | | — | | | 99 | |
Interest expense to affiliates, net(c) | | | | | | | | | | | |
| 2026 | $ | — | | | $ | — | | | $ | — | | | $ | 1 | | | $ | — | | | $ | 1 | |
| 2025 | — | | | — | | | — | | | 1 | | | — | | | 1 | |
| Other, net | | | | | | | | | | | |
| 2026 | $ | (11) | | | $ | (4) | | | $ | (2) | | | $ | (1) | | | $ | — | | | $ | (18) | |
| 2025 | (11) | | | (4) | | | (3) | | | (1) | | | — | | | (19) | |
| Income taxes | | | | | | | | | | | |
| 2026 | $ | 16 | | | $ | 23 | | | $ | 9 | | | $ | (1) | | | $ | — | | | $ | 47 | |
| 2025 | 25 | | | 21 | | | 11 | | | — | | | — | | | 57 | |
| Net income (loss) attributable to common shareholders | | | | | | | | | | | |
| 2026 | $ | 68 | | | $ | 77 | | | $ | 27 | | | $ | (3) | | | $ | — | | | $ | 169 | |
| 2025 | 97 | | | 69 | | | 31 | | | (3) | | | — | | | 194 | |
| Supplemental segment information | | | | | | | | | | | |
Intersegment revenues(d) | | | | | | | | | | | |
| 2026 | $ | 2 | | | $ | 2 | | | $ | 1 | | | $ | 110 | | | $ | (112) | | | $ | 3 | |
| 2025 | 2 | | | 2 | | | 1 | | | 106 | | | (109) | | | 2 | |
| Capital expenditures | | | | | | | | | | | |
Combined Notes to Consolidated Financial Statements — (Continued)
(Dollars in millions, except per share data, unless otherwise noted)
Note 4 — Segment Information
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 2026 | $ | 285 | | | $ | 147 | | | $ | 122 | | | $ | 4 | | | $ | — | | | $ | 558 | |
| 2025 | 240 | | | 156 | | | 105 | | | 12 | | | — | | | 513 | |
| Total assets | | | | | | | | | | | |
| March 31, 2026 | $ | 12,632 | | | $ | 6,798 | | | $ | 5,685 | | | $ | 4,618 | | | $ | (76) | | | $ | 29,657 | |
| December 31, 2025 | 12,728 | | | 6,789 | | | 5,632 | | | 4,602 | | | (36) | | | 29,715 | |
__________
(a)Other primarily includes PHI’s corporate operations, shared service entities, and other financing and investment activities.
(b)Includes gross utility tax receipts from customers. The offsetting remittance of utility taxes to the governing bodies is recorded in Taxes other than income taxes in the Registrants’ Consolidated Statements of Operations and Comprehensive Income. See Note 14 — Supplemental Financial Information for additional information on total utility taxes.
(c)Interest expense, net and Interest expense to affiliates, net are primarily inclusive of Interest expense, which is partially offset by an immaterial amount of Interest income.
(d)Includes intersegment revenues with ComEd, PECO, and BGE, which are eliminated at Exelon.
Electric and Gas Revenue by Customer Class (Utility Registrants):
The following tables disaggregate the Registrants' revenues recognized from contracts with customers into categories that depict how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors. For the Utility Registrants, the disaggregation of revenues reflects the two primary utility services of electric sales and natural gas sales (where applicable), with further disaggregation of these tariff sales provided by major customer groups. Exelon’s disaggregated revenues are consistent with the Utility Registrants, but exclude any intercompany revenues.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| Three Months Ended March 31, 2026 |
| Revenues from contracts with customers | ComEd | | PECO | | BGE | | PHI | | Pepco | | DPL | | ACE |
| Electric revenues | | | | | | | | | | | | | |
| Residential | $ | 1,024 | | | $ | 725 | | | $ | 818 | | | $ | 1,096 | | | $ | 507 | | | $ | 331 | | | $ | 258 | |
| Small commercial & industrial | 484 | | | 172 | | | 130 | | | 191 | | | 54 | | | 69 | | | 68 | |
| Large commercial & industrial | 120 | | | 87 | | | 180 | | | 395 | | | 321 | | | 30 | | | 44 | |
| Public authorities & electric railroads | 12 | | | 8 | | | 8 | | | 19 | | | 10 | | | 4 | | | 5 | |
Other(a) | 249 | | | 77 | | | 117 | | | 232 | | | 93 | | | 77 | | | 64 | |
Total electric revenues(b) | $ | 1,889 | | | $ | 1,069 | | | $ | 1,253 | | | $ | 1,933 | | | $ | 985 | | | $ | 511 | | | $ | 439 | |
| Natural gas revenues | | | | | | | | | | | | | |
| Residential | $ | — | | | $ | 286 | | | $ | 401 | | | $ | 74 | | | $ | — | | | $ | 74 | | | $ | — | |
| Small commercial & industrial | — | | | 96 | | | 63 | | | 29 | | | — | | | 29 | | | — | |
| Large commercial & industrial | — | | | — | | | 93 | | | 4 | | | — | | | 4 | | | — | |
| Transportation | — | | | 20 | | | — | | | 5 | | | — | | | 5 | | | — | |
Other(c) | — | | | 7 | | | 31 | | | 4 | | | — | | | 4 | | | — | |
Total natural gas revenues(d) | $ | — | | | $ | 409 | | | $ | 588 | | | $ | 116 | | | $ | — | | | $ | 116 | | | $ | — | |
| Total revenues from contracts with customers | $ | 1,889 | | | $ | 1,478 | | | $ | 1,841 | | | $ | 2,049 | | | $ | 985 | | | $ | 627 | | | $ | 439 | |
| Other revenues | | | | | | | | | | | | | |
| Revenues from alternative revenue programs | $ | 8 | | | $ | 5 | | | $ | (22) | | | $ | (23) | | | $ | 1 | | | $ | (6) | | | $ | (18) | |
Other electric revenues(e) | 16 | | | 8 | | | 6 | | | 4 | | | 3 | | | 1 | | | — | |
Other natural gas revenues(e) | — | | | 1 | | | 3 | | | — | | | — | | | — | | | — | |
| | | | | | | | | | | | | |
| Total other revenues | $ | 24 | | | $ | 14 | | | $ | (13) | | | $ | (19) | | | $ | 4 | | | $ | (5) | | | $ | (18) | |
| Total revenues for reportable segments | $ | 1,913 | | | $ | 1,492 | | | $ | 1,828 | | | $ | 2,030 | | | $ | 989 | | | $ | 622 | | | $ | 421 | |
Combined Notes to Consolidated Financial Statements — (Continued)
(Dollars in millions, except per share data, unless otherwise noted)
Note 4 — Segment Information
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| Three Months Ended March 31, 2025 |
| Revenues from contracts with customers | ComEd | | PECO | | BGE | | PHI | | Pepco | | DPL | | ACE |
| Electric revenues | | | | | | | | | | | | | |
| Residential | $ | 993 | | | $ | 631 | | | $ | 648 | | | $ | 918 | | | $ | 424 | | | $ | 298 | | | $ | 196 | |
| Small commercial & industrial | 600 | | | 162 | | | 109 | | | 169 | | | 51 | | | 64 | | | 54 | |
| Large commercial & industrial | 296 | | | 84 | | | 144 | | | 367 | | | 289 | | | 28 | | | 50 | |
| Public authorities & electric railroads | 17 | | | 8 | | | 8 | | | 17 | | | 8 | | | 4 | | | 5 | |
Other(a) | 236 | | | 76 | | | 113 | | | 223 | | | 86 | | | 71 | | | 68 | |
Total electric revenues(b) | $ | 2,142 | | | $ | 961 | | | $ | 1,022 | | | $ | 1,694 | | | $ | 858 | | | $ | 465 | | | $ | 373 | |
| Natural gas revenues | | | | | | | | | | | | | |
| Residential | $ | — | | | $ | 267 | | | $ | 378 | | | $ | 56 | | | $ | — | | | $ | 56 | | | $ | — | |
| Small commercial & industrial | — | | | 86 | | | 63 | | | 21 | | | — | | | 21 | | | — | |
| Large commercial & industrial | — | | | — | | | 96 | | | 3 | | | — | | | 3 | | | — | |
| Transportation | — | | | 13 | | | — | | | 5 | | | — | | | 5 | | | — | |
Other(c) | — | | | 10 | | | 24 | | | 3 | | | — | | | 3 | | | — | |
Total natural gas revenues(d) | $ | — | | | $ | 376 | | | $ | 561 | | | $ | 88 | | | $ | — | | | $ | 88 | | | $ | — | |
| Total revenues from contracts with customers | $ | 2,142 | | | $ | 1,337 | | | $ | 1,583 | | | $ | 1,782 | | | $ | 858 | | | $ | 553 | | | $ | 373 | |
| Other revenues | | | | | | | | | | | | | |
| Revenues from alternative revenue programs | $ | (85) | | | $ | (9) | | | $ | (29) | | | $ | (3) | | | $ | 2 | | | $ | (5) | | | $ | — | |
Other electric revenues(e) | 8 | | | 4 | | | — | | | (1) | | | (1) | | | — | | | — | |
Other natural gas revenues(e) | — | | | 1 | | | — | | | — | | | — | | | — | | | — | |
| | | | | | | | | | | | | |
| Total other revenues | $ | (77) | | | $ | (4) | | | $ | (29) | | | $ | (4) | | | $ | 1 | | | $ | (5) | | | $ | — | |
| Total revenues for reportable segments | $ | 2,065 | | | $ | 1,333 | | | $ | 1,554 | | | $ | 1,778 | | | $ | 859 | | | $ | 548 | | | $ | 373 | |
__________
(a)Includes transmission revenue from PJM, wholesale electric revenue, and mutual assistance revenue.
(b)Includes operating revenues from affiliates in 2026 and 2025 respectively of:
•$11 million, $8 million at ComEd
•$4 million, $2 million at PECO
•$2 million, $1 million at BGE
•$3 million, $2 million at PHI
•$2 million, $2 million at Pepco
•$2 million, $2 million at DPL
•$1 million, $1 million at ACE
(c)Includes revenues from off-system natural gas sales.
