Exhibit 99.1
News Release
| Contact: | Paul Adams Corporate Communications 410-245-8717 Emily Duncan Investor Relations 312-394-2345 | |||||||
EXELON REPORTS FOURTH QUARTER AND FULL YEAR 2020 RESULTS
AND INITIATES 2021 FINANCIAL OUTLOOK
Earnings Release Highlights
•GAAP Net Income of $0.37 per share and Adjusted (non-GAAP) Operating Earnings of $0.76 per share in the fourth quarter of 2020
•Exelon to separate its utility and competitive energy businesses, creating two industry-leading companies
•Exelon introduces 2021 adjusted (non-GAAP) operating earnings guidance range of $2.60-$3.00 per share, reflecting growth in Utilities, offset by impacts of the February severe weather event, lower realized energy and capacity revenues at Generation
•Exelon Utilities project capital expenditures of $27 billion over the next four years to benefit its customers, supporting 7.6% annual rate base growth
•All four utilities ended the year with their best performance ever on customer satisfaction; ComEd and PHI had their best-on-record performances in SAIFI and all utilities ended the year in the top decile
•BGE received the first multi-year plan order from the Maryland PSC approving BGE’s proposed plan for 2021-2023 to recover capital investments and keep customer rates flat for the first year
•Generation’s nuclear fleet capacity factor of 95.4% was the company's second highest ever (owned and operated units)
CHICAGO (Feb. 24, 2021) — Exelon Corporation (Nasdaq: EXC) today reported its financial results for the fourth quarter and full year 2020.
“Our financial and operational performance remained solid through year-end, with each of our utilities reporting top-quartile reliability and record customer satisfaction scores, our zero-carbon nuclear fleet achieving a near-record capacity factor and our relationships with retail customers remaining durable as we continue to be a leading provider of clean and sustainable energy solutions,” said Joseph Nigro, senior executive vice president and CFO of Exelon. “We also reached $400 million in cost savings -- $150 million more than planned – and reported full-year adjusted earnings above the midpoint of our original guidance range at $3.22 per share. While we are proud of these results, looking ahead we must reckon with the impact of the devastating winter storms that overwhelmed the electric grid and disrupted millions of lives across Texas last week. Though our gas plants routinely plan and train for harsh weather, this was an unprecedented and sustained winter event that caused periodic outages and severe financial impacts. As
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a result of these and other conditions, we are setting our 2021 earnings guidance range at $2.60-$3.00 per share.”
Fourth Quarter 2020
Exelon's GAAP Net Income for the fourth quarter of 2020 decreased to $0.37 per share from $0.79 per share in the fourth quarter of 2019. Adjusted (non-GAAP) Operating Earnings decreased to $0.76 per share in the fourth quarter of 2020 from $0.83 per share in the fourth quarter of 2019. For the reconciliations of GAAP Net Income to Adjusted (non-GAAP) Operating Earnings, refer to the tables beginning on page 8.
Adjusted (non-GAAP) Operating Earnings in the fourth quarter of 2020 primarily reflect:
•Lower utility earnings due to lower allowed electric distribution ROE due to a decrease in treasury rates at ComEd; and unfavorable weather conditions at PECO; partially offset by regulatory rate increases at BGE and PHI; and
•Lower Generation earnings due to lower realized energy prices; a reduction in load due to COVID-19; increased nuclear outage days; and the absence of research and development income tax benefits recognized in the fourth quarter of 2019; partially offset by higher capacity revenues; lower operating and maintenance expense; and unrealized gains resulting from equity investments that became publicly traded entities in the fourth quarter of 2020.
Full Year 2020
Exelon's GAAP Net Income for 2020 decreased to $2.01 per share from $3.01 per share in 2019. Exelon's Adjusted (non-GAAP) Operating Earnings for 2020 remained consistent with 2019 at $3.22 per share.
Adjusted (non-GAAP) Operating Earnings for the full year 2020 primarily reflect:
•Lower utility earnings due to lower electric distribution earnings from lower allowed ROE due to a decrease in treasury rates, partially offset by higher rate base at ComEd; unfavorable weather conditions at PECO and PHI; higher storm costs related to the June and August 2020 storms at PECO, net of tax repairs, and August 2020 storm at PHI; and higher depreciation and amortization expense at PECO, BGE and PHI due primarily to ongoing capital expenditures; partially offset by regulatory rate increases at BGE and PHI; and an increase in tax repairs deduction at PECO; and
•Higher Generation earnings due to lower nuclear fuel costs; lower operating and maintenance expense; and unrealized gains resulting from equity investments that became publicly traded entities in the fourth quarter of 2020; partially offset by a reduction in load due to COVID-19; lower realized energy prices; lower capacity revenues; and increased nuclear outage days.
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Operating Company Results1
ComEd
ComEd's fourth quarter of 2020 GAAP Net Income and (non-GAAP) Operating Earnings decreased to $134 million from $144 million in the fourth quarter of 2019, primarily due to lower allowed electric distribution ROE due to a decrease in treasury rates. Due to revenue decoupling, ComEd's distribution earnings are not affected by actual weather or customer usage patterns.
PECO
PECO’s fourth quarter of 2020 GAAP Net Income increased to $130 million from $118 million in the fourth quarter of 2019. PECO’s Adjusted (non-GAAP) Operating Earnings for the fourth quarter of 2020 increased to $133 million from $119 million in the fourth quarter of 2019, primarily due to favorable volume and an increase in tax repairs deduction, partially offset by unfavorable weather conditions.
BGE
BGE’s fourth quarter of 2020 GAAP Net Income decreased to $77 million from $99 million in the fourth quarter of 2019. BGE’s Adjusted (non-GAAP) Operating Earnings for the fourth quarter of 2020 decreased to $79 million from $101 million in the fourth quarter of 2019, primarily due to increased charitable contributions as a result of a commitment in the fourth quarter of 2020 to a multi-year small business grants program and due to various other activity, partially offset by regulatory rate increases. Due to revenue decoupling, BGE's distribution earnings are not affected by actual weather or customer usage patterns.
PHI
PHI’s fourth quarter of 2020 GAAP Net Income increased to $78 million from $65 million in the fourth quarter of 2019. PHI’s Adjusted (non-GAAP) Operating Earnings for the fourth quarter of 2020 increased to $81 million from $68 million in the fourth quarter of 2019, primarily due to regulatory rate increases. Due to revenue decoupling, PHI's distribution earnings related to Pepco Maryland, DPL Maryland and Pepco District of Columbia are not affected by actual weather or customer usage patterns.
Generation
Generation's fourth quarter of 2020 GAAP Net Income decreased to $19 million from $397 million in the fourth quarter of 2019. Generation’s Adjusted (non-GAAP) Operating Earnings for the fourth quarter of 2020 decreased to $391 million from $427 million in the fourth quarter of 2019, primarily due to lower realized energy prices, a reduction in load due to COVID-19, increased nuclear outage days, and the absence of research and development income tax benefits recognized in the fourth quarter of 2019, partially offset by higher capacity revenues, lower operating and maintenance expense, and unrealized gains resulting from equity investments that became publicly traded entities in the fourth quarter of 2020.
The proportion of expected generation hedged for the Mid-Atlantic, Midwest, New York and ERCOT reportable segments as of Dec. 31, 2020, was 94.0% to 97.0% for 2021.
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1Exelon’s five business units include ComEd, which consists of electricity transmission and distribution operations in northern Illinois; PECO, which consists of electricity transmission and distribution operations and retail natural gas distribution operations in southeastern Pennsylvania; BGE, which consists of electricity transmission and distribution operations and retail natural gas distribution operations in central Maryland; PHI, which consists of electricity transmission and distribution operations in the District of Columbia and portions of Maryland, Delaware, and New Jersey and retail natural gas distribution operations in northern Delaware; and Generation, which consists of owned and contracted electric generating facilities and wholesale and retail customer supply of electric and natural gas products and services, including renewable energy products and risk management services.
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Initiates Annual Guidance for 2021
Exelon introduced a guidance range for 2021 Adjusted (non-GAAP) Operating Earnings of $2.60-$3.00 per share. The outlook for 2021 Adjusted (non-GAAP) Operating Earnings for Exelon and its subsidiaries excludes the following items:
•Mark-to-market adjustments from economic hedging activities;
•Unrealized gains and losses from NDT funds to the extent not offset by contractual accounting as described in the notes to the consolidated financial statements;
•Certain costs related to plant retirements;
•Certain costs incurred to achieve cost management program savings;
•Direct costs related to the novel coronavirus (COVID-19) pandemic;
•Certain acquisition-related costs;
•Costs related to a multi-year Enterprise Resource Program (ERP) system implementation;
•Other items not directly related to the ongoing operations of the business; and
•Generation's noncontrolling interest related to exclusion items.
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Recent Developments and Fourth Quarter Highlights
•Planned Separation: Exelon announced on Feb. 24, 2021 that its Board of Directors approved a plan to separate its utilities business, comprised of the company’s six regulated electric and gas utilities, and Generation, its competitive power generation and customer-facing energy businesses, creating two publicly traded companies with the resources necessary to best serve customers and sustain long-term investment and operating excellence. The separation gives each company the financial and strategic independence to focus on its specific customer needs, while executing its core business strategy. Exelon is targeting to complete the separation in the first quarter of 2022, subject to final approval by Exelon’s Board of Directors, a Form 10 registration statement being declared effective by the SEC, regulatory approvals, and satisfaction of other conditions.
•Impacts of February 2021 Weather Events and Texas-based Generating Assets Outages: Beginning on Feb. 15, 2021, Generation’s Texas-based generating assets within the Electric Reliability Council of Texas (ERCOT) market, specifically Colorado Bend II, Wolf Hollow II, and Handley, experienced periodic outages as a result of historically severe cold weather conditions. In addition, those weather conditions drove increased demand for service, limited the availability of natural gas to fuel power plants, and dramatically increased wholesale power and gas prices.
Exelon and Generation estimate the impact to their Net income for the first quarter of 2021 arising from these market and weather conditions to be approximately $560 million to $710 million. The estimated impact includes favorable results in certain regions within Generation’s wholesale gas business. The ultimate impact to Exelon’s and Generation’s consolidated financial statements may be affected by a number of factors, including final settlement data, the impacts of customer and counterparty credit losses, any state sponsored solutions to address the financial challenges caused by the event, and litigation and contract disputes which may result. Exelon expects to offset between $410 million and $490 million of this impact primarily at Generation through a combination of enhanced revenue opportunities, deferral of selected non-essential maintenance, and primarily one-time cost savings.
Generation used a combination of commercial paper and letters of credit to manage collateral needs and has posted approximately $1.4 billion of collateral with ERCOT as of Feb. 22, 2021. Generation continues to believe it has sufficient cash on hand and available capacity on its revolver, which was $2.4 billion as of Feb. 22, 2021, to meet its liquidity requirements.
•Dividend: On Feb. 21, 2021, Exelon’s Board of Directors declared a regular quarterly dividend of $0.3825 per share on Exelon’s common stock for the first quarter of 2021. The dividend is payable on Monday, March 15, 2021, to shareholders of record of Exelon as of 5 p.m. Eastern time on Monday, March 8, 2021. The Board of Directors of Exelon approved an updated dividend policy for 2021. The 2021 quarterly dividend will remain the same as the 2020 dividend of $0.3825 per share.
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•Agreement for Sale of Generation’s Solar Business: On Dec. 8, 2020, Generation entered into an agreement with an affiliate of Brookfield Renewable Partners L.P. (“Brookfield Renewable”), for the sale of a significant portion of Generation’s solar business, including 360 megawatts of generation in operation or under construction across more than 600 sites across the United States. Generation will retain certain solar assets not included in this agreement, primarily Antelope Valley. Under the terms of the transaction, the purchase price is $810 million, subject to certain working capital and other post-closing adjustments. The transaction is expected to result in an estimated pre-tax gain ranging from $75 million to $125 million. Completion of the transaction contemplated by the sale agreement is subject to the satisfaction of several closing conditions and is expected to occur in the first half of 2021.
•ComEd Distribution Formula Rate: On Dec. 9, 2020, the Illinois Commerce Commission issued an order approving ComEd’s 2021 revenue requirement. The order resulted in a $14 million decrease to the revenue requirement, reflecting a $50 million increase for the initial year revenue requirement for 2021 and a $64 million decrease related to the annual reconciliation for 2019. The revenue requirement for 2021 and the annual reconciliation for 2019 provide for a weighted average debt and equity return on distribution rate base of 6.28%, inclusive of an allowed ROE of 8.38%. The rates were effective on Jan. 1, 2021.
•BGE Maryland Electric and Natural Gas Rate Case: On Dec. 16, 2020, the Maryland Public Service Commission (MDPSC) approved BGE’s three-year cumulative multi-year plan for 2021 through 2023 to recover capital investments made in late 2019 and planned capital investments from 2020 to 2023. The MDPSC offset the awarded electric and natural gas revenue increases in 2021 with certain tax benefits so customers would see no change in rates. The MDPSC’s order approved an increase in BGE’s electric distribution rates of $39 million in 2022 and $42 million in 2023 reflecting an ROE of 9.5% and an increase in BGE’s annual natural gas distribution rates of $11 million in 2022 and $10 million in 2023 reflecting an ROE of 9.65%. These rates are effective on Jan. 1, 2021. The MDPSC has deferred a decision on whether to use the tax benefits to offset the revenue requirement increases in 2022 and 2023 and BGE cannot predict the outcome.
•DPL Delaware Natural Gas Base Rate Case: On Jan. 6, 2021, the Delaware Public Service Commission approved an increase in DPL’s annual natural gas distribution rates of $2 million with an effective date of Sept. 21, 2020 and reflecting an ROE of 9.6%.
•ACE New Jersey Electric Distribution Base Rate Case: On Dec. 9, 2020, ACE filed an application with the New Jersey Board of Public Utilities (NJBPU) to increase its annual electric distribution rates by $67 million (before New Jersey sales and use tax), reflecting a requested ROE of 10.3%. ACE currently expects a decision in the fourth quarter of 2021 but cannot predict if the NJBPU will approve the application as filed. ACE intends to put rates into effect on Sept. 8, 2021, subject to refund.
•Nuclear Operations: Generation’s nuclear fleet, including its owned output from the Salem generating station and 100% of the CENG units, produced 44,230 gigawatt-hours (GWhs) in the fourth quarter of 2020, compared with 44,647 GWhs in the fourth quarter of 2019. Excluding Salem, the Exelon-operated nuclear plants at ownership achieved a 96.2% capacity factor for the fourth quarter of 2020, compared with 95.0% for the fourth quarter of 2019. Excluding Salem, the number of planned refueling outage days in the fourth quarter of 2020 totaled 57, compared with 64 in the fourth quarter of 2019. There were four non-refueling outage days in the fourth quarter of 2020, compared with eight in the fourth quarter of 2019.
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•Fossil and Renewables Operations: The Dispatch Match rate for Generation’s gas and hydro fleet was 98.8% in the fourth quarter of 2020, compared with 98.6% in the fourth quarter of 2019. Energy Capture for the wind and solar fleet was 94.2% in the fourth quarter of 2020, compared with 96.2% in the fourth quarter of 2019. The lower performance in the quarter was driven by delays in turbine maintenance at some wind sites.
•Financing Activities:
◦On Dec. 18, 2020, ExGen Renewables IV (EGR IV), an indirect subsidiary of Generation, entered into a financing agreement for a $750 million nonrecourse senior secured term loan credit facility scheduled to mature on Dec. 15, 2027. The term loan bears interest at a variable rate equal to LIBOR plus 2.75%, subject to a 1.00% LIBOR floor. Generation used the proceeds to repay EGR IV's Nov. 2017 non-recourse senior secured term loan credit facility and to settle the related interest rate swap.
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GAAP/Adjusted (non-GAAP) Operating Earnings Reconciliations
Adjusted (non-GAAP) Operating Earnings for the fourth quarter of 2020 do not include the following items (after tax) that were included in reported GAAP Net Income:
| (in millions) | Exelon Earnings per Diluted Share | Exelon | ComEd | PECO | BGE | PHI | Generation | ||||||||||||||||
| 2020 GAAP Net Income (Loss) | $ | 0.37 | $ | 360 | $ | 134 | $ | 130 | $ | 77 | $ | 78 | $ | 19 | |||||||||
| Mark-to-Market Impact of Economic Hedging Activities (net of taxes of $39 and $38, respectively) | 0.12 | 116 | — | — | — | — | 115 | ||||||||||||||||
| Unrealized Gains Related to Nuclear Decommissioning Trust (NDT) Funds (net of taxes of $248) | (0.27) | (264) | — | — | — | — | (264) | ||||||||||||||||
| Plant Retirements and Divestitures (net of taxes of $127) | 0.38 | 370 | — | — | — | — | 370 | ||||||||||||||||
| Cost Management Program (net of taxes of $3, $0, $1, and $2, respectively) | 0.01 | 10 | — | 1 | — | 2 | 7 | ||||||||||||||||
| COVID-19 Direct Costs (net of taxes of $4, $1, $0, $0, and $3, respectively) | 0.01 | 14 | — | 2 | 1 | 1 | 10 | ||||||||||||||||
| Asset Retirement Obligation (net of taxes of $15) | 0.05 | 45 | — | — | — | — | 45 | ||||||||||||||||
| Acquisition Related Costs (net of taxes of $1) | — | 2 | — | — | — | — | 2 | ||||||||||||||||
| ERP System Implementation Costs (net of taxes of $1, $0, and $1, respectively) | — | 3 | — | — | 1 | — | 2 | ||||||||||||||||
| Income Tax-Related Adjustments (entire amount represents tax expense) | 0.01 | 5 | — | — | — | — | — | ||||||||||||||||
| Noncontrolling Interests (net of taxes of $17) | 0.09 | 85 | — | — | — | — | 85 | ||||||||||||||||
| 2020 Adjusted (non-GAAP) Operating Earnings | $ | 0.76 | $ | 746 | $ | 134 | $ | 133 | $ | 79 | $ | 81 | $ | 391 | |||||||||
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Adjusted (non-GAAP) Operating Earnings for the fourth quarter of 2019 do not include the following items (after tax) that were included in reported GAAP Net Income:
| (in millions) | Exelon Earnings per Diluted Share | Exelon | ComEd | PECO | BGE | PHI | Generation | ||||||||||||||||
| 2019 GAAP Net Income | $ | 0.79 | $ | 773 | $ | 144 | $ | 118 | $ | 99 | $ | 65 | $ | 397 | |||||||||
| Mark-to-Market Impact of Economic Hedging Activities (net of taxes of $35 and $32, respectively) | 0.10 | 101 | — | — | — | — | 95 | ||||||||||||||||
| Unrealized Gains Related to NDT Funds (net of taxes of $102) | (0.12) | (119) | — | — | — | — | (119) | ||||||||||||||||
| Asset Impairments (net of taxes of $1) | — | 4 | — | — | — | — | 4 | ||||||||||||||||
| Plant Retirements and Divestitures (net of taxes of $1) | — | 3 | — | — | — | — | 3 | ||||||||||||||||
| Cost Management Program (net of taxes of $6, $0, $0, $1, and $4, respectively) | 0.02 | 21 | — | 1 | 2 | 3 | 13 | ||||||||||||||||
| Change in Environmental Liabilities (net of taxes of $1) | — | 4 | — | — | — | — | 4 | ||||||||||||||||
| Income Tax-Related Adjustments (entire amount represents tax expense) | (0.01) | (8) | — | — | — | — | (2) | ||||||||||||||||
| Noncontrolling Interests (net of taxes of $8) | 0.03 | 33 | — | — | — | — | 33 | ||||||||||||||||
| 2019 Adjusted (non-GAAP) Operating Earnings | $ | 0.83 | $ | 810 | $ | 144 | $ | 119 | $ | 101 | $ | 68 | $ | 427 | |||||||||
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Adjusted (non-GAAP) Operating Earnings for the full year 2020 do not include the following items (after tax) that were included in reported GAAP Net Income:
| (in millions) | Exelon Earnings per Diluted Share | Exelon | ComEd | PECO | BGE | PHI | Generation | ||||||||||||||||
| 2020 GAAP Net Income | $ | 2.01 | $ | 1,963 | $ | 438 | $ | 447 | $ | 349 | $ | 495 | $ | 589 | |||||||||
| Mark-to-Market Impact of Economic Hedging Activities (net of taxes of $73 and $79, respectively) | (0.22) | (213) | — | — | — | — | (234) | ||||||||||||||||
| Unrealized Gains Related to NDT Funds (net of taxes of $278) | (0.26) | (256) | — | — | — | — | (256) | ||||||||||||||||
| Asset Impairments (net of taxes of $135, $4, and $130, respectively) | 0.41 | 396 | 11 | — | — | — | 385 | ||||||||||||||||
| Plant Retirements and Divestitures (net of taxes of $244) | 0.74 | 718 | — | — | — | — | 718 | ||||||||||||||||
| Cost Management Program (net of taxes of $14, $1, $1, $3, and $10, respectively) | 0.05 | 45 | — | 4 | 4 | 8 | 31 | ||||||||||||||||
| Change in Environmental Liabilities (net of taxes of $6) | 0.02 | 18 | — | — | — | — | 18 | ||||||||||||||||
| COVID-19 Direct Costs (net of taxes of $19, $4, $2, $2, and $11, respectively) | 0.05 | 50 | — | 9 | 4 | 4 | 33 | ||||||||||||||||
| Deferred Prosecution Agreement Payments (net of taxes of $0) | 0.20 | 200 | 200 | — | — | — | — | ||||||||||||||||
| Asset Retirement Obligation (net of taxes of $16, $1, and $15, respectively) | 0.05 | 48 | — | — | — | 3 | 45 | ||||||||||||||||
| Acquisition Related Costs (net of taxes of $1) | — | 4 | — | — | — | — | 4 | ||||||||||||||||
| ERP System Implementation Costs (net of taxes of $1, $0, and $1, respectively) | — | 3 | — | — | 1 | — | 2 | ||||||||||||||||
| Income Tax-Related Adjustments (entire amount represents tax expense) | 0.07 | 71 | — | — | — | (1) | (28) | ||||||||||||||||
| Noncontrolling Interests (net of taxes of $19) | 0.11 | 103 | — | — | — | — | 103 | ||||||||||||||||
| 2020 Adjusted (non-GAAP) Operating Earnings | $ | 3.22 | $ | 3,149 | $ | 648 | $ | 460 | $ | 358 | $ | 509 | $ | 1,410 | |||||||||
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Adjusted (non-GAAP) Operating Earnings for the full year 2019 do not include the following items (after tax) that were included in reported GAAP Net Income:
| (in millions) | Exelon Earnings per Diluted Share | Exelon | ComEd | PECO | BGE | PHI | Generation | ||||||||||||||||
| 2019 GAAP Net Income | $ | 3.01 | $ | 2,936 | $ | 688 | $ | 528 | $ | 360 | $ | 477 | $ | 1,125 | |||||||||
| Mark-to-Market Impact of Economic Hedging Activities (net of taxes of $66 and $58, respectively) | 0.20 | 197 | — | — | — | — | 175 | ||||||||||||||||
| Unrealized Gains Related to NDT Funds (net of taxes of $269) | (0.31) | (299) | — | — | — | — | (299) | ||||||||||||||||
| Asset Impairments (net of taxes of $56) | 0.13 | 123 | — | — | — | — | 123 | ||||||||||||||||
| Plant Retirements and Divestitures (net of taxes of $9) | 0.12 | 118 | — | — | — | — | 118 | ||||||||||||||||
| Cost Management Program (net of taxes of $17, $1, $1, $3, and $11, respectively) | 0.05 | 51 | — | 3 | 4 | 7 | 35 | ||||||||||||||||
| Litigation Settlement Gain (net of taxes of $7) | (0.02) | (19) | — | — | — | — | (19) | ||||||||||||||||
| Asset Retirement Obligation (net of taxes of $9) | (0.09) | (84) | — | — | — | — | (84) | ||||||||||||||||
| Change in Environmental Liabilities (net of taxes of $8, $6, and $2, respectively) | 0.02 | 20 | — | — | — | 16 | 4 | ||||||||||||||||
| Income Tax-Related Adjustments (entire amount represents tax expense) | 0.01 | 5 | — | — | — | 2 | 6 | ||||||||||||||||
| Noncontrolling Interests (net of taxes of $26) | 0.09 | 90 | — | — | — | — | 90 | ||||||||||||||||
| 2019 Adjusted (non-GAAP) Operating Earnings | $ | 3.22 | $ | 3,139 | $ | 688 | $ | 531 | $ | 364 | $ | 502 | $ | 1,276 | |||||||||
Note:
Amounts may not sum due to rounding.
