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 June 30, 2026

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 June 30, 2026 was:

Exelon Corporation Common Stock, without par value	1,032,253,967
Commonwealth Edison Company Common Stock, $12.50 par value	127,021,427
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

1

	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	60
4. Segment Information	62
5. Accounts Receivable	72
6. Income Taxes	74
7. Retirement Benefits	79
8. Derivative Financial Instruments	81
9. Debt and Credit Agreements	84
10. Fair Value of Financial Assets and Liabilities	87
11. Commitments and Contingencies	95
12. Shareholders' Equity	101
13. Changes in Accumulated Other Comprehensive Income	103
14. Supplemental Financial Information	104
15. Related Party Transactions	108

2

		Page No.
ITEM 2.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	110
	Exelon Corporation	110
	Executive Overview	110
	Financial Results of Operations	110
	Significant 2026 Transactions and Developments	112
	Other Key Business Drivers and Management Strategies	115
	Critical Accounting Policies and Estimates	116
	Results of Operations By Registrant	117
	Commonwealth Edison Company	117
	PECO Energy Company	120
	Baltimore Gas and Electric Company	124
	Pepco Holdings LLC	127
	Potomac Electric Power Company	128
	Delmarva Power & Light Company	131
	Atlantic City Electric Company	135
	Liquidity and Capital Resources	138
ITEM 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	147
ITEM 4.	CONTROLS AND PROCEDURES	148
PART II.	OTHER INFORMATION	149
ITEM 1.	LEGAL PROCEEDINGS	149
ITEM 1A.	RISK FACTORS	149
ITEM 5.	OTHER INFORMATION	149
ITEM 6.	EXHIBITS	149
SIGNATURES		153
	Exelon Corporation	153
	Commonwealth Edison Company	154
	PECO Energy Company	155
	Baltimore Gas and Electric Company	156
	Pepco Holdings LLC	157
	Potomac Electric Power Company	158
	Delmarva Power & Light Company	159
	Atlantic City Electric Company	160

3

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
Pepco Energy Services or PES	Pepco Energy Services, Inc. and its subsidiaries
PHI Corporate	PHI in its corporate capacity as a holding company
PHISCO	PHI Service Company
Former Related Entities
Constellation	Constellation Energy Corporation and Constellation Energy Generation, LLC (formerly Exelon Generation Company, LLC, a subsidiary of Exelon as of December 31, 2021 prior to separation on February 1, 2022)

4

GLOSSARY OF TERMS AND ABBREVIATIONS
Other Terms and Abbreviations
Note - of the 2025 Form 10-K	Reference to specific Combined Note to Consolidated Financial Statements within Exelon's 2025 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
Convertible Senior Notes	Exelon's 3.25% Convertible Senior Notes due 2029
CMC	Carbon Mitigation Credit
CRGA	Clean and Reliable Grid Affordability Act
CODMs	Chief Operating Decision Makers
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
EPA	United States Environmental Protection Agency
ERISA	Employee Retirement Income Security Act of 1974, as amended
FERC	Federal Energy Regulatory Commission
GAAP	Generally Accepted Accounting Principles in the United States
GWhs	Gigawatt hours
ICC	Illinois Commerce Commission
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
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

5

GLOSSARY OF TERMS AND ABBREVIATIONS
Other Terms and Abbreviations
NPS	National Park Service
NRD	Natural Resources Damages
OCI	Other Comprehensive Income
OPEB	Other Postretirement Employee Benefits
PAPUC	Pennsylvania Public Utility Commission
PJM	PJM Interconnection, LLC
PLR	Private Letter Ruling
PP&E	Property, Plant, and Equipment
PRPs	Potentially Responsible Parties
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
S&P	Standard & Poor’s Ratings Services
SEC	United States Securities and Exchange Commission
SOFR	Secured Overnight Financing Rate
SOS	Standard Offer Service
TCJA	Tax Cuts and Jobs Act
USAO	United States Attorney's Office for the Northern District of Illinois

6

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;

•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 power generation resources to meet actual or forecasted demand or disruptions at 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

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

7

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 2025 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.

8

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

9

Exelon Corporation and Subsidiary Companies

Consolidated Statements of Operations and Comprehensive Income

(Unaudited)

	Three Months Ended June 30,				Six Months Ended June 30,
(In millions, except per share data)	2026		2025		2026		2025
Operating revenues
Electric operating revenues	$	5,710	$	5,365	$	11,868	$	11,182
Natural gas operating revenues	327		337		1,443		1,361
Revenues from alternative revenue programs	(70)		(275)		(102)		(402)
Total operating revenues	5,967		5,427		13,209		12,141
Operating expenses
Purchased power	2,132		1,811		4,515		3,995
Purchased fuel	79		85		472		423
Operating and maintenance	1,386		1,321		2,852		2,668
Depreciation and amortization	968		902		1,920		1,805
Taxes other than income taxes	423		383		866		788
Total operating expenses	4,988		4,502		10,625		9,679
Gain on sale of assets	—		2		—		1
Operating income	979		927		2,584		2,463
Other income and (deductions)
Interest expense, net	(568)		(524)		(1,116)		(1,028)
Interest expense to affiliates	(6)		(7)		(12)		(12)
Other, net	90		65		159		117
Total other income and (deductions)	(484)		(466)		(969)		(923)
Income before income taxes	495		461		1,615		1,540
Income taxes	99		70		300		240
Net income attributable to common shareholders	$	396	$	391	$	1,315	$	1,300
Comprehensive income, net of income taxes
Net income	$	396	$	391	$	1,315	$	1,300
Other comprehensive income, net of income taxes
Pension and non-pension postretirement benefit plans:
Actuarial losses reclassified to periodic benefit cost	7		5		14		11
Pension and non-pension postretirement benefit plans valuation adjustments	(1)		1		3		5
Unrealized (loss) on cash flow hedges	—		(6)		(5)		(14)
Other comprehensive income	6		—		12		2
Comprehensive income attributable to common shareholders	$	402	$	391	$	1,327	$	1,302
Average shares of common stock outstanding:
Basic	1,025		1,010		1,025		1,009
Assumed exercise and/or distributions of stock-based awards(a)	3		2		2		2
Diluted	1,028		1,012		1,027		1,011
Earnings per average common share
Basic	$	0.39	$	0.39	$	1.28	$	1.29
Diluted	$	0.39	$	0.39	$	1.28	$	1.29

__________

(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

10

Exelon Corporation and Subsidiary Companies

Consolidated Statements of Cash Flows

(Unaudited)

	Six Months Ended June 30,
(In millions)	2026		2025
Cash flows from operating activities
Net income	$	1,315	$	1,300
Adjustments to reconcile net income to net cash flows provided by operating activities:
Depreciation, amortization, and accretion	1,921		1,806
Deferred income taxes and amortization of investment tax credits	432		165
Net fair value changes related to derivatives	—		3
Other non-cash operating activities	464		734
Changes in assets and liabilities:
Accounts receivable	787		(460)
Inventories	(29)		(20)
Accounts payable and accrued expenses	(210)		(38)
Collateral received, net	72		14
Income taxes	(140)		(3)
Regulatory assets and liabilities, net	(874)		(294)
Pension and non-pension postretirement benefit contributions	(356)		(302)
Other assets and liabilities	287		(194)
Net cash flows provided by operating activities	3,669		2,711
Cash flows from investing activities
Capital expenditures	(4,558)		(3,959)
Proceeds from sales of assets	—		2
Other investing activities	(2)		(5)
Net cash flows used in investing activities	(4,560)		(3,962)
Cash flows from financing activities
Changes in short-term borrowings	131		(750)
Proceeds from short-term borrowings with maturities greater than 90 days	500		—
Issuance of long-term debt	3,600		3,800
Retirement of long-term debt	(1,600)		(807)
Issuance of common stock	382		173
Dividends paid on common stock	(860)		(808)
Proceeds from employee stock plans	24		11
Other financing activities	(57)		(56)
Net cash flows provided by financing activities	2,120		1,563
Increase in cash, restricted cash, and cash equivalents	1,229		312
Cash, restricted cash, and cash equivalents at beginning of period	1,201		939
Cash, restricted cash, and cash equivalents at end of period	$	2,430	$	1,251
Supplemental cash flow information
Decrease in capital expenditures not paid	(253)		(100)

See the Combined Notes to Consolidated Financial Statements

11

Exelon Corporation and Subsidiary Companies

Consolidated Balance Sheets

(Unaudited)

(In millions)	June 30, 2026		December 31, 2025
ASSETS
Current assets
Cash and cash equivalents	$	1,813	$	626
Restricted cash and cash equivalents	608		525
Accounts receivable
Customer accounts receivable	3,567		3,732
Customer allowance for credit losses	(508)		(435)
Customer accounts receivable, net	3,059		3,297
Other accounts receivable	1,294		1,879
Other allowance for credit losses	(94)		(94)
Other accounts receivable, net	1,200		1,785
Inventories, net
Fossil fuel	62		88
Materials and supplies	832		780
Regulatory assets	1,352		1,359
Prepaid renewable energy credits	381		563
Other	490		523
Total current assets	9,797		9,546
Property, plant, and equipment (net of accumulated depreciation and amortization of $21,230 and $20,080 as of June 30, 2026 and December 31, 2025, respectively)	87,123		84,318
Deferred debits and other assets
Regulatory assets	9,412		9,214
Goodwill	6,630		6,630
Receivable related to Regulatory Agreement Units	5,280		4,755
Investments	327		312
Other	1,936		1,795
Total deferred debits and other assets	23,585		22,706
Total assets	$	120,505	$	116,570

See the Combined Notes to Consolidated Financial Statements

12

Exelon Corporation and Subsidiary Companies

Consolidated Balance Sheets

(Unaudited)

(In millions)	June 30, 2026		December 31, 2025
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Short-term borrowings	$	1,243	$	612
Long-term debt due within one year	727		1,665
Accounts payable	3,475		3,721
Accrued expenses	1,447		1,582
Payables to affiliates	5		5
Customer deposits	589		533
Regulatory liabilities	573		1,128
Mark-to-market derivative liabilities	23		30
Unamortized energy contract liabilities	4		5
Renewable energy credit obligations	332		473
Other	590		577
Total current liabilities	9,008		10,331
Long-term debt	50,313		47,413
Long-term debt to financing trusts	390		390
Deferred credits and other liabilities
Deferred income taxes and unamortized investment tax credits	14,348		13,715
Regulatory liabilities	11,727		11,016
Pension obligations	1,429		1,749
Non-pension postretirement benefit obligations	564		546
Asset retirement obligations	322		321
Mark-to-market derivative liabilities	105		106
Unamortized energy contract liabilities	14		16
Other	2,587		2,169
Total deferred credits and other liabilities	31,096		29,638
Total liabilities	90,807		87,772
Commitments and contingencies
Shareholders’ equity
Common stock (No par value, 2,000 shares authorized, 1,032 shares and 1,023 shares outstanding as of June 30, 2026 and December 31, 2025, respectively)	22,540		22,106
Treasury stock, at cost (2 shares as of June 30, 2026 and December 31, 2025)	(123)		(123)
Retained earnings	8,031		7,577
Accumulated other comprehensive loss, net	(750)		(762)
Total shareholders’ equity	29,698		28,798
Total liabilities and shareholders’ equity	$	120,505	$	116,570

See the Combined Notes to Consolidated Financial Statements

13

Exelon Corporation and Subsidiary Companies

Consolidated Statements of Changes in Shareholders' Equity

(Unaudited)

	Six Months Ended June 30, 2026
(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, 2025	1,024,401	$	22,106	$	(123)	$	7,577	$	(762)	$	28,798
Net income	—	—		—		919		—		919
Long-term incentive plan activity	338	10		—		—		—		10
Employee stock purchase plan activity	302	13		—		—		—		13
Common stock dividends ($0.42/common share)	—	—		—		(431)		—		(431)
Other comprehensive income, net of income taxes	—	—		—		—		6		6
Balance at March 31, 2026	1,025,041	$	22,129	$	(123)	$	8,065	$	(756)	$	29,315
Net income	—	—		—		396		—		396
Long-term incentive plan activity	51	14		—		—		—		14
Employee stock purchase plan activity	317	15		—		—		—		15
Issuance of Common Stock	8,682	382		—		—		—		382
Common stock dividends ($0.42/common share)	—	—		—		(430)		—		(430)
Other comprehensive income, net of income taxes	—	—		—		—		6		6
Balance at June 30, 2026	1,034,091	$	22,540	$	(123)	$	8,031	$	(750)	$	29,698

	Six Months Ended June 30, 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
Net income	—	—		—		391		—		391
Long-term incentive plan activity	118	14		—		—		—		14
Employee stock purchase plan activity	334	13		—		—		—		13
Common stock dividends ($0.40/common share)	—	—		—		(405)		—		(405)
Balance at June 30, 2025	1,011,820	$	21,544	$	(123)	$	6,917	$	(718)	$	27,620

See the Combined Notes to Consolidated Financial Statements

14

Commonwealth Edison Company and Subsidiary Companies

Consolidated Statements of Operations and Comprehensive Income

(Unaudited)

	Three Months Ended June 30,				Six Months Ended June 30,
(In millions)	2026		2025		2026		2025
Operating revenues
Electric operating revenues	$	2,038	$	2,060	$	3,931	$	4,203
Revenues from alternative revenue programs	(55)		(234)		(46)		(319)
Operating revenues from affiliates	2		10		13		17
Total operating revenues	1,985		1,836		3,898		3,901
Operating expenses
Purchased power	579		550		1,031		1,239
Operating and maintenance	339		322		674		645
Operating and maintenance from affiliates	110		100		212		200
Depreciation and amortization	416		387		820		767
Taxes other than income taxes	107		97		212		196
Total operating expenses	1,551		1,456		2,949		3,047
Operating income	434		380		949		854
Other income and (deductions)
Interest expense, net	(140)		(128)		(272)		(253)
Interest expense to affiliates, net	(3)		(3)		(7)		(7)
Other, net	41		31		73		53
Total other income and (deductions)	(102)		(100)		(206)		(207)
Income before income taxes	332		280		743		647
Income taxes	83		52		184		117
Net income	$	249	$	228	$	559	$	530
Comprehensive income	$	249	$	228	$	559	$	530

See the Combined Notes to Consolidated Financial Statements

15

Commonwealth Edison Company and Subsidiary Companies

Consolidated Statements of Cash Flows

(Unaudited)