(d)Includes operating revenues from affiliates in 2026 and 2025 respectively of:
•less than $1 million, $1 million at PECO
•$1 million, $1 million at BGE
(e)Includes late payment charge revenues.
Combined Notes to Consolidated Financial Statements — (Continued)
(Dollars in millions, except per share data, unless otherwise noted)
Note 5 — Accounts Receivable
5. Accounts Receivable (All Registrants)
Allowance for Credit Losses on Accounts Receivable
The following tables present the rollforward of Allowance for Credit Losses on Customer Accounts Receivable.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended March 31, 2026 |
| Exelon | | ComEd | | PECO | | BGE(b) | | PHI | | Pepco | | DPL(c) | | ACE |
| Balance at December 31, 2025 | $ | 435 | | | $ | 115 | | | $ | 137 | | | $ | 68 | | | $ | 115 | | | $ | 69 | | | $ | 19 | | | $ | 27 | |
Plus: Current period provision for expected credit losses | 148 | | | 32 | | | 39 | | | 43 | | | 34 | | | 17 | | | 8 | | | 9 | |
Less: Write-offs, net of recoveries(a) | 61 | | | 17 | | | 16 | | | 10 | | | 18 | | | 10 | | | 3 | | | 5 | |
| Balance at March 31, 2026 | $ | 522 | | | $ | 130 | | | $ | 160 | | | $ | 101 | | | $ | 131 | | | $ | 76 | | | $ | 24 | | | $ | 31 | |
| | | | | | | | | | | | | | | |
| Three Months Ended March 31, 2025 |
| Exelon | | ComEd | | PECO | | BGE | | PHI | | Pepco | | DPL | | ACE |
| Balance at December 31, 2024 | $ | 406 | | | $ | 109 | | | $ | 133 | | | $ | 56 | | | $ | 108 | | | $ | 59 | | | $ | 17 | | | $ | 32 | |
Plus: Current period provision for expected credit losses | 133 | | | 33 | | | 41 | | | 23 | | | 36 | | | 17 | | | 10 | | | 9 | |
Less: Write-offs, net of recoveries | 53 | | | 17 | | | 14 | | | 7 | | | 15 | | | 7 | | | 4 | | | 4 | |
| Balance at March 31, 2025 | $ | 486 | | | $ | 125 | | | $ | 160 | | | $ | 72 | | | $ | 129 | | | $ | 69 | | | $ | 23 | | | $ | 37 | |
_________
(a)Recoveries were not material to the Registrants.
(b)For BGE, the increase in current period provision for expected credit losses when comparing to the three months ended March 31, 2025, is primarily a result of increased receivable balances.
(c)For DPL, the decrease in current period provision for expected credit losses when comparing to the three months ended March 31, 2025, is primarily a result of favorable customer payment behavior.
The following tables present the rollforward of Allowance for Credit Losses on Other Accounts Receivable.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended March 31, 2026 |
| Exelon | | ComEd | | PECO | | BGE | | PHI | | Pepco | | DPL | | ACE(b) |
| Balance at December 31, 2025 | $ | 94 | | | $ | 23 | | | $ | 18 | | | $ | 4 | | | $ | 49 | | | $ | 26 | | | $ | 10 | | | $ | 13 | |
Plus: Current period provision for expected credit losses | 17 | | | 8 | | | 6 | | | 1 | | | 2 | | | 1 | | | 1 | | | — | |
Less: Write-offs, net of recoveries(a) | 9 | | | 4 | | | 2 | | | 1 | | | 2 | | | 1 | | | — | | | 1 | |
| Balance at March 31, 2026 | $ | 102 | | | $ | 27 | | | $ | 22 | | | $ | 4 | | | $ | 49 | | | $ | 26 | | | $ | 11 | | | $ | 12 | |
| | | | | | | | | | | | | | | |
| Three Months Ended March 31, 2025 |
| Exelon | | ComEd | | PECO | | BGE | | PHI | | Pepco | | DPL | | ACE |
| Balance at December 31, 2024 | $ | 107 | | | $ | 34 | | | $ | 18 | | | $ | 6 | | | $ | 49 | | | $ | 27 | | | $ | 9 | | | $ | 13 | |
Plus: Current period provision for expected credit losses | 15 | | | 2 | | | 9 | | | 1 | | | 3 | | | — | | | — | | | 3 | |
Less: Write-offs, net of recoveries | 9 | | | 2 | | | 5 | | | 1 | | | 1 | | | — | | | — | | | 1 | |
| Balance at March 31, 2025 | $ | 113 | | | $ | 34 | | | $ | 22 | | | $ | 6 | | | $ | 51 | | | $ | 27 | | | $ | 9 | | | $ | 15 | |
_________
(a)Recoveries were not material to the Registrants.
(b)For ACE, the decrease in current period provision for expected credit losses when comparing to the three months ended March 31, 2025, is primarily a result of decreased aged receivables.
Combined Notes to Consolidated Financial Statements — (Continued)
(Dollars in millions, except per share data, unless otherwise noted)
Note 5 — Accounts Receivable
Unbilled Customer Revenue
The following table provides additional information about unbilled customer revenues recorded in the Registrants' Consolidated Balance Sheets as of March 31, 2026 and December 31, 2025.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Unbilled customer revenues(a) |
| Exelon | | ComEd | | PECO | | BGE | | PHI | | Pepco | | DPL | | ACE |
| March 31, 2026 | $ | 873 | | | $ | 246 | | | $ | 206 | | | $ | 211 | | | $ | 210 | | | $ | 107 | | | $ | 59 | | | $ | 44 | |
| December 31, 2025 | 1,231 | | | 301 | | | 278 | | | 325 | | | 327 | | | 155 | | | 100 | | | 72 | |
__________
(a)Unbilled customer revenues are classified in Customer accounts receivable, net in the Registrants' Consolidated Balance Sheets.
Other Purchases of Customer and Other Accounts Receivables
For the three months ended March 31, 2026 and 2025, the Utility Registrants were required, under separate legislation and regulations in Illinois, Pennsylvania, Maryland, District of Columbia, Delaware, and New Jersey, to purchase certain receivables from alternative retail electric and, as applicable, natural gas suppliers that participated in the utilities' consolidated billing. The following table presents the total receivables purchased.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total receivables purchased |
| Exelon | | ComEd | | PECO | | BGE | | PHI | | Pepco | | DPL | | ACE |
| Three months ended March 31, 2026 | $ | 1,310 | | | $ | 304 | | | $ | 411 | | | $ | 188 | | | $ | 407 | | | $ | 262 | | | $ | 76 | | | $ | 69 | |
| Three months ended March 31, 2025 | 1,138 | | | 253 | | | 334 | | | 225 | | | 326 | | | 201 | | | 68 | | | 57 | |
6. Income Taxes (All Registrants)
Rate Reconciliation
The effective income tax rate from continuing operations varies from the U.S. federal statutory rate principally due to the following:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended March 31, 2026(a)(b) | |
| Exelon | | ComEd | | PECO(c) | | BGE | |
| U.S. Federal statutory rate | $ | 235 | | | 21.0 | % | | $ | 86 | | | 21.0 | % | | $ | 62 | | | 21.0 | % | | $ | 79 | | | 21.0 | % | |
| Increase (decrease) due to: | | | | | | | | | | | | | | | | |
State income taxes, net of Federal income tax benefit | 64 | | | 5.7 | | | 30 | | | 7.3 | | | (3) | | | (1.0) | | | 23 | | | 6.1 | | |
| Tax credits | (3) | | | (0.3) | | | (1) | | | (0.2) | | | — | | | — | | | (1) | | | (0.3) | | |
Change in Unrecognized Tax Benefits | (17) | | | (1.5) | | | (2) | | | (0.5) | | | — | | | — | | | (1) | | | (0.3) | | |
Nontaxable or nondeductible items | 10 | | | 0.9 | | | 1 | | | 0.1 | | | — | | | — | | | — | | | — | | |
| Other Adjustments | | | | | | | | | | | | | | | | |
| Plant Basis differences | (53) | | | (4.7) | | | (5) | | | (1.2) | | | (39) | | | (13.2) | | | (8) | | | (2.1) | | |
Excess deferred tax | (35) | | | (3.1) | | | (8) | | | (1.9) | | | (5) | | | (1.7) | | | (13) | | | (3.4) | | |
Amortization of ITC, net deferred taxes | (1) | | | (0.1) | | | — | | | — | | | — | | | — | | | — | | | — | | |
Effective Tax Rate | $ | 200 | | | 17.9 | % | | $ | 101 | | | 24.6 | % | | $ | 15 | | | 5.1 | % | | $ | 79 | | | 21.0 | % | |
Combined Notes to Consolidated Financial Statements — (Continued)
(Dollars in millions, except per share data, unless otherwise noted)
Note 6 — Income Taxes
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended March 31, 2026(a)(b) |
| PHI | | PEPCO | | DPL | | ACE |
| U.S. Federal statutory rate | $ | 45 | | | 21.0 | % | | $ | 18 | | | 21.0 | % | | $ | 21 | | | 21.0 | % | | $ | 8 | | | 21.0 | % |
| Increase (decrease) due to: | | | | | | | | | | | | | | | |
State income taxes, net of Federal income tax benefit | 14 | | | 6.5 | | | 5 | | | 6.0 | | | 6 | | | 6.0 | | | 3 | | | 8.3 | |
| Tax credits | (1) | | | (0.5) | | | — | | | — | | | — | | | — | | | — | | | — | |
Change in Unrecognized Tax Benefits | — | | | — | | | — | | | — | | | — | | | — | | | — | | | |
Nontaxable or nondeductible items | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | |
| Other Adjustments | | | | | | | | | | | | | | | |
| Plant Basis differences | (2) | | | (0.9) | | | (1) | | | (1.2) | | | (1) | | | (1.0) | | | — | | | — | |
Excess deferred tax | (9) | | | (4.3) | | | (6) | | | (6.8) | | | (3) | | | (3.0) | | | (2) | | | (4.3) | |
Amortization of ITC, net deferred taxes | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | |
Effective Tax Rate | $ | 47 | | | 21.8 | % | | $ | 16 | | | 19.0 | % | | $ | 23 | | | 23.0 | % | | $ | 9 | | | 25.0 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended March 31, 2025(a)(b) |
| Exelon | | ComEd(d) | | PECO(c) | | BGE |
| U.S. Federal statutory rate | $ | 227 | | | 21.0 | % | | $ | 77 | | | 21.0 | % | | $ | 59 | | | 21.0 | % | | $ | 70 | | | 21.0 | % |
| Increase (decrease) due to: | | | | | | | | | | | | | | | |
State income taxes, net of Federal income tax benefit | 57 | | | 5.3 | | | 28 | | | 7.6 | | | (10) | | | (3.6) | | | 21 | | | 6.3 | |
| Tax credits | (5) | | | (0.5) | | | (2) | | | (0.5) | | | — | | | — | | | (1) | | | (0.3) | |
Nontaxable or nondeductible items | 4 | | | 0.5 | | | 1 | | | 0.2 | | | — | | | — | | | — | | | — | |
| Other Adjustments | | | | | | | | | | | | | | | |
| Plant Basis differences | (42) | | | (3.9) | | | (4) | | | (1.1) | | | (31) | | | (11.0) | | | (5) | | | (1.5) | |
