Exelon Reports First Quarter 2023 Results

Earnings Release Highlights

• GAAP Net Income of $0.67 per share and Adjusted (non-GAAP) Operating Earnings of $0.70 per share for the first quarter of 2023

• Affirming full year 2023 Adjusted (non-GAAP) Operating Earnings guidance range of $2.30-$2.42 per share

• Reaffirming fully regulated operating EPS* compounded annual growth target of 6-8% from 2021 and 2022 guidance midpoints through 2025 and 2026, respectively, with expectation to be at midpoint or better of growth range

• Achieved top quartile reliability performance at all utilities, with all four operating companies delivering their best-on-record performance in outage duration

• ACE filed an electric distribution rate case with the New Jersey Board of Public Utilities (NJBPU) in February seeking an increase in base rates to support significant investments in infrastructure to maintain safety, reliability, and service for customers

• BGE filed its second multi-year plan with the Maryland Public Service Commission (MDPSC) in February seeking an increase in electric and gas distribution base rates over the period of 2024 to 2026 to continue providing safe, reliable service to customers while laying the foundation for BGE to support the achievement of Maryland’s state policy goals

• Pepco filed its second multi-year plan with the Public Service Commission of the District of Columbia (DCPSC) in April seeking an increase in base rates over the period of 2024 to 2026 to support a climate ready grid and enable cleaner energy programs and technologies that further support the District’s goal to be carbon neutral by 2045

CHICAGO, May 03, 2023--(BUSINESS WIRE)--Exelon Corporation (Nasdaq: EXC) today reported its financial results for the first quarter of 2023.

"Our team of 19,000 plus employees have entered this first full year of operations after the separation excited to lead the energy transformation, and it shows in our results," said Exelon President and CEO Calvin Butler. "In addition to strong financial performance, all four of our utilities achieved best-on-record reliability. These results are a testament to our team’s hard work, smart investment, and commitment to financial and operational excellence. As we continue to execute on our financial, operational and regulatory objectives in 2023, we continue to keep our customers at the forefront of everything we do."

"2023 is off to a strong start, delivering Adjusted (non-GAAP) Operating Earnings of $0.70 per share, $0.06 ahead of results in the first quarter of 2022, driven by increased revenues associated with the investments we are making on behalf of customers," said Exelon Executive Vice President and CFO Jeanne Jones. "With most of our planned debt financing activity complete for the year and all but one of our planned rate cases now filed, we are well on our way to executing on the plan laid out at the beginning of the year. We reaffirm our full-year Adjusted (non-GAAP) Operating Earnings guidance range of $2.30 to $2.42 per share."

First Quarter 2023

Exelon's GAAP Net Income from Continuing Operations for the first quarter of 2023 increased to $0.67 per share from $0.49 GAAP Net Income from Continuing Operations per share in the first quarter of 2022. Adjusted (non-GAAP) Operating Earnings for the first quarter of 2023 increased to $0.70 per share from $0.64 per share in the first quarter of 2022. For the reconciliations of GAAP Net Income from Continuing Operations to Adjusted (non-GAAP) Operating Earnings, refer to the tables beginning on page 5.

Adjusted (non-GAAP) Operating Earnings in the first quarter of 2023 primarily reflect:

• Higher utility earnings primarily due to higher electric distribution formula rate earnings at ComEd from higher allowed ROE due to an increase in U.S. treasury rates and impacts of higher rate base, rate increases at PECO, BGE, and PHI, and carrying costs related to the carbon mitigation credit (CMC) regulatory assets at ComEd. This was partially offset by unfavorable weather at PECO and PHI, higher depreciation expense at PECO, higher credit loss expense at PECO, and higher interest expense at BGE.

• Lower costs at the Exelon holding company due to certain BSC costs that were historically allocated to Constellation Energy Generation, LLC (Generation) but are presented as part of continuing operations in Exelon’s results in the first quarter of 2022 as these costs do not qualify as expenses of the discontinued operations per the accounting rules. This was partially offset by higher interest expense.

Operating Company Results¹

ComEd

ComEd's first quarter of 2023 GAAP Net Income increased to $241 million from $188 million in the first quarter of 2022. ComEd's Adjusted (non-GAAP) Operating Earnings for the first quarter of 2023 increased to $251 million from $193 million in the first quarter of 2022, primarily due to increases in electric distribution formula rate earnings (reflecting higher allowed ROE due to an increase in U.S. treasury rates and the impacts of higher rate base) and carrying costs related to the CMC regulatory assets. Due to revenue decoupling, ComEd's distribution earnings are not affected by actual weather or customer usage patterns.

___________

1Exelon’s four 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; and 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.

PECO

PECO’s first quarter of 2023 GAAP Net Income decreased to $166 million from $206 million in the first quarter of 2022. PECO's Adjusted (non-GAAP) Operating Earnings for the first quarter of 2023 decreased to $166 million from $208 million in the first quarter of 2022, primarily due to unfavorable weather, an increase in credit loss expense and depreciation expense, partially offset by gas distribution rate increases.