	Six Months Ended June 30,
(In millions)	2026		2025
Cash flows from operating activities
Net income	$	559	$	530
Adjustments to reconcile net income to net cash flows provided by operating activities:
Depreciation and amortization	820		767
Deferred income taxes and amortization of investment tax credits	126		6
Other non-cash operating activities	115		401
Changes in assets and liabilities:
Accounts receivable	748		(252)
Receivables from and payables to affiliates, net	(6)		(19)
Inventories	(15)		8
Accounts payable and accrued expenses	102		(31)
Collateral received (paid), net	81		(3)
Income taxes	(4)		7
Regulatory assets and liabilities, net	(862)		(158)
Pension and non-pension postretirement benefit contributions	(222)		(190)
Other assets and liabilities	79		(25)
Net cash flows provided by operating activities	1,521		1,041
Cash flows from investing activities
Capital expenditures	(1,671)		(1,189)
Other investing activities	3		1
Net cash flows used in investing activities	(1,668)		(1,188)
Cash flows from financing activities
Changes in short-term borrowings	—		(36)
Issuance of long-term debt	1,425		725
Retirement of long-term debt	(500)		—
Dividends paid on common stock	(437)		(407)
Contributions from parent	256		87
Other financing activities	(14)		(7)
Net cash flows provided by financing activities	730		362
Increase in cash, restricted cash, and cash equivalents	583		215
Cash, restricted cash, and cash equivalents at beginning of period	663		632
Cash, restricted cash, and cash equivalents at end of period	$	1,246	$	847
Supplemental cash flow information
(Decrease) increase in capital expenditures not paid	$	(54)	$	17

See the Combined Notes to Consolidated Financial Statements

16

Commonwealth Edison Company and Subsidiary Companies

Consolidated Balance Sheets

(Unaudited)

(In millions)	June 30, 2026		December 31, 2025
ASSETS
Current assets
Cash and cash equivalents	$	704	$	159
Restricted cash and cash equivalents	533		454
Accounts receivable
Customer accounts receivable	972		1,058
Customer allowance for credit losses	(102)		(115)
Customer accounts receivable, net	870		943
Other accounts receivable	458		1,155
Other allowance for credit losses	(25)		(23)
Other accounts receivable, net	433		1,132
Receivables from affiliates	5		5
Inventories, net	282		268
Regulatory assets	644		595
Other	196		217
Total current assets	3,667		3,773
Property, plant, and equipment (net of accumulated depreciation and amortization of $8,731 and $8,291 as of June 30, 2026 and December 31, 2025, respectively)	33,316		32,255
Deferred debits and other assets
Regulatory assets	2,861		2,687
Goodwill	2,625		2,625
Receivable related to Regulatory Agreement Units	4,638		4,313
Investments	7		6
Prepaid pension asset	1,458		1,284
Other	1,375		1,342
Total deferred debits and other assets	12,964		12,257
Total assets	$	49,947	$	48,285

See the Combined Notes to Consolidated Financial Statements

17

Commonwealth Edison Company and Subsidiary Companies

Consolidated Balance Sheets

(Unaudited)

(In millions)	June 30, 2026		December 31, 2025
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Long-term debt due within one year	$	—	$	500
Accounts payable	1,146		1,033
Accrued expenses	415		474
Payables to affiliates	75		81
Customer deposits	230		192
Regulatory liabilities	243		846
Mark-to-market derivative liabilities	23		25
Other	338		288
Total current liabilities	2,470		3,439
Long-term debt	13,665		12,253
Long-term debt to financing trust	206		206
Deferred credits and other liabilities
Deferred income taxes and unamortized investment tax credits	5,988		5,828
Regulatory liabilities	9,694		9,163
Asset retirement obligations	197		193
Non-pension postretirement benefit obligations	157		151
Mark-to-market derivative liabilities	105		106
Other	1,482		1,341
Total deferred credits and other liabilities	17,623		16,782
Total liabilities	33,964		32,680
Commitments and contingencies
Shareholders’ equity
Common stock	1,588		1,588
Other paid-in capital	11,275		11,019
Retained earnings	3,120		2,998
Total shareholders’ equity	15,983		15,605
Total liabilities and shareholders’ equity	$	49,947	$	48,285

    

See the Combined Notes to Consolidated Financial Statements

18

Commonwealth Edison Company and Subsidiary Companies

Consolidated Statements of Changes in Shareholders' Equity

(Unaudited)

	Six Months Ended June 30, 2026
(In millions)	Common Stock		Other Paid-In Capital		Retained Earnings		Total Shareholders’ Equity
Balance at December 31, 2025	$	1,588	$	11,019	$	2,998	$	15,605
Net income	—		—		310		310
Common stock dividends	—		—		(218)		(218)
Contributions from parent	—		256		—		256
Balance at March 31, 2026	$	1,588	$	11,275	$	3,090	$	15,953
Net income	—		—		249		249
Common stock dividends	—		—		(219)		(219)
Contributions from parent	—		—		—		—
Balance at June 30, 2026	$	1,588	$	11,275	$	3,120	$	15,983
	Six Months Ended June 30, 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
Net income	—		—		228		228
Common stock dividends	—		—		(204)		(204)
Contributions from parent	—		—		—		—
Balance at June 30, 2025	$	1,588	$	10,715	$	2,787	$	15,090

See the Combined Notes to Consolidated Financial Statements

19

PECO Energy Company and Subsidiary Companies

Consolidated Statements of Operations and Comprehensive Income

(Unaudited)

	Three Months Ended June 30,				Six Months Ended June 30,
(In millions)	2026		2025		2026		2025
Operating revenues
Electric operating revenues	$	934	$	876	$	2,007	$	1,839
Natural gas operating revenues	120		120		530		496
Revenues from alternative revenue programs	5		1		10		(8)
Operating revenues from affiliates	3		3		7		6
Total operating revenues	1,062		1,000		2,554		2,333
Operating expenses
Purchased power	352		304		803		665
Purchased fuel	37		35		198		176
Operating and maintenance	232		242		502		507
Operating and maintenance from affiliates	68		63		134		124
Depreciation and amortization	125		112		247		221
Taxes other than income taxes	62		54		131		115
Total operating expenses	876		810		2,015		1,808
Operating income	186		190		539		525
Other income and (deductions)
Interest expense, net	(70)		(57)		(139)		(117)
Interest expense to affiliates, net	(2)		(3)		(5)		(7)
Other, net	13		10		25		18
Total other income and (deductions)	(59)		(50)		(119)		(106)
Income before income taxes	127		140		420		419
Income taxes	8		4		23		17
Net income	$	119	$	136	$	397	$	402
Comprehensive income	$	119	$	136	$	397	$	402

See the Combined Notes to Consolidated Financial Statements

20

PECO Energy Company and Subsidiary Companies

Consolidated Statements of Cash Flows

(Unaudited)

	Six Months Ended June 30,
(In millions)	2026		2025
Cash flows from operating activities
Net income	$	397	$	402
Adjustments to reconcile net income to net cash flows provided by operating activities:
Depreciation and amortization	247		221
Deferred income taxes and amortization of investment tax credits	285		(32)
Other non-cash operating activities	44		53
Changes in assets and liabilities:
Accounts receivable	30		(101)
Receivables from and payables to affiliates, net	1		4
Inventories	7		2
Accounts payable and accrued expenses	(79)		2
Collateral (paid) received, net	—		6
Income taxes	(277)		3
Regulatory assets and liabilities, net	(51)		21
Pension and non-pension postretirement benefit contributions	(13)		(9)
Other assets and liabilities	(70)		(66)
Net cash flows provided by operating activities	521		506
Cash flows from investing activities
Capital expenditures	(964)		(832)
Other investing activities	(9)		2
Net cash flows used in investing activities	(973)		(830)
Cash flows from financing activities
Changes in short-term borrowings	81		11
Dividends paid on common stock	(273)		(273)
Contributions from parent	567		563
Net cash flows provided by financing activities	375		301
Decrease in cash, restricted cash, and cash equivalents	(77)		(23)
Cash, restricted cash, and cash equivalents at beginning of period	116		48
Cash, restricted cash, and cash equivalents at end of period	$	39	$	25
Supplemental cash flow information
(Decrease) increase in capital expenditures not paid	$	(2)	$	95

See the Combined Notes to Consolidated Financial Statements

21

PECO Energy Company and Subsidiary Companies

Consolidated Balance Sheets

(Unaudited)

(In millions)	June 30, 2026		December 31, 2025
ASSETS
Current assets
Cash and cash equivalents	$	39	$	116
Accounts receivable
Customer accounts receivable	741		811
Customer allowance for credit losses	(142)		(137)
Customer accounts receivable, net	599		674
Other accounts receivable	154		144
Other allowance for credit losses	(18)		(18)
Other accounts receivable, net	136		126
Inventories, net
Fossil fuel	25		43
Materials and supplies	94		83
Prepaid utility taxes	79		—
Prepaid renewable energy credits	60		55
Regulatory assets	116		72
Other	66		34
Total current assets	1,214		1,203
Property, plant, and equipment (net of accumulated depreciation and amortization of $4,262 and $4,131 as of June 30, 2026 and December 31, 2025, respectively)	16,655		15,922
Deferred debits and other assets
Regulatory assets	1,382		1,275
Receivable related to Regulatory Agreement Units	642		442
Investments	48		45
Prepaid pension asset	448		441
Other	106		34
Total deferred debits and other assets	2,626		2,237
Total assets	$	20,495	$	19,362

See the Combined Notes to Consolidated Financial Statements

22

PECO Energy Company and Subsidiary Companies

Consolidated Balance Sheets

(Unaudited)

(In millions)	June 30, 2026		December 31, 2025
LIABILITIES AND SHAREHOLDER'S EQUITY
Current liabilities
Short-term borrowings	$	81	$	—
Accounts payable	788		811
Accrued expenses	171		483
Payables to affiliates	36		35
Customer deposits	102		93
Renewable energy credit obligations	101		56
Regulatory liabilities	130		140
Other	50		40
Total current liabilities	1,459		1,658
Long-term debt	6,398		6,396
Long-term debt to financing trusts	184		184
Deferred credits and other liabilities
Deferred income taxes and unamortized investment tax credits	2,980		2,594
Regulatory liabilities	648		449
Asset retirement obligations	26		26
Non-pension postretirement benefit obligations	289		286
Other	160		109
Total deferred credits and other liabilities	4,103		3,464
Total liabilities	12,144		11,702
Commitments and contingencies
Shareholder’s equity
Common stock	5,789		5,222
Retained earnings	2,562		2,438
Total shareholder’s equity	8,351		7,660
Total liabilities and shareholder's equity	$	20,495	$	19,362

See the Combined Notes to Consolidated Financial Statements

23

PECO Energy Company and Subsidiary Companies

Consolidated Statements of Changes in Shareholders' Equity

(Unaudited)

	Six Months Ended June 30, 2026
(In millions)	Common Stock		Retained Earnings		Total Shareholder's Equity
Balance at December 31, 2025	$	5,222	$	2,438	$	7,660
Net income	—		278		278
Common stock dividends	—		(137)		(137)
Contributions from parent	567		—		567
Balance at March 31, 2026	$	5,789	$	2,579	$	8,368
Net income	—		119		119
Common stock dividends	—		(136)		(136)
Contributions from parent	—		—		—
Balance at June 30, 2026	$	5,789	$	2,562	$	8,351
	Six Months Ended June 30, 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
Net income	—		136		136
Common stock dividends	—		(136)		(136)
Contributions from parent	—		—		—
Balance at June 30, 2025	$	5,208	$	2,299	$	7,507

See the Combined Notes to Consolidated Financial Statements

24

Baltimore Gas and Electric Company

Statements of Operations and Comprehensive Income

(Unaudited)

	Three Months Ended June 30,				Six Months Ended June 30,
(In millions)	2026		2025		2026		2025
Operating revenues
Electric operating revenues	$	1,044	$	856	$	2,302	$	1,877
Natural gas operating revenues	166		184		757		745
Revenues from alternative revenue programs	5		(13)		(18)		(43)
Operating revenues from affiliates	3		2		5		4
Total operating revenues	1,218		1,029		3,046		2,583
Operating expenses
Purchased power	522		367		1,152		818
Purchased fuel	23		39		201		198
Operating and maintenance	222		201		481		443
Operating and maintenance from affiliates	71		63		138		125
Depreciation and amortization	166		154		334		318
Taxes other than income taxes	96		85		200		181
Total operating expenses	1,100		909		2,506		2,083
Operating income	118		120		540		500
Other income and (deductions)
Interest expense, net	(68)		(61)		(129)		(120)
Other, net	22		11		38		20
Total other income and (deductions)	(46)		(50)		(91)		(100)
Income before income taxes	72		70		449		400
Income taxes	17		15		96		85
Net income	$	55	$	55	$	353	$	315
Comprehensive income	$	55	$	55	$	353	$	315

See the Combined Notes to Consolidated Financial Statements

25

Baltimore Gas and Electric Company

Statements of Cash Flows

(Unaudited)

	Six Months Ended June 30,
(In millions)	2026		2025
Cash flows from operating activities
Net income	$	353	$	315
Adjustments to reconcile net income to net cash flows provided by operating activities:
Depreciation and amortization	334		318
Deferred income taxes and amortization of investment tax credits	198		43
Other non-cash operating activities	79		89
Changes in assets and liabilities:
Accounts receivable	(16)		(21)
Receivables from and payables to affiliates, net	(3)		(11)
Inventories	(4)		8
Accounts payable and accrued expenses	(100)		(43)
Collateral (paid) received, net	(2)		5
Income taxes	(160)		15
Regulatory assets and liabilities, net	45		(61)
Pension and non-pension postretirement benefit contributions	(44)		(37)
Other assets and liabilities	117		114
Net cash flows provided by operating activities	797		734
Cash flows from investing activities
Capital expenditures	(822)		(804)
Other investing activities	5		5
Net cash flows used in investing activities	(817)		(799)
Cash flows from financing activities
Changes in short-term borrowings	—		(175)
Issuance of long-term debt	925		650
Retirement of long-term debt	(350)		—
Dividends paid on common stock	(227)		(196)
Contributions from parent	474		—
Other financing activities	(8)		(7)
Net cash flows provided by financing activities	814		272
Increase in cash, restricted cash, and cash equivalents	794		207
Cash, restricted cash, and cash equivalents at beginning of period	220		34
Cash, restricted cash, and cash equivalents at end of period	$	1,014	$	241
Supplemental cash flow information
Decrease in capital expenditures not paid	$	(20)	$	(50)

See the Combined Notes to Consolidated Financial Statements

26

Baltimore Gas and Electric Company

Balance Sheets

(Unaudited)

