UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended March 31, 2025

or

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number	Name of Registrant; State or Other Jurisdiction of Incorporation; Address of Principal Executive Offices; and Telephone Number	IRS Employer Identification Number
001-16169	EXELON CORPORATION	23-2990190
	(a Pennsylvania corporation) 10 South Dearborn Street P.O. Box 805379 Chicago, Illinois 60680-5379 (800) 483-3220
001-01839	COMMONWEALTH EDISON COMPANY	36-0938600
	(an Illinois corporation) 10 South Dearborn Street Chicago, Illinois 60603-2300 (312) 394-4321
000-16844	PECO ENERGY COMPANY	23-0970240
	(a Pennsylvania corporation) 2301 Market Street P.O. Box 8699 Philadelphia, Pennsylvania 19101-8699 (215) 841-4000
001-01910	BALTIMORE GAS AND ELECTRIC COMPANY	52-0280210
	(a Maryland corporation) 2 Center Plaza 110 West Fayette Street Baltimore, Maryland 21201-3708 (410) 234-5000
001-31403	PEPCO HOLDINGS LLC	52-2297449
	(a Delaware limited liability company) 701 Ninth Street, N.W. Washington, District of Columbia 20068-0001 (202) 872-2000
001-01072	POTOMAC ELECTRIC POWER COMPANY	53-0127880
	(a District of Columbia and Virginia corporation) 701 Ninth Street, N.W. Washington, District of Columbia 20068-0001 (202) 872-2000
001-01405	DELMARVA POWER & LIGHT COMPANY	51-0084283
	(a Delaware and Virginia corporation) 500 North Wakefield Drive Newark, Delaware 19702-5440 (202) 872-2000
001-03559	ATLANTIC CITY ELECTRIC COMPANY	21-0398280
	(a New Jersey corporation) 500 North Wakefield Drive Newark, Delaware 19702-5440 (202) 872-2000

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
EXELON CORPORATION:
Common stock, without par value	EXC	The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes  x  No  o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).  Yes  x  No  o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Exelon Corporation	Large Accelerated Filer	x	Accelerated Filer	☐	Non-accelerated Filer	☐	Smaller Reporting Company	☐	Emerging Growth Company	☐
Commonwealth Edison Company	Large Accelerated Filer	☐	Accelerated Filer	☐	Non-accelerated Filer	x	Smaller Reporting Company	☐	Emerging Growth Company	☐
PECO Energy Company	Large Accelerated Filer	☐	Accelerated Filer	☐	Non-accelerated Filer	x	Smaller Reporting Company	☐	Emerging Growth Company	☐
Baltimore Gas and Electric Company	Large Accelerated Filer	☐	Accelerated Filer	☐	Non-accelerated Filer	x	Smaller Reporting Company	☐	Emerging Growth Company	☐
Pepco Holdings LLC	Large Accelerated Filer	☐	Accelerated Filer	☐	Non-accelerated Filer	x	Smaller Reporting Company	☐	Emerging Growth Company	☐
Potomac Electric Power Company	Large Accelerated Filer	☐	Accelerated Filer	☐	Non-accelerated Filer	x	Smaller Reporting Company	☐	Emerging Growth Company	☐
Delmarva Power & Light Company	Large Accelerated Filer	☐	Accelerated Filer	☐	Non-accelerated Filer	x	Smaller Reporting Company	☐	Emerging Growth Company	☐
Atlantic City Electric Company	Large Accelerated Filer	☐	Accelerated Filer	☐	Non-accelerated Filer	x	Smaller Reporting Company	☐	Emerging Growth Company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).  Yes  ☐  No  x

The number of shares outstanding of each registrant’s common stock as of March 31, 2025 was:

Exelon Corporation Common Stock, without par value	1,009,535,664
Commonwealth Edison Company Common Stock, $12.50 par value	127,021,418
PECO Energy Company Common Stock, without par value	170,478,507
Baltimore Gas and Electric Company Common Stock, without par value	1,000
Pepco Holdings LLC	not applicable
Potomac Electric Power Company Common Stock, $0.01 par value	100
Delmarva Power & Light Company Common Stock, $2.25 par value	1,000
Atlantic City Electric Company Common Stock, $3.00 par value	8,546,017

TABLE OF CONTENTS

		Page No.
GLOSSARY OF TERMS AND ABBREVIATIONS		4
FILING FORMAT		7
CAUTIONARY STATEMENTS REGARDING FORWARD-LOOKING INFORMATION		7
WHERE TO FIND MORE INFORMATION		8
PART I.	FINANCIAL INFORMATION	9
ITEM 1.	FINANCIAL STATEMENTS	9
	Exelon Corporation
	Consolidated Statements of Operations and Comprehensive Income	10
	Consolidated Statements of Cash Flows	11
	Consolidated Balance Sheets	12
	Consolidated Statements of Changes in Shareholders’ Equity	14
	Commonwealth Edison Company
	Consolidated Statements of Operations and Comprehensive Income	15
	Consolidated Statements of Cash Flows	16
	Consolidated Balance Sheets	17
	Consolidated Statements of Changes in Shareholders' Equity	19
	PECO Energy Company
	Consolidated Statements of Operations and Comprehensive Income	20
	Consolidated Statements of Cash Flows	21
	Consolidated Balance Sheets	22
	Consolidated Statements of Changes in Shareholder's Equity	24
	Baltimore Gas and Electric Company
	Statements of Operations and Comprehensive Income	25
	Statements of Cash Flows	26
	Balance Sheets	27
	Statements of Changes in Shareholder's Equity	29
	Pepco Holdings LLC
	Consolidated Statements of Operations and Comprehensive Income	30
	Consolidated Statements of Cash Flows	31
	Consolidated Balance Sheets	32
	Consolidated Statements of Changes in Member's Equity	34

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	Page No.
Potomac Electric Power Company
Statements of Operations and Comprehensive Income	35
Statements of Cash Flows	36
Balance Sheets	37
Statements of Changes in Shareholder's Equity	39
Delmarva Power & Light Company
Statements of Operations and Comprehensive Income	40
Statements of Cash Flows	41
Balance Sheets	42
Statements of Changes in Shareholder’s Equity	44
Atlantic City Electric Company
Consolidated Statements of Operations and Comprehensive Income	45
Consolidated Statements of Cash Flows	46
Consolidated Balance Sheets	47
Consolidated Statements of Changes in Shareholder’s Equity	49
Combined Notes to Consolidated Financial Statements
1. Significant Accounting Policies	50
2. Regulatory Matters	51
3. Revenue from Contracts with Customers	57
4. Segment Information	58
5. Accounts Receivable	64
6. Income Taxes	66
7. Retirement Benefits	68
8. Derivative Financial Instruments	69
9. Debt and Credit Agreements	72
10. Fair Value of Financial Assets and Liabilities	74
11. Commitments and Contingencies	75
12. Shareholders' Equity	81
13. Changes in Accumulated Other Comprehensive Income	82
14. Supplemental Financial Information	82
15. Related Party Transactions	86

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		Page No.
ITEM 2.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	88
	Exelon Corporation	88
	Executive Overview	88
	Financial Results of Operations	88
	Significant 2025 Transactions and Developments	89
	Other Key Business Drivers and Management Strategies	92
	Critical Accounting Policies and Estimates	93
	Results of Operations By Registrant	94
	Commonwealth Edison Company	94
	PECO Energy Company	97
	Baltimore Gas and Electric Company	101
	Pepco Holdings LLC	104
	Potomac Electric Power Company	105
	Delmarva Power & Light Company	108
	Atlantic City Electric Company	112
	Liquidity and Capital Resources	115
ITEM 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	123
ITEM 4.	CONTROLS AND PROCEDURES	124
PART II.	OTHER INFORMATION	124
ITEM 1.	LEGAL PROCEEDINGS	124
ITEM 1A.	RISK FACTORS	124
ITEM 5.	OTHER INFORMATION	125
ITEM 6.	EXHIBITS	125
SIGNATURES		128
	Exelon Corporation	128
	Commonwealth Edison Company	129
	PECO Energy Company	130
	Baltimore Gas and Electric Company	131
	Pepco Holdings LLC	132
	Potomac Electric Power Company	133
	Delmarva Power & Light Company	134
	Atlantic City Electric Company	135

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GLOSSARY OF TERMS AND ABBREVIATIONS
Exelon Corporation and Related Entities
Exelon	Exelon Corporation
ComEd	Commonwealth Edison Company
PECO	PECO Energy Company
BGE	Baltimore Gas and Electric Company
Pepco Holdings or PHI	Pepco Holdings LLC
Pepco	Potomac Electric Power Company
DPL	Delmarva Power & Light Company
ACE	Atlantic City Electric Company
Registrants	Exelon, ComEd, PECO, BGE, PHI, Pepco, DPL, and ACE, collectively
Utility Registrants	ComEd, PECO, BGE, Pepco, DPL, and ACE, collectively
BSC	Exelon Business Services Company, LLC
Exelon Corporate	Exelon in its corporate capacity as a holding company
PCI	Potomac Capital Investment Corporation and its subsidiaries
PECO Trust III	PECO Energy Capital Trust III
PECO Trust IV	PECO Energy Capital Trust IV
PHI Corporate	PHI in its corporate capacity as a holding company
PHISCO	PHI Service Company
Former Related Entities
Constellation	Constellation Energy Corporation
Generation	Constellation Energy Generation, LLC (formerly Exelon Generation Company, LLC, a subsidiary of Exelon prior to separation on February 1, 2022)

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GLOSSARY OF TERMS AND ABBREVIATIONS
Other Terms and Abbreviations
Note - of the 2024 Form 10-K	Reference to specific Combined Note to Consolidated Financial Statements within Exelon's 2024 Annual Report on Form 10-K
ABO	Accumulated Benefit Obligation
AFUDC	Allowance for Funds Used During Construction
AMI	Advanced Metering Infrastructure
AOCI	Accumulated Other Comprehensive Income (Loss)
ARO	Asset Retirement Obligation
ATM	At the market
BGS	Basic Generation Service
BSA	Bill Stabilization Adjustment
CEJA	Climate and Equitable Jobs Act; Illinois Public Act 102-0662 signed into law on September 15, 2021
CERCLA	Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended
CIP	Conservation Incentive Program
CMC	Carbon Mitigation Credit
CODMs	Chief Operating Decision Makers
DC PLUG	District of Columbia Power Line Undergrounding Initiative
DCPSC	Public Service Commission of the District of Columbia
DEPSC	Delaware Public Service Commission
DOEE	District of Columbia Department of Energy & Environment
DPA	Deferred Prosecution Agreement
DSIC	Distribution System Improvement Charge
EDIT	Excess Deferred Income Taxes
EIMA	Energy Infrastructure Modernization Act (Illinois Senate Bill 1652 and Illinois House Bill 3036)
EPA	United States Environmental Protection Agency
ERISA	Employee Retirement Income Security Act of 1974, as amended
ETAC	Energy Transition Assistance Charge
FERC	Federal Energy Regulatory Commission
GAAP	Generally Accepted Accounting Principles in the United States
GCR	Gas Cost Rate
GSA	Generation Supply Adjustment
GWhs	Gigawatt hours
ICC	Illinois Commerce Commission
IIJA	Infrastructure Investment and Jobs Act
Illinois Settlement Legislation	Legislation enacted in 2007 affecting electric utilities in Illinois
IPA	Illinois Power Agency
IRA	Inflation Reduction Act
IRC	Internal Revenue Code
IRS	Internal Revenue Service
MDPSC	Maryland Public Service Commission
MGP	Manufactured Gas Plant
mmcf	Million Cubic Feet
MRP	Multi-Year Rate Plan
MWh	Megawatt hour

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GLOSSARY OF TERMS AND ABBREVIATIONS
Other Terms and Abbreviations
N/A	Not Applicable
NAV	Net Asset Value
NJBPU	New Jersey Board of Public Utilities
NOLC	Tax Net Operating Loss Carryforward
NPNS	Normal Purchase Normal Sale scope exception
NPS	National Park Service
NRD	Natural Resources Damages
OCI	Other Comprehensive Income
OPEB	Other Postretirement Employee Benefits
PAPUC	Pennsylvania Public Utility Commission
PGC	Purchased Gas Cost Clause
PJM	PJM Interconnection, LLC
PLR	Private Letter Ruling
POLR	Provider of Last Resort
PPA	Power Purchase Agreement
PP&E	Property, Plant, and Equipment
PRPs	Potentially Responsible Parties
REC	Renewable Energy Credit which is issued for each megawatt hour of generation from a qualified renewable energy source
Regulatory Agreement Units	Nuclear generating units or portions thereof whose decommissioning-related activities are subject to regulatory agreements with the ICC and PAPUC
Rider	Reconcilable Surcharge Recovery Mechanism
ROE	Return on Equity
ROU	Right-of-use
RTO	Regional Transmission Organization
SEC	United States Securities and Exchange Commission
SOFR	Secured Overnight Financing Rate
SOS	Standard Offer Service
TCJA	Tax Cuts and Jobs Act
TSC	Transmission Service Charge
ZEC	Zero Emission Credit

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FILING FORMAT

This combined Form 10-Q is being filed separately by Exelon Corporation, Commonwealth Edison Company, PECO Energy Company, Baltimore Gas and Electric Company, Pepco Holdings LLC, Potomac Electric Power Company, Delmarva Power & Light Company, and Atlantic City Electric Company (Registrants). Information contained herein relating to any individual Registrant is filed by such Registrant on its own behalf. No Registrant makes any representation as to information relating to any other Registrant.

CAUTIONARY STATEMENTS REGARDING FORWARD-LOOKING INFORMATION

This Report contains certain forward-looking statements within the meaning of federal securities laws that are subject to risks and uncertainties. Words such as “could,” “may,” “expects,” “anticipates,” “will,” “targets,” “goals,” “projects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “predicts,” "should," and variations on such words, and similar expressions that reflect our current views with respect to future events and operational, economic and financial performance, are intended to identify such forward-looking statements. Accordingly, any such statements are qualified in their entirety by reference to, and are accompanied by, the following important factors that may cause our actual results or outcomes to differ materially from those contained in our forward-looking statements, including, but not limited to:

•unfavorable legislative and/or regulatory actions;

•uncertainty as to outcomes and timing of regulatory approval proceedings and/or negotiated settlements thereof;

•environmental liabilities and remediation costs;

•state and federal legislation requiring use of low-emission, renewable, and/or alternate fuel sources and/or mandating implementation of energy conservation programs requiring implementation of new technologies;

•challenges to tax positions taken, tax law changes, and difficulty in quantifying potential tax effects of business decisions;

•negative outcomes in legal proceedings;

•adverse impact of the activities associated with the past DPA and now-resolved SEC investigation on Exelon’s and ComEd’s reputation and relationships with legislators, regulators, and customers;

•physical security and cybersecurity risks;

•extreme weather events, natural disasters, operational accidents such as wildfires or natural, gas explosions, war, acts and threats of terrorism, public health crises, epidemics, pandemics, or other significant events;

•disruptions or cost increases in the supply chain, including shortages in labor, materials or parts, or significant increases in relevant tariffs;

•lack of sufficient capacity to meet actual or forecasted demand or disruptions at power generation facilities owned by third parties;

•emerging technologies that could affect or transform the energy industry;

•instability in capital and credit markets;

•a downgrade of any Registrant’s credit ratings or other failure to satisfy the credit standards in the Registrants’ agreements or regulatory financial requirements;

•significant economic downturns or increases in customer rates;

•impacts of climate change and weather on energy usage and maintenance and capital costs; and

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•impairment of long-lived assets, goodwill, and other assets.

