Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil Hydroworld Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries Exelon Reports Third Quarter 2022 Results By: Exelon Corporation via Business Wire November 03, 2022 at 06:50 AM EDT Earnings Release Highlights GAAP Net Income of $0.68 per share and Adjusted (non-GAAP) Operating Earnings of $0.75 per share for the third quarter of 2022 Narrowing guidance range for full year 2022 Adjusted (non-GAAP) Operating Earnings from $2.18-$2.32 per share to $2.21-$2.29 per share Strong utility reliability performance – every utility achieved top quartile in outage duration with ComEd continuing to deliver best-on-record CAIDI performance for the third straight quarter ComEd announces intent to file its first multi-year plan with the Illinois Commerce Commission (ICC) in January 2023 in accordance with the Climate and Equitable Jobs Act (CEJA) Settlements were approved by the Delaware Public Service Commission (DEPSC) and the Pennsylvania Public Utility Commission (PAPUC) in Delmarva Power’s and PECO's gas distribution rate cases in October Exelon Corporation (Nasdaq: EXC) today reported its financial results for the third quarter of 2022. “As Exelon leads the energy transformation, our commitment to affordability, energy equity and a cleaner future is unwavering, as is our responsibility to our investors,” said Exelon CEO Chris Crane. “Exelon continues its strong operational performance, with ComEd and PECO achieving best on record SAIFI performance. We are on track to invest more than $6.9 billion at our electric and gas companies by year end to enhance reliability and resiliency. This ongoing infrastructure investment in our electric and gas companies is delivering solid financial and customer satisfaction results. Our consistent operational excellence, strategic and equitable investments in our communities, and significant regulatory milestones achieved this quarter will help ensure we deliver on our promise to provide safe, reliable, resilient and affordable service to our more than 10 million customers and value to our investors.” “Our third-quarter performance remained strong, with adjusted (non-GAAP) earnings of $0.75 per share which, after adjusting for discontinued operations, is $0.14 ahead of the same period last year driven in part by rate adjustments resulting from our continued investments at the utilities to improve reliability and service for customers,” said Jeanne Jones, Exelon executive vice president and chief financial officer. “Our excellent operational performance and progress on the regulatory front through the third quarter – with more on the horizon – is continued evidence that we are on the right path to achieve our long-term goals. To that end, we have narrowed our 2022 EPS guidance range to $2.21 to $2.29 per share, and reaffirmed our 6-8% earnings per share growth from 2021-2025.” Third Quarter 2022 Exelon's GAAP Net Income from Continuing Operations for the third quarter of 2022 increased to $0.68 per share from $0.47 GAAP Net Income from Continuing Operations per share in the third quarter of 2021. Adjusted (non-GAAP) Operating Earnings for the third quarter of 2022 increased to $0.75 per share from $0.53 per share in the third quarter of 2021. For the reconciliations of GAAP Net Income from Continuing Operations to Adjusted (non-GAAP) Operating Earnings, refer to the tables beginning on page 4. Adjusted (non-GAAP) Operating Earnings in the third quarter of 2022 primarily reflect: Higher utility earnings primarily due to higher electric distribution earnings at ComEd from higher allowed electric distribution ROE due to an increase in treasury rates and higher rate base, rate increases at PECO, BGE, and PHI, and decreases in storm costs at PECO and BGE, partially offset by higher depreciation expense at PECO and PHI. Higher earnings 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 third quarter of 2021 as these costs do not qualify as expenses of the discontinued operations per the accounting rules, partially offset by higher interest expense. Operating Company Results1 ComEd ComEd's third quarter of 2022 GAAP Net Income increased to $291 million from $220 million in the third quarter of 2021. ComEd's Adjusted (non-GAAP) Operating Earnings for the third quarter of 2022 increased to $293 million from $224 million in the third quarter of 2021, primarily due to increases in electric distribution formula rate earnings (reflecting higher allowed electric distribution ROE due to an increase in treasury rates and the impacts of higher rate base). Due to revenue decoupling, ComEd's distribution earnings are not affected by actual weather or customer usage patterns. PECO PECO’s third quarter of 2022 GAAP Net Income increased to $135 million from $111 million in the third quarter of 2021. PECO's Adjusted (non-GAAP) Operating Earnings for the third quarter of 2022 increased to $174 million from $114 million in the third quarter of 2021, primarily due to distribution rate increases and decreases in storm costs, partially offset by an increase in depreciation expense. ___________ 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. BGE BGE’s third quarter of 2022 GAAP Net Income decreased to $33 million from $36 million in the third quarter of 2021. BGE's Adjusted (non-GAAP) Operating Earnings for the third quarter of 2022 increased to $70 million from $40 million in the third quarter of 2021, primarily due to favorable impacts of the multi-year plans and decreases in storm costs. Due to revenue decoupling, BGE's distribution earnings are not affected by actual weather or customer usage patterns. PHI PHI’s third quarter of 2022 GAAP Net Income increased to $289 million from $266 million in the third quarter of 2021. PHI’s Adjusted (non-GAAP) Operating Earnings for the third quarter of 2022 increased to $286 million from $272 million in the third quarter of 2021, primarily due to distribution rate increases, partially offset by an increase in depreciation expense. 