BGE

BGE’s first quarter of 2023 GAAP Net Income increased to $200 million from $198 million in the first quarter of 2022. BGE's Adjusted (non-GAAP) Operating Earnings for the first quarter of 2023 decreased to $199 million from $200 million in the first quarter of 2022, primarily due to an increase in interest expense, offset by favorable impacts of the multi-year plans. Due to revenue decoupling, BGE's distribution earnings are not affected by actual weather or customer usage patterns.

PHI

PHI’s first quarter of 2023 GAAP Net Income increased to $155 million from $130 million in the first quarter of 2022. PHI’s Adjusted (non-GAAP) Operating Earnings for the first quarter of 2023 increased to $173 million from $136 million in the first quarter of 2022, primarily due to distribution and transmission rate increases, partially offset by unfavorable weather. Due to revenue decoupling, PHI's distribution earnings related to Pepco Maryland, DPL Maryland, Pepco District of Columbia, and ACE are not affected by actual weather or customer usage patterns.

Recent Developments and First Quarter Highlights

• ACE New Jersey Electric Base Rate Case: On February 15, 2023, ACE filed an application with the NJBPU to increase its annual electric distribution rates by $105 million, reflecting a requested ROE of 10.50%. ACE currently expects a decision in the first quarter of 2024, but cannot predict if the NJBPU will approve the application as filed. ACE intends to put rates into effect on November 17, 2023, subject to refund.

• BGE Maryland Electric and Natural Gas Base Rate Case: On February 17, 2023, BGE filed an application for a three-year cumulative multi-year plan for 2024 through 2026 with the MDPSC. Inclusive of the proposed acceleration of remaining electric tax benefits in 2024 and 2025, and remaining gas tax benefits in 2024, BGE requested total electric revenue requirement increases of $85 million, $103 million, and $125 million in 2024, 2025, and 2026, respectively, and natural gas revenue requirement increases of $158 million, $77 million, and $54 million in 2024, 2025, and 2026, respectively. The electric and gas revenue requirement increases reflect a requested ROE of 10.4%. Requested revenue requirement increases will be used to recover capital investments designed to increase the resilience of the electric and gas distribution systems and support Maryland’s climate and regulatory initiatives. BGE currently expects a decision in the fourth quarter of 2023, but cannot predict if the MDPSC will approve the application as filed. The 2021 and 2022 reconciliation amounts are not included in the requested revenue requirement increase, as BGE is proposing that these amounts be recovered through the separate electric and gas riders in 2024. The 2021 reconciliation amounts are $11 million and $7 million for electric and gas, respectively, and the 2022 reconciliation amounts are $44 million and $15 million for electric and gas, respectively.

• Pepco District of Columbia Electric Base Rate Case: On April 13, 2023, Pepco filed an application for a three-year cumulative multi-year plan for 2024 through 2026 with the DCPSC. Pepco requested total electric revenue requirement increases of $117 million, $37 million, and $37 million in 2024, 2025, and 2026, respectively. The electric revenue requirement increases reflect a requested ROE of 10.50%. Requested revenue requirement increases will be used to recover capital investments designed to advance system-readiness and support the District of Columbia's climate and clean energy goals. Pepco currently expects a decision in the first quarter of 2024, but cannot predict if the DCPSC will approve the application as filed.

• ComEd Distribution Formula Rate Reconciliation: On April 21, 2023, ComEd filed its proposed Delivery Reconciliation Amount of $247 million under Rider Delivery Service Pricing Reconciliation which allows for the reconciliation of the revenue requirement in effect in the final years in which formula rates are determined and until such time as new rates are established under ComEd’s approved MRP. The 2023 filing reconciles the delivery service rates in effect in 2022 with the actual delivery service costs incurred in 2022. Final order is expected by December 2023, and the reconciliation amount will be in customer rates beginning January 1, 2024.

• Financing Activities:

  • On February 21, 2023, Exelon issued $2,500 million of Notes, consisting of $1,000 million of its Notes at 5.15%, due March 15, 2028, $850 million of its Notes at 5.30%, due March 15, 2033 and $650 million of its Notes at 5.60%, due March 15, 2053. Exelon used the proceeds to repay existing indebtedness and for general corporate purposes.

  • On March 15, 2023, Pepco issued $250 million of First Mortgage Bonds, consisting of $85 million of its First Mortgage 5.30% Bonds, due March 15, 2033, $40 million of its First Mortgage 5.40% Bonds, due March 15, 2038, and $125 million of its First Mortgage 5.57% Bonds, due March 15, 2053. Pepco used the proceeds to repay existing indebtedness and for general corporate purposes.

  • On March 15, 2023, DPL issued $125 million of First Mortgage Bonds, consisting of $60 million of its First Mortgage 5.30% Bonds, due March 15, 2033 and $65 million of its First Mortgage 5.57% Bonds, due March 15, 2053. DPL used the proceeds to repay existing indebtedness and for general corporate purposes.

  • On March 15, 2023, ACE issued $75 million of its First Mortgage bonds, 5.57% Series, due March 15, 2053. ACE used the proceeds to repay existing indebtedness and for general corporate purposes.