Excess deferred tax | (70) | | | (6.5) | | | (35) | | | (9.5) | | | (4) | | | (1.4) | | | (14) | | | (4.0) | |
Amortization of ITC, net deferred taxes | (1) | | | (0.1) | | | — | | | — | | | — | | | — | | | — | | | — | |
Effective Tax Rate | $ | 170 | | | 15.8 | % | | $ | 65 | | | 17.7 | % | | $ | 14 | | | 5.0 | % | | $ | 71 | | | 21.5 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended March 31, 2025(a)(b) |
| PHI | | PEPCO | | DPL | | ACE |
| U.S. Federal statutory rate | $ | 53 | | | 21.0 | % | | $ | 26 | | | 21.0 | % | | $ | 19 | | | 21.0 | % | | $ | 9 | | | 21.0 | % |
| Increase (decrease) due to: | | | | | | | | | | | | | | | |
State income taxes, net of Federal income tax benefit | 16 | | | 6.4 | | | 8 | | | 6.6 | | | 6 | | | 6.7 | | | 3 | | | 7.1 | |
| Tax credits | (1) | | | (0.4) | | | (1) | | | (0.8) | | | — | | | — | | | — | | | — | |
Nontaxable or nondeductible items | 1 | | | 0.5 | | | — | | | — | | | — | | | — | | | — | | | — | |
| Other Adjustments | | | | | | | | | | | | | | | |
| Plant Basis differences | (2) | | | (0.8) | | | (1) | | | (0.8) | | | (1) | | | (1.1) | | | — | | | 0.5 | |
Excess deferred tax | (10) | | | (4.0) | | | (7) | | | (5.5) | | | (3) | | | (3.3) | | | (1) | | | (2.4) | |
Amortization of ITC, net deferred taxes | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | |
Effective Tax Rate | $ | 57 | | | 22.7 | % | | $ | 25 | | | 20.5 | % | | $ | 21 | | | 23.3 | % | | $ | 11 | | | 26.2 | % |
__________
(a)Positive percentages represent income tax expense. Negative percentages represent income tax benefit.
(b)Exelon and Registrants had no adjustments to the following disclosure categories: Foreign Tax Effects, Effects of Changes in Tax Law or Rates Enacted in the Current Period, Effects of Cross-Border Tax Laws, and Changes in Valuation Allowances.
(c)For PECO, the lower effective tax rate is primarily related to state income taxes, net of federal income tax benefit and plant basis differences attributable to tax repair deductions.
(d)For ComEd, the lower effective tax rate is primarily due to CEJA which resulted in the acceleration of certain income tax benefits being provided to customers.
Combined Notes to Consolidated Financial Statements — (Continued)
(Dollars in millions, except per share data, unless otherwise noted)
Note 6 — Income Taxes
State and local Income Tax (Major Jurisdictions)
The state and local jurisdictions that comprise the majority of the effect of the state and local income tax, net of federal income taxes category by Registrant are presented below:
| | | | | | | | | | | |
| 2026 | | 2025 |
| Exelon | IL, MD | | IL, MD |
| ComEd | IL | | IL |
| PECO | PA | | PA |
| BGE | MD | | MD |
| PHI | MD, NJ | | MD, NJ |
| Pepco | MD | | MD |
| DPL | DE | | DE |
| ACE | NJ | | NJ |
Unrecognized Tax Benefits
Exelon, PHI and DPL have the following unrecognized tax benefits at March 31, 2026 and December 31, 2025. ComEd's, PECO's, BGE's, Pepco's, and ACE's amounts are not material.
| | | | | | | | | | | | | | | | | |
| Exelon(a) | | PHI | | DPL |
| March 31, 2026 | $ | 85 | | | $ | 50 | | | $ | 14 | |
| December 31, 2025 | 100 | | | 48 | | | 12 | |
__________(a)At March 31, 2026 and December 31, 2025, Exelon's unrecognized tax benefits is inclusive of $20 million related to Constellation's share of unrecognized tax benefits for periods prior to the separation. Exelon reflected an offsetting receivable of $20 million in Other deferred debits and other assets in the Consolidated Balance Sheet for these amounts.
Other Tax Matters
Tax Matters Agreement (Exelon)
In February 2022, in connection with the separation between Exelon and Constellation, the parties entered into a TMA. The TMA governs the respective rights, responsibilities, and obligations between Exelon and Constellation after the separation with respect to tax liabilities, refunds and attributes for open tax years that Constellation was part of Exelon’s consolidated group for U.S. federal, state, and local tax purposes.
Indemnification for Taxes. As a former subsidiary of Exelon, Constellation has joint and several liability with Exelon to the IRS and certain state jurisdictions relating to the taxable periods prior to the separation. The TMA specifies that Constellation is liable for their share of taxes required to be paid by Exelon with respect to taxable periods prior to the separation to the extent Constellation would have been responsible for such taxes under the Exelon tax sharing agreement when Constellation was included in Exelon's consolidated group. At March 31, 2026, there is no balance due to or from Constellation.
Tax Refunds. The TMA specifies that Constellation is entitled to their share of any future tax refunds claimed by Exelon with respect to taxable periods prior to the separation to the extent that Constellation would have received such tax refunds under the Exelon tax sharing agreement when Constellation was included in Exelon's consolidated group. At March 31, 2026, there is no balance due to or from Constellation.
Tax Attributes. At the date of separation certain tax attributes, primarily pre-separation tax credit carryforwards, that were generated by Constellation were required by law to be allocated to Exelon. The TMA provides that Exelon will reimburse Constellation when those allocated tax attribute carryforwards are utilized. In 2026, Exelon received $235 million of payments from Constellation as reimbursement for a reduction in previously utilized pre-separation tax credit carryforwards due to amended federal tax returns filed in Q1 2026. At March 31, 2026, Exelon recorded a payable of $58 million and $373 million in Other current liabilities and Other deferred credits
Combined Notes to Consolidated Financial Statements — (Continued)
(Dollars in millions, except per share data, unless otherwise noted)
Note 6 — Income Taxes
and other liabilities, respectively, in the Consolidated Balance Sheet for tax attribute carryforwards that are expected to be utilized and reimbursed to Constellation.
Corporate Alternative Minimum Tax (All Registrants)
On August 16, 2022, the IRA was signed into law and implements a new corporate alternative minimum tax (CAMT) that imposes a 15.0% tax on modified GAAP net income. Corporations will now pay the greater of 15.0% of financial statement pre-tax income (with certain adjustments) or their regular federal tax liability, which is federal taxable income multiplied by 21.0% federal corporate tax rate. Corporations are entitled to a tax credit (minimum tax credit) to the extent the CAMT liability exceeds the regular tax liability. This amount can be carried forward indefinitely and used in future years when regular tax exceeds the CAMT.
For the years ended December 31, 2025, December 31, 2024, and December 31, 2023, based on the existing guidance in effect at that time, Exelon and each of the Utility Registrants were subject to and reported the CAMT on a separate Registrant basis in the Consolidated Statements of Operations and Comprehensive Income and the Consolidated Balance Sheets.
On February 18, 2026, the U.S. Treasury issued guidance addressing the implementation of CAMT in the form of a notice. The new guidance permits corporate taxpayers to deduct repair and maintenance costs in the calculation of their CAMT liabilities. The notice applies retroactively, permitting Exelon to file amended returns for both 2024 and 2023 to reduce its CAMT liability by $80 million. Pursuant to the TMA, Exelon received reimbursement from Constellation for $235 million due to the reduction in the amount of Constellation's tax credits needed to offset Exelon's CAMT liability on its amended returns.
The impact of the notice was recorded as of March 31, 2026.
Allocation of Income Taxes to Regulated Utilities (All Registrants)
In Q2 2024, the IRS issued a series of PLRs, to another taxpayer, providing guidance with respect to the application of the tax normalization rules to the allocation of consolidated tax benefits among the members of a consolidated group associated with NOLC for ratemaking purposes. The rulings provide that for ratemaking purposes the tax benefit of NOLC should be reflected on a separate company basis not taking into consideration the utilization of losses by other affiliates. A PLR issued to another taxpayer may not be relied on as precedent.
For the Utility Registrants, except for PECO, the methodology prescribed by the IRS in these PLRs could result in a material reduction of the regulatory liability established for EDITs arising from the TCJA corporate tax rate change that are being amortized and flowed through to customers as well as a reduction in the accumulated deferred income taxes included in rate base for ratemaking purposes. The Utility Registrants, except for PECO, filed PLR requests with the IRS confirming the treatment of the NOLC for ratemaking purposes. The Utility Registrants will record the impact, if any, upon receiving the PLR from the IRS.
7. Retirement Benefits (All Registrants)
Defined Benefit Pension and OPEB
The majority of the 2026 pension benefit cost for the Exelon-sponsored plans is calculated using an expected long-term rate of return on plan assets of 7.00% and a discount rate of 5.42%. The majority of the 2026 OPEB cost is calculated using an expected long-term rate of return on plan assets of 6.50% for funded plans and a discount rate of 5.34%.