Unless otherwise noted, the income tax impact of each reconciling item between GAAP Net Income and Adjusted (non-GAAP) Operating Earnings is based on the marginal statutory federal and state income tax rates for each Registrant, taking into account whether the income or expense item is taxable or deductible, respectively, in whole or in part. For all items except the unrealized gains and losses related to NDT funds, the marginal statutory income tax rates for 2020 and 2019 ranged from 26.0% to 29.0%. Under IRS regulations, NDT fund returns are taxed at different rates for investments if they are in qualified or non-qualified funds. The effective tax rates for the unrealized gains and losses related to NDT funds were 48.4% and 46.1% for the three months ended Dec. 31, 2020 and 2019, respectively; and were 52.1% and 47.3% for the twelve months ended Dec. 31, 2020 and 2019, respectively.
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Webcast Information
Exelon will discuss fourth quarter 2020 earnings in conference call scheduled for today at 9 a.m. Central Time (10 a.m. Eastern Time). The webcast and associated materials can be accessed at www.exeloncorp.com/investor-relations.
About Exelon
Exelon Corporation (Nasdaq: EXC) is a Fortune 100 energy company with the largest number of electricity and natural gas customers in the U.S. Exelon does business in 48 states, the District of Columbia and Canada and had 2020 revenue of $33 billion. Exelon serves approximately 10 million customers in Delaware, the District of Columbia, Illinois, Maryland, New Jersey and Pennsylvania through its Atlantic City Electric, BGE, ComEd, Delmarva Power, PECO and Pepco subsidiaries. Exelon is one of the largest competitive U.S. power generators, with more than 31,000 megawatts of nuclear, gas, wind, solar and hydroelectric generating capacity comprising one of the nation’s cleanest and lowest-cost power generation fleets. The company’s Constellation business unit provides energy products and services to approximately 2 million residential, public sector and business customers, including three fourths of the Fortune 100. Follow Exelon on Twitter @Exelon.
Non-GAAP Financial Measures
In addition to net income as determined under generally accepted accounting principles in the United States (GAAP), Exelon evaluates its operating performance using the measure of Adjusted (non-GAAP) Operating Earnings because management believes it represents earnings directly related to the ongoing operations of the business. Adjusted (non-GAAP) Operating Earnings exclude certain costs, expenses, gains and losses and other specified items. This measure is intended to enhance an investor’s overall understanding of period over period operating results and provide an indication of Exelon’s baseline operating performance excluding items that are considered by management to be not directly related to the ongoing operations of the business. In addition, this measure is among the primary indicators management uses as a basis for evaluating performance, allocating resources, setting incentive compensation targets and planning and forecasting of future periods. Adjusted (non-GAAP) Operating Earnings is not a presentation defined under GAAP and may not be comparable to other companies’ presentation. Exelon has provided the non-GAAP financial measure as supplemental information and in addition to the financial measures that are calculated and presented in accordance with GAAP. Adjusted (non-GAAP) Operating Earnings should not be deemed more useful than, a substitute for, or an alternative to the most comparable GAAP Net Income measures provided in this earnings release and attachments. This press release and earnings release attachments provide reconciliations of adjusted (non-GAAP) Operating Earnings to the most directly comparable financial measures calculated and presented in accordance with GAAP, are posted on Exelon’s website: www.exeloncorp.com, and have been furnished to the Securities and Exchange Commission on Form 8-K on Feb. 24, 2021.
Cautionary Statements Regarding Forward-Looking Information
This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to risks and uncertainties including, among others, those related to the timing, manner, tax-free nature and expected benefits associated with the potential separation of Exelon’s competitive power generation and customer-facing energy business from its six regulated electric and gas utilities. Words such as “could,” “may,” “expects,” “anticipates,” “will,”
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“targets,” “goals,” “projects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “predicts,” 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.
The factors that could cause actual results to differ materially from the forward-looking statements made by Exelon Corporation, Exelon Generation Company, LLC, Commonwealth Edison Company, PECO Energy Company, Baltimore Gas and Electric Company, Pepco Holdings LLC, Potomac Electric Power Company, Delmarva Power & Light Company, and Atlantic City Electric Company (Registrants) include those factors discussed herein, as well as the items discussed in (1) the Registrants' 2019 Annual Report on Form 10-K in (a) Part I, ITEM 1A. Risk Factors, (b) Part II, ITEM 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations, and (c) Part II, ITEM 8. Financial Statements and Supplementary Data: Note 18, Commitments and Contingencies; (2) the Registrants' Third Quarter 2020 Quarterly Report on Form 10-Q in (a) Part II, ITEM 1A. Risk Factors, (b) Part I, ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations, and (c) Part I, ITEM 1. Financial Statements: Note 14, Commitments and Contingencies; and (3) other factors discussed in filings with the SEC by the Registrants.
Investors are cautioned not to place undue reliance on these forward-looking statements, whether written or oral, which apply only as of the date of this press release. None of the Registrants undertakes any obligation to publicly release any revision to its forward-looking statements to reflect events or circumstances after the date of this press release.
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Earnings Release Attachments
Table of Contents
Consolidating Statements of Operations
(unaudited)
(in millions)
| ComEd | PECO | BGE | PHI | Generation | Other (a) | Exelon | ||||||||||||||||||||||||||||||||||||||
| Three Months Ended December 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||
| Operating revenues | $ | 1,404 | $ | 752 | $ | 814 | $ | 1,108 | $ | 4,331 | $ | (292) | $ | 8,117 | ||||||||||||||||||||||||||||||
| Operating expenses | ||||||||||||||||||||||||||||||||||||||||||||
| Purchased power and fuel | 441 | 250 | 260 | 399 | 2,625 | (277) | 3,698 | |||||||||||||||||||||||||||||||||||||
| Operating and maintenance | 347 | 233 | 223 | 286 | 980 | (30) | 2,039 | |||||||||||||||||||||||||||||||||||||
| Depreciation and amortization | 292 | 88 | 144 | 197 | 961 | 20 | 1,702 | |||||||||||||||||||||||||||||||||||||
| Taxes other than income taxes | 72 | 41 | 68 | 106 | 118 | 9 | 414 | |||||||||||||||||||||||||||||||||||||
| Total operating expenses | 1,152 | 612 | 695 | 988 | 4,684 | (278) | 7,853 | |||||||||||||||||||||||||||||||||||||
| Gain (loss) on sales of assets and businesses | — | — | — | 9 | (1) | — | 8 | |||||||||||||||||||||||||||||||||||||
| Operating income (loss) | 252 | 140 | 119 | 129 | (354) | (14) | 272 | |||||||||||||||||||||||||||||||||||||
| Other income and (deductions) | ||||||||||||||||||||||||||||||||||||||||||||
| Interest expense, net | (95) | (38) | (35) | (67) | (80) | (80) | (395) | |||||||||||||||||||||||||||||||||||||
| Other, net | 12 | 5 | 7 | 16 | 738 | 14 | 792 | |||||||||||||||||||||||||||||||||||||
| Total other income and (deductions) | (83) | (33) | (28) | (51) | 658 | (66) | 397 | |||||||||||||||||||||||||||||||||||||
| Income (loss) before income taxes | 169 | 107 | 91 | 78 | 304 | (80) | 669 | |||||||||||||||||||||||||||||||||||||
| Income taxes | 35 | (23) | 14 | — | 209 | (3) | 232 | |||||||||||||||||||||||||||||||||||||
| Equity in (losses) earnings of unconsolidated affiliates | — | — | — | — | (1) | — | (1) | |||||||||||||||||||||||||||||||||||||
| Net income (loss) | 134 | 130 | 77 | 78 | 94 | (77) | 436 | |||||||||||||||||||||||||||||||||||||
| Net income attributable to noncontrolling interests | — | — | — | — | 75 | 1 | 76 | |||||||||||||||||||||||||||||||||||||
| Net income (loss) attributable to common shareholders | $ | 134 | $ | 130 | $ | 77 | $ | 78 | $ | 19 | $ | (78) | $ | 360 | ||||||||||||||||||||||||||||||
| Three Months Ended December 31, 2019 | ||||||||||||||||||||||||||||||||||||||||||||
| Operating revenues | $ | 1,405 | $ | 766 | $ | 779 | $ | 1,107 | $ | 4,644 | $ | (358) | $ | 8,343 | ||||||||||||||||||||||||||||||
| Operating expenses | ||||||||||||||||||||||||||||||||||||||||||||
| Purchased power and fuel | 474 | 260 | 248 | 406 | 2,708 | (330) | 3,766 | |||||||||||||||||||||||||||||||||||||
| Operating and maintenance | 337 | 219 | 192 | 272 | 1,147 | 29 | 2,196 | |||||||||||||||||||||||||||||||||||||
| Depreciation and amortization | 266 | 85 | 133 | 192 | 314 | 25 | 1,015 | |||||||||||||||||||||||||||||||||||||
| Taxes other than income taxes | 73 | 40 | 64 | 109 | 125 | 6 | 417 | |||||||||||||||||||||||||||||||||||||
| Total operating expenses | 1,150 | 604 | 637 | 979 | 4,294 | (270) | 7,394 | |||||||||||||||||||||||||||||||||||||
| Gain (loss) on sales of assets and businesses | — | — | — | — | 12 | (1) | 11 | |||||||||||||||||||||||||||||||||||||
| Operating income (loss) | 255 | 162 | 142 | 128 | 362 | (89) | 960 | |||||||||||||||||||||||||||||||||||||
| Other income and (deductions) | ||||||||||||||||||||||||||||||||||||||||||||
| Interest expense, net | (90) | (36) | (32) | (65) | (93) | (79) | (395) | |||||||||||||||||||||||||||||||||||||
| Other, net | 12 | 5 | 9 | 15 | 293 | 57 | 391 | |||||||||||||||||||||||||||||||||||||
| Total other income and (deductions) | (78) | (31) | (23) | (50) | 200 | (22) | (4) | |||||||||||||||||||||||||||||||||||||
| Income (loss) before income taxes | 177 | 131 | 119 | 78 | 562 | (111) | 956 | |||||||||||||||||||||||||||||||||||||
| Income taxes | 33 | 13 | 20 | 13 | 128 | (60) | 147 | |||||||||||||||||||||||||||||||||||||
| Equity in (losses) earnings of unconsolidated affiliates | — | — | — | — | (2) | 1 | (1) | |||||||||||||||||||||||||||||||||||||
| Net income (loss) | 144 | 118 | 99 | 65 | 432 | (50) | 808 | |||||||||||||||||||||||||||||||||||||
| Net income attributable to noncontrolling interests | — | — | — | — | 35 | — | 35 | |||||||||||||||||||||||||||||||||||||
| Net income (loss) attributable to common shareholders | $ | 144 | $ | 118 | $ | 99 | $ | 65 | $ | 397 | $ | (50) | $ | 773 | ||||||||||||||||||||||||||||||
| Change in Net Income from 2019 to 2020 | $ | (10) | $ | 12 | $ | (22) | $ | 13 | $ | (378) | $ | (28) | $ | (413) | ||||||||||||||||||||||||||||||
__________
(a)Other primarily includes eliminating and consolidating adjustments, Exelon’s corporate operations, shared service entities and other financing and investment activities.
1
Consolidating Statements of Operations
(unaudited)
(in millions)
| ComEd | PECO | BGE | PHI | Generation | Other (a) | Exelon | ||||||||||||||||||||||||||||||||||||||
| Twelve Months Ended December 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||
| Operating revenues | $ | 5,904 | $ | 3,058 | $ | 3,098 | $ | 4,663 | $ | 17,603 | $ | (1,287) | $ | 33,039 | ||||||||||||||||||||||||||||||
| Operating expenses | ||||||||||||||||||||||||||||||||||||||||||||
| Purchased power and fuel | 1,998 | 1,018 | 991 | 1,714 | 9,585 | (1,202) | 14,104 | |||||||||||||||||||||||||||||||||||||
| Operating and maintenance | 1,520 | 975 | 789 | 1,099 | 5,168 | (143) | 9,408 | |||||||||||||||||||||||||||||||||||||
| Depreciation and amortization | 1,133 | 347 | 550 | 782 | 2,123 | 79 | 5,014 | |||||||||||||||||||||||||||||||||||||
| Taxes other than income taxes | 299 | 172 | 268 | 450 | 482 | 43 | 1,714 | |||||||||||||||||||||||||||||||||||||
| Total operating expenses | 4,950 | 2,512 | 2,598 | 4,045 | 17,358 | (1,223) | 30,240 | |||||||||||||||||||||||||||||||||||||
| Gain on sales of assets and businesses | — | — | — | 11 | 11 | 2 | 24 | |||||||||||||||||||||||||||||||||||||
| Operating income (loss) | 954 | 546 | 500 | 629 | 256 | (62) | 2,823 | |||||||||||||||||||||||||||||||||||||
| Other income and (deductions) | ||||||||||||||||||||||||||||||||||||||||||||
| Interest expense, net | (382) | (147) | (133) | (268) | (357) | (348) | (1,635) | |||||||||||||||||||||||||||||||||||||
| Other, net | 43 | 18 | 23 | 57 | 937 | 67 | 1,145 | |||||||||||||||||||||||||||||||||||||
| Total other income and (deductions) | (339) | (129) | (110) | (211) | 580 | (281) | (490) | |||||||||||||||||||||||||||||||||||||
| Income (loss) before income taxes | 615 | 417 | 390 | 418 | 836 | (343) | 2,333 | |||||||||||||||||||||||||||||||||||||
| Income taxes | 177 | (30) | 41 | (77) | 249 | 13 | 373 | |||||||||||||||||||||||||||||||||||||
| Equity in earnings (losses) of unconsolidated affiliates | — | — | — | — | (8) | 2 | (6) | |||||||||||||||||||||||||||||||||||||
| Net income (loss) | 438 | 447 | 349 | 495 | 579 | (354) | 1,954 | |||||||||||||||||||||||||||||||||||||
| Net income attributable to noncontrolling interests | — | — | — | — | (10) | 1 | (9) | |||||||||||||||||||||||||||||||||||||
| Net income (loss) attributable to common shareholders | $ | 438 | $ | 447 | $ | 349 | $ | 495 | $ | 589 | $ | (355) | $ | 1,963 | ||||||||||||||||||||||||||||||
| Twelve Months Ended December 31, 2019 | ||||||||||||||||||||||||||||||||||||||||||||
| Operating revenues | $ | 5,747 | $ | 3,100 | $ | 3,106 | $ | 4,806 | $ | 18,924 | $ | (1,245) | $ | 34,438 | ||||||||||||||||||||||||||||||
| Operating expenses | ||||||||||||||||||||||||||||||||||||||||||||
| Purchased power and fuel | 1,941 | 1,029 | 1,052 | 1,798 | 10,856 | (1,179) | 15,497 | |||||||||||||||||||||||||||||||||||||
| Operating and maintenance | 1,305 | 861 | 760 | 1,082 | 4,718 | (111) | 8,615 | |||||||||||||||||||||||||||||||||||||
| Depreciation and amortization | 1,033 | 333 | 502 | 754 | 1,535 | 95 | 4,252 | |||||||||||||||||||||||||||||||||||||
| Taxes other than income taxes | 301 | 165 | 260 | 450 | 519 | 37 | 1,732 | |||||||||||||||||||||||||||||||||||||
| Total operating expenses | 4,580 | 2,388 | 2,574 | 4,084 | 17,628 | (1,158) | 30,096 | |||||||||||||||||||||||||||||||||||||
| Gain (loss) on sales of assets and businesses | 4 | 1 | — | — | 27 | (1) | 31 | |||||||||||||||||||||||||||||||||||||
| Gain on deconsolidation of business | — | — | — | — | — | 1 | 1 | |||||||||||||||||||||||||||||||||||||
| Operating income (loss) | 1,171 | 713 | 532 | 722 | 1,323 | (87) | 4,374 | |||||||||||||||||||||||||||||||||||||
| Other income and (deductions) | ||||||||||||||||||||||||||||||||||||||||||||
| Interest expense, net | (359) | (136) | (121) | (263) | (429) | (308) | (1,616) | |||||||||||||||||||||||||||||||||||||
| Other, net | 39 | 16 | 28 | 55 | 1,023 | 66 | 1,227 | |||||||||||||||||||||||||||||||||||||
| Total other income and (deductions) | (320) | (120) | (93) | (208) | 594 | (242) | (389) | |||||||||||||||||||||||||||||||||||||
| Income (loss) before income taxes | 851 | 593 | 439 | 514 | 1,917 | (329) | 3,985 | |||||||||||||||||||||||||||||||||||||
| Income taxes | 163 | 65 | 79 | 38 | 516 | (87) | 774 | |||||||||||||||||||||||||||||||||||||
| Equity in earnings (losses) of unconsolidated affiliates | — | — | — | 1 | (184) | — | (183) | |||||||||||||||||||||||||||||||||||||
| Net income (loss) | 688 | 528 | 360 | 477 | 1,217 | (242) | 3,028 | |||||||||||||||||||||||||||||||||||||
| Net income attributable to noncontrolling interests | — | — | — | — | 92 | — | 92 | |||||||||||||||||||||||||||||||||||||
| Net income (loss) attributable to common shareholders | $ | 688 | $ | 528 | $ | 360 | $ | 477 | $ | 1,125 | $ | (242) | $ | 2,936 | ||||||||||||||||||||||||||||||
| Change in Net Income from 2019 to 2020 | $ | (250) | $ | (81) | $ | (11) | $ | 18 | $ | (536) | $ | (113) | $ | (973) | ||||||||||||||||||||||||||||||
__________
(a)Other primarily includes eliminating and consolidating adjustments, Exelon’s corporate operations, shared service entities and other financing and investment activities.