New factors emerge from time to time, and it is impossible for us to predict all of such factors, nor can we assess the impact of each such factor on the business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. For more information, see those factors discussed in the 2024 Form 10-K filed by the Registrants, including in Part I, ITEM 1A. Risk Factors, and this Report including in Part II, ITEM 1A. Risk Factors.

Investors are cautioned not to place undue reliance on these forward-looking statements, which apply only as of the date of this Report. None of the Registrants undertakes any obligation to publicly release any revision to its forward-looking statements to reflect events or circumstances after the date of this Report.

WHERE TO FIND MORE INFORMATION

The SEC maintains an Internet site at www.sec.gov that contains reports, proxy and information statements, and other information that the Registrants file electronically with the SEC. These documents are also available to the public from commercial document retrieval services and free of charge at the Registrants' website at www.exeloncorp.com. Information contained on the Registrants' website shall not be deemed incorporated into, or to be a part of, this Report.

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PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

9

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Exelon Corporation and Subsidiary Companies

Consolidated Statements of Operations and Comprehensive Income

(Unaudited)

	Three Months Ended March 31,
(In millions, except per share data)	2025		2024
Operating revenues
Electric operating revenues	$	5,816	$	5,198
Natural gas operating revenues	1,024		739
Revenues from alternative revenue programs	(126)		106
Total operating revenues	6,714		6,043
Operating expenses
Purchased power	2,184		2,197
Purchased fuel	338		213
Operating and maintenance	1,347		1,271
Depreciation and amortization	903		879
Taxes other than income taxes	405		371
Total operating expenses	5,177		4,931
(Loss) gain on sale of assets	(1)		2
Operating income	1,536		1,114
Other income and (deductions)
Interest expense, net	(504)		(462)
Interest expense to affiliates, net	(6)		(6)
Other, net	52		75
Total other income and (deductions)	(458)		(393)
Income before income taxes	1,078		721
Income taxes	170		63
Net income attributable to common shareholders	$	908	$	658
Comprehensive income, net of income taxes
Net income	$	908	$	658
Other comprehensive income, net of income taxes
Pension and non-pension postretirement benefit plans:
Actuarial losses reclassified to periodic benefit cost	5		5
Pension and non-pension postretirement benefit plans valuation adjustments	5		(24)
Unrealized (loss) gain on cash flow hedges	(8)		33
Other comprehensive income	2		14
Comprehensive income attributable to common shareholders	$	910	$	672
Average shares of common stock outstanding:
Basic	1,008		1,000
Assumed exercise and/or distributions of stock-based awards(a)	1		1
Diluted	1,009		1,001
Earnings per average common share
Basic	$	0.90	$	0.66
Diluted	$	0.90	$	0.66

__________

(a)The dilutive effects of stock-based compensation awards are calculated using the treasury stock method for all periods presented.

See the Combined Notes to Consolidated Financial Statements

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Exelon Corporation and Subsidiary Companies

Consolidated Statements of Cash Flows

(Unaudited)

	Three Months Ended March 31,
(In millions)	2025		2024
Cash flows from operating activities
Net income	$	908	$	658
Adjustments to reconcile net income to net cash flows provided by operating activities:
Depreciation, amortization, and accretion	905		880
Loss (gain) on sales of assets	1		(2)
Deferred income taxes and amortization of investment tax credits	121		46
Net fair value changes related to derivatives	1		1
Other non-cash operating activities	344		39
Changes in assets and liabilities:
Accounts receivable	(402)		(309)
Inventories	17		12
Accounts payable and accrued expenses	(397)		(238)
Collateral received, net	44		7
Income taxes	59		21
Regulatory assets and liabilities, net	86		252
Pension and non-pension postretirement benefit contributions	(292)		(111)
Other assets and liabilities	(195)		(264)
Net cash flows provided by operating activities	1,200		992
Cash flows from investing activities
Capital expenditures	(1,946)		(1,767)
Proceeds from sales of assets	—		2
Other investing activities	4		(2)
Net cash flows used in investing activities	(1,942)		(1,767)
Cash flows from financing activities
Changes in short-term borrowings	(775)		(317)
Proceeds from short-term borrowings with maturities greater than 90 days	—		150
Repayments on short-term borrowings with maturities greater than 90 days	—		(150)
Issuance of long-term debt	2,425		2,625
Retirement of long-term debt	—		(901)
Issuance of common stock	173		—
Dividends paid on common stock	(403)		(381)
Proceeds from employee stock plans	—		11
Other financing activities	(35)		(55)
Net cash flows provided by financing activities	1,385		982
Increase in cash, restricted cash, and cash equivalents	643		207
Cash, restricted cash, and cash equivalents at beginning of period	939		1,101
Cash, restricted cash, and cash equivalents at end of period	$	1,582	$	1,308
Supplemental cash flow information
Decrease in capital expenditures not paid	(216)		(117)

See the Combined Notes to Consolidated Financial Statements

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Exelon Corporation and Subsidiary Companies

Consolidated Balance Sheets

(Unaudited)

(In millions)	March 31, 2025		December 31, 2024
ASSETS
Current assets
Cash and cash equivalents	$	1,004	$	357
Restricted cash and cash equivalents	578		541
Accounts receivable
Customer accounts receivable	3,488		3,144
Customer allowance for credit losses	(486)		(406)
Customer accounts receivable, net	3,002		2,738
Other accounts receivable	1,127		1,123
Other allowance for credit losses	(113)		(107)
Other accounts receivable, net	1,014		1,016
Inventories, net
Fossil fuel	29		72
Materials and supplies	804		781
Regulatory assets	1,605		1,940
Prepaid renewable energy credits	240		494
Other	523		445
Total current assets	8,799		8,384
Property, plant, and equipment (net of accumulated depreciation and amortization of $18,958 and $18,445 as of March 31, 2025 and December 31, 2024, respectively)	79,177		78,182
Deferred debits and other assets
Regulatory assets	8,859		8,710
Goodwill	6,630		6,630
Receivable related to Regulatory Agreement Units	4,110		4,026
Investments	289		290
Other	1,620		1,562
Total deferred debits and other assets	21,508		21,218
Total assets	$	109,484	$	107,784

See the Combined Notes to Consolidated Financial Statements

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Exelon Corporation and Subsidiary Companies

Consolidated Balance Sheets

(Unaudited)

(In millions)	March 31, 2025		December 31, 2024
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Short-term borrowings	$	1,084	$	1,859
Long-term debt due within one year	1,454		1,453
Accounts payable	2,693		2,994
Accrued expenses	1,186		1,468
Payables to affiliates	5		5
Customer deposits	465		446
Regulatory liabilities	464		411
Mark-to-market derivative liabilities	25		29
Unamortized energy contract liabilities	5		5
Renewable energy credit obligations	215		429
Other	507		512
Total current liabilities	8,103		9,611
Long-term debt	45,342		42,947
Long-term debt to financing trusts	390		390
Deferred credits and other liabilities
Deferred income taxes and unamortized investment tax credits	13,081		12,793
Regulatory liabilities	10,289		10,198
Pension obligations	1,475		1,745
Non-pension postretirement benefit obligations	480		472
Asset retirement obligations	305		301
Mark-to-market derivative liabilities	130		103
Unamortized energy contract liabilities	20		21
Other	2,262		2,282
Total deferred credits and other liabilities	28,042		27,915
Total liabilities	81,877		80,863
Commitments and contingencies
Shareholders’ equity
Common stock (No par value, 2,000 shares authorized, 1,009 shares and 1,005 shares outstanding as of March 31, 2025 and December 31, 2024, respectively)	21,517		21,338
Treasury stock, at cost (2 shares as of March 31, 2025 and December 31, 2024)	(123)		(123)
Retained earnings	6,931		6,426
Accumulated other comprehensive loss, net	(718)		(720)
Total shareholders’ equity	27,607		26,921
Total liabilities and shareholders’ equity	$	109,484	$	107,784

See the Combined Notes to Consolidated Financial Statements

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Exelon Corporation and Subsidiary Companies

Consolidated Statements of Changes in Shareholders' Equity

(Unaudited)

	Three Months Ended March 31, 2025
(In millions, shares in thousands)	Issued Shares	Common Stock		Treasury Stock		Retained Earnings		Accumulated Other Comprehensive Loss, net		Total Shareholders' Equity
Balance at December 31, 2024	1,007,046	$	21,338	$	(123)	$	6,426	$	(720)	$	26,921
Net income	—	—		—		908		—		908
Long-term incentive plan activity	299	4		—		—		—		4
Employee stock purchase plan activity	(8)	2		—		—		—		2
Issuance of Common Stock	4,031	173		—		—		—		173
Common stock dividends ($0.40/common share)	—	—		—		(403)				(403)
Other comprehensive income, net of income taxes	—	—		—		—		2		2
Balance at March 31, 2025	1,011,368	$	21,517	$	(123)	$	6,931	$	(718)	$	27,607

	Three Months Ended March 31, 2024
(In millions, shares in thousands)	Issued Shares	Common Stock		Treasury Stock		Retained Earnings		Accumulated Other Comprehensive Loss, net		Total Shareholders' Equity
Balance at December 31, 2023	1,001,249	$	21,114	$	(123)	$	5,490	$	(726)	$	25,755
Net income	—	—		—		658		—		658
Long-term incentive plan activity	333	2		—		—		—		2
Employee stock purchase plan activity	276	13		—		—		—		13
Common stock dividends ($0.38/common share)	—	—		—		(381)		—		(381)
Other comprehensive income, net of income taxes	—	—		—		—		14		14
Balance at March 31, 2024	1,001,858	$	21,129	$	(123)	$	5,767	$	(712)	$	26,061

See the Combined Notes to Consolidated Financial Statements

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Commonwealth Edison Company and Subsidiary Companies

Consolidated Statements of Operations and Comprehensive Income

(Unaudited)

	Three Months Ended March 31,
(In millions)	2025		2024
Operating revenues
Electric operating revenues	$	2,142	$	2,074
Revenues from alternative revenue programs	(85)		19
Operating revenues from affiliates	8		2
Total operating revenues	2,065		2,095
Operating expenses
Purchased power	689		907
Operating and maintenance	323		318
Operating and maintenance from affiliates	100		100
Depreciation and amortization	380		362
Taxes other than income taxes	99		94
Total operating expenses	1,591		1,781
Operating income	474		314
Other income and (deductions)
Interest expense, net	(125)		(119)
Interest expense to affiliates, net	(3)		(3)
Other, net	21		20
Total other income and (deductions)	(107)		(102)
Income before income taxes	367		212
Income taxes	65		19
Net income	$	302	$	193
Comprehensive income	$	302	$	193

See the Combined Notes to Consolidated Financial Statements

15

Table of Contents

Commonwealth Edison Company and Subsidiary Companies

Consolidated Statements of Cash Flows

(Unaudited)

	Three Months Ended March 31,
(In millions)	2025		2024
Cash flows from operating activities
Net income	$	302	$	193
Adjustments to reconcile net income to net cash flows provided by operating activities:
Depreciation and amortization	380		362
Deferred income taxes and amortization of investment tax credits	(8)		(1)
Other non-cash operating activities	141		(6)
Changes in assets and liabilities:
Accounts receivable	(111)		(133)
Receivables from and payables to affiliates, net	(21)		—
Inventories	3		(11)
Accounts payable and accrued expenses	(189)		(116)
Collateral received, net	5		8
Income taxes	72		21
Regulatory assets and liabilities, net	76		315
Pension and non-pension postretirement benefit contributions	(189)		(5)
Other assets and liabilities	(102)		(67)
Net cash flows provided by operating activities	359		560
Cash flows from investing activities
Capital expenditures	(590)		(594)
Other investing activities	1		1
Net cash flows used in investing activities	(589)		(593)
Cash flows from financing activities
Changes in short-term borrowings	311		128
Dividends paid on common stock	(203)		(194)
Contributions from parent	87		39
Other financing activities	—		1
Net cash flows provided by (used in) financing activities	195		(26)
Decrease in cash, restricted cash, and cash equivalents	(35)		(59)
Cash, restricted cash, and cash equivalents at beginning of period	632		686
Cash, restricted cash, and cash equivalents at end of period	$	597	$	627
Supplemental cash flow information
Decrease in capital expenditures not paid	$	(25)	$	(74)

See the Combined Notes to Consolidated Financial Statements

16

Table of Contents

Commonwealth Edison Company and Subsidiary Companies

Consolidated Balance Sheets

(Unaudited)

(In millions)	March 31, 2025		December 31, 2024
ASSETS
Current assets
Cash and cash equivalents	$	96	$	105
Restricted cash and cash equivalents	501		486
Accounts receivable
Customer accounts receivable	1,079		994
Customer allowance for credit losses	(125)		(109)
Customer accounts receivable, net	954		885
Other accounts receivable	291		290
Other allowance for credit losses	(34)		(34)
Other accounts receivable, net	257		256
Receivables from affiliates	8		4
Inventories, net	287		292
Regulatory assets	905		1,159
Other	154		141
Total current assets	3,162		3,328
Property, plant, and equipment (net of accumulated depreciation and amortization of $7,824 and $7,619 as of March 31, 2025 and December 31, 2024, respectively)	30,493		30,211
Deferred debits and other assets
Regulatory assets	2,662		2,562
Goodwill	2,625		2,625
Receivable related to Regulatory Agreement Units	3,798		3,780
Investments	6		6
Prepaid pension asset	1,335		1,165
Other	1,118		1,073
Total deferred debits and other assets	11,544		11,211
Total assets	$	45,199	$	44,750

See the Combined Notes to Consolidated Financial Statements

17

Table of Contents

Commonwealth Edison Company and Subsidiary Companies

Consolidated Balance Sheets

(Unaudited)