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 Third Quarter Highlights PECO Pennsylvania Natural Gas Distribution Rate Case: On October 27, 2022, the PAPUC issued an order approving a $55 million increase in PECO's annual natural gas distribution revenues. The rate increase was resolved through a settlement agreement, which did not specify an approved ROE. The rates are effective on January 1, 2023. DPL Delaware Natural Gas Base Rate Case: On October 12, 2022, the DEPSC approved an increase in DPL’s annual natural gas distribution rates of $8 million, reflecting an ROE of 9.60%. Interim rates went into effect on August 14, 2022, subject to refund. Rates associated with the approved order are effective on November 1, 2022. Financing Activities: On August 4, 2022, Exelon entered into an agreement with certain underwriters in connection with an underwritten public offering of 12.995 million shares of its common stock, no par value. The net proceeds were $563 million before expenses paid. Exelon used the proceeds, together with available cash balances, to repay $575 million in borrowings under a $1.15 billion term loan credit facility. On August 23, 2022, PECO issued $425 million of its First and Refunding Mortgage Bonds, 4.375% Series, due August 15, 2052. PECO used the proceeds to repay outstanding commercial paper obligations and for general corporate purposes. On September 15, 2022, Pepco issued $225 million of its First Mortgage bonds, 3.35% Series, due September 15, 2032. Pepco 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 third 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 $ 0.68 $ 676 $ 291 $ 135 $ 33 $ 289 Asset Retirement Obligation (net of taxes of $2) — (4 ) — — — (4 ) Asset Impairments (net of taxes of $10) 0.04 37 — — 37 — Separation Costs (net of taxes of $1, $1, $0, $0, and $0, respectively) — (3 ) 2 1 1 1 Income Tax-Related Adjustments (entire amount represents tax expense) 0.04 38 — 38 — — 2022 Adjusted (non-GAAP) Operating Earnings $ 0.75 $ 745 $ 293 $ 174 $ 70 $ 286 Adjusted (non-GAAP) Operating Earnings for the third quarter of 2021 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 2021 GAAP Net Income (Loss) from Continuing Operations $ 0.47 $ 457 $ 220 $ 111 $ 36 $ 266 Mark-to-Market Impact of Economic Hedging Activities (net of taxes of $1) — 3 — — — — Cost Management Program (net of taxes of $0) — 4 — 1 1 1 COVID-19 Direct Costs (net of taxes of $0) — 3 — 1 1 1 Asset Retirement Obligation (net of taxes of $1) — 2 — — — 2 Acquisition Related Costs (net of taxes of $2) 0.01 7 — — — — ERP System Implementation Costs (net of taxes of $1) — 4 — — — — Separation Costs (net of taxes of $8, $2, $1, $1, and $1, respectively) 0.02 16 4 2 2 3 Income Tax-Related Adjustments (entire amount represents tax expense) 0.03 26 — — — — 2021 Adjusted (non-GAAP) Operating Earnings $ 0.53 $ 522 $ 224 $ 114 $ 40 $ 272 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 2022 and 2021 ranged from 24.0% to 29.0%. Webcast Information Exelon will discuss third quarter 2022 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 18,000 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 Nov. 3, 2022. 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' 2021 Annual Report on Form 10-K filed with the SEC on February 25, 2022 in Part I, ITEM 1A. Risk Factors; (2) the Registrants' Current Report on Form 8-K filed with the SEC on June 30, 2022 to recast Exelon's consolidated financial statements and certain other financial information originally included in the 2021 Form 10-K in (a) Part II, ITEM 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations and (b) Part II, ITEM 8. Financial Statements and Supplementary Data: Note 17, Commitments and Contingencies; (3) the Registrants' Third Quarter 2022 Quarterly Report on Form 10-Q (to be filed on Nov. 3, 2022) 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 13, Commitments and Contingencies; and (4) 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 1 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 10 PECO 11 BGE 13 Pepco 16 DPL 17 ACE 19 Consolidating Statements of Operations (unaudited) (in millions) ComEd PECO BGE PHI Other (a) Exelon Three Months Ended September 30, 2022 Operating revenues $ 1,378 $ 1,014 $ 870 $ 1,598 $ (15 ) $ 4,845 Operating expenses Purchased power and fuel 121 403 350 610 — 1,484 Operating and maintenance 355 243 235 277 38 1,148 Depreciation and amortization 333 92 148 238 14 825 Taxes other than income taxes 104 60 77 129 7 377 Total operating expenses 913 798 810 1,254 59 3,834 Loss on sales of assets and businesses — — — — — — Operating income (loss) 465 216 60 344 (74 ) 1,011 Other income and (deductions) Interest expense, net (104 ) (45 ) (39 ) (72 ) (105 ) (365 ) Other, net 14 8 5 19 76 122 Total other (deductions) and income (90 ) (37 ) (34 ) (53 ) (29 ) (243 ) Income (loss) from continuing operations before income taxes 375 179 26 291 (103 ) 768 Income taxes 84 44 (7 ) 2 (31 ) 92 Net income (loss) from continuing operations after income taxes 291 135 33 289 (72 ) 676 Net income from discontinued operations after income taxes — — — — — — Net income (loss) 291 135 33 289 (72 ) 676 Net income attributable to noncontrolling interests — — — — — — Net income (loss) attributable to common shareholders $ 291 $ 135 $ 33 $ 289 $ (72 ) $ 676 Three Months Ended September 30, 2021 Operating revenues $ 1,789 $ 818 $ 770 $ 1,470 $ 16 $ 4,863 Operating expenses Purchased power and fuel 703 277 290 540 (1 ) 1,809 Operating and maintenance 330 263 205 278 111 1,187 Depreciation and amortization 304 86 142 210 16 758 Taxes other than income taxes 91 51 72 127 12 353 Total operating expenses 1,428 677 709 1,155 138 4,107 Operating income (loss) 361 141 61 315 (122 ) 756 Other income and (deductions) Interest expense, net (98 ) (40 ) (36 ) (67 ) (83 ) (324 ) Other, net 13 7 7 16 17 60 Total other deductions (85 ) (33 ) (29 ) (51 ) (66 ) (264 ) Income (loss) from continuing operations before income taxes 276 108 32 264 (188 ) 492 Income taxes 56 (3 ) (4 ) (2 ) (12 ) 35 Net income (loss) from continuing operations after income taxes 220 111 36 266 (176 ) 457 Net income from discontinued operations after income taxes — — — — 772 772 Net income 220 111 36 266 596 1,229 Net income attributable to noncontrolling interests — — — — 26 26 Net income attributable to common shareholders $ 220 $ 111 $ 36 $ 266 $ 570 $ 1,203 Change in Net income from continuing operations 2021 to 2022 $ 71 $ 24 $ (3 ) $ 23 $ 104 $ 219 Consolidating Statements of Operations (unaudited) (in millions) ComEd PECO BGE PHI Other (a) Exelon Nine Months Ended September 30, 2022 Operating revenues $ 4,536 $ 2,877 $ 2,810 $ 4,223 $ (34 ) $ 14,412 Operating expenses Purchased power and fuel 1,041 1,093 1,093 1,609 (1 ) 4,835 Operating and maintenance 1,045 705 658 867 161 3,436 Depreciation and amortization 982 277 470 697 46 2,472 Taxes other than income taxes 289 155 225 362 30 1,061 Total operating expenses 3,357 2,230 2,446 3,535 236 11,804 Loss on sales of assets and businesses (2 ) — — — — (2 ) Operating income (loss) 1,177 647 364 688 (270 ) 2,606 Other income and (deductions) Interest expense, net (308 ) (129 ) (110 ) (216 ) (300 ) (1,063 ) Other, net 40 23 16 56 300 435 Total other (deductions) and income (268 ) (106 ) (94 ) (160 ) — (628 ) Income (loss) from continuing operations before income taxes 909 541 270 528 (270 ) 1,978 Income taxes 203 67 3 10 73 356 Net income (loss) from continuing operations after income taxes 706 474 267 518 (343 ) 1,622 Net income from discontinued operations after income taxes — — — — 117 117 Net income (loss) 706 474 267 518 (226 ) 1,739 Net income attributable to noncontrolling interests — — — — 1 1 Net income (loss) attributable to common shareholders $ 706 $ 474 $ 267 $ 518 $ (227 ) $ 1,738 Nine Months Ended September 30, 2021 Operating revenues $ 4,840 $ 2,399 $ 2,426 $ 3,854 $ (5 ) $ 13,514 Operating expenses Purchased power and fuel 1,728 800 840 1,414 (1 ) 4,781 Operating and maintenance 