2
Exelon
Consolidated Balance Sheets
(unaudited)
(in millions)
| December 31, 2020 | December 31, 2019 | |||||||||||||
| Assets | ||||||||||||||
| Current assets | ||||||||||||||
| Cash and cash equivalents | $ | 663 | $ | 587 | ||||||||||
| Restricted cash and cash equivalents | 438 | 358 | ||||||||||||
| Accounts receivable | ||||||||||||||
| Customer accounts receivable | 3,597 | 4,835 | ||||||||||||
| Customer allowance for credit losses | (366) | (243) | ||||||||||||
| Customer accounts receivable, net | 3,231 | 4,592 | ||||||||||||
| Other accounts receivable | 1,469 | 1,631 | ||||||||||||
| Other allowance for credit losses | (71) | (48) | ||||||||||||
| Other accounts receivable, net | 1,398 | 1,583 | ||||||||||||
| Mark-to-market derivative assets | 644 | 679 | ||||||||||||
| Unamortized energy contract assets | 38 | 47 | ||||||||||||
| Inventories, net | ||||||||||||||
| Fossil fuel and emission allowances | 297 | 312 | ||||||||||||
| Materials and supplies | 1,425 | 1,456 | ||||||||||||
| Regulatory assets | 1,228 | 1,170 | ||||||||||||
| Renewable energy credits | 633 | 348 | ||||||||||||
| Assets held for sale | 958 | — | ||||||||||||
| Other | 1,609 | 905 | ||||||||||||
| Total current assets | 12,562 | 12,037 | ||||||||||||
| Property, plant and equipment, net | 82,584 | 80,233 | ||||||||||||
| Deferred debits and other assets | ||||||||||||||
| Regulatory assets | 8,759 | 8,335 | ||||||||||||
| Nuclear decommissioning trust funds | 14,464 | 13,190 | ||||||||||||
| Investments | 440 | 464 | ||||||||||||
| Goodwill | 6,677 | 6,677 | ||||||||||||
| Mark-to-market derivative assets | 555 | 508 | ||||||||||||
| Unamortized energy contract assets | 294 | 336 | ||||||||||||
| Other | 2,982 | 3,197 | ||||||||||||
| Total deferred debits and other assets | 34,171 | 32,707 | ||||||||||||
| Total assets | $ | 129,317 | $ | 124,977 | ||||||||||
3
| December 31, 2020 | December 31, 2019 | |||||||||||||
| Liabilities and shareholders’ equity | ||||||||||||||
| Current liabilities | ||||||||||||||
| Short-term borrowings | $ | 2,031 | $ | 1,370 | ||||||||||
| Long-term debt due within one year | 1,819 | 4,710 | ||||||||||||
| Accounts payable | 3,562 | 3,560 | ||||||||||||
| Accrued expenses | 2,078 | 1,981 | ||||||||||||
| Payables to affiliates | 5 | 5 | ||||||||||||
| Regulatory liabilities | 581 | 406 | ||||||||||||
| Mark-to-market derivative liabilities | 295 | 247 | ||||||||||||
| Unamortized energy contract liabilities | 100 | 132 | ||||||||||||
| Renewable energy credit obligation | 661 | 443 | ||||||||||||
| Liabilities held for sale | 375 | — | ||||||||||||
| Other | 1,264 | 1,331 | ||||||||||||
| Total current liabilities | 12,771 | 14,185 | ||||||||||||
| Long-term debt | 35,093 | 31,329 | ||||||||||||
| Long-term debt to financing trusts | 390 | 390 | ||||||||||||
| Deferred credits and other liabilities | ||||||||||||||
| Deferred income taxes and unamortized investment tax credits | 13,035 | 12,351 | ||||||||||||
| Asset retirement obligations | 12,300 | 10,846 | ||||||||||||
| Pension obligations | 4,503 | 4,247 | ||||||||||||
| Non-pension postretirement benefit obligations | 2,011 | 2,076 | ||||||||||||
| Spent nuclear fuel obligation | 1,208 | 1,199 | ||||||||||||
| Regulatory liabilities | 9,485 | 9,986 | ||||||||||||
| Mark-to-market derivative liabilities | 473 | 393 | ||||||||||||
| Unamortized energy contract liabilities | 238 | 338 | ||||||||||||
| Other | 2,942 | 3,064 | ||||||||||||
| Total deferred credits and other liabilities | 46,195 | 44,500 | ||||||||||||
| Total liabilities | 94,449 | 90,404 | ||||||||||||
| Commitments and contingencies | ||||||||||||||
| Shareholders’ equity | ||||||||||||||
| Common stock | 19,373 | 19,274 | ||||||||||||
| Treasury stock, at cost | (123) | (123) | ||||||||||||
| Retained earnings | 16,735 | 16,267 | ||||||||||||
| Accumulated other comprehensive loss, net | (3,400) | (3,194) | ||||||||||||
| Total shareholders’ equity | 32,585 | 32,224 | ||||||||||||
| Noncontrolling interests | 2,283 | 2,349 | ||||||||||||
| Total equity | 34,868 | 34,573 | ||||||||||||
| Total liabilities and shareholders’ equity | $ | 129,317 | $ | 124,977 | ||||||||||
4
Exelon
Consolidated Statements of Cash Flows
(unaudited)
(in millions)
| Twelve Months Ended December 31, | ||||||||||||||
| 2020 | 2019 | |||||||||||||
| Cash flows from operating activities | ||||||||||||||
| Net income | $ | 1,954 | $ | 3,028 | ||||||||||
| Adjustments to reconcile net income to net cash flows provided by operating activities: | ||||||||||||||
| Depreciation, amortization, and accretion, including nuclear fuel and energy contract amortization | 6,527 | 5,780 | ||||||||||||
| Asset impairments | 591 | 201 | ||||||||||||
| Gain on sales of assets and businesses | (24) | (27) | ||||||||||||
| Deferred income taxes and amortization of investment tax credits | 309 | 681 | ||||||||||||
| Net fair value changes related to derivatives | (268) | 222 | ||||||||||||
| Net realized and unrealized (gains) losses on NDT funds | (461) | (663) | ||||||||||||
| Unrealized gain on equity investments | (186) | — | ||||||||||||
| Other non-cash operating activities | 592 | 613 | ||||||||||||
| Changes in assets and liabilities: | ||||||||||||||
| Accounts receivable | 697 | (243) | ||||||||||||
| Inventories | (85) | (87) | ||||||||||||
| Accounts payable and accrued expenses | (129) | (425) | ||||||||||||
| Option premiums (paid), net | (139) | (29) | ||||||||||||
| Collateral received (posted), net | 494 | (438) | ||||||||||||
| Income taxes | 140 | (64) | ||||||||||||
| Pension and non-pension postretirement benefit contributions | (601) | (408) | ||||||||||||
| Other assets and liabilities | (5,176) | (1,482) | ||||||||||||
| Net cash flows provided by operating activities | 4,235 | 6,659 | ||||||||||||
| Cash flows from investing activities | ||||||||||||||
| Capital expenditures | (8,048) | (7,248) | ||||||||||||
| Proceeds from NDT fund sales | 3,341 | 10,051 | ||||||||||||
| Investment in NDT funds | (3,464) | (10,087) | ||||||||||||
| Collection of DPP | 3,771 | — | ||||||||||||
| Acquisition of assets and businesses, net | — | (41) | ||||||||||||
| Proceeds from sales of assets and businesses | 46 | 53 | ||||||||||||
| Other investing activities | 18 | 12 | ||||||||||||
| Net cash flows used in investing activities | (4,336) | (7,260) | ||||||||||||
| Cash flows from financing activities | ||||||||||||||
| Changes in short-term borrowings | 161 | 781 | ||||||||||||
| Proceeds from short-term borrowings with maturities greater than 90 days | 500 | — | ||||||||||||
| Repayments on short-term borrowings with maturities greater than 90 days | — | (125) | ||||||||||||
| Issuance of long-term debt | 7,507 | 1,951 | ||||||||||||
| Retirement of long-term debt | (6,440) | (1,287) | ||||||||||||
| Dividends paid on common stock | (1,492) | (1,408) | ||||||||||||
| Proceeds from employee stock plans | 45 | 112 | ||||||||||||
| Other financing activities | (136) | (82) | ||||||||||||
| Net cash flows provided by (used in) financing activities | 145 | (58) | ||||||||||||
| Increase (decrease) in cash, restricted cash, and cash equivalents | 44 | (659) | ||||||||||||
| Cash, restricted cash, and cash equivalents at beginning of period | 1,122 | 1,781 | ||||||||||||
| Cash, restricted cash, and cash equivalents at end of period | $ | 1,166 | $ | 1,122 | ||||||||||
5
Exelon
Reconciliation of GAAP Net Income to Adjusted (non-GAAP) Operating Earnings and Analysis of Earnings
Three Months Ended December 31, 2020 and 2019
(unaudited)
(in millions, except per share data)
| Exelon Earnings per Diluted Share | ComEd | PECO | BGE | PHI | Generation | Other (a) | Exelon | ||||||||||||||||||||||||||||||||||||||||
| 2019 GAAP Net Income (Loss) | $ | 0.79 | $ | 144 | $ | 118 | $ | 99 | $ | 65 | $ | 397 | $ | (50) | $ | 773 | |||||||||||||||||||||||||||||||
| Mark-to-Market Impact of Economic Hedging Activities (net of taxes of $32, $3, and $35, respectively) | 0.10 | — | — | — | — | 95 | 6 | 101 | |||||||||||||||||||||||||||||||||||||||
| Unrealized Gains Related to NDT Funds (net of taxes of $102) (1) | (0.12) | — | — | — | — | (119) | — | (119) | |||||||||||||||||||||||||||||||||||||||
| Asset Impairments (net of taxes of $1) | — | — | — | — | — | 4 | — | 4 | |||||||||||||||||||||||||||||||||||||||
| Plant Retirements and Divestitures (net of taxes of $1) | — | — | — | — | — | 3 | — | 3 | |||||||||||||||||||||||||||||||||||||||
| Cost Management Program (net of taxes of $0, $0, $1, $4, $1, and $6, respectively) (2) | 0.02 | — | 1 | 2 | 3 | 13 | 2 | 21 | |||||||||||||||||||||||||||||||||||||||
| Change in Environmental Liabilities (net of taxes of $1) | — | — | — | — | — | 4 | — | 4 | |||||||||||||||||||||||||||||||||||||||
| Income Tax-Related Adjustments (entire amount represents tax expense) (3) | (0.01) | — | — | — | — | (2) | (6) | (8) | |||||||||||||||||||||||||||||||||||||||
| Noncontrolling Interests (net of taxes of $8) (4) | 0.03 | — | — | — | — | 33 | — | 33 | |||||||||||||||||||||||||||||||||||||||
| 2019 Adjusted (non-GAAP) Operating Earnings (Loss) | 0.83 | 144 | 119 | 101 | 68 | 427 | (48) | 810 | |||||||||||||||||||||||||||||||||||||||
| Year Over Year Effects on Adjusted (non-GAAP) Operating Earnings: | |||||||||||||||||||||||||||||||||||||||||||||||
| ComEd, PECO, BGE, and PHI: | |||||||||||||||||||||||||||||||||||||||||||||||
| Weather | (0.02) | — | (b) | (17) | — | (b) | (5) | (b) | — | — | (22) | ||||||||||||||||||||||||||||||||||||
| Load | 0.01 | — | (b) | 10 | — | (b) | 3 | (b) | — | — | 13 | ||||||||||||||||||||||||||||||||||||
| Other Energy Delivery (10) | 0.05 | 23 | (c) | 4 | (c) | 17 | (c) | 8 | (c) | — | — | 52 | |||||||||||||||||||||||||||||||||||
| Generation, Excluding Mark-to-Market: | |||||||||||||||||||||||||||||||||||||||||||||||
| Nuclear Volume (11) | (0.01) | — | — | — | — | (12) | — | (12) | |||||||||||||||||||||||||||||||||||||||
| Nuclear Fuel Cost (12) | 0.01 | — | — | — | — | 13 | — | 13 | |||||||||||||||||||||||||||||||||||||||
| Capacity Revenue (13) | 0.02 | — | — | — | — | 19 | — | 19 | |||||||||||||||||||||||||||||||||||||||
| Market and Portfolio Conditions (14) | (0.12) | — | — | — | — | (118) | — | (118) | |||||||||||||||||||||||||||||||||||||||
| Operating and Maintenance Expense: | |||||||||||||||||||||||||||||||||||||||||||||||
| Labor, Contracting, and Materials (15) | — | (10) | (8) | (1) | (4) | 27 | — | 4 | |||||||||||||||||||||||||||||||||||||||
| Planned Nuclear Refueling Outages (16) | 0.02 | — | — | — | — | 16 | — | 16 | |||||||||||||||||||||||||||||||||||||||
| Pension and Non-Pension Postretirement Benefits | 0.01 | — | 1 | — | 4 | 3 | (1) | 7 | |||||||||||||||||||||||||||||||||||||||
| Other Operating and Maintenance (17) | (0.01) | 3 | (1) | (20) | (9) | (39) | 58 | (8) | |||||||||||||||||||||||||||||||||||||||
| Depreciation and Amortization Expense (18) | (0.03) | (19) | (2) | (8) | (4) | (3) | 5 | (31) | |||||||||||||||||||||||||||||||||||||||
| Interest Expense, Net (19) | (0.05) | (5) | (2) | (4) | (2) | (11) | (29) | (53) | |||||||||||||||||||||||||||||||||||||||
| Income Taxes (20) | (0.08) | (4) | 29 | (2) | 13 | (70) | (46) | (80) | |||||||||||||||||||||||||||||||||||||||
| Noncontrolling Interests (21) | 0.01 | — | — | — | — | 5 | — | 5 | |||||||||||||||||||||||||||||||||||||||
| Other (22) | 0.13 | 2 | — | (4) | 9 | 134 | (11) | 130 | |||||||||||||||||||||||||||||||||||||||
| Total Year Over Year Effects on Adjusted (non-GAAP) Operating Earnings | (0.07) | (10) | 14 | (22) | 13 | (36) | (24) | (64) | |||||||||||||||||||||||||||||||||||||||
| 2020 GAAP Net Income (Loss) | 0.37 | 134 | 130 | 77 | 78 | 19 | (78) | 360 | |||||||||||||||||||||||||||||||||||||||
| Mark-to-Market Impact of Economic Hedging Activities (net of taxes of $38, $1, and $39, respectively) | 0.12 | — | — | — | — | 115 | 1 | 116 | |||||||||||||||||||||||||||||||||||||||
| Unrealized Gains Related to NDT Funds (net of taxes of $248) (1) | (0.27) | — | — | — | — | (264) | — | (264) | |||||||||||||||||||||||||||||||||||||||
| Plant Retirements and Divestitures (net of taxes of $127) (5) | 0.38 | — | — | — | — | 370 | — | 370 | |||||||||||||||||||||||||||||||||||||||
| Cost Management Program (net of taxes of $0, $1, $2, and $3, respectively) (2) | 0.01 | — | 1 | — | 2 | 7 | — | 10 | |||||||||||||||||||||||||||||||||||||||
| COVID-19 Direct Costs (net of taxes of $1, $0, $0, $3, and $4, respectively) (6) | 0.01 | — | 2 | 1 | 1 | 10 | — | 14 | |||||||||||||||||||||||||||||||||||||||
| Asset Retirement Obligation (net of taxes of $15) (7) | 0.05 | — | — | — | — | 45 | — | 45 | |||||||||||||||||||||||||||||||||||||||
| Acquisition Related Costs (net of taxes of $1) (8) | — | — | — | — | — | 2 | — | 2 | |||||||||||||||||||||||||||||||||||||||
| ERP System Implementation Costs (net of taxes of $0, $1, and $1, respectively) (9) | — | — | — | 1 | — | 2 | — | 3 | |||||||||||||||||||||||||||||||||||||||
| Income Tax-Related Adjustments (entire amount represents tax expense) | 0.01 | — | — | — | — | — | 5 | 5 | |||||||||||||||||||||||||||||||||||||||
| Noncontrolling Interests (net of taxes of $17) (4) | 0.09 | — | — | — | — | 85 | — | 85 | |||||||||||||||||||||||||||||||||||||||
| 2020 Adjusted (non-GAAP) Operating Earnings (Loss) | $ | 0.76 | $ | 134 | $ | 133 | $ | 79 | $ | 81 | $ | 391 | $ | (72) | $ | 746 | |||||||||||||||||||||||||||||||
6
Note:
Amounts may not sum due to rounding.
Unless otherwise noted, the income tax impact of each reconciling item between GAAP Net Income and Adjusted (non-GAAP) Operating Earnings is based on the marginal statutory federal and state income tax rates for each Registrant, taking into account whether the income or expense item is taxable or deductible, respectively, in whole or in part. For all items except the unrealized gains and losses related to NDT fund investments, the marginal statutory income tax rates for 2020 and 2019 ranged from 26.0% to 29.0%. Under IRS regulations, NDT fund investment returns are taxed at different rates for investments if they are in qualified or non-qualified funds. The effective tax rates for the unrealized gains and losses related to NDT fund investments were 48.4% and 46.1% for the three months ended December 31, 2020 and 2019, respectively.
(a)Other primarily includes eliminating and consolidating adjustments, Exelon’s corporate operations, shared service entities, and other financing and investment activities.
(b)For ComEd, BGE, Pepco, and DPL Maryland, customer rates are adjusted to eliminate the impacts of weather and customer usage on distribution volumes.
(c)For regulatory recovery mechanisms, including ComEd’s distribution formula rate, ComEd, PECO, BGE, and PHI utilities transmission formula rates, and riders across all utilities, revenues increase and decrease i) as fully recoverable costs fluctuate (with no impact on net earnings), and ii) pursuant to changes in rate base, capital structure, and ROE (which impact net earnings).
(1)Reflects the impact of net unrealized gains on Generation’s NDT fund investments for Non-Regulatory and Regulatory Agreement Units. The impacts of the Regulatory Agreement Units, including the associated income taxes, are contractually eliminated, resulting in no earnings impact.
(2)Primarily represents reorganization and severance costs related to cost management programs.
(3)Primarily reflects the adjustment to deferred income taxes due to changes in forecasted apportionment.
(4)Represents elimination from Generation’s results of the noncontrolling interests related to certain exclusion items, primarily related to unrealized gains and losses on NDT fund investments for CENG units.
(5)Primarily reflects accelerated depreciation and amortization associated with Generation's decisions in the third quarter of 2020 to early retire Byron and Dresden nuclear facilities in 2021 and Mystic Units 8 and 9 in 2024.
(6)Represents direct costs related to COVID-19 consisting primarily of costs to acquire personal protective equipment, costs for cleaning supplies and services, and costs to hire healthcare professionals to monitor the health of employees.
(7)Reflects an adjustment to Generation's nuclear asset retirement obligation for Non-Regulatory Agreement Units resulting from the annual update.
(8)Reflects costs related to the acquisition of Electricite de France SA's (EDF's) interest in CENG.
(9)Reflects costs related to a multi-year Enterprise Resource Program (ERP) system implementation.
(10)For ComEd, primarily reflects increased electric distribution and energy efficiency revenues (due to higher rate base and higher fully recoverable costs, partially offset by lower electric distribution ROE due to decreased treasury rates). For BGE and PHI, primarily reflects increased revenue as a result of rate increases.
(11)Primarily reflects an increase in planned nuclear outage days at Salem.
(12)Primarily reflects a decrease in fuel prices.
(13)Reflects increased capacity revenues in the Mid-Atlantic, Midwest, and New York Power Regions, partially offset by decreased capacity revenues in Other Power Regions.
(14)Primarily reflects lower realized energy prices and reduction in load due to COVID-19.
(15)For Generation, primarily reflects decreased contracting costs.
(16)Primarily reflects a decrease in the number of nuclear outage days in 2020, excluding Salem.
(17)For BGE, primarily reflects increased charitable contributions as a result of a commitment in 2020 to a multi-year small business grants program. For Generation, primarily reflects lower NEIL insurance distributions and an increase in planned nuclear outage days at Salem in 2020, partially offset by decreased travel costs as a result of COVID-19. For Corporate, primarily reflects decreased charitable contributions to the Exelon Foundation.
(18)Reflects ongoing capital expenditures across all utilities. For ComEd, also reflects increased amortization of deferred energy efficiency costs pursuant to FEJA and increased amortization related to the August 2020 storm regulatory asset.
(19)For Corporate, primarily reflects the absence of a prior year interest benefit related to research and development refund claims.
(20)For PECO, primarily reflects an increase in the tax repairs deduction. For Generation and Corporate, primarily reflects the absence of prior year research and development refund claims.
(21)Reflects elimination from Generation’s results of activity attributable to noncontrolling interests, primarily for CENG.
(22)For Generation, primarily reflects unrealized gains resulting from equity investments without readily determinable fair values that became publicly traded entities in the fourth quarter and were fair valued based on quoted market prices of the stock as of December 31, 2020.