GAAP/Adjusted (non-GAAP) Operating Earnings Reconciliation

Adjusted (non-GAAP) Operating Earnings for the first quarter of 2023 do not include the following items (after tax) that were included in reported GAAP Net Income from Continuing Operations:

(in millions, except per share amounts)	Exelon Earnings per Diluted Share		Exelon			ComEd		PECO		BGE		PHI
2023 GAAP Net Income (Loss) from Continuing Operations	$	0.67	$	669		$	241	$	166	$	200	$	155
Mark-to-Market Impact of Economic Hedging Activities (net of taxes of $0)		—		(1	)		—		—		—		—
Change in Environmental Liabilities (net of taxes of $7)		0.02		18			—		—		—		18
Change in FERC Audit Liability (net of taxes of $4)		0.01		11			11		—		—		—
Separation Costs (net of taxes of $0)		—		(1	)		—		—		—		—
2023 Adjusted (non-GAAP) Operating Earnings	$	0.70	$	696		$	251	$	166	$	199	$	173

Adjusted (non-GAAP) Operating Earnings for the first quarter of 2022 do not include the following items (after tax) that were included in reported GAAP Net Income from Continuing Operations:

(in millions, except per share amounts)	Exelon Earnings per Diluted Share		Exelon			ComEd		PECO		BGE		PHI
2022 GAAP Net Income (Loss) from Continuing Operations	$	0.49	$	481		$	188	$	206	$	198	$	130
Enterprise Resource Program (ERP) System Implementation Costs (net of taxes of $0)		—		1			—		—		—		—
Separation Costs (net of taxes of $7, $2, $1, $1, and $1, respectively)		0.02		17			5		2		2		4
Income Tax-Related Adjustments (entire amount represents tax expense)		0.14		134			—		—		—		3
2022 Adjusted (non-GAAP) Operating Earnings	$	0.64	$	634		$	193	$	208	$	200	$	136

Note:
Amounts may not sum due to rounding.
Unless otherwise noted, the income tax impact of each reconciling item between GAAP Net Income (Loss) from Continuing Operations 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, the marginal statutory income tax rates for 2023 and 2022 ranged from 24.0% to 29.0%.

Webcast Information

Exelon will discuss first quarter 2023 earnings in a 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 (Nasdaq: EXC) is a Fortune 200 company and the nation’s largest energy delivery company, serving more than 10 million customers through six fully regulated transmission and distribution utilities — Atlantic City Electric (ACE), Baltimore Gas and Electric (BGE), Commonwealth Edison (ComEd), Delmarva Power & Light (DPL), PECO Energy Company (PECO), and Potomac Electric Power Company (Pepco). More than 19,000 Exelon employees dedicate their time and expertise to powering a cleaner and brighter future for our customers and communities through reliable, affordable and efficient energy delivery, workforce development, equity, economic development and volunteerism. 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 May 3, 2023.

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. Words such as "could," "may," "expects," "anticipates," "will," "targets," "goals," "projects," "intends," "plans," "believes," "seeks," "estimates," "predicts," "should," and variations on such words, and similar expressions that reflect our current views with respect to future events and operational, economic, and financial performance, are intended to identify such forward-looking statements.

The factors that could cause actual results to differ materially from the forward-looking statements made by Exelon Corporation, Commonwealth Edison Company, PECO Energy Company, Baltimore Gas and Electric Company, Pepco Holdings LLC, Potomac Electric Power Company, Delmarva Power & Light Company, and Atlantic City Electric Company (Registrants) include those factors discussed herein, as well as the items discussed in (1) the Registrants' 2022 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' First Quarter 2023 Quarterly Report on Form 10-Q (to be filed on May 3, 2023) 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 12, 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.

Earnings Release Attachments Table of Contents
Consolidating Statement of Operations	2
Consolidated Balance Sheets	3
Consolidated Statements of Cash Flows	5
Reconciliation of GAAP Net Income from Continuing Operations to Adjusted (non-GAAP) Operating Earnings and Analysis of Earnings	6
Statistics
ComEd	8
PECO	8
BGE	10
Pepco	11
DPL	12
ACE	13