During the first quarter of 2026, Exelon received an updated valuation of its pension and OPEB to reflect actual census data as of January 1, 2026. This valuation resulted in an increase to the pension obligation of $6 million and an increase to the OPEB obligation of $10 million and a decrease to the asset of $2 million, respectively. Additionally, AOCI decreased by $4 million (after-tax) and regulatory assets increased by $23 million and liabilities increased by $1 million.
A portion of the net periodic benefit cost for all plans is capitalized within the Consolidated Balance Sheets. The following table presents the components of Exelon's net periodic benefit costs, prior to capitalization, for the three months ended March 31, 2026 and 2025.
Combined Notes to Consolidated Financial Statements — (Continued)
(Dollars in millions, except per share data, unless otherwise noted)
Note 7 — Retirement Benefits
| | | | | | | | | | | | | | | | | | | | | | | |
| Pension Benefits | | OPEB |
| Three Months Ended March 31, | | Three Months Ended March 31, |
| 2026 | | 2025 | | 2026 | | 2025 |
| Components of net periodic benefit cost | | | | | | | |
| Service cost | $ | 40 | | | $ | 38 | | | $ | 7 | | | $ | 6 | |
| Interest cost | 143 | | | 146 | | | 25 | | | 25 | |
| Expected return on assets | (176) | | | (178) | | | (22) | | | (21) | |
| Amortization of: | | | | | | | |
| Prior service cost (credit) | 1 | | | 1 | | | (2) | | | (2) | |
| Actuarial loss | 50 | | | 53 | | | — | | | — | |
| | | | | | | |
| | | | | | | |
| Net periodic benefit cost | $ | 58 | | | $ | 60 | | | $ | 8 | | | $ | 8 | |
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The amounts below represent the Registrants' allocated pension and OPEB costs. For Exelon, the service cost component is included in Operating and maintenance expense and Property, plant, and equipment, net while the non-service cost components are included in Other, net and Regulatory assets. For PHI and each of the Utility Registrants, which apply multi-employer accounting, the service cost and non-service cost components are included in Operating and maintenance expense and Property, plant, and equipment, net in their consolidated financial statements.
| | | | | | | | | | | | | | | | |
| | | | | Three Months Ended March 31, |
| Pension and OPEB Costs | | | | | | 2026 | | 2025 |
| Exelon | | | | | | $ | 65 | | | $ | 68 | |
| ComEd | | | | | | 27 | | | 21 | |
| PECO | | | | | | 4 | | | 2 | |
| BGE | | | | | | 7 | | | 16 | |
| PHI | | | | | | 20 | | | 25 | |
| Pepco | | | | | | 7 | | | 8 | |
| DPL | | | | | | 4 | | | 4 | |
| ACE | | | | | | 2 | | | 3 | |
Defined Contribution Savings Plan
The Registrants participate in a 401(k) defined contribution savings plan that is sponsored by Exelon. The plan is qualified under applicable sections of the IRC and allows employees to contribute a portion of their pre-tax and/or after-tax income in accordance with specified guidelines. All Registrants match a percentage of the employee contributions up to certain limits. The following table presents the employer contributions and employer matching contributions to the savings plan for the three months ended March 31, 2026 and 2025.
| | | | | | | | | | | | | | | | |
| | | | Three Months Ended March 31, |
| Savings Plan Employer Contributions | | | | | | 2026 | | 2025 |
| Exelon | | | | | | $ | 32 | | | $ | 26 | |
| ComEd | | | | | | 11 | | | 10 | |
| PECO | | | | | | 4 | | | 4 | |
| BGE | | | | | | 3 | | | 3 | |
| PHI | | | | | | 5 | | | 5 | |
| Pepco | | | | | | 1 | | | 1 | |
| DPL | | | | | | 1 | | | 1 | |
| ACE | | | | | | 1 | | | 1 | |
Combined Notes to Consolidated Financial Statements — (Continued)
(Dollars in millions, except per share data, unless otherwise noted)
Note 8 — Derivative Financial Instruments
8. Derivative Financial Instruments (All Registrants)
The Registrants use derivative instruments to manage commodity price risk and interest rate risk related to ongoing business operations. The Registrants do not execute derivatives for speculative or proprietary trading purposes.
Authoritative guidance requires that derivative instruments be recognized as either assets or liabilities at fair value, with changes in fair value of the derivative recognized in earnings immediately. Other accounting treatments are available through special election and designation, provided they meet specific, restrictive criteria both at the time of designation and on an ongoing basis. These alternative permissible accounting treatments include NPNS, cash flow hedges, and fair value hedges. At ComEd, derivative economic hedges related to commodities are recorded at fair value and offset by a corresponding regulatory asset or liability. For all NPNS derivative instruments, accounts receivable or accounts payable are recorded when derivatives settle and revenue or expense is recognized in earnings as the underlying physical commodity is sold or consumed. At Exelon, derivative hedges that qualify and are designated as cash flow hedges are recorded at fair value and offsets are recorded to AOCI.
Commodity Price Risk (All Registrants)
The Utility Registrants employ established policies and procedures to manage their risks associated with market fluctuations in commodity prices by entering into physical and financial derivative contracts, which are either determined to be non-derivative or classified as economic hedges. The Utility Registrants procure electric and natural gas supply through a competitive procurement process approved by each of the respective state utility commissions. The Utility Registrants’ hedging programs are intended to reduce exposure to energy and natural gas price volatility and have no direct earnings impact as the costs are fully recovered from customers through regulatory-approved recovery mechanisms. The following table provides a summary of the Utility Registrants’ primary derivative hedging instruments, listed by commodity and accounting treatment.
| | | | | | | | | | | |
| Registrant | Commodity | Accounting Treatment | Hedging Instrument |
| ComEd | Electricity | NPNS | Fixed price contracts based on all requirements in the IPA procurement plans. |
| Electricity | Changes in fair value of economic hedge recorded to an offsetting regulatory asset or liability(a) | 20-year floating-to-fixed energy swap contracts beginning June 2012 based on the renewable energy resource procurement requirements in the Illinois Settlement Legislation of approximately 1.3 million MWhs per year. |
| PECO | Electricity | NPNS | Fixed price contracts for default supply requirements through full requirements contracts. |
| Gas | NPNS | Fixed price contracts to cover about 10% of planned natural gas purchases in support of projected firm sales. |
| BGE | Electricity | NPNS | Fixed price contracts for all SOS requirements through full requirements contracts. |
| Gas | NPNS | Fixed price purchases associated with forecasted gas supply requirements. |
| Pepco | Electricity | NPNS | Fixed price contracts for all SOS requirements through full requirements contracts. |
| DPL | Electricity | NPNS | Fixed price contracts for all SOS requirements through full requirements contracts. |
| Gas | NPNS | Fixed and index priced contracts through full requirements contracts. |
| Gas | Changes in fair value of economic hedge recorded to an offsetting regulatory asset or liability(b) | Exchange traded future contracts for up to 50% of estimated monthly purchase requirements each month, including purchases for storage injections. |
| ACE | Electricity | NPNS | Fixed price contracts for all BGS requirements through full requirements contracts. |
__________
(a)See Note 2 — Regulatory Matters of the 2025 Form 10-K for additional information.
Combined Notes to Consolidated Financial Statements — (Continued)
(Dollars in millions, except per share data, unless otherwise noted)
Note 8 — Derivative Financial Instruments
(b)The fair value of the DPL economic hedge is not material at March 31, 2026 and December 31, 2025.
The fair value of derivative economic hedges is presented in Other current assets and current and noncurrent Mark-to-market derivative liabilities in Exelon's and ComEd's Consolidated Balance Sheets.
Interest Rate Risk (Exelon)
Exelon Corporate uses a combination of fixed-rate and variable-rate debt to manage interest rate exposure. Exelon Corporate may utilize interest rate derivatives to lock in rate levels in anticipation of future financings, which are typically designated as cash flow hedges. A hypothetical 50 basis point change in the interest rates associated with Exelon's interest rate swaps as of March 31, 2026 would result in an immaterial impact to Exelon's Consolidated Net income.
Below is a summary of the interest rate hedge balances at March 31, 2026 and December 31, 2025.
| | | | | | | | | | | |
| Derivatives Designated
as Hedging Instruments |
| March 31, 2026 | | December 31, 2025 |
| Other current assets | $ | — | | | $ | 3 | |
| Other deferred debits (noncurrent assets) | 2 | | | — | |
| Total derivative assets | 2 | | | 3 | |
| Mark-to-market derivative liabilities (current liabilities) | — | | | (4) | |
| Mark-to-market derivative liabilities (noncurrent liabilities) | (1) | | | — | |
| Total mark-to-market derivative liabilities | (1) | | | (4) | |
| Total mark-to-market derivative net assets (liabilities) | $ | 1 | | | $ | (1) | |
Cash Flow Hedges (Interest Rate Risk)
For derivative instruments that qualify and are designated as cash flow hedges, the changes in fair value each period are initially recorded in AOCI and reclassified into earnings when the underlying transaction affects earnings. The gains and losses reclassified out of AOCI for the three months ended March 31, 2026 and 2025 are immaterial.
In February 2026, Exelon terminated the previously issued floating-to-fixed swaps with a total notional of $550 million upon issuance of $775 million of debt. See Note 9 – Debt and Credit Agreements for additional information on the debt issuance. The settlements resulted in a net cash payment of $6 million. The accumulated AOCI loss of $4 million (net of tax) is being amortized into Interest expense in Exelon's Consolidated Statement of Operations and Comprehensive Income over the 5-year and 10-year terms of the swaps. During the first quarter of 2026, Exelon Corporate entered into $30 million notional of 10-year maturity floating-to-fixed swaps designated as cash flow hedges. The following table provides the notional amounts outstanding held by Exelon at March 31, 2026 and December 31, 2025.
| | | | | | | | | | | | | | | |
| March 31, 2026 | | December 31, 2025 | | | | |
| 5-year maturity floating-to-fixed swaps | $ | 60 | | | $ | 335 | | | | | |
| 10-year maturity floating-to-fixed swaps | 120 | | | 365 | | | | | |
| Total | $ | 180 | | | $ | 700 | | | | | |
The related AOCI derivative gain for the three months ended March 31, 2026 was $1 million (net of tax). The related AOCI derivative loss for the three months ended March 31, 2025 was $9 million (net of tax). See Note 13 – Changes in Accumulated Other Comprehensive Income (Loss) for additional information.