(In millions)	June 30, 2026		December 31, 2025
ASSETS
Current assets
Cash and cash equivalents	$	1,010	$	217
Restricted cash and cash equivalents	4		3
Accounts receivable
Customer accounts receivable	926		887
Customer allowance for credit losses	(136)		(68)
Customer accounts receivable, net	790		819
Other accounts receivable	91		100
Other allowance for credit losses	(3)		(4)
Other accounts receivable, net	88		96
Receivables from affiliates	—		1
Inventories, net
Fossil fuel	30		36
Materials and supplies	83		74
Prepaid utility taxes	—		126
Regulatory assets	101		175
Prepaid renewable energy credits	86		189
Other	18		14
Total current assets	2,210		1,750
Property, plant, and equipment (net of accumulated depreciation and amortization of $5,446 and $5,234 as of June 30, 2026 and December 31, 2025, respectively)	14,918		14,385
Deferred debits and other assets
Regulatory assets	774		804
Investments	16		10
Prepaid pension asset	217		194
Other	38		41
Total deferred debits and other assets	1,045		1,049
Total assets	$	18,173	$	17,184

See the Combined Notes to Consolidated Financial Statements

27

Baltimore Gas and Electric Company

Balance Sheets

(Unaudited)

(In millions)	June 30, 2026		December 31, 2025
LIABILITIES AND SHAREHOLDER'S EQUITY
Current liabilities
Long-term debt due within one year	$	—	$	350
Accounts payable	548		640
Accrued expenses	176		352
Payables to affiliates	39		39
Customer deposits	126		125
Regulatory liabilities	34		31
Renewable energy credit obligations	92		194
Other	31		39
Total current liabilities	1,046		1,770
Long-term debt	6,609		5,691
Deferred credits and other liabilities
Deferred income taxes and unamortized investment tax credits	2,476		2,242
Regulatory liabilities	559		595
Asset retirement obligations	37		36
Non-pension postretirement benefit obligations	137		144
Other	107		104
Total deferred credits and other liabilities	3,316		3,121
Total liabilities	10,971		10,582
Commitments and contingencies
Shareholder's equity
Common stock	4,488		4,014
Retained earnings	2,714		2,588
Total shareholder's equity	7,202		6,602
Total liabilities and shareholder's equity	$	18,173	$	17,184

See the Combined Notes to Consolidated Financial Statements

28

Baltimore Gas and Electric Company

Statements of Changes in Shareholder's Equity

(Unaudited)

	Six Months Ended June 30, 2026
(In millions)	Common Stock		Retained Earnings		Total Shareholder's Equity
Balance at December 31, 2025	$	4,014	$	2,588	$	6,602
Net income	—		298		298
Common stock dividends	—		(114)		(114)
Balance at March 31, 2026	$	4,014	$	2,772	$	6,786
Net income	—		55		55
Common stock dividends	—		(113)		(113)
Contributions from parent	474		—		474
Balance at June 30, 2026	$	4,488	$	2,714	$	7,202
	Six Months Ended June 30, 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
Net income	—		55		55
Common stock dividends	—		(98)		(98)
Contributions from parent	—		—		—
Balance at June 30, 2025	$	3,483	$	2,522	$	6,005

See the Combined Notes to Consolidated Financial Statements

29

Pepco Holdings LLC and Subsidiary Companies

Consolidated Statements of Operations and Comprehensive Income

(Unaudited)

	Three Months Ended June 30,				Six Months Ended June 30,
(In millions)	2026		2025		2026		2025
Operating revenues
Electric operating revenues	$	1,694	$	1,573	$	3,628	$	3,264
Natural gas operating revenues	40		33		157		120
Revenues from alternative revenue programs	(24)		(29)		(48)		(32)
Operating revenues from affiliates	2		2		5		5
Total operating revenues	1,712		1,579		3,742		3,357
Operating expenses
Purchased power	679		590		1,529		1,273
Purchased fuel	19		11		73		49
Operating and maintenance	337		291		702		586
Operating and maintenance from affiliates	58		49		118		103
Depreciation and amortization	245		233		491		467
Taxes other than income taxes	145		136		296		276
Total operating expenses	1,483		1,310		3,209		2,754
Gain on sale of assets	—		2		—		1
Operating income	229		271		533		604
Other income and (deductions)
Interest expense, net	(107)		(102)		(213)		(201)
Interest expense to affiliates, net	(1)		(1)		(2)		(2)
Other, net	20		17		39		35
Total other income and (deductions)	(88)		(86)		(176)		(168)
Income before income taxes	141		185		357		436
Income taxes	32		42		79		99
Net income	$	109	$	143	$	278	$	337
Comprehensive income	$	109	$	143	$	278	$	337

See the Combined Notes to Consolidated Financial Statements

30

Pepco Holdings LLC and Subsidiary Companies

Consolidated Statements of Cash Flows

(Unaudited)

	Six Months Ended June 30,
(In millions)	2026		2025
Cash flows from operating activities
Net income	$	278	$	337
Adjustments to reconcile net income to net cash flows provided by operating activities:
Depreciation, amortization, and accretion	491		467
Deferred income taxes and amortization of investment tax credits	100		47
Other non-cash operating activities	150		128
Changes in assets and liabilities:
Accounts receivable	20		(80)
Receivables from and payables to affiliates, net	(1)		(14)
Inventories	(16)		(37)
Accounts payable and accrued expenses	27		39
Collateral (paid) received, net	(6)		8
Income taxes	(37)		(34)
Regulatory assets and liabilities, net	9		(76)
Pension and non-pension postretirement benefit contributions	(56)		(45)
Other assets and liabilities	(9)		(39)
Net cash flows provided by operating activities	950		701
Cash flows from investing activities
Capital expenditures	(1,062)		(1,108)
Proceeds from sales of long-lived assets	—		2
Other investing activities	1		—
Net cash flows used in investing activities	(1,061)		(1,106)
Cash flows from financing activities
Changes in short-term borrowings	(580)		(300)
Issuance of long-term debt	475		425
Changes in Exelon intercompany money pool	12		(3)
Distributions to member	(247)		(292)
Contributions from member	406		522
Other financing activities	(13)		(13)
Net cash flows provided by financing activities	53		339
Decrease in cash, restricted cash, and cash equivalents	(58)		(66)
Cash, restricted cash, and cash equivalents at beginning of period	141		163
Cash, restricted cash, and cash equivalents at end of period	$	83	$	97
Supplemental cash flow information
Decrease in capital expenditures not paid	$	(157)	$	(137)

See the Combined Notes to Consolidated Financial Statements

31

Pepco Holdings LLC and Subsidiary Companies

Consolidated Balance Sheets

(Unaudited)

(In millions)	June 30, 2026		December 31, 2025
ASSETS
Current assets
Cash and cash equivalents	$	47	$	103
Restricted cash and cash equivalents	36		38
Accounts receivable
Customer accounts receivable	928		975
Customer allowance for credit losses	(128)		(115)
Customer accounts receivable, net	800		860
Other accounts receivable	308		292
Other allowance for credit losses	(48)		(49)
Other accounts receivable, net	260		243
Receivables from affiliates	5		14
Inventories, net
Fossil fuel	7		9
Materials and supplies	374		357
Prepaid utility taxes	54		77
Regulatory assets	324		352
Prepaid renewable energy credits	105		201
Other	48		34
Total current assets	2,060		2,288
Property, plant, and equipment (net of accumulated depreciation and amortization of $4,685 and $4,350 as of June 30, 2026 and December 31, 2025, respectively)	21,861		21,377
Deferred debits and other assets
Regulatory assets	1,557		1,556
Goodwill	4,005		4,005
Investments	160		158
Prepaid pension asset	207		199
Other	158		132
Total deferred debits and other assets	6,087		6,050
Total assets	$	30,008	$	29,715

See the Combined Notes to Consolidated Financial Statements

32

Pepco Holdings LLC and Subsidiary Companies

Consolidated Balance Sheets

(Unaudited)

(In millions)	June 30, 2026		December 31, 2025
LIABILITIES AND MEMBER'S EQUITY
Current liabilities
Short-term borrowings	$	32	$	612
Long-term debt due within one year	76		64
Accounts payable	703		816
Accrued expenses	338		359
Payables to affiliates	61		71
Borrowings from Exelon intercompany money pool	92		80
Customer deposits	131		123
Regulatory liabilities	159		103
Unamortized energy contract liabilities	4		5
Renewable energy credit obligations	140		223
Other	119		121
Total current liabilities	1,855		2,577
Long-term debt	9,978		9,526
Deferred credits and other liabilities
Deferred income taxes and unamortized investment tax credits	3,519		3,391
Regulatory liabilities	740		722
Asset retirement obligations	57		62
Non-pension postretirement benefit obligations	17		24
Unamortized energy contract liabilities	14		16
Other	412		418
Total deferred credits and other liabilities	4,759		4,633
Total liabilities	16,592		16,736
Commitments and contingencies
Member's equity
Membership interest	13,536		13,130
Undistributed losses	(120)		(151)
Total member's equity	13,416		12,979
Total liabilities and member's equity	$	30,008	$	29,715

See the Combined Notes to Consolidated Financial Statements

33

Pepco Holdings LLC and Subsidiary Companies

Consolidated Statements of Changes in Member's Equity

(Unaudited)

	Six Months Ended June 30, 2026
(In millions)	Membership Interest		Undistributed (Losses)/Gains		Total Member's Equity
Balance at December 31, 2025	$	13,130	$	(151)	$	12,979
Net income	—		169		169
Distributions to member	—		(139)		(139)
Contributions from member	275		—		275
Balance at March 31, 2026	$	13,405	$	(121)	$	13,284
Net income			109		109
Distributions to member			(108)		(108)
Contributions from member	131				131
Balance at June 30, 2026	$	13,536	$	(120)	$	13,416

	Six Months Ended June 30, 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
Net income	—		143		143
Distributions to member	—		(160)		(160)
Contributions from member	170		—		170
Balance at June 30, 2025	$	13,084	$	(195)	$	12,889

See the Combined Notes to Consolidated Financial Statements

34

Potomac Electric Power Company

Statements of Operations and Comprehensive Income

(Unaudited)

	Three Months Ended June 30,				Six Months Ended June 30,
(In millions)	2026		2025		2026		2025
Operating revenues
Electric operating revenues	$	873	$	791	$	1,859	$	1,645
Revenues from alternative revenue programs	(15)		(16)		(14)		(14)
Operating revenues from affiliates	1		1		4		4
Total operating revenues	859		776		1,849		1,635
Operating expenses
Purchased power	316		256		727		574
Operating and maintenance	118		91		270		187
Operating and maintenance from affiliates	72		64		139		126
Depreciation and amortization	114		107		228		212
Taxes other than income taxes	113		109		231		222
Total operating expenses	733		627		1,595		1,321
Gain on sale of assets	—		2		—		1
Operating income	126		151		254		315
Other income and (deductions)
Interest expense, net	(56)		(54)		(111)		(106)
Other, net	12		9		23		20
Total other income and (deductions)	(44)		(45)		(88)		(86)
Income before income taxes	82		106		166		229
Income taxes	17		22		33		48
Net income	$	65	$	84	$	133	$	181
Comprehensive income	$	65	$	84	$	133	$	181

See the Combined Notes to Consolidated Financial Statements

35

Potomac Electric Power Company

Statements Of Cash Flows

(Unaudited)

	Six Months Ended June 30,
(In millions)	2026		2025
Cash flows from operating activities
Net income	$	133	$	181
Adjustments to reconcile net income to net cash flows provided by operating activities:
Depreciation, amortization, and accretion	228		212
Deferred income taxes and amortization of investment tax credits	43		14
Other non-cash operating activities	57		46
Changes in assets and liabilities:
Accounts receivable	(25)		(73)
Receivables from and payables to affiliates, net	4		—
Inventories	(13)		(18)
Accounts payable and accrued expenses	37		17
Collateral received, net	—		2
Income taxes	(19)		(38)
Regulatory assets and liabilities, net	12		(27)
Pension and non-pension postretirement benefit contributions	(4)		(6)
Other assets and liabilities	16		6
Net cash flows provided by operating activities	469		316
Cash flows from investing activities
Capital expenditures	(517)		(469)
Proceeds from sales of long-lived assets	—		2
Changes in PHI intercompany money pool	(95)		—
Net cash flows used in investing activities	(612)		(467)
Cash flows from financing activities
Changes in short-term borrowings	(303)		(51)
Issuance of long-term debt	300		200
Dividends paid on common stock	(121)		(158)
Contributions from parent	270		157
Other financing activities	(6)		(4)
Net cash flows provided by financing activities	140		144
Decrease in cash, restricted cash, and cash equivalents	(3)		(7)
Cash, restricted cash, and cash equivalents at beginning of period	55		51
Cash, restricted cash, and cash equivalents at end of period	$	52	$	44
Supplemental cash flow information
Decrease in capital expenditures not paid	$	(68)	$	(64)

See the Combined Notes to Consolidated Financial Statements

36

Potomac Electric Power Company

Balance Sheets

(Unaudited)

(In millions)	June 30, 2026		December 31, 2025
ASSETS
Current assets
Cash and cash equivalents	$	21	$	22
Restricted cash and cash equivalents	31		33
Accounts receivable
Customer accounts receivable	495		484
Customer allowance for credit losses	(77)		(69)
Customer accounts receivable, net	418		415
Other accounts receivable	165		154
Other allowance for credit losses	(25)		(26)
Other accounts receivable, net	140		128
Receivable from PHI intercompany money pool	95		—
Inventories, net	186		174
Regulatory assets	162		182
Prepaid renewable energy credits	89		171
Other	17		59
Total current assets	1,159		1,184
Property, plant, and equipment (net of accumulated depreciation and amortization of $4,933 and $4,784 as of June 30, 2026 and December 31, 2025, respectively)	11,007		10,747
Deferred debits and other assets
Regulatory assets	391		405
Investments	144		141
Prepaid pension asset	182		194
Other	68		57
Total deferred debits and other assets	785		797
Total assets	$	12,951	$	12,728

See the Combined Notes to Consolidated Financial Statements

37

Potomac Electric Power Company

Balance Sheets

(Unaudited)

(In millions)	June 30, 2026		December 31, 2025
LIABILITIES AND SHAREHOLDER'S EQUITY
Current liabilities
Short-term borrowings	$	—	$	303
Long-term debt due within one year	7		6
Accounts payable	383		418
Accrued expenses	172		173
Payables to affiliates	41		37
Customer deposits	65		61
Regulatory liabilities	14		13
Renewable energy credit obligations	90		174
Other	86		84
Total current liabilities	858		1,269
Long-term debt	4,924		4,626
Deferred credits and other liabilities
Deferred income taxes and unamortized investment tax credits	1,664		1,604
Regulatory liabilities	279		268
Asset retirement obligations	39		45
Other	203		214
Total deferred credits and other liabilities	2,185		2,131
Total liabilities	7,967		8,026
Commitments and contingencies
Shareholder's equity
Common stock	3,798		3,528
Retained earnings	1,186		1,174
Total shareholder's equity	4,984		4,702
Total liabilities and shareholder's equity	$	12,951	$	12,728

