0001628280-18-005662.txt : 20180502 0001628280-18-005662.hdr.sgml : 20180502 20180502132152 ACCESSION NUMBER: 0001628280-18-005662 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 173 CONFORMED PERIOD OF REPORT: 20180331 FILED AS OF DATE: 20180502 DATE AS OF CHANGE: 20180502 FILER: COMPANY DATA: COMPANY CONFORMED NAME: EXELON CORP CENTRAL INDEX KEY: 0001109357 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC & OTHER SERVICES COMBINED [4931] IRS NUMBER: 232990190 STATE OF INCORPORATION: PA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-16169 FILM NUMBER: 18798745 BUSINESS ADDRESS: STREET 1: PO BOX 805398 CITY: CHICAGO STATE: IL ZIP: 60680-5398 BUSINESS PHONE: 3123947399 MAIL ADDRESS: STREET 1: PO BOX 805398 CITY: CHICAGO STATE: IL ZIP: 60680-5398 FILER: COMPANY DATA: COMPANY CONFORMED NAME: EXELON GENERATION CO LLC CENTRAL INDEX KEY: 0001168165 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC SERVICES [4911] IRS NUMBER: 233064219 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 333-85496 FILM NUMBER: 18798752 MAIL ADDRESS: STREET 1: 10 S DEARBORN STREET STREET 2: 37TH FLOOR CITY: CHICAGO STATE: IL ZIP: 60690 FILER: COMPANY DATA: COMPANY CONFORMED NAME: DELMARVA POWER & LIGHT CO /DE/ CENTRAL INDEX KEY: 0000027879 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC & OTHER SERVICES COMBINED [4931] IRS NUMBER: 510084283 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-01405 FILM NUMBER: 18798747 BUSINESS ADDRESS: STREET 1: 800 KING ST STREET 2: PO BOX 231 CITY: WILMINGTON STATE: DE ZIP: 19899 BUSINESS PHONE: 3024293114 MAIL ADDRESS: STREET 1: 800 KING ST STREET 2: P O BOX 231 CITY: WILMINGTON STATE: DE ZIP: 19899 FILER: COMPANY DATA: COMPANY CONFORMED NAME: PEPCO HOLDINGS LLC CENTRAL INDEX KEY: 0001135971 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC & OTHER SERVICES COMBINED [4931] IRS NUMBER: 522297449 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-31403 FILM NUMBER: 18798749 BUSINESS ADDRESS: STREET 1: SUITE 1300 STREET 2: 701 NINTH STREET, NW CITY: WASHINGTON STATE: DC ZIP: 20068 BUSINESS PHONE: 202-872-2000 MAIL ADDRESS: STREET 1: SUITE 1300 STREET 2: 701 NINTH STREET, NW CITY: WASHINGTON STATE: DC ZIP: 20068 FORMER COMPANY: FORMER CONFORMED NAME: PEPCO HOLDINGS INC DATE OF NAME CHANGE: 20020212 FORMER COMPANY: FORMER CONFORMED NAME: NEW RC INC DATE OF NAME CHANGE: 20010302 FILER: COMPANY DATA: COMPANY CONFORMED NAME: COMMONWEALTH EDISON CO CENTRAL INDEX KEY: 0000022606 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC SERVICES [4911] IRS NUMBER: 360938600 STATE OF INCORPORATION: IL FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-01839 FILM NUMBER: 18798751 BUSINESS ADDRESS: STREET 1: ONE FIRST NATIONAL PLZ 37TH FL STREET 2: P O BOX 767 CITY: CHICAGO STATE: IL ZIP: 60690 BUSINESS PHONE: 3123944321 MAIL ADDRESS: STREET 1: 10 SOUTH DEARBORN STREET STREET 2: 37TH FLOOR CITY: CHICAGO STATE: IL ZIP: 606900767 FILER: COMPANY DATA: COMPANY CONFORMED NAME: BALTIMORE GAS & ELECTRIC CO CENTRAL INDEX KEY: 0000009466 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC & OTHER SERVICES COMBINED [4931] IRS NUMBER: 520280210 STATE OF INCORPORATION: MD FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-01910 FILM NUMBER: 18798744 BUSINESS ADDRESS: STREET 1: 2 CENTER PLAZA STREET 2: 110 W. FAYETTE STREET CITY: BALTIMORE STATE: MD ZIP: 21201 BUSINESS PHONE: 4104702800 MAIL ADDRESS: STREET 1: 2 CENTER PLAZA STREET 2: 110 W. FAYETTE STREET CITY: BALTIMORE STATE: MD ZIP: 21201 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ATLANTIC CITY ELECTRIC CO CENTRAL INDEX KEY: 0000008192 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC SERVICES [4911] IRS NUMBER: 210398280 STATE OF INCORPORATION: NJ FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-03559 FILM NUMBER: 18798746 BUSINESS ADDRESS: STREET 1: 800 KING STREET STREET 2: PO BOX 231 CITY: WILMINGTON STATE: DE ZIP: 19899 BUSINESS PHONE: 6096454100 MAIL ADDRESS: STREET 1: 800 KING STREET STREET 2: PO BOX 231 CITY: WILMINGTON STATE: DE ZIP: 19899 FILER: COMPANY DATA: COMPANY CONFORMED NAME: PECO ENERGY CO CENTRAL INDEX KEY: 0000078100 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC & OTHER SERVICES COMBINED [4931] IRS NUMBER: 230970240 STATE OF INCORPORATION: PA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-16844 FILM NUMBER: 18798750 BUSINESS ADDRESS: STREET 1: 2301 MARKET ST STREET 2: P O BOX 8699 CITY: PHILADELPHIA STATE: PA ZIP: 19101 BUSINESS PHONE: 2158414000 FORMER COMPANY: FORMER CONFORMED NAME: PHILADELPHIA ELECTRIC CO DATE OF NAME CHANGE: 19920703 FILER: COMPANY DATA: COMPANY CONFORMED NAME: POTOMAC ELECTRIC POWER CO CENTRAL INDEX KEY: 0000079732 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC SERVICES [4911] IRS NUMBER: 530127880 STATE OF INCORPORATION: VA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-01072 FILM NUMBER: 18798748 BUSINESS ADDRESS: STREET 1: 701 NINTH STREET, NW STREET 2: OFFICE OF CORPORATE SECY., ROOM 1300 CITY: WASHINGTON STATE: DC ZIP: 20068 BUSINESS PHONE: 2028722000 MAIL ADDRESS: STREET 1: 701 NINTH STREET, NW STREET 2: OFFICE OF CORPORATE SECY., ROOM 1300 CITY: WASHINGTON STATE: DC ZIP: 20068 10-Q 1 exc-2018331x10q.htm FORM 10-Q Document

UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
x
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the Quarterly Period Ended March 31, 2018
or
o
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Commission
File Number
 
Name of Registrant; State or Other Jurisdiction of Incorporation; Address of Principal Executive Offices; and Telephone Number
 
IRS Employer Identification Number
 
 
 
 
 
1-16169
 
EXELON CORPORATION
 
23-2990190
 
 
(a Pennsylvania corporation)
10 South Dearborn Street
P.O. Box 805379
Chicago, Illinois 60680-5379
(800) 483-3220
 
 
 
 
 
 
 
333-85496
 
EXELON GENERATION COMPANY, LLC
 
23-3064219
 
 
(a Pennsylvania limited liability company)
300 Exelon Way
Kennett Square, Pennsylvania 19348-2473
(610) 765-5959
 
 
 
 
 
 
 
1-1839
 
COMMONWEALTH EDISON COMPANY
 
36-0938600
 
 
(an Illinois corporation)
440 South LaSalle Street
Chicago, Illinois 60605-1028
(312) 394-4321
 
 
 
 
 
 
 
000-16844
 
PECO ENERGY COMPANY
 
23-0970240
 
 
(a Pennsylvania corporation)
P.O. Box 8699
2301 Market Street
Philadelphia, Pennsylvania 19101-8699
(215) 841-4000
 
 
 
 
 
 
 
1-1910
 
BALTIMORE GAS AND ELECTRIC COMPANY
 
52-0280210
 
 
(a Maryland corporation)
2 Center Plaza
110 West Fayette Street
Baltimore, Maryland 21201-3708
(410) 234-5000
 
 
 
 
 
 
 
001-31403
 
PEPCO HOLDINGS LLC
 
52-2297449
 
 
(a Delaware limited liability company)
701 Ninth Street, N.W.
Washington, District of Columbia 20068
(202) 872-2000

 
 
 
 
 
 
 
001-01072
 
POTOMAC ELECTRIC POWER COMPANY
 
53-0127880
 
 
(a District of Columbia and Virginia corporation)
701 Ninth Street, N.W.
Washington, District of Columbia 20068
(202) 872-2000

 
 
 
 
 
 
 
001-01405
 
DELMARVA POWER & LIGHT COMPANY
 
51-0084283
 
 
(a Delaware and Virginia corporation)
500 North Wakefield Drive
Newark, Delaware 19702
(202) 872-2000

 
 
 
 
 
 
 
001-03559
 
ATLANTIC CITY ELECTRIC COMPANY
 
21-0398280
 
 
(a New Jersey corporation)
500 North Wakefield Drive
Newark, Delaware 19702
(202) 872-2000

 
 




Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes  x  No  o
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).  Yes  x  No  o
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

 
Large Accelerated Filer
 
Accelerated Filer
 
Non-accelerated Filer
 
Smaller Reporting Company
 
Emerging Growth Company
Exelon Corporation
x




 
 
 
 
Exelon Generation Company, LLC




x
 
 
 
 
Commonwealth Edison Company




x
 
 
 
 
PECO Energy Company




x
 
 
 
 
Baltimore Gas and Electric Company




x
 
 
 
 
Pepco Holdings LLC
 
 
 
 
x
 
 
 
 
Potomac Electric Power Company
 
 
 
 
x
 
 
 
 
Delmarva Power & Light Company
 
 
 
 
x
 
 
 
 
Atlantic City Electric Company
 
 
 
 
x
 
 
 
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).  Yes  o  No  x
The number of shares outstanding of each registrant’s common stock as of March 31, 2018 was:
Exelon Corporation Common Stock, without par value
965,381,919
Exelon Generation Company, LLC
not applicable
Commonwealth Edison Company Common Stock, $12.50 par value
127,021,264
PECO Energy Company Common Stock, without par value
170,478,507
Baltimore Gas and Electric Company Common Stock, without par value
1,000
Pepco Holdings LLC
not applicable
Potomac Electric Power Company Common Stock, $0.01 par value
100
Delmarva Power & Light Company Common Stock, $2.25 par value
1,000
Atlantic City Electric Company Common Stock, $3.00 par value
8,546,017





TABLE OF CONTENTS

 
Page No.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

1


 
Page No.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

2


 
Page No.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


3


GLOSSARY OF TERMS AND ABBREVIATIONS
Exelon Corporation and Related Entities
Exelon
 
Exelon Corporation
Generation
 
Exelon Generation Company, LLC
ComEd
 
Commonwealth Edison Company
PECO
 
PECO Energy Company
BGE
 
Baltimore Gas and Electric Company
Pepco Holdings or PHI
  
Pepco Holdings LLC (formerly Pepco Holdings, Inc.)
Pepco
  
Potomac Electric Power Company
DPL
  
Delmarva Power & Light Company
ACE
  
Atlantic City Electric Company
Registrants
 
Exelon, Generation, ComEd, PECO, BGE, PHI, Pepco, DPL and ACE, collectively
Utility Registrants
 
ComEd, PECO, BGE, Pepco, DPL and ACE, collectively
Legacy PHI
 
PHI, Pepco, DPL and ACE, collectively
ACE Funding or ATF
  
Atlantic City Electric Transition Funding LLC
Antelope Valley
 
Antelope Valley Solar Ranch One
BondCo
 
RSB BondCo LLC
BSC
 
Exelon Business Services Company, LLC
CENG
 
Constellation Energy Nuclear Group, LLC
ConEdison Solutions
 
The competitive retail electricity and natural gas business of Consolidated Edison Solutions, Inc., a subsidiary of Consolidated Edison, Inc.
Constellation
 
Constellation Energy Group, Inc.
EEDC
 
Exelon Energy Delievery Company, LLC
EGR IV
 
ExGen Renewables IV, LLC
EGTP
 
ExGen Texas Power, LLC
Entergy
 
Entergy Nuclear FitzPatrick, LLC
Exelon Corporate
 
Exelon in its corporate capacity as a holding company
Exelon Transmission Company
 
Exelon Transmission Company, LLC
Exelon Wind
 
Exelon Wind, LLC and Exelon Generation Acquisition Company, LLC
FitzPatrick
 
James A. FitzPatrick nuclear generating station
PCI
 
Potomac Capital Investment Corporation and its subsidiaries
PEC L.P.
 