(In millions)	March 31, 2025		December 31, 2024
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Short-term borrowings	$	347	$	36
Accounts payable	656		748
Accrued expenses	403		463
Payables to affiliates	60		77
Customer deposits	147		134
Regulatory liabilities	181		197
Mark-to-market derivative liabilities	25		29
Other	245		270
Total current liabilities	2,064		1,954
Long-term debt	12,031		12,030
Long-term debt to financing trust	206		206
Deferred credits and other liabilities
Deferred income taxes and unamortized investment tax credits	5,646		5,601
Regulatory liabilities	8,490		8,421
Asset retirement obligations	169		167
Non-pension postretirement benefit obligations	158		156
Mark-to-market derivative liabilities	126		103
Other	1,243		1,232
Total deferred credits and other liabilities	15,832		15,680
Total liabilities	30,133		29,870
Commitments and contingencies
Shareholders’ equity
Common stock	1,588		1,588
Other paid-in capital	10,715		10,628
Retained earnings	2,763		2,664
Total shareholders’ equity	15,066		14,880
Total liabilities and shareholders’ equity	$	45,199	$	44,750

    

See the Combined Notes to Consolidated Financial Statements

18

Table of Contents

Commonwealth Edison Company and Subsidiary Companies

Consolidated Statements of Changes in Shareholders' Equity

(Unaudited)

	Three Months Ended March 31, 2025
(In millions)	Common Stock		Other Paid-In Capital		Retained Earnings		Total Shareholders’ Equity
Balance at December 31, 2024	$	1,588	$	10,628	$	2,664	$	14,880
Net income	—		—		302		302
Common stock dividends	—		—		(203)		(203)
Contributions from parent	—		87		—		87
Balance at March 31, 2025	$	1,588	$	10,715	$	2,763	$	15,066
	Three Months Ended March 31, 2024
(In millions)	Common Stock		Other Paid-In Capital		Retained Earnings		Total Shareholders’ Equity
Balance at December 31, 2023	$	1,588	$	10,401	$	2,374	$	14,363
Net income	—		—		193		193
Common stock dividends	—		—		(194)		(194)
Contributions from parent	—		39		—		39
Balance at March 31, 2024	$	1,588	$	10,440	$	2,373	$	14,401

See the Combined Notes to Consolidated Financial Statements

19

Table of Contents

PECO Energy Company and Subsidiary Companies

Consolidated Statements of Operations and Comprehensive Income

(Unaudited)

	Three Months Ended March 31,
(In millions)	2025		2024
Operating revenues
Electric operating revenues	$	963	$	782
Natural gas operating revenues	376		272
Revenues from alternative revenue programs	(9)		(2)
Operating revenues from affiliates	3		2
Total operating revenues	1,333		1,054
Operating expenses
Purchased power	361		306
Purchased fuel	141		97
Operating and maintenance	266		235
Operating and maintenance from affiliates	61		58
Depreciation and amortization	109		104
Taxes other than income taxes	60		51
Total operating expenses	998		851
Gain on sales of assets	—		2
Operating income	335		205
Other income and (deductions)
Interest expense, net	(59)		(52)
Interest expense to affiliates	(4)		(3)
Other, net	8		9
Total other income and (deductions)	(55)		(46)
Income before income taxes	280		159
Income taxes	14		10
Net income	$	266	$	149
Comprehensive income	$	266	$	149

See the Combined Notes to Consolidated Financial Statements

20

Table of Contents

PECO Energy Company and Subsidiary Companies

Consolidated Statements of Cash Flows

(Unaudited)

	Three Months Ended March 31,
(In millions)	2025		2024
Cash flows from operating activities
Net income	$	266	$	149
Adjustments to reconcile net income to net cash flows provided by operating activities:
Depreciation and amortization	109		104
Gain on sales of assets	—		(2)
Deferred income taxes and amortization of investment tax credits	(18)		(8)
Other non-cash operating activities	54		20
Changes in assets and liabilities:
Accounts receivable	(148)		(75)
Receivables from and payables to affiliates, net	(4)		4
Inventories	15		19
Accounts payable and accrued expenses	(25)		(63)
Collateral (paid) received, net	12		—
Income taxes	32		19
Regulatory assets and liabilities, net	27		(20)
Pension and non-pension postretirement benefit contributions	(9)		(2)
Other assets and liabilities	(117)		(104)
Net cash flows provided by operating activities	194		41
Cash flows from investing activities
Capital expenditures	(424)		(361)
Other investing activities	2		2
Net cash flows used in investing activities	(422)		(359)
Cash flows from financing activities
Changes in short-term borrowings	(192)		(165)
Dividends paid on common stock	(137)		(100)
Contributions from parent	563		580
Net cash flows provided by financing activities	234		315
Increase (decrease) in cash, restricted cash, and cash equivalents	6		(3)
Cash, restricted cash, and cash equivalents at beginning of period	48		51
Cash, restricted cash, and cash equivalents at end of period	$	54	$	48
Supplemental cash flow information
(Decrease) increase in capital expenditures not paid	$	(20)	$	5

See the Combined Notes to Consolidated Financial Statements

21

Table of Contents

PECO Energy Company and Subsidiary Companies

Consolidated Balance Sheets

(Unaudited)

(In millions)	March 31, 2025		December 31, 2024
ASSETS
Current assets
Cash and cash equivalents	$	54	$	48
Accounts receivable
Customer accounts receivable	788		670
Customer allowance for credit losses	(160)		(133)
Customer accounts receivable, net	628		537
Other accounts receivable	170		145
Other allowance for credit losses	(22)		(18)
Other accounts receivable, net	148		127
Inventories, net
Fossil fuel	15		37
Materials and supplies	83		79
Prepaid utility taxes	116		2
Prepaid renewable energy credits	31		51
Regulatory assets	61		65
Other	66		27
Total current assets	1,202		973
Property, plant, and equipment (net of accumulated depreciation and amortization of $4,089 and $4,042 as of March 31, 2025 and December 31, 2024, respectively)	14,691		14,392
Deferred debits and other assets
Regulatory assets	1,068		1,003
Receivable related to Regulatory Agreement Units	311		247
Investments	39		41
Prepaid pension asset	443		435
Other	35		32
Total deferred debits and other assets	1,896		1,758
Total assets	$	17,789	$	17,123

See the Combined Notes to Consolidated Financial Statements

22

Table of Contents

PECO Energy Company and Subsidiary Companies

Consolidated Balance Sheets

(Unaudited)

(In millions)	March 31, 2025		December 31, 2024
LIABILITIES AND SHAREHOLDER'S EQUITY
Current liabilities
Short-term borrowings	$	—	$	192
Long-term debt due within one year	350		350
Accounts payable	631		639
Accrued expenses	169		166
Payables to affiliates	37		41
Customer deposits	84		80
Regulatory liabilities	151		122
Other	120		80
Total current liabilities	1,542		1,670
Long-term debt	5,354		5,354
Long-term debt to financing trusts	184		184
Deferred credits and other liabilities
Deferred income taxes and unamortized investment tax credits	2,485		2,433
Regulatory liabilities	317		253
Asset retirement obligations	28		27
Non-pension postretirement benefit obligations	288		287
Other	84		100
Total deferred credits and other liabilities	3,202		3,100
Total liabilities	10,282		10,308
Commitments and contingencies
Shareholder’s equity
Common stock	5,208		4,645
Retained earnings	2,299		2,170
Total shareholder’s equity	7,507		6,815
Total liabilities and shareholder's equity	$	17,789	$	17,123

See the Combined Notes to Consolidated Financial Statements

23

Table of Contents

PECO Energy Company and Subsidiary Companies

Consolidated Statements of Changes in Shareholders' Equity

(Unaudited)

	Three Months Ended March 31, 2025
(In millions)	Common Stock		Retained Earnings		Total Shareholder's Equity
Balance at December 31, 2024	$	4,645	$	2,170	$	6,815
Net income	—		266		266
Common stock dividends	—		(137)		(137)
Contributions from parent	563		—		563
Balance at March 31, 2025	$	5,208	$	2,299	$	7,507
	Three Months Ended March 31, 2024
(In millions)	Common Stock		Retained Earnings		Total Shareholder's Equity
Balance at December 31, 2023	$	4,050	$	2,019	$	6,069
Net income	—		149		149
Common stock dividends	—		(100)		(100)
Contributions from parent	580		—		580
Balance at March 31, 2024	$	4,630	$	2,068	$	6,698

See the Combined Notes to Consolidated Financial Statements

24

Table of Contents

Baltimore Gas and Electric Company

Statements of Operations and Comprehensive Income

(Unaudited)

	Three Months Ended March 31,
(In millions)	2025		2024
Operating revenues
Electric operating revenues	$	1,021	$	857
Natural gas operating revenues	560		395
Revenues from alternative revenue programs	(29)		43
Operating revenues from affiliates	2		2
Total operating revenues	1,554		1,297
Operating expenses
Purchased power	450		377
Purchased fuel	159		87
Operating and maintenance	242		205
Operating and maintenance from affiliates	63		59
Depreciation and amortization	164		150
Taxes other than income taxes	96		89
Total operating expenses	1,174		967
Operating income	380		330
Other income and (deductions)
Interest expense, net	(58)		(50)
Other, net	9		8
Total other income and (deductions)	(49)		(42)
Income before income taxes	331		288
Income taxes	71		24
Net income	$	260	$	264
Comprehensive income	$	260	$	264

See the Combined Notes to Consolidated Financial Statements

25

Table of Contents

Baltimore Gas and Electric Company

Statements of Cash Flows

(Unaudited)

	Three Months Ended March 31,
(In millions)	2025		2024
Cash flows from operating activities
Net income	$	260	$	264
Adjustments to reconcile net income to net cash flows provided by operating activities:
Depreciation and amortization	164		150
Deferred income taxes and amortization of investment tax credits	35		(4)
Other non-cash operating activities	55		(21)
Changes in assets and liabilities:
Accounts receivable	(153)		(95)
Receivables from and payables to affiliates, net	(10)		2
Inventories	20		14
Accounts payable and accrued expenses	(15)		21
Collateral received, net	1		—
Income taxes	36		29
Regulatory assets and liabilities, net	14		—
Pension and non-pension postretirement benefit contributions	(34)		(25)
Other assets and liabilities	49		(18)
Net cash flows provided by operating activities	422		317
Cash flows from investing activities
Capital expenditures	(406)		(324)
Other investing activities	3		8
Net cash flows used in investing activities	(403)		(316)
Cash flows from financing activities
Changes in short-term borrowings	62		70
Dividends paid on common stock	(98)		(92)
Net cash flows used in financing activities	(36)		(22)
Decrease in cash, restricted cash, and cash equivalents	(17)		(21)
Cash, restricted cash, and cash equivalents at beginning of period	34		48
Cash, restricted cash, and cash equivalents at end of period	$	17	$	27
Supplemental cash flow information
Decrease in capital expenditures not paid	$	(48)	$	(8)

See the Combined Notes to Consolidated Financial Statements

26

Table of Contents

Baltimore Gas and Electric Company

Balance Sheets

(Unaudited)

(In millions)	March 31, 2025		December 31, 2024
ASSETS
Current assets
Cash and cash equivalents	$	14	$	33
Restricted cash and cash equivalents	3		1
Accounts receivable
Customer accounts receivable	805		654
Customer allowance for credit losses	(72)		(56)
Customer accounts receivable, net	733		598
Other accounts receivable	109		113
Other allowance for credit losses	(6)		(6)
Other accounts receivable, net	103		107
Inventories, net
Fossil fuel	12		29
Materials and supplies	81		84
Prepaid utility taxes	58		115
Regulatory assets	156		207
Prepaid renewable energy credits	52		157
Other	17		17
Total current assets	1,229		1,348
Property, plant, and equipment (net of accumulated depreciation and amortization of $5,079 and $5,005 as of March 31, 2025 and December 31, 2024, respectively)	13,358		13,134
Deferred debits and other assets
Regulatory assets	798		788
Investments	10		10
Prepaid pension asset	231		218
Other	51		44
Total deferred debits and other assets	1,090		1,060
Total assets	$	15,677	$	15,542

See the Combined Notes to Consolidated Financial Statements

27

Table of Contents

Baltimore Gas and Electric Company

Balance Sheets

(Unaudited)

(In millions)	March 31, 2025		December 31, 2024
LIABILITIES AND SHAREHOLDER'S EQUITY
Current liabilities
Short-term borrowings	$	237	$	175
Accounts payable	445		515
Accrued expenses	211		176
Payables to affiliates	38		48
Customer deposits	119		118
Regulatory liabilities	34		12
Renewable energy credit obligations	53		160
Other	39		39
Total current liabilities	1,176		1,243
Long-term debt	5,396		5,395
Deferred credits and other liabilities
Deferred income taxes and unamortized investment tax credits	2,161		2,099
Regulatory liabilities	615		636
Asset retirement obligations	36		36
Non-pension postretirement benefit obligations	145		150
Other	100		97
Total deferred credits and other liabilities	3,057		3,018
Total liabilities	9,629		9,656
Commitments and contingencies
Shareholder's equity
Common stock	3,483		3,483
Retained earnings	2,565		2,403
Total shareholder's equity	6,048		5,886
Total liabilities and shareholder's equity	$	15,677	$	15,542

See the Combined Notes to Consolidated Financial Statements

28

Table of Contents

Baltimore Gas and Electric Company

Statements of Changes in Shareholder's Equity

(Unaudited)

	Three Months Ended March 31, 2025
(In millions)	Common Stock		Retained Earnings		Total Shareholder's Equity
Balance at December 31, 2024	$	3,483	$	2,403	$	5,886
Net income	—		260		260
Common stock dividends	—		(98)		(98)
Balance at March 31, 2025	$	3,483	$	2,565	$	6,048
	Three Months Ended March 31, 2024
(In millions)	Common Stock		Retained Earnings		Total Shareholder's Equity
Balance at December 31, 2023	$	3,246	$	2,244	$	5,490
Net income	—		264		264
Common stock dividends	—		(92)		(92)
Balance at March 31, 2024	$	3,246	$	2,416	$	5,662

See the Combined Notes to Consolidated Financial Statements

29

Table of Contents

Pepco Holdings LLC and Subsidiary Companies

Consolidated Statements of Operations and Comprehensive Income

(Unaudited)

	Three Months Ended March 31,
(In millions)	2025		2024
Operating revenues
Electric operating revenues	$	1,691	$	1,485
Natural gas operating revenues	88		72
Revenues from alternative revenue programs	(3)		46
Operating revenues from affiliates	2		3
Total operating revenues	1,778		1,606
Operating expenses
Purchased power	684		607
Purchased fuel	38		29
Operating and maintenance	296		274
Operating and maintenance from affiliates	53		51
Depreciation and amortization	234		246
Taxes other than income taxes	140		128
Total operating expenses	1,445		1,335
Loss on sale of assets	(1)		—
Operating income	332		271
Other income and (deductions)
Interest expense, net	(99)		(90)
Interest expense to affiliates, net	(1)		—
Other, net	19		27
Total other income and (deductions)	(81)		(63)
Income before income taxes	251		208
Income taxes	57		40
Net income	$	194	$	168
Comprehensive income	$	194	$	168

See the Combined Notes to Consolidated Financial Statements

30

Table of Contents

Pepco Holdings LLC and Subsidiary Companies

Consolidated Statements of Cash Flows

(Unaudited)