Credit Risk (All Registrants)
The Registrants would be exposed to credit-related losses in the event of non-performance by counterparties on executed derivative instruments. The credit exposure of derivative contracts, before collateral, is represented by the fair value of contracts at the reporting date. The Utility Registrants have contracts to procure electric and natural gas supply that provide suppliers with a certain amount of unsecured credit. If the exposure on the supply contract exceeds the amount of unsecured credit, the suppliers may be required to post collateral. The net credit
Combined Notes to Consolidated Financial Statements — (Continued)
(Dollars in millions, except per share data, unless otherwise noted)
Note 8 — Derivative Financial Instruments
exposure is mitigated primarily by the ability to recover procurement costs through customer rates. The amount of cash collateral received from external counterparties remained relatively consistent as of March 31, 2026. Cash collateral held by ComEd, PECO, BGE, Pepco, DPL, and ACE must be deposited in an unaffiliated major U.S. commercial bank or foreign bank with a U.S. branch office that meets certain qualifications. The following table reflects the Registrants' cash collateral held from external counterparties, which is recorded in Other current liabilities on their respective Consolidated Balance Sheets, at March 31, 2026 and December 31, 2025:
| | | | | | | | | | | | | | | |
| March 31, 2026 | | December 31, 2025 | | | | |
| Exelon | $ | 217 | | | $ | 223 | | | | | |
| ComEd | 192 | | | 192 | | | | | |
| PECO | 6 | | | 6 | | | | | |
| BGE | 8 | | | 4 | | | | | |
| PHI | 11 | | | 21 | | | | | |
| Pepco | 1 | | | 13 | | | | | |
| DPL | 10 | | | 3 | | | | | |
ACE(a) | — | | | 5 | | | | | |
__________(a)ACE had less than one million in cash collateral with external parties at March 31, 2026.
The Utility Registrants’ electric supply procurement contracts do not contain provisions that would require them to post collateral. PECO’s, BGE’s, and DPL’s natural gas procurement contracts contain provisions that could require PECO, BGE, and DPL to post collateral in the form of cash or credit support, which vary by contract and counterparty, with thresholds contingent upon PECO's, BGE's, and DPL's credit rating. As of March 31, 2026, PECO, BGE, and DPL were not required to post collateral for any of these agreements. If PECO, BGE, or DPL lost their investment grade credit rating as of March 31, 2026, they could have been required to post collateral to their counterparties of $38 million, $20 million, and $23 million, respectively.
9. Debt and Credit Agreements (All Registrants)
Short-Term Borrowings
Exelon Corporate, ComEd, and BGE meet their short-term liquidity requirements primarily through the issuance of commercial paper. PECO meets its short-term liquidity requirements primarily through the issuance of commercial paper and borrowings from the Exelon intercompany money pool. Pepco, DPL, and ACE meet their short-term liquidity requirements primarily through the issuance of commercial paper and borrowings from the PHI intercompany money pool. PHI Corporate meets its short-term liquidity requirements primarily through the issuance of short-term notes and borrowings from the Exelon intercompany money pool. The Registrants may use their respective credit facilities for general corporate purposes, including meeting short-term funding requirements and the issuance of letters of credit.
Commercial Paper
The following table reflects the Registrants' commercial paper programs supported by the revolving credit agreements at March 31, 2026 and December 31, 2025.
| | | | | | | | | | | | | | | | | | | | | | | |
| Outstanding Commercial
Paper at | | Average Interest Rate on
Commercial Paper Borrowings at |
| Commercial Paper Issuer | March 31, 2026 | | December 31, 2025 | | March 31, 2026 | | December 31, 2025 |
Exelon(a) | $ | 165 | | | $ | 612 | | | 3.94 | % | | 3.94 | % |
| ComEd | $ | 46 | | | $ | — | | | 3.93 | % | | — | % |
| PECO | $ | — | | | $ | — | | | — | % | | — | % |
| BGE | $ | — | | | $ | — | | | — | % | | — | % |
PHI(b) | $ | 119 | | | $ | 612 | | | 3.95 | % | | 3.94 | % |
| | | | | | | |
| Pepco | $ | 73 | | | $ | 303 | | | 3.94 | % | | 3.93 | % |
| DPL | $ | 46 | | | $ | 161 | | | 3.96 | % | | 3.94 | % |
| ACE | $ | — | | | $ | 148 | | | — | % | | 3.94 | % |
Combined Notes to Consolidated Financial Statements — (Continued)
(Dollars in millions, except per share data, unless otherwise noted)
Note 9 — Debt and Credit Agreements
__________
(a)Exelon Corporate had no outstanding commercial paper borrowings at March 31, 2026 and no outstanding commercial paper borrowings at December 31, 2025.
(b)Represents the consolidated amounts of Pepco, DPL, and ACE.
Revolving Credit Agreements
On August 29, 2024, Exelon Corporate and each of the Utility Registrants amended and restated their respective syndicated revolving credit facility, extending the maturity date to August 29, 2029. The following table reflects the credit agreements:
| | | | | | | | | | | |
| Borrower | Aggregate Bank Commitment | | Interest Rate |
| Exelon Corporate | $ | 900 | | | SOFR plus 1.075% |
| ComEd | $ | 1,000 | | | SOFR plus 1.000% |
| PECO | $ | 600 | | | SOFR plus 0.900% |
| BGE | $ | 600 | | | SOFR plus 0.900% |
| Pepco | $ | 300 | | | SOFR plus 1.000% |
| DPL | $ | 300 | | | SOFR plus 1.000% |
| ACE | $ | 300 | | | SOFR plus 1.000% |
Exelon Corporate and the Utility Registrants had no outstanding amounts on the revolving credit facilities as of March 31, 2026.
The Utility Registrants have credit facility agreements, arranged at community banks, which may be utilized to issue letters of credit. The facility agreements have aggregate commitments of $40 million, $40 million, $15 million, $15 million, $15 million, and $15 million, at ComEd, PECO, BGE, Pepco, DPL, and ACE, respectively. On October 3, 2025, the Utility Registrants amended and extended their credit facilities at community banks. Previously structured as one-year arrangements, the facilities are now two-year terms. These facilities expire on October 1, 2027.
See Note 14 — Debt and Credit Agreements of the 2025 Form 10-K for additional information on the Registrants' credit facilities.
Short-Term Loan Agreements
On March 14, 2024, Exelon Corporate amended and bifurcated the $500 million term loan agreement into two tranches of $350 million and $150 million. The loan agreements were renewed in the first quarter of 2025, extending the expiration date to March 13, 2026. Exelon Corporate repaid the term loans on December 5, 2025.
On March 25, 2026, Exelon Corporate entered into two term loan agreements for $350 million and $150 million. Both agreements mature on March 24, 2027. Pursuant to the loan agreements, loans made thereunder bear interest at a variable rate equal to SOFR plus 0.85% and all indebtedness thereunder is unsecured. The loans are reflected in Exelon's Consolidated Balance Sheet within Short-term borrowings.
Long-Term Debt
Issuance of Long-Term Debt
Combined Notes to Consolidated Financial Statements — (Continued)
(Dollars in millions, except per share data, unless otherwise noted)
Note 9 — Debt and Credit Agreements
During the three months ended March 31, 2026, the following long-term debt was issued:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Company | | Type | | Interest Rate | | Maturity | | Amount | | Use of Proceeds | |
| Exelon | | Senior Notes | | 4.95% | | March 15, 2036 | | $775 | | Repay existing indebtedness and for general corporate purposes. | |
| Pepco | | First Mortgage Bonds | | 5.00% | | March 19, 2036 | | 110 | | Repay existing indebtedness and for general corporate purposes. | |
| Pepco | | First Mortgage Bonds | | 5.30% | | March 19, 2041 | | 60 | | Repay existing indebtedness and for general corporate purposes. | |
| | | | | | | | | | | |
| DPL | | First Mortgage Bonds | | 5.74% | | March 19, 2056 | | 75 | | Repay existing indebtedness and for general corporate purposes. | |
| ACE | | First Mortgage Bonds | | 4.95% | | March 19, 2036 | | 100 | | Repay existing indebtedness and for general corporate purposes. | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Convertible Senior Notes
On December 4, 2025, Exelon Corporation issued $1 billion aggregate principal amount of 3.25% Convertible Senior Notes due 2029 (Convertible Senior Notes). The Convertible Senior Notes are reflected as Long-term debt on Exelon’s Consolidated Balance Sheet.
The Convertible Senior Notes are senior, unsecured notes that bear interest at a fixed rate of 3.25% per year, payable semiannually in arrears on March 15 and September 15 of each year, beginning on September 15, 2026. The Convertible Senior Notes will mature on March 15, 2029, unless earlier converted or repurchased in accordance with their terms.
Under the following circumstances, holders may convert the Convertible Senior Notes at their option prior to the close of business on the business day preceding December 15, 2028:
•during any calendar quarter beginning after the quarter ending on March 31, 2026, if the last reported sale price of Exelon’s common stock for at least 20 trading days (whether consecutive or not) during the period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter is greater than or equal the stock was trading at greater than or equal to 130% of the conversion price on each applicable trading day as determined by Exelon;
•during the five business day period after any ten consecutive trading day period (measurement period) in which the applicable trading price per $1,000 principal amount of notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of the common stock and the conversion rate on each such trading day;
•upon the occurrence of certain corporate events specified in the respective supplemental indentures governing the Convertible Senior Notes.
On or after December 15, 2028, a holder may convert for all, or any portion of its Convertible Senior Notes at any time prior to the close of business on the business day immediately preceding the applicable maturity date regardless of the foregoing conditions.
Exelon will settle conversions of the Convertible Senior Notes by paying cash up to the aggregate principal amount to be converted and paying or delivering, as the case may be, cash, shares of common stock, or a combination of cash and shares of common stock, at Exelon’s discretion, in respect of the remainder, if any, of Exelon's conversion obligation in excess of the aggregate principal amount of the Convertible Senior Notes being converted. The Convertible Senior Notes are initially convertible at 17.5093 shares per $1,000 principal amount, which is equivalent to an initial conversion price of approximately 57.11 per share of common stock. The initial conversion price of the Convertible Senior Notes represents a premium of approximately 25% over the last reported sale price of Exelon’s common stock on the Nasdaq Global Select Market on December 1, 2025. These conversions will be subject to adjustment upon the occurrence of certain specified events but will not be adjusted for accrued and unpaid interest. In addition, upon the occurrence of a make-whole fundamental change (as defined in the indenture) Exelon will, in certain circumstances, increase the applicable conversion rate by a number of additional shares of common stock for conversions in connection with the make-whole fundamental change.