969 706 595 790 280 3,340 Depreciation and amortization 893 259 434 614 53 2,253 Taxes other than income taxes 243 143 211 349 37 983 Total operating expenses 3,833 1,908 2,080 3,167 369 11,357 Gain on sales of assets and businesses — — — — 3 3 Operating income (loss) 1,007 491 346 687 (371 ) 2,160 Other income and (deductions) Interest expense, net (292 ) (119 ) (103 ) (201 ) (252 ) (967 ) Other, net 35 20 23 52 60 190 Total other (deductions) (257 ) (99 ) (80 ) (149 ) (192 ) (777 ) Income (loss) from continuing operations before income taxes 750 392 266 538 (563 ) 1,383 Income taxes 141 9 (24 ) 3 (53 ) 76 Net income (loss) from continuing operations after income taxes 609 383 290 535 (510 ) 1,307 Net income from discontinued operations after income taxes — — — — 134 134 Net income (loss) 609 383 290 535 (376 ) 1,441 Net income attributable to noncontrolling interests — — — — 126 126 Net income (loss) attributable to common shareholders $ 609 $ 383 $ 290 $ 535 $ (502 ) $ 1,315 Change in Net income from continuing operations 2021 to 2022 $ 97 $ 91 $ (23 ) $ (17 ) $ 167 $ 315 __________ (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) September 30, 2022 December 31, 2021 Assets Current assets Cash and cash equivalents $ 446 $ 672 Restricted cash and cash equivalents 744 321 Accounts receivable Customer accounts receivable 2,129 2,189 Customer allowance for credit losses (341 ) (320 ) Customer accounts receivable, net 1,788 1,869 Other accounts receivable 1,726 1,068 Other allowance for credit losses (84 ) (72 ) Other accounts receivable, net 1,642 996 Inventories, net Fossil fuel 235 105 Materials and supplies 522 476 Regulatory assets 1,300 1,296 Other 378 387 Current assets of discontinued operations — 7,835 Total current assets 7,055 13,957 Property, plant, and equipment, net 67,572 64,558 Deferred debits and other assets Regulatory assets 8,224 8,224 Goodwill 6,630 6,630 Receivable related to Regulatory Agreement Units 2,658 — Investments 230 250 Other 1,086 885 Property, plant, and equipment, deferred debits, and other assets of discontinued operations — 38,509 Total deferred debits and other assets 18,828 54,498 Total assets $ 93,455 $ 133,013 Liabilities and shareholders’ equity Current liabilities Short-term borrowings $ 1,690 $ 1,248 Long-term debt due within one year 1,300 2,153 Accounts payable 2,693 2,379 Accrued expenses 1,213 1,137 Payables to affiliates 5 5 Regulatory liabilities 493 376 Mark-to-market derivative liabilities — 18 Unamortized energy contract liabilities 10 89 Other 1,313 766 Current liabilities of discontinued operations — 7,940 Total current liabilities 8,717 16,111 Long-term debt 35,283 30,749 Long-term debt to financing trusts 390 390 Deferred credits and other liabilities Deferred income taxes and unamortized investment tax credits 11,113 10,611 Regulatory liabilities 8,844 9,628 Pension obligations 1,366 2,051 Non-pension postretirement benefit obligations 796 811 Asset retirement obligations 266 271 Mark-to-market derivative liabilities 67 201 Unamortized energy contract liabilities 37 146 Other 1,994 1,573 Long-term debt, deferred credits, and other liabilities of discontinued operations — 25,676 Total deferred credits and other liabilities 24,483 50,968 Total liabilities 68,873 98,218 Commitments and contingencies Shareholders’ equity Common stock 20,895 20,324 Treasury stock, at cost (123 ) (123 ) Retained earnings 4,502 16,942 Accumulated other comprehensive loss, net (692 ) (2,750 ) Total shareholders’ equity 24,582 34,393 Noncontrolling interests — 402 Total equity 24,582 34,795 Total liabilities and shareholders’ equity $ 93,455 $ 133,013 Exelon Consolidated Statements of Cash Flows (unaudited) (in millions) Nine Months Ended September 30, 2022 2021 Cash flows from operating activities Net income $ 1,739 $ 1,441 Adjustments to reconcile net income to net cash flows provided by operating activities: Depreciation, amortization, and accretion, including nuclear fuel and energy contract amortization 2,679 6,204 Asset impairments 46 541 Gain on sales of assets and businesses (8 ) (147 ) Deferred income taxes and amortization of investment tax credits 256 (45 ) Net fair value changes related to derivatives (59 ) (1,244 ) Net realized and unrealized losses (gains) on NDT funds 205 (383 ) Net unrealized losses on equity investments 16 83 Other non-cash operating activities 265 (293 ) Changes in assets and liabilities: Accounts receivable (1,049 ) (254 ) Inventories (121 ) (101 ) Accounts payable and accrued expenses 823 354 Option premiums paid, net (39 ) (186 ) Collateral received, net 1,456 2,111 Income taxes 3 250 Regulatory assets and liabilities, net (689 ) (367 ) Pension and non-pension postretirement benefit contributions (596 ) (602 ) Other assets and liabilities (786 ) (3,221 ) Net cash flows provided by operating activities 4,141 4,141 Cash flows from investing activities Capital expenditures (5,179 ) (5,970 ) Proceeds from NDT fund sales 488 5,766 Investment in NDT funds (516 ) (5,900 ) Collection of DPP 169 3,052 Proceeds from sales of assets and businesses 16 801 Other investing activities 36 40 Net cash flows used in investing activities (4,986 ) (2,211 ) Cash flows from financing activities Changes in short-term borrowings (335 ) (744 ) Proceeds from short-term borrowings with maturities greater than 90 days 1,150 1,380 Repayments on short-term borrowings with maturities greater than 90 days (925 ) — Issuance of long-term debt 5,801 3,406 Retirement of long-term debt (2,067 ) (1,618 ) Issuance of common stock 563 — Dividends paid on common stock (999 ) (1,121 ) Acquisition of CENG noncontrolling interest — (885 ) Proceeds from employee stock plans 26 63 Transfer of cash, restricted cash, and cash equivalents to Constellation (2,594 ) — Other financing activities (121 ) (93 ) Net cash flows provided by financing activities 499 388 (Decrease) increase in cash, restricted cash, and cash equivalents (346 ) 2,318 Cash, restricted cash, and cash equivalents at beginning of period 1,619 1,166 Cash, restricted cash, and cash equivalents at end of period $ 1,273 $ 3,484 Exelon Reconciliation of GAAP Net Income (Loss) from Continuing Operations to Adjusted (non-GAAP) Operating Earnings and Analysis of Earnings Three Months Ended September 30, 2022 and 2021 (unaudited) (in millions, except per share data) Exelon Earnings per Diluted Share ComEd PECO BGE PHI Other (a) Exelon 2021 GAAP Net Income (Loss) from Continuing Operations $ 0.47 $ 220 $ 111 $ 36 $ 266 $ (176 ) $ 457 Mark-to-Market Impact of Economic Hedging Activities (net of taxes of $1) — — — — — 3 3 Cost Management Program (net of taxes of $0) — — 1 1 1 1 4 COVID-19 Direct Costs (net of taxes of $0) (1) — — 1 1 1 — 3 Asset Retirement Obligation (net of taxes of $1) — — — — 2 — 2 Acquisition Related Costs (net of taxes of $2) (2) 0.01 — — — — 7 7 ERP System Implementation Costs (net of taxes of $1) (3) — — — — — 4 4 Separation Costs (net of taxes of $2, $1, $1, $1, $3 and $8, respectively) (4) 0.02 4 2 2 