	Three Months Ended March 31,
(In millions)	2025		2024
Cash flows from operating activities
Net income	$	194	$	168
Adjustments to reconcile net income to net cash flows provided by operating activities:
Depreciation and amortization	234		246
Loss on sales of assets	1		—
Deferred income taxes and amortization of investment tax credits	32		16
Other non-cash operating activities	69		9
Changes in assets and liabilities:
Accounts receivable	6		1
Receivables from and payables to affiliates, net	(9)		—
Inventories	(24)		(11)
Accounts payable and accrued expenses	(84)		(23)
Collateral received, net	27		—
Income taxes	25		24
Regulatory assets and liabilities, net	(14)		(42)
Pension and non-pension postretirement benefit contributions	(42)		(72)
Other assets and liabilities	(13)		(27)
Net cash flows provided by operating activities	402		289
Cash flows from investing activities
Capital expenditures	(513)		(453)
Net cash flows used in investing activities	(513)		(453)
Cash flows from financing activities
Changes in short-term borrowings	(530)		(394)
Issuance of long-term debt	425		925
Retirement of long-term debt	—		(400)
Changes in Exelon intercompany money pool	11		8
Distributions to member	(132)		(118)
Contributions from member	352		487
Other financing activities	(8)		(21)
Net cash flows provided by financing activities	118		487
Increase in cash, restricted cash, and cash equivalents	7		323
Cash, restricted cash, and cash equivalents at beginning of period	163		204
Cash, restricted cash, and cash equivalents at end of period	$	170	$	527
Supplemental cash flow information
Decrease in capital expenditures not paid	$	(109)	$	(11)

See the Combined Notes to Consolidated Financial Statements

31

Table of Contents

Pepco Holdings LLC and Subsidiary Companies

Consolidated Balance Sheets

(Unaudited)

(In millions)	March 31, 2025		December 31, 2024
ASSETS
Current assets
Cash and cash equivalents	$	127	$	139
Restricted cash and cash equivalents	43		24
Accounts receivable
Customer accounts receivable	815		827
Customer allowance for credit losses	(129)		(108)
Customer accounts receivable, net	686		719
Other accounts receivable	281		284
Other allowance for credit losses	(51)		(49)
Other accounts receivable, net	230		235
Receivables from affiliates	8		8
Inventories, net
Fossil fuel	2		7
Materials and supplies	354		325
Prepaid utility taxes	39		70
Regulatory assets	297		323
Prepaid renewable energy credits	58		194
Other	56		36
Total current assets	1,900		2,080
Property, plant, and equipment (net of accumulated depreciation and amortization of $3,892 and $3,728 as of March 31, 2025 and December 31, 2024, respectively)	20,258		20,053
Deferred debits and other assets
Regulatory assets	1,577		1,570
Goodwill	4,005		4,005
Investments	152		152
Prepaid pension asset	266		252
Other	191		185
Total deferred debits and other assets	6,191		6,164
Total assets	$	28,349	$	28,297

See the Combined Notes to Consolidated Financial Statements

32

Table of Contents

Pepco Holdings LLC and Subsidiary Companies

Consolidated Balance Sheets

(Unaudited)

(In millions)	March 31, 2025		December 31, 2024
LIABILITIES AND MEMBER'S EQUITY
Current liabilities
Short-term borrowings	$	—	$	530
Long-term debt due within one year	292		290
Accounts payable	605		721
Accrued expenses	317		367
Payables to affiliates	57		66
Borrowings from Exelon intercompany money pool	74		63
Customer deposits	116		113
Regulatory liabilities	87		69
Unamortized energy contract liabilities	5		5
Renewable energy credit obligations	86		217
Other	128		124
Total current liabilities	1,767		2,565
Long-term debt	9,249		8,834
Deferred credits and other liabilities
Deferred income taxes and unamortized investment tax credits	3,239		3,190
Regulatory liabilities	778		794
Asset retirement obligations	68		67
Non-pension postretirement benefit obligations	28		31
Unamortized energy contract liabilities	20		21
Other	464		473
Total deferred credits and other liabilities	4,597		4,576
Total liabilities	15,613		15,975
Commitments and contingencies
Member's equity
Membership interest	12,914		12,562
Undistributed losses	(178)		(240)
Total member's equity	12,736		12,322
Total liabilities and member's equity	$	28,349	$	28,297

See the Combined Notes to Consolidated Financial Statements

33

Table of Contents

Pepco Holdings LLC and Subsidiary Companies

Consolidated Statements of Changes in Member's Equity

(Unaudited)

	Three Months Ended March 31, 2025
(In millions)	Membership Interest		Undistributed (Losses)/Gains		Total Member's Equity
Balance at December 31, 2024	$	12,562	$	(240)	$	12,322
Net income	—		194		194
Distributions to member	—		(132)		(132)
Contributions from member	352		—		352
Balance at March 31, 2025	$	12,914	$	(178)	$	12,736

	Three Months Ended March 31, 2024
(In millions)	Membership Interest		Undistributed (Losses)/Gains		Total Member's Equity
Balance at December 31, 2023	$	12,057	$	(275)	$	11,782
Net income	—		168		168
Distributions to member	—		(118)		(118)
Contributions from member	487		—		487
Balance at March 31, 2024	$	12,544	$	(225)	$	12,319

See the Combined Notes to Consolidated Financial Statements

34

Table of Contents

Potomac Electric Power Company

Statements of Operations and Comprehensive Income

(Unaudited)

	Three Months Ended March 31,
(In millions)	2025		2024
Operating revenues
Electric operating revenues	$	855	728
Revenues from alternative revenue programs	2		29
Operating revenues from affiliates	2		2
Total operating revenues	859		759
Operating expenses
Purchased power	318		281
Operating and maintenance	96		86
Operating and maintenance from affiliates	63		64
Depreciation and amortization	105		107
Taxes other than income taxes	113		102
Total operating expenses	695		640
Loss on sale of assets	(1)		—
Operating income	163		119
Other income and (deductions)
Interest expense, net	(52)		(45)
Other, net	11		15
Total other income and (deductions)	(41)		(30)
Income before income taxes	122		89
Income taxes	25		14
Net income	$	97	$	75
Comprehensive income	$	97	$	75

See the Combined Notes to Consolidated Financial Statements

35

Table of Contents

Potomac Electric Power Company

Statements Of Cash Flows

(Unaudited)

	Three Months Ended March 31,
(In millions)	2025		2024
Cash flows from operating activities
Net income	$	97	$	75
Adjustments to reconcile net income to net cash flows provided by operating activities:
Depreciation and amortization	105		107
Deferred income taxes and amortization of investment tax credits	10		3
Loss on sales of assets	1		—
Other non-cash operating activities	12		(13)
Changes in assets and liabilities:
Accounts receivable	(14)		21
Receivables from and payables to affiliates, net	(2)		6
Inventories	(20)		(10)
Accounts payable and accrued expenses	(28)		—
Collateral received (paid), net	10		(1)
Income taxes	15		12
Regulatory assets and liabilities, net	13		6
Pension and non-pension postretirement benefit contributions	(4)		(4)
Other assets and liabilities	(3)		(19)
Net cash flows provided by operating activities	192		183
Cash flows from investing activities
Capital expenditures	(240)		(229)
Changes in PHI intercompany money pool	—		(134)
Net cash flows used in investing activities	(240)		(363)
Cash flows from financing activities
Changes in short-term borrowings	(200)		(132)
Issuance of long-term debt	200		675
Retirement of long-term debt	—		(400)
Dividends paid on common stock	(66)		(51)
Contributions from parent	157		251
Other financing activities	(5)		(15)
Net cash flows provided by financing activities	86		328
Increase in cash, restricted cash, and cash equivalents	38		148
Cash, restricted cash, and cash equivalents at beginning of period	51		72
Cash, restricted cash, and cash equivalents at end of period	$	89	$	220
Supplemental cash flow information
Decrease in capital expenditures not paid	$	(49)	$	(11)

See the Combined Notes to Consolidated Financial Statements

36

Table of Contents

Potomac Electric Power Company

Balance Sheets

(Unaudited)

(In millions)	March 31, 2025		December 31, 2024
ASSETS
Current assets
Cash and cash equivalents	$	58	$	30
Restricted cash and cash equivalents	31		21
Accounts receivable
Customer accounts receivable	404		395
Customer allowance for credit losses	(69)		(59)
Customer accounts receivable, net	335		336
Other accounts receivable	147		142
Other allowance for credit losses	(27)		(27)
Other accounts receivable, net	120		115
Receivables from affiliates	—		1
Inventories, net	189		169
Regulatory assets	136		157
Prepaid renewable energy credits	49		165
Other	37		55
Total current assets	955		1,049
Property, plant, and equipment (net of accumulated depreciation and amortization of $4,593 and $4,522 as of March 31, 2025 and December 31, 2024, respectively)	10,205		10,097
Deferred debits and other assets
Regulatory assets	442		446
Investments	136		135
Prepaid pension asset	216		222
Other	57		51
Total deferred debits and other assets	851		854
Total assets	$	12,011	$	12,000

See the Combined Notes to Consolidated Financial Statements

37

Table of Contents

Potomac Electric Power Company

Balance Sheets

(Unaudited)

(In millions)	March 31, 2025		December 31, 2024
LIABILITIES AND SHAREHOLDER'S EQUITY
Current liabilities
Short-term borrowings	$	—	$	200
Long-term debt due within one year	6		6
Accounts payable	303		360
Accrued expenses	192		201
Payables to affiliates	34		37
Customer deposits	57		55
Regulatory liabilities	16		17
Merger related obligation	21		22
Renewable energy credit obligations	50		169
Other	43		51
Total current liabilities	722		1,118
Long-term debt	4,553		4,356
Deferred credits and other liabilities
Deferred income taxes and unamortized investment tax credits	1,530		1,509
Regulatory liabilities	301		310
Asset retirement obligations	50		49
Other	232		223
Total deferred credits and other liabilities	2,113		2,091
Total liabilities	7,388		7,565
Commitments and contingencies
Shareholder's equity
Common stock	3,492		3,335
Retained earnings	1,131		1,100
Total shareholder's equity	4,623		4,435
Total liabilities and shareholder's equity	$	12,011	$	12,000

See the Combined Notes to Consolidated Financial Statements

38

Table of Contents

Potomac Electric Power Company

Statements Of Changes In Shareholder's Equity

(Unaudited)

	Three Months Ended March 31, 2025
(In millions)	Common Stock		Retained Earnings		Total Shareholder's Equity
Balance at December 31, 2024	$	3,335	$	1,100	$	4,435
Net income	—		97		97
Common stock dividends	—		(66)		(66)
Contributions from parent	157		—		157
Balance at March 31, 2025	$	3,492	$	1,131	$	4,623

	Three Months Ended March 31, 2024
(In millions)	Common Stock		Retained Earnings		Total Shareholder's Equity
Balance at December 31, 2023	$	3,075	$	1,069	$	4,144
Net income	—		75		75
Common stock dividends	—		(51)		(51)
Contributions from parent	251		—		251
Balance at March 31, 2024	$	3,326	$	1,093	$	4,419

See the Combined Notes to Consolidated Financial Statements

39

Table of Contents

Delmarva Power & Light Company

Statements of Operations and Comprehensive Income

(Unaudited)

	Three Months Ended March 31,
(In millions)	2025		2024
Operating revenues
Electric operating revenues	$	463	$	413
Natural gas operating revenues	88		72
Revenues from alternative revenue programs	(5)		4
Operating revenues from affiliates	2		2
Total operating revenues	548		491
Operating expenses
Purchased power	209		186
Purchased fuel	38		29
Operating and maintenance	60		51
Operating and maintenance from affiliates	46		44
Depreciation and amortization	63		61
Taxes other than income taxes	21		20
Total operating expenses	437		391
Operating income	111		100
Other income and (deductions)
Interest expense, net	(25)		(22)
Other, net	4		5
Total other income and (deductions)	(21)		(17)
Income before income taxes	90		83
Income taxes	21		17
Net income	$	69	$	66
Comprehensive income	$	69	$	66

See the Combined Notes to Consolidated Financial Statements

40

Table of Contents

Delmarva Power & Light Company

Statements Of Cash Flows

(Unaudited)

	Three Months Ended March 31,
(In millions)	2025		2024
Cash flows from operating activities
Net income	$	69	$	66
Adjustments to reconcile net income to net cash flows provided by operating activities:
Depreciation and amortization	63		61
Deferred income taxes and amortization of investment tax credits	9		6
Other non-cash operating activities	21		12
Changes in assets and liabilities:
Accounts receivable	(1)		(7)
Receivables from and payables to affiliates, net	(4)		—
Inventories	(4)		1
Accounts payable and accrued expenses	(9)		16
Collateral received, net	9		—
Income taxes	13		10
Regulatory assets and liabilities, net	2		(1)
Other assets and liabilities	7		6
Net cash flows provided by operating activities	175		170
Cash flows from investing activities
Capital expenditures	(156)		(134)
Changes in PHI intercompany money pool	(12)		—
Net cash flows used in investing activities	(168)		(134)
Cash flows from financing activities
Changes in short-term borrowings	(144)		(63)
Issuance of long-term debt	125		175
Dividends paid on common stock	(46)		(45)
Contributions from parent	99		154
Other financing activities	(3)		(3)
Net cash flows provided by financing activities	31		218
Increase in cash, restricted cash, and cash equivalents	38		254
Cash, restricted cash, and cash equivalents at beginning of period	23		16
Cash, restricted cash, and cash equivalents at end of period	$	61	$	270
Supplemental cash flow information
Decrease in capital expenditures not paid	$	(47)	$	(6)

    

See the Combined Notes to Consolidated Financial Statements

41

Table of Contents

Delmarva Power & Light Company

Balance Sheets

(Unaudited)

(In millions)	March 31, 2025		December 31, 2024
ASSETS
Current assets
Cash and cash equivalents	$	50	$	21
Restricted cash and cash equivalents	11		2
Accounts receivable
Customer accounts receivable	215		210
Customer allowance for credit losses	(23)		(17)
Customer accounts receivable, net	192		193
Other accounts receivable	53		63
Other allowance for credit losses	(9)		(9)
Other accounts receivable, net	44		54
Receivables from affiliates	1		—
Receivable from PHI intercompany pool	12		—
Inventories, net
Fossil fuel	2		6
Materials and supplies	103		95
Prepaid utility taxes	13		26
Regulatory assets	49		60
Prepaid renewable energy credits	9		29
Other	21		16
Total current assets	507		502
Property, plant, and equipment (net of accumulated depreciation and amortization of $2,121 and $2,075 as of March 31, 2025 and December 31, 2024, respectively)	5,595		5,540
Deferred debits and other assets
Regulatory assets	220		215
Prepaid pension asset	116		120
Other	46		44
Total deferred debits and other assets	382		379
Total assets	$	6,484	$	6,421