Consolidating Statements of Operations (unaudited) (in millions)
	ComEd				PECO				BGE				PHI				Other (a)				Exelon
Three Months Ended March 31, 2023
Operating revenues	$	1,667			$	1,112			$	1,257			$	1,536			$	(9	)		$	5,563
Operating expenses
Purchased power and fuel		488				484				492				627				—				2,091
Operating and maintenance		337				270				222				309				13				1,151
Depreciation and amortization		338				98				167				241				16				860
Taxes other than income taxes		93				50				83				120				9				355
Total operating expenses		1,256				902				964				1,297				38				4,457
Operating income (loss)		411				210				293				239				(47	)			1,106
Other income and (deductions)
Interest expense, net		(117	)			(48	)			(44	)			(76	)			(127	)			(412	)
Other, net		18				8				3				26				54				109
Total other income and (deductions)		(99	)			(40	)			(41	)			(50	)			(73	)			(303	)
Income (loss) from continuing operations before income taxes		312				170				252				189				(120	)			803
Income taxes		71				4				52				34				(27	)			134
Net income (loss) from continuing operations after income taxes		241				166				200				155				(93	)			669
Net income from discontinued operations after income taxes		—				—				—				—				—				—
Net income (loss)		241				166				200				155				(93	)			669
Net income attributable to noncontrolling interests		—				—				—				—				—				—
Net income (loss) attributable to common shareholders	$	241			$	166			$	200			$	155			$	(93	)		$	669
Three Months Ended March 31, 2022
Operating revenues	$	1,734			$	1,047			$	1,154			$	1,404			$	(12	)		$	5,327
Operating expenses
Purchased power and fuel		638				407				454				579				—				2,078
Operating and maintenance		351				247				218				299				63				1,178
Depreciation and amortization		321				92				171				218				15				817
Taxes other than income taxes		96				47				76				119				16				354
Total operating expenses		1,406				793				919				1,215				94				4,427
Operating income (loss)		328				254				235				189				(106	)			900
Other income and (deductions)
Interest expense, net		(100	)			(41	)			(35	)			(69	)			(93	)			(338	)
Other, net		12				7				7				17				94				137
Total other income and (deductions)		(88	)			(34	)			(28	)			(52	)			1				(201	)
Income (loss) from continuing operations before income taxes		240				220				207				137				(105	)			699
Income taxes		52				14				9				7				136				218
Net income (loss) from continuing operations after income taxes		188				206				198				130				(241	)			481
Net income from discontinued operations after income taxes		—				—				—				—				117				117
Net income (loss)		188				206				198				130				(124	)			598
Net income attributable to noncontrolling interests		—				—				—				—				1				1
Net income (loss) attributable to common shareholders	$	188			$	206			$	198			$	130			$	(125	)		$	597
Change in Net income from continuing operations 2022 to 2023	$	53			$	(40	)		$	2			$	25			$	148			$	188

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

Exelon Consolidated Balance Sheets (unaudited) (in millions)
		March 31, 2023				December 31, 2022
Assets
Current assets
Cash and cash equivalents		$	522			$	407
Restricted cash and cash equivalents			381				566
Accounts receivable
Customer accounts receivable			2,493				2,544
Customer allowance for credit losses			(389	)			(327	)
Customer accounts receivable, net			2,104				2,217
Other accounts receivable			1,346				1,426
Other allowance for credit losses			(91	)			(82	)
Other accounts receivable, net			1,255				1,344
Inventories, net
Fossil fuel			70				208
Materials and supplies			582				547
Regulatory assets			2,386				1,641
Other			477				406
Total current assets			7,777				7,336
Property, plant, and equipment, net			70,117				69,076
Deferred debits and other assets
Regulatory assets			7,878				8,037
Goodwill			6,630				6,630
Receivable related to Regulatory Agreement Units			3,069				2,897
Investments			234				232
Other			1,220				1,141
Total deferred debits and other assets			19,031				18,937
Total assets		$	96,925			$	95,349
Liabilities and shareholders’ equity
Current liabilities
Short-term borrowings		$	1,306			$	2,586
Long-term debt due within one year			1,356				1,802
Accounts payable			2,762				3,382
Accrued expenses			1,183				1,226
Payables to affiliates			5				5
Regulatory liabilities			472				437
Mark-to-market derivative liabilities			23				8
Unamortized energy contract liabilities			9				10
Other			976				1,155
Total current liabilities			8,092				10,611
Long-term debt			38,732				35,272
Long-term debt to financing trusts			390				390
Deferred credits and other liabilities
Deferred income taxes and unamortized investment tax credits			11,483				11,250
Regulatory liabilities			9,307				9,112
Pension obligations			1,101				1,109
Non-pension postretirement benefit obligations			506				507
Asset retirement obligations			270				269
Mark-to-market derivative liabilities			77				83
Unamortized energy contract liabilities			32				35
Other			1,869				1,967
Total deferred credits and other liabilities			24,645				24,332
Total liabilities			71,859				70,605
Commitments and contingencies
Shareholders’ equity
Common stock			20,921				20,908
Treasury stock, at cost			(123	)			(123	)
Retained earnings			4,907				4,597
Accumulated other comprehensive loss, net			(639	)			(638	)
Total shareholders’ equity			25,066				24,744
Total liabilities and shareholders’ equity		$	96,925			$	95,349