See the Combined Notes to Consolidated Financial Statements

38

Potomac Electric Power Company

Statements Of Changes In Shareholder's Equity

(Unaudited)

	Six Months Ended June 30, 2026
(In millions)	Common Stock		Retained Earnings		Total Shareholder's Equity
Balance at December 31, 2025	$	3,528	$	1,174	$	4,702
Net income	—		68		68
Common stock dividends	—		(64)		(64)
Contributions from parent	139		—		139
Balance at March 31, 2026	$	3,667	$	1,178	$	4,845
Net income	—		65		65
Common stock dividends	—		(57)		(57)
Contributions from parent	131		—		131
Balance at June 30, 2026	$	3,798	$	1,186	$	4,984

	Six Months Ended June 30, 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
Net income	—		84		84
Common stock dividends	—		(92)		(92)
Contributions from parent	—		—		—
Balance at June 30, 2025	$	3,492	$	1,123	$	4,615

See the Combined Notes to Consolidated Financial Statements

39

Delmarva Power & Light Company

Statements of Operations and Comprehensive Income

(Unaudited)

	Three Months Ended June 30,				Six Months Ended June 30,
(In millions)	2026		2025		2026		2025
Operating revenues
Electric operating revenues	$	410	$	386	$	920	$	850
Natural gas operating revenues	40		33		157		120
Revenues from alternative revenue programs	2		—		(5)		(5)
Operating revenues from affiliates	2		2		4		4
Total operating revenues	454		421		1,076		969
Operating expenses
Purchased power	176		161		410		370
Purchased fuel	19		11		73		49
Operating and maintenance	62		50		134		110
Operating and maintenance from affiliates	50		45		97		91
Depreciation and amortization	67		63		133		126
Taxes other than income taxes	24		20		50		41
Total operating expenses	398		350		897		787
Operating income	56		71		179		182
Other income and (deductions)
Interest expense, net	(26)		(25)		(53)		(50)
Other, net	4		4		8		8
Total other income and (deductions)	(22)		(21)		(45)		(42)
Income before income taxes	34		50		134		140
Income taxes	8		11		31		32
Net income	$	26	$	39	$	103	$	108
Comprehensive income	$	26	$	39	$	103	$	108

See the Combined Notes to Consolidated Financial Statements

40

Delmarva Power & Light Company

Statements Of Cash Flows

(Unaudited)

	Six Months Ended June 30,
(In millions)	2026		2025
Cash flows from operating activities
Net income	$	103	$	108
Adjustments to reconcile net income to net cash flows provided by operating activities:
Depreciation and amortization	133		126
Deferred income taxes and amortization of investment tax credits	28		15
Other non-cash operating activities	29		30
Changes in assets and liabilities:
Accounts receivable	55		11
Receivables from and payables to affiliates, net	2		(3)
Inventories	1		(11)
Accounts payable and accrued expenses	(11)		3
Collateral (paid) received, net	(1)		3
Income taxes	(14)		(2)
Regulatory assets and liabilities, net	(4)		(22)
Pension and non-pension postretirement benefit contributions	(1)		(1)
Other assets and liabilities	30		24
Net cash flows provided by operating activities	350		281
Cash flows from investing activities
Capital expenditures	(300)		(277)
Other investing activities	1		—
Net cash flows used in investing activities	(299)		(277)
Cash flows from financing activities
Changes in short-term borrowings	(129)		(142)
Issuance of long-term debt	75		125
Changes in PHI intercompany money pool	47		—
Dividends paid on common stock	(86)		(90)
Contributions from parent	45		99
Other financing activities	(5)		(5)
Net cash flows used in financing activities	(53)		(13)
Decrease in cash, restricted cash, and cash equivalents	(2)		(9)
Cash, restricted cash, and cash equivalents at beginning of period	12		23
Cash, restricted cash, and cash equivalents at end of period	$	10	$	14
Supplemental cash flow information
Decrease in capital expenditures not paid	$	(60)	$	(45)

    

See the Combined Notes to Consolidated Financial Statements

41

Delmarva Power & Light Company

Balance Sheets

(Unaudited)

(In millions)	June 30, 2026		December 31, 2025
ASSETS
Current assets
Cash and cash equivalents	$	8	$	9
Restricted cash and cash equivalents	2		3
Accounts receivable
Customer accounts receivable	196		253
Customer allowance for credit losses	(21)		(19)
Customer accounts receivable, net	175		234
Other accounts receivable	72		75
Other allowance for credit losses	(11)		(10)
Other accounts receivable, net	61		65
Receivables from affiliates	4		2
Inventories, net
Fossil fuel	7		9
Materials and supplies	108		107
Prepaid utility taxes	—		29
Regulatory assets	82		72
Prepaid renewable energy credits	16		30
Other	26		13
Total current assets	489		573
Property, plant, and equipment (net of accumulated depreciation and amortization of $2,330 and $2,241 as of June 30, 2026 and December 31, 2025, respectively)	5,977		5,855
Deferred debits and other assets
Regulatory assets	215		214
Other	143		147
Total deferred debits and other assets	358		361
Total assets	$	6,824	$	6,789

See the Combined Notes to Consolidated Financial Statements

42

Delmarva Power & Light Company

Balance Sheets

(Unaudited)

(In millions)	June 30, 2026		December 31, 2025
LIABILITIES AND SHAREHOLDER'S EQUITY
Current liabilities
Short-term borrowings	$	32	$	161
Long-term debt due within one year	63		53
Accounts payable	147		218
Accrued expenses	59		70
Payables to affiliates	28		25
Borrowings from PHI intercompany money pool	47		—
Customer deposits	39		36
Regulatory liabilities	43		42
Renewable energy credit obligations	50		49
Other	20		22
Total current liabilities	528		676
Long-term debt	2,358		2,291
Deferred credits and other liabilities
Deferred income taxes and unamortized investment tax credits	1,032		996
Regulatory liabilities	330		316
Asset retirement obligations	13		12
Other	130		127
Total deferred credits and other liabilities	1,505		1,451
Total liabilities	4,391		4,418
Commitments and contingencies
Shareholder's equity
Common stock	1,767		1,722
Retained earnings	666		649
Total shareholder's equity	2,433		2,371
Total liabilities and shareholder's equity	$	6,824	$	6,789

See the Combined Notes to Consolidated Financial Statements

43

Delmarva Power & Light Company

Statements Of Changes In Shareholder's Equity

(Unaudited)

	Six Months Ended June 30, 2026
(In millions)	Common Stock		Retained Earnings		Total Shareholder's Equity
Balance at December 31, 2025	$	1,722	$	649	$	2,371
Net income	—		77		77
Common stock dividends	—		(50)		(50)
Contributions from parent	45		—		45
Balance at March 31, 2026	$	1,767	$	676	$	2,443
Net income	—		26		26
Common stock dividends	—		(36)		(36)
Contributions from parent	—		—		—
Balance at June 30, 2026	$	1,767	$	666	$	2,433

	Six Months Ended June 30, 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
Net income	—		39		39
Common stock dividends	—		(44)		(44)
Contributions from parent	—		—		$	—
Balance at June 30, 2025	$	1,714	$	645	$	2,359

See the Combined Notes to Consolidated Financial Statements

44

Atlantic City Electric Company and Subsidiary Company

Consolidated Statements of Operations and Comprehensive Income

(Unaudited)

	Three Months Ended June 30,				Six Months Ended June 30,
(In millions)	2026		2025		2026		2025
Operating revenues
Electric operating revenues	$	411	$	397	$	849	$	769
Revenues from alternative revenue programs	(11)		(13)		(29)		(13)
Operating revenues from affiliates	1		—		2		1
Total operating revenues	401		384		822		757
Operating expenses
Purchased power	187		173		392		329
Operating and maintenance	55		55		105		106
Operating and maintenance from affiliates	44		40		87		79
Depreciation and amortization	63		62		128		127
Taxes other than income taxes	3		3		5		5
Total operating expenses	352		333		717		646
Operating income	49		51		105		111
Other income and (deductions)
Interest expense, net	(22)		(20)		(44)		(41)
Other, net	3		2		5		6
Total other income and (deductions)	(19)		(18)		(39)		(35)
Income before income taxes	30		33		66		76
Income taxes	8		9		17		20
Net income	$	22	$	24	$	49	$	56
Comprehensive income	$	22	$	24	$	49	$	56

See the Combined Notes to Consolidated Financial Statements

45

Atlantic City Electric Company and Subsidiary Company

Statements Of Cash Flows

(Unaudited)

	Six Months Ended June 30,
(In millions)	2026		2025
Cash flows from operating activities
Net income	$	49	$	56
Adjustments to reconcile net income to net cash flows provided by operating activities:
Depreciation and amortization	128		127
Deferred income taxes and amortization of investment tax credits	35		13
Other non-cash operating activities	48		33
Changes in assets and liabilities:
Accounts receivable	(9)		(18)
Receivables from and payables to affiliates, net	10		(4)
Inventories	(4)		(9)
Accounts payable and accrued expenses	6		37
Collateral (paid) received, net	(5)		4
Income taxes	(11)		(2)
Regulatory assets and liabilities, net	(2)		(27)
Pension and non-pension postretirement benefit contributions	(14)		(2)
Other assets and liabilities	(48)		(49)
Net cash flows provided by operating activities	183		159
Cash flows from investing activities
Capital expenditures	(240)		(196)
Other investing activities	1		—
Net cash flows used in investing activities	(239)		(196)
Cash flows from financing activities
Changes in short-term borrowings	(148)		(107)
Issuance of long-term debt	100		100
Changes in PHI intercompany money pool	48		—
Dividends paid on common stock	(40)		(44)
Contributions from parent	91		94
Other financing activities	(4)		(3)
Net cash flows provided by financing activities	47		40
(Decrease) increase in cash and cash equivalents	(9)		3
Cash and cash equivalents at beginning of period	24		14
Cash and cash equivalents at end of period	$	15	$	17
Supplemental cash flow information
Decrease in capital expenditures not paid	$	(28)	$	(28)

See the Combined Notes to Consolidated Financial Statements

46

Atlantic City Electric Company and Subsidiary Company

Consolidated Balance Sheets

(Unaudited)

(In millions)	June 30, 2026		December 31, 2025
ASSETS
Current assets
Cash and cash equivalents	$	13	$	22
Restricted cash and cash equivalents	2		2
Accounts receivable
Customer accounts receivable	236		239
Customer allowance for credit losses	(30)		(27)
Customer accounts receivable, net	206		212
Other accounts receivable	70		64
Other allowance for credit losses	(12)		(13)
Other accounts receivable, net	58		51
Receivables from affiliates	1		12
Inventories, net	80		76
Prepaid utility taxes	48		—
Regulatory assets	75		93
Other	8		8
Total current assets	491		476
Property, plant, and equipment (net of accumulated depreciation and amortization of $2,037 and $1,956 as of June 30, 2026 and December 31, 2025, respectively)	4,657		4,556
Deferred debits and other assets
Regulatory assets	588		559
Other	59		41
Total deferred debits and other assets	647		600
Total assets	$	5,795	$	5,632

See the Combined Notes to Consolidated Financial Statements

47

Atlantic City Electric Company and Subsidiary Company

Consolidated Balance Sheets

(Unaudited)

(In millions)	June 30, 2026		December 31, 2025
LIABILITIES AND SHAREHOLDER'S EQUITY
Current liabilities
Short-term borrowings	$	—	$	148
Long-term debt due within one year	4		5
Accounts payable	164		168
Accrued expenses	54		64
Payables to affiliates	23		24
Borrowings from PHI intercompany money pool	48		—
Customer deposits	27		26
Regulatory liabilities	102		48
Other	11		13
Total current liabilities	433		496
Long-term debt	2,130		2,028
Deferred credits and other liabilities
Deferred income taxes and unamortized investment tax credits	906		869
Regulatory liabilities	129		137
Other	69		74
Total deferred credits and other liabilities	1,104		1,080
Total liabilities	3,667		3,604
Commitments and contingencies
Shareholder's equity
Common stock	2,104		2,013
Retained earnings	24		15
Total shareholder's equity	2,128		2,028
Total liabilities and shareholder's equity	$	5,795	$	5,632

See the Combined Notes to Consolidated Financial Statements

48

Atlantic City Electric Company and Subsidiary Company

Consolidated Statements Of Changes In Shareholder's Equity

(Unaudited)

	Six Months Ended June 30, 2026
(In millions)	Common Stock		Retained (Deficit) Earnings		Total Shareholder's Equity
Balance at December 31, 2025	$	2,013	$	15	$	2,028
Net income	—		27		27
Common stock dividends	—		(25)		(25)
Contributions from parent	91		—		91
Balance at March 31, 2026	$	2,104	$	17	$	2,121
Net income	—		22		22
Common stock dividends	—		(15)		(15)
Contributions from parent	—		—		—
Balance at June 30, 2026	$	2,104	$	24	$	2,128

	Six Months Ended June 30, 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
Net income	—		24		24
Common stock dividends	—		(24)		(24)
Contributions from parent	—		—		—
Balance at June 30, 2025	$	2,009	$	21	$	2,030

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 (and, through its subsidiary ComEd of Indiana, transmission in a small portion of northwestern Indiana)
	Transmission and distribution of electricity to retail customers
PECO Energy Company	Purchase and regulated retail sale of electricity and natural gas	Southeastern Pennsylvania, including the City of Philadelphia (electricity)
	Transmission and distribution of electricity and distribution of natural gas to retail customers	Pennsylvania counties surrounding the City of Philadelphia (natural gas)
Baltimore Gas and Electric Company	Purchase and regulated retail sale of electricity and natural gas	Central Maryland, including the City of Baltimore (electricity and natural gas)
	Transmission and distribution of electricity and distribution of natural gas to retail customers
Pepco Holdings LLC	Utility services holding company engaged, through its reportable segments Pepco, DPL, and ACE	Service Territories of Pepco, DPL, and ACE
Potomac Electric  Power Company	Purchase and regulated retail sale of electricity	District of Columbia, and major portions of Montgomery and Prince George’s Counties, Maryland
	Transmission and distribution of electricity to retail customers
Delmarva Power & Light Company	Purchase and regulated retail sale of electricity and natural gas	Portions of Delaware and Maryland (electricity)
	Transmission and distribution of electricity and distribution of natural gas to retail customers	Portions of New Castle County, Delaware (natural gas)
Atlantic City Electric Company	Purchase and regulated retail sale of electricity	Portions of Southern New Jersey
	Transmission and distribution of electricity to retail customers

Prior Period Adjustments (ACE)

In the first quarter of 2026, management identified an error in the historical rate classification for a limited number of ACE customers that resulted in the overstatement of Regulatory assets and Revenues from alternative revenue programs. Management has concluded that the error was not material to previously issued or to the current period financial statements.