See the Combined Notes to Consolidated Financial Statements

42

Table of Contents

Delmarva Power & Light Company

Balance Sheets

(Unaudited)

(In millions)	March 31, 2025		December 31, 2024
LIABILITIES AND SHAREHOLDER'S EQUITY
Current liabilities
Short-term borrowings	$	—	$	144
Long-term debt due within one year	131		130
Accounts payable	131		187
Accrued expenses	65		55
Payables to affiliates	23		26
Customer deposits	34		34
Regulatory liabilities	46		42
Renewable energy credit obligations	37		48
Other	27		22
Total current liabilities	494		688
Long-term debt	2,215		2,090
Deferred credits and other liabilities
Deferred income taxes and unamortized investment tax credits	960		946
Regulatory liabilities	323		325
Asset retirement obligations	13		13
Non-pension postretirement benefit obligations	3		3
Other	112		114
Total deferred credits and other liabilities	1,411		1,401
Total liabilities	4,120		4,179
Commitments and contingencies
Shareholder's equity
Common stock	1,714		1,615
Retained earnings	650		627
Total shareholder's equity	2,364		2,242
Total liabilities and shareholder's equity	$	6,484	$	6,421

See the Combined Notes to Consolidated Financial Statements

43

Table of Contents

Delmarva Power & Light Company

Statements Of Changes In Shareholder's Equity

(Unaudited)

	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

	Three Months Ended March 31, 2024
(In millions)	Common Stock		Retained Earnings		Total Shareholder's Equity
Balance at December 31, 2023	$	1,455	$	638	$	2,093
Net income	—		66		66
Common stock dividends	—		(45)		(45)
Contributions from parent	154		—		154
Balance at March 31, 2024	$	1,609	$	659	$	2,268

See the Combined Notes to Consolidated Financial Statements

44

Table of Contents

Atlantic City Electric Company and Subsidiary Company

Consolidated Statements of Operations and Comprehensive Income

(Unaudited)

	Three Months Ended March 31,
(In millions)	2025		2024
Operating revenues
Electric operating revenues	$	372	$	344
Revenues from alternative revenue programs	—		13
Operating revenues from affiliates	1		1
Total operating revenues	373		358
Operating expenses
Purchased power	157		140
Operating and maintenance	51		47
Operating and maintenance from affiliates	39		40
Depreciation and amortization	64		74
Taxes other than income taxes	2		2
Total operating expenses	313		303
Operating income	60		55
Other income and (deductions)
Interest expense, net	(21)		(20)
Other, net	3		5
Total other income and (deductions)	(18)		(15)
Income before income taxes	42		40
Income taxes	11		11
Net income	$	31	$	29
Comprehensive income	$	31	$	29

See the Combined Notes to Consolidated Financial Statements

45

Table of Contents

Atlantic City Electric Company and Subsidiary Company

Statements Of Cash Flows

(Unaudited)

	Three Months Ended March 31,
(In millions)	2025		2024
Cash flows from operating activities
Net income	$	31	$	29
Adjustments to reconcile net income to net cash flows provided by operating activities:
Depreciation and amortization	64		74
Deferred income taxes and amortization of investment tax credits	8		7
Other non-cash operating activities	25		2
Changes in assets and liabilities:
Accounts receivable	21		(12)
Receivables from and payables to affiliates, net	(2)		(5)
Inventories	—		(3)
Accounts payable and accrued expenses	(8)		(1)
Collateral received, net	6		1
Income taxes	3		3
Regulatory assets and liabilities, net	(28)		(47)
Pension and non-pension postretirement benefit contributions	(3)		(7)
Other assets and liabilities	(5)		(13)
Net cash flows provided by operating activities	112		28
Cash flows from investing activities
Capital expenditures	(105)		(89)
Net cash flows used in investing activities	(105)		(89)
Cash flows from financing activities
Changes in short-term borrowings	(186)		(199)
Issuance of long-term debt	100		75
Changes in PHI intercompany money pool	12		134
Dividends paid on common stock	(20)		(22)
Contributions from parent	94		81
Other financing activities	(2)		(2)
Net cash flows (used in) provided by financing activities	(2)		67
Increase in cash and cash equivalents	5		6
Cash and cash equivalents at beginning of period	14		21
Cash and cash equivalents at end of period	$	19	$	27
Supplemental cash flow information
(Decrease) increase in capital expenditures not paid	$	(12)	$	4

See the Combined Notes to Consolidated Financial Statements

46

Table of Contents

Atlantic City Electric Company and Subsidiary Company

Consolidated Balance Sheets

(Unaudited)

(In millions)	March 31, 2025		December 31, 2024
ASSETS
Current assets
Cash and cash equivalents	$	18	$	14
Restricted cash and cash equivalents	1		—
Accounts receivable
Customer accounts receivable	196		223
Customer allowance for credit losses	(37)		(32)
Customer accounts receivable, net	159		191
Other accounts receivable	81		79
Other allowance for credit losses	(15)		(13)
Other accounts receivable, net	66		66
Receivables from affiliates	7		7
Inventories, net	62		62
Regulatory assets	107		101
Other	8		6
Total current assets	428		447
Property, plant, and equipment (net of accumulated depreciation and amortization of $1,839 and $1,798 as of March 31, 2025 and December 31, 2024, respectively)	4,407		4,366
Deferred debits and other assets
Regulatory assets	515		502
Prepaid pension asset	2		1
Other	35		33
Total deferred debits and other assets	552		536
Total assets	$	5,387	$	5,349

See the Combined Notes to Consolidated Financial Statements

47

Table of Contents

Atlantic City Electric Company and Subsidiary Company

Consolidated Balance Sheets

(Unaudited)

(In millions)	March 31, 2025		December 31, 2024
LIABILITIES AND SHAREHOLDER'S EQUITY
Current liabilities
Short-term borrowings	$	—	$	186
Long-term debt due within one year	154		154
Accounts payable	162		163
Accrued expenses	43		52
Payables to affiliates	20		22
Borrowings from PHI intercompany money pool	12		—
Customer deposits	24		24
Regulatory liabilities	25		10
Other	18		10
Total current liabilities	458		621
Long-term debt	1,879		1,779
Deferred credits and other liabilities
Deferred income taxes and unamortized investment tax credits	825		816
Regulatory liabilities	141		146
Other	54		62
Total deferred credits and other liabilities	1,020		1,024
Total liabilities	3,357		3,424
Commitments and contingencies
Shareholder's equity
Common stock	2,009		1,915
Retained earnings	21		10
Total shareholder's equity	2,030		1,925
Total liabilities and shareholder's equity	$	5,387	$	5,349

See the Combined Notes to Consolidated Financial Statements

48

Table of Contents

Atlantic City Electric Company and Subsidiary Company

Consolidated Statements Of Changes In Shareholder's Equity

(Unaudited)

	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

	Three Months Ended March 31, 2024
(In millions)	Common Stock		Retained (Deficit) Earnings		Total Shareholder's Equity
Balance at December 31, 2023	$	1,830	$	(18)	$	1,812
Net income	—		29		29
Common stock dividends	—		(22)		(22)
Contributions from parent	81		—		81
Balance at March 31, 2024	$	1,911	$	(11)	$	1,900

See the Combined Notes to Consolidated Financial Statements

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
	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

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 Registrant’s 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 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, 2025 and for the three months ended March 31, 2025 and 2024 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, 2024 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, 2025. 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

50

Combined Notes to Consolidated Financial Statements

(Dollars in millions, except per share data, unless otherwise noted)

Note 1 — Significant Accounting Policies

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, 2025: 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, 2025. 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.

Improvement to Income Tax Disclosures (Issued December 2023). Provides additional disclosure requirements related to the effective tax rate reconciliation and income taxes paid. Under the revised guidance for the effective tax reconciliations, entities would be required to disclose: (1) eight specific categories in the effective tax rate reconciliation in both percentages and reporting currency amount, (2) additional information for reconciling items over a certain threshold, (3) explanation of individual reconciling items disclosed, and (4) provide a qualitative description of the state and local jurisdictions that contribute to the majority of the state income tax expense. For each annual period presented, the new standard requires disclosure of the year-to-date amount of income taxes paid (net of refunds received) disaggregated by federal, state, and foreign. It also requires additional disaggregated information on income taxes paid (net of refunds received) to an individual jurisdiction equal to or greater than 5% of total income taxes paid (net of refunds received). The standard is effective for annual periods beginning January 1, 2025, with early adoption permitted.

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. The Registrants are currently assessing the impacts of this standard.

2. Regulatory Matters (All Registrants)

As discussed in Note 3 — Regulatory Matters of the 2024 Form 10-K, the Registrants are involved in rate and regulatory proceedings at FERC and their state commissions. The following discusses developments in 2025 and updates to the 2024 Form 10-K.

51

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 2025.

Completed Distribution Base Rate Case Proceedings

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(a)	Electric	$	1,487	$	1,045	8.905%	December 19, 2024	January 1, 2024
	April 26, 2024 (amended on September 11, 2024)(b)	Electric	$	624	$	623	9.89%	October 31, 2024	January 1, 2025
PECO - Pennsylvania	March 28, 2024	Electric(c)(d)	$	464	$	354	N/A(e)	December 12, 2024	January 1, 2025
		Natural Gas(d)	$	111	$	78
BGE - Maryland(f)	February 17, 2023	Electric	$	313	$	179	9.50%	December 14, 2023	January 1, 2024
		Natural Gas	$	289	$	229	9.45%
Pepco - District of Columbia(g)	April 13, 2023 (amended February 27, 2024)	Electric	$	186	$	123	9.50%	November 26, 2024	January 1, 2025
Pepco - Maryland(h)	May 16, 2023 (amended February 23, 2024)	Electric	$	111	$	45	9.50%	June 10, 2024	April 1, 2024
DPL - Maryland(i)	May 19, 2022	Electric	$	38	$	29	9.60%	December 14, 2022	January 1, 2023
DPL - Delaware(j)	December 15, 2022 (amended September 29, 2023)	Electric	$	39	$	28	9.60%	April 18, 2024	July 15, 2023
ACE - New Jersey(k)	February 15, 2023 (amended August 21, 2023)	Electric	$	92	$	45	9.60%	November 17, 2023	December 1, 2023

__________

(a)Reflects a four-year cumulative multi-year rate plan for January 1, 2024 to 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 March 20, 2025, ComEd filed its annual revenue balancing reconciliation for 2024. This reconciliation, which is a component of revenue decoupling, reflected a revenue reduction of $55 million, effective January 1, 2026. On April 29, 2025, ComEd filed its 2024 MRP Reconciliation reflecting a revenue increase of $268 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.

(b)On October 31, 2024, the Delivery Reconciliation Amount for 2023 defined in Rider Delivery Service Pricing Reconciliation (Rider DSPR) was approved. Rider DSPR allows for the reconciliation of the revenue requirement in effect in the final years in which formula rates are determined and until such time as new rates are established under ComEd's approved MRP. The 2024 order reconciled the delivery service rates in effect in 2023 with the actual delivery service costs incurred in 2023. The reconciliation revenue requirement provides for a weighted average debt and equity return on distribution rate base of 7.02%, inclusive of an allowed ROE of 9.89%, reflecting the monthly yields on 30-year treasury bonds plus 580 basis points.

52

Combined Notes to Consolidated Financial Statements — (Continued)

(Dollars in millions, except per share data, unless otherwise noted)

Note 2 — Regulatory Matters

(c)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.

(d)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.

(e)The PECO electric and natural gas base rate case proceedings were resolved through settlement agreements, which did not specify an approved ROE.

(f)Reflects a three-year cumulative multi-year plan for January 1, 2024 through December 31, 2026. The MDPSC awarded BGE electric revenue requirement increases of $41 million, $113 million, and $25 million in 2024, 2025, and 2026, respectively, and natural gas revenue requirement increases of $126 million, $62 million, and $41 million in 2024, 2025, and 2026, respectively. 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 will be recovered through separate electric and gas riders between March 2024 through February 2025. As such, the reconciliation amounts are not included in the approved revenue requirement 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.

(g)Reflects a two-year cumulative multi-year plan for 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.

(h)Reflects the amounts requested (before offsets) and awarded for a one-year multi-year plan for April 1, 2024 through March 31, 2025. The MDPSC awarded Pepco an electric incremental revenue requirement increase of $45 million for the 12-month period ending March 31, 2025. 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 $31 million for the 12-month period ended March 31, 2024, with supporting testimony and schedules.

(i)Reflects a three-year cumulative multi-year plan for January 1, 2023 through December 31, 2025. The MDPSC awarded DPL electric incremental revenue requirement increases of $17 million, $6 million, and $6 million for 2023, 2024, and 2025, respectively.

(j)On April 18, 2024, 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.

(k)Requested and approved increases are before New Jersey sales and use tax. The NJBPU awarded ACE electric revenue requirement increases of $36 million and $9 million effective December 1, 2023 and February 1, 2024, respectively.

Pending Distribution Base Rate Case Proceedings

Registrant/Jurisdiction	Filing Date	Service	Requested Revenue Requirement Increase		Requested ROE	Expected Approval Timing
DPL - Delaware(a)	September 20, 2024 (amended February 28, 2025)	Natural Gas	$	42	10.65%	First quarter of 2026
ACE - New Jersey(b)	November 21, 2024	Electric	109		10.70%	Fourth quarter of 2025

__________

(a)DPL implemented interim rates on April 20, 2025, subject to refund. Interim rates are not to exceed 10% of interstate operating revenues.

(b)Requested increases are before New Jersey sales and use tax. ACE intends to put rates into effect on August 21, 2025, subject to refund.

53

Combined Notes to Consolidated Financial Statements — (Continued)

(Dollars in millions, except per share data, unless otherwise noted)

Note 2 — Regulatory Matters

Transmission Formula Rates

The Utility Registrants' transmission rates are each established based on a FERC-approved formula. ComEd, BGE, Pepco, DPL, and ACE are required to file an annual update to the FERC-approved formula on or before May 15, and PECO is required to file on or before May 31, with the resulting rates effective on June 1 of the same year. The annual update for BGE is based on prior year actual costs and current year projected capital additions, accumulated depreciation, depreciation and amortization expense, and accumulated deferred income taxes. The update for BGE also reconciles any differences between the actual costs and actual revenues for the calendar year (annual reconciliation).

For 2025, the following increase was included in the Utility Registrant's electric transmission formula rate update:

Registrant(a)	Initial Revenue Requirement Increase		Annual Reconciliation Increase		Total Revenue Requirement Increase(b)			Allowed Return on Rate Base(c)		Allowed ROE(d)
BGE	$	21	$	21	$	35	(e)	7.53	%	10.50	%

__________

(a)All rates are effective June 1, 2025 - May 31, 2026, subject to review by interested parties pursuant to review protocols of BGE's tariffs.

(b)While the transmission filing reflects the tax benefit of NOLCs, 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.

(c)Represents the weighted average debt and equity return on transmission rate base.