PECO Energy Capital, L.P.
PECO Trust III
 
PECO Capital Trust III
PECO Trust IV
 
PECO Energy Capital Trust IV
Pepco Energy Services or PES
 
Pepco Energy Services, Inc. and its subsidiaries
PHI Corporate
 
PHI in its corporate capacity as a holding company
PHISCO
 
PHI Service Company
RPG
 
Renewable Power Generation
SolGen
 
SolGen, LLC

4


GLOSSARY OF TERMS AND ABBREVIATIONS
Other Terms and Abbreviations
 
 
TMI
 
Three Mile Island nuclear facility
UII
 
Unicom Investments, Inc.
Note “—” of the Exelon 2017 Form 10-K
 
Reference to specific Combined Note to Consolidated Financial Statements within Exelon’s 2017 Annual Report on Form 10-K
AEC
 
Alternative Energy Credit that is issued for each megawatt hour of generation from a qualified alternative energy source
AESO
 
Alberta Electric Systems Operator
AFUDC
 
Allowance for Funds Used During Construction
AGE
 
Albany Green Energy Project
AMI
 
Advanced Metering Infrastructure
AMP
 
Advanced Metering Program
AOCI
 
Accumulated Other Comprehensive Income
ARC
 
Asset Retirement Cost
ARO
 
Asset Retirement Obligation
ARP
 
Alternative Revenue Program
CAISO
 
California ISO
CAP
 
Customer Assistance Program
CCGTs
 
Combined-Cycle Gas Turbines
CERCLA
 
Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended
CES
 
Clean Energy Standard
Clean Air Act
 
Clean Air Act of 1963, as amended
Clean Water Act
 
Federal Water Pollution Control Amendments of 1972, as amended
Conectiv
  
Conectiv, LLC, a wholly owned subsidiary of PHI and the parent of DPL and ACE
Conectiv Energy
  
Conectiv Energy Holdings, Inc. and substantially all of its subsidiaries, which were sold to Calpine in July 2010
CSAPR
 
Cross-State Air Pollution Rule
D.C. Circuit Court
 
United States Court of Appeals for the District of Columbia Circuit
DC PLUG
 
District of Columbia Power Line Undergrounding Initiative
DCPSC
  
District of Columbia Public Service Commission
Default Electricity Supply
  
The supply of electricity by PHI’s electric utility subsidiaries at regulated rates to retail customers who do not elect to purchase electricity from a competitive supplier, and which, depending on the jurisdiction, is also known as Standard Offer Service or BGS
DOE
 
United States Department of Energy
DOJ
 
United States Department of Justice
DPSC
  
Delaware Public Service Commission
DRP
  
Direct Stock Purchase and Dividend Reinvestment Plan

5


GLOSSARY OF TERMS AND ABBREVIATIONS
Other Terms and Abbreviations
 
 
DSP
 
Default Service Provider
EDF
 
Electricite de France SA and its subsidiaries
EE&C
 
Energy Efficiency and Conservation/Demand Response
EIMA
 
Energy Infrastructure Modernization Act (Illinois Senate Bill 1652 and Illinois House Bill 3036)
EmPower
  
A Maryland demand-side management program for Pepco and DPL
EPA
 
United States Environmental Protection Agency
EPSA
 
Electric Power Supply Association
ERCOT
 
Electric Reliability Council of Texas
ERISA
 
Employee Retirement Income Security Act of 1974, as amended
EROA
 
Expected Rate of Return on Assets
ESPP
 
Employee Stock Purchase Plan
FASB
 
Financial Accounting Standards Board
FEJA
 
Illinois Public Act 99-0906 or Future Energy Jobs Act
FERC
 
Federal Energy Regulatory Commission
FRCC
 
Florida Reliability Coordinating Council
GAAP
 
Generally Accepted Accounting Principles in the United States
GCR
  
Gas Cost Rate
GHG
 
Greenhouse Gas
GSA
 
Generation Supply Adjustment
GWh
 
Gigawatt hour
IBEW
 
International Brotherhood of Electrical Workers
ICC
 
Illinois Commerce Commission
ICE
 
Intercontinental Exchange
Illinois EPA
 
Illinois Environmental Protection Agency
Illinois Settlement Legislation
 
Legislation enacted in 2007 affecting electric utilities in Illinois
Integrys
 
Integrys Energy Services, Inc.
IPA
 
Illinois Power Agency
IRC
 
Internal Revenue Code
IRS
 
Internal Revenue Service
ISO
 
Independent System Operator
ISO-NE
 
Independent System Operator New England Inc.
ISO-NY
 
Independent System Operator New York
kV
 
Kilovolt
kW
 
Kilowatt
kWh
 
Kilowatt-hour
LIBOR
 
London Interbank Offered Rate
LLRW
 
Low-Level Radioactive Waste

6


GLOSSARY OF TERMS AND ABBREVIATIONS
Other Terms and Abbreviations
 
 
LT Plan
 
Long-term renewable resources procurement plan
LTIP
 
Long-Term Incentive Plan
MAPP
  
Mid-Atlantic Power Pathway
MATS
 
U.S. EPA Mercury and Air Toxics Rule
MBR
 
Market Based Rates Incentive
MDE
 
Maryland Department of the Environment
MDPSC
 
Maryland Public Service Commission
MGP
 
Manufactured Gas Plant
MISO
 
Midcontinent Independent System Operator, Inc.
mmcf
 
Million Cubic Feet
Moody’s
 
Moody’s Investor Service
MOPR
 
Minimum Offer Price Rule
MRV
 
Market-Related Value
MW
 
Megawatt
MWh
 
Megawatt hour
n.m.
 
not meaningful
NAAQS
 
National Ambient Air Quality Standards
NAV
 
Net Asset Value
NDT
 
Nuclear Decommissioning Trust
NEIL
 
Nuclear Electric Insurance Limited
NERC
 
North American Electric Reliability Corporation
NGS
 
Natural Gas Supplier
NJBPU
  
New Jersey Board of Public Utilities
NJDEP
 
New Jersey Department of Environmental Protection
Non-Regulatory Agreements Units
 
Nuclear generating units or portions thereof whose decommissioning-related activities are not subject to contractual elimination under regulatory accounting
NOSA
 