Exelon Consolidated Statements of Cash Flows (unaudited) (in millions)
		Three Months Ended March 31,
		2023				2022
Cash flows from operating activities
Net income		$	669			$	598
Adjustments to reconcile net income to net cash flows provided by operating activities:
Depreciation, amortization, and accretion, including nuclear fuel and energy contract amortization			860				1,024
Gain on sales of assets and businesses			—				(10	)
Deferred income taxes and amortization of investment tax credits			113				110
Net fair value changes related to derivatives			—				(59	)
Net realized and unrealized losses on NDT funds			—				205
Net unrealized losses on equity investments			—				16
Other non-cash operating activities			(138	)			232
Changes in assets and liabilities:
Accounts receivable			106				(711	)
Inventories			102				125
Accounts payable and accrued expenses			(482	)			291
Option premiums paid, net			—				(39	)
Collateral (paid) received, net			(214	)			1,142
Income taxes			23				77
Regulatory assets and liabilities, net			(324	)			(31	)
Pension and non-pension postretirement benefit contributions			(44	)			(574	)
Other assets and liabilities			(187	)			(614	)
Net cash flows provided by operating activities			484				1,782
Cash flows from investing activities
Capital expenditures			(1,881	)			(1,922	)
Proceeds from NDT fund sales			—				488
Investment in NDT funds			—				(516	)
Collection of DPP			—				169
Proceeds from sales of assets and businesses			—				16
Other investing activities			10				(54	)
Net cash flows used in investing activities			(1,871	)			(1,819	)
Cash flows from financing activities
Changes in short-term borrowings			(1,130	)			(700	)
Proceeds from short-term borrowings with maturities greater than 90 days			—				1,150
Repayments on short-term borrowings with maturities greater than 90 days			(150	)			(350	)
Issuance of long-term debt			3,925				4,301
Retirement of long-term debt			(857	)			(6	)
Dividends paid on common stock			(358	)			(332	)
Proceeds from employee stock plans			10				9
Transfer of cash, restricted cash, and cash equivalents to Constellation			—				(2,594	)
Other financing activities			(60	)			(62	)
Net cash flows provided by financing activities			1,380				1,416
(Decrease) increase in cash, restricted cash, and cash equivalents			(7	)			1,379
Cash, restricted cash, and cash equivalents at beginning of period			1,090				1,619
Cash, restricted cash, and cash equivalents at end of period		$	1,083			$	2,998

Exelon Reconciliation of GAAP Net Income (Loss) from Continuing Operations to Adjusted (non-GAAP) Operating Earnings and Analysis of Earnings Three Months Ended March 31, 2023 and 2022 (unaudited) (in millions, except per share data)
	Exelon Earnings per Diluted Share				ComEd				PECO				BGE				PHI				Other (a)				Exelon
2022 GAAP Net Income (Loss) from Continuing Operations	$	0.49			$	188			$	206			$	198			$	130			$	(241	)		$	481
ERP System Implementation Costs (net of taxes of $0) (1)		—				—				—				—				—				1				1
Separation Costs (net of taxes of $2, $1, $1, $1, $1 and $7, respectively) (2)		0.02				5				2				2				4				4				17
Income Tax-Related Adjustments (entire amount represents tax expense) (3)		0.14				—				—				—				3				131				134
2022 Adjusted (non-GAAP) Operating Earnings (Loss)	$	0.64			$	193			$	208			$	200			$	136			$	(103	)		$	634
Year Over Year Effects on Adjusted (non-GAAP) Operating Earnings:
Weather	$	(0.04	)		$	—		(b)	$	(38	)		$	—		(b)	$	(6	)	(b)	$	—			$	(44	)
Load		(0.01	)			—		(b)		(4	)			—		(b)		(3	)	(b)		—				(7	)
Distribution and Transmission Rates (4)		0.13				45		(c)		26		(c)		13		(c)		44		(c)		—				128
Other Energy Delivery (5)		0.06				25		(c)		7		(c)		(1	)	(c)		28		(c)		—				59
Operating and Maintenance Expense (6)		0.01				2				(22	)			(5	)			12				21				8
Pension and Non-Pension Postretirement Benefits		—				3				2				(1	)			(4	)			(2	)			(2	)
Depreciation and Amortization Expense (7)		(0.03	)			(12	)			(5	)			4				(17	)			(2	)			(32	)
Interest Expense and Other (8)		(0.05	)			(5	)			(8	)			(11	)			(17	)			(7	)			(48	)
Share Differential (9)		(0.01	)			—				—				—				—				—				—
Total Year Over Year Effects on Adjusted (non-GAAP) Operating Earnings	$	0.06			$	58			$	(42	)		$	(1	)		$	37			$	10			$	62
2023 GAAP Net Income (Loss) from Continuing Operations	$	0.67			$	241			$	166			$	200			$	155			$	(93	)		$	669
Mark-to-Market Impact of Economic Hedging Activities (net of taxes of $0)		—				—				—				—				—				(1	)			(1	)
Change in Environmental Liabilities (net of taxes of $7)		0.02				—				—				—				18				—				18
Change in FERC Audit Liability (net of taxes of $4)		0.01				11				—				—				—				—				11
Separation Costs (net of taxes of $0) (2)		—				—				—				—				—				(1	)			(1	)
2023 Adjusted (non-GAAP) Operating Earnings (Loss)	$	0.70			$	251			$	166			$	199			$	173			$	(93	)		$	696