(d)The rate of return on common equity for BGE includes a 50-basis-point incentive adder for being a member of an RTO.

(e)The increase in BGE's transmission revenue requirement includes a $7 million reduction related to a FERC-approved dedicated facilities charge to recover the costs of providing transmission service to specifically designated load by BGE.

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 (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 Grid Plan as non-compliant with certain requirements of CEJA and required ComEd to file a revised Grid Plan. In the absence of an approved Grid Plan, the ICC set ComEd’s forecast revenue requirements for 2024-2027 based on ComEd's approved year-end 2022 rate base. This resulted in a total cumulative revenue requirement increase of $501 million, a $986 million total revenue reduction from the requested cumulative revenue requirement increase but remained subject to annual reconciliation in accordance with CEJA. The final order approved the process and formulas associated with the MRP reconciliation mechanisms. The ICC's December 2023 order also denied ComEd's ability to earn a return on its pension asset.

54

Combined Notes to Consolidated Financial Statements — (Continued)

(Dollars in millions, except per share data, unless otherwise noted)

Note 2 — Regulatory Matters

On December 22, 2023, ComEd filed an application for rehearing on several findings in the final order including the use of the 2022 year-end rate base to establish forecast revenue requirements for 2024-2027, ROE, pension asset return, and capital structure. On January 10, 2024, ComEd’s application for rehearing was denied on all issues except for the order’s use of the 2022 year-end rate base. On April 18, 2024, the ICC issued its final order on rehearing, which approved the use of the forecasted year-end 2023 rate base that resulted in increased revenue requirements for 2024-2027. These revenue requirements determined during the rehearing process established base revenue requirements until the ICC approved the Refiled Grid Plan on December 19, 2024.

On January 10, 2024, ComEd filed an appeal in the Illinois Appellate Court of the issues on which rehearing was denied, 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 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 Grid Plan. On December 19, 2024, the ICC approved the Refiled 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.

In January 2022, ComEd filed a request with the ICC proposing performance metrics that would be used in determining ROE incentives and penalties in the event ComEd filed a MRP in January 2023. On September 27, 2022, the ICC issued a final order approving seven performance metrics that provide symmetrical performance adjustments of 32 total basis points to ComEd’s rate of return on common equity based on the extent to which ComEd achieves the annual performance goals. On November 10, 2022, the ICC granted ComEd's application for rehearing, in part. On April 5, 2023, the ICC issued its final order on rehearing for the performance and tracking metrics proceeding, in which the ICC declined to adopt ComEd's proposed modifications to the reliability and peak load reduction performance metrics.

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. The seller has not provided notification to ComEd or the IPA that any subsidies or tax credits, such as nuclear production tax credits that became available for electricity generated beginning January 1, 2024, have been monetized and the IPA did not adjust the CMC price paid by ComEd in 2024. 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 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 as of March 31, 2025 is $17 million.

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 in 2023 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.

Other Federal Regulatory Matters

55

Combined Notes to Consolidated Financial Statements — (Continued)

(Dollars in millions, except per share data, unless otherwise noted)

Note 2 — Regulatory Matters

FERC Audit (Exelon and ComEd). The Utility Registrants are subject to periodic audits and investigations by FERC. FERC’s Division of Audits and Accounting initiated a nonpublic audit of ComEd in April 2021 evaluating ComEd’s compliance with (1) approved terms, rates and conditions of its federally regulated service; (2) accounting requirements of the Uniform System of Accounts; (3) reporting requirements of the FERC Form 1; and (4) the requirements for record retention. The audit period extended back to January 1, 2017.

On July 27, 2023, FERC published a final audit report which included, among other things, findings and recommendations related to ComEd's methodology regarding the allocation of certain overhead costs to capitalized construction costs under FERC regulations, including a suggestion that refunds may be due to customers for amounts collected in previous years. ComEd responded to that report and on August 28, 2023, ComEd filed a formal notice of the issues it contested within the audit report. On December 14, 2023, FERC appointed a settlement judge for the contested overhead allocation findings and set the matter for a trial-type hearing. That hearing process was held in abeyance while a formal settlement process, which began in February 2024, took place.

On July 30, 2024, ComEd reached an agreement in principle on the contested overhead allocation finding. As a result of the settlement process, ComEd recorded a charge for the probable disallowance of $70 million of certain currently capitalized construction costs to operating expenses, which are not expected to be recovered in future rates. The existing loss estimate was reflected in Exelon and ComEd's financial statements as of December 31, 2024. ComEd and FERC staff jointly filed the settlement agreement with FERC for approval on February 11, 2025. The settlement was approved by FERC on April 4, 2025.

Regulatory Assets and Liabilities

The Utility Registrants' regulatory assets and liabilities have not changed materially since December 31, 2024, unless noted below. See Note 3 — Regulatory Matters of the 2024 Form 10-K for additional information on the specific regulatory assets and liabilities.

PECO. Regulatory assets increased $61 million primarily due to an increase of $71 million in the Deferred Income Taxes regulatory asset. Regulatory liabilities increased $93 million primarily due to an increase of $64 million in the Decommissioning the Regulatory Agreement Units and an increase of $32 million in the Electric energy and natural gas costs regulatory liabilities.

ACE. Regulatory liabilities increased $10 million primarily due to an increase of $8 million in the Transmission formula rate annual reconciliations regulatory liability.

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, 2025 and December 31, 2024.

	Exelon		ComEd(a)		BGE(b)		PHI		Pepco(c)		DPL(d)		ACE(e)
March 31, 2025	$	87	$	38	$	9	$	40	$	24	$	1	$	15
December 31, 2024	117		46		16		55		40		1		14

__________

(a)Reflects ComEd's unrecognized equity returns earned for ratemaking purposes on its electric distribution rates and formula rates regulatory assets.

(b)BGE's amount capitalized for ratemaking purposes primarily relates to earnings on shareholders' investment on AMI programs and 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.

56

Combined Notes to Consolidated Financial Statements — (Continued)

(Dollars in millions, except per share data, unless otherwise noted)

Note 3 — Revenue from Contracts with Customers

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 4 — Revenue from Contracts with Customers of the 2024 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 4 — Revenue from Contracts with Customers of the 2024 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, 2025 and 2024. At March 31, 2025 and December 31, 2024, ComEd's, PECO's, and BGE's contract liabilities were immaterial.

	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
	Exelon(a)		PHI(a)		Pepco(a)		DPL		ACE
Balance at December 31, 2023	$	133	$	133	$	107	$	13	$	13
Revenues recognized	(2)		(2)		(2)		—		—
Balance at March 31, 2024	$	131	$	131	$	105	$	13	$	13

__________

(a)Revenues recognized in the three months ended March 31, 2025 and 2024, were included in the contract liabilities at December 31, 2024 and 2023, 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, 2025. 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.

57

Combined Notes to Consolidated Financial Statements — (Continued)

(Dollars in millions, except per share data, unless otherwise noted)

Note 3 — Revenue from Contracts with Customers

Year	Exelon		PHI		Pepco		DPL		ACE
2025	$	4	$	4	$	4	$	—	$	—
2026	6		6		5		1		—
2027	5		5		5		—		—
2028	5		5		5		—		—
2029 and thereafter	106		106		81		12		13
Total	$	126	$	126	$	100	$	13	$	13

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.

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, 2025 and 2024 is as follows:

	ComEd		PECO		BGE		PHI		Other(a)		Intersegment Eliminations		Exelon
Operating revenues(b):
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
2024
Electric revenues	$	2,095	$	782	$	881	$	1,532	$	—	$	(6)	$	5,284
Natural gas revenues	—		272		416		72		—		(1)		759
Shared service and other revenues	—		—		—		2		459		(461)		—
Total operating revenues	$	2,095	$	1,054	$	1,297	$	1,606	$	459	$	(468)	$	6,043
Less:
Purchased power
2025	$	689	$	361	$	450	$	684	$	—	$	—	$	2,184
2024	907		306		377		607		—		—		2,197
Purchased fuel
2025	$	—	$	141	$	159	$	38	$	—	$	—	$	338
2024	—		97		87		29		—		—		213

58

Combined Notes to Consolidated Financial Statements — (Continued)

(Dollars in millions, except per share data, unless otherwise noted)

Note 4 — Segment Information

	ComEd		PECO		BGE		PHI		Other(a)		Intersegment Eliminations		Exelon
Operating and maintenance
2025	$	323	$	266	$	242	$	296	$	429	$	(209)	$	1,347
2024	318		235		205		274		438		(199)		1,271
Operating and maintenance from affiliates
2025	$	100	$	61	$	63	$	53	$	11	$	(288)	$	—
2024	100		58		59		51		9		(277)		—
Depreciation and amortization
2025	$	380	$	109	$	164	$	234	$	16	$	—	$	903
2024	362		104		150		246		17		—		879
Taxes other than income taxes
2025	$	99	$	60	$	96	$	140	$	10	$	—	$	405
2024	94		51		89		128		9		—		371
(Gain) loss on sale of assets
2025	$	—	$	—	$	—	$	1	$	—	$	—	$	1
2024	—		(2)		—		—		—		—		(2)
Interest expense, net(c)
2025	$	125	$	59	$	58	$	99	$	163	$	—	$	504
2024	119		52		50		90		151		—		462
Interest expense from affiliates, net(c)
2025	$	3	$	4	$	—	$	1	$	(1)	$	(1)	$	6
2024	3		3		—		—		—		—		6
Other, net
2025	$	(21)	$	(8)	$	(9)	$	(19)	$	(11)	$	16	$	(52)
2024	(20)		(9)		(8)		(27)		(19)		8		(75)
Income taxes
2025	$	65	$	14	$	71	$	57	$	(37)	$	—	$	170
2024	19		10		24		40		(30)		—		63
Net income (loss) attributable to common shareholders
2025	$	302	$	266	$	260	$	194	$	(114)	$	—	$	908
2024	193		149		264		168		(116)		—		658
Supplemental segment information
Intersegment revenues(d)
2025	$	8	$	3	$	2	$	2	$	463	$	(478)	$	—
2024	2		2		2		3		457		(466)		—
Capital expenditures
2025	$	590	$	424	$	406	$	513	$	13	$	—	$	1,946
2024	594		361		324		453		35		—		1,767
Total assets
March 31, 2025	$	45,199	$	17,789	$	15,677	$	28,349	$	6,530	$	(4,060)	$	109,484
December 31, 2024	44,750		17,123		15,542		28,297		6,012		(3,940)		107,784

__________

(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.

59

Combined Notes to Consolidated Financial Statements — (Continued)

(Dollars in millions, except per share data, unless otherwise noted)

Note 4 — Segment Information

(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):
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
2024
Electric revenues	$	759	$	419	$	358	$	—	$	(4)	$	1,532
Natural gas revenues	—		72		—		—		—		72
Shared service and other revenues	—		—		—		109		(107)		2
Total operating revenues	$	759	$	491	$	358	$	109	$	(111)	$	1,606
Less:
Purchased power
2025	$	318	$	209	$	157	$	—	$	—	$	684
2024	281		186		140		—		—		607
Purchased fuel
2025	$	—	$	38	$	—	$	—	$	—	$	38
2024	—		29		—		—		—		29
Operating and maintenance
2025	$	96	$	60	$	51	$	89	$	—	$	296
2024	86		51		47		90		—		274
Operating and maintenance from affiliates
2025	$	63	$	46	$	39	$	13	$	(108)	$	53
2024	64		44		40		14		(111)		51
Depreciation and amortization
2025	$	105	$	63	$	64	$	2	$	—	$	234
2024	107		61		74		4		—		246
Taxes other than income taxes
2025	$	113	$	21	$	2	$	4	$	—	$	140
2024	102		20		2		4		—		128
Loss on sale of assets
2025	$	1	$	—	$	—	$	—	$	—	$	1
2024	—		—		—		—		—		—
Interest expense, net(c)
2025	$	52	$	25	$	21	$	1	$	—	$	99
2024	45		22		20		3		—		90
Interest expense to affiliates, net(c)
2025	$	—	$	—	$	—	$	1	$	—	$	1
2024	—		—		—		—		—		—
Other, net
2025	$	(11)	$	(4)	$	(3)	$	(1)	$	—	$	(19)
2024	(15)		(5)		(5)		(2)		—		(27)

60

Combined Notes to Consolidated Financial Statements — (Continued)

(Dollars in millions, except per share data, unless otherwise noted)

Note 4 — Segment Information

Income taxes
2025	$	25	$	21	$	11	$	—	$	—	$	57
2024	14		17		11		(2)		—		40
Net income (loss) attributable to common shareholders
2025	$	97	$	69	$	31	$	(3)	$	—	$	194
2024	75		66		29		(2)		—		168
Supplemental segment information
Intersegment revenues(d)
2025	$	2	$	2	$	1	$	106	$	(109)	$	2
2024	2		2		1		109		(111)		3
Capital expenditures
2025	$	240	$	156	$	105	$	12	$	—	$	513
2024	229		134		89		1		—		453
Total assets
March 31, 2025	$	12,011	$	6,484	$	5,387	$	4,521	$	(54)	$	28,349
December 31, 2024	12,000		6,421		5,349		4,567		(40)		28,297

__________

(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.

61

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

62

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, 2024
Revenues from contracts with customers	ComEd		PECO		BGE		PHI		Pepco		DPL		ACE
Electric revenues
Residential	$	918	$	520	$	534	$	775	$	345	$	256	$	174
Small commercial & industrial	594		126		90		158		46		62		50
Large commercial & industrial	320		57		132		340		262		29		49
Public authorities & electric railroads	17		7		7		20		11		4		5
Other(a)	227		74		93		192		64		63		67
Total electric revenues(b)	$	2,076	$	784	$	856	$	1,485	$	728	$	414	$	345
Natural gas revenues
Residential	$	—	$	193	$	271	$	46	$	—	$	46	$	—
Small commercial & industrial	—		64		47		17		—		17		—
Large commercial & industrial	—		—		72		2		—		2		—
Transportation	—		8		—		5		—		5		—
Other(c)	—		7		5		2		—		2		—
Total natural gas revenues(d)	$	—	$	272	$	395	$	72	$	—	$	72	$	—
Total revenues from contracts with customers	$	2,076	$	1,056	$	1,251	$	1,557	$	728	$	486	$	345
Other revenues
Revenues from alternative revenue programs	$	19	$	(2)	$	43	$	46	$	29	$	4	$	13
Other electric revenues(e)	—		—		2		3		2		1		—
Other natural gas revenues(e)	—		—		1		—		—		—		—
Total other revenues	$	19	$	(2)	$	46	$	49	$	31	$	5	$	13
Total revenues for reportable segments	$	2,095	$	1,054	$	1,297	$	1,606	$	759	$	491	$	358

__________

(a)Includes transmission revenue from PJM, wholesale electric revenue, and mutual assistance revenue.