7
Exelon
Reconciliation of GAAP Net Income to Adjusted (non-GAAP) Operating Earnings and Analysis of Earnings
Twelve Months Ended December 31, 2020 and 2019
(unaudited)
(in millions, except per share data)
| Exelon Earnings per Diluted Share | ComEd | PECO | BGE | PHI | Generation | Other (a) | Exelon | ||||||||||||||||||||||||||||||||||||||||
| 2019 GAAP Net Income (Loss) | $ | 3.01 | $ | 688 | $ | 528 | $ | 360 | $ | 477 | $ | 1,125 | $ | (242) | $ | 2,936 | |||||||||||||||||||||||||||||||
| Mark-to-Market Impact of Economic Hedging Activities (net of taxes of $58, $8, and $66, respectively) | 0.20 | — | — | — | — | 175 | 22 | 197 | |||||||||||||||||||||||||||||||||||||||
| Unrealized Gains Related to NDT Funds (net of taxes of $269) (1) | (0.31) | — | — | — | — | (299) | — | (299) | |||||||||||||||||||||||||||||||||||||||
| Asset Impairments (net of taxes of $56) (2) | 0.13 | — | — | — | — | 123 | — | 123 | |||||||||||||||||||||||||||||||||||||||
| Plant Retirements and Divestitures (net of taxes of $9) (3) | 0.12 | — | — | — | — | 118 | — | 118 | |||||||||||||||||||||||||||||||||||||||
| Cost Management Program (net of taxes of $1, $1, $3, $11, $1, and $17, respectively) (4) | 0.05 | — | 3 | 4 | 7 | 35 | 2 | 51 | |||||||||||||||||||||||||||||||||||||||
| Litigation Settlement Gain (net of taxes of $7) | (0.02) | — | — | — | — | (19) | — | (19) | |||||||||||||||||||||||||||||||||||||||
| Asset Retirement Obligation (net of taxes of $9) (5) | (0.09) | — | — | — | — | (84) | — | (84) | |||||||||||||||||||||||||||||||||||||||
| Change in Environmental Liabilities (net of taxes of $6, $2, and $8, respectively) | 0.02 | — | — | — | 16 | 4 | — | 20 | |||||||||||||||||||||||||||||||||||||||
| Income Tax-Related Adjustments (entire amount represents tax expense) (6) | 0.01 | — | — | — | 2 | 6 | (3) | 5 | |||||||||||||||||||||||||||||||||||||||
| Non Controlling Interests (net of taxes of $26) (7) | 0.09 | — | — | — | — | 90 | — | 90 | |||||||||||||||||||||||||||||||||||||||
| 2019 Adjusted (non-GAAP) Operating Earnings (Loss) | 3.22 | 688 | 531 | 364 | 502 | 1,276 | (222) | 3,139 | |||||||||||||||||||||||||||||||||||||||
| Year Over Year Effects on Adjusted (non-GAAP) Operating Earnings: | |||||||||||||||||||||||||||||||||||||||||||||||
| ComEd, PECO, BGE, and PHI: | |||||||||||||||||||||||||||||||||||||||||||||||
| Weather | (0.05) | — | (b) | (36) | — | (b) | (12) | (b) | — | — | (48) | ||||||||||||||||||||||||||||||||||||
| Load | — | — | (b) | 6 | — | (b) | (3) | (b) | — | — | 3 | ||||||||||||||||||||||||||||||||||||
| Other Energy Delivery (12) | 0.09 | 72 | (c) | 7 | (c) | 38 | (c) | (27) | (c) | — | — | 90 | |||||||||||||||||||||||||||||||||||
| Generation, Excluding Mark-to-Market: | |||||||||||||||||||||||||||||||||||||||||||||||
| Nuclear Volume (13) | (0.13) | — | — | — | — | (129) | — | (129) | |||||||||||||||||||||||||||||||||||||||
| Nuclear Fuel Cost (14) | 0.06 | — | — | — | — | 54 | — | 54 | |||||||||||||||||||||||||||||||||||||||
| Capacity Revenue (15) | (0.13) | — | — | — | — | (123) | — | (123) | |||||||||||||||||||||||||||||||||||||||
| Zero Emission Credit Revenue (16) | 0.01 | — | — | — | — | 5 | — | 5 | |||||||||||||||||||||||||||||||||||||||
| Market and Portfolio Conditions (17) | (0.19) | — | — | — | — | (183) | — | (183) | |||||||||||||||||||||||||||||||||||||||
| Operating and Maintenance Expense: | |||||||||||||||||||||||||||||||||||||||||||||||
| Labor, Contracting, and Materials (18) | 0.14 | (5) | (14) | 1 | (18) | 175 | — | 139 | |||||||||||||||||||||||||||||||||||||||
| Planned Nuclear Refueling Outages (19) | (0.03) | — | — | — | — | (31) | — | (31) | |||||||||||||||||||||||||||||||||||||||
| Pension and Non-Pension Postretirement Benefits | 0.02 | (4) | 3 | 1 | 11 | 14 | (2) | 23 | |||||||||||||||||||||||||||||||||||||||
| Other Operating and Maintenance (20) | — | 9 | (60) | (18) | (13) | 35 | 48 | 1 | |||||||||||||||||||||||||||||||||||||||
| Depreciation and Amortization Expense (21) | (0.10) | (71) | (10) | (35) | (20) | 27 | 14 | (95) | |||||||||||||||||||||||||||||||||||||||
| Interest Expense, Net (22) | (0.07) | (20) | (10) | (12) | (6) | 16 | (36) | (68) | |||||||||||||||||||||||||||||||||||||||
| Income Taxes (23) | 0.14 | (25) | 45 | 25 | 85 | 27 | (25) | 132 | |||||||||||||||||||||||||||||||||||||||
| Noncontrolling Interests (24) | 0.08 | — | — | — | — | 74 | — | 74 | |||||||||||||||||||||||||||||||||||||||
| Other (25) | 0.17 | 4 | (2) | (6) | 10 | 173 | (13) | 166 | |||||||||||||||||||||||||||||||||||||||
| Total Year Over Year Effects on Adjusted (non-GAAP) Operating Earnings | — | (40) | (71) | (6) | 7 | 134 | (14) | 10 | |||||||||||||||||||||||||||||||||||||||
| 2020 GAAP Net Income (Loss) | 2.01 | 438 | 447 | 349 | 495 | 589 | (355) | 1,963 | |||||||||||||||||||||||||||||||||||||||
| Mark-to-Market Impact of Economic Hedging Activities (net of taxes of $79, $6, and $73, respectively) | (0.22) | — | — | — | — | (234) | 21 | (213) | |||||||||||||||||||||||||||||||||||||||
| Unrealized Gains Related to NDT Funds (net of taxes of $278) (1) | (0.26) | — | — | — | — | (256) | — | (256) | |||||||||||||||||||||||||||||||||||||||
| Asset Impairments (net of taxes of $4, $130, and $135, respectively ) (2) | 0.41 | 11 | — | — | — | 385 | — | 396 | |||||||||||||||||||||||||||||||||||||||
| Plant Retirements and Divestitures (net of taxes of $244) (3) | 0.74 | — | — | — | — | 718 | — | 718 | |||||||||||||||||||||||||||||||||||||||
| Cost Management Program (net of taxes of $1, $1, $3, $10, $1, and $14, respectively) (4) | 0.05 | — | 4 | 4 | 8 | 31 | (2) | 45 | |||||||||||||||||||||||||||||||||||||||
| Change in Environmental Liabilities (net of taxes of $6) | 0.02 | — | — | — | — | 18 | — | 18 | |||||||||||||||||||||||||||||||||||||||
| COVID-19 Direct Costs (net of taxes of $4, $2, $2, $11, and $19, respectively) (8) | 0.05 | — | 9 | 4 | 4 | 33 | — | 50 | |||||||||||||||||||||||||||||||||||||||
| Deferred Prosecution Agreement Payments (net of taxes of $0) (9) | 0.20 | 200 | — | — | — | — | — | 200 | |||||||||||||||||||||||||||||||||||||||
| Asset Retirement Obligation (net of taxes of $1, $15, and $16, respectively) (5) | 0.05 | — | — | — | 3 | 45 | — | 48 | |||||||||||||||||||||||||||||||||||||||
| Acquisition Related Costs (net of tax of $1) (10) | — | — | — | — | — | 4 | — | 4 | |||||||||||||||||||||||||||||||||||||||
| ERP System Implementation Costs (net of taxes of $0, $1, and $1, respectively) (11) | — | — | — | 1 | — | 2 | — | 3 | |||||||||||||||||||||||||||||||||||||||
| Income Tax-Related Adjustments (entire amount represents tax expense) (6) | 0.07 | — | — | — | (1) | (28) | 100 | 71 | |||||||||||||||||||||||||||||||||||||||
| Noncontrolling Interests (net of taxes of $19) (7) | 0.11 | — | — | — | — | 103 | — | 103 | |||||||||||||||||||||||||||||||||||||||
| 2020 Adjusted (non-GAAP) Operating Earnings (Loss) | $ | 3.22 | $ | 648 | $ | 460 | $ | 358 | $ | 509 | $ | 1,410 | $ | (236) | $ | 3,149 | |||||||||||||||||||||||||||||||
8
Note:
Amounts may not sum due to rounding.
Unless otherwise noted, the income tax impact of each reconciling item between GAAP Net Income and Adjusted (non-GAAP) Operating Earnings is based on the marginal statutory federal and state income tax rates for each Registrant, taking into account whether the income or expense item is taxable or deductible, respectively, in whole or in part. For all items except the unrealized gains and losses related to NDT fund investments, the marginal statutory income tax rates for 2020 and 2019 ranged from 26.0% to 29.0%. Under IRS regulations, NDT fund investment returns are taxed at different rates for investments if they are in qualified or non-qualified funds. The effective tax rates for the unrealized gains and losses related to NDT fund investments were 52.1% and 47.3% for the twelve months ended December 31, 2020 and 2019, respectively.
(a)Other primarily includes eliminating and consolidating adjustments, Exelon’s corporate operations, shared service entities, and other financing and investment activities.
(b)For ComEd, BGE, Pepco, and DPL Maryland, customer rates are adjusted to eliminate the impacts of weather and customer usage on distribution volumes.
(c)For regulatory recovery mechanisms, including ComEd’s distribution formula rate, ComEd, PECO, BGE, and PHI utilities transmission formula rates, and riders across all utilities, revenues increase and decrease i) as fully recoverable costs fluctuate (with no impact on net earnings), and ii) pursuant to changes in rate base, capital structure, and ROE (which impact net earnings).
(1)Reflects the impact of net unrealized gains on Generation’s NDT fund investments for Non-Regulatory and Regulatory Agreement Units. The impacts of the Regulatory Agreement Units, including the associated income taxes, are contractually eliminated, resulting in no earnings impact.
(2)In 2019, primarily reflects the impairment of equity method investments in certain distributed energy companies. The impact of such impairment net of noncontrolling interest is $0.02. In 2020, reflects an impairment at ComEd in the second quarter of 2020 related to the acquisition of transmission assets and an impairment of the New England asset group in the third quarter of 2020.
(3)In 2019, primarily reflects accelerated depreciation and amortization expenses associated with the early retirement of the TMI nuclear facility and certain fossil sites and the loss on the sale of Oyster Creek to Holtec, partially offset by net realized gains related to Oyster Creek's NDT fund investments, a net benefit associated with remeasurements of the TMI ARO, and a gain on the sale of certain wind assets. In 2020, primarily reflects one-time charges and accelerated depreciation and amortization associated with Generation's decisions in the third quarter of 2020 to early retire Byron and Dresden nuclear facilities in 2021 and Mystic Units 8 and 9 in 2024.
(4)Primarily represents reorganization and severance costs related to cost management programs.
(5)Reflects an adjustment to Generation's nuclear asset retirement obligation for Non-Regulatory Agreement Units resulting from the annual update.
(6)Primarily reflects the adjustment to deferred income taxes due to changes in forecasted apportionment.
(7)Represents elimination from Generation’s results of the noncontrolling interests related to certain exclusion items. In 2019, primarily related to the impact of unrealized gains on NDT fund investments and the impact of the Generation's annual nuclear ARO update for CENG units, partially offset by the impairment of certain equity investments in distributed energy companies. In 2020, primarily related to unrealized gains and losses on NDT fund investments for CENG units.
(8)Represents direct costs related to COVID-19 consisting primarily of costs to acquire personal protective equipment, costs for cleaning supplies and services, and costs to hire healthcare professionals to monitor the health of employees.
(9)Reflects the payments made by ComEd under the Deferred Prosecution Agreement, which ComEd entered into on July 17, 2020 with the U.S. Attorney’s Office for the Northern District of Illinois.
(10)Reflects costs related to the acquisition of Electricite de France SA's (EDF's) interest in CENG.
(11)Reflects costs related to a multi-year Enterprise Resource Program (ERP) system implementation.
(12)For ComEd, primarily reflects increased electric distribution and energy efficiency revenues (due to higher rate base and higher fully recoverable costs, partially offset by lower electric distribution ROE due to decreased treasury rates). For BGE, reflects rate increases partially offset by decreased revenue primarily due to the settlement agreement of ongoing transmission related income tax regulatory liabilities in the second quarter of 2020. For PHI, reflects decreased revenue primarily due to the settlement agreement of ongoing transmission related income tax regulatory liabilities in the second quarter of 2020 partially offset by rate increases.
(13)Primarily reflects the permanent cease of generation operations at TMI in September 2019 and an increase in nuclear outage days.
(14)Primarily reflects a decrease in fuel prices and decreased nuclear output as a result of the permanent cease of generation operations at TMI.
(15)Reflects decreased capacity revenues in the Mid-Atlantic, Midwest, and Other Power Regions, partially offset by increased revenues in New York.
(16)Primarily reflects the approval of the New Jersey ZEC Program in the second quarter of 2019.
(17)Primarily reflects reduction in load due to COVID-19 and lower realized energy prices, partially offset by higher portfolio optimization.
(18)For Generation, primarily reflects decreased costs related to the permanent cease of generation operations at TMI, lower labor costs resulting from previous cost management programs, and lower contracting costs.
(19)Primarily reflects an increase in the number of nuclear outage days in 2020, excluding Salem.
(20)For ComEd, primarily reflects decreased storm costs as a result of the August 2020 storm costs being reclassified to a regulatory asset. For PECO, primarily reflects increased storm costs primarily related to the June and August 2020 storms and an increase in credit loss expense. For BGE, primarily reflects increased charitable contributions as a result of a commitment in 2020 to a multi-year small business grants program. For PHI, primarily reflects increased storm costs primarily related to the August 2020 storms and an increase in credit loss expense, partially offset by decreased lease expense due expiration of a lease arrangement in the fourth quarter of 2019. For Generation, primarily reflects decreased travel costs as a result of COVID-19, partially offset by lower NEIL insurance distributions and an increase in credit loss expense that includes the impacts of COVID-19. For Corporate, primarily reflects decreased charitable contributions to the Exelon Foundation.
(21)Reflects ongoing capital expenditures across all utilities. For ComEd, also reflects increased amortization of deferred energy efficiency costs pursuant to FEJA and increased amortization related to the August 2020 storm regulatory asset. For Generation, reflects a decrease primarily due to the extension of the Peach Bottom license.
(22)For Generation, includes an interest benefit related to a one-time income tax settlement. For Corporate, primarily reflects the absence of a prior year interest benefit related to research and development refund claims.
(23)For PECO, primarily reflects an increase in the tax repairs deduction. For BGE and PHI, reflects the settlement agreement of transmission related income tax regulatory liabilities in the second quarter of 2020. For Generation, primarily reflects one-time income tax settlements, partially offset by research and development refund claims and tax credits.
(24)Reflects elimination from Generation’s results of activity attributable to noncontrolling interests, primarily for CENG.
(25)For Generation, primarily reflects unrealized gains resulting from equity investments without readily determinable fair values that became publicly traded entities in the fourth quarter and were fair valued based on quoted market prices of the stock as of December 31, 2020 and higher realized NDT fund gains.
9
Exelon
GAAP Consolidated Statements of Operations and
Adjusted (non-GAAP) Operating Earnings Reconciling Adjustments
(unaudited)
(in millions, except per share data)
| Three Months Ended December 31, 2020 | Three Months Ended December 31, 2019 | |||||||||||||||||||||||||||||||||||||
| GAAP (a) | Non-GAAP Adjustments | GAAP (a) | Non-GAAP Adjustments | |||||||||||||||||||||||||||||||||||
| Operating revenues | $ | 8,117 | $ | 128 | (c) | $ | 8,343 | $ | 67 | (c) | ||||||||||||||||||||||||||||
| Operating expenses | ||||||||||||||||||||||||||||||||||||||
| Purchased power and fuel | 3,698 | (99) | (c),(d) | 3,766 | (64) | (c) | ||||||||||||||||||||||||||||||||
| Operating and maintenance | 2,039 | 120 | (d),(e),(f),(g),(h),(i) | 2,196 | (32) | (d),(e),(m),(n) | ||||||||||||||||||||||||||||||||
| Depreciation and amortization | 1,702 | (663) | (d) | 1,015 | (20) | (d) | ||||||||||||||||||||||||||||||||
| Taxes other than income taxes | 414 | — | 417 | — | ||||||||||||||||||||||||||||||||||
| Total operating expenses | 7,853 | 7,394 | ||||||||||||||||||||||||||||||||||||
| Gain on sales of assets and businesses | 8 | 1 | (d) | 11 | (11) | (d) | ||||||||||||||||||||||||||||||||
| Operating income | 272 | 960 | ||||||||||||||||||||||||||||||||||||
| Other income and (deductions) | ||||||||||||||||||||||||||||||||||||||
| Interest expense, net | (395) | (22) | (c) | (395) | (5) | (c) | ||||||||||||||||||||||||||||||||
| Other, net | 792 | (511) | (j) | 391 | (221) | (j) | ||||||||||||||||||||||||||||||||
| Total other income and (deductions) | 397 | (4) | ||||||||||||||||||||||||||||||||||||
| Income (loss) before income taxes | 669 | 956 | ||||||||||||||||||||||||||||||||||||
| Income taxes | 232 | (62) | (c),(d),(e),(f),(g),(h),(i),(j),(k) | 147 | (61) | (c),(e),(j),(l),(m),(n) | ||||||||||||||||||||||||||||||||
| Equity in losses of unconsolidated affiliates | (1) | — | (1) | — | ||||||||||||||||||||||||||||||||||
| Net income | 436 | 808 | ||||||||||||||||||||||||||||||||||||
| Net income (loss) attributable to noncontrolling interests | 76 | (86) | (o) | 35 | (33) | (o) | ||||||||||||||||||||||||||||||||
| Net income attributable to common shareholders | $ | 360 | $ | 773 | ||||||||||||||||||||||||||||||||||
Effective tax rate(b) | 34.7 | % | 15.4 | % | ||||||||||||||||||||||||||||||||||
| Earnings per average common share | ||||||||||||||||||||||||||||||||||||||
| Basic | $ | 0.37 | $ | 0.79 | ||||||||||||||||||||||||||||||||||
| Diluted | $ | 0.37 | $ | 0.79 | ||||||||||||||||||||||||||||||||||
| Average common shares outstanding | ||||||||||||||||||||||||||||||||||||||
| Basic | 977 | 974 | ||||||||||||||||||||||||||||||||||||
| Diluted | 978 | 975 | ||||||||||||||||||||||||||||||||||||
__________
(a)Results reported in accordance with accounting principles generally accepted in the United States (GAAP).
(b)The effective tax rate related to Adjusted (non-GAAP) Operating Earnings is 18.7% and 9.5% for the three months ended December 31, 2020 and 2019, respectively.
(c)Adjustment to exclude the mark-to-market impact of Exelon's economic hedging activities, net of intercompany eliminations.
(d)In 2020, adjustment to exclude primarily accelerated depreciation and amortization associated with Generation's decisions in the third quarter of 2020 to early retire Byron and Dresden nuclear facilities in 2021 and Mystic Units 8 and 9 in 2024. In 2019, adjustment to exclude costs related to plant retirements and divestitures.
(e)Adjustment to exclude reorganization and severance costs related to cost management programs.
(f)Adjustment to exclude direct costs related to COVID-19 consisting primarily of costs to acquire personal protective equipment, costs for cleaning supplies and services, and costs to hire healthcare professionals to monitor the health of employees.
(g)Adjustment to exclude an adjustment to Generation's nuclear asset retirement obligation for Non-Regulatory Agreement Units resulting from the annual update.
(h)Adjustment to exclude costs related to the acquisition of Electricite de France SA's (EDF's) interest in CENG.
(i)Adjustment to exclude costs related to a multi-year Enterprise Resource Program (ERP) system implementation.
(j)Adjustment to exclude the impact of net unrealized gains on Generation’s NDT fund investments for Non-Regulatory and Regulatory Agreement Units. The impacts of the Regulatory Agreement Units, including the associated income taxes, are contractually eliminated, resulting in no earnings impact.
(k)Adjustment to exclude income-tax related adjustments.
(l)Adjustment to exclude the adjustment to deferred income taxes due to changes in the forecasted apportionment.
(m)Adjustment to exclude a change in environmental liabilities.
(n)Adjustment to exclude asset impairments.
(o)Adjustment to exclude the elimination from Generation’s results of the noncontrolling interests related to certain exclusion items, primarily related to unrealized gains and losses on NDT fund investments for CENG units.
10
Exelon
GAAP Consolidated Statements of Operations and
Adjusted (non-GAAP) Operating Earnings Reconciling Adjustments
(unaudited)
(in millions, except per share data)
| Twelve Months Ended December 31, 2020 | Twelve Months Ended December 31, 2019 | |||||||||||||||||||||||||||||||||||||
| GAAP (a) | Non-GAAP Adjustments | GAAP (a) | Non-GAAP Adjustments | |||||||||||||||||||||||||||||||||||
| Operating revenues | $ | 33,039 | $ | (110) | (c) | $ | 34,438 | $ | 3 | (c) | ||||||||||||||||||||||||||||
| Operating expenses | ||||||||||||||||||||||||||||||||||||||
| Purchased power and fuel | 14,104 | 111 | (c),(d) | 15,497 | (224) | (c),(d) | ||||||||||||||||||||||||||||||||
| Operating and maintenance | 9,408 | (904) | (d),(e),(f),(g),(h),(i),(j),(k),(l) | 8,615 | 37 | (d),(e),(f),(g),(j),(o) | ||||||||||||||||||||||||||||||||
| Depreciation and amortization | 5,014 | (939) | (d) | 4,252 | (314) | (d) | ||||||||||||||||||||||||||||||||
| Taxes other than income taxes | 1,714 | (1) | (d),(f) | 1,732 | — | |||||||||||||||||||||||||||||||||
| Total operating expenses | 30,240 | 30,096 | ||||||||||||||||||||||||||||||||||||
| Gain on sales of assets and businesses | 24 | (3) | (c),(d) | 31 | (27) | (d) | ||||||||||||||||||||||||||||||||
| Gain on deconsolidation of business | — | — | 1 | — | ||||||||||||||||||||||||||||||||||
| Operating income | 2,823 | 4,374 | ||||||||||||||||||||||||||||||||||||
| Other income and (deductions) | ||||||||||||||||||||||||||||||||||||||
| Interest expense, net | (1,635) | 26 | (c),(m) | (1,616) | 38 | (c) | ||||||||||||||||||||||||||||||||
| Other, net | 1,145 | (534) | (n) | 1,227 | (722) | (c),(d),(n) | ||||||||||||||||||||||||||||||||
| Total other income and (deductions) | (490) | (389) | ||||||||||||||||||||||||||||||||||||
| Income before income taxes | 2,333 | 3,985 | ||||||||||||||||||||||||||||||||||||
| Income taxes | 373 | 26 | (c),(d),(e),(f),(g),(h),(j),(k),(l),(m),(n) | 774 | (156) | (c),(d),(e),(f),(g),(j),(m),(n),(o) | ||||||||||||||||||||||||||||||||
| Equity in losses of unconsolidated affiliates | (6) | — | (183) | 164 | (e) | |||||||||||||||||||||||||||||||||
| Net income | 1,954 | 3,028 | ||||||||||||||||||||||||||||||||||||
| Net income attributable to noncontrolling interests | (9) | (101) | (p) | 92 | (91) | (p) | ||||||||||||||||||||||||||||||||
| Net income attributable to common shareholders | $ | 1,963 | $ | 2,936 | ||||||||||||||||||||||||||||||||||
Effective tax rate(b) | 16.0 | % | 19.4 | % | ||||||||||||||||||||||||||||||||||
| Earnings per average common share | ||||||||||||||||||||||||||||||||||||||
| Basic | $ | 2.01 | $ | 3.02 | ||||||||||||||||||||||||||||||||||
| Diluted | $ | 2.01 | $ | 3.01 | ||||||||||||||||||||||||||||||||||
| Average common shares outstanding | ||||||||||||||||||||||||||||||||||||||
| Basic | 976 | 973 | ||||||||||||||||||||||||||||||||||||
| Diluted | 977 | 974 | ||||||||||||||||||||||||||||||||||||
__________
(a)Results reported in accordance with accounting principles generally accepted in the United States (GAAP).