3 5 16 Income Tax-Related Adjustments (entire amount represents tax (expense) (5) 0.03 — — — — 26 26 2021 Adjusted (non-GAAP) Operating Earnings (Loss) $ 0.53 $ 224 $ 114 $ 40 $ 272 $ (128 ) $ 522 Year Over Year Effects on Adjusted (non-GAAP) Operating Earnings: Weather $ 0.02 $ — (b) $ 21 $ — (b) $ 1 (b) $ — $ 22 Load (0.02 ) — (b) (17 ) — (b) (1 ) (b) — (18 ) Distribution and Transmission Rates (7) 0.12 39 (c) 35 (c) 26 (c) 21 (c) — 121 Other Energy Delivery (8) 0.12 83 (c) 14 (c) 2 (c) 18 (c) — 117 Operating and Maintenance Expense (9) 0.01 (27 ) 10 8 (7 ) 23 7 Pension and Non-Pension Postretirement Benefits 0.01 6 2 2 (1 ) 5 14 Depreciation and Amortization Expense (10) (0.05 ) (22 ) (5 ) (4 ) (20 ) 2 (49 ) Other (11) 0.01 (10 ) — (4 ) 3 20 9 Total Year Over Year Effects on Adjusted (non-GAAP) Operating Earnings $ 0.22 $ 69 $ 60 $ 30 $ 14 $ 50 $ 223 2022 GAAP Net Income (Loss) from Continuing Operations $ 0.68 $ 291 $ 135 $ 33 $ 289 $ (72 ) $ 676 Asset Retirement Obligation (net of taxes of $2) — — — — (4 ) — (4 ) Asset Impairments (net of taxes of $10) (6) 0.04 — — 37 — — 37 Separation Costs (net of taxes of $1, $0, $0, $0, $2, and $1, respectively) (4) — 2 1 1 1 (8 ) (3 ) Income Tax-Related Adjustments (entire amount represents tax expense) (5) 0.04 — 38 — — — 38 2022 Adjusted (non-GAAP) Operating Earnings (Loss) $ 0.75 $ 293 $ 174 $ 70 $ 286 $ (78 ) $ 745 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 2022 and 2021 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) Represents direct costs related to COVID-19 consisting primarily of costs to acquire personal protective equipment, costs for cleaning supplies and services, and costs to hire healthcare professionals to monitor the health of employees, which are recorded in Operating and maintenance expense. (2) Reflects certain BSC costs related to the acquisition of Electricite de France SA's (EDF's) interest in CENG, which was completed in the third quarter of 2021, that were historically allocated to Constellation Energy Generation, LLC (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. (3) Reflects costs related to a multi-year Enterprise Resource Program (ERP) system implementation, which are recorded in Operating and maintenance expense. (4) 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. (5) In 2022, for PECO, reflects an adjustment to exclude one-time non-cash impacts associated with the remeasurement of deferred income taxes as a result of the reduction in Pennsylvania corporate income tax rate. In 2021, for Corporate, primarily reflects the adjustment to deferred income taxes due to changes in forecasted apportionment. (6) Reflects costs related to the impairment of an office building at BGE, which are recorded in Operating and maintenance expenses. (7) 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 rate increases. (8) For ComEd, reflects increased electric distribution, transmission, and energy efficiency revenues due to higher fully recoverable costs. (9) Represents Operating and maintenance expense, excluding pension and non-pension postretirement benefits. For ComEd, primarily reflects higher contracting costs. For PECO, primarily reflects decreased storm costs, partially offset by increases in various expenses. For BGE, primarily reflects 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 and 2) an increase in Operating and maintenance expense with an offsetting increase in other income for costs billed to Constellation for services provided by Exelon through the Transition Services Agreement (TSA). (10) Reflects ongoing capital expenditures across all utilities. For ComEd, also reflects increased amortization of deferred energy efficiency costs. (11) For ComEd, includes increased charges related to the Energy Transition Assistance Charge rider which are fully recoverable in Other Energy Delivery. For Corporate, primarily reflects an increase in other income for costs billed to Constellation for services provided by Exelon through the TSA with an offsetting increase in Operating and maintenance expense, partially offset by an increase in interest expense. Exelon Reconciliation of GAAP Net Income (Loss) from Continuing Operations to Adjusted (non-GAAP) Operating Earnings and Analysis of Earnings Nine Months Ended September 30, 2022 and 2021 (unaudited) (in millions, except per share data) Exelon Earnings per Diluted Share ComEd PECO BGE PHI Other (a) Exelon 2021 GAAP Net Income (Loss) from Continuing Operations $ 1.33 $ 609 $ 383 $ 290 $ 535 $ (510 ) $ 1,307 Mark-to-Market Impact of Economic Hedging Activities (net of taxes of $2) 0.01 — — — — 6 6 Cost Management Program (net of taxes of $0) 0.01 — 1 1 1 2 5 COVID-19 Direct Costs (net of taxes of $1, $1, $1 and $3, respectively) (1) 0.01 — 3 2 2 — 7 Asset Retirement Obligation (net of taxes of $1) — — — — 2 — 2 Acquisition Related Costs (net of taxes of $5) (2) 0.02 — — — — 15 15 ERP System Implementation Costs (net of taxes of $0, $0, $0, $2 and $2, respectively) (3) 0.01 — 1 1 1 7 10 Separation Costs (net of taxes of $3, $1, $1, $2, $6 and $13, respectively) (4) 0.03 7 3 4 5 10 29 Income Tax-Related Adjustments (entire amount represents tax expense) (5) 0.02 — — — — 24 24 2021 Adjusted (non-GAAP) Operating Earnings (Loss) $ 1.43 $ 617 $ 391 $ 298 $ 546 $ (447 ) $ 1,405 Year Over Year Effects on Adjusted (non-GAAP) Operating Earnings: Weather $ 0.01 $ — (b) $ 14 $ — (b) $ (2 ) (b) $ — $ 12 Load (0.01 ) — (b) (6 ) — (b) (4 ) (b) — (10 ) Distribution and Transmission Rates (7) 0.30 82 (c) 101 (c) 46 (c) 68 (c) — 297 Other Energy Delivery (8) 0.32 192 (c) 31 (c) 31 (c) 59 (c) — 313 Operating and Maintenance Expense (9) (0.13 ) (68 ) (7 ) (23 ) (64 ) 31 (131 ) Pension and Non-Pension Postretirement Benefits 0.04 16 5 7 1 9 38 Depreciation and Amortization Expense (10) (0.16 ) (64 ) (14 ) (26 ) (60 ) 3 (161 ) Other (11) 0.05 (60 ) 2 (25 ) (21 ) 152 48 Share Differential (12) (0.01 ) — — — — — — Total Year Over Year Effects on Adjusted (non-GAAP) Operating Earnings $ 0.41 $ 98 $ 126 $ 10 $ (23 ) $ 195 $ 406 2022 GAAP Net Income (Loss) from Continuing Operations $ 1.65 $ 706 $ 474 $ 267 $ 518 $ (343 ) $ 1,622 Asset Retirement Obligation (net of taxes of $2) — — — — (4 ) — (4 ) ERP System Implementation Costs (net of taxes of $0) (3) — — — — — 1 1 Asset Impairments (net of taxes of $10) (6) 0.04 — — 37 — — 37 Separation Costs (net of taxes of $4, $2, $2, $3, $0, and $10, respectively) (4) 0.03 9 4 4 7 1 25 Income Tax-Related Adjustments (entire amount represents tax expense) (5) 0.13 — 38 — 3 89 130 2022 Adjusted (non-GAAP) Operating Earnings (Loss) $ 1.84 $ 715 $ 517 $ 308 $ 523 $ (252 ) $ 1,811 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 2022 and 2021 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) Represents direct costs related to COVID-19 consisting primarily of costs to acquire personal protective equipment, costs for cleaning supplies and services, and costs to hire healthcare professionals to monitor the health of employees, which are recorded in