The impact of the error correction recognized in the first quarter of 2026 was a $14 million decrease to ACE’s Revenues from alternative revenue programs, a $4 million decrease to Income taxes, and a corresponding decrease of $14 million in Regulatory assets. The overall impact on ACE’s Operating income was a decrease of $14 million, and the impact on ACE’s Net income was $10 million. The error did not impact any net cash flow subtotal for the three months ended March 31, 2026.

Basis of Presentation (All Registrants)

This is a combined quarterly report of all Registrants. The Notes to the Consolidated Financial Statements apply to the Registrants as indicated parenthetically next to each corresponding disclosure. When appropriate, the Registrants are named specifically for their related activities and disclosures. Each of the Registrants' Consolidated Financial Statements includes the accounts of its subsidiaries. All intercompany transactions have been eliminated.

Through its business services subsidiary, BSC, Exelon provides its subsidiaries with a variety of support services at cost, including legal, human resources, financial, information technology, and supply management services. PHI also has a business services subsidiary, PHISCO, which provides a variety of support services at cost, including legal, finance, engineering, customer operations, transmission and distribution planning, asset management, system operations, and power procurement, to PHI operating Registrants. The costs of BSC and

50

Combined Notes to Consolidated Financial Statements

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

Note 1 — Significant Accounting Policies

PHISCO are directly charged or allocated to the applicable subsidiaries. The results of Exelon’s corporate operations are presented as “Other” within the consolidated financial statements and include intercompany eliminations unless otherwise disclosed.

The accompanying consolidated financial statements as of June 30, 2026 and for the three and six months ended June 30, 2026 and 2025 are unaudited but, in the opinion of each Registrant's management, the Registrants include all adjustments that are considered necessary for a fair statement of the Registrants’ respective financial statements in accordance with GAAP. All adjustments are of a normal, recurring nature, except as otherwise disclosed. The December 31, 2025 Consolidated Balance Sheets were derived from audited financial statements. The interim financial statements are to be read in conjunction with prior annual financial statements and notes. Additionally, financial results for interim periods are not necessarily indicative of results that may be expected for any other interim period or for the fiscal year ending December 31, 2026. These Combined Notes to Consolidated Financial Statements have been prepared pursuant to the rules and regulations of the SEC for Quarterly Reports on Form 10-Q. Certain information and note disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations.

New Accounting Standards (All Registrants)

New Accounting Standards Issued and Not Yet Adopted as of June 30, 2026: The following new authoritative accounting guidance issued by the FASB has not yet been adopted and reflected by the Registrants in their consolidated financial statements as of June 30, 2026. Unless otherwise indicated, the Registrants are currently assessing the impacts such guidance may have (which could be material) in their Consolidated Balance Sheets, Consolidated Statements of Operations and Comprehensive Income, Consolidated Statements of Cash Flows and disclosures, as well as the potential to early adopt where applicable. The Registrants have assessed other FASB issuances of new standards which are not listed below given the current expectation that such standards will not significantly impact the Registrants' financial reporting.

Disaggregation of Income Statement Expenses (Issued November 2024). Provides additional disclosure requirements related to relevant expense captions of income statement expense line items. The revised guidance requires a new tabular disclosure of disaggregated income statement expenses including a break out of (1) purchases of inventory, (2) employee compensation, (3) depreciation, (4) intangible asset amortization, (5) depreciation, depletion, and amortization recognized as part of oil and gas producing activities included in each relevant expense line item on the income statement. The tabular disaggregation should include certain amounts already required to be disclosed under GAAP elsewhere. Any remaining amounts not separately disaggregated quantitatively should include a qualitative description. Additionally, on an annual basis, the standard requires disclosure of management’s definition of selling expenses and the amount of expense. The standard is effective January 1, 2027, with early adoption permitted.

Environmental Credits and Environmental Credit Obligations (Issued May 2026). Establishes guidance for the recognition, measurement, presentation and disclosure of environmental credits and compliance obligations that may be settled by using environmental credits. The guidance is effective for annual and interim periods beginning January 1, 2028 with early adoption permitted. The guidance is adopted on a retrospective basis by recognizing a cumulative effect adjustment to retained earnings at the date of initial application.

2. Regulatory Matters (All Registrants)

As discussed in Note 2 — Regulatory Matters of the 2025 Form 10-K, the Registrants are involved in rate and regulatory proceedings at FERC and their state commissions. The following discusses developments in 2026 and updates to the 2025 Form 10-K.

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 2026.

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	Electric	$	1,487	$	1,045	8.905%	December 19, 2024	January 1, 2024
	April 26, 2024 (amended on September 11, 2024)	Electric	$	624	$	623	9.89%	October 31, 2024	January 1, 2025
PECO - Pennsylvania	March 28, 2024	Electric	$	464	$	354	N/A	December 12, 2024	January 1, 2025
		Natural Gas	$	111	$	78
BGE - Maryland	February 17, 2023	Electric	$	313	$	179	9.50%	December 14, 2023	January 1, 2024
		Natural Gas	$	289	$	229	9.45%
Pepco - District of Columbia	April 13, 2023 (amended February 27, 2024)	Electric	$	186	$	123	9.50%	November 26, 2024	January 1, 2025
Pepco - Maryland	May 16, 2023 (amended February 23, 2024)	Electric	$	111	$	45	9.50%	June 10, 2024	April 1, 2024
DPL - Maryland	May 19, 2022	Electric	$	38	$	29	9.60%	December 14, 2022	January 1, 2023
DPL - Delaware	December 15, 2022 (amended September 29, 2023)	Electric	$	39	$	28	9.60%	April 18, 2024	July 15, 2023
	September 20, 2024 (amended September 5, 2025)	Natural Gas	$	37	$	22	9.60%	December 17, 2025	January 1, 2026
ACE - New Jersey	November 21, 2024	Electric	$	109	$	54	9.60%	November 21, 2025	December 1, 2025

52

Combined Notes to Consolidated Financial Statements — (Continued)

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

Note 2 — Regulatory Matters

Pending Distribution Base Rate Case Proceedings

Registrant/Jurisdiction	Filing Date	Service	Requested Revenue Requirement Increase		Requested ROE	Expected Approval Timing
Pepco - Maryland(a)	October 14, 2025 (amended April 16, 2026)	Electric	$	120	10.50%	Third quarter of 2026
DPL - Delaware(b)	December 9, 2025 (amended June 1, 2026)	Electric	$	45	10.50%	Third quarter of 2027
BGE - Maryland	July 2, 2026	Electric	$	156	10.40%	First quarter of 2027

__________

(a)On April 14, 2026, Pepco notified the MDPSC of pursuing a traditional base rate case.

(b)DPL implemented interim rates on July 9, 2026, subject to refund.

ComEd Distribution Base Rate Case Proceedings

The ICC approved ComEd's four-year MRP for the period January 1, 2024 through December 31, 2027. The MRP was originally approved by the ICC on December 14, 2023 and was subsequently amended on January 10, 2024, April 18, 2024 and December 19, 2024. The December 19, 2024 order provided a total revenue requirement increase of $1.045 billion inclusive of rate increases of approximately $752 million in 2024, $80 million in 2025, $102 million in 2026, and $111 million in 2027.

On December 18, 2025, the ICC approved ComEd's 2024 MRP Reconciliation reflecting a revenue increase of $243 million, including the tax benefit of NOLCs. While NOLCs are included in the MRP Reconciliation per the final order, the impacts of the NOLCs will not be reflected in the financial statements until the PLR is received from the IRS. See Note 6 — Income Taxes for additional information on NOLCs.

On March 20, 2026, ComEd filed its annual revenue balancing reconciliation for 2025. The July 16, 2026 order approved the reconciliation, which is a component of revenue decoupling, reflecting a revenue reduction of $128 million. The reconciliation is effective January 1, 2027.

On May 1, 2026, ComEd filed its 2025 MRP Reconciliation reflecting a revenue increase of $234 million, which includes the tax benefit of NOLCs. While NOLCs were included in the MRP Reconciliation, the impacts of the NOLCs will not be reflected in the financial statements until the PLR is received from the IRS. See Note 6 — Income Taxes for additional information on NOLCs.

PECO Distribution Base Rate Case Proceedings

On December 12, 2024, the PAPUC issued their Opinions and Orders which approved the non-unanimous partial settlements with limited modifications for both the electric and natural gas base rate cases, and denied the Weather Normalization Adjustment requested in the natural gas base rate case.

PECO’s approved annual electric revenue requirement increase of $354 million is partially offset by a one-time credit of $64 million in 2025. In addition, the PAPUC approved the recovery of storm damage costs incurred by PECO in January 2024, up to $23 million, subject to review for reasonableness and prudency in PECO’s next distribution rate case.

BGE Distribution Base Rate Case Proceedings

In February 2023, BGE filed its three-year cumulative multi-year plan for January 1, 2024 through December 31, 2026 to the MDPSC, which was approved in December 2023 and went into effect on January 1, 2024. The MDSPC awarded BGE electric revenue requirement increases of $41 million, $113 million, and $25 million with an approved ROE of 9.50% in 2024, 2025, and 2026, respectively, and natural gas revenue requirement increases of $126 million, $62 million, and $41 million with an approved ROE of 9.45% in 2024, 2025, and 2026,

53

Combined Notes to Consolidated Financial Statements — (Continued)

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

Note 2 — Regulatory Matters

respectively. The requested revenue requirement increases will be used to recover capital investments designed to increase the resilience of the electric and gas distribution systems and support Maryland's climate and regulatory initiatives.

The MDPSC also approved a portion of the requested 2021 and 2022 reconciliation amounts, which were recovered through separate electric and gas riders between March 2024 and February 2025. As such, the reconciliation amounts are not included in the approved revenue increases. The 2021 reconciliation amounts are $13 million and $7 million for electric and gas, respectively, and the 2022 reconciliation amounts are $39 million and $15 million for electric and gas, respectively. In April 2024, BGE filed with the MDPSC its request for recovery of the 2023 reconciliation amounts of $79 million and $73 million for electric and gas, respectively, with supporting testimony and schedules. In December 2025, the MDPSC authorized BGE to recover $31 million and $46 million for electric and gas, respectively, beginning in February 2026 and extending through December 2027, in the reconciliation rider. In addition to the amounts approved in the reconciliation rider, the MDPSC provided for additional regulatory assets related to minor storms of $24 million (to be recovered over 5 years) and the Baltimore City conduit of $4 million. Recovery of these two regulatory assets was requested in BGE's recent MDPSC rate case filing submitted on July 2, 2026.

Pepco District of Columbia Distribution Base Rate Case Proceedings

On April 13, 2023, Pepco filed an electric base rate case with the DCPSC (amended February 27, 2024) requesting a total revenue requirement increase of $186 million and an ROE of 10.50%. The DCPSC issued an order approving the two-year cumulative multi-year plan on November 26, 2024, which included a total revenue requirement increase of $123 million with an ROE of 9.50% effective January 1, 2025 through December 31, 2026. The DCPSC awarded Pepco electric incremental revenue requirement increases of $99 million and $24 million for 2025 and 2026, respectively. Subsequent to DCPSC approval of the order, interveners appealed the order on several grounds including that the DCPSC did not hold evidentiary hearings. On March 5, 2026, the District of Columbia Court of Appeals remanded the November 26, 2024, order back to the DCPSC to hold evidentiary hearings. On May 8, 2026, the DCPSC issued an order adopting a revised procedural schedule which additionally reaffirmed that current rates should remain in effect during the remand period and refunds for previous amounts collected are not required at this time. On June 30, 2026, the Commission issued a subsequent order revising the procedural schedule to update the due date for final briefs. Pepco is preparing for the proceeding and will continue to monitor developments.

Pepco Maryland Distribution Base Rate Case Proceedings

On May 16, 2023, Pepco filed an electric base rate case with the MDPSC (amended February 23, 2024) requesting a total revenue requirement increase of $111 million (before offsets) and an ROE of 10.50%. The MDPSC issued an order on June 10, 2024 awarding Pepco a one-year multi-year plan for April 1, 2024 through March 31, 2025 which included an incremental revenue requirement increase of $45 million and an ROE of 9.50%. The MDPSC did not adopt the requested revenue requirement increases of $80 million (before offsets), $51 million, and $14 million as filed for 2025, 2026, and the 2027 nine-month extension period, respectively. The MDPSC also approved the requested reconciliation amounts for the 12-month periods ending March 31, 2022, and March 31, 2023, which will be recovered through a rider between August 2024 through March 2026. As such, the reconciliation amounts are not included in the approved revenue requirement increases. The reconciliation amounts are $1 million and $7 million, for the 12-month periods ending March 31, 2022, and March 31, 2023, respectively. In July 2024, Pepco filed its request with the MDPSC, for recovery of the reconciliation amounts of $31 million for the 12-month period ended March 31, 2024, with supporting testimony and schedules. On March 31, 2026, the MDPSC issued an order authorizing Pepco to recover approximately $13 million through the reconciliation rider. This will be recovered through rates between May 2026 through April 2027. Additionally, the order disallowed the recovery of various assets. The order resulted in the write off of $11 million of Regulatory assets and $15 million of Property, plant and equipment with a total of $26 million recorded in Operations and maintenance expense.

DPL Maryland Distribution Base Rate Case Proceedings

On May 19, 2022, DPL filed an electric base rate case with the MDPSC requesting a total revenue requirement increase of $38 million based on an ROE of 10.25%. On December 14, 2022, the MDPSC issued an order awarding DPL a total revenue requirement increase of $29 million with an ROE of 9.60%. The order reflects a three-year cumulative multi-year plan for January 1, 2023 through December 31, 2025, with rates remaining in

54

Combined Notes to Consolidated Financial Statements — (Continued)

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

Note 2 — Regulatory Matters

effect subsequent to the multi-year plan period. The MDPSC awarded DPL electric incremental revenue requirement increases of $17 million, $6 million, and $6 million for 2023, 2024, and 2025, respectively.

DPL Delaware Distribution Base Rate Case Proceedings

On December 15, 2022, DPL filed an electric base rate case with the DEPSC (amended September 29, 2023) requesting a total revenue requirement increase of $39 million and an ROE of 10.50%. On April 18, 2024, the DEPSC issued an order awarding DPL a total revenue requirement increase of $28 million with an ROE of 9.60%, effective July 15, 2023. As part of the approved order, the DEPSC approved the Significant Storm Expense Rate Rider (Rider SSER) which will allow DPL to recover expenses associated with qualified storms. A qualified storm will be an individual storm for which DPL incurs expenses between $5 million and $15 million. The Rider SSER allows DPL to recover significant storm damage expenses for the previous 12-month period over a future 24-month period. For individual storm events for which DPL incurs expenses of more than $15 million, the future recovery period will be evaluated on a case-by-case basis and the unamortized balance will earn a return at DPL's authorized long-term cost of debt. The Rider SSER will have an annual true-up filing, subject to DEPSC review and approval.