Nuclear Operating Services Agreement
NPDES
 
National Pollutant Discharge Elimination System
NRC
 
Nuclear Regulatory Commission
NSPS
 
New Source Performance Standards
NUGs
  
Non-utility generators
NWPA
 
Nuclear Waste Policy Act of 1982
NYMEX
 
New York Mercantile Exchange
NYPSC
 
New York Public Service Commission
OCI
 
Other Comprehensive Income
OIESO
 
Ontario Independent Electricity System Operator
OPC
  
Office of People’s Counsel
OPEB
 
Other Postretirement Employee Benefits
PA DEP
 
Pennsylvania Department of Environmental Protection

7


GLOSSARY OF TERMS AND ABBREVIATIONS
Other Terms and Abbreviations
 
 
PAPUC
 
Pennsylvania Public Utility Commission
PGC
 
Purchased Gas Cost Clause
PJM
 
PJM Interconnection, LLC
POLR
 
Provider of Last Resort
POR
 
Purchase of Receivables
PPA
 
Power Purchase Agreement
Price-Anderson Act
 
Price-Anderson Nuclear Industries Indemnity Act of 1957
Preferred Stock
  
Originally issued shares of non-voting, non-convertible and non-transferable Series A preferred stock, par value $0.01 per share
PRP
 
Potentially Responsible Parties
PSEG
 
Public Service Enterprise Group Incorporated
PV
 
Photovoltaic
RCRA
 
Resource Conservation and Recovery Act of 1976, as amended
REC
 
Renewable Energy Credit which is issued for each megawatt hour of generation from a qualified renewable energy source
Regulatory Agreement Units
 
Nuclear generating units or portions thereof whose decommissioning-related activities are subject to contractual elimination under regulatory accounting
RES
 
Retail Electric Suppliers
RFP
 
Request for Proposal
Rider
 
Reconcilable Surcharge Recovery Mechanism
RGGI
 
Regional Greenhouse Gas Initiative
RMC
 
Risk Management Committee
ROE
  
Return on equity
RPM
 
PJM Reliability Pricing Model
RPS
 
Renewable Energy Portfolio Standards
RSSA
 
Reliability Support Services Agreement
RTEP
 
Regional Transmission Expansion Plan
RTO
 
Regional Transmission Organization
S&P
 
Standard & Poor’s Ratings Services
SEC
 
United States Securities and Exchange Commission
Senate Bill 1
 
Maryland Senate Bill 1
SERC
 
SERC Reliability Corporation (formerly Southeast Electric Reliability Council)
SGIG
 
Smart Grid Investment Grant from DOE
SILO
 
Sale-In, Lease-Out
SNF
 
Spent Nuclear Fuel
SOS
 
Standard Offer Service
SPFPA
 
Security, Police and Fire Professionals of America

8


GLOSSARY OF TERMS AND ABBREVIATIONS
Other Terms and Abbreviations
 
 
SPP
 
Southwest Power Pool
TCJA
 
Tax Cuts and Jobs Act
Transition Bond Charge
  
Revenue ACE receives, and pays to ACE Funding, to fund the principal and interest payments on Transition Bonds and related taxes, expenses and fees
Transition Bonds
  
Transition Bonds issued by ACE Funding
Upstream
 
Natural gas exploration and production activities
VIE
 
Variable Interest Entity
WECC
 
Western Electric Coordinating Council
ZEC
 
Zero Emission Credit
ZES
 
Zero Emission Standard

9


FILING FORMAT
This combined Form 10-Q is being filed separately 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). Information contained herein relating to any individual Registrant is filed by such Registrant on its own behalf. No Registrant makes any representation as to information relating to any other Registrant.
CAUTIONARY STATEMENTS REGARDING FORWARD-LOOKING INFORMATION
This Report contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, that are subject to risks and uncertainties. The factors that could cause actual results to differ materially from the forward-looking statements made by the Registrants include those factors discussed herein, as well as the items discussed in (1) the Registrants' combined 2017 Annual Report on Form 10-K in (a) ITEM 1A. Risk Factors, (b) ITEM 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations and (c) ITEM 8. Financial Statements and Supplementary Data: Note 23, Commitments and Contingencies; (2) this Quarterly Report on Form 10-Q in (a) Part II, Other Information, ITEM 1A. Risk Factors; (b) Part 1, Financial Information, ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations and (c) Part I, Financial Information, ITEM 1. Financial Statements: Note 17, Commitments and Contingencies; and (3) other factors discussed in filings with the SEC by the Registrants. Readers are cautioned not to place undue reliance on these forward-looking statements, which apply only as of the date of this Report. None of the Registrants undertakes any obligation to publicly release any revision to its forward-looking statements to reflect events or circumstances after the date of this Report.
WHERE TO FIND MORE INFORMATION
The public may read and copy any reports or other information that the Registrants file with the SEC at the SEC’s public reference room at 100 F Street, N.E., Washington, D.C. 20549. The public may obtain information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330. These documents are also available to the public from commercial document retrieval services, the website maintained by the SEC at www.sec.gov and the Registrants’ websites at www.exeloncorp.com. Information contained on the Registrants’ websites shall not be deemed incorporated into, or to be a part of, this Report.

10





PART I. FINANCIAL INFORMATION
Item 1. Financial Statements

11



EXELON CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(Unaudited)
 
Three Months Ended
March 31,
(In millions, except per share data)
2018
 
2017
Operating revenues
 
 
 
Competitive businesses revenues
$
5,113

 
$
4,550

Rate-regulated utility revenues
4,570

 
4,118

Revenues from alternative revenue programs
10

 
79

Total operating revenues
9,693

 
8,747

Operating expenses
 
 
 
Competitive businesses purchased power and fuel
3,289

 
2,795

Rate-regulated utility purchased power and fuel
1,438

 
1,104

Operating and maintenance
2,384

 
2,438

Depreciation and amortization
1,091

 
896

Taxes other than income
446

 
436

Total operating expenses
8,648


7,669

Gain on sales of assets and businesses
56

 
4

Bargain purchase gain

 
226

Operating income
1,101


1,308

Other income and (deductions)
 
 
 
Interest expense, net
(365
)
 
(363
)
Interest expense to affiliates
(6
)
 
(10
)
Other, net
(28
)
 
257

Total other income and (deductions)
(399
)

(116
)
Income before income taxes
702

 
1,192

Income taxes
59

 
211

Equity in losses of unconsolidated affiliates
(7
)
 