(b)The effective tax rate related to Adjusted (non-GAAP) Operating Earnings is 11.6% and 16.4% for the twelve months ended December 31, 2020 and 2019, respectively.
(c)Adjustment to exclude the mark-to-market impact of Exelon's economic hedging activities, net of intercompany eliminations.
(d)In 2020, adjustment to exclude one-time charges and accelerated depreciation and amortization associated with Generation's decisions in the third quarter of 2020 to early retire Byron and Dresden nuclear facilities in 2021 and Mystic Units 8 and 9 in 2024. In 2019, adjustment to exclude accelerated depreciation and amortization expenses associated with the early retirement of the TMI nuclear facility and certain fossil sites and the loss on the sale of Oyster Creek to Holtec, partially offset by net realized gains related to Oyster Creek's NDT fund investments, a net benefit associated with remeasurements of the TMI ARO, and a gain on the sale of certain wind assets.
(e)In 2020, adjustment to exclude an impairment at ComEd in the second quarter of 2020 related to the acquisition of transmission assets and an impairment of the New England asset group in the third quarter of 2020. In 2019, adjustment to exclude the impairment of equity method investments in certain distributed energy companies.
(f)Adjustment to exclude reorganization and severance costs related to cost management programs.
(g)Adjustment to exclude a change in environmental liabilities.
(h)Adjustment to exclude direct costs related to COVID-19 consisting primarily of costs to acquire personal protective equipment, costs for cleaning supplies and services, and costs to hire healthcare professionals to monitor the health of employees.
(i)Adjustment to exclude the payments made by ComEd under the Deferred Prosecution Agreement, which ComEd entered into on July 17, 2020 with the U.S. Attorney’s Office for the Northern District of Illinois.
(j)Adjustment to exclude an adjustment to Generation's nuclear asset retirement obligation for Non-Regulatory Agreement Units resulting from the annual update.
(k)Adjustment to exclude costs related to the acquisition of Electricite de France SA's (EDF's) interest in CENG.
(l)Adjustment to exclude costs related to a multi-year Enterprise Resource Program (ERP) system implementation.
(m)Adjustment to exclude the adjustment to deferred income taxes due to changes in forecasted apportionment.
11
(n)Adjustment to exclude the impact of net unrealized gains on Generation’s NDT fund investments for Non-Regulatory and Regulatory Agreement Units. The impacts of the Regulatory Agreement Units, including the associated income taxes, are contractually eliminated, resulting in no earnings impact.
(o)Adjustment to exclude a gain related to a litigation settlement.
(p)Adjustment to exclude from Generation’s results of the noncontrolling interests related to certain exclusion items. In 2020, primarily related to unrealized gains and losses on NDT fund investments for CENG units. In 2019, primarily related to the impact of unrealized gains on NDT fund investments and the impact of the Generation's annual nuclear ARO update for CENG units, partially offset by the impairment of certain equity investments in distributed energy companies.
12
ComEd
GAAP Consolidated Statements of Operations and
Adjusted (non-GAAP) Operating Earnings Reconciling Adjustments
(unaudited)
(in millions)
| Three Months Ended December 31, 2020 | Three Months Ended December 31, 2019 | |||||||||||||||||||||||||||||||||||||
| GAAP (a) | Non-GAAP Adjustments | GAAP (a) | Non-GAAP Adjustments | |||||||||||||||||||||||||||||||||||
| Operating revenues | $ | 1,404 | $ | — | $ | 1,405 | $ | — | ||||||||||||||||||||||||||||||
| Operating expenses | ||||||||||||||||||||||||||||||||||||||
| Purchased power and fuel | 441 | — | 474 | — | ||||||||||||||||||||||||||||||||||
| Operating and maintenance | 347 | — | 337 | — | ||||||||||||||||||||||||||||||||||
| Depreciation and amortization | 292 | — | 266 | — | ||||||||||||||||||||||||||||||||||
| Taxes other than income taxes | 72 | — | 73 | — | ||||||||||||||||||||||||||||||||||
| Total operating expenses | 1,152 | 1,150 | ||||||||||||||||||||||||||||||||||||
| Operating income | 252 | 255 | ||||||||||||||||||||||||||||||||||||
| Other income and (deductions) | ||||||||||||||||||||||||||||||||||||||
| Interest expense, net | (95) | — | (90) | — | ||||||||||||||||||||||||||||||||||
| Other, net | 12 | — | 12 | — | ||||||||||||||||||||||||||||||||||
| Total other income and (deductions) | (83) | (78) | ||||||||||||||||||||||||||||||||||||
| Income before income taxes | 169 | 177 | ||||||||||||||||||||||||||||||||||||
| Income taxes | 35 | — | 33 | — | ||||||||||||||||||||||||||||||||||
| Net income | $ | 134 | $ | 144 | ||||||||||||||||||||||||||||||||||
| Twelve Months Ended December 31, 2020 | Twelve Months Ended December 31, 2019 | |||||||||||||||||||||||||||||||||||||
| GAAP (a) | Non-GAAP Adjustments | GAAP (a) | Non-GAAP Adjustments | |||||||||||||||||||||||||||||||||||
| Operating revenues | $ | 5,904 | $ | — | $ | 5,747 | $ | — | ||||||||||||||||||||||||||||||
| Operating expenses | ||||||||||||||||||||||||||||||||||||||
| Purchased power and fuel | 1,998 | — | 1,941 | — | ||||||||||||||||||||||||||||||||||
| Operating and maintenance | 1,520 | (215) | (b),(c) | 1,305 | — | |||||||||||||||||||||||||||||||||
| Depreciation and amortization | 1,133 | — | 1,033 | — | ||||||||||||||||||||||||||||||||||
| Taxes other than income taxes | 299 | — | 301 | — | ||||||||||||||||||||||||||||||||||
| Total operating expenses | 4,950 | 4,580 | ||||||||||||||||||||||||||||||||||||
| Gain on sales of assets | — | — | 4 | — | ||||||||||||||||||||||||||||||||||
| Operating income | 954 | 1,171 | ||||||||||||||||||||||||||||||||||||
| Other income and (deductions) | ||||||||||||||||||||||||||||||||||||||
| Interest expense, net | (382) | — | (359) | — | ||||||||||||||||||||||||||||||||||
| Other, net | 43 | — | 39 | — | ||||||||||||||||||||||||||||||||||
| Total other income and (deductions) | (339) | (320) | ||||||||||||||||||||||||||||||||||||
| Income before income taxes | 615 | 851 | ||||||||||||||||||||||||||||||||||||
| Income taxes | 177 | 4 | (b) | 163 | — | |||||||||||||||||||||||||||||||||
| Net income | $ | 438 | $ | 688 | ||||||||||||||||||||||||||||||||||
__________
(a)Results reported in accordance with accounting principles generally accepted in the United States (GAAP).
(b)Adjustment to exclude an impairment related to the acquisition of transmission assets.
(c)Adjustment to exclude the payments that ComEd made under the Deferred Prosecution Agreement, which ComEd entered into on July 17, 2020 with the U.S. Attorney’s Office for the Northern District of Illinois.
13
PECO
GAAP Consolidated Statements of Operations and
Adjusted (non-GAAP) Operating Earnings Reconciling Adjustments
(unaudited)
(in millions)
| Three Months Ended December 31, 2020 | Three Months Ended December 31, 2019 | |||||||||||||||||||||||||||||||||||||
| GAAP (a) | Non-GAAP Adjustments | GAAP (a) | Non-GAAP Adjustments | |||||||||||||||||||||||||||||||||||
| Operating revenues | $ | 752 | $ | — | $ | 766 | $ | — | ||||||||||||||||||||||||||||||
| Operating expenses | ||||||||||||||||||||||||||||||||||||||
| Purchased power and fuel | 250 | — | 260 | — | ||||||||||||||||||||||||||||||||||
| Operating and maintenance | 233 | (4) | (b),(c) | 219 | (1) | (b) | ||||||||||||||||||||||||||||||||
| Depreciation and amortization | 88 | — | 85 | — | ||||||||||||||||||||||||||||||||||
| Taxes other than income taxes | 41 | — | 40 | — | ||||||||||||||||||||||||||||||||||
| Total operating expenses | 612 | 604 | ||||||||||||||||||||||||||||||||||||
| Operating income | 140 | 162 | ||||||||||||||||||||||||||||||||||||
| Other income and (deductions) | ||||||||||||||||||||||||||||||||||||||
| Interest expense, net | (38) | — | (36) | — | ||||||||||||||||||||||||||||||||||
| Other, net | 5 | — | 5 | — | ||||||||||||||||||||||||||||||||||
| Total other income and (deductions) | (33) | (31) | ||||||||||||||||||||||||||||||||||||
| Income before income taxes | 107 | 131 | ||||||||||||||||||||||||||||||||||||
| Income taxes | (23) | 1 | (b),(c) | 13 | — | |||||||||||||||||||||||||||||||||
| Net income | $ | 130 | $ | 118 | ||||||||||||||||||||||||||||||||||
| Twelve Months Ended December 31, 2020 | Twelve Months Ended December 31, 2019 | |||||||||||||||||||||||||||||||||||||
| GAAP (a) | Non-GAAP Adjustments | GAAP (a) | Non-GAAP Adjustments | |||||||||||||||||||||||||||||||||||
| Operating revenues | $ | 3,058 | $ | — | $ | 3,100 | $ | — | ||||||||||||||||||||||||||||||
| Operating expenses | ||||||||||||||||||||||||||||||||||||||
| Purchased power and fuel | 1,018 | — | 1,029 | — | ||||||||||||||||||||||||||||||||||
| Operating and maintenance | 975 | (18) | (b),(c) | 861 | (4) | (b) | ||||||||||||||||||||||||||||||||
| Depreciation and amortization | 347 | — | 333 | — | ||||||||||||||||||||||||||||||||||
| Taxes other than income taxes | 172 | — | 165 | — | ||||||||||||||||||||||||||||||||||
| Total operating expenses | 2,512 | 2,388 | ||||||||||||||||||||||||||||||||||||
| Gain on sales of assets | — | — | 1 | — | ||||||||||||||||||||||||||||||||||
| Operating income | 546 | 713 | ||||||||||||||||||||||||||||||||||||
| Other income and (deductions) | ||||||||||||||||||||||||||||||||||||||
| Interest expense, net | (147) | — | (136) | — | ||||||||||||||||||||||||||||||||||
| Other, net | 18 | — | 16 | — | ||||||||||||||||||||||||||||||||||
| Total other income and (deductions) | (129) | (120) | ||||||||||||||||||||||||||||||||||||
| Income before income taxes | 417 | 593 | ||||||||||||||||||||||||||||||||||||
| Income taxes | (30) | 5 | (b),(c) | 65 | 1 | (b) | ||||||||||||||||||||||||||||||||
| Net income | $ | 447 | $ | 528 | ||||||||||||||||||||||||||||||||||
__________
(a)Results reported in accordance with accounting principles generally accepted in the United States (GAAP).
(b)Adjustment to exclude reorganization and severance costs related to cost management programs.
(c)Adjustment to exclude direct costs related to COVID-19 consisting primarily of costs to acquire personal protective equipment, costs for cleaning supplies and services, and costs to hire healthcare professionals to monitor the health of employees.
14
BGE
GAAP Consolidated Statements of Operations and
Adjusted (non-GAAP) Operating Earnings Reconciling Adjustments
(unaudited)
(in millions)
| Three Months Ended December 31, 2020 | Three Months Ended December 31, 2019 | |||||||||||||||||||||||||||||||||||||
| GAAP (a) | Non-GAAP Adjustments | GAAP (a) | Non-GAAP Adjustments | |||||||||||||||||||||||||||||||||||
| Operating revenues | $ | 814 | $ | — | $ | 779 | $ | — | ||||||||||||||||||||||||||||||
| Operating expenses | ||||||||||||||||||||||||||||||||||||||
| Purchased power and fuel | 260 | — | 248 | — | ||||||||||||||||||||||||||||||||||
| Operating and maintenance | 223 | (3) | (b),(c) | 192 | (2) | (d) | ||||||||||||||||||||||||||||||||
| Depreciation and amortization | 144 | — | 133 | — | ||||||||||||||||||||||||||||||||||
| Taxes other than income taxes | 68 | — | 64 | — | ||||||||||||||||||||||||||||||||||
| Total operating expenses | 695 | 637 | ||||||||||||||||||||||||||||||||||||
| Operating income | 119 | 142 | ||||||||||||||||||||||||||||||||||||
| Other income and (deductions) | ||||||||||||||||||||||||||||||||||||||
| Interest expense, net | (35) | — | (32) | — | ||||||||||||||||||||||||||||||||||
| Other, net | 7 | — | 9 | — | ||||||||||||||||||||||||||||||||||
| Total other income and (deductions) | (28) | (23) | ||||||||||||||||||||||||||||||||||||
| Income before income taxes | 91 | 119 | ||||||||||||||||||||||||||||||||||||
| Income taxes | 14 | 1 | (b),(c) | 20 | — | |||||||||||||||||||||||||||||||||
| Net income | $ | 77 | $ | 99 | ||||||||||||||||||||||||||||||||||
| Twelve Months Ended December 31, 2020 | Twelve Months Ended December 31, 2019 | |||||||||||||||||||||||||||||||||||||
| GAAP (a) | Non-GAAP Adjustments | GAAP (a) | Non-GAAP Adjustments | |||||||||||||||||||||||||||||||||||
| Operating revenues | $ | 3,098 | $ | — | $ | 3,106 | $ | — | ||||||||||||||||||||||||||||||
| Operating expenses | ||||||||||||||||||||||||||||||||||||||
| Purchased power and fuel | 991 | — | 1,052 | — | ||||||||||||||||||||||||||||||||||
| Operating and maintenance | 789 | (12) | (b),(c),(d) | 760 | (5) | (d) | ||||||||||||||||||||||||||||||||
| Depreciation and amortization | 550 | — | 502 | — | ||||||||||||||||||||||||||||||||||
| Taxes other than income taxes | 268 | — | 260 | — | ||||||||||||||||||||||||||||||||||
| Total operating expenses | 2,598 | 2,574 | ||||||||||||||||||||||||||||||||||||
| Operating income | 500 | 532 | ||||||||||||||||||||||||||||||||||||
| Other income and (deductions) | ||||||||||||||||||||||||||||||||||||||
| Interest expense, net | (133) | — | (121) | — | ||||||||||||||||||||||||||||||||||
| Other, net | 23 | — | 28 | — | ||||||||||||||||||||||||||||||||||
| Total other income and (deductions) | (110) | (93) | ||||||||||||||||||||||||||||||||||||
| Income before income taxes | 390 | 439 | ||||||||||||||||||||||||||||||||||||
| Income taxes | 41 | 3 | (b),(c),(d) | 79 | 1 | (d) | ||||||||||||||||||||||||||||||||
| Net income | $ | 349 | $ | 360 | ||||||||||||||||||||||||||||||||||
__________
(a)Results reported in accordance with accounting principles generally accepted in the United States (GAAP).
(b)Adjustment to exclude direct costs related to COVID-19 consisting primarily of costs to acquire personal protective equipment, costs for cleaning supplies and services, and costs to hire healthcare professionals to monitor the health of employees.
(c)Adjustment to exclude costs related to a multi-year Enterprise Resource Program (ERP) system implementation.
(d)Adjustment to exclude reorganization and severance costs related to cost management programs.
15
PHI
GAAP Consolidated Statements of Operations and
Adjusted (non-GAAP) Operating Earnings Reconciling Adjustments
(unaudited)
(in millions)
| Three Months Ended December 31, 2020 | Three Months Ended December 31, 2019 | |||||||||||||||||||||||||||||||||||||
| GAAP (a) | Non-GAAP Adjustments | GAAP (a) | Non-GAAP Adjustments | |||||||||||||||||||||||||||||||||||
| Operating revenues | $ | 1,108 | $ | — | $ | 1,107 | $ | — | ||||||||||||||||||||||||||||||
| Operating expenses | ||||||||||||||||||||||||||||||||||||||
| Purchased power and fuel | 399 | — | 406 | — | ||||||||||||||||||||||||||||||||||
| Operating and maintenance | 286 | (4) | (b),(c) | 272 | (3) | (b) | ||||||||||||||||||||||||||||||||
| Depreciation and amortization | 197 | — | 192 | — | ||||||||||||||||||||||||||||||||||
| Taxes other than income taxes | 106 | — | 109 | — | ||||||||||||||||||||||||||||||||||
| Total operating expenses | 988 | 979 | ||||||||||||||||||||||||||||||||||||
| Gain on sales of assets | 9 | — | — | — | ||||||||||||||||||||||||||||||||||
| Operating income | 129 | 128 | ||||||||||||||||||||||||||||||||||||
| Other income and (deductions) | ||||||||||||||||||||||||||||||||||||||
| Interest expense, net | (67) | — | (65) | — | ||||||||||||||||||||||||||||||||||
| Other, net | 16 | — | 15 | — | ||||||||||||||||||||||||||||||||||
| Total other income and (deductions) | (51) | (50) | ||||||||||||||||||||||||||||||||||||
| Income before income taxes | 78 | 78 | ||||||||||||||||||||||||||||||||||||
| Income taxes | — | 1 | (b),(c) | 13 | — | |||||||||||||||||||||||||||||||||
| Net income | $ | 78 | $ | 65 | ||||||||||||||||||||||||||||||||||
| Twelve Months Ended December 31, 2020 | Twelve Months Ended December 31, 2019 | |||||||||||||||||||||||||||||||||||||
| GAAP (a) | Non-GAAP Adjustments | GAAP (a) | Non-GAAP Adjustments | |||||||||||||||||||||||||||||||||||
| Operating revenues | $ | 4,663 | $ | — | $ | 4,806 | $ | — | ||||||||||||||||||||||||||||||
| Operating expenses | ||||||||||||||||||||||||||||||||||||||
| Purchased power and fuel | 1,714 | — | 1,798 | — | ||||||||||||||||||||||||||||||||||
| Operating and maintenance | 1,099 | (21) | (b),(c),(d) | 1,082 | (32) | (b),(e) | ||||||||||||||||||||||||||||||||
| Depreciation and amortization | 782 | — | 754 | — | ||||||||||||||||||||||||||||||||||
| Taxes other than income taxes | 450 | — | 450 | — | ||||||||||||||||||||||||||||||||||
| Total operating expenses | 4,045 | 4,084 | ||||||||||||||||||||||||||||||||||||
| Gain on sales of assets | 11 | — | — | — | ||||||||||||||||||||||||||||||||||
| Operating income | 629 | 722 | ||||||||||||||||||||||||||||||||||||
| Other income and (deductions) | ||||||||||||||||||||||||||||||||||||||
| Interest expense, net | (268) | — | (263) | — | ||||||||||||||||||||||||||||||||||
| Other, net | 57 | — | 55 | — | ||||||||||||||||||||||||||||||||||
| Total other income and (deductions) | (211) | (208) | ||||||||||||||||||||||||||||||||||||
| Income before income taxes | 418 | 514 | ||||||||||||||||||||||||||||||||||||
| Income taxes | (77) | 7 | (b),(c),(d),(f) | 38 | 7 | (b),(e) | ||||||||||||||||||||||||||||||||
| Equity in earnings of unconsolidated affiliates | — | — | 1 | — | ||||||||||||||||||||||||||||||||||
| Net income | $ | 495 | $ | 477 | ||||||||||||||||||||||||||||||||||
__________
(a)Results reported in accordance with accounting principles generally accepted in the United States (GAAP).
(b)Adjustment to exclude reorganization and severance costs related to cost management programs.
(c)Adjustment to exclude direct costs related to COVID-19 consisting primarily of costs to acquire personal protective equipment, costs for cleaning supplies and services, and costs to hire healthcare professionals to monitor the health of employees.
(d)Adjustment to exclude an ARO update.
(e)Adjustment to exclude an increase at Pepco related primarily to an increase in environmental liabilities.