Note:
Amounts may not sum due to rounding.
Unless otherwise noted, the income tax impact of each reconciling item between GAAP Net Income from Continuing Operations 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, the marginal statutory income tax rates for 2023 and 2022 ranged from 24.0% to 29.0%.
(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, DPL Maryland, and ACE, 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 and energy efficiency formula, 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 costs related to a multi-year ERP system implementation, which are recorded in Operating and maintenance expense.
(2)		Represents costs related to the separation primarily comprised of system-related costs, third-party costs paid to advisors, consultants, lawyers, and other experts assisting in the separation, and employee-related severance costs, which are recorded in Operating and maintenance expense.
(3)		In connection with the separation, Exelon recorded an income tax expense primarily due to the long-term marginal state income tax rate change, the recognition of valuation allowances against the net deferred tax assets positions for certain standalone state filing jurisdictions, and nondeductible transaction costs.
(4)		For ComEd, reflects increased electric distribution revenues due to higher allowed electric distribution ROE driven by an increase in treasury rates and higher rate base. For PECO, reflects increased revenue primarily due to distribution rate increases. For BGE, reflects increased revenue due to distribution rate increases. For PHI, reflects increased revenue primarily due to distribution and transmission rate increases.
(5)		For ComEd, reflects increased electric distribution, transmission, and energy efficiency revenues due to higher fully recoverable costs and also reflects carrying costs related to the CMC regulatory assets. For PHI, includes the regulatory asset amortization of the ACE Purchase Power Agreement termination obligation recorded in the first quarter of 2022, which is fully recoverable.
(6)		Represents Operating and maintenance expense, excluding pension and non-pension postretirement benefits. For PECO, reflects increased credit loss expense. For PHI, includes decreased storm costs. For Corporate, primarily reflects two offsetting items: 1) lower BSC costs that were historically allocated to Generation but are presented as part of continuing operations in Exelon’s results as these costs do not qualify as expenses of the discontinued operations per the accounting rules (YTD Q1 2023 includes no costs compared to one month of costs for the period prior to the separation for YTD Q1 2022) and 2) a decrease in Operating and maintenance expense with an offsetting decrease in other income for costs billed to Constellation for services provided by Exelon through the Transition Services Agreement (TSA).
(7)		Reflects ongoing capital expenditures across all utilities and higher depreciation rates effective January 2023 for ComEd. For BGE, also reflects decreased amortization for regulatory required programs. For PHI, includes the regulatory asset amortization of the ACE Purchase Power Agreement termination obligation recorded in the first quarter of 2022, which is fully recoverable in Other Energy Delivery.
(8)		For Corporate, Other primarily reflects a decrease in other income for costs billed to Constellation for services provided by Exelon through the TSA with an offsetting decrease in Operating and maintenance expense.
(9)		Reflects the impact on earnings per share due to the increase in Exelon's average diluted common shares outstanding as a result of the August 2022 common stock issuance.

ComEd Statistics Three Months Ended March 31, 2023 and 2022
	Electric Deliveries (in GWhs)										Revenue (in millions)
	2023		2022		% Change			Weather - Normal % Change			2023			2022			% Change
Electric Deliveries and Revenues(a)
Residential	6,234		6,751		(7.7	)%		(1.8	)%		$	836		$	857		(2.5	)%
Small commercial & industrial	7,198		7,504		(4.1	)%		(0.8	)%			361			423		(14.7	)%
Large commercial & industrial	6,559		6,746		(2.8	)%		(0.6	)%			84			153		(45.1	)%
Public authorities & electric railroads	227		257		(11.7	)%		(8.8	)%			10			14		(28.6	)%
Other(b)	—		—		n/a			n/a				217			239		(9.2	)%
Total electric revenues(c)	20,218		21,258		(4.9	)%		(1.2	)%			1,508			1,686		(10.6	)%
Other Revenues(d)												159			48		231.3	%
Total Electric Revenues											$	1,667		$	1,734		(3.9	)%
Purchased Power											$	488		$	638		(23.5	)%

							% Change
Heating and Cooling Degree-Days	2023		2022		Normal		From 2022			From Normal
Heating Degree-Days	2,671		3,165		3,053		(15.6	)%		(12.5	)%

Number of Electric Customers	2023		2022
Residential	3,729,983		3,713,397
Small commercial & industrial	391,662		390,994
Large commercial & industrial	1,881		1,882
Public authorities & electric railroads	4,790		4,838
Total	4,128,316		4,111,111

__________
(a)		Reflects 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, 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 $3 million and $6 million for the three months ended March 31, 2023 and 2022, respectively.
(d)		Includes alternative revenue programs and late payment charges.

PECO Statistics Three Months Ended March 31, 2023 and 2022
	Electric and Natural Gas Deliveries										Revenue (in millions)
	2023		2022		% Change			Weather- Normal % Change			2023			2022			% Change
Electric (in GWhs)
Electric Deliveries and Revenues(a)
Residential	3,358		3,758		(10.6	)%		(0.1	)%		$	519		$	487		6.6	%
Small commercial & industrial	1,843		1,937		(4.9	)%		0.4	%			135			111		21.6	%
Large commercial & industrial	3,237		3,332		(2.9	)%		(1.2	)%			65			64		1.6	%
Public authorities & electric railroads	168		182		(7.7	)%		9.3	%			8			8		—	%
Other(b)	—		—		n/a			n/a				68			62		9.7	%
Total electric revenues(c)	8,606		9,209		(6.5	)%		(0.2	)%			795			732		8.6	%
Other Revenues(d)												—			9		(100.0	)%
Total Electric Revenues												795			741		7.3	%
Natural Gas (in mmcfs)
Natural Gas Deliveries and Revenues(e)
Residential	17,190		20,837		(17.5	)%		(2.4	)%			223			218		2.3	%
Small commercial & industrial	8,699		10,546		(17.5	)%		(3.4	)%			75			76		(1.3	)%
Large commercial & industrial	29		10		190.0	%		21.7	%			1			—		n/a
Transportation	7,014		7,639		(8.2	)%		(5.4	)%			8			8		—	%
Other(f)	—		—		n/a			n/a				9			3		200.0	%
Total natural gas revenues(g)	32,932		39,032		(15.6	)%		(3.2	)%			316			305		3.6	%
Other Revenues(d)												1			1		100.0	%
Total Natural Gas Revenues												317			306		3.6	%
Total Electric and Natural Gas Revenues											$	1,112		$	1,047		6.2	%
Purchased Power and Fuel											$	484		$	407		18.9	%