(b)Includes operating revenues from affiliates in 2025 and 2024 respectively of:

•$8 million, $2 million at ComEd

•$2 million, $2 million at PECO

•$1 million, $1 million at BGE

•$2 million, $3 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 2025 and 2024 respectively of:

•$1 million, less than $1 million at PECO

•$1 million, $1 million at BGE

(e)Includes late payment charge revenues.

63

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, 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(a)	133		33		41		23		36		17		10		9
Less: Write-offs(b), net of recoveries(c)	53		17		14		7		15		7		4		4
Balance at March 31, 2025	$	486	$	125	$	160	$	72	$	129	$	69	$	23	$	37
	Three Months Ended March 31, 2024
	Exelon		ComEd		PECO		BGE		PHI		Pepco		DPL		ACE
Balance at December 31, 2023	$	317	$	69	$	95	$	46	$	107	$	52	$	19	$	36
Plus: Current period provision for expected credit losses	79		22		23		15		19		12		3		4
Less: Write-offs, net of recoveries	50		9		11		9		21		12		5		4
Balance at March 31, 2024	$	346	$	82	$	107	$	52	$	105	$	52	$	17	$	36

_________

(a)For ComEd, PECO, BGE, Pepco, DPL, and ACE, the increase is primarily a result of increased receivable balances.

(b)For Pepco, the decrease is primarily attributable to favorable customer payment behavior.

(c)Recoveries were not material to the Registrants.

The following tables present the rollforward of Allowance for Credit Losses on Other Accounts Receivable.

	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(a)	15		2		9		1		3		—		—		3
Less: Write-offs(b), net of recoveries(c)	9		2		5		1		1		—		—		1
Balance at March 31, 2025	$	113	$	34	$	22	$	6	$	51	$	27	$	9	$	15
	Three Months Ended March 31, 2024
	Exelon		ComEd		PECO		BGE		PHI		Pepco		DPL		ACE
Balance at December 31, 2023	$	82	$	17	$	8	$	7	$	50	$	28	$	8	$	14
Plus: Current period provision for expected credit losses	18		3		5		2		8		7		—		1
Less: Write-offs, net of recoveries	4		1		—		2		1		—		—		1
Balance at March 31, 2024	$	96	$	19	$	13	$	7	$	57	$	35	$	8	$	14

_________

(a)For Pepco, the decrease is primarily a result of changes in customer risk profile.

(b)For PECO, the increase is primarily a result of increased terminations.

(c)Recoveries were not material to the Registrants.

64

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, 2025 and December 31, 2024.

	Unbilled customer revenues(a)
	Exelon		ComEd		PECO		BGE		PHI		Pepco		DPL		ACE
March 31, 2025	$	961	$	366	$	235	$	171	$	189	$	95	$	51	$	43
December 31, 2024	1,114		335		254		257		268		121		76		71

__________

(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, 2025 and 2024, 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, 2025	$	1,138	$	253	$	334	$	225	$	326	$	201	$	68	$	57
Three months ended March 31, 2024	1,060		235		297		219		309		194		60		55

65

Combined Notes to Consolidated Financial Statements — (Continued)

(Dollars in millions, except per share data, unless otherwise noted)

Note 6 — Income Taxes

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, 2025(a)
	Exelon		ComEd(b)		PECO(c)		BGE		PHI		Pepco		DPL		ACE
U.S. Federal statutory rate	21.0	%	21.0	%	21.0	%	21.0	%	21.0	%	21.0	%	21.0	%	21.0	%
Increase (decrease) due to:
State income taxes, net of federal income tax benefit	5.1		7.6		(3.5)		6.2		6.5		6.4		6.4		7.0
Plant basis differences	(3.8)		(1.0)		(11.1)		(1.5)		(0.7)		(1.0)		(0.5)		(0.3)
Excess deferred tax amortization	(6.5)		(9.4)		(1.6)		(4.1)		(3.9)		(5.3)		(3.3)		(1.4)
Amortization of investment tax credit, including deferred taxes on basis difference	—		(0.1)		—		—		—		—		(0.1)		(0.1)
Tax credits	(0.5)		(0.7)		—		(0.3)		(0.3)		(0.3)		(0.3)		(0.3)
Other	0.5		0.3		0.2		0.2		0.1		(0.3)		0.1		0.3
Effective income tax rate	15.8	%	17.7	%	5.0	%	21.5	%	22.7	%	20.5	%	23.3	%	26.2	%

	Three Months Ended March 31, 2024(a)
	Exelon		ComEd(d)		PECO(c)		BGE(d)		PHI		Pepco		DPL		ACE
U.S. Federal statutory rate	21.0	%	21.0	%	21.0	%	21.0	%	21.0	%	21.0	%	21.0	%	21.0	%
Increase (decrease) due to:
State income taxes, net of federal income tax benefit	6.4		7.8		(0.6)		6.3		6.4		6.2		6.2		7.1
Plant basis differences	(3.8)		(0.9)		(12.2)		(1.2)		(0.9)		(1.3)		(1.1)		0.1
Excess deferred tax amortization	(14.7)		(18.9)		(2.3)		(17.5)		(6.8)		(9.9)		(5.4)		(1.3)
Amortization of investment tax credit, including deferred taxes on basis difference	(0.1)		(0.1)		—		—		(0.1)		—		(0.1)		(0.1)
Tax credits	(0.4)		(0.3)		—		(0.4)		(0.3)		(0.3)		(0.3)		(0.3)
Other	0.3		0.4		0.4		0.1		(0.1)		—		0.2		1.0
Effective income tax rate	8.7	%	9.0	%	6.3	%	8.3	%	19.2	%	15.7	%	20.5	%	27.5	%

__________

(a)Positive percentages represent income tax expense. Negative percentages represent income tax benefit.

(b)For ComEd, the lower effective tax rate is primarily due to CEJA which resulted in the acceleration of certain income tax benefits.

(c)For PECO, the lower effective tax rate is primarily related to 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. For BGE, the lower effective tax rate is primarily due to the Maryland multi-year plan which resulted in the acceleration of certain income tax benefits.

66

Combined Notes to Consolidated Financial Statements — (Continued)

(Dollars in millions, except per share data, unless otherwise noted)

Note 6 — Income Taxes

Unrecognized Tax Benefits

Exelon, PHI and DPL have the following unrecognized tax benefits at March 31, 2025 and December 31, 2024. ComEd's, PECO's, BGE's, Pepco's, and ACE's amounts are not material.

	Exelon(a)		PHI		DPL
March 31, 2025	$	100	$	51	$	15
December 31, 2024	96		48		12

__________

(a)At March 31, 2025 and December 31, 2024, Exelon's unrecognized tax benefits is inclusive of $31 million related to Constellation's share of unrecognized tax benefits for periods prior to the separation. Exelon reflected an offsetting receivable of $31 million in Other deferred debits and other assets in the Consolidated Balance Sheet for these amounts.

Other Tax Matters

Tax Matters Agreement (Exelon)

In connection with the separation, Exelon entered into a TMA with Constellation. 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 existing Exelon tax sharing agreement. At March 31, 2025, 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 existing Exelon tax sharing agreement. At March 31, 2025, there is no balance due to or from Constellation.

Tax Attributes. At the date of separation certain tax attributes, primarily pre-closing tax credit carryforwards, that were generated by Constellation were required by law to be allocated to Exelon. The TMA also provides that Exelon will reimburse Constellation when those allocated tax attribute carryforwards are utilized. At March 31, 2025, Exelon recorded a payable of $141 million and $198 million in Other current liabilities and Other deferred credits 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 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.

Beginning in 2023, based on the existing statute, Exelon and each of the Utility Registrants will be subject to and will report the CAMT on a separate Registrant basis in the Consolidated Statements of Operations and Comprehensive Income and the Consolidated Balance Sheets. The deferred tax asset related to the minimum tax credit carryforward will be realized to the extent Exelon’s consolidated deferred tax liabilities exceed the minimum tax credit carryforward. Exelon’s deferred tax liabilities are expected to exceed the minimum tax credit carryforward for the foreseeable future and thus no valuation allowance is required.

On September 12, 2024, the U.S. Treasury issued proposed regulations providing further guidance addressing the implementation of CAMT. The proposed regulations are consistent with Exelon’s prior interpretation and therefore there are no financial statement impacts. Exelon will continue to monitor and assess the potential financial statement impacts of final regulations or other guidance when issued.

67

Combined Notes to Consolidated Financial Statements — (Continued)

(Dollars in millions, except per share data, unless otherwise noted)

Note 6 — Income Taxes

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 2025 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 5.68%. The majority of the 2025 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 5.64%.

During the first quarter of 2025, Exelon received an updated valuation of its pension and OPEB to reflect actual census data as of January 1, 2025. This valuation resulted in an increase to the pension obligation of $1 million and an increase to the OPEB obligation and asset of $6 million and $2 million, respectively. Additionally, AOCI decreased by $5 million (after-tax) and regulatory assets increased by $8 million and liabilities decreased by $3 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, 2025 and 2024.

	Pension Benefits				OPEB
	Three Months Ended March 31,				Three Months Ended March 31,
	2025		2024		2025		2024
Components of net periodic benefit cost
Service cost	$	38	$	42	$	6	$	7
Interest cost	146		141		25		24
Expected return on assets	(178)		(184)		(21)		(21)
Amortization of:
Prior service cost (credit)	1		1		(2)		(2)
Actuarial loss	53		53		—		—
Net periodic benefit cost	$	60	$	53	$	8	$	8

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.

68

Combined Notes to Consolidated Financial Statements — (Continued)

(Dollars in millions, except per share data, unless otherwise noted)

Note 7 — Retirement Benefits

	Three Months Ended March 31,
Pension and OPEB Costs	2025		2024
Exelon	$	68	$	61
ComEd	21		17
PECO	2		—
BGE	16		15
PHI	25		23
Pepco	8		9
DPL	4		4
ACE	3		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, 2025 and 2024.

	Three Months Ended March 31,
Savings Plan Employer Contributions	2025		2024
Exelon	$	26	$	22
ComEd	10		10
PECO	4		3
BGE	3		3
PHI	5		2
Pepco	1		1
DPL	1		1
ACE	1		—

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

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

69

Combined Notes to Consolidated Financial Statements — (Continued)

(Dollars in millions, except per share data, unless otherwise noted)

Note 8 — Derivative Financial Instruments

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 3 — Regulatory Matters of the 2024 Form 10-K for additional information.

(b)The fair value of the DPL economic hedge is not material at March 31, 2025 and December 31, 2024.

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, 2025 would result in an immaterial impact to Exelon's Consolidated Net Income.

70

Combined Notes to Consolidated Financial Statements — (Continued)

(Dollars in millions, except per share data, unless otherwise noted)

Note 8 — Derivative Financial Instruments

Below is a summary of the interest rate hedge balances at March 31, 2025 and December 31, 2024.

	Derivatives Designated as Hedging Instruments
	March 31, 2025		December 31, 2024
Other current assets	$	—	$	14
Other deferred debits (noncurrent assets)	4		12
Total derivative assets	4		26
Mark-to-market derivative liabilities (current liabilities)	—		(1)
Mark-to-market derivative liabilities (noncurrent liabilities)	(4)		—
Total mark-to-market derivative liabilities	(4)		(1)
Total mark-to-market derivative net assets	$	—	$	25

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.

In February 2025, Exelon terminated the previously issued floating-to-fixed swaps with a total notional of $765 million upon issuance of $1 billion of debt. See Note 9 – Debt and Credit Agreements for additional information on the debt issuance. The settlements resulted in a cash receipt of $16 million. The accumulated AOCI gain of $13 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. The following table provides the notional amounts outstanding held by Exelon at March 31, 2025 and December 31, 2024.

	March 31, 2025		December 31, 2024
5-year maturity floating-to-fixed swaps	$	275	$	657
10-year maturity floating-to-fixed swaps	275		658
Total	$	550	$	1,315

The related AOCI derivative loss for the three months ended March 31, 2025 was $9 million (net of tax). The related AOCI derivative gain for the three months ended March 31, 2024 was immaterial. See Note 13 – Changes in Accumulated Other Comprehensive Income (Loss) for additional information.

Credit Risk

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 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, 2025. 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, as of March 31, 2025 and December 31, 2024:

71

Combined Notes to Consolidated Financial Statements — (Continued)

(Dollars in millions, except per share data, unless otherwise noted)

Note 8 — Derivative Financial Instruments

	March 31, 2025		December 31, 2024
Exelon	$	225	$	181
ComEd	181		176
PECO(a)	12		—
BGE	1		1
PHI	31		4
Pepco	11		1
DPL	11		2
ACE(a)	6		—

__________

(a)PECO and ACE had less than one million in cash collateral held from external parties at December 31, 2024.

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. As of March 31, 2025, 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, 2025, they could have been required to post collateral to their counterparties of $45 million, $51 million, and $15 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, 2025 and December 31, 2024.

	Outstanding Commercial Paper at				Average Interest Rate on Commercial Paper Borrowings at
Commercial Paper Issuer	March 31, 2025		December 31, 2024		March 31, 2025		December 31, 2024
Exelon(a)	$	584	$	1,359	4.62	%	4.66	%
ComEd	$	347	$	36	4.61	%	4.55	%
PECO	$	—	$	192	—	%	4.65	%
BGE	$	237	$	175	4.63	%	4.61	%
PHI(b)	$	—	$	530	—	%	4.70	%
Pepco	$	—	$	200	—	%	4.69	%
DPL	$	—	$	144	—	%	4.74	%
ACE	$	—	$	186	—	%	4.67	%

__________

(a)Exelon Corporate had no outstanding commercial paper borrowings at March 31, 2025 and $426 million in outstanding commercial paper borrowings at December 31, 2024.

(b)Represents the consolidated amounts of Pepco, DPL, and ACE.

72

Combined Notes to Consolidated Financial Statements — (Continued)

(Dollars in millions, except per share data, unless otherwise noted)

Note 9 — Debt and Credit Agreements

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, 2025.

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. These facilities expire on October 3, 2025.

See Note 16 — Debt and Credit Agreements of the 2024 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. Pursuant to the loan agreements, loans made thereunder bear interest at a variable rate equal to SOFR plus 1.00% and all indebtedness thereunder is unsecured. The loan agreements are reflected in Exelon's Consolidated Balance Sheets within Short-term borrowings.

73

Combined Notes to Consolidated Financial Statements — (Continued)

(Dollars in millions, except per share data, unless otherwise noted)

Note 9 — Debt and Credit Agreements

Long-Term Debt

Issuance of Long-Term Debt

During the three months ended March 31, 2025, the following long-term debt was issued:

Company	Type	Interest Rate	Maturity	Amount	Use of Proceeds
Exelon	Junior Subordinated Notes(a)	6.50%	March 15, 2055	$1,000	Repay outstanding commercial paper obligations, and for general corporate purposes.
Exelon	Notes	5.125%	March 15, 2031	$500	Repay outstanding commercial paper obligations, and for general corporate purposes.
Exelon	Notes	5.875%	March 15, 2055	$500	Repay outstanding commercial paper obligations, and for general corporate purposes.
Pepco(b)	First Mortgage Bonds	5.48%	March 26, 2040	$200	Repay existing indebtedness and for general corporate purposes.
DPL	First Mortgage Bonds	5.28%	March 26, 2035	$125	Repay existing indebtedness and for general corporate purposes.
ACE(c)	First Mortgage Bonds	5.28%	March 26, 2035	$100	Repay existing indebtedness and for general corporate purposes.