(f)Adjustment to exclude deferred income taxes due to changes in forecasted apportionment.
16
Generation
GAAP Consolidated Statements of Operations and
Adjusted (non-GAAP) Operating Earnings Reconciling Adjustments
(unaudited)
(in millions)
| Three Months Ended December 31, 2020 | Three Months Ended December 31, 2019 | |||||||||||||||||||||||||||||||||||||
| GAAP (a) | Non-GAAP Adjustments | GAAP (a) | Non-GAAP Adjustments | |||||||||||||||||||||||||||||||||||
| Operating revenues | $ | 4,331 | $ | 128 | (b) | $ | 4,644 | $ | 67 | (b) | ||||||||||||||||||||||||||||
| Operating expenses | ||||||||||||||||||||||||||||||||||||||
| Purchased power and fuel | 2,625 | (99) | (b),(c) | 2,708 | (64) | (b) | ||||||||||||||||||||||||||||||||
| Operating and maintenance | 980 | 131 | (c),(d),(f),(g),(h),(i) | 1,147 | (23) | (c),(d),(e),(l) | ||||||||||||||||||||||||||||||||
| Depreciation and amortization | 961 | (663) | (c) | 314 | (20) | (c) | ||||||||||||||||||||||||||||||||
| Taxes other than income taxes | 118 | — | 125 | — | ||||||||||||||||||||||||||||||||||
| Total operating expenses | 4,684 | 4,294 | ||||||||||||||||||||||||||||||||||||
| Gain on sales of assets and businesses | (1) | 1 | (c) | 12 | (11) | (c) | ||||||||||||||||||||||||||||||||
| Operating income | (354) | 362 | ||||||||||||||||||||||||||||||||||||
| Other income and (deductions) | ||||||||||||||||||||||||||||||||||||||
| Interest expense, net | (80) | (24) | (b) | (93) | (4) | (b) | ||||||||||||||||||||||||||||||||
| Other, net | 738 | (511) | (j) | 293 | (221) | (j) | ||||||||||||||||||||||||||||||||
| Total other income and (deductions) | 658 | 200 | ||||||||||||||||||||||||||||||||||||
| Income (loss) before income taxes | 304 | 562 | ||||||||||||||||||||||||||||||||||||
| Income taxes | 209 | (61) | (b),(c),(d),(f),(g),(h),(i),(j) | 128 | (60) | (b),(c),(d),(e),(j),(l),(m) | ||||||||||||||||||||||||||||||||
| Equity in losses of unconsolidated affiliates | (1) | — | (2) | — | ||||||||||||||||||||||||||||||||||
| Net income (loss) | 94 | 432 | ||||||||||||||||||||||||||||||||||||
| Net income (loss) attributable to noncontrolling interests | 75 | (86) | (k) | 35 | (33) | (k) | ||||||||||||||||||||||||||||||||
| Net income (loss) attributable to membership interest | $ | 19 | $ | 397 | ||||||||||||||||||||||||||||||||||
| Twelve Months Ended December 31, 2020 | Twelve Months Ended December 31, 2019 | |||||||||||||||||||||||||||||||||||||
| GAAP (a) | Non-GAAP Adjustments | GAAP (a) | Non-GAAP Adjustments | |||||||||||||||||||||||||||||||||||
| Operating revenues | $ | 17,603 | $ | (110) | (b) | $ | 18,924 | $ | 3 | (b) | ||||||||||||||||||||||||||||
| Operating expenses | ||||||||||||||||||||||||||||||||||||||
| Purchased power and fuel | 9,585 | 111 | (b),(c) | 10,856 | (224) | (b),(c) | ||||||||||||||||||||||||||||||||
| Operating and maintenance | 5,168 | (640) | (c),(d),(e),(f),(g),(h),(i),(l) | 4,718 | 69 | (c),(d),(e),(h),(l),(n) | ||||||||||||||||||||||||||||||||
| Depreciation and amortization | 2,123 | (939) | (c) | 1,535 | (314) | (c) | ||||||||||||||||||||||||||||||||
| Taxes other than income taxes | 482 | (1) | (c),(d) | 519 | — | |||||||||||||||||||||||||||||||||
| Total operating expenses | 17,358 | 17,628 | ||||||||||||||||||||||||||||||||||||
| Gain on sales of assets and businesses | 11 | (3) | (b),(c) | 27 | (27) | (c) | ||||||||||||||||||||||||||||||||
| Operating income | 256 | 1,323 | ||||||||||||||||||||||||||||||||||||
| Other income and (deductions) | ||||||||||||||||||||||||||||||||||||||
| Interest expense, net | (357) | (14) | (b) | (429) | 17 | (b) | ||||||||||||||||||||||||||||||||
| Other, net | 937 | (534) | (j) | 1,023 | (722) | (b),(c),(j) | ||||||||||||||||||||||||||||||||
| Total other income and (deductions) | 580 | 594 | ||||||||||||||||||||||||||||||||||||
| Income before income taxes | 836 | 1,917 | ||||||||||||||||||||||||||||||||||||
| Income taxes | 249 | 88 | (b),(c),(d),(e),(f),(g),(h),(i),(j),(l),(m) | 516 | (156) | (b),(c),(d),(e),(h),(j),(l),(m),(n) | ||||||||||||||||||||||||||||||||
| Equity in losses of unconsolidated affiliates | (8) | — | (184) | 164 | (l) | |||||||||||||||||||||||||||||||||
| Net income | 579 | 1,217 | ||||||||||||||||||||||||||||||||||||
| Net income attributable to noncontrolling interests | (10) | (101) | (k) | 92 | (91) | (k) | ||||||||||||||||||||||||||||||||
| Net income attributable to membership interest | $ | 589 | $ | 1,125 | ||||||||||||||||||||||||||||||||||
__________
(a)Results reported in accordance with accounting principles generally accepted in the United States (GAAP).
(b)Adjustment to exclude the mark-to-market impact of Exelon’s economic hedging activities, net of intercompany eliminations.
17
(c)In 2020, adjustment to exclude one-time charges and accelerated depreciation and amortization associated with Generation's decisions in the third quarter of 2020 to early retire Byron and Dresden nuclear facilities in 2021 and Mystic Units 8 and 9 in 2024. In 2019, adjustment to exclude accelerated depreciation and amortization expenses associated with the early retirement of the TMI nuclear facility and certain fossil sites and the loss on the sale of Oyster Creek to Holtec, partially offset by net realized gains related to Oyster Creek's NDT fund investments, a net benefit associated with remeasurements of the TMI ARO and a gain on the sale of certain wind assets.
(d)Adjustment to exclude reorganization and severance costs related to cost management programs.
(e)Adjustment to exclude changes in environmental liabilities.
(f)Adjustment to exclude direct costs related to COVID-19 consisting primarily of costs to acquire personal protective equipment, costs for cleaning supplies and services, and costs to hire healthcare professionals to monitor the health of employees.
(g)Adjustment to exclude costs related to the acquisition of Electricite de France SA's (EDF's) interest in CENG.
(h)Adjustment to exclude an adjustment to Generation's nuclear asset retirement obligation for Non-Regulatory Agreement Units resulting from the annual update.
(i)Adjustment to exclude costs related to a multi-year Enterprise Resource Program (ERP) system implementation.
(j)Adjustment to exclude the impact of net unrealized gains on Generation’s NDT fund investments for Non-Regulatory and Regulatory Agreement Units. The impacts of the Regulatory Agreement Units, including the associated income taxes, are contractually eliminated, resulting in no earnings impact.
(k)Adjustment to exclude elimination from Generation’s results of the noncontrolling interests related to certain exclusion items. In 2020, primarily related to unrealized gains and losses on NDT fund investments for CENG units. In 2019, primarily related to the impact of unrealized gains on NDT fund investments and the impact of the Generation's annual nuclear ARO update for CENG units, partially offset by the impairment of certain equity investments in distributed energy companies.
(l)In 2020, adjustment to exclude an impairment of the New England asset group in the third quarter. In 2019, adjustment to exclude the impairment of equity method investments in certain distributed energy companies.
(m)Adjustment to exclude the adjustment to deferred income taxes due to changes in forecasted apportionment.
(n)Adjustment to exclude a gain related to a litigation settlement.
18
Other (a)
GAAP Consolidated Statements of Operations and
Adjusted (non-GAAP) Operating Earnings Reconciling Adjustments
(unaudited)
(in millions)
| Three Months Ended December 31, 2020 | Three Months Ended December 31, 2019 | |||||||||||||||||||||||||||||||||||||
| GAAP (b) | Non-GAAP Adjustments | GAAP (b) | Non-GAAP Adjustments | |||||||||||||||||||||||||||||||||||
| Operating revenues | $ | (292) | $ | — | $ | (358) | $ | — | ||||||||||||||||||||||||||||||
| Operating expenses | ||||||||||||||||||||||||||||||||||||||
| Purchased power and fuel | (277) | — | (330) | — | ||||||||||||||||||||||||||||||||||
| Operating and maintenance | (30) | — | 29 | (3) | (e) | |||||||||||||||||||||||||||||||||
| Depreciation and amortization | 20 | — | 25 | — | ||||||||||||||||||||||||||||||||||
| Taxes other than income taxes | 9 | — | 6 | — | ||||||||||||||||||||||||||||||||||
| Total operating expenses | (278) | (270) | ||||||||||||||||||||||||||||||||||||
| Loss on sales of assets | — | — | (1) | — | ||||||||||||||||||||||||||||||||||
| Operating income | (14) | (89) | ||||||||||||||||||||||||||||||||||||
| Other income and (deductions) | ||||||||||||||||||||||||||||||||||||||
| Interest expense, net | (80) | 2 | (c) | (79) | (1) | (c) | ||||||||||||||||||||||||||||||||
| Other, net | 14 | — | 57 | — | ||||||||||||||||||||||||||||||||||
| Total other income and (deductions) | (66) | (22) | ||||||||||||||||||||||||||||||||||||
| Loss before income taxes | (80) | (111) | ||||||||||||||||||||||||||||||||||||
| Income taxes | (3) | (4) | (c),(d) | (60) | (1) | (c),(e),(f) | ||||||||||||||||||||||||||||||||
| Equity in earnings of unconsolidated affiliates | — | — | 1 | — | ||||||||||||||||||||||||||||||||||
| Net loss | (77) | (50) | ||||||||||||||||||||||||||||||||||||
| Net income attributable to noncontrolling interests | 1 | — | — | — | ||||||||||||||||||||||||||||||||||
| Net loss attributable to common shareholders | $ | (78) | $ | (50) | ||||||||||||||||||||||||||||||||||
| Twelve Months Ended December 31, 2020 | Twelve Months Ended December 31, 2019 | |||||||||||||||||||||||||||||||||||||
| GAAP (b) | Non-GAAP Adjustments | GAAP (b) | Non-GAAP Adjustments | |||||||||||||||||||||||||||||||||||
| Operating revenues | $ | (1,287) | $ | — | $ | (1,245) | $ | — | ||||||||||||||||||||||||||||||
| Operating expenses | ||||||||||||||||||||||||||||||||||||||
| Purchased power and fuel | (1,202) | — | (1,179) | — | ||||||||||||||||||||||||||||||||||
| Operating and maintenance | (143) | 2 | (e) | (111) | 9 | (e) | ||||||||||||||||||||||||||||||||
| Depreciation and amortization | 79 | — | 95 | — | ||||||||||||||||||||||||||||||||||
| Taxes other than income taxes | 43 | — | 37 | — | ||||||||||||||||||||||||||||||||||
| Total operating expenses | (1,223) | (1,158) | ||||||||||||||||||||||||||||||||||||
| Loss on sales of assets | 2 | — | (1) | — | ||||||||||||||||||||||||||||||||||
| Gain on deconsolidation of business | — | — | 1 | — | ||||||||||||||||||||||||||||||||||
| Operating income | (62) | (87) | ||||||||||||||||||||||||||||||||||||
| Other income and (deductions) | ||||||||||||||||||||||||||||||||||||||
| Interest expense, net | (348) | 40 | (c) | (308) | 21 | (c) | ||||||||||||||||||||||||||||||||
| Other, net | 67 | — | 66 | — | ||||||||||||||||||||||||||||||||||
| Total other income and (deductions) | (281) | (242) | ||||||||||||||||||||||||||||||||||||
| Loss before income taxes | (343) | (329) | ||||||||||||||||||||||||||||||||||||
| Income taxes | 13 | (81) | (c),(e),(f) | (87) | (9) | (c),(e),(f) | ||||||||||||||||||||||||||||||||
| Equity in earnings of unconsolidated affiliates | 2 | — | — | — | ||||||||||||||||||||||||||||||||||
| Net loss | (354) | (242) | ||||||||||||||||||||||||||||||||||||
| Net income attributable to noncontrolling interests | 1 | — | — | — | ||||||||||||||||||||||||||||||||||
| Net loss attributable to common shareholders | $ | (355) | $ | (242) | ||||||||||||||||||||||||||||||||||
__________
(a)Other primarily includes eliminating and consolidating adjustments, Exelon’s corporate operations, shared service entities and other financing and investment activities.
19
(b)Results reported in accordance with accounting principles generally accepted in the United States (GAAP).
(c)Adjustment to exclude the mark-to-market impact of Exelon's economic hedging activities, net of intercompany elimination.
(d)Adjustment to exclude income tax-related adjustments.
(e)Adjustment to exclude reorganization and severance costs related to cost management programs.
(f)Adjustment to exclude primarily the adjustment to deferred income taxes due to changes in the forecasted apportionment.
20
ComEd Statistics
Three Months Ended December 31, 2020 and 2019
| Electric Deliveries (in GWhs) | Revenue (in millions) | |||||||||||||||||||||||||||||||||||||||||||
| 2020 | 2019 | % Change | Weather - Normal % Change | 2020 | 2019 | % Change | ||||||||||||||||||||||||||||||||||||||
Rate-Regulated Deliveries and Revenues(a) | ||||||||||||||||||||||||||||||||||||||||||||
| Residential | 6,106 | 6,076 | 0.5 | % | 4.8 | % | $ | 701 | $ | 696 | 0.7 | % | ||||||||||||||||||||||||||||||||
| Small commercial & industrial | 6,840 | 7,417 | (7.8) | % | (7.4) | % | 332 | 360 | (7.8) | % | ||||||||||||||||||||||||||||||||||
| Large commercial & industrial | 6,260 | 6,799 | (7.9) | % | (8.2) | % | 127 | 140 | (9.3) | % | ||||||||||||||||||||||||||||||||||
| Public authorities & electric railroads | 259 | 295 | (12.2) | % | (6.3) | % | 12 | 13 | (7.7) | % | ||||||||||||||||||||||||||||||||||
Other(b) | — | — | n/a | n/a | 221 | 226 | (2.2) | % | ||||||||||||||||||||||||||||||||||||
Total rate-regulated electric revenues(c) | 19,465 | 20,587 | (5.5) | % | (4.1) | % | 1,393 | 1,435 | (2.9) | % | ||||||||||||||||||||||||||||||||||
Other Rate-Regulated Revenue(d) | 11 | (30) | (136.7) | % | ||||||||||||||||||||||||||||||||||||||||
| Total Electric Revenues | $ | 1,404 | $ | 1,405 | (0.1) | % | ||||||||||||||||||||||||||||||||||||||
| Purchased Power | $ | 441 | $ | 474 | (7.0) | % | ||||||||||||||||||||||||||||||||||||||
| % Change | ||||||||||||||||||||||||||||||||
| Heating and Cooling Degree-Days | 2020 | 2019 | Normal | From 2019 | From Normal | |||||||||||||||||||||||||||
| Heating Degree-Days | 1,931 | 2,297 | 2,226 | (15.9) | % | (13.3) | % | |||||||||||||||||||||||||
| Cooling Degree-Days | 9 | 12 | 11 | (25.0) | % | (18.2) | % | |||||||||||||||||||||||||
Twelve Months Ended December 31, 2020 and 2019
| Electric Deliveries (in GWhs) | Revenue (in millions) | |||||||||||||||||||||||||||||||||||||||||||
| 2020 | 2019 | % Change | Weather - Normal % Change | 2020 | 2019 | % Change | ||||||||||||||||||||||||||||||||||||||
Rate-Regulated Deliveries and Revenues(a) | ||||||||||||||||||||||||||||||||||||||||||||
| Residential | 28,034 | 26,813 | 4.6 | % | 0.8% | $ | 3,090 | $ | 2,916 | 6.0 | % | |||||||||||||||||||||||||||||||||
| Small commercial & industrial | 28,642 | 30,934 | (7.4) | % | (7.5)% | 1,399 | 1,463 | (4.4) | % | |||||||||||||||||||||||||||||||||||
| Large commercial & industrial | 25,879 | 27,658 | (6.4) | % | (6.7)% | 515 | 540 | (4.6) | % | |||||||||||||||||||||||||||||||||||
| Public authorities & electric railroads | 1,003 | 1,202 | (16.6) | % | (16.4)% | 45 | 47 | (4.3) | % | |||||||||||||||||||||||||||||||||||
Other(b) | — | — | n/a | n/a | 884 | 888 | (0.5) | % | ||||||||||||||||||||||||||||||||||||
Total rate-regulated electric revenues(c) | 83,558 | 86,607 | (3.5) | % | (4.8)% | 5,933 | 5,854 | 1.3 | % | |||||||||||||||||||||||||||||||||||
Other Rate-Regulated Revenue(d) | (29) | (107) | (72.9) | % | ||||||||||||||||||||||||||||||||||||||||
| Total Electric Revenues | $ | 5,904 | $ | 5,747 | 2.7 | % | ||||||||||||||||||||||||||||||||||||||
| Purchased Power | $ | 1,998 | $ | 1,941 | 2.9 | % | ||||||||||||||||||||||||||||||||||||||
| % Change | ||||||||||||||||||||||||||||||||
| Heating and Cooling Degree-Days | 2020 | 2019 | Normal | From 2019 | From Normal | |||||||||||||||||||||||||||
| Heating Degree-Days | 5,472 | 6,429 | 6,198 | (14.9) | % | (11.7) | % | |||||||||||||||||||||||||
| Cooling Degree-Days | 1,295 | 960 | 893 | 34.9 | % | 45.0 | % | |||||||||||||||||||||||||
| Number of Electric Customers | 2020 | 2019 | ||||||||||||
| Residential | 3,690,974 | 3,669,957 | ||||||||||||
| Small Commercial & Industrial | 387,623 | 385,373 | ||||||||||||
| Large Commercial & Industrial | 1,893 | 1,980 | ||||||||||||
| Public Authorities & Electric Railroads | 4,878 | 4,854 | ||||||||||||
| Total | 4,085,368 | 4,062,164 | ||||||||||||
__________
(a)Reflects delivery volumes and revenues from customers purchasing electricity directly from ComEd and customers purchasing electricity from a competitive electric generation supplier, as all customers are assessed delivery charges. For customers purchasing electricity from ComEd, revenue also reflects the cost of energy and transmission.
(b)Includes revenues from transmission revenue from PJM, wholesale electric revenue and revenue from other utilities for mutual assistance programs.
(c)Includes operating revenues from affiliates totaling $6 million and $17 million for the three months ended December 31, 2020 and 2019, respectively, and $37 million and $30 million for the twelve months ended December 31, 2020 and 2019, respectively.
(d)Includes alternative revenue programs and late payment charges.