(10
)
Net income
636


971

Net income (loss) attributable to noncontrolling interests
51

 
(19
)
Net income attributable to common shareholders
$
585


$
990

Comprehensive income, net of income taxes
 
 
 
Net income
$
636

 
$
971

Other comprehensive income (loss), net of income taxes
 
 
 
Pension and non-pension postretirement benefit plans:
 
 
 
Prior service benefit reclassified to periodic benefit cost
(17
)
 
(13
)
Actuarial loss reclassified to periodic benefit cost
61

 
49

Pension and non-pension postretirement benefit plan valuation adjustment
18

 
(59
)
Unrealized gain on cash flow hedges
8

 
6

Unrealized gain on investments in unconsolidated affiliates
1

 
3

Unrealized gain on foreign currency translation
1

 
1

Unrealized gain on marketable securities

 
1

Other comprehensive income (loss)
72


(12
)
Comprehensive income
708


959

Comprehensive income (loss) attributable to noncontrolling interests
52

 
(21
)
Comprehensive income attributable to common shareholders
$
656

 
$
980

 
 
 
 
Average shares of common stock outstanding:
 
 
 
Basic
966

 
928

Diluted
968

 
930

Earnings per average common share:
 
 
 
Basic
$
0.61

 
$
1.07

Diluted
$
0.60

 
$
1.06

Dividends declared per common share
$
0.35

 
$
0.33


See the Combined Notes to Consolidated Financial Statements
12


EXELON CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited) 
 
Three Months Ended
March 31,
(In millions)
2018
 
2017
Cash flows from operating activities
 
 
 
Net income
$
636

 
$
971

Adjustments to reconcile net income to net cash flows provided by operating activities:
 
 
 
Depreciation, amortization and accretion, including nuclear fuel and energy contract amortization
1,501

 
1,274

Impairment of long-lived assets and losses on regulatory assets

 
10

Gain on sales of assets and businesses
(56
)
 
(4
)
Bargain purchase gain

 
(226
)
Deferred income taxes and amortization of investment tax credits
(14
)
 
185

Net fair value changes related to derivatives
259

 
47

Net realized and unrealized gains (losses) on nuclear decommissioning trust fund investments
68

 
(175
)
Other non-cash operating activities
240

 
118

Changes in assets and liabilities:
 
 
 
Accounts receivable
133

 
291

Inventories
167

 
109

Accounts payable and accrued expenses
(451
)
 
(728
)
Option premiums paid, net
(27
)
 
(6
)
Collateral posted, net
(214
)
 
(110
)
Income taxes
86

 
50

Pension and non-pension postretirement benefit contributions
(331
)
 
(307
)
Other assets and liabilities
(495
)
 
(425
)
Net cash flows provided by operating activities
1,502


1,074

Cash flows from investing activities
 
 
 
Capital expenditures
(1,880
)
 
(2,009
)
Proceeds from nuclear decommissioning trust fund sales
1,189

 
1,767

Investment in nuclear decommissioning trust funds
(1,248
)
 
(1,833
)
Acquisition of businesses, net

 
(212
)
Proceeds from sales of assets and businesses
79

 
22

Other investing activities
3

 
(18
)
Net cash flows used in investing activities
(1,857
)

(2,283
)
Cash flows from financing activities
 
 
 
Changes in short-term borrowings
726

 
721

Proceeds from short-term borrowings with maturities greater than 90 days
1

 
560

Repayments on short-term borrowings with maturities greater than 90 days
(1
)
 
(500
)
Issuance of long-term debt
1,130

 
763

Retirement of long-term debt
(1,241
)
 
(65
)
Dividends paid on common stock
(333
)
 
(303
)
Proceeds from employee stock plans
12

 
12

Other financing activities
(30
)
 
(4
)
Net cash flows provided by financing activities
264


1,184

Decrease in cash, cash equivalents and restricted cash
(91
)
 
(25
)
Cash, cash equivalents and restricted cash at beginning of period
1,190

 
914

Cash, cash equivalents and restricted cash at end of period
$
1,099


$
889


See the Combined Notes to Consolidated Financial Statements
13


EXELON CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In millions)
March 31, 2018
 
December 31, 2017
ASSETS
 
 
 
Current assets
 
 
 
Cash and cash equivalents
$
787

 
$
898

Restricted cash and cash equivalents
209

 
207

Accounts receivable, net
 
 
 
Customer
4,190

 
4,445

Other
1,103

 
1,132

Mark-to-market derivative assets
978

 
976

Unamortized energy contract assets
55

 
60

Inventories, net
 
 
 
Fossil fuel and emission allowances
180

 
340

Materials and supplies
1,291

 
1,311

Regulatory assets
1,245

 
1,267

Other
1,495

 
1,260

Total current assets
11,533


11,896

Property, plant and equipment, net
74,711

 
74,202

Deferred debits and other assets
 
 
 
Regulatory assets
8,063

 
8,021

Nuclear decommissioning trust funds
13,149

 
13,272

Investments
640

 
640

Goodwill
6,677

 
6,677

Mark-to-market derivative assets
527

 
337

Unamortized energy contract assets
385

 
395

Other
1,333

 
1,330

Total deferred debits and other assets
30,774


30,672

Total assets(a)
$
117,018


$
116,770


See the Combined Notes to Consolidated Financial Statements
14


EXELON CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATED BALANCE SHEETS
(Unaudited) 
(In millions)
March 31, 2018
 
December 31, 2017
LIABILITIES AND SHAREHOLDERS’ EQUITY
 
 
 
Current liabilities
 
 
 
Short-term borrowings
$
1,654

 
$
929

Long-term debt due within one year
1,203

 
2,088

Accounts payable
3,207

 
3,532

Accrued expenses
1,569

 
1,837

Payables to affiliates
5

 
5

Regulatory liabilities
522

 
523

Mark-to-market derivative liabilities
415

 
232

Unamortized energy contract liabilities
202

 
231

Renewable energy credit obligation
333

 
352

PHI merger related obligation
87

 
87

Other
956

 
982

Total current liabilities
10,153

 
10,798

Long-term debt
32,905

 
32,176

Long-term debt to financing trusts
389

 
389

Deferred credits and other liabilities
 
 
 