Operating and maintenance expense. (2) Reflects certain BSC costs related to the acquisition of Electricite de France SA's (EDF's) interest in CENG, which was completed in the third quarter of 2021, that were historically allocated to Constellation Energy Generation, LLC (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. (3) Reflects costs related to a multi-year Enterprise Resource Program (ERP) system implementation, which are recorded in Operating and maintenance expense. (4) 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. (5) In 2022, for PECO, reflects an adjustment to exclude one-time non-cash impacts associated with the remeasurement of deferred income taxes as a result of the reduction in Pennsylvania corporate income tax rate. In 2022, for Corporate, 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 partially offset by a one-time impact associated with a state tax benefit. In 2021, for Corporate, primarily reflects the adjustment to deferred income taxes due to changes in forecasted apportionment. (6) Reflects costs related to the impairment of an office building at BGE, which are recorded in Operating and maintenance expenses. (7) 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 and transmission rate increases. For PHI, reflects increased revenue primarily due to distribution rate increases. (8) For ComEd, reflects increased electric distribution, transmission, and energy efficiency revenues due to higher fully recoverable costs. For PHI, includes the regulatory asset amortization of the ACE Power Purchase Agreement termination obligation recorded in the first quarter of 2022, which is fully recoverable. (9) Represents Operating and maintenance expense, excluding pension and non-pension postretirement benefits. For ComEd, partially reflects the voluntary customer refund related to the ICC investigation of matters identified in the Deferred Prosecution Agreement and higher contracting costs. For PECO, reflects increases in various expenses, mostly offset by decreased storm costs. For BGE, reflects higher credit loss expense and decreased storm costs. For PHI, includes increased storm costs, increased credit loss expense, and higher contracting costs partially due to timing of maintenance projects. 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 Q3 2022 includes one month of costs for the period prior to the separation compared to nine months of costs included in YTD Q3 2021) and 2) an increase in Operating and maintenance expense with an offsetting increase in other income for costs billed to Constellation for services provided by Exelon through the Transition Services Agreement (TSA). (10) Reflects ongoing capital expenditures across all utilities. For ComEd, also reflects increased amortization of deferred energy efficiency costs. For PHI, includes the regulatory asset amortization of the ACE Power Purchase Agreement termination obligation recorded in the first quarter of 2022, which is fully recoverable in Other Energy Delivery. (11) For ComEd, includes increased charges related to the Energy Transition Assistance Charge rider which are fully recoverable in Other Energy Delivery. For PECO, includes an increase in tax repairs deduction. For PHI, primarily reflects increased interest expense and the timing of tax expense driven by the timing of excess deferred tax amortization, which will reverse by the end of the year. For Corporate, primarily reflects an increase in other income for costs billed to Constellation for services provided by Exelon through the TSA with an offsetting increase in Operating and maintenance expense, partially offset by an increase in interest expense. (12) 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 September 30, 2022 and 2021 Electric Deliveries (in GWhs) Revenue (in millions) 2022 2021 % Change Weather - Normal % Change 2022 2021 % Change Electric Deliveries and Revenues(a) Residential 8,467 8,986 (5.8 )% 0.1 % $ 935 $ 978 (4.4 )% Small commercial & industrial 8,003 8,243 (2.9 )% (1.4 )% 217 433 (49.9 )% Large commercial & industrial 6,973 7,109 (1.9 )% (0.8 )% (117 ) 148 (179.1 )% Public authorities & electric railroads 216 228 (5.3 )% (4.8 )% 3 11 (72.7 )% Other(b) — — n/a n/a 246 245 0.4 % Total electric revenues(c) 23,659 24,566 (3.7 )% (0.7 )% 1,284 1,815 (29.3 )% Other Revenues(d) 94 (26 ) (461.5 )% Total Electric Revenues $ 1,378 $ 1,789 (23.0 )% Purchased Power $ 121 $ 703 (82.8 )% % Change Heating and Cooling Degree-Days 2022 2021 Normal From 2021 From Normal Heating Degree-Days 75 16 79 368.8 % (5.1 )% Cooling Degree-Days 778 866 722 (10.2 )% 7.8 % Nine Months Ended September 30, 2022 and 2021 Electric Deliveries (in GWhs) Revenue (in millions) 2022 2021 % Change Weather - Normal % Change 2022 2021 % Change Electric Deliveries and Revenues(a) Residential 21,835 22,228 (1.8 )% (0.4 )% $ 2,610 $ 2,479 5.3 % Small commercial & industrial 22,705 22,610 0.4 % 0.6 % 953 1,176 (19.0 )% Large commercial & industrial 20,361 19,956 2.0 % 2.3 % 48 420 (88.6 )% Public authorities & electric railroads 659 698 (5.6 )% (5.5 )% 22 33 (33.3 )% Other(b) — — n/a n/a 718 676 6.2 % Total electric revenues(c) 65,560 65,492 0.1 % 0.7 % 4,351 4,784 (9.1 )% Other Revenues(d) 185 56 230.4 % Total Electric Revenues $ 4,536 $ 4,840 (6.3 )% Purchased Power $ 1,041 $ 1,728 (39.8 )% % Change Heating and Cooling Degree-Days 2022 2021 Normal From 2021 From Normal Heating Degree-Days 3,953 3,632 3,861 8.8 % 2.4 % Cooling Degree-Days 1,155 1,257 988 (8.1 )% 16.9 % Number of Electric Customers 2022 2021 Residential 3,711,894 3,699,376 Small commercial & industrial 390,303 389,348 Large commercial & industrial 1,892 1,865 Public authorities & electric railroads 4,854 4,853 Total 4,108,943 4,095,442 __________ (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 $6 million and $9 million for the three months ended September 30, 2022 and 2021, respectively, and $14 million and $19 million for the nine months ended September 30, 2022 and 2021, respectively. (d) Includes alternative revenue programs and late payment charges. PECO Statistics Three Months Ended September 30, 2022 and 2021 Electric and Natural Gas Deliveries Revenue (in millions) 2022 2021 % Change Weather- Normal % Change 2022 2021 % Change Electric (in GWhs) Electric Deliveries and Revenues(a) Residential 4,386 4,318 1.6 % (5.6 )% $ 620 $ 509 21.8 % Small commercial & industrial 2,139 2,157 (0.8 )% (3.3 )% 149 113 31.9 % Large commercial & industrial 3,943 3,880 1.6 % 0.1 % 93 67 38.8 % Public authorities & electric railroads 172 155 11.0 % 10.5 % 8 7 14.3 % Other(b) — — n/a n/a 71 61 16.4 % Total electric revenues(c) 10,640 10,510 1.2 % (2.8 )% 941 757 24.3 % Other Revenues(d) — 5 (100.0 )% Total Electric Revenues 941 762 23.5 % Natural Gas (in mmcfs) Natural Gas Deliveries and Revenues(e) Residential 2,197 2,244 (2.1 )% 0.3 % 46 36 27.8 % Small commercial & industrial 2,054 1,926 6.6 % 9.5 % 20 13 53.8 % Large commercial & industrial 6 4 50.0 % 19.6 % — — n/a Transportation 5,162 5,356 (3.6 )% (9.3 )% 5 5 — % Other(f) — — n/a n/a 2 2 — % Total natural gas revenues(g) 9,419 9,530 (1.2 )% (3.1 )% 73 56 30.4 % Other Revenues(d) — — 100.0 % Total Natural Gas Revenues 73 56 30.4 % Total Electric and Natural Gas Revenues $ 1,014 $ 818 24.0 % Purchased Power and Fuel $ 403 $ 277 45.5 % % Change Heating and Cooling Degree-Days 2022 2021 Normal From 2021 From Normal Heating Degree-Days 19 4 24 375.0 % (20.8 )% Cooling Degree-Days 1,290 1,094 1,021 17.9 % 26.3 % Nine Months Ended September 30, 2022 and 2021 Electric and Natural Gas Deliveries Revenue (in millions) 2022 2021 % Change Weather- Normal % Change 2022 2021 % Change Electric (in GWhs) Electric Deliveries and Revenues(a) Residential 11,204 11,201 — % (2.0 )% $ 1,538 $ 1,325 16.1 % Small commercial & industrial 5,889 5,796 1.6 % 0.8 % 386 312 23.7 % Large commercial & industrial 10,691 10,627 0.6 % — % 229 183 25.1 % Public authorities & electric railroads 489 425 15.1 % 15.1 % 23 24 (4.2 )% Other(b) — — n/a n/a 202 167 21.0 % Total electric revenues(c) 28,273 28,049 0.8 % (0.4 )% 2,378 2,011 18.2 % Other Revenues(d) 12 22 (45.5 )% Total Electric Revenues 2,390 2,033 17.6 % Natural Gas (in mmcfs) Natural Gas Deliveries and Revenues(e) Residential 28,240 27,945 1.1 % 4.1 % 335 251 33.5 % Small commercial & industrial 16,238 15,217 6.7 % 8.5 % 125 94 33.0 % Large commercial & industrial 20 13 53.8 % 14.0 % — — n/a Transportation 18,508 18,474 0.2 % (0.7 )% 19 17 11.8 % Other(f) — — n/a n/a 7 4 75.0 % Total natural gas revenues(g) 63,006 61,649 2.2 % 3.8 % 486 366 32.8 % Other Revenues(d) 1 — 100.0 % Total Natural Gas Revenues 487 366 33.1 % Total Electric and Natural Gas Revenues $ 2,877 $ 2,399 19.9 % Purchased Power and Fuel $ 1,093 $ 800 36.6 % % Change Heating and Cooling Degree-Days 2022 2021 Normal From 2021 From Normal Heating Degree-Days 2,632 2,710 2,864 (2.9 )% (8.1 )% Cooling Degree-Days 1,725 1,517 1,413 13.7 % 22.1 % Number of Electric Customers 2022 2021 Number of Natural Gas Customers 2022 2021 Residential 1,523,269 1,514,836 Residential 500,934 495,752 Small commercial & industrial 155,516 155,006 Small commercial & industrial 46,074 44,435 Large commercial & industrial 3,120 3,108 Large commercial & industrial 9 6 Public authorities & electric railroads 10,393 10,271 Transportation 656 670 Total 1,692,298 1,683,221 Total 547,673 540,863 __________ (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 $3 million and $2 million for the three months ended September 30, 2022 and 2021, and $5 million and $5 million for the nine months ended September 30, 2022 and 2021, respectively. (d) Includes alternative revenue programs and late payment charges. (e) Reflects delivery volumes and revenues from customers purchasing natural gas directly from PECO and customers purchasing natural gas from a competitive natural gas supplier as all customers are assessed distribution charges. For customers purchasing natural gas from PECO, revenue also reflects the cost of natural gas. (f) Includes revenues primarily from off-system sales. (g) Includes operating revenues from affiliates totaling less than $1 million for both the three months ended September 30, 2022 and 2021, respectively, and $1 million and $1 million for the nine months ended September 30, 2022 and 2021, respectively. BGE Statistics Three Months Ended September 30, 2022 and 2021 Electric and Natural Gas Deliveries Revenue (in millions) 2022 2021 % Change Weather- Normal % Change 2022 2021 % Change Electric (in GWhs) Electric Deliveries and Revenues(a) Residential 3,664 3,736 (1.9 )% — % $ 406 $ 383 6.0 % Small commercial & industrial 754 779 (3.2 )% — % 88 73 20.5 % Large commercial & industrial 3,703 3,753 (1.3 )% (0.6 )% 158 128 23.4 % Public authorities & electric railroads 46 52 (11.5 )% (9.1 )% 7 7 — % Other(b) — — n/a n/a 101 104 (2.9 )% Total electric revenues(c) 8,167 8,320 (1.8 )% (0.4 )% 760 695 9.4 % Other Revenues(d) (3 ) (18 ) (83.3 )% Total Electric Revenues 757 677 11.8 % Natural Gas (in mmcfs) Natural Gas Deliveries and Revenues(e) Residential 2,321 2,359 (1.6 )% (2.4 )% 70 57 22.8 % Small commercial & industrial 844 902 (6.4 )% (6.5 )% 13 10 30.0 % Large commercial & industrial 7,943 7,296 8.9 % 10.3 % 28 22 27.3 % Other(f) 82 612 (86.6 )% n/a 2 6 (66.7 )% Total natural gas revenues(g) 11,190 11,169 0.2 % 5.9 % 113 95 18.9 % Other Revenues(d) — (2 ) (100.0 )% Total Natural Gas Revenues 113 93 21.5 % Total Electric and Natural Gas Revenues $ 870 $ 770 13.0 % Purchased Power and Fuel $ 350 $ 290 20.7 % % Change Heating and Cooling Degree-Days 2022 2021 Normal From 2021 From Normal Heating Degree-Days 50 42 71 19.0 % (29.6 )% Cooling Degree-Days 711 739 613 (3.8 )% 16.0 % Nine Months Ended September 30, 2022 and 2021 Electric and Natural Gas Deliveries Revenue (in millions) 2022 2021 % Change Weather- Normal % Change 2022 2021 % Change Electric (in GWhs) Electric Deliveries and Revenues(a) Residential 9,985 10,046 (0.6 )% (0.5 )% $ 1,158 $ 1,044 10.9 % Small commercial & industrial 2,126 2,128 (0.1 )% 0.3 % 239 202 18.3 % Large commercial & industrial 10,090 10,054 0.4 % 0.8 % 418 342 22.2 % Public authorities & electric railroads 152 149 2.0 % 2.9 % 20 20 — % Other(b) — — n/a n/a 297 269 10.4 % Total electric revenues(c) 22,353 22,377 (0.1 )% 0.2 % 2,132 1,877 13.6 % Other Revenues(d) (10 ) (11 ) (9.1 )% Total Electric Revenues 2,122 1,866 13.7 % Natural Gas (in mmcfs) Natural Gas Deliveries and Revenues(e) Residential 28,382 25,758 10.2 % 7.0 % 448 354 26.6 % Small commercial & industrial 6,895 6,226 10.7 % 6.9 % 77 59 30.5 % Large commercial & industrial 31,854 29,559 7.8 % 7.5 % 128 103 24.3 % Other(f) 5,472 9,125 (40.0 )% n/a 50 41 22.0 % Total natural gas revenues(g) 72,603 70,668 2.7 % 7.2 % 703 557 26.2 % Other Revenues(d) (15 ) 3 (600.0 )% Total Natural Gas Revenues 688 560 22.9 % Total Electric and Natural Gas Revenues $ 2,810 $ 2,426 15.8 % Purchased Power and Fuel $ 1,093 $ 840 30.1 % % Change Heating and Cooling Degree-Days 2022 2021 Normal From 2021 From Normal Heating Degree-Days 2,737 2,708 2,958 1.1 % (7.5 )% Cooling Degree-Days 990 1,039 872 (4.7 )% 13.5 % Number of Electric Customers 2022 2021 Number of Natural Gas Customers 2022 2021 Residential 1,200,786 1,194,254 Residential 653,413 649,745 Small commercial & industrial 115,778 114,814 Small commercial & industrial 38,128 38,216 Large commercial & industrial 12,774 12,584 Large commercial & industrial 6,222 6,167 Public authorities & electric railroads 266 268 Total 1,329,604 1,321,920 Total 697,763 694,128 __________ (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 and $4 million for the three months ended September 30, 2022 and 2021, respectively, and $5 million and $10 million for the nine months ended September 30, 2022 and 2021, respectively. (d) Includes alternative revenue programs and late payment charges. (e) Reflects delivery volumes and revenues from customers purchasing natural gas directly from BGE and customers purchasing natural gas from a competitive natural gas supplier as all customers