							% Change
Heating and Cooling Degree-Days	2023		2022		Normal		From 2022			From Normal
Heating Degree-Days	1,888		2,228		2,418		(15.3	)%		(21.9	)%
Cooling Degree-Days	—		1		1		(100.0	)%		(100.0	)%

Number of Electric Customers	2023		2022		Number of Natural Gas Customers	2023		2022
Residential	1,529,779		1,521,255		Residential	504,181		499,188
Small commercial & industrial	155,846		155,485		Small commercial & industrial	45,003		44,959
Large commercial & industrial	3,118		3,102		Large commercial & industrial	9		5
Public authorities & electric railroads	10,401		10,342		Transportation	650		664
Total	1,699,144		1,690,184		Total	549,843		544,816

__________
(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, 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 $1 million for the three months ended March 31, 2023 and 2022, 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 $1 million and less than a $1 million for the three months ended March 31, 2023 and 2022, respectively.

BGE Statistics Three Months Ended March 31, 2023 and 2022
	Electric and Natural Gas Deliveries										Revenue (in millions)
	2023		2022		% Change			Weather- Normal % Change			2023			2022				% Change
Electric (in GWhs)
Electric Deliveries and Revenues(a)
Residential	3,106		3,569		(13.0	)%		1.9	%		$	434		$	417			4.1	%
Small commercial & industrial	674		736		(8.4	)%		1.4	%			92			81			13.6	%
Large commercial & industrial	3,047		3,173		(4.0	)%		(0.4	)%			149			131			13.7	%
Public authorities & electric railroads	55		53		3.8	%		2.9	%			7			7			—	%
Other(b)	—		—		n/a			n/a				96			97			(1.0	)%
Total electric revenues(c)	6,882		7,531		(8.6	)%		0.9	%			778			733			6.1	%
Other Revenues(d)												36			3			1,100.0	%
Total Electric Revenues												814			736			10.6	%
Natural Gas (in mmcfs)
Natural Gas Deliveries and Revenues(e)
Residential	16,787		21,118		(20.5	)%		2.7	%			278			282			(1.4	)%
Small commercial & industrial	3,768		4,662		(19.2	)%		(0.9	)%			41			45			(8.9	)%
Large commercial & industrial	13,214		14,743		(10.4	)%		(0.7	)%			70			65			7.7	%
Other(f)	1,608		4,460		(63.9	)%		n/a				19			35			(45.7	)%
Total natural gas revenues(g)	35,377		44,983		(21.4	)%		1.1	%			408			427			(4.4	)%
Other Revenues(d)												35			(9	)		(488.9	)%
Total Natural Gas Revenues												443			418			6.0	%
Total Electric and Natural Gas Revenues											$	1,257		$	1,154			8.9	%
Purchased Power and Fuel											$	492		$	454			8.4	%

							% Change
Heating and Cooling Degree-Days	2023		2022		Normal		From 2022			From Normal
Heating Degree-Days	1,774		2,241		2,381		(20.8	)%		(25.5	)%

Number of Electric Customers	2023		2022		Number of Natural Gas Customers	2023		2022
Residential	1,207,486		1,199,272		Residential	656,583		653,397
Small commercial & industrial	115,658		115,363		Small commercial & industrial	38,260		38,356
Large commercial & industrial	12,911		12,674		Large commercial & industrial	6,261		6,193
Public authorities & electric railroads	266		268
Total	1,336,321		1,327,577		Total	701,104

__________
(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 $2 million for the three months ended March 31, 2023 and 2022.
(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 $1 million and $5 million for the three months ended March 31, 2023 and 2022, respectively.

Pepco Statistics Three Months Ended March 31, 2023 and 2022
	Electric Deliveries (in GWhs)										Revenue (in millions)
	2023		2022		% Change			Weather- Normal % Change			2023			2022				% Change
Electric Deliveries and Revenues(a)
Residential	1,963		2,287		(14.2	)%		(4.4	)%		$	283		$	275			2.9	%
Small commercial & industrial	267		299		(10.7	)%		(5.5	)%			39			38			2.6	%
Large commercial & industrial	3,210		3,249		(1.2	)%		1.7	%			282			253			11.5	%
Public authorities & electric railroads	152		150		1.3	%		2.7	%			8			8			—	%
Other(b)	—		—		n/a			n/a				56			46			21.7	%
Total electric revenues(c)	5,592		5,985		(6.6	)%		(1.0	)%			668			620			7.7	%
Other Revenues(d)												42			(6	)		(800.0	)%
Total Electric Revenues											$	710		$	614			15.6	%
Purchased Power											$	258		$	213			21.1	%

							% Change
Heating and Cooling Degree-Days	2023		2022		Normal		From 2022			From Normal
Heating Degree-Days	1,621		2,013		2,121		(19.5	)%		(23.6	)%
Cooling Degree-Days	2		6		3		(66.7	)%		(33.3	)%

Number of Electric Customers	2023		2022
Residential	859,207		846,258
Small commercial & industrial	54,089		54,509
Large commercial & industrial	22,858		22,620
Public authorities & electric railroads	201		184
Total	936,355		923,571

__________
(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, 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 for both the three months ended March 31, 2023 and 2022.
(d)		Includes alternative revenue programs.