Deferred income taxes and unamortized investment tax credits
11,344

 
11,235

Asset retirement obligations
10,126

 
10,029

Pension obligations
3,433

 
3,736

Non-pension postretirement benefit obligations
2,114

 
2,093

Spent nuclear fuel obligation
1,151

 
1,147

Regulatory liabilities
9,724

 
9,865

Mark-to-market derivative liabilities
468

 
409

Unamortized energy contract liabilities
579

 
609

Other
2,067

 
2,097

Total deferred credits and other liabilities
41,006

 
41,220

Total liabilities(a)
84,453


84,583

Commitments and contingencies

 

Shareholders’ equity
 
 
 
Common stock (No par value, 2,000 shares authorized, 965 shares and 963 shares outstanding at March 31, 2018 and December 31, 2017, respectively)
18,973

 
18,964

Treasury stock, at cost (2 shares at March 31, 2018 and December 31, 2017)
(123
)
 
(123
)
Retained earnings
14,346

 
14,081

Accumulated other comprehensive loss, net
(2,965
)
 
(3,026
)
Total shareholders’ equity
30,231


29,896

Noncontrolling interests
2,334

 
2,291

Total equity
32,565


32,187

Total liabilities and shareholders’ equity
$
117,018


$
116,770

__________
(a)
Exelon’s consolidated assets include $9,727 million and $9,597 million at March 31, 2018 and December 31, 2017, respectively, of certain VIEs that can only be used to settle the liabilities of the VIE. Exelon’s consolidated liabilities include $3,556 million and $3,618 million at March 31, 2018 and December 31, 2017, respectively, of certain VIEs for which the VIE creditors do not have recourse to Exelon. See Note 3Variable Interest Entities.

See the Combined Notes to Consolidated Financial Statements
15


EXELON CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY
(Unaudited)
 
(In millions, shares
in thousands)
Issued
Shares
 
Common
Stock
 
Treasury
Stock
 
Retained
Earnings
 
Accumulated
Other
Comprehensive
Loss, net
 
Noncontrolling
Interests
 
Total Shareholders'
Equity
Balance, December 31, 2017
965,168

 
$
18,964

 
$
(123
)
 
$
14,081

 
$
(3,026
)
 
$
2,291

 
$
32,187

Net income

 

 

 
585

 

 
51

 
636

Long-term incentive plan activity
1,685

 
(3
)
 

 

 

 

 
(3
)
Employee stock purchase plan issuances
361

 
12

 

 

 

 

 
12

Changes in equity of noncontrolling interests

 

 

 

 

 
(9
)
 
(9
)
Common stock dividends

 

 

 
(334
)
 

 

 
(334
)
Other comprehensive income, net of income taxes

 

 

 

 
71

 
1

 
72

Impact of adoption of Recognition and Measurement of Financial Assets and Liabilities standard

 

 

 
14

 
(10
)
 

 
4

Balance, March 31, 2018
967,214

 
$
18,973

 
$
(123
)
 
$
14,346

 
$
(2,965
)
 
$
2,334

 
$
32,565


See the Combined Notes to Consolidated Financial Statements
16



EXELON GENERATION COMPANY, LLC AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(Unaudited)
 
 
Three Months Ended
March 31,
(In millions)
2018
 
2017
Operating revenues
 
 
 
Operating revenues
$
5,114

 
$
4,548

Operating revenues from affiliates
398

 
330

Total operating revenues
5,512


4,878

Operating expenses
 
 
 
Purchased power and fuel
3,289

 
2,796

Purchased power and fuel from affiliates
4

 
2

Operating and maintenance
1,178

 
1,313

Operating and maintenance from affiliates
161

 
179

Depreciation and amortization
448

 
302

Taxes other than income
138

 
143

Total operating expenses
5,218


4,735

Gain on sales of assets and businesses
53

 
4

Bargain purchase gain

 
226

Operating income
347


373

Other income and (deductions)
 
 
 
Interest expense, net
(91
)
 
(90
)
Interest expense to affiliates
(10
)
 
(10
)
Other, net
(44
)
 
259

Total other income and (deductions)
(145
)

159

Income before income taxes
202

 
532

Income taxes
9

 
123

Equity in losses of unconsolidated affiliates
(7
)
 
(10
)
Net income
186


399

Net income (loss) attributable to noncontrolling interests
50

 
(19
)
Net income attributable to membership interest
$
136


$
418

Comprehensive income, net of income taxes
 
 
 
Net income
$
186

 
$
399

Other comprehensive income (loss), net of income taxes
 
 
 
Unrealized gain on cash flow hedges
7

 
6

Unrealized gain on investments in unconsolidated affiliates
1

 
4

Unrealized (loss) gain on foreign currency translation
(1
)
 
1

Other comprehensive income
7


11

Comprehensive income
193


410

Comprehensive income (loss) attributable to noncontrolling interests
51

 
(21
)
Comprehensive income attributable to membership interest
$
142

 
$
431



See the Combined Notes to Consolidated Financial Statements
17


EXELON GENERATION COMPANY, LLC AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
 
 
Three Months Ended
March 31,
(In millions)
2018
 
2017
Cash flows from operating activities
 
 
 
Net income
$
186

 
$
399

Adjustments to reconcile net income to net cash flows provided by operating activities:
 
 
 
Depreciation, amortization and accretion, including nuclear fuel and energy contract amortization
858

 
678

Impairment of long-lived assets

 
10

Gain on sales of assets and businesses
(53
)
 
(4
)
Bargain purchase gain

 
(226
)
Deferred income taxes and amortization of investment tax credits
(68
)
 
108

Net fair value changes related to derivatives
264

 
51

Net realized and unrealized gains on nuclear decommissioning trust fund investments
68

 
(175
)
Other non-cash operating activities
45

 
(10
)
Changes in assets and liabilities:

 

Accounts receivable
194

 
173

Receivables from and payables to affiliates, net
(15
)
 
23

Inventories
122

 
81

Accounts payable and accrued expenses
(317
)
 
(236
)
Option premiums paid, net
(27
)
 
(6
)
Collateral posted, net
(214
)
 
(102
)
Income taxes
79

 
(81
)
Pension and non-pension postretirement benefit contributions
(125
)
 
(110
)
Other assets and liabilities
(142
)
 
(153
)
Net cash flows provided by operating activities
855


420

Cash flows from investing activities
 
 
 
Capital expenditures
(628
)
 
(625
)
Proceeds from nuclear decommissioning trust fund sales
1,189

 
1,767

Investment in nuclear decommissioning trust funds
(1,248
)
 