As of March 31, 2026, no shares of the Convertible Senior Notes have been converted.
Combined Notes to Consolidated Financial Statements — (Continued)
(Dollars in millions, except per share data, unless otherwise noted)
Note 9 — Debt and Credit Agreements
EPS Impact
Diluted earnings per common shares will also reflect the dilutive effect of potential common shares from share-based awards and convertible notes. The dilutive effect of the Convertible Senior Notes is computed using the if-converted method. For the period ended March 31, 2026, no incremental shares were assumed converted or included in the diluted earnings per common share resulting from the Convertible Senior Notes.
Tax-Exempt Bonds
As of March 31, 2026, DPL had $78.4 million outstanding of its 3.60% Delaware Economic Development Authority's Gas Facilities Refunding Revenue Bonds, maturing on January 1, 2031. The bonds were previously reoffered in July 2025. There have been no material changes to the terms since December 31, 2025. See Note 14 — Debt and Credit Agreements of the 2025 Form 10-K for additional information on the DPL reoffering of tax-exempt bonds.
Debt Covenants
As of March 31, 2026, the Registrants are in compliance with debt covenants.
10. Fair Value of Financial Assets and Liabilities (All Registrants)
Exelon measures and classifies fair value measurements in accordance with the hierarchy as defined by GAAP. The hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three levels as follows:
•Level 1 — quoted prices (unadjusted) in active markets for identical assets or liabilities that the Registrants have the ability to liquidate as of the reporting date.
•Level 2 — inputs other than quoted prices included within Level 1 that are directly observable for the asset or liability or indirectly observable through corroboration with observable market data.
•Level 3 — unobservable inputs, such as internally developed pricing models or third-party valuations for the asset or liability due to little or no market activity for the asset or liability.
Exelon’s valuation techniques used to measure the fair value of the assets and liabilities shown in the tables below are in accordance with the policies discussed in Note 15 — Fair Value of Financial Assets and Liabilities of the 2025 Form 10-K.
Combined Notes to Consolidated Financial Statements — (Continued)
(Dollars in millions, except per share data, unless otherwise noted)
Note 10 — Fair Value of Financial Assets and Liabilities
Fair Value of Financial Liabilities Recorded at Amortized Cost
The following tables present the carrying amounts and fair values of the Registrants’ short-term liabilities, long-term debt, and trust preferred securities (long-term debt to financing trusts or junior subordinated debentures) as of March 31, 2026 and December 31, 2025. The Registrants have no financial liabilities measured using the NAV practical expedient.
The carrying amounts of the Registrants’ short-term liabilities as presented in their Consolidated Balance Sheets are representative of their fair value (Level 2) because of the short-term nature of these instruments.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | March 31, 2026 | | December 31, 2025 |
| | Carrying Amount | | Fair Value | | Carrying Amount | | Fair Value |
| | | Level 1 | | Level 2 | | Level 3 | | Total | | | Level 1 | | Level 2 | | Level 3 | | Total |
Long-Term Debt, including amounts due within one year(a) |
Exelon (b) | | $ | 50,185 | | | $ | — | | | $ | 40,580 | | | $ | 4,558 | | | $ | 45,138 | | | $ | 49,078 | | | $ | — | | | $ | 40,637 | | | $ | 4,318 | | | $ | 44,955 | |
| ComEd | | 12,755 | | | — | | | 11,019 | | | — | | | 11,019 | | | 12,753 | | | — | | | 11,291 | | | — | | | 11,291 | |
| PECO | | 6,397 | | | — | | | 5,471 | | | — | | | 5,471 | | | 6,396 | | | — | | | 5,593 | | | — | | | 5,593 | |
| BGE | | 6,042 | | | — | | | 5,390 | | | — | | | 5,390 | | | 6,041 | | | — | | | 5,510 | | | — | | | 5,510 | |
| PHI | | 9,928 | | | — | | | 4,151 | | | 4,558 | | | 8,709 | | | 9,590 | | | — | | | 4,236 | | | 4,318 | | | 8,554 | |
| Pepco | | 4,802 | | | — | | | 2,484 | | | 1,990 | | | 4,474 | | | 4,632 | | | — | | | 2,546 | | | 1,861 | | | 4,407 | |
| DPL | | 2,421 | | | — | | | 644 | | | 1,446 | | | 2,090 | | | 2,344 | | | — | | | 657 | | | 1,410 | | | 2,067 | |
| ACE | | 2,133 | | | — | | | 812 | | | 1,123 | | | 1,935 | | | 2,033 | | | — | | | 819 | | | 1,047 | | | 1,866 | |
| Long-Term Debt to Financing Trusts |
| Exelon | | $ | 390 | | | $ | — | | | $ | — | | | $ | 398 | | | $ | 398 | | | $ | 390 | | | $ | — | | | $ | — | | | $ | 403 | | | $ | 403 | |
| ComEd | | 206 | | | — | | | — | | | 212 | | | 212 | | | 206 | | | — | | | — | | | 216 | | | 216 | |
| PECO | | 184 | | | — | | | — | | | 186 | | | 186 | | | 184 | | | — | | | — | | | 187 | | | 187 | |
__________
(a)Includes unamortized debt issuance costs, unamortized debt discount and premium, net, purchase accounting fair value adjustments, and finance lease liabilities which are not fair valued. Refer to Note 14 — Debt and Credit Agreements of the 2025 Form 10-K for unamortized debt issuance costs, unamortized debt discount and premium, net, and purchase accounting fair value adjustments and Note 9 — Leases of the 2025 Form 10-K for finance lease liabilities.
(b)Includes the net carrying amount and the estimated fair value (Level 2) of the Convertible Senior Notes $1 billion and $1 billion for the year ended March 31, 2026, respectively.
Combined Notes to Consolidated Financial Statements — (Continued)
(Dollars in millions, except per share data, unless otherwise noted)
Note 10 — Fair Value of Financial Assets and Liabilities
Recurring Fair Value Measurements
The following tables present assets and liabilities measured and recorded at fair value in the Registrants' Consolidated Balance Sheets on a recurring basis and their level within the fair value hierarchy at March 31, 2026 and December 31, 2025. Exelon and the Utility Registrants have immaterial and no financial assets or liabilities measured using the NAV practical expedient, respectively:
Exelon
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| At March 31, 2026 | | At December 31, 2025 |
| Level 1 | | Level 2 | | Level 3 | | | | Total | | Level 1 | | Level 2 | | Level 3 | | | | Total |
| Assets | | | | | | | | | | | | | | | | | | | |
Cash equivalents(a) | $ | 945 | | | $ | — | | | $ | — | | | | | $ | 945 | | | $ | 825 | | | $ | — | | | $ | — | | | | | $ | 825 | |
| Rabbi trust investments | | | | | | | | | | | | | | | | | | | |
| Cash equivalents | 103 | | | — | | | — | | | | | 103 | | | 101 | | | — | | | — | | | | | 101 | |
| Mutual funds | 72 | | | — | | | — | | | | | 72 | | | 71 | | | — | | | — | | | | | 71 | |
| Fixed income | — | | | 6 | | | — | | | | | 6 | | | — | | | 6 | | | — | | | | | 6 | |
| Life insurance contracts | — | | | 80 | | | 21 | | | | | 101 | | | — | | | 79 | | | 21 | | | | | 100 | |
| Rabbi trust investments subtotal | 175 | | | 86 | | | 21 | | | | | 282 | | | 172 | | | 85 | | | 21 | | | | | 278 | |
| | | | | | | | | | | | | | | | | | | |
| Interest rate derivative assets | | | | | | | | | | | | | | | | | | | |
| Derivatives designated as hedging instruments | — | | | 2 | | | — | | | | | 2 | | | — | | | 3 | | | — | | | | | 3 | |
| | | | | | | | | | | | | | | | | | | |
| Interest rate derivative assets subtotal | — | | | 2 | | | — | | | | | 2 | | | — | | | 3 | | | — | | | | | 3 | |
| Total assets | 1,120 | | | 88 | | | 21 | | | | | 1,229 | | | 997 | | | 88 | | | 21 | | | | | 1,106 | |
| Liabilities | | | | | | | | | | | | | | | | | | | |
| Commodity derivative liabilities | — | | | — | | | (133) | | | | | (133) | | | — | | | — | | | (131) | | | | | (131) | |
| Interest rate derivative liabilities | | | | | | | | | | | | | | | | | | | |
| Derivatives designated as hedging instruments | — | | | (1) | | | — | | | | | (1) | | | — | | | (4) | | | — | | | | | (4) | |
| | | | | | | | | | | | | | | | | | | |
| Interest rate derivative liabilities subtotal | — | | | (1) | | | — | | | | | (1) | | | — | | | (4) | | | — | | | | | (4) | |
| Deferred compensation obligation | — | | | (68) | | | — | | | | | (68) | | | — | | | (71) | | | — | | | | | (71) | |
| Total liabilities | — | | | (69) | | | (133) | | | | | (202) | | | — | | | (75) | | | (131) | | | | | (206) | |
| Total net assets (liabilities) | $ | 1,120 | | | $ | 19 | | | $ | (112) | | | | | $ | 1,027 | | | $ | 997 | | | $ | 13 | | | $ | (110) | | | | | $ | 900 | |
__________
(a)Exelon excludes cash of $157 million and $180 million at March 31, 2026 and December 31, 2025, respectively, and restricted cash of $195 million and $196 million at March 31, 2026 and December 31, 2025, respectively, and includes long-term restricted cash of $24 million and $50 million at March 31, 2026 and December 31, 2025, respectively, which is reported in Other deferred debits and other assets in the Consolidated Balance Sheets.