ACE New Jersey Distribution Base Rate Case Proceedings

On November 21, 2024, ACE filed an electric base rate case with the NJBPU requesting a total revenue requirement increase of $109 million, before NJ sales and use tax, and an ROE of 10.70%. On November 21, 2025, the NJBPU issued an order awarding ACE an electric revenue requirement increase, before NJ sales and use tax, of $54 million effective December 1, 2025, with an ROE of 9.60%. In addition, the NJBPU approved the recovery through a regulatory asset of work stoppage costs that were incurred by ACE in 2023 of $38 million.

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 ComEd is based on prior year actual costs and current year projected capital additions (initial year revenue requirement). The annual update for PECO is based on prior year actual costs and current year projected capital additions, accumulated depreciation, and accumulated deferred income taxes. The annual update for BGE, Pepco, DPL, and ACE 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 ComEd, PECO, BGE, Pepco, DPL, and ACE also reconciles any differences between the actual costs and actual revenues for the calendar year (annual reconciliation).

For 2026, the following increases/(decreases) were included in the Utility Registrants' electric transmission formula rate updates:

Registrant(a)	Initial Revenue Requirement Increase (Decrease)		Annual Reconciliation (Decrease) Increase		Total Revenue Requirement (Decrease) Increase(b)			Allowed Return on Rate Base(c)		Allowed ROE(d)
ComEd	$	31	$	(52)	$	(21)		8.15	%	11.50	%
PECO	$	20	$	20	$	40		7.62	%	10.35	%
BGE	$	16	$	(40)	$	(30)	(e)	7.51	%	10.50	%
Pepco	$	12	$	(21)	$	(9)		7.72	%	10.50	%
DPL	$	3	$	1	$	4		7.53	%	10.50	%
ACE	$	1	$	16	$	17		7.26	%	10.50	%

__________

(a)All rates are effective June 1, 2026 - May 31, 2027, subject to review by interested parties pursuant to review protocols of each Utility Registrants' tariffs.

(b)For the Utility Registrants, except for PECO, 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.

55

Combined Notes to Consolidated Financial Statements — (Continued)

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

Note 2 — Regulatory Matters

(d)The rate of return on common equity for each Utility Registrant includes a 50-basis-point incentive adder for being a voluntary member of an RTO. Recently passed legislation in Maryland and New Jersey requires utilities to become a member of an RTO.

(e)The decrease in BGE's transmission revenue requirement includes a $6 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 (2024-2027 Grid Plan), also filed on January 17, covering planned investments on the electric distribution system within ComEd’s service area through 2027. Costs incurred during each year of the MRP are subject to ICC review and the plan’s revenue requirement for each year will be reconciled with the actual costs that the ICC determines are prudently and reasonably incurred for that year. The reconciliation is subject to adjustment for certain costs, including a limitation on recovery of costs that are more than 105% of certain costs in the previously approved MRP revenue requirement, absent a modification of the rate plan itself. Thus, for example, the rate adjustments necessary to reconcile 2024 revenues to ComEd’s actual 2024 costs incurred would take effect in January 2026 after the ICC’s review during 2025.

On December 14, 2023, the ICC issued a final order. The ICC rejected ComEd’s 2024-2027 Grid Plan as non-compliant with certain requirements of CEJA and required ComEd to file a revised 2024-2027 Grid Plan. On January 10, 2024, ComEd filed an appeal in the Illinois Appellate Court of portions of the ICC's December 2023 order, including but not limited to the allowed ROE, 50% equity ratio, and denial of a return on ComEd’s pension asset. There is no deadline by when the appellate court must rule. On March 13, 2024, ComEd filed its Refiled 2024-2027 Grid Plan with supporting testimony and schedules with the ICC and subsequently on March 15, 2024, ComEd also filed a petition to adjust its MRP to authorize increased rates consistent with the Refiled 2024-2027 Grid Plan. On December 19, 2024, the ICC approved the Refiled 2024-2027 Grid Plan and adjusted the approved MRP with rates effective on January 1, 2025. The final approved MRP, as adjusted, which reflects the Refiled Grid Plan, resulted in a total cumulative revenue requirement increase of $1.045 billion over the 2024-2027 plan years and remains subject to annual reconciliations in accordance with CEJA. ComEd filed timely requests for rehearing and an appeal of the MRP order, again limited to the issues on which rehearing of the December 2023 order was denied, including the allowed ROE, 50% equity ratio, and denial of a return on ComEd's pension asset.

On January 16, 2026, ComEd filed a multi-year integrated grid plan (2028-2031 Grid Plan), seeking approval for planned investments on the electric distribution system within ComEd's service area in 2028-2031. The ICC must issue an order by December 15, 2026.

Carbon Mitigation Credit

CEJA establishes decarbonization requirements for Illinois as well as programs to support the retention and development of emissions-free sources of electricity. ComEd is required to purchase CMCs from participating nuclear power generating facilities between June 1, 2022 and May 31, 2027. The price to be paid for each CMC was established through a competitive bidding process that included consumer-protection measures that capped the maximum acceptable bid amount and a formula that reduces CMC prices by an energy price index, the base residual auction capacity price in the ComEd zone of PJM, and the monetized value of any federal tax credit or other subsidy if applicable. On October 31, 2025, the seller provided notification to ComEd and the IPA that it has reflected on its 2024 federal tax return $804 million of nuclear production tax credits associated with its

56

Combined Notes to Consolidated Financial Statements — (Continued)

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

Note 2 — Regulatory Matters

participating nuclear power generating facilities. These amounts will be collected from the seller through an adjustment to the CMC price to be paid by ComEd and returned to customers in 2026. As of December 31, 2025, Exelon and ComEd's Consolidated Balance Sheets reflected these amounts as a receivable from the seller with an offsetting balance within the Carbon mitigation credit regulatory liability. These adjustments had no net impact on Exelon and ComEd’s Consolidated Statements of Operations and Comprehensive Income. The seller has not provided notification to ComEd or the IPA that any subsidies or tax credits, such as nuclear production tax credits, have been monetized for 2025. The consumer protection measures contained in CEJA will result in net payments to ComEd ratepayers if the energy index, the capacity price and applicable federal tax credits or subsidy exceed the CMC contract price. Beginning with the June 2022 monthly billing period, ComEd began issuing credits and/or charges to its retail customers under its CMC rider, the Rider Carbon-Free Resource Adjustment (Rider CFRA). A regulatory asset or liability is recorded for the difference between ComEd's costs associated with the procurement of CMCs from participating nuclear power generating facilities and revenues received from customers. The balance of the asset as of June 30, 2026 is $150 million.

On February 2, 2024, ComEd filed a petition with the ICC to initiate the reconciliation proceeding for the costs incurred in connection with the procurement of CMC’s during the delivery year beginning June 1, 2022 and extending through May 31, 2023. While both Staff and the Administrative Law Judge's proposed order supported ComEd’s proposed reconciliation adjustment, on September 4, 2025, the ICC issued its final order rejecting the proposed reconciliation adjustment. Specifically, the order disallowed portions of the administrative costs as well as a portion of ComEd's interest costs on the balance of credit extended to customers under the applicable tariff that were not yet funded by payments from the generator. The CMC costs themselves were not disallowed. The order resulted in an immaterial impact to the financial statements and on October 3, 2025 ComEd filed its Application for Rehearing. On October 16, 2025, the ICC denied ComEd's Application. On October 17, 2025, ComEd filed its appeal with the Illinois Appellate Court for review of the ICC's order and its denial of rehearing.

Energy Efficiency

CEJA extends ComEd’s current cumulative annual energy efficiency MWh savings goals through 2040, adds expanded electrification measures to those goals, increases low-income commitments, and adds a new performance adjustment to the energy efficiency formula rate. ComEd expects its annual spend to increase through 2040 to achieve these energy efficiency MWh savings goals, which is deferred as a separate regulatory asset that is recovered through the energy efficiency formula rate over the weighted average useful life, as approved by the ICC, of the related energy efficiency measures.

Energy Efficiency Formula Rate (Exelon and ComEd). In 2026, Illinois enacted the CRGA, which makes certain changes to the energy efficiency framework established under CEJA.

CRGA modifies the manner in which ComEd’s energy efficiency savings goals are calculated by establishing a flat incremental annual savings requirement that applies indefinitely. CRGA also increases energy efficiency budget and low‑income commitments from levels established under CEJA, expands the categories of savings that may be credited toward annual goals, and revises the return on equity applicable to the energy efficiency regulatory asset to align with the distribution return on equity.

ComEd filed its annual energy efficiency formula rate update with the ICC on May 29, 2026. The filing establishes the revenue requirement used to set the rates that will take effect in January 2027, subject to the ICC's review and approval. The requested revenue requirement update is based on a reconciliation of the 2025 actual costs plus projected 2027 expenditures.

Initial Revenue Requirement Increase		Annual Reconciliation Decrease		Total Revenue Requirement Decrease		Requested Return on Rate Base(a)		Requested ROE
$	28	$	(56)	$	(28)	6.62	%	8.905	%

__________

(a)The requested revenue requirement increase provides for a weighted average debt and equity return on the energy efficiency regulatory asset and rate base of 6.62% inclusive of an allowed ROE of 8.905%. For the 2025 reconciliation year, the requested revenue requirement provides for a weighted average debt and equity return on the energy efficiency regulatory asset and rate base of 7.67% inclusive of an allowed ROE of 11.0%, which includes an upward performance adjustment that increased the ROE. The performance adjustment can either increase or decrease the ROE based upon the achievement of energy efficiency savings goals.

57

Combined Notes to Consolidated Financial Statements — (Continued)

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

Note 2 — Regulatory Matters

Beginning in 2027, ComEd expects that implementation of CRGA may result in higher annual energy efficiency spending. Incremental costs incurred in advance of recovery are expected to be deferred as a regulatory asset and recovered through ComEd’s energy efficiency formula rate over the weighted‑average useful life of the related measures, subject to approval by the Illinois Commerce Commission.

Maryland Regulatory Matters

Summer and Winter Rate Mitigation (Exelon, BGE, PHI, Pepco, and DPL). As part of the passing of the Next Generation Energy Act of 2025 by the Maryland General Assembly, the MDPSC issued an order on June 26, 2025, to implement the Legislative Energy Relief Refund program under which bill credits were distributed to residential customers based on their consumption of electricity supply that was subject to the renewable energy portfolio standard. On July 24, 2025, the MDPSC issued an order accepting BGE, Pepco, and DPL's proposal for the implementation of the program. As a result, BGE, Pepco, and DPL received $49 million, $21 million, and $8 million, respectively, from the MDPSC on February 3, 2026. These amounts were used to reduce residential customer account receivable balances within the first quarter of 2026.

Maryland Utility Relief Act (Exelon, BGE, PHI, Pepco, and DPL). On May 12, 2026, the Governor of Maryland signed into law legislation that addresses several matters pertaining to electric and gas utilities, including a moratorium on rate cases with forecasted test years until April 1, 2027. Additionally, BGE, Pepco and DPL are required to participate as a member in an RTO effective July 1, 2026, which resulted in a complaint filed on July 2, 2026 against Maryland Transmission Operators, including BGE, Pepco, and DPL, at FERC for the removal of the 50-basis-point incentive adder in the transmission formula rates. The final outcome and resolution of the complaint filing cannot be predicted and the results are not expected to be material to Exelon, BGE, PHI, Pepco, and DPL financial statements.

Delaware Regulatory Matters

Delaware Senate Bill 326 (Exelon, PHI, and DPL). On July 13, 2026, the Governor of Delaware signed into law legislation that addresses several matters pertaining to public utility companies. As part of the law, DPL’s non-mandatory capital spend eligible to be recovered in rates will be limited to $70 million in each of the years ended 2026 and 2027 unless the spend falls within an exception or the commission orders otherwise. Further, beginning in 2028, DPL’s non-mandatory capital spend eligible to be recovered in rates shall not exceed 5% of DPL’s rate base approved in its most recent base rate case. The legislation also modifies the timing of interim rate recovery in base rate case proceedings. If the DEPSC has not issued a decision within 7 months of a filing, DPL may implement 50% of the proposed rate increase, subject to refund. If no decision has been issued after 12 months, DPL may implement 75% of the proposed increase, also subject to refund. DPL is continuing to evaluate the overall potential impacts of the legislation and will continue to monitor related regulatory developments.

New Jersey Regulatory Matters

New Jersey Repeal RTO Adder Bill (Exelon, PHI, and ACE). On July 7, 2026, the Governor of New Jersey signed into law legislation that addresses several matters pertaining to electric utility companies. As part of the legislation ACE is required to participate as a member in an RTO effective January 1, 2027, which could result in a complaint filed for the removal of the 50-basis-point incentive adder in the transmission formula rates.

58

Combined Notes to Consolidated Financial Statements — (Continued)

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

Note 2 — Regulatory Matters

Other Federal Regulatory Matters

PJM Cost Allocation Methodology (All Registrants). On March 6, 2026, FERC issued an order requiring the removal of the de minimis threshold exemption in the calculation of the cost responsibility of certain transmission reliability upgrade costs allocated to the rate zones of PJM Transmission Owners, including the Utility Registrants. FERC further ordered PJM to recalculate historical cost allocations for the period beginning June 18, 2015, and to pass through additional charges or payments to PJM customers, including Utility Registrants, as applicable, with interest within 90 days. On April 29, 2026, the time for those calculations was extended until further order from FERC. The Utility Registrants expect to recover any incremental charges incurred or reimburse any payments received through prospective electric customer rates. On April 6, 2026, a number of parties filed requests for rehearing or clarification, which were denied by operation of law on May 7, 2026. On May 12, 2026, PJM Transmission Owners, including Exelon, on behalf of the Utility Registrants, filed a petition for review at the United States Court of Appeals for the D.C. Circuit.

The final impacts of the decision cannot be predicted and the results, while not reasonably estimable at this time, could be material to the financial statements.

Regulatory Assets and Liabilities

The Utility Registrants' regulatory assets and liabilities have not changed materially since December 31, 2025, unless noted below. See Note 2 — Regulatory Matters of the 2025 Form 10-K for additional information on the specific regulatory assets and liabilities.

ComEd. Regulatory assets increased $223 million primarily due to an increase of $150 million in the Carbon mitigation credit regulatory asset. Regulatory liabilities decreased $72 million primarily due to a decrease of $670 million in the Carbon mitigation credit regulatory liability, partially offset by an increase of $325 million in the Decommissioning the Regulatory Agreement Units regulatory liability.