(1,833
)
Acquisition of businesses, net

 
(212
)
Proceeds from sales of assets and businesses
79

 
22

Other investing activities
(7
)
 
(29
)
Net cash flows used in investing activities
(615
)

(910
)
Cash flows from financing activities
 
 
 
Changes in short-term borrowings
165

 
(42
)
Proceeds from short-term borrowings with maturities greater than 90 days
1

 
60

Repayments of short-term borrowings with maturities greater than 90 days
(1
)
 

Issuance of long-term debt
4

 
762

Retirement of long-term debt
(29
)
 
(30
)
Changes in Exelon intercompany money pool

 
(1
)
Distributions to member
(188
)
 
(164
)
Other financing activities
(9
)
 
(3
)
Net cash flows (used in) provided by financing activities
(57
)

582

Increase in cash, cash equivalents and restricted cash
183

 
92

Cash, cash equivalents and restricted cash at beginning of period
554

 
448

Cash, cash equivalents and restricted cash at end of period
$
737


$
540


See the Combined Notes to Consolidated Financial Statements
18


EXELON GENERATION COMPANY, LLC AND SUBSIDIARY COMPANIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
 
(In millions)
March 31, 2018
 
December 31, 2017
ASSETS
 
 
 
Current assets
 
 
 
Cash and cash equivalents
$
610

 
$
416

Restricted cash and cash equivalents
127

 
138

Accounts receivable, net
 
 
 
Customer
2,478

 
2,697

Other
294

 
321

Mark-to-market derivative assets
978

 
976

Receivables from affiliates
153

 
140

Unamortized energy contract assets
55

 
60

Inventories, net
 
 
 
Fossil fuel and emission allowances
151

 
264

Materials and supplies
916

 
937

Other
1,122

 
933

Total current assets
6,884


6,882

Property, plant and equipment, net
24,714

 
24,906

Deferred debits and other assets
 
 
 
Nuclear decommissioning trust funds
13,149

 
13,272

Investments
431

 
433

Goodwill
47

 
47

Mark-to-market derivative assets
527

 
334

Prepaid pension asset
1,571

 
1,502

Unamortized energy contract assets
385

 
395

Deferred income taxes
10

 
16

Other
657

 
670

Total deferred debits and other assets
16,777


16,669

Total assets(a) 
$
48,375


$
48,457


See the Combined Notes to Consolidated Financial Statements
19


EXELON GENERATION COMPANY, LLC AND SUBSIDIARY COMPANIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
 
(In millions)
March 31, 2018
 
December 31, 2017
LIABILITIES AND EQUITY
 
 
 
Current liabilities
 
 
 
Short-term borrowings
$
166

 
$
2

Long-term debt due within one year
373

 
346

Accounts payable
1,447

 
1,773

Accrued expenses
951

 
1,022

Payables to affiliates
114

 
123

Borrowings from Exelon intercompany money pool
54

 
54

Mark-to-market derivative liabilities
391

 
211

Unamortized energy contract liabilities
39

 
43

Renewable energy credit obligation
333

 
352

Other
288

 
265

Total current liabilities
4,156

 
4,191

Long-term debt
7,685

 
7,734

Long-term debt to affiliate
907

 
910

Deferred credits and other liabilities
 
 
 
Deferred income taxes and unamortized investment tax credits
3,749

 
3,811

Asset retirement obligations
9,941

 
9,844

Non-pension postretirement benefit obligations
911

 
916

Spent nuclear fuel obligation
1,151

 
1,147

Payables to affiliates
2,970

 
3,065

Mark-to-market derivative liabilities
221

 
174

Unamortized energy contract liabilities
40

 
48

Other
686

 
658

Total deferred credits and other liabilities
19,669

 
19,663

Total liabilities(a)
32,417

 
32,498

Commitments and contingencies

 

Equity
 
 
 
Member’s equity
 
 
 
Membership interest
9,357

 
9,357

Undistributed earnings
4,303

 
4,349

Accumulated other comprehensive loss, net
(34
)
 
(37
)
Total member’s equity
13,626

 
13,669

Noncontrolling interests
2,332

 
2,290

Total equity
15,958

 
15,959

Total liabilities and equity
$
48,375

 
$
48,457

__________
(a)
Generation’s consolidated assets include $9,688 million and $9,556 million at March 31, 2018 and December 31, 2017, respectively, of certain VIEs that can only be used to settle the liabilities of the VIE. Generation’s consolidated liabilities include $3,461 million and $3,516 million at March 31, 2018 and December 31, 2017, respectively, of certain VIEs for which the VIE creditors do not have recourse to Generation. See Note 3Variable Interest Entities.

See the Combined Notes to Consolidated Financial Statements
20


EXELON GENERATION COMPANY, LLC AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
(Unaudited)
 
 
Member’s Equity
 
 
 
 
(In millions)
Membership
Interest
 
Undistributed
Earnings
 
Accumulated
Other
Comprehensive
Loss, net
 
Noncontrolling
Interests
 
Total Equity
Balance, December 31, 2017
$
9,357

 
$
4,349

 
$
(37
)
 
$
2,290

 
$
15,959

Net income

 
136

 

 
50

 
186

Changes in equity of noncontrolling interests

 

 

 
(9
)
 
(9
)
Distributions to member

 
(188
)
 

 

 
(188
)
Other comprehensive income, net of income taxes

 

 
6

 
1

 
7

Impact of adoption of Recognition and Measurement of Financial Assets and Liabilities standard

 
6

 
(3
)
 

 
3

Balance, March 31, 2018
$
9,357


$
4,303


$
(34
)

$
2,332


$
15,958


See the Combined Notes to Consolidated Financial Statements
21



COMMONWEALTH EDISON COMPANY AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(Unaudited)
 
 
Three Months Ended
March 31,
(In millions)
2018
 
2017
Operating revenues
 
 
 
Electric operating revenues
$
1,493

 
$
1,279

Revenues from alternative revenue programs
5

 
14

Operating revenues from affiliates
14

 
5

Total operating revenues
1,512


1,298

Operating expenses
 
 
 
Purchased power
411

 
329

Purchased power from affiliate
194

 
5

Operating and maintenance
253

 
307

Operating and maintenance from affiliate
60

 
63

Depreciation and amortization
228

 
208

Taxes other than income
77

 
72

Total operating expenses
1,223


984

Gain on sales of assets
3

 