DPL Statistics Three Months Ended March 31, 2023 and 2022
	Electric and Natural Gas Deliveries										Revenue (in millions)
	2023		2022		% Change			Weather - Normal % Change			2023			2022				% Change
Electric (in GWhs)
Electric Deliveries and Revenues(a)
Residential	1,386		1,577		(12.1	)%		(2.4	)%		$	210		$	207			1.4	%
Small commercial & industrial	535		606		(11.7	)%		(8.3	)%			62			56			10.7	%
Large commercial & industrial	957		1,015		(5.7	)%		(4.0	)			33			26			26.9	%
Public authorities & electric railroads	11		12		(8.3	)%		(6.3	)%			4			4			—	%
Other(b)	—		—		n/a			n/a				58			56			3.6	%
Total electric revenues(c)	2,889		3,210		(10.0	)%		(4.0	)%			367			349			5.2	%
Other Revenues(d)												10			(1	)		(1,100.0	)%
Total Electric Revenues												377			348			8.3	%
Natural Gas (in mmcfs)
Natural Gas Deliveries and Revenues(e)
Residential	3,581		4,453		(19.6	)%		(6.6	)%			60			51			17.6	%
Small commercial & industrial	1,652		1,983		(16.7	)%		(1.8	)%			26			21			23.8	%
Large commercial & industrial	414		457		(9.4	)%		(9.5	)%			1			3			(66.7	)%
Transportation	1,900		2,207		(13.9	)%		(6.9	)%			4			4			—	%
Other(f)	—		—		n/a			n/a				6			4			50.0	%
Total natural gas revenues	7,547		9,100		(17.1	)%		(5.8	)%			97			83			16.9	%
Other Revenues(d)												—			—			n/a
Total Natural Gas Revenues												97			83			16.9	%
Total Electric and Natural Gas Revenues											$	474		$	431			10.0	%
Purchased Power and Fuel											$	221		$	189			16.9	%

Electric Service Territory							% Change
Heating and Cooling Degree-Days	2023		2022		Normal		From 2022			From Normal
Heating Degree-Days	1,875		2,264		2,407		(17.2	)%		(22.1	)%
Cooling Degree-Days	—		4		1		(100.0	)%		(100.0	)%

Natural Gas Service Territory							% Change
Heating Degree-Days	2023		2022		Normal		From 2022			From Normal
Heating Degree-Days	1,952		2,355		2,497		(17.1	)%		(21.8	)%

Number of Electric Customers	2023		2022		Number of Natural Gas Customers	2023		2022
Residential	482,979		478,009		Residential	129,791		128,695
Small commercial & industrial	63,794		63,296		Small commercial & industrial	10,158		10,097
Large commercial & industrial	1,236		1,221		Large commercial & industrial	16		17
Public authorities & electric railroads	595		603		Transportation	158		159
Total	548,604		543,129		Total	140,123		138,968

__________
(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, 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 $2 million for the three months ended March 31, 2023 and 2022, 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.

ACE Statistics Three Months Ended March 31, 2023 and 2022
	Electric Deliveries (in GWhs)										Revenue (in millions)
	2023		2022		% Change			Weather - Normal % Change			2023			2022			% Change
Electric Deliveries and Revenues(a)
Residential	760		918		(17.2	)%		(9.4	)%		$	146		$	170		(14.1	)%
Small commercial & industrial	371		339		9.4	%		13.9	%			59			47		25.5	%
Large commercial & industrial	789		703		12.2	%		14.3	%			63			44		43.2	%
Public authorities & electric railroads	13		14		(7.1	)%		0.1	%			5			4		25.0	%
Other(b)	—		—		n/a			n/a				63			81		(22.2	)%
Total electric revenues(c)	1,933		1,974		(2.1	)%		3.1	%			336			346		(2.9	)%
Other Revenues(d)												17			3		466.7	%
Total Electric Revenues											$	353		$	349		1.1	%
Purchased Power											$	148		$	178		(16.9	)%

							% Change
Heating and Cooling Degree-Days	2023		2022		Normal		From 2022			From Normal
Heating Degree-Days	2,008		2,436		2,467		(17.6	)%		(18.6	)%
Cooling Degree-Days	—		2		1		(100.0	)%		(100.0	)%

Number of Electric Customers		2023		2022
Residential		503,260		500,511
Small commercial & industrial		62,230		62,124
Large commercial & industrial		3,030		3,124
Public authorities & electric railroads		726		724
Total		569,246		566,483

__________
(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, 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 for both the three months ended March 31, 2023 and 2022.
(d)		Includes alternative revenue programs.

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