Combined Notes to Consolidated Financial Statements — (Continued)
(Dollars in millions, except per share data, unless otherwise noted)
Note 10 — Fair Value of Financial Assets and Liabilities
ComEd, PECO, and BGE
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| ComEd | | PECO | | BGE |
| At March 31, 2026 | Level 1 | | Level 2 | | Level 3 | | Total | | Level 1 | | Level 2 | | Level 3 | | Total | | Level 1 | | Level 2 | | Level 3 | | Total |
| Assets | | | | | | | | | | | | | | | | | | | | | | | |
Cash equivalents(a) | $ | 343 | | | $ | — | | | $ | — | | | $ | 343 | | | $ | 125 | | | $ | — | | | $ | — | | | $ | 125 | | | $ | 172 | | | $ | — | | | $ | — | | | $ | 172 | |
| Rabbi trust investments | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Mutual funds | — | | | — | | | — | | | — | | | 13 | | | — | | | — | | | 13 | | | 11 | | | — | | | — | | | 11 | |
| Life insurance contracts | — | | | — | | | — | | | — | | | — | | | 25 | | | — | | | 25 | | | — | | | — | | | — | | | — | |
| Rabbi trust investments subtotal | — | | | — | | | — | | | — | | | 13 | | | 25 | | | — | | | 38 | | | 11 | | | — | | | — | | | 11 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Total assets | 343 | | | — | | | — | | | 343 | | | 138 | | | 25 | | | — | | | 163 | | | 183 | | | — | | | — | | | 183 | |
| Liabilities | | | | | | | | | | | | | | | | | | | | | | | |
Commodity derivative liabilities(b) | — | | | — | | | (133) | | | (133) | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | |
| Deferred compensation obligation | — | | | (9) | | | — | | | (9) | | | — | | | (8) | | | — | | | (8) | | | — | | | (4) | | | — | | | (4) | |
| Total liabilities | — | | | (9) | | | (133) | | | (142) | | | — | | | (8) | | | — | | | (8) | | | — | | | (4) | | | — | | | (4) | |
| Total net assets (liabilities) | $ | 343 | | | $ | (9) | | | $ | (133) | | | $ | 201 | | | $ | 138 | | | $ | 17 | | | $ | — | | | $ | 155 | | | $ | 183 | | | $ | (4) | | | $ | — | | | $ | 179 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| ComEd | | PECO | | BGE |
| At December 31, 2025 | Level 1 | | Level 2 | | Level 3 | | Total | | Level 1 | | Level 2 | | Level 3 | | Total | | Level 1 | | Level 2 | | Level 3 | | Total |
| Assets | | | | | | | | | | | | | | | | | | | | | | | |
Cash equivalents(a) | $ | 393 | | | $ | — | | | $ | — | | | $ | 393 | | | $ | 93 | | | $ | — | | | $ | — | | | $ | 93 | | | $ | 205 | | | $ | — | | | $ | — | | | $ | 205 | |
| Rabbi trust investments | | | | | | | | | | | | | | | | | | | | | | | |
| Mutual funds | — | | | — | | | — | | | — | | | 13 | | | — | | | — | | | 13 | | | 10 | | | — | | | — | | | 10 | |
| Life insurance contracts | — | | | — | | | — | | | — | | | — | | | 25 | | | — | | | 25 | | | — | | | — | | | — | | | — | |
| Rabbi trust investments subtotal | — | | | — | | | — | | | — | | | 13 | | | 25 | | | — | | | 38 | | | 10 | | | — | | | — | | | 10 | |
| Total assets | 393 | | | — | | | — | | | 393 | | | 106 | | | 25 | | | — | | | 131 | | | 215 | | | — | | | — | | | 215 | |
| Liabilities | | | | | | | | | | | | | | | | | | | | | | | |
Commodity derivative liabilities(b) | — | | | — | | | (131) | | | (131) | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | |
| Deferred compensation obligation | — | | | (9) | | | — | | | (9) | | | — | | | (8) | | | — | | | (8) | | | — | | | (4) | | | — | | | (4) | |
| Total liabilities | — | | | (9) | | | (131) | | | (140) | | | — | | | (8) | | | — | | | (8) | | | — | | | (4) | | | — | | | (4) | |
| Total net assets (liabilities) | $ | 393 | | | $ | (9) | | | $ | (131) | | | $ | 253 | | | $ | 106 | | | $ | 17 | | | $ | — | | | $ | 123 | | | $ | 215 | | | $ | (4) | | | $ | — | | | $ | 211 | |
__________
(a)ComEd excludes cash of $69 million and $77 million at March 31, 2026 and December 31, 2025, respectively, and restricted cash of $194 million and $193 million at March 31, 2026 and December 31, 2025, respectively. Additionally, ComEd includes long-term restricted cash of $24 million and $50 million at March 31, 2026 and December 31, 2025, respectively, which is reported in Other deferred debits and other assets in the Consolidated Balance Sheets. PECO
Combined Notes to Consolidated Financial Statements — (Continued)
(Dollars in millions, except per share data, unless otherwise noted)
Note 10 — Fair Value of Financial Assets and Liabilities
excludes cash of $26 million and $23 million at March 31, 2026 and December 31, 2025, respectively. BGE excludes cash of $8 million and $15 million at March 31, 2026 and December 31, 2025, respectively.
(b)The Level 3 balance consists of the current and noncurrent liability of $22 million and $111 million, respectively, at March 31, 2026 and $25 million and $106 million, respectively, at December 31, 2025 related to floating-to-fixed energy swap contracts with unaffiliated suppliers.
Combined Notes to Consolidated Financial Statements — (Continued)
(Dollars in millions, except per share data, unless otherwise noted)
Note 10 — Fair Value of Financial Assets and Liabilities
PHI, Pepco, DPL, and ACE
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| At March 31, 2026 | | At December 31, 2025 |
| PHI | Level 1 | | Level 2 | | Level 3 | | Total | | Level 1 | | Level 2 | | Level 3 | | Total |
| Assets | | | | | | | | | | | | | | | |
Cash equivalents(a) | $ | 35 | | | $ | — | | | $ | — | | | $ | 35 | | | $ | 83 | | | $ | — | | | $ | — | | | $ | 83 | |
| Rabbi trust investments | | | | | | | | | | | | | | | |
| Cash equivalents | 101 | | | — | | | — | | | 101 | | | 99 | | | — | | | — | | | 99 | |
| Mutual funds | 9 | | | — | | | — | | | 9 | | | 9 | | | — | | | — | | | 9 | |
| Fixed income | — | | | 6 | | | — | | | 6 | | | — | | | 6 | | | — | | | 6 | |
| Life insurance contracts | — | | | 23 | | | 20 | | | 43 | | | — | | | 23 | | | 20 | | | 43 | |
| Rabbi trust investments subtotal | 110 | | | 29 | | | 20 | | | 159 | | | 108 | | | 29 | | | 20 | | | 157 | |
| Total assets | 145 | | | 29 | | | 20 | | | 194 | | | 191 | | | 29 | | | 20 | | | 240 | |
| Liabilities | | | | | | | | | | | | | | | |
| Deferred compensation obligation | — | | | (9) | | | — | | | (9) | | | — | | | (9) | | | — | | | (9) | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| Total liabilities | — | | | (9) | | | — | | | (9) | | | — | | | (9) | | | — | | | (9) | |
| Total net assets | $ | 145 | | | $ | 20 | | | $ | 20 | | | $ | 185 | | | $ | 191 | | | $ | 20 | | | $ | 20 | | | $ | 231 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Pepco | | DPL | | ACE |
| At March 31, 2026 | Level 1 | | Level 2 | | Level 3 | | Total | | Level 1 | | Level 2 | | Level 3 | | Total | | Level 1 | | Level 2 | | Level 3 | | Total |
| Assets | | | | | | | | | | | | | | | | | | | | | | | |
Cash equivalents(a) | $ | 20 | | | $ | — | | | $ | — | | | $ | 20 | | | $ | 10 | | | $ | — | | | $ | — | | | $ | 10 | | | $ | 5 | | | $ | — | | | $ | — | | | $ | 5 | |
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| Rabbi trust investments | | | | | | | | | | | | | | | | | | | | | | | |
| Cash equivalents | 100 | | | — | | | — | | | 100 | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | |
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| Life insurance contracts | — | | | 23 | | | 20 | | | 43 | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | |
| Rabbi trust investments subtotal | 100 | | | 23 | | | 20 | | | 143 | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | |
| Total assets | 120 | | | 23 | | | 20 | | | 163 | | | 10 | | | — | | | — | | | 10 | | | 5 | | | — | | | — | | | 5 | |
| Liabilities | | | | | | | | | | | | | | | | | | | | | | | |
| Deferred compensation obligation | — | | | (1) | | | — | | | (1) | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | |
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| Total liabilities | — | | | (1) | | | — | | | (1) | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | |
| Total net assets | $ | 120 | | | $ | 22 | | | $ | 20 | | | $ | 162 | | | $ | 10 | | | $ | — | | | $ | — | | | $ | 10 | | | $ | 5 | | | $ | — | | | $ | — | | | $ | 5 | |
Combined Notes to Consolidated Financial Statements — (Continued)
(Dollars in millions, except per share data, unless otherwise noted)
Note 10 — Fair Value of Financial Assets and Liabilities
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| Pepco | | DPL | | ACE |
| At December 31, 2025 | Level 1 | | Level 2 | | Level 3 | | Total | | Level 1 | | Level 2 | | Level 3 | | Total | | Level 1 | | Level 2 | | Level 3 | | Total |
| Assets | | | | | | | | | | | | | | | | | | | | | | | |
Cash equivalents(a) | $ | 33 | | | $ | — | | | $ | — | | | $ | 33 | | | $ | 3 | | | $ | — | | | $ | — | | | $ | 3 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | |
| Rabbi trust investments | | | | | | | | | | | | | | | | | | | | | | | |
| Cash equivalents | 98 | | | — | | | — | | | 98 | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | |
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| Life insurance contracts | — | | | 23 | | | 20 | | | 43 | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | |
| Rabbi trust investments subtotal | 98 | | | 23 | | | 20 | | | 141 | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | |
| Total assets | 131 | | | 23 | | | 20 | | | 174 | | | 3 | | | — | | | — | | | 3 | | | — | | | — | | | — | | | — | |
| Liabilities | | | | | | | | | | | | | | | | | | | | | | | |
| Deferred compensation obligation | — | | | (1) | | | — | | | (1) | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | |
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| Total liabilities | — | | | (1) | | | — | | | (1) | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | |
| Total net assets | $ | 131 | | | $ | 22 | | | $ | 20 | | | $ | 173 | | | $ | 3 | | | $ | — | | | $ | — | | | $ | 3 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | |
__________
(a)PHI excludes cash of $44 million and $56 million at March 31, 2026 and December 31, 2025, respectively, and restricted cash of $1 million and $2 million at March 31, 2026 and December 31, 2025. Pepco excludes cash of $20 million and $22 million at March 31, 2026 and December 31, 2025, respectively. DPL excludes cash of $12 million and $9 million at March 31, 2026 and December 31, 2025, respectively. ACE excludes cash of $7 million and $22 million at March 31, 2026 and December 31, 2025, respectively and restricted cash of $1 million and $2 million at March 31, 2026 and December 31, 2025, respectively.