Operating income
292


314

Other income and (deductions)
 
 
 
Interest expense, net
(86
)
 
(82
)
Interest expense to affiliates
(3
)
 
(3
)
Other, net
8

 
4

Total other income and (deductions)
(81
)

(81
)
Income before income taxes
211

 
233

Income taxes
46

 
92

Net income
$
165


$
141

Comprehensive income
$
165

 
$
141


See the Combined Notes to Consolidated Financial Statements
22


COMMONWEALTH EDISON COMPANY AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
 
 
Three Months Ended
March 31,
(In millions)
2018
 
2017
Cash flows from operating activities
 
 
 
Net income
$
165

 
$
141

Adjustments to reconcile net income to net cash flows provided by operating activities:
 
 
 
Depreciation and amortization
228

 
208

Deferred income taxes and amortization of investment tax credits
50

 
137

Other non-cash operating activities
46

 
31

Changes in assets and liabilities:
 
 
 
Accounts receivable
39

 
92

Receivables from and payables to affiliates, net
(19
)
 
(16
)
Inventories
5

 
4

Accounts payable and accrued expenses
(158
)
 
(236
)
Collateral posted, net
(3
)
 
(7
)
Income taxes
(5
)
 
(34
)
Pension and non-pension postretirement benefit contributions
(38
)
 
(35
)
Other assets and liabilities
(176
)
 
(49
)
Net cash flows provided by operating activities
134


236

Cash flows from investing activities
 
 
 
Capital expenditures
(531
)
 
(626
)
Other investing activities
8

 
7

Net cash flows used in investing activities
(523
)

(619
)
Cash flows from financing activities
 
 
 
Changes in short-term borrowings
317

 
365

Issuance of long-term debt
800

 

Retirement of long-term debt
(700
)
 

Contributions from parent
113

 
100

Dividends paid on common stock
(114
)
 
(105
)
Other financing activities
(9
)
 
(1
)
Net cash flows provided by financing activities
407


359

Increase (Decrease) in cash, cash equivalents and restricted cash
18

 
(24
)
Cash, cash equivalents and restricted cash at beginning of period
144

 
58

Cash, cash equivalents and restricted cash at end of period
$
162


$
34


See the Combined Notes to Consolidated Financial Statements
23


COMMONWEALTH EDISON COMPANY AND SUBSIDIARY COMPANIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
 
(In millions)
March 31, 2018
 
December 31, 2017
ASSETS
 
 
 
Current assets
 
 
 
Cash and cash equivalents
$
70

 
$
76

Restricted cash
9

 
5

Accounts receivable, net
 
 
 
Customer
485

 
559

Other
290

 
266

Receivables from affiliates
28

 
13

Inventories, net
146

 
152

Regulatory assets
226

 
225

Other
82

 
68

Total current assets
1,336


1,364

Property, plant and equipment, net
21,010

 
20,723

Deferred debits and other assets
 
 
 
Regulatory assets
1,125

 
1,054

Investments
6

 
6

Goodwill
2,625

 
2,625

Receivables from affiliates
2,464

 
2,528

Prepaid pension asset
1,177

 
1,188

Other
259

 
238

Total deferred debits and other assets
7,656


7,639

Total assets
$
30,002


$
29,726


See the Combined Notes to Consolidated Financial Statements
24


COMMONWEALTH EDISON COMPANY AND SUBSIDIARY COMPANIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
 
(In millions)
March 31, 2018
 
December 31, 2017
LIABILITIES AND SHAREHOLDERS’ EQUITY
 
 
 
Current liabilities
 
 
 
Short-term borrowings
$
317

 
$

Long-term debt due within one year
440

 
840

Accounts payable
491

 
568

Accrued expenses
198

 
327

Payables to affiliates
70

 
74

Customer deposits
111

 
112

Regulatory liabilities
212

 
249

Mark-to-market derivative liability
24

 
21

Other
82

 
103

Total current liabilities
1,945

 
2,294

Long-term debt
7,254

 
6,761

Long-term debt to financing trust
205

 
205

Deferred credits and other liabilities
 
 
 
Deferred income taxes and unamortized investment tax credits
3,539

 
3,469

Asset retirement obligations
111

 
111

Non-pension postretirement benefits obligations
215

 
219

Regulatory liabilities
6,212

 
6,328

Mark-to-market derivative liability
243

 
235

Other
572

 
562

Total deferred credits and other liabilities
10,892

 
10,924

Total liabilities
20,296

 
20,184

Commitments and contingencies

 

Shareholders’ equity
 
 
 
Common stock
1,588

 
1,588

Other paid-in capital
6,935

 
6,822

Retained deficit unappropriated
(1,639
)
 
(1,639
)
Retained earnings appropriated
2,822

 
2,771

Total shareholders’ equity
9,706

 
9,542

Total liabilities and shareholders’ equity
$
30,002

 
$
29,726


See the Combined Notes to Consolidated Financial Statements
25


COMMONWEALTH EDISON COMPANY AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY
(Unaudited)
 
(In millions)
Common
Stock
 
Other
Paid-In
Capital
 
Retained Deficit
Unappropriated
 
Retained
Earnings
Appropriated
 
Total
Shareholders’
Equity
Balance, December 31, 2017
$
1,588

 
$
6,822

 
$
(1,639
)
 
$
2,771

 
$
9,542

Net income

 

 
165

 

 
165

Appropriation of retained earnings for future dividends

 

 
(165
)
 
165

 

Common stock dividends

 

 

 
(114
)
 
(114
)
Contributions from parent

 
113

 

 

 
113

Balance, March 31, 2018
$
1,588


$
6,935


$
(1,639
)

$
2,822


$
9,706



See the Combined Notes to Consolidated Financial Statements
26



PECO ENERGY COMPANY AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(Unaudited)
 
 
Three Months Ended
March 31,
(In millions)
2018
 
2017
Operating revenues
 
 
 
Electric operating revenues
$
633

 
$
589

Natural gas operating revenues
232

 
206

Revenues from alternative revenue programs
(1
)
 

Operating revenues from affiliates
2

 
1

Total operating revenues
866


796

Operating expenses
 
 
 
Purchased power
199

 
156

Purchased fuel
98

 
86

Purchased power from affiliate
36

 
45

Operating and maintenance
233

 
174

Operating and maintenance from affiliates
42

 
34

Depreciation and amortization
75

 
71

Taxes other than income
41

 
38

Total operating expenses
724