21
PECO Statistics
Three Months Ended December 31, 2020 and 2019
| Electric and Natural Gas Deliveries | Revenue (in millions) | |||||||||||||||||||||||||||||||||||||||||||
| 2020 | 2019 | % Change | Weather- Normal % Change | 2020 | 2019 | % Change | ||||||||||||||||||||||||||||||||||||||
| Electric (in GWhs) | ||||||||||||||||||||||||||||||||||||||||||||
Rate-Regulated Electric Deliveries and Revenues(a) | ||||||||||||||||||||||||||||||||||||||||||||
| Residential | 3,167 | 3,082 | 2.8 | % | 9.7 | % | $ | 379 | $ | 365 | 3.8 | % | ||||||||||||||||||||||||||||||||
| Small commercial & industrial | 1,717 | 1,890 | (9.2) | % | (7.7) | % | 95 | 100 | (5.0) | % | ||||||||||||||||||||||||||||||||||
| Large commercial & industrial | 3,276 | 3,509 | (6.6) | % | (7.1) | % | 54 | 56 | (3.6) | % | ||||||||||||||||||||||||||||||||||
| Public authorities & electric railroads | 168 | 165 | 1.8 | % | 1.3 | % | 8 | 6 | 33.3 | % | ||||||||||||||||||||||||||||||||||
Other(b) | — | — | n/a | n/a | 54 | 63 | (14.3) | % | ||||||||||||||||||||||||||||||||||||
Total rate-regulated electric revenues(c) | 8,328 | 8,646 | (3.7) | % | (1.1) | % | 590 | 590 | — | % | ||||||||||||||||||||||||||||||||||
Other Rate-Regulated Revenue(d) | 6 | (2) | (400.0) | % | ||||||||||||||||||||||||||||||||||||||||
| Total Electric Revenue | 596 | 588 | 1.4 | % | ||||||||||||||||||||||||||||||||||||||||
| Natural Gas (in mmcfs) | ||||||||||||||||||||||||||||||||||||||||||||
Rate-Regulated Natural Gas Deliveries and Revenues(e) | ||||||||||||||||||||||||||||||||||||||||||||
| Residential | 12,405 | 13,518 | (8.2) | % | 3.5 | % | 109 | 124 | (12.1) | % | ||||||||||||||||||||||||||||||||||
| Small commercial & industrial | 6,321 | 7,243 | (12.7) | % | (3.6) | % | 40 | 47 | (14.9) | % | ||||||||||||||||||||||||||||||||||
| Large commercial & industrial | 16 | 4 | 300.0 | % | 2.7 | % | — | — | n/a | |||||||||||||||||||||||||||||||||||
| Transportation | 6,980 | 6,735 | 3.6 | % | 8.8 | % | 6 | 7 | (14.3) | % | ||||||||||||||||||||||||||||||||||
Other(f) | — | — | n/a | n/a | — | 1 | (100.0) | % | ||||||||||||||||||||||||||||||||||||
Total rate-regulated natural gas revenues(g) | 25,722 | 27,500 | (6.5) | % | 3.0 | % | 155 | 179 | (13.4) | % | ||||||||||||||||||||||||||||||||||
Other Rate-Regulated Revenue(d) | 1 | — | n/a | |||||||||||||||||||||||||||||||||||||||||
| Total Natural Gas Revenues | 156 | 179 | (12.8) | % | ||||||||||||||||||||||||||||||||||||||||
| Total Electric and Natural Gas Revenues | $ | 752 | $ | 767 | (2.0) | % | ||||||||||||||||||||||||||||||||||||||
| Purchased Power and Fuel | $ | 250 | $ | 260 | (3.8) | % | ||||||||||||||||||||||||||||||||||||||
| % Change | ||||||||||||||||||||||||||||||||
| Heating and Cooling Degree-Days | 2020 | 2019 | Normal | From 2019 | From Normal | |||||||||||||||||||||||||||
| Heating Degree-Days | 1,365 | 1,603 | 1,560 | (14.8) | % | (12.5) | % | |||||||||||||||||||||||||
| Cooling Degree-Days | 17 | 40 | 32 | (57.5) | % | (46.9) | % | |||||||||||||||||||||||||
22
Twelve Months Ended December 31, 2020 and 2019
| Electric and Natural Gas Deliveries | Revenue (in millions) | |||||||||||||||||||||||||||||||||||||||||||
| 2020 | 2019 | % Change | Weather- Normal % Change | 2020 | 2019 | % Change | ||||||||||||||||||||||||||||||||||||||
| Electric (in GWhs) | ||||||||||||||||||||||||||||||||||||||||||||
Rate-Regulated Electric Deliveries and Revenues(a) | ||||||||||||||||||||||||||||||||||||||||||||
| Residential | 14,041 | 13,650 | 2.9 | % | 5.6 | % | $ | 1,656 | $ | 1,596 | 3.8 | % | ||||||||||||||||||||||||||||||||
| Small commercial & industrial | 7,210 | 7,983 | (9.7) | % | (8.2) | % | 386 | 404 | (4.5) | % | ||||||||||||||||||||||||||||||||||
| Large commercial & industrial | 13,669 | 14,958 | (8.6) | % | (8.5) | % | 228 | 219 | 4.1 | % | ||||||||||||||||||||||||||||||||||
| Public authorities & electric railroads | 575 | 725 | (20.7) | % | (20.7) | % | 29 | 29 | — | % | ||||||||||||||||||||||||||||||||||
Other(b) | — | — | n/a | n/a | 225 | 249 | (9.6) | % | ||||||||||||||||||||||||||||||||||||
Total rate-regulated electric revenues(c) | 35,495 | 37,316 | (4.9) | % | (3.5) | % | 2,524 | 2,497 | 1.1 | % | ||||||||||||||||||||||||||||||||||
Other Rate-Regulated Revenue(d) | 19 | (7) | (371.4) | % | ||||||||||||||||||||||||||||||||||||||||
| Total Electric Revenues | 2,543 | 2,490 | 2.1 | % | ||||||||||||||||||||||||||||||||||||||||
| Natural Gas (in mmcfs) | ||||||||||||||||||||||||||||||||||||||||||||
Rate-Regulated Natural Gas Deliveries and Revenues(e) | ||||||||||||||||||||||||||||||||||||||||||||
| Residential | 38,272 | 40,196 | (4.8) | % | 1.6 | % | 361 | 409 | (11.7) | % | ||||||||||||||||||||||||||||||||||
| Small commercial & industrial | 19,341 | 23,828 | (18.8) | % | (6.6) | % | 126 | 169 | (25.4) | % | ||||||||||||||||||||||||||||||||||
| Large commercial & industrial | 36 | 50 | (28.0) | % | (11.9) | % | — | 1 | (100.0) | % | ||||||||||||||||||||||||||||||||||
| Transportation | 24,533 | 25,822 | (5.0) | % | (2.9) | % | 24 | 25 | (4.0) | % | ||||||||||||||||||||||||||||||||||
Other(f) | — | — | n/a | n/a | 4 | 6 | (33.3) | % | ||||||||||||||||||||||||||||||||||||
Total rate-regulated natural gas revenues(g) | 82,182 | 89,896 | (8.6) | % | (1.8) | % | 515 | 610 | (15.6) | % | ||||||||||||||||||||||||||||||||||
Other Rate-Regulated Revenue(d) | — | — | — | % | ||||||||||||||||||||||||||||||||||||||||
| Total Natural Gas Revenues | 515 | 610 | (15.6) | % | ||||||||||||||||||||||||||||||||||||||||
| Total Electric and Natural Gas Revenues | $ | 3,058 | $ | 3,100 | (1.4) | % | ||||||||||||||||||||||||||||||||||||||
| Purchased Power and Fuel | $ | 1,018 | $ | 1,029 | (1.1) | % | ||||||||||||||||||||||||||||||||||||||
| % Change | ||||||||||||||||||||||||||||||||
| Heating and Cooling Degree-Days | 2020 | 2019 | Normal | From 2019 | From Normal | |||||||||||||||||||||||||||
| Heating Degree-Days | 3,959 | 4,307 | 4,437 | (8.1) | % | (10.8) | % | |||||||||||||||||||||||||
| Cooling Degree-Days | 1,521 | 1,610 | 1,423 | (5.5) | % | 6.9 | % | |||||||||||||||||||||||||
| Number of Electric Customers | 2020 | 2019 | Number of Natural Gas Customers | 2020 | 2019 | |||||||||||||||||||||||||||
| Residential | 1,508,622 | 1,494,462 | Residential | 492,298 | 487,337 | |||||||||||||||||||||||||||
| Small Commercial & Industrial | 154,421 | 154,000 | Small Commercial & Industrial | 44,472 | 44,374 | |||||||||||||||||||||||||||
| Large Commercial & Industrial | 3,101 | 3,104 | Large Commercial & Industrial | 5 | 2 | |||||||||||||||||||||||||||
| Public Authorities & Electric Railroads | 10,206 | 10,039 | Transportation | 713 | 730 | |||||||||||||||||||||||||||
| Total | 1,676,350 | 1,661,605 | Total | 537,488 | 532,443 | |||||||||||||||||||||||||||
__________
(a)Reflects delivery volumes and revenues from customers purchasing electricity directly from PECO and customers purchasing electricity from a competitive electric generation supplier as all customers are assessed distribution charges. For customers purchasing electricity from PECO, revenue also reflects the cost of energy and transmission.
(b)Includes revenues from transmission revenue from PJM, wholesale electric revenue and revenue from other utilities for mutual assistance programs.
(c)Includes operating revenues from affiliates totaling $1 million for both the three months ended December 31, 2020 and 2019, respectively, and $8 million and $5 million for the twelve months ended December 31, 2020 and 2019, respectively.
(d)Includes alternative revenue programs and late payment charges.
(e)Reflects delivery volumes and revenues from customers purchasing natural gas directly from PECO and customers purchasing natural gas from a competitive natural gas supplier as all customers are assessed distribution charges. For customers purchasing natural gas from PECO, revenue also reflects the cost of natural gas.
(f)Includes revenues primarily from off-system sales.
(g)Includes operating revenues from affiliates totaling less than $1 million for both the three months ended December 31, 2020 and 2019, and $1 million for both the twelve months ended December 31, 2020 and 2019.
23
BGE Statistics
Three Months Ended December 31, 2020 and 2019
| Electric and Natural Gas Deliveries | Revenue (in millions) | |||||||||||||||||||||||||||||||||||||||||||
| 2020 | 2019 | % Change | Weather- Normal % Change | 2020 | 2019 | % Change | ||||||||||||||||||||||||||||||||||||||
| Electric (in GWhs) | ||||||||||||||||||||||||||||||||||||||||||||
Rate-Regulated Electric Deliveries and Revenues(a) | ||||||||||||||||||||||||||||||||||||||||||||
| Residential | 2,938 | 2,908 | 1.0 | % | 8.2 | % | $ | 312 | $ | 307 | 1.6 | % | ||||||||||||||||||||||||||||||||
| Small commercial & industrial | 629 | 697 | (9.8) | % | (4.9) | % | 58 | 60 | (3.3) | % | ||||||||||||||||||||||||||||||||||
| Large commercial & industrial | 2,976 | 3,213 | (7.4) | % | (5.8) | % | 96 | 101 | (5.0) | % | ||||||||||||||||||||||||||||||||||
| Public authorities & electric railroads | 51 | 65 | (21.5) | % | (20.4) | % | 7 | 7 | — | % | ||||||||||||||||||||||||||||||||||
Other(b) | — | — | n/a | n/a | 75 | 79 | (5.1) | % | ||||||||||||||||||||||||||||||||||||
Total rate-regulated electric revenues(c) | 6,594 | 6,883 | (4.2) | % | 0.1 | % | 548 | 554 | (1.1) | % | ||||||||||||||||||||||||||||||||||
Other Rate-Regulated Revenue(d) | 25 | 3 | 733.3 | % | ||||||||||||||||||||||||||||||||||||||||
| Total Electric Revenues | 573 | 557 | 2.9 | % | ||||||||||||||||||||||||||||||||||||||||
| Natural Gas (in mmcfs) | ||||||||||||||||||||||||||||||||||||||||||||
Rate-Regulated Natural Gas Deliveries and Revenues(e) | ||||||||||||||||||||||||||||||||||||||||||||
| Residential | 12,774 | 13,145 | (2.8) | % | 9.5 | % | 162 | 147 | 10.2 | % | ||||||||||||||||||||||||||||||||||
| Small commercial & industrial | 2,685 | 2,834 | (5.3) | % | 2.8 | % | 24 | 23 | 4.3 | % | ||||||||||||||||||||||||||||||||||
| Large commercial & industrial | 10,732 | 13,529 | (20.7) | % | (16.9) | % | 39 | 38 | 2.6 | % | ||||||||||||||||||||||||||||||||||
Other(f) | 3,670 | 3,300 | 11.2 | % | n/a | 13 | 12 | 8.3 | % | |||||||||||||||||||||||||||||||||||
Total rate-regulated natural gas revenues(g) | 29,861 | 32,808 | (9.0) | % | (3.0) | % | 238 | 220 | 8.2 | % | ||||||||||||||||||||||||||||||||||
Other Rate-Regulated Revenue(d) | 3 | 2 | 50.0 | % | ||||||||||||||||||||||||||||||||||||||||
| Total Natural Gas Revenues | 241 | 222 | 8.6 | % | ||||||||||||||||||||||||||||||||||||||||
| Total Electric and Natural Gas Revenues | $ | 814 | $ | 779 | 4.5 | % | ||||||||||||||||||||||||||||||||||||||
| Purchased Power and Fuel | $ | 260 | $ | 248 | 4.8 | % | ||||||||||||||||||||||||||||||||||||||
| % Change | ||||||||||||||||||||||||||||||||
| Heating and Cooling Degree-Days | 2020 | 2019 | Normal | From 2019 | From Normal | |||||||||||||||||||||||||||
| Heating Degree-Days | 1,398 | 1,570 | 1,663 | (11.0) | % | (15.9) | % | |||||||||||||||||||||||||
| Cooling Degree-Days | 29 | 45 | 29 | (35.6) | % | — | % | |||||||||||||||||||||||||
24
Twelve Months Ended December 31, 2020 and 2019
| Electric and Natural Gas Deliveries | Revenue (in millions) | |||||||||||||||||||||||||||||||||||||||||||
| 2020 | 2019 | % Change | Weather- Normal % Change | 2020 | 2019 | % Change | ||||||||||||||||||||||||||||||||||||||
| Electric (in GWhs) | ||||||||||||||||||||||||||||||||||||||||||||
Rate-Regulated Electric Deliveries and Revenues(a) | ||||||||||||||||||||||||||||||||||||||||||||
| Residential | 12,745 | 12,712 | 0.3 | % | 6.8 | % | $ | 1,345 | $ | 1,326 | 1.4 | % | ||||||||||||||||||||||||||||||||
| Small commercial & industrial | 2,664 | 2,935 | (9.2) | % | (4.8) | % | 241 | 254 | (5.1) | % | ||||||||||||||||||||||||||||||||||
| Large commercial & industrial | 12,633 | 13,780 | (8.3) | % | (6.9) | % | 406 | 436 | (6.9) | % | ||||||||||||||||||||||||||||||||||
| Public authorities & electric railroads | 208 | 257 | (19.1) | % | (19.8) | % | 27 | 27 | — | % | ||||||||||||||||||||||||||||||||||
Other(b) | — | — | n/a | n/a | 309 | 321 | (3.7) | % | ||||||||||||||||||||||||||||||||||||
Total rate-regulated electric revenues(c) | 28,250 | 29,684 | (4.8) | % | (1.0) | % | 2,328 | 2,364 | (1.5) | % | ||||||||||||||||||||||||||||||||||
Other Rate-Regulated Revenue(d) | 8 | 15 | (46.7) | % | ||||||||||||||||||||||||||||||||||||||||
| Total Electric Revenues | 2,336 | 2,379 | (1.8) | % | ||||||||||||||||||||||||||||||||||||||||
| Natural Gas (in mmcfs) | ||||||||||||||||||||||||||||||||||||||||||||
Rate-Regulated Natural Gas Deliveries and Revenues(e) | ||||||||||||||||||||||||||||||||||||||||||||
| Residential | 39,168 | 41,315 | (5.2) | % | 9.0 | % | 504 | 474 | 6.3 | % | ||||||||||||||||||||||||||||||||||
| Small commercial & industrial | 8,925 | 9,252 | (3.5) | % | 8.0 | % | 79 | 77 | 2.6 | % | ||||||||||||||||||||||||||||||||||
| Large commercial & industrial | 38,969 | 46,776 | (16.7) | % | (12.5) | % | 135 | 132 | 2.3 | % | ||||||||||||||||||||||||||||||||||
Other(f) | 8,765 | 7,359 | 19.1 | % | n/a | 29 | 31 | (6.5) | % | |||||||||||||||||||||||||||||||||||
Total rate-regulated natural gas revenues(g) | 95,827 | 104,702 | (8.5) | % | (1.3) | % | 747 | 714 | 4.6 | % | ||||||||||||||||||||||||||||||||||
Other Rate-Regulated Revenue(d) | 15 | 13 | 15.4 | % | ||||||||||||||||||||||||||||||||||||||||
| Total Natural Gas Revenues | 762 | 727 | 4.8 | % | ||||||||||||||||||||||||||||||||||||||||
| Total Electric and Natural Gas Revenues | $ | 3,098 | $ | 3,106 | (0.3) | % | ||||||||||||||||||||||||||||||||||||||
| Purchased Power and Fuel | $ | 991 | $ | 1,052 | (5.8) | % | ||||||||||||||||||||||||||||||||||||||
| % Change | ||||||||||||||||||||||||||||||||
| Heating and Cooling Degree-Days | 2020 | 2019 | Normal | From 2019 | From Normal | |||||||||||||||||||||||||||
| Heating Degree-Days | 3,897 | 4,320 | 4,624 | (9.8) | % | (15.7) | % | |||||||||||||||||||||||||
| Cooling Degree-Days | 1,026 | 1,118 | 889 | (8.2) | % | 15.4 | % | |||||||||||||||||||||||||
| Number of Electric Customers | 2020 | 2019 | Number of Natural Gas Customers | 2020 | 2019 | |||||||||||||||||||||||||||
| Residential | 1,190,678 | 1,177,333 | Residential | 647,188 | 639,426 | |||||||||||||||||||||||||||
| Small commercial & industrial | 114,173 | 114,504 | Small commercial & industrial | 38,267 | 38,345 | |||||||||||||||||||||||||||
| Large commercial & industrial | 12,478 | 12,322 | Large commercial & industrial | 6,101 | 6,037 | |||||||||||||||||||||||||||
| Public authorities & electric railroads | 267 | 268 | Total | 691,556 | 683,808 | |||||||||||||||||||||||||||
| Total | 1,317,596 | 1,304,427 | ||||||||||||||||||||||||||||||
__________
(a)Reflects revenues from customers purchasing electricity directly from BGE and customers purchasing electricity from a competitive electric generation supplier as all customers are assessed distribution charges. For customers purchasing electricity from BGE, revenues also reflect the cost of energy and transmission.
(b)Includes transmission revenue from PJM, wholesale electric revenue, and mutual assistance revenue.
(c)Includes operating revenues from affiliates totaling $1 million and $3 million for the three months ended December 31, 2020 and 2019, respectively, and $10 million and $8 million for the twelve months ended December 31, 2020 and 2019, respectively.
(d)Includes alternative revenue programs and late payment charges.
(e)Reflects delivery volumes and revenues from customers purchasing natural gas directly from BGE and customers purchasing natural gas from a competitive natural gas supplier as all customers are assessed distribution charges. For customers purchasing natural gas from BGE, revenue also reflects the cost of natural gas.
(f)Includes revenues primarily from off-system sales.
(g)Includes operating revenues from affiliates totaling $3 million and $5 million for the three months ended December 31, 2020 and 2019, respectively, and $10 million and $18 million for the twelve months ended December 31, 2020 and 2019, respectively.
25
Pepco Statistics
Three Months Ended December 31, 2020 and 2019
| Electric Deliveries (in GWhs) | Revenue (in millions) | |||||||||||||||||||||||||||||||||||||||||||
| 2020 | 2019 | % Change | Weather - Normal % Change | 2020 | 2019 | % Change | ||||||||||||||||||||||||||||||||||||||
Rate-Regulated Deliveries and Revenues(a) | ||||||||||||||||||||||||||||||||||||||||||||
| Residential | 1,764 | 1,801 | (2.1) | % | 5.4 | % | $ | 209 | $ | 221 | (5.4) | % | ||||||||||||||||||||||||||||||||
| Small commercial & industrial | 265 | 292 | (9.2) | % | (6.3) | % | 31 | 35 | (11.4) | % | ||||||||||||||||||||||||||||||||||
| Large commercial & industrial | 3,115 | 3,505 | (11.1) | % | (9.5) | % | 178 | 200 | (11.0) | % | ||||||||||||||||||||||||||||||||||
| Public authorities & electric railroads | 242 | 149 | 62.4 | % | 62.3 | % | 9 | 7 | 28.6 | % | ||||||||||||||||||||||||||||||||||
Other(b) | — | — | n/a | n/a | 52 | 61 | (14.8) | % | ||||||||||||||||||||||||||||||||||||
Total rate-regulated electric revenues(c) | 5,386 | 5,747 | (6.3) | % | (2.8) | % | 479 | 524 | (8.6) | % | ||||||||||||||||||||||||||||||||||
Other Rate-Regulated Revenue(d) | 20 | (11) | (281.8) | % | ||||||||||||||||||||||||||||||||||||||||
| Total Electric Revenues | $ | 499 | $ | 513 | (2.7) | % | ||||||||||||||||||||||||||||||||||||||
| Purchased Power | $ | 135 | $ | 152 | (11.2) | % | ||||||||||||||||||||||||||||||||||||||
| % Change | ||||||||||||||||||||||||||||||||
| Heating and Cooling Degree-Days | 2020 | 2019 | Normal | From 2019 | From Normal | |||||||||||||||||||||||||||
| Heating Degree-Days | 1,172 | 1,368 | 1,370 | (14.3) | % | (14.5) | % | |||||||||||||||||||||||||
| Cooling Degree-Days | 31 | 68 | 51 | (54.4) | % | (39.2) | % | |||||||||||||||||||||||||
Twelve Months Ended December 31, 2020 and 2019
| Electric Deliveries (in GWhs) | Revenue (in millions) | |||||||||||||||||||||||||||||||||||||||||||
| 2020 | 2019 | % Change | Weather - Normal % Change | 2020 | 2019 | % Change | ||||||||||||||||||||||||||||||||||||||
Rate-Regulated Deliveries and Revenues(a) | ||||||||||||||||||||||||||||||||||||||||||||
| Residential | 8,034 | 8,225 | (2.3) | % | 2.6 | % | $ | 988 | $ | 1,012 | (2.4) | % | ||||||||||||||||||||||||||||||||
| Small commercial & industrial | 1,135 | 1,306 | (13.1) | % | (11.0) | % | 132 | 149 | (11.4) | % | ||||||||||||||||||||||||||||||||||
| Large commercial & industrial | 13,033 | 14,731 | (11.5) | % | (10.0) | % | 736 | 833 | (11.6) | % | ||||||||||||||||||||||||||||||||||
| Public authorities & electric railroads | 743 | 778 | (4.5) | % | (4.2) | % | 34 | 34 | — | % | ||||||||||||||||||||||||||||||||||
Other(b) | — | — | n/a | n/a | 218 | 227 | (4.0) | % | ||||||||||||||||||||||||||||||||||||
Total rate-regulated electric revenues(c) | 22,945 | 25,040 | (8.4) | % | (5.8) | % | 2,108 | 2,255 | (6.5) | % | ||||||||||||||||||||||||||||||||||
Other Rate-Regulated Revenue(d) | 41 | 5 | 720.0 | % | ||||||||||||||||||||||||||||||||||||||||
| Total Electric Revenues | $ | 2,149 | $ | 2,260 | (4.9) | % | ||||||||||||||||||||||||||||||||||||||
| Purchased Power | $ | 602 | $ | 665 | (9.5) | % | ||||||||||||||||||||||||||||||||||||||
| % Change | ||||||||||||||||||||||||||||||||
| Heating and Cooling Degree-Days | 2020 | 2019 | Normal | From 2019 | From Normal | |||||||||||||||||||||||||||
| Heating Degree-Days | 3,312 | 3,603 | 3,822 | (8.1) | % | (13.3) | % | |||||||||||||||||||||||||
| Cooling Degree-Days | 1,696 | 2,001 | 1,705 | (15.2) | % | (0.5) | % | |||||||||||||||||||||||||
| Number of Electric Customers | 2020 | 2019 | ||||||||||||
| Residential | 832,190 | 817,770 | ||||||||||||
| Small Commercial & Industrial | 53,800 | 54,265 | ||||||||||||
| Large Commercial & Industrial | 22,459 | 22,271 | ||||||||||||
| Public Authorities & Electric Railroads | 168 | 160 | ||||||||||||
| Total | 908,617 | 894,466 | ||||||||||||
__________
(a)Reflects revenues from customers purchasing electricity directly from Pepco and customers purchasing electricity from a competitive electric generation supplier as all customers are assessed distribution charges. For customers purchasing electricity from Pepco, revenue also reflects the cost of energy and transmission.