Combined Notes to Consolidated Financial Statements — (Continued)
(Dollars in millions, except per share data, unless otherwise noted)
Note 10 — Fair Value of Financial Assets and Liabilities
Reconciliation of Level 3 Assets and Liabilities
The following tables present the fair value reconciliation of Level 3 assets and liabilities measured at fair value on a recurring basis during the three months ended March 31, 2026 and 2025:
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| Exelon | | ComEd | | PHI and Pepco | | |
| Three Months Ended March 31, 2026 | Total | | Commodity
Derivatives | | Life Insurance Contracts | | |
| Balance at December 31, 2025 | $ | (110) | | | $ | (131) | | | $ | 20 | | | |
| Total realized / unrealized gains (losses) | | | | | | | |
Included in net income(a) | — | | | — | | | — | | | |
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Included in regulatory assets/liabilities(b) | (2) | | | (2) | | | — | | | |
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Balance at March 31, 2026(c) | $ | (112) | | | $ | (133) | | | $ | 20 | | | |
| The amount of total gains included in income attributed to the change in unrealized gains related to assets and liabilities at March 31, 2026 | $ | — | | | $ | — | | | $ | — | | | |
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| Exelon | | ComEd | | PHI and Pepco | | |
| Three Months Ended March 31, 2025 | Total | | Commodity
Derivatives | | Life Insurance Contracts | | |
| Balance at December 31, 2024 | $ | (110) | | | $ | (132) | | | $ | 21 | | | |
| Total realized / unrealized gains (losses) | | | | | | | |
Included in net income(a) | — | | | — | | | — | | | |
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Included in regulatory assets/liabilities(b) | (19) | | | (19) | | | — | | | |
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Balance at March 31, 2025(c) | $ | (129) | | | $ | (151) | | | $ | 21 | | | |
| The amount of total gains included in income attributed to the change in unrealized gains related to assets and liabilities at March 31, 2025 | $ | — | | | $ | — | | | $ | — | | | |
__________(a)Classified in Operating and maintenance expense in the Consolidated Statements of Operations and Comprehensive Income.
(b)For ComEd, this includes $10 million of decreases in fair value and an increase for realized gains due to settlements of $8 million recorded in Purchased power expense associated with floating-to-fixed energy swap contracts with unaffiliated suppliers for the three months ended March 31, 2026. Includes $30 million of decreases in fair value and an increase for realized gains due to settlements of $11 million recorded in Purchased power expense associated with floating-to-fixed energy swap contracts with unaffiliated suppliers for the three months ended March 31, 2025.
(c)For ComEd, the balance of the current and noncurrent asset was zero as of March 31, 2026. The balance consists of a current and noncurrent liability of $22 million and $111 million, respectively, as of March 31, 2026.
Commodity Derivatives (Exelon and ComEd)
The table below discloses the significant unobservable inputs to the forward curve used to value mark-to-market derivatives.
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| Type of trade | | Fair Value at March 31, 2026 | | Fair Value at December 31, 2025 | | Valuation
Technique | | Unobservable
Input | | 2026 Range & Arithmetic Average | | 2025 Range & Arithmetic Average |
| Commodity derivatives | | $ | (133) | | | $ | (131) | | | Discounted
Cash Flow | | Forward power price(a) | | $26.72 | - | $57.33 | $40.28 | | $28.45 | - | $62.87 | $38.62 |
________
(a)An increase to the forward power price would increase the fair value.
Combined Notes to Consolidated Financial Statements — (Continued)
(Dollars in millions, except per share data, unless otherwise noted)
Note 11 — Commitments and Contingencies
11. Commitments and Contingencies (All Registrants)
The following is an update to the current status of commitments and contingencies set forth in Note 16 — Commitments and Contingencies of the 2025 Form 10-K.
Commitments
PHI Merger Commitments (Exelon, PHI, Pepco, DPL, and ACE). Approval of the PHI Merger in Delaware, New Jersey, Maryland, and the District of Columbia was conditioned upon Exelon and PHI agreeing to certain commitments. The following amounts represent total commitment costs that have been recorded since the acquisition date and the total remaining obligations for Exelon, PHI, Pepco, DPL, and ACE at March 31, 2026:
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| Description | Exelon | | PHI | | Pepco | | DPL | | ACE |
| Total commitments | $ | 513 | | | $ | 320 | | | $ | 120 | | | $ | 89 | | | $ | 111 | |
Remaining commitments(a) | 21 | | | 19 | | | 19 | | | — | | | — | |
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__________
(a)Remaining commitments extend through 2026 and include escrow funds and rate credits.
Combined Notes to Consolidated Financial Statements — (Continued)
(Dollars in millions, except per share data, unless otherwise noted)
Note 11 — Commitments and Contingencies
Commercial Commitments (All Registrants). The Registrants’ commercial commitments at March 31, 2026, representing commitments potentially triggered by future events were as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Expiration within |
| Total | | 2026 | | 2027 | | 2028 | | 2029 | | 2030 | | 2031 and beyond |
| Exelon | | | | | | | | | | | | | |
Letters of credit(a) | $ | 57 | | | $ | 38 | | | $ | 19 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | |
Surety bonds(b) | 465 | | | 185 | | | 115 | | | 165 | | | — | | | — | | | — | |
Financing trust guarantees(c) | 378 | | | — | | | — | | | 78 | | | — | | | — | | | 300 | |
Guaranteed lease residual values(d) | 23 | | | — | | | 2 | | | 6 | | | 4 | | | 4 | | | 7 | |
| Total commercial commitments | $ | 923 | | | $ | 223 | | | $ | 136 | | | $ | 249 | | | $ | 4 | | | $ | 4 | | | $ | 307 | |
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| ComEd | | | | | | | | | | | | | |
Letters of credit(a) | $ | 18 | | | $ | 15 | | | $ | 3 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | |
Surety bonds(b) | 131 | | | 37 | | | 94 | | | — | | | — | | | — | | | — | |
Financing trust guarantees(c) | 200 | | | — | | | — | | | — | | | — | | | — | | | 200 | |
| Total commercial commitments | $ | 349 | | | $ | 52 | | | $ | 97 | | | $ | — | | | $ | — | | | $ | — | | | $ | 200 | |
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| PECO | | | | | | | | | | | | | |
Letters of credit(a) | $ | 5 | | | $ | 3 | | | $ | 2 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | |
Surety bonds(b) | 10 | | | 1 | | | 9 | | | — | | | — | | | — | | | — | |
Financing trust guarantees(c) | 178 | | | — | | | — | | | 78 | | | — | | | — | | | 100 | |
| Total commercial commitments | $ | 193 | | | $ | 4 | | | $ | 11 | | | $ | 78 | | | $ | — | | | $ | — | | | $ | 100 | |
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| BGE | | | | | | | | | | | | | |
Letters of credit(a) | $ | 27 | | | $ | 16 | | | $ | 11 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | |
Surety bonds(b) | 92 | | | 2 | | | 3 | | | 87 | | | — | | | — | | | — | |
| Total commercial commitments | $ | 119 | | | $ | 18 | | | $ | 14 | | | $ | 87 | | | $ | — | | | $ | — | | | $ | — | |
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| PHI | | | | | | | | | | | | | |
Letters of credit(a) | $ | 4 | | | $ | 2 | | | $ | 2 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | |
Surety bonds(b) | 173 | | | 90 | | | 5 | | | 78 | | | — | | | — | | | — | |
Guaranteed lease residual values(d) | 23 | | | — | | | 2 | | | 6 | | | 4 | | | 4 | | | 7 | |
| Total commercial commitments | $ | 200 | | | $ | 92 | | | $ | 9 | | | $ | 84 | | | $ | 4 | | | $ | 4 | | | $ | 7 | |
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| Pepco | | | | | | | | | | | | | |
Letters of credit(a) | $ | 2 | | | $ | 2 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | |
Surety bonds(b) | 161 | | | 82 | | | 1 | | | 78 | | | — | | | — | | | — | |
Guaranteed lease residual values(d) | 8 | | | — | | | 1 | | | 2 | | | 1 | | | 2 | | | 2 | |
| Total commercial commitments | $ | 171 | | | $ | 84 | | | $ | 2 | | | $ | 80 | | | $ | 1 | | | $ | 2 | | | $ | 2 | |
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| DPL | | | | | | | | | | | | | |
Letters of credit(a) | $ | 1 | | | $ | — | | | $ | 1 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | |
Surety bonds(b) | 6 | | | 3 | | | 3 | | | — | | | — | | | — | | | — | |
Guaranteed lease residual values(d) | 9 | | | — | | | 1 | | | 2 | | | 2 | | | 1 | | | 3 | |
| Total commercial commitments | $ | 16 | | | $ | 3 | | | $ | 5 | | | $ | 2 | | | $ | 2 | | | $ | 1 | | | $ | 3 | |
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| ACE | | | | | | | | | | | | | |
Letters of credit(a) | $ | 1 | | | $ | — | | | $ | 1 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | |
Surety bonds(b) | 6 | | | 5 | | | 1 | | | — | | | — | | | — | | | — | |
Guaranteed lease residual values(d) | 6 | | | — | | | — | | | 2 | | | 1 | | | 1 | | | 2 | |
| Total commercial commitments | $ | 13 | | | $ | 5 | | | $ | 2 | | | $ | 2 | | | $ | 1 | | | $ | 1 | | | $ | 2 | |
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