__________

(a)The Junior Subordinated Notes bear interest at 6.50% per annum, commencing February 19, 2025 to, but excluding March 15, 2035. Thereafter, the interest rate resets every five years on March 15 and will be set at a rate per annum equal to the Five-year U.S. Treasury Rate plus a spread of 1.975%.

(b)On March 26, 2025, Pepco entered into a purchase agreement of First Mortgage Bonds of $75 million at 5.78% due on September 17, 2055. The closing date of the issuance is expected to occur in September 2025.

(c)On March 26, 2025, ACE entered into a purchase agreement of First Mortgage Bonds of $75 million and $75 million at 5.54% and 5.81% due on November 19, 2040 and November 19, 2055, respectively. The closing date of the issuance is expected to occur in November 2025.

Debt Covenants

As of March 31, 2025, 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 17 — Fair Value of Financial Assets and Liabilities of the 2024 Form 10-K.

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, 2025 and December 31, 2024. 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, 2025										December 31, 2024
	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	$	46,796	$	—	$	37,601	$	4,159	$	41,760	$	44,400	$	—	$	35,337	$	3,720	$	39,057
ComEd	12,031		—		10,330		—		10,330		12,030		—		10,260		—		10,260
PECO	5,704		—		4,827		—		4,827		5,704		—		4,816		—		4,816
BGE	5,396		—		4,726		—		4,726		5,395		—		4,702		—		4,702
PHI	9,541		—		4,145		4,159		8,304		9,124		—		4,093		3,720		7,813
Pepco	4,559		—		2,499		1,750		4,249		4,362		—		2,475		1,544		4,019
DPL	2,346		—		641		1,378		2,019		2,220		—		623		1,250		1,873
ACE	2,033		—		793		1,031		1,824		1,933		—		787		925		1,712
Long-Term Debt to Financing Trusts
Exelon	$	390	$	—	$	—	$	393	$	393	$	390	$	—	$	—	$	396	$	396
ComEd	206		—		—		206		206		206		—		—		208		208
PECO	184		—		—		187		187		184		—		—		188		188

__________

(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 16 — Debt and Credit Agreements of the 2024 Form 10-K for unamortized debt issuance costs, unamortized debt discount and premium, net, and purchase accounting fair value adjustments and Note 10 — Leases of the 2024 Form 10-K for finance lease 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, 2025 and December 31, 2024. Exelon and the Utility Registrants have immaterial and no financial assets or liabilities measured using the NAV practical expedient, respectively:

Exelon

	At March 31, 2025								At December 31, 2024
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets
Cash equivalents(a)	$	1,190	$	—	$	—	$	1,190	$	544	$	—	$	—	$	544
Rabbi trust investments
Cash equivalents	95		—		—		95		94		—		—		94
Mutual funds	63		—		—		63		65		—		—		65
Fixed income	—		6		—		6		—		6		—		6
Life insurance contracts	—		72		22		94		—		73		22		95
Rabbi trust investments subtotal	158		78		22		258		159		79		22		260
Interest rate derivative assets
Derivatives designated as hedging instruments	—		4		—		4		—		26		—		26
Economic hedges	—		—		—		—		—		—		—		—
Interest rate derivative assets subtotal	—		4		—		4		—		26		—		26
Total assets	1,348		82		22		1,452		703		105		22		830
Liabilities
Commodity derivative liabilities	—		—		(151)		(151)		—		—		(132)		(132)
Interest rate derivative liabilities
Derivatives designated as hedging instruments	—		(4)		—		(4)		—		(1)		—		(1)
Economic hedges	—		—		—		—		—		—		—		—
Interest rate derivative liabilities subtotal	—		(4)		—		(4)		—		(1)		—		(1)
Deferred compensation obligation	—		(69)		—		(69)		—		(74)		—		(74)
Total liabilities	—		(73)		(151)		(224)		—		(75)		(132)		(207)
Total net assets (liabilities)	$	1,348	$	9	$	(129)	$	1,228	$	703	$	30	$	(110)	$	623

__________    

(a)Exelon excludes cash of $210 million and $219 million at March 31, 2025 and December 31, 2024, respectively, and restricted cash of $182 million and $176 million at March 31, 2025 and December 31, 2024, respectively, and includes long-term restricted cash of zero and $41 million at March 31, 2025 and December 31, 2024, respectively, which is reported in Other deferred debits and other assets in the Consolidated Balance Sheets.

ComEd, PECO, and BGE

	ComEd								PECO								BGE
At March 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)	$	345	$	—	$	—	$	345	$	2	$	—	$	—	$	2	$	3	$	—	$	—	$	3
Rabbi trust investments
Mutual funds	—		—		—		—		11		—		—		11		10		—		—		10
Life insurance contracts	—		—		—		—		—		21		—		21		—		—		—		—
Rabbi trust investments subtotal	—		—		—		—		11		21		—		32		10		—		—		10
Total assets	345		—		—		345		13		21		—		34		13		—		—		13
Liabilities
Commodity derivative liabilities(b)	—		—		(151)		(151)		—		—		—		—		—		—		—		—
Deferred compensation obligation	—		(8)		—		(8)		—		(7)		—		(7)		—		(4)		—		(4)
Total liabilities	—		(8)		(151)		(159)		—		(7)		—		(7)		—		(4)		—		(4)
Total net assets (liabilities)	$	345	$	(8)	$	(151)	$	186	$	13	$	14	$	—	$	27	$	13	$	(4)	$	—	$	9

	ComEd								PECO								BGE
At December 31, 2024	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)	$	390	$	—	$	—	$	390	$	29	$	—	$	—	$	29	$	1	$	—	$	—	$	1
Rabbi trust investments
Mutual funds	—		—		—		—		12		—		—		12		10		—		—		10
Life insurance contracts	—		—		—		—		—		22		—		22		—		—		—		—
Rabbi trust investments subtotal	—		—		—		—		12		22		—		34		10		—		—		10
Total assets	390		—		—		390		41		22		—		63		11		—		—		11
Liabilities
Commodity derivative liabilities(b)	—		—		(132)		(132)		—		—		—		—		—		—		—		—
Deferred compensation obligation	—		(8)		—		(8)		—		(7)		—		(7)		—		(4)		—		(4)
Total liabilities	—		(8)		(132)		(140)		—		(7)		—		(7)		—		(4)		—		(4)
Total net assets (liabilities)	$	390	$	(8)	$	(132)	$	250	$	41	$	15	$	—	$	56	$	11	$	(4)	$	—	$	7

__________

(a)ComEd excludes cash of $71 million and $66 million at March 31, 2025 and December 31, 2024, respectively, and restricted cash of $181 million and $176 million at March 31, 2025 and December 31, 2024, respectively. Additionally, ComEd includes long-term restricted cash of zero and $41 million at March 31, 2025 and December 31, 2024, respectively, which is reported in Other deferred debits and other assets in the Consolidated Balance Sheets. PECO

excludes cash of $52 million and $19 million at March 31, 2025 and December 31, 2024, respectively. BGE excludes cash of $14 million and $33 million at March 31, 2025 and December 31, 2024, respectively.

(b)The Level 3 balance consists of the current and noncurrent liability of $25 million and $126 million, respectively, at March 31, 2025 and $29 million and $103 million, respectively, at December 31, 2024 related to floating-to-fixed energy swap contracts with unaffiliated suppliers.

PHI, Pepco, DPL, and ACE

	At March 31, 2025								At December 31, 2024
PHI	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets
Cash equivalents(a)	$	118	$	—	$	—	$	118	$	93	$	—	$	—	$	93
Rabbi trust investments
Cash equivalents	93		—		—		93		92		—		—		92
Mutual funds	9		—		—		9		9		—		—		9
Fixed income	—		6		—		6		—		6		—		6
Life insurance contracts	—		23		21		44		—		23		21		44
Rabbi trust investments subtotal	102		29		21		152		101		29		21		151
Total assets	220		29		21		270		194		29		21		244
Liabilities
Deferred compensation obligation	—		(10)		—		(10)		—		(12)		—		(12)
Total liabilities	—		(10)		—		(10)		—		(12)		—		(12)
Total net assets	$	220	$	19	$	21	$	260	$	194	$	17	$	21	$	232

	Pepco								DPL								ACE
At March 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)	$	69	$	—	$	—	$	69	$	49	$	—	$	—	$	49	$	—	$	—	$	—	$	—
Rabbi trust investments
Cash equivalents	92		—		—		92		—		—		—		—		—		—		—		—
Life insurance contracts	—		23		21		44		—		—		—		—		—		—		—		—
Rabbi trust investments subtotal	92		23		21		136		—		—		—		—		—		—		—		—
Total assets	161		23		21		205		49		—		—		49		—		—		—		—
Liabilities
Deferred compensation obligation	—		(1)		—		(1)		—		—		—		—		—		—		—		—
Total liabilities	—		(1)		—		(1)		—		—		—		—		—		—		—		—
Total net assets	$	161	$	22	$	21	$	204	$	49	$	—	$	—	$	49	$	—	$	—	$	—	$	—

	Pepco								DPL								ACE
At December 31, 2024	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)	$	21	$	—	$	—	$	21	$	3	$	—	$	—	$	3	$	—	$	—	$	—	$	—
Rabbi trust investments
Cash equivalents	91		—		—		91		—		—		—		—		—		—		—		—
Life insurance contracts	—		23		21		44		—		—		—		—		—		—		—		—
Rabbi trust investments subtotal	91		23		21		135		—		—		—		—		—		—		—		—
Total assets	112		23		21		156		3		—		—		3		—		—		—		—
Liabilities
Deferred compensation obligation	—		(1)		—		(1)		—		—		—		—		—		—		—		—
Total liabilities	—		(1)		—		(1)		—		—		—		—		—		—		—		—
Total net assets	$	112	$	22	$	21	$	155	$	3	$	—	$	—	$	3	$	—	$	—	$	—	$	—

__________

(a)PHI excludes cash of $51 million and $70 million at March 31, 2025 and December 31, 2024, respectively, and restricted cash of $1 million and zero at March 31, 2025 and December 31, 2024. Pepco excludes cash of $20 million and $30 million at March 31, 2025 and December 31, 2024, respectively. DPL excludes cash of $12 million and $20 million at March 31, 2025 and December 31, 2024, respectively. ACE excludes cash of $19 million and $14 million at March 31, 2025 and December 31, 2024, respectively and restricted cash of $1 million and zero at March 31, 2025 and December 31, 2024, respectively

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, 2025 and 2024:

	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)	—		—			—
Included in regulatory assets/liabilities	(19)		(19)		(b)	—
Purchases, sales, and settlements
Balance at March 31, 2025	$	(129)	$	(151)	(c)	$	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	$	—	$	—		$	—

	Exelon		ComEd			PHI and Pepco
Three Months Ended March 31, 2024	Total		Commodity Derivatives			Life Insurance Contracts
Balance at December 31, 2023	$	(90)	$	(133)		$	41
Total realized / unrealized gains (losses)
Included in net income(a)	—		—			—
Included in regulatory assets/liabilities	25		25		(b)	—
Balance at March 31, 2024	$	(65)	$	(108)		$	41
The amount of total gains included in income attributed to the change in unrealized gains related to assets and liabilities at March 31, 2024	$	—	$	—		$	—

(a)Classified in Operating and maintenance expense in the Consolidated Statements of Operations and Comprehensive Income.

(b)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. Includes $13 million of increases in fair value and an increase for realized gains due to settlements of $12 million recorded in Purchased power expense associated with floating-to-fixed energy swap contracts with unaffiliated suppliers for the three months ended March 31, 2024.

(c)The balance of the current and noncurrent asset was effectively zero as of March 31, 2025. The balance consists of a current and noncurrent liability of $25 million and $126 million, respectively, as of March 31, 2025.

Commodity Derivatives (Exelon and ComEd)

The table below discloses the significant unobservable inputs to the forward curve used to value mark-to-market derivatives.

Type of trade	Fair Value at March 31, 2025		Fair Value at December 31, 2024		Valuation Technique	Unobservable Input	2025 Range & Arithmetic Average				2024 Range & Arithmetic Average
Commodity derivatives	$	(151)	$	(132)	Discounted Cash Flow	Forward power price(a)	$28.45	-	$62.87	$38.62	$30.31	-	$59.88	$42.08

________

(a)An increase to the forward power price would increase the fair value.

74

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 18 — Commitments and Contingencies of the 2024 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, 2025:

Description	Exelon		PHI		Pepco		DPL		ACE
Total commitments	$	513	$	320	$	120	$	89	$	111
Remaining commitments(a)	26		23		22		1		—

__________

(a)Remaining commitments extend through 2026 and include escrow funds, charitable contributions, and rate credits.

75

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, 2025, representing commitments potentially triggered by future events were as follows:

			Expiration within
	Total		2025		2026		2027		2028		2029		2030 and beyond
Exelon
Letters of credit(a)	$	55	$	47	$	8	$	—	$	—	$	—	$	—
Surety bonds(b)	275		182		13		2		78		—		—
Financing trust guarantees(c)	378		—		—		—		78		—		300
Guaranteed lease residual values(d)	24		—		3		4		6		4		7
Total commercial commitments	$	732	$	229	$	24	$	6	$	162	$	4	$	307
ComEd
Letters of credit(a)	$	18	$	15	$	3	$	—	$	—	$	—	$	—
Surety bonds(b)	37		32		3		2		—		—		—
Financing trust guarantees(c)	200		—		—		—		—		—		200
Total commercial commitments	$	255	$	47	$	6	$	2	$	—	$	—	$	200
PECO
Letters of credit(a)	$	4	$	1	$	3	$	—	$	—	$	—	$	—
Surety bonds(b)	3		2		1		—		—		—		—
Financing trust guarantees(c)	178		—		—		—		78		—		100
Total commercial commitments	$	185	$	3	$	4	$	—	$	78	$	—	$	100
BGE
Letters of credit(a)	$	27	$	27	$	—	$	—	$	—	$	—	$	—
Surety bonds(b)	3		2		1		—		—		—		—
Total commercial commitments	$	30	$	29	$	1	$	—	$	—	$	—	$	—
PHI
Letters of credit(a)	$	3	$	3	$	—	$	—	$	—	$	—	$	—
Surety bonds(b)	173		91		4		—		78		—		—
Guaranteed lease residual values(d)	24		—		3		4		6		4		7
Total commercial commitments	$	200