(b)Includes transmission revenue from PJM, wholesale electric revenue, and mutual assistance revenue.
(c)Includes operating revenues from affiliates totaling $2 million and $1 million for the three months ended December 31, 2020 and 2019, respectively, and $7 million and $5 million for the twelve months ended December 31, 2020 and 2019, respectively.
(d)Includes alternative revenue programs and late payment changes.
26
DPL Statistics
Three Months Ended December 31, 2020 and 2019
| Electric and Natural Gas Deliveries | Revenue (in millions) | |||||||||||||||||||||||||||||||||||||||||||
| 2020 | 2019 | % Change | Weather - Normal % Change | 2020 | 2019 | % Change | ||||||||||||||||||||||||||||||||||||||
| Electric (in GWhs) | ||||||||||||||||||||||||||||||||||||||||||||
Rate-Regulated Electric Deliveries and Revenues(a) | ||||||||||||||||||||||||||||||||||||||||||||
| Residential | 1,153 | 1,177 | (2.0) | % | 4.5 | % | $ | 151 | $ | 147 | 2.7 | % | ||||||||||||||||||||||||||||||||
| Small commercial & industrial | 521 | 522 | (0.2) | % | 2.1 | % | 44 | 45 | (2.2) | % | ||||||||||||||||||||||||||||||||||
| Large commercial & industrial | 1,092 | 1,108 | (1.4) | % | (0.2) | % | 23 | 24 | (4.2) | % | ||||||||||||||||||||||||||||||||||
| Public authorities & electric railroads | 11 | 12 | (8.3) | % | (4.7) | % | 3 | 3 | — | % | ||||||||||||||||||||||||||||||||||
Other(b) | — | — | n/a | n/a | 43 | 53 | (18.9) | % | ||||||||||||||||||||||||||||||||||||
Total rate-regulated electric revenues(c) | 2,777 | 2,819 | (1.5) | % | 2.2 | % | 264 | 272 | (2.9) | % | ||||||||||||||||||||||||||||||||||
Other Rate-Regulated Revenue(d) | 8 | (5) | (260.0) | % | ||||||||||||||||||||||||||||||||||||||||
| Total Electric Revenues | 272 | 267 | 1.9 | % | ||||||||||||||||||||||||||||||||||||||||
| Natural Gas (in mmcfs) | ||||||||||||||||||||||||||||||||||||||||||||
Rate-Regulated Natural Gas Deliveries and Revenues(e) | ||||||||||||||||||||||||||||||||||||||||||||
| Residential | 2,576 | 2,862 | (10.0) | % | (0.6) | % | 28 | 32 | (12.5) | % | ||||||||||||||||||||||||||||||||||
| Small commercial & industrial | 1,151 | 1,314 | (12.4) | % | (3.6) | % | 11 | 14 | (21.4) | % | ||||||||||||||||||||||||||||||||||
| Large commercial & industrial | 438 | 439 | (0.2) | % | (0.3) | % | 1 | 1 | — | % | ||||||||||||||||||||||||||||||||||
| Transportation | 1,820 | 1,829 | (0.5) | % | 2.7 | % | 4 | 4 | — | % | ||||||||||||||||||||||||||||||||||
Other(f) | — | — | n/a | n/a | 1 | 1 | — | % | ||||||||||||||||||||||||||||||||||||
| Total rate-regulated natural gas revenues | 5,985 | 6,444 | (7.1) | % | (0.3) | % | 45 | 52 | (13.5) | % | ||||||||||||||||||||||||||||||||||
Other Rate-Regulated Revenue(d) | — | — | n/a | |||||||||||||||||||||||||||||||||||||||||
| Total Natural Gas Revenues | 45 | 52 | (13.5) | % | ||||||||||||||||||||||||||||||||||||||||
| Total Electric and Natural Gas Revenues | $ | 317 | $ | 319 | (0.6) | % | ||||||||||||||||||||||||||||||||||||||
| Purchased Power and Fuel | $ | 123 | $ | 127 | (3.1) | % | ||||||||||||||||||||||||||||||||||||||
| Electric Service Territory | % Change | |||||||||||||||||||||||||||||||
| Heating and Cooling Degree-Days | 2020 | 2019 | Normal | From 2019 | From Normal | |||||||||||||||||||||||||||
| Heating Degree-Days | 1,394 | 1,569 | 1,589 | (11.2) | % | (12.3) | % | |||||||||||||||||||||||||
| Cooling Degree-Days | 16 | 49 | 33 | (67.3) | % | (51.5) | % | |||||||||||||||||||||||||
| Natural Gas Service Territory | % Change | |||||||||||||||||||||||||||||||
| Heating Degree-Days | 2020 | 2019 | Normal | From 2019 | From Normal | |||||||||||||||||||||||||||
| Heating Degree-Days | 1,482 | 1,647 | 1,652 | (10.0) | % | (10.3) | % | |||||||||||||||||||||||||
27
Twelve Months Ended December 31, 2020 and 2019
| Electric and Natural Gas Deliveries | Revenue (in millions) | |||||||||||||||||||||||||||||||||||||||||||
| 2020 | 2019 | % Change | Weather - Normal % Change | 2020 | 2019 | % Change | ||||||||||||||||||||||||||||||||||||||
| Electric (in GWhs) | ||||||||||||||||||||||||||||||||||||||||||||
Rate-Regulated Electric Deliveries and Revenues(a) | ||||||||||||||||||||||||||||||||||||||||||||
| Residential | 5,241 | 5,287 | (0.9) | % | 3.5 | % | $ | 652 | $ | 645 | 1.1 | % | ||||||||||||||||||||||||||||||||
| Small commercial & industrial | 2,103 | 2,257 | (6.8) | % | (5.1) | % | 171 | 186 | (8.1) | % | ||||||||||||||||||||||||||||||||||
| Large commercial & industrial | 4,277 | 4,515 | (5.3) | % | (4.1) | % | 89 | 99 | (10.1) | % | ||||||||||||||||||||||||||||||||||
| Public authorities & electric railroads | 42 | 45 | (6.7) | % | (6.0) | % | 13 | 14 | (7.1) | % | ||||||||||||||||||||||||||||||||||
Other(b) | — | — | n/a | n/a | 190 | 204 | (6.9) | % | ||||||||||||||||||||||||||||||||||||
Total rate-regulated electric revenues(c) | 11,663 | 12,104 | (3.6) | % | (1.0) | % | 1,115 | 1,148 | (2.9) | % | ||||||||||||||||||||||||||||||||||
Other Rate-Regulated Revenue(d) | (6) | (9) | (33.3) | % | ||||||||||||||||||||||||||||||||||||||||
| Total Electric Revenues | 1,109 | 1,139 | (2.6) | % | ||||||||||||||||||||||||||||||||||||||||
| Natural Gas (in mmcfs) | ||||||||||||||||||||||||||||||||||||||||||||
Rate-Regulated Natural Gas Deliveries and Revenues(e) | ||||||||||||||||||||||||||||||||||||||||||||
| Residential | 7,832 | 8,613 | (9.1) | % | (2.5) | % | 96 | 96 | — | % | ||||||||||||||||||||||||||||||||||
| Small commercial & industrial | 3,718 | 4,287 | (13.3) | % | (7.5) | % | 42 | 45 | (6.7) | % | ||||||||||||||||||||||||||||||||||
| Large commercial & industrial | 1,703 | 1,811 | (6.0) | % | (6.0) | % | 4 | 5 | (20.0) | % | ||||||||||||||||||||||||||||||||||
| Transportation | 6,631 | 6,733 | (1.5) | % | 0.2 | % | 14 | 14 | — | % | ||||||||||||||||||||||||||||||||||
Other(f) | — | — | n/a | n/a | 6 | 7 | (14.3) | % | ||||||||||||||||||||||||||||||||||||
| Total rate-regulated natural gas revenues | 19,884 | 21,444 | (7.3) | % | (3.0) | % | 162 | 167 | (3.0) | % | ||||||||||||||||||||||||||||||||||
Other Rate-Regulated Revenue(d) | — | — | n/a | |||||||||||||||||||||||||||||||||||||||||
| Total Natural Gas Revenues | 162 | 167 | (3.0) | % | ||||||||||||||||||||||||||||||||||||||||
| Total Electric and Natural Gas Revenues | $ | 1,271 | $ | 1,306 | (2.7) | % | ||||||||||||||||||||||||||||||||||||||
| Purchased Power and Fuel | $ | 503 | $ | 526 | (4.4) | % | ||||||||||||||||||||||||||||||||||||||
| Electric Service Territory | % Change | |||||||||||||||||||||||||||||||
| Heating and Cooling Degree-Days | 2020 | 2019 | Normal | From 2019 | From Normal | |||||||||||||||||||||||||||
| Heating Degree-Days | 3,945 | 4,284 | 4,511 | (7.9) | % | (12.5) | % | |||||||||||||||||||||||||
| Cooling Degree-Days | 1,348 | 1,513 | 1,255 | (10.9) | % | 7.4 | % | |||||||||||||||||||||||||
| Natural Gas Service Territory | % Change | |||||||||||||||||||||||||||||||
| Heating Degree-Days | 2020 | 2019 | Normal | From 2019 | From Normal | |||||||||||||||||||||||||||
| Heating Degree-Days | 4,146 | 4,475 | 4,675 | (7.4) | % | (11.3) | % | |||||||||||||||||||||||||
| Number of Electric Customers | 2020 | 2019 | Number of Natural Gas Customers | 2020 | 2019 | |||||||||||||||||||||||||||
| Residential | 472,621 | 468,162 | Residential | 127,128 | 125,873 | |||||||||||||||||||||||||||
| Small Commercial & Industrial | 62,461 | 61,721 | Small Commercial & Industrial | 10,017 | 9,999 | |||||||||||||||||||||||||||
| Large Commercial & Industrial | 1,223 | 1,411 | Large Commercial & Industrial | 16 | 17 | |||||||||||||||||||||||||||
| Public Authorities & Electric Railroads | 609 | 613 | Transportation | 161 | 159 | |||||||||||||||||||||||||||
| Total | 536,914 | 531,907 | Total | 137,322 | 136,048 | |||||||||||||||||||||||||||
__________
(a)Reflects delivery volumes and revenues from customers purchasing electricity directly from DPL and customers purchasing electricity from a competitive electric generation supplier as all customers are assessed distribution charges. For customers purchasing electricity from DPL, revenue also reflects the cost of energy and transmission.
(b)Includes transmission revenue from PJM, wholesale electric revenue, and mutual assistance revenue.
(c)Includes operating revenues from affiliates totaling $2 million for both the three months ended December 31, 2020 and 2019, and $9 million and $7 million for the twelve months ended December 31, 2020 and 2019, respectively.
(d)Includes alternative revenue programs and late payment charges.
(e)Reflects delivery volumes and revenues from customers purchasing natural gas directly from DPL and customers purchasing natural gas from a competitive natural gas supplier as all customers are assessed distribution charges. For customers purchasing natural gas from DPL, revenue also reflects the cost of natural gas.
(f)Includes revenues primarily from off-system sales.
28
ACE Statistics
Three Months Ended December 31, 2020 and 2019
| Electric Deliveries (in GWhs) | Revenue (in millions) | |||||||||||||||||||||||||||||||||||||||||||
| 2020 | 2019 | % Change | Weather - Normal % Change | 2020 | 2019 | % Change | ||||||||||||||||||||||||||||||||||||||
Rate-Regulated Deliveries and Revenues(a) | ||||||||||||||||||||||||||||||||||||||||||||
| Residential | 836 | 784 | 6.6 | % | 10.8 | % | $ | 147 | $ | 133 | 10.5 | % | ||||||||||||||||||||||||||||||||
| Small commercial & industrial | 310 | 291 | 6.5 | % | 8.4 | % | 42 | 38 | 10.5 | % | ||||||||||||||||||||||||||||||||||
| Large commercial & industrial | 780 | 828 | (5.8) | % | (4.9) | % | 45 | 46 | (2.2) | % | ||||||||||||||||||||||||||||||||||
| Public authorities & electric railroads | 14 | 13 | 7.7 | % | 5.3 | % | 3 | 3 | — | % | ||||||||||||||||||||||||||||||||||
Other(b) | — | — | n/a | n/a | 48 | 53 | (9.4) | % | ||||||||||||||||||||||||||||||||||||
Total rate-regulated electric revenues(c) | 1,940 | 1,916 | 1.3 | % | 3.6 | % | 285 | 273 | 4.4 | % | ||||||||||||||||||||||||||||||||||
Other Rate-Regulated Revenue(d) | 8 | 1 | 700.0 | % | ||||||||||||||||||||||||||||||||||||||||
| Total Electric Revenues | $ | 293 | $ | 274 | 6.9 | % | ||||||||||||||||||||||||||||||||||||||
| Purchased Power | $ | 140 | $ | 128 | 9.4 | % | ||||||||||||||||||||||||||||||||||||||
| % Change | ||||||||||||||||||||||||||||||||
| Heating and Cooling Degree-Days | 2020 | 2019 | Normal | From 2019 | From Normal | |||||||||||||||||||||||||||
| Heating Degree-Days | 1,411 | 1,569 | 1,597 | (10.1) | % | (11.6) | % | |||||||||||||||||||||||||
| Cooling Degree-Days | 14 | 44 | 31 | (68.2) | % | (54.8) | % | |||||||||||||||||||||||||
Twelve Months Ended December 31, 2020 and 2019
| Electric Deliveries (in GWhs) | Revenue (in millions) | |||||||||||||||||||||||||||||||||||||||||||
| 2020 | 2019 | % Change | Weather - Normal % Change | 2020 | 2019 | % Change | ||||||||||||||||||||||||||||||||||||||
Rate-Regulated Deliveries and Revenues(a) | ||||||||||||||||||||||||||||||||||||||||||||
| Residential | 4,029 | 3,966 | 1.6 | % | 4.7 | % | $ | 692 | $ | 659 | 5.0 | % | ||||||||||||||||||||||||||||||||
| Small commercial & industrial | 1,277 | 1,346 | (5.1) | % | (4.0) | % | 169 | 170 | (0.6) | % | ||||||||||||||||||||||||||||||||||
| Large commercial & industrial | 3,067 | 3,429 | (10.6) | % | (10.0) | % | 176 | 180 | (2.2) | % | ||||||||||||||||||||||||||||||||||
| Public authorities & electric railroads | 47 | 47 | — | % | (0.2) | % | 13 | 13 | — | % | ||||||||||||||||||||||||||||||||||
Other(b) | — | — | n/a | n/a | 207 | 218 | (5.0) | % | ||||||||||||||||||||||||||||||||||||
Total rate-regulated electric revenues(c) | 8,420 | 8,788 | (4.2) | % | (2.5) | % | 1,257 | 1,240 | 1.4 | % | ||||||||||||||||||||||||||||||||||
Other Rate-Regulated Revenue(d) | (12) | — | n/a | |||||||||||||||||||||||||||||||||||||||||
| Total Electric Revenues | $ | 1,245 | $ | 1,240 | 0.4 | % | ||||||||||||||||||||||||||||||||||||||
| Purchased Power | $ | 609 | $ | 608 | 0.2 | % | ||||||||||||||||||||||||||||||||||||||
| % Change | ||||||||||||||||||||||||||||||||
| Heating and Cooling Degree-Days | 2020 | 2019 | Normal | From 2019 | From Normal | |||||||||||||||||||||||||||
| Heating Degree-Days | 4,029 | 4,467 | 4,667 | (9.8) | % | (13.7) | % | |||||||||||||||||||||||||
| Cooling Degree-Days | 1,314 | 1,374 | 1,174 | (4.4) | % | 11.9 | % | |||||||||||||||||||||||||
| Number of Electric Customers | 2020 | 2019 | ||||||||||||
| Residential | 497,672 | 494,596 | ||||||||||||
| Small Commercial & Industrial | 61,622 | 61,497 | ||||||||||||
| Large Commercial & Industrial | 3,282 | 3,392 | ||||||||||||
| Public Authorities & Electric Railroads | 701 | 679 | ||||||||||||
| Total | 563,277 | 560,164 | ||||||||||||
__________
(a)Reflects delivery volumes and revenues from customers purchasing electricity directly from ACE and customers purchasing electricity from a competitive electric generation supplier as all customers are assessed distribution charges. For customers purchasing electricity from ACE, revenue also reflects the cost of energy and transmission.
(b)Includes transmission revenue from PJM, wholesale electric revenues, and mutual assistance revenue.
(c)Includes operating revenues from affiliates totaling $1 million and less than $1 million for the three months ended December 31, 2020 and 2019, respectively, and $4 million and $3 million for the twelve months ended December 31, 2020 and 2019, respectively.
(d)Includes alternative revenue programs.
29
Generation Statistics
| Three Months Ended | Twelve Months Ended | |||||||||||||||||||||||||
| December 31, 2020 | December 31, 2019 | December 31, 2020 | December 31, 2019 | |||||||||||||||||||||||
| Supply (in GWhs) | ||||||||||||||||||||||||||
Nuclear Generation(a) | ||||||||||||||||||||||||||
| Mid-Atlantic | 12,572 | 13,911 | 52,202 | 58,347 | ||||||||||||||||||||||
| Midwest | 24,393 | 23,431 | 96,322 | 94,890 | ||||||||||||||||||||||
| New York | 7,265 | 7,305 | 26,561 | 28,088 | ||||||||||||||||||||||
Total Nuclear Generation | 44,230 | 44,647 | 175,085 | 181,325 | ||||||||||||||||||||||
| Fossil and Renewables | ||||||||||||||||||||||||||
| Mid-Atlantic | 342 | 533 | 2,206 | 2,884 | ||||||||||||||||||||||
| Midwest | 388 | 394 | 1,240 | 1,374 | ||||||||||||||||||||||
| New York | 1 | 1 | 4 | 5 | ||||||||||||||||||||||
| ERCOT | 1,324 | 2,928 | 11,982 | 13,572 | ||||||||||||||||||||||
Other Power Regions(b) | 2,218 | 2,687 | 11,121 | 11,476 | ||||||||||||||||||||||
Total Fossil and Renewables | 4,273 | 6,543 | 26,553 | 29,311 | ||||||||||||||||||||||
| Purchased Power | ||||||||||||||||||||||||||
| Mid-Atlantic | 4,563 | 4,431 | 22,487 | 14,790 | ||||||||||||||||||||||
| Midwest | 175 | 762 | 770 | 1,424 | ||||||||||||||||||||||
| ERCOT | 2,285 | 1,236 | 5,636 | 4,821 | ||||||||||||||||||||||
Other Power Regions(b) | 13,097 | 11,980 | 51,079 | 48,673 | ||||||||||||||||||||||
Total Purchased Power | 20,120 | 18,409 | 79,972 | 69,708 | ||||||||||||||||||||||
| Total Supply/Sales by Region | ||||||||||||||||||||||||||
Mid-Atlantic(c) | 17,477 | 18,875 | 76,895 | 76,021 | ||||||||||||||||||||||
Midwest(c) | 24,956 | 24,587 | 98,332 | 97,688 | ||||||||||||||||||||||
| New York | 7,266 | 7,306 | 26,565 | 28,093 | ||||||||||||||||||||||
| ERCOT | 3,609 | 4,164 | 17,618 | 18,393 | ||||||||||||||||||||||
Other Power Regions(b) | 15,315 | 14,667 | 62,200 | 60,149 | ||||||||||||||||||||||
| Total Supply/Sales by Region | 68,623 | 69,599 | 281,610 | 280,344 | ||||||||||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||||||||||||
| December 31, 2020 | December 31, 2019 | December 31, 2020 | December 31, 2019 | |||||||||||||||||||||||
Outage Days(d) | ||||||||||||||||||||||||||
| Refueling | 57 | 64 | 260 | 209 | ||||||||||||||||||||||
| Non-refueling | 4 | 8 | 19 | 51 | ||||||||||||||||||||||
| Total Outage Days | 61 | 72 | 279 | 260 | ||||||||||||||||||||||
__________
(a)Includes the proportionate share of output where Generation has an undivided ownership interest in jointly-owned generating plants and includes the total output of plants that are fully consolidated (e.g. CENG).
(b)Other Power Regions includes New England, South, West, and Canada.
(c)Includes affiliate sales to PECO, BGE, Pepco, DPL, and ACE in the Mid-Atlantic region and affiliate sales to ComEd in the Midwest region.
(d)Outage days exclude Salem.
30