PECO. Regulatory assets increased $151 million primarily due to an increase of $102 million in the Deferred income taxes regulatory asset. Regulatory liabilities increased $189 million primarily due to an increase of $200 million in the Decommissioning the Regulatory Agreement Units.

BGE. Regulatory assets decreased $104 million primarily due to a decrease of $52 million in the Electric energy and natural gas costs regulatory asset and a decrease of $47 million in the Energy efficiency and demand response programs regulatory asset. Regulatory liabilities decreased $33 million primarily due to a decrease of $36 million in the Deferred income taxes regulatory liability.

Pepco. Regulatory assets decreased $34 million primarily due to a decrease of $34 million in the Energy efficiency and demand response programs regulatory asset. Regulatory liabilities increased $12 million primarily due to an increase of $23 million in the Removal costs regulatory liability, partially offset by a decrease of $17 million in the Deferred income taxes regulatory liability.

DPL. Regulatory assets increased $11 million primarily due to an increase of $12 million in the Electric energy and natural gas costs regulatory asset and an increase of $10 million in the Removal costs regulatory asset, partially offset by a decrease of $17 million in the Energy efficiency and demand response programs regulatory asset.

ACE. Regulatory assets increased $11 million primarily due to an increase of $34 million in the Energy efficiency and demand response programs regulatory asset and an increase of $23 million in the Deferred storm costs regulatory asset, partially offset by a decrease of $38 million in the Under-recovered revenue decoupling regulatory asset. Regulatory liabilities increased $46 million primarily due to an increase of $34 million in the Zero emissions credit regulatory liability and an increase of $25 million in the Electric energy and natural gas costs regulatory liability, partially offset by a decrease of $10 million in the Transmission formula rate annual reconciliations regulatory liability.

59

Combined Notes to Consolidated Financial Statements — (Continued)

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

Note 2 — Regulatory Matters

Capitalized Ratemaking Amounts Not Recognized

The following table presents authorized amounts capitalized for ratemaking purposes related to earnings on shareholders' investment that are not recognized for financial reporting purposes in the Registrants' Consolidated Balance Sheets. These amounts will be recognized as revenues in the related Consolidated Statements of Operations and Comprehensive Income in the periods they are billable to the Utility Registrants' customers. PECO had no related amounts at June 30, 2026 and December 31, 2025.

	Exelon		ComEd(a)		BGE(b)		PHI		Pepco(c)		DPL(d)		ACE(e)
June 30, 2026	$	72	$	10	$	34	$	28	$	12	$	—	$	16
December 31, 2025	98		12		47		39		22		1		16

__________

(a)For the six months ended June 30, 2026, reflects ComEd's unrecognized equity returns earned for ratemaking purposes on its electric distribution rate, distributed generation, and energy efficiency regulatory assets. For the year ended December 31, 2025, reflects ComEd's unrecognized equity returns earned for ratemaking purposes on its electric distribution rates and distributed generation regulatory assets.

(b)BGE's amount capitalized for ratemaking purposes primarily relates to investments in rate base included in the multi-year plan reconciliations.

(c)Pepco's authorized amounts capitalized for ratemaking purposes relate to earnings on shareholders' investment on AMI programs, Energy efficiency and demand response programs, investments in rate base and revenues included in the multi-year plan reconciliations, and a portion of Pepco District of Columbia's revenue decoupling.

(d)DPL's authorized amounts capitalized for ratemaking purposes relate to earnings on shareholders' investment on AMI programs and Energy efficiency and demand response programs.

(e)ACE's authorized amounts capitalized for ratemaking purposes primarily relate to earnings on shareholders' investment on AMI programs.

3. Revenue from Contracts with Customers (All Registrants)

The Registrants recognize revenue from contracts with customers to depict the transfer of goods or services to customers at an amount that the entities expect to be entitled to in exchange for those goods or services. The primary sources of revenue include regulated electric and gas tariff sales, distribution, and transmission services.

See Note 3 — Revenue from Contracts with Customers of the 2025 Form 10-K for additional information regarding the primary sources of revenue for the Registrants.

Contract Liabilities

The Registrants record contract liabilities when consideration is received or due prior to the satisfaction of the performance obligations. The Registrants record contract liabilities in Other current liabilities and Other noncurrent deferred credits and other liabilities in their Consolidated Balance Sheets.

For Pepco, DPL, and ACE these contract liabilities primarily relate to upfront consideration received in the third quarter of 2020 for a collaborative arrangement ("Agreement") with an unrelated owner and manager of communication infrastructure, as well as additional consideration received for the payment option amendment ("Amendment") executed during the fourth quarter of 2023, which is discussed in further detail within Note 3 — Revenue from Contracts with Customers of the 2025 Form 10-K. The contract liability balance attributable to the Agreement and the Amendment is being recognized as Electric operating revenues over a 35 year period and 31 year period, respectively.

The following table provides a rollforward of the contract liabilities reflected in Exelon's, PHI's, Pepco's, DPL's, and ACE's Consolidated Balance Sheets for the three and six months ended June 30, 2026 and 2025. At June 30, 2026 and December 31, 2025, ComEd's, PECO's, and BGE's contract liabilities were immaterial.

60

Combined Notes to Consolidated Financial Statements — (Continued)

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

Note 3 — Revenue from Contracts with Customers

	Exelon(a)		PHI(a)		Pepco(a)		DPL(a)		ACE
Balance at December 31, 2025	$	119	$	119	$	95	$	12	$	12
Revenues recognized	(1)		(1)		(1)		—		—
Balance at March 31, 2026	$	118	$	118	$	94	$	12	$	12
Revenues recognized	(1)		(1)		(1)		—		—
Balance at June 30, 2026	$	117	$	117	$	93	$	12	$	12
	Exelon(a)		PHI(a)		Pepco(a)		DPL(a)		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
Revenues recognized	(3)		(3)		(2)		(1)		—
Balance at June 30, 2025	$	123	$	123	$	98	$	12	$	13

__________

(a)Revenues recognized in the three and six months ended June 30, 2026 and 2025, were included in the contract liabilities at December 31, 2025 and 2024, respectively.

Transaction Price Allocated to Remaining Performance Obligations

The following table shows the amounts of future revenues expected to be recorded in each year for performance obligations that are unsatisfied or partially unsatisfied as of June 30, 2026. This disclosure only includes contracts for which the total consideration is fixed and determinable at contract inception. The average contract term varies by customer type and commodity but ranges from one month to several years.

This disclosure excludes the Utility Registrants' gas and electric tariff sales contracts and transmission revenue contracts as they generally have an original expected duration of one year or less and, therefore, do not contain any future, unsatisfied performance obligations to be included in this disclosure. This disclosure also excludes transmission service agreements as the total consideration is not fixed and determinable at contract inception.

Year	Exelon		PHI		Pepco		DPL		ACE
2026	$	3	$	3	$	3	$	—	$	—
2027	6		6		5		1		—
2028	6		6		5		—		1
2029	7		7		6		1		—
2030 and thereafter	95		95		74		10		11
Total	$	117	$	117	$	93	$	12	$	12

Revenue Disaggregation

The Registrants disaggregate revenue recognized from contracts with customers into categories that depict how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors. See Note 4 — Segment Information for the presentation of the Registrants' revenue disaggregation.

61

Combined Notes to Consolidated Financial Statements — (Continued)

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

Note 4 — Segment Information

4. Segment Information (All Registrants)

Operating segments for each of the Registrants are determined based on information used by the CODMs in deciding how to evaluate performance and allocate resources at each of the Registrants. The Chief Executive Officer is the CODM for Exelon. For PHI and each of the Utility Registrants, CODM responsibilities are shared by Exelon's Chief Operating Officer and the Utility Registrant's Chief Executive Officer.

Exelon has six reportable segments, which include ComEd, PECO, BGE, and PHI's three reportable segments consisting of Pepco, DPL, and ACE. ComEd, PECO, BGE, Pepco, DPL, and ACE each represent a single reportable segment, and as such, no separate segment information is provided for these Registrants. Exelon, ComEd, PECO, BGE, PHI, Pepco, DPL, and ACE's CODMs rely on a variety of business considerations, including net income, in evaluating segment performance, determining reinvestment of profits, and establishing the amounts of dividend distributions.

An analysis and reconciliation of the Registrants’ reportable segment information to the respective information in the consolidated financial statements for the three and six months ended June 30, 2026 and 2025 is as follows:

Three Months Ended June 30, 2026 and 2025

	ComEd		PECO		BGE		PHI		Other(a)		Intersegment Eliminations		Exelon
Operating revenues(b):
2026
Electric revenues	$	1,985	$	941	$	1,050	$	1,670	$	—	$	(7)	$	5,639
Natural gas revenues	—		121		168		40		—		(1)		328
Shared service and other revenues	—		—		—		2		471		(473)		—
Total operating revenues	$	1,985	$	1,062	$	1,218	$	1,712	$	471	$	(481)	$	5,967
2025
Electric revenues	$	1,836	$	880	$	849	$	1,544	$	—	$	(13)	$	5,096
Natural gas revenues	—		120		180		33		—		(2)		331
Shared service and other revenues	—		—		—		2		468		(470)		—
Total operating revenues	$	1,836	$	1,000	$	1,029	$	1,579	$	468	$	(485)	$	5,427
Less:
Purchased power
2026	$	579	$	352	$	522	$	679	$	—	$	—	$	2,132
2025	550		304		367		590		—		—		1,811
Purchased fuel
2026	$	—	$	37	$	23	$	19	$	—	$	—	$	79
2025	—		35		39		11		—		—		85
Operating and maintenance
2026	$	339	$	232	$	222	$	337	$	430	$	(174)	$	1,386
2025	322		242		201		291		477		(212)		1,321
Operating and maintenance from affiliates
2026	$	110	$	68	$	71	$	58	$	11	$	(318)	$	—
2025	100		63		63		49		10		(285)		—
Depreciation and amortization
2026	$	416	$	125	$	166	$	245	$	16	$	—	$	968

62

Combined Notes to Consolidated Financial Statements — (Continued)

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

Note 4 — Segment Information

2025	387		112		154		233		16		—		902
Taxes other than income taxes
2026	$	107	$	62	$	96	$	145	$	13	$	—	$	423
2025	97		54		85		136		11		—		383
(Gain) on sale of assets
2026	$	—	$	—	$	—	$	—	$	—	$	—	$	—
2025	—		—		—		(2)		—		—		(2)
Interest expense, net(c)
2026	$	140	$	70	$	68	$	107	$	183	$	—	$	568
2025	128		57		61		102		176		—		524
Interest expense to affiliates, net(c)
2026	$	3	$	2	$	—	$	1	$	—	$	—	$	6
2025	3		3		—		1		—		—		7
Other, net
2026	$	(41)	$	(13)	$	(22)	$	(20)	$	(5)	$	11	$	(90)
2025	(31)		(10)		(11)		(17)		(8)		12		(65)
Income Taxes
2026	$	83	$	8	$	17	$	32	$	(41)	$	—	$	99
2025	52		4		15		42		(43)		—		70
Net income (loss) attributable to common shareholders
2026	$	249	$	119	$	55	$	109	$	(136)	$	—	$	396
2025	228		136		55		143		(171)		—		391
Supplemental segment information
Intersegment revenues(d)
2026	$	2	$	3	$	3	$	2	$	469	$	(479)	$	—
2025	10		3		2		2		466		(483)		—
Capital Expenditures
2026	$	786	$	495	$	385	$	504	$	30	$	—	$	2,200
2025	599		408		398		595		13		—		2,013

__________

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

(b)Includes gross utility tax receipts from customers. The offsetting remittance of utility taxes to the governing bodies is recorded in Taxes other than income taxes in the Registrants’ Consolidated Statements of Operations and Comprehensive Income. See Note 14 — Supplemental Financial Information for additional information on total utility taxes.

(c)Interest expense, net and Interest expense to affiliates, net are primarily inclusive of Interest expense, which is partially offset by an immaterial amount of Interest income.

(d)See Note 15 — Related Party Transactions for additional information on intersegment revenues.

PHI:

	Pepco		DPL		ACE		Other(a)		Intersegment Eliminations		PHI
Operating revenues(b):
2026
Electric revenues	$	859	$	414	$	401	$	—	$	(4)	$	1,670
Natural gas revenues	—		40		—		—		—		40
Shared service and other revenues	—		—		—		120		(118)		2
Total operating revenues	$	859	$	454	$	401	$	120	$	(122)	$	1,712
2025
Electric revenues	$	776	$	388	$	384	$	—	$	(4)	$	1,544
Natural gas revenues	—		33		—		—		—		33
Shared service and other revenues	—		—		—		111		(109)		2

63

Combined Notes to Consolidated Financial Statements — (Continued)

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

Note 4 — Segment Information

Total operating revenues	$	776	$	421	$	384	$	111	$	(113)	$	1,579
Less:
Purchased power
2026	$	316	$	176	$	187	$	—	$	—	$	679
2025	256		161		173		—		—		590
Purchased fuel
2026	$	—	$	19	$	—	$	—	$	—	$	19
2025	—		11		—		—		—		11
Operating and maintenance
2026	$	118	$	62	$	55	$	102	$	—	$	337
2025	91		50		55		95		—		291
Operating and maintenance from affiliates
2026	$	72	$	50	$	44	$	14	$	(122)	$	58
2025	64		45		40		13		(113)		49
Depreciation and amortization
2026	$	114	$	67	$	63	$	1	$	—	$	245
2025	107		63		62		1		—		233
Taxes other than income taxes
2026	$	113	$	24	$	3	$	5	$	—	$	145
2025	109		20		3		4		—		136
(Gain) on sale of assets
2026	$	—	$	—	$	—	$	—	$	—	$	—
2025	(2)		—		—		—		—		(2)
Interest expense, net(c)
2026	$	56	$	26	$	22	$	3	$	—	$	107
2025	54		25		20		3		—		102
Interest expense to affiliates, net(c)
2026	$	—	$	—	$	—	$	1	$	—	$	1
2025	—		—		—		1		—		1
Other, net
2026	$	(12)	$	(4)	$	(3)	$	(1)	$	—	$	(20)
2025	(9)		(4)		(2)		(2)		—		(17)
Income Taxes
2026	$	17	$	8	$	8	$	(1)	$	—	$	32
2025	22		11		9		—		—		42
Net income (loss) attributable to common shareholders
2026	$	65	$	26	$	22	$	(4)	$	—	$	109
2025	84		39		24		(4)		—		143
Supplemental segment information
Intersegment revenues(d)
2026	$	1	$	2	$	1	$	119	$	(121)	$	2
2025	1		2		—		111		(112)		2
Capital Expenditures
2026	$	232	$	153	$	118	$	1	$	—	$	504

64

Combined Notes to Consolidated Financial Statements — (Continued)

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

Note 4 — Segment Information

2025 229  121  91  154  —  595 

__________

(a)Other primarily includes PHI’s corporate operations, shared service entities, and other financing and investment activities.

(b)Includes gross utility tax receipts from customers. The offsetting remittance of utility taxes to the governing bodies is recorded in Taxes other than income taxes in the Registrants’ Consolidated Statements of Operations and Comprehensive Income. See Note 14 — Supplemental Financial Information for additional information on total utility taxes.

(c)Interest expense, net and Interest expense to affiliates, net are primarily inclusive of Interest expense, which is partially offset by an immaterial amount of Interest income.

(d)Includes intersegment revenues with ComEd, PECO, and BGE, which are eliminated at Exelon.

Electric and Gas Revenue by Customer Class (Utility Registrants):

The following tables disaggregate the Registrants' revenues recognized from contracts with customers into categories that depict how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors. For the Utility Registrants, the disaggregation of revenues reflects the two primary utility services of electric sales and natural gas sales (where applicable), with further disaggregation of these tariff sales provided by major customer groups. Exelon’s disaggregated revenues are consistent with the Utility Registrants, but exclude any intercompany revenues.

	Three Months Ended June 30, 2026
Revenues from contracts with customers	ComEd		PECO		BGE		PHI		Pepco		DPL		ACE
Electric revenues
Residential	$	1,101	$	601	$	641	$	867	$	396	$	230	$	241
Small commercial & industrial	527		157		108		180		49		66		65
Large commercial & industrial	131		85		161		397		321		33		43
Public authorities & electric railroads	12		9		8		20		11		4		5
Other(a)	255		77		121		228		94		78		58
Total electric revenues(b)	$	2,026	$	929	$	1,039	$	1,692	$	871	$	411	$	412
Natural gas revenues
Residential	$	—	$	84	$	93	$	18	$	—	$	18	$	—
Small commercial & industrial	—		29		17		9		—		9		—
Large commercial & industrial	—		—		48		1		—		1		—
Transportation	—		6		—		4		—		4		—
Other(c)	—		1		7		8		—		8		—
Total natural gas revenues(d)	$	—	$	120	$	165	$	40	$	—	$	40	$	—
Total revenues from contracts with customers	$	2,026	$	1,049	$	1,204	$	1,732	$	871	$	451	$	412
Other revenues
Revenues from alternative revenue programs	$	(55)	$	5	$	5	$	(24)	$	(15)	$	2	$	(11)
Other electric revenues(e)	14		7		7		4		3		1		—
Other natural gas revenues(e)	—		1		2		—		—		—		—
Total other revenues	$	(41)	$	13	$	14	$	(20)	$	(12)	$	3	$	(11)
Total revenues for reportable segments	$	1,985	$	1,062	$	1,218	$	1,712	$	859	$	454	$	401

65

Combined Notes to Consolidated Financial Statements — (Continued)

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

Note 4 — Segment Information

	Three Months Ended June 30, 2025
Revenues from contracts with customers	ComEd		PECO		BGE		PHI		Pepco		DPL		ACE
Electric revenues
Residential	$	1,094	$	555	$	497	$	780	$	348	$	210	$	222
Small commercial & industrial	553		155		90		168		48		64		56
Large commercial & industrial	177		75		140		370		292		31		47
Public authorities & electric railroads	12		10		8		22		12		5		5
Other(a)	224		77		118		233		91		77		67
Total electric revenues(b)	$	2,060	$	872	$	853	$	1,573	$	791	$	387	$	397
Natural gas revenues
Residential	$	—	$	79	$	108	$	17	$	—	$	17	$	—
Small commercial & industrial	—		31		23		8		—		8		—
Large commercial & industrial	—		—		46		1		—		1		—
Transportation	—		8		—		4		—		4		—
Other(c)	—		2		7		3		—		3		—
Total natural gas revenues(d)	$	—	$	120	$	184	$	33	$	—	$	33	$	—
Total revenues from contracts with customers	$	2,060	$	992	$	1,037	$	1,606	$	791	$	420	$	397
Other revenues
Revenues from alternative revenue programs	$	(234)	$	1	$	(13)	$	(29)	$	(16)	$	—	$	(13)
Other electric revenues(e)	10		7		4		2		1		1		—
Other natural gas revenues(e)	—		—		1		—		—		—		—
Total other revenues	$	(224)	$	8	$	(8)	$	(27)	$	(15)	$	1	$	(13)
Total revenues for reportable segments	$	1,836	$	1,000	$	1,029	$	1,579	$	776	$	421	$	384

__________

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

(b)Includes operating revenues from affiliates in 2026 and 2025 respectively of:

•$2 million, $10 million at ComEd

•$2 million, $3 million at PECO

•$2 million, $1 million at BGE

•$2 million, $2 million at PHI

•$1 million, $1 million at Pepco

•$2 million, $2 million at DPL

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

(c)Includes revenues from off-system natural gas sales.

(d)Includes operating revenues from affiliates in 2026 and 2025 respectively of:

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

•$1 million, $1 million at BGE

(e)Includes late payment charge revenues

Six Months Ended June 30, 2026 and 2025

	ComEd		PECO		BGE		PHI		Other(a)		Intersegment Eliminations		Exelon
Operating revenues(b):
2026
Electric revenues	$	3,898	$	2,023	$	2,295	$	3,580	$	—	$	(23)	$	11,773
Natural gas revenues	—		531		751		157		—		(3)		1,436
Shared service and other revenues	—		—		—		5		959		(964)		—
Total operating revenues	$	3,898	$	2,554	$	3,046	$	3,742	$	959	$	(990)	$	13,209

66

Combined Notes to Consolidated Financial Statements — (Continued)

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

Note 4 — Segment Information

2025
Electric revenues	$	3,901	$	1,836	$	1,861	$	3,232	$	—	$	(26)	$	10,804
Natural gas revenues	—		497		722		120		—		(2)		1,337
Shared service and other revenues	—		—		—		5		934		(939)		—
Total operating revenues	$	3,901	$	2,333	$	2,583	$	3,357	$	934	$	(967)	$	12,141
Less:
Purchased power
2026	$	1,031	$	803	$	1,152	$	1,529	$	—	$	—	$	4,515
2025	1,239		665		818		1,273		—		—		3,995
Purchased fuel
2026	$	—	$	198	$	201	$	73	$	—	$	—	$	472
2025	—		176		198		49		—		—		423
Operating and maintenance
2026	$	674	$	502	$	481	$	702	$	878	$	(385)	$	2,852
2025	645		507		443		586		904		(417)		2,668
Operating and maintenance from affiliates
2026	$	212	$	134	$	138	$	118	$	23	$	(625)	$	—
2025	200		124		125		103		22		(574)		—
Depreciation and amortization
2026	$	820	$	247	$	334	$	491	$	28	$	—	$	1,920

67

Combined Notes to Consolidated Financial Statements — (Continued)

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

Note 4 — Segment Information

2025	767		221		318		467		32		—		1,805
Taxes other than income taxes
2026	$	212	$	131	$	200	$	296	$	27	$	—	$	866
2025	196		115		181		276		20		—		788
(Gain) on sale of assets
2026	$	—	$	—	$	—	$	—	$	—	$	—	$	—
2025	—		—		—		(1)		—		—		(1)
Interest expense, net(c)
2026	$	272	$	139	$	129	$	213	$	363	$	—	$	1,116
2025	253		117		120		201		337		—		1,028
Interest expense to affiliates, net(c)
2026	$	7	$	5	$	—	$	2	$	—	$	(2)	$	12
2025	7		7		—		2		—		(4)		12
Other, net
2026	$	(73)	$	(25)	$	(38)	$	(39)	$	(6)	$	22	$	(159)
2025	(53)		(18)		(20)		(35)		(19)		28		(117)
Income taxes
2026	$	184	$	23	$	96	$	79	$	(82)	$	—	$	300
2025	117		17		85		99		(78)		—		240
Net income (loss) attributable to common shareholders
2026	$	559	$	397	$	353	$	278	$	(272)	$	—	$	1,315
2025	530		402		315		337		(284)		—		1,300
Supplemental segment information
Intersegment revenues(d)
2026	$	13	$	7	$	5	$	5	$	954	$	(984)	$	—
2025	17		6		4		5		929		(961)		—
Capital expenditures
2026	$	1,671	$	964	$	822	$	1,062	$	39	$	—	$	4,558
2025	1,189		832		804		1,108		26		—		3,959
Total assets
June 30, 2026	$	49,947	$	20,495	$	18,173	$	30,008	$	6,086	$	(4,204)	$	120,505
December 31, 2025	48,285		19,362		17,184		29,715		6,170		(4,146)		116,570

__________

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

(b)Includes gross utility tax receipts from customers. The offsetting remittance of utility taxes to the governing bodies is recorded in Taxes other than income taxes in the Registrants’ Consolidated Statements of Operations and Comprehensive Income. See Note 14 — Supplemental Financial Information for additional information on total utility taxes.

(c)Interest expense, net and Interest expense to affiliates, net are primarily inclusive of Interest expense, which is partially offset by an immaterial amount of Interest income.

(d)See Note 15 — Related Party Transactions for additional information on intersegment revenues.

PHI:

	Pepco		DPL		ACE		Other(a)		Intersegment Eliminations		PHI
Operating revenues(b):
2026
Electric revenues	$	1,849	$	919	$	822	$	—	$	(10)	$	3,580
Natural gas revenues	—		157		—		—		—		157

68

Combined Notes to Consolidated Financial Statements — (Continued)

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

Note 4 — Segment Information

Shared service and other revenues	—		—		—		229		(224)		5
Total operating revenues	$	1,849	$	1,076	$	822	$	229	$	(234)	$	3,742
2025
Electric revenues	$	1,635	$	849	$	757	$	—	$	(9)	$	3,232
Natural gas revenues	—		120		—		—		—		120
Shared service and other revenues	—		—		—		217		(212)		5
Total operating revenues	$	1,635	$	969	$	757	$	217	$	(221)	$	3,357
Less:
Purchased power
2026	$	727	$	410	$	392	$	—	$	—	$	1,529
2025	574		370		329		—		—		1,273
Purchased fuel
2026	$	—	$	73	$	—	$	—	$	—	$	73
2025	—		49		—		—		—		49
Operating and maintenance
2026	$	270	$	134	$	105	$	193	$	—	$	702
2025	187		110		106		183		—		586
Operating and maintenance from affiliates
2026	$	139	$	97	$	87	$	29	$	(234)	$	118
2025	126		91		79		28		(221)		103
Depreciation and amortization
2026	$	228	$	133	$	128	$	2	$	—	$	491
2025	212		126		127		2		—		467
Taxes other than income taxes
2026	$	231	$	50	$	5	$	10	$	—	$	296
2025	222		41		5		8		—		276
(Gain) on sale of assets
2026	$	—	$	—	$	—	$	—	$	—	$	—
2025	(1)		—		—		—		—		(1)
Interest expense, net(c)
2026	$	111	$	53	$	44	$	5	$	—	$	213
2025	106		50		41		4		—		201
Interest expense to affiliates, net(c)
2026	$	—	$	—	$	—	$	2	$	—	$	2
2025	—		—		—		2		—		2
Other, net
2026	$	(23)	$	(8)	$	(5)	$	(3)	$	—	$	(39)
2025	(20)		(8)		(6)		(1)		—		(35)
Income taxes
2026	$	33	$	31	$	17	$	(2)	$	—	$	79
2025	48		32		20		(1)		—		99
Net income (loss) attributable to common shareholders
2026	$	133	$	103	$	49	$	(7)	$	—	$	278
2025	181		108		56		(8)		—		337
Supplemental segment information
Intersegment revenues(d)
2026	$	4	$	4	$	2	$	229	$	(234)	$	5
2025	4		4		1		217		(221)		5

69

Combined Notes to Consolidated Financial Statements — (Continued)

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

Note 4 — Segment Information

Capital expenditures
2026	$	517	$	300	$	240	$	5	$	—	$	1,062
2025	469		277		196		166		—		1,108
Total assets
June 30, 2026	$	12,951	$	6,824	$	5,795	$	4,586	$	(148)	$	30,008
December 31, 2025	12,728		6,789		5,632		4,602		(36)		29,715

__________

(a)Other primarily includes PHI’s corporate operations, shared service entities, and other financing and investment activities.

(b)Includes gross utility tax receipts from customers. The offsetting remittance of utility taxes to the governing bodies is recorded in Taxes other than income taxes in the Registrants’ Consolidated Statements of Operations and Comprehensive Income. See Note 14 — Supplemental Financial Information for additional information on total utility taxes.

(c)Interest expense, net and Interest expense to affiliates, net are primarily inclusive of Interest expense, which is partially offset by an immaterial amount of Interest income.

(d)Includes intersegment revenues with ComEd, PECO, and BGE, which are eliminated at Exelon.

Electric and Gas Revenue by Customer Class (Utility Registrants):

The following tables disaggregate the Registrants' revenues recognized from contracts with customers into categories that depict how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors. For the Utility Registrants, the disaggregation of revenues reflects the two primary utility services of electric sales and natural gas sales (where applicable), with further disaggregation of these tariff sales provided by major customer groups. Exelon’s disaggregated revenues are consistent with the Utility Registrants, but exclude any intercompany revenues.

	Six Months Ended June 30, 2026
Revenues from contracts with customers	ComEd		PECO		BGE		PHI		Pepco		DPL		ACE
Electric revenues
Residential	$	2,126	$	1,326	$	1,459	$	1,960	$	902	$	559	$	499
Small commercial & industrial	1,011		329		238		373		103		137		133
Large commercial & industrial	251		172		342		793		642		64		87
Public authorities & electric railroads	23		17		17		40		21		9		10
Other(a)	504		154		237		458		188		153		122
Total electric revenues(b)	$	3,915	$	1,998	$	2,293	$	3,624	$	1,856	$	922	$	851
Natural gas revenues
Residential	$	—	$	369	$	494	$	92	$	—	$	92	$	—
Small commercial & industrial	—		125		80		38		—		38		—
Large commercial & industrial	—		—		141		5		—		5		—
Transportation	—		26		—		10		—		10		—
Other(c)	—		9		38		12		—		12		—
Total natural gas revenues(d)	$	—	$	529	$	753	$	157	$	—	$	157	$	—
Total revenues from contracts with customers	$	3,915	$	2,527	$	3,046	$	3,781	$	1,856	$	1,079	$	851
Other revenues
Revenues from alternative revenue programs	$	(46)	$	10	$	(18)	$	(48)	$	(14)	$	(5)	$	(29)
Other electric revenues(e)	29		15		13		9		7		2		—
Other natural gas revenues(e)	—		2		5		—		—