are assessed distribution charges. For customers purchasing natural gas from BGE, revenue also reflects the cost of natural gas. (f) Includes revenues primarily from off-system sales. (g) Includes operating revenues from affiliates totaling $1 million and $3 million for the three months ended September 30, 2022 and 2021, respectively, and $8 million and $10 million for the nine months ended September 30, 2022 and 2021, respectively. Pepco Statistics Three Months Ended September 30, 2022 and 2021 Electric Deliveries (in GWhs) Revenue (in millions) 2022 2021 % Change Weather- Normal % Change 2022 2021 % Change Electric Deliveries and Revenues(a) Residential 2,384 2,457 (3.0 )% (2.4 )% $ 318 $ 309 2.9 % Small commercial & industrial 299 306 (2.3 )% (1.9 )% 44 36 22.2 % Large commercial & industrial 3,866 3,862 0.1 % 0.4 % 303 244 24.2 % Public authorities & electric railroads 176 165 6.7 % 6.5 % 9 8 12.5 % Other(b) — — n/a n/a 57 53 7.5 % Total electric revenues(c) 6,725 6,790 (1.0 )% (0.5 )% 731 650 12.5 % Other Revenues(d) (7 ) 10 (170.0 )% Total Electric Revenues $ 724 $ 660 9.7 % Purchased Power $ 230 $ 172 33.7 % % Change Heating and Cooling Degree-Days 2022 2021 Normal From 2021 From Normal Heating Degree-Days 19 — 7 n/a 171.4 % Cooling Degree-Days 1,218 1,221 1,185 (0.2 )% 2.8 % Nine Months Ended September 30, 2022 and 2021 Electric Deliveries (in GWhs) Revenue (in millions) 2022 2021 % Change Weather- Normal % Change 2022 2021 % Change Electric Deliveries and Revenues(a) Residential 6,390 6,495 (1.6 )% (1.5 )% $ 826 $ 785 5.2 % Small commercial & industrial 855 884 (3.3 )% (3.4 )% 117 101 15.8 % Large commercial & industrial 10,499 10,091 4.0 % 3.9 % 806 616 30.8 % Public authorities & electric railroads 451 506 (10.9 )% (10.8 )% 25 24 4.2 % Other(b) — — n/a n/a 157 154 1.9 % Total electric revenues(c) 18,195 17,976 1.2 % 1.2 % 1,931 1,680 14.9 % Other Revenues(d) (12 ) 56 (121.4 )% Total Electric Revenues $ 1,919 $ 1,736 10.5 % Purchased Power $ 605 $ 471 28.5 % % Change Heating and Cooling Degree-Days 2022 2021 Normal From 2021 From Normal Heating Degree-Days 2,357 2,343 2,429 0.6 % (3.0 )% Cooling Degree-Days 1,721 1,724 1,696 (0.2 )% 1.5 % Number of Electric Customers 2022 2021 Residential 853,873 839,574 Small commercial & industrial 54,423 53,849 Large commercial & industrial 22,789 22,586 Public authorities & electric railroads 196 179 Total 931,281 916,188 __________ (a) Reflects revenues from customers purchasing electricity directly from Pepco and customers purchasing electricity from a competitive electric generation supplier as all customers are assessed distribution charges. For customers purchasing electricity from Pepco, 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 and $2 million for the three months ended September 30, 2022 and 2021, respectively, and $4 million and $4 million for the nine months ended September 30, 2022 and 2021, respectively. (d) Includes alternative revenue programs and late payment charge revenues. DPL Statistics Three Months Ended September 30, 2022 and 2021 Electric and Natural Gas Deliveries Revenue (in millions) 2022 2021 % Change Weather - Normal % Change 2022 2021 % Change Electric (in GWhs) Electric Deliveries and Revenues(a) Residential 1,574 1,594 (1.3 )% (2.7 )% $ 207 $ 198 4.5 % Small commercial & industrial 667 671 (0.6 )% (1.2 )% 65 53 22.6 % Large commercial & industrial 1,167 1,160 0.6 % 0.2 % 43 27 59.3 % Public authorities & electric railroads 10 10 — % (1.6 )% 4 4 — % Other(b) — — n/a n/a 55 56 (1.8 )% Total electric revenues(c) 3,418 3,435 (0.5 )% (1.4 )% 374 338 10.7 % Other Revenues(d) — (1 ) (100.0 )% Total Electric Revenues 374 337 11.0 % Natural Gas (in mmcfs) Natural Gas Deliveries and Revenues(e) Residential 374 399 (6.3 )% (15.2 )% 10 10 — % Small commercial & industrial 331 352 (6.0 )% (10.2 )% 6 5 20.0 % Large commercial & industrial 397 395 0.5 % 0.6 % 3 2 50.0 % Transportation 1,284 1,303 (1.5 )% (2.1 )% 3 3 — % Other(g) — — n/a n/a 16 3 433.3 % Total natural gas revenues 2,386 2,449 (2.6 )% (5.2 )% 38 23 65.2 % Other Revenues(f) — — n/a Total Natural Gas Revenues 38 23 65.2 % Total Electric and Natural Gas Revenues $ 412 $ 360 14.4 % Purchased Power and Fuel $ 183 $ 138 32.6 % Electric Service Territory % Change Heating and Cooling Degree-Days 2022 2021 Normal From 2021 From Normal Heating Degree-Days 31 9 24 244.4 % 29.2 % Cooling Degree-Days 1,046 998 911 4.8 % 14.8 % Natural Gas Service Territory % Change Heating Degree-Days 2022 2021 Normal From 2021 From Normal Heating Degree-Days 32 11 36 190.9 % (11.1 )% Nine Months Ended September 30, 2022 and 2021 Electric and Natural Gas Deliveries Revenue (in millions) 2022 2021 % Change Weather - Normal % Change 2022 2021 % Change Electric (in GWhs) Electric Deliveries and Revenues(a) Residential 4,257 4,245 0.3 % (0.1 )% $ 570 $ 535 6.5 % Small commercial & industrial 1,809 1,787 1.2 % 1.1 % 173 145 19.3 % Large commercial & industrial 3,207 3,145 2.0 % 2.0 % 99 70 41.4 % Public authorities & electric railroads 32 34 (5.9 )% (4.7 )% 11 11 — % Other(b) — — n/a n/a 168 143 17.5 % Total rate-regulated electric revenues(c) 9,305 9,211 1.0 % 0.8 % 1,021 904 12.9 % Other Revenues(d) (2 ) 18 (111.1 )% Total Electric Revenues 1,019 922 10.5 % Natural Gas (in mmcfs) Natural Gas Deliveries and Revenues(e) Residential 5,810 5,507 5.5 % 4.7 % 77 67 14.9 % Small commercial & industrial 2,882 2,647 8.9 % 9.1 % 35 29 20.7 % Large commercial & industrial 1,259 1,247 1.0 % 0.9 % 9 5 80.0 % Transportation 4,934 4,997 (1.3 )% (1.1 )% 11 11 — % Other(f) — — n/a n/a 25 6 316.7 % Total rate-regulated natural gas revenues 14,885 14,398 3.4 % 3.2 % 157 118 33.1 % Other Revenues(d) — — n/a Total Natural Gas Revenues 157 118 33.1 % Total Electric and Natural Gas Revenues $ 1,176 $ 1,040 13.1 % Purchased Power and Fuel $ 507 $ 402 26.1 % Electric Service Territory % Change Heating and Cooling Degree-Days 2022 2021 Normal From 2021 From Normal Heating Degree-Days 2,724 2,739 2,889 (0.5 )% (5.7 )% Cooling Degree-Days 1,392 1,376 1,260 1.2 % 10.5 % Natural Gas Service Territory % Change Heating Degree-Days 2022 2021 Normal From 2021 From Normal Heating Degree-Days 2,828 2,848 3,029 (0.7 )% (6.6 )% Number of Electric Customers 2022 2021 Number of Natural Gas Customers 2022 2021 Residential 480,779 476,008 Residential 129,005 127,740 Small commercial & industrial 63,685 62,990 Small commercial & industrial 10,044 9,935 Large commercial & industrial 1,230 1,215 Large commercial & industrial 16 21 Public authorities & electric railroads 597 605 Transportation 156 158 Total 546,291 540,818 Total 139,221 137,854 __________ (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 $1 million and $2 million for the three months ended September 30, 2022 and 2021, respectively and $5 million and $6 million for the nine months ended September 30, 2022 and 2021, 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 September 30, 2022 and 2021 Electric Deliveries (in GWhs) Revenue (in millions) 2022 2021 % Change Weather - Normal % Change 2022 2021 % Change Electric Deliveries and Revenues(a) Residential 1,516 1,540 (1.6 )% (2.8 )% $ 283 $ 275 2.9 % Small commercial & industrial 478 435 9.9 % 10.1 % 70 61 14.8 % Large commercial & industrial 885 874 1.3 % 0.9 % 55 49 12.2 % Public authorities & electric railroads 9 9 — % (1.6 )% 3 3 — % Other(b) — — n/a n/a 54 63 (14.3 )% Total electric revenues(c) 2,888 2,858 1.0 % 0.3 % 465 451 3.1 % Other Revenues(d) (3 ) — n/a Total Electric Revenues $ 462 $ 451 2.4 % Purchased Power $ 197 $ 230 (14.3 )% % Change Heating and Cooling Degree-Days 2022 2021 Normal From 2021 From Normal Heating Degree-Days 38 11 30 245.5 % 26.7 % Cooling Degree-Days 955 922 872 3.6 % 9.5 % Nine Months Ended September 30, 2022 and 2021 Electric Deliveries (in GWhs) Revenue (in millions) 2022 2021 % Change Weather - Normal % Change 2022 2021 % Change Electric Deliveries and Revenues(a) Residential 3,293 3,443 (4.4 )% (4.6 )% $ 611 $ 604 1.2 % Small commercial & industrial 1,179 1,073 9.9 % 9.8 % 171 146 17.1 % Large commercial & industrial 2,396 2,351 1.9 % 1.8 % 151 139 8.6 % Public authorities & electric railroads 34 33 3.0 % — % 11 10 10.0 % Other(b) — — n/a n/a 190 158 20.3 % Total electric revenues(c) 6,902 6,900 — % (0.2 )% 1,134 1,057 7.3 % Other Revenues(d) (14 ) 23 (160.9 )% Total Electric Revenues $ 1,120 $ 1,080 3.7 % Purchased Power $ 497 $ 541 (8.1 )% % Change Heating and Cooling Degree-Days 2022 2021 Normal From 2021 From Normal Heating Degree-Days 3,007 2,884 3,024 4.3 % (0.6 )% Cooling Degree-Days 1,231 1,246 1,178 (1.2 )% 4.5 % Number of Electric Customers 2022 2021 Residential 501,869 499,775 Small commercial & industrial 62,204 61,838 Large commercial & industrial 3,075 3,209 Public authorities & electric railroads 731 707 Total 567,879 565,529 __________ (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 less than $1 million and $1 million for the three months ended September 30, 2022 and 2021, respectively, and $2 million for both the nine months ended September 30, 2022 and 2021. (d) Includes alternative revenue programs. View source version on businesswire.com: https://www.businesswire.com/news/home/20221103005600/en/Contacts Nick Alexopulos Corporate Communications 312-394-7417 Andrew Plenge Investor Relations 312-394-2345 Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. By accessing this page, you agree to the following Privacy Policy and Terms and Conditions.
Exelon Reports Third Quarter 2022 Results By: Exelon Corporation via Business Wire November 03, 2022 at 06:50 AM EDT Earnings Release Highlights GAAP Net Income of $0.68 per share and Adjusted (non-GAAP) Operating Earnings of $0.75 per share for the third quarter of 2022 Narrowing guidance range for full year 2022 Adjusted (non-GAAP) Operating Earnings from $2.18-$2.32 per share to $2.21-$2.29 per share Strong utility reliability performance – every utility achieved top quartile in outage duration with ComEd continuing to deliver best-on-record CAIDI performance for the third straight quarter ComEd announces intent to file its first multi-year plan with the Illinois Commerce Commission (ICC) in January 2023 in accordance with the Climate and Equitable Jobs Act (CEJA) Settlements were approved by the Delaware Public Service Commission (DEPSC) and the Pennsylvania Public Utility Commission (PAPUC) in Delmarva Power’s and PECO's gas distribution rate cases in October Exelon Corporation (Nasdaq: EXC) today reported its financial results for the third quarter of 2022. “As Exelon leads the energy transformation, our commitment to affordability, energy equity and a cleaner future is unwavering, as is our responsibility to our investors,” said Exelon CEO Chris Crane. “Exelon continues its strong operational performance, with ComEd and PECO achieving best on record SAIFI performance. We are on track to invest more than $6.9 billion at our electric and gas companies by year end to enhance reliability and resiliency. This ongoing infrastructure investment in our electric and gas companies is delivering solid financial and customer satisfaction results. Our consistent operational excellence, strategic and equitable investments in our communities, and significant regulatory milestones achieved this quarter will help ensure we deliver on our promise to provide safe, reliable, resilient and affordable service to our more than 10 million customers and value to our investors.” “Our third-quarter performance remained strong, with adjusted (non-GAAP) earnings of $0.75 per share which, after adjusting for discontinued operations, is $0.14 ahead of the same period last year driven in part by rate adjustments resulting from our continued investments at the utilities to improve reliability and service for customers,” said Jeanne Jones, Exelon executive vice president and chief financial officer. “Our excellent operational performance and progress on the regulatory front through the third quarter – with more on the horizon – is continued evidence that we are on the right path to achieve our long-term goals. To that end, we have narrowed our 2022 EPS guidance range to $2.21 to $2.29 per share, and reaffirmed our 6-8% earnings per share growth from 2021-2025.” Third Quarter 2022 Exelon's GAAP Net Income from Continuing Operations for the third quarter of 2022 increased to $0.68 per share from $0.47 GAAP Net Income from Continuing Operations per share in the third quarter of 2021. Adjusted (non-GAAP) Operating Earnings for the third quarter of 2022 increased to $0.75 per share from $0.53 per share in the third quarter of 2021. For the reconciliations of GAAP Net Income from Continuing Operations to Adjusted (non-GAAP) Operating Earnings, refer to the tables beginning on page 4. Adjusted (non-GAAP) Operating Earnings in the third quarter of 2022 primarily reflect: Higher utility earnings primarily due to higher electric distribution earnings at ComEd from higher allowed electric distribution ROE due to an increase in treasury rates and higher rate base, rate increases at PECO, BGE, and PHI, and decreases in storm costs at PECO and BGE, partially offset by higher depreciation expense at PECO and PHI. Higher earnings 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 third quarter of 2021 as these costs do not qualify as expenses of the discontinued operations per the accounting rules, partially offset by higher interest expense. Operating Company Results1 ComEd ComEd's third quarter of 2022 GAAP Net Income increased to $291 million from $220 million in the third quarter of 2021. ComEd's Adjusted (non-GAAP) Operating Earnings for the third quarter of 2022 increased to $293 million from $224 million in the third quarter of 2021, primarily due to increases in electric distribution formula rate earnings (reflecting higher allowed electric distribution ROE due to an increase in treasury rates and the impacts of higher rate base). Due to revenue decoupling, ComEd's distribution earnings are not affected by actual weather or customer usage patterns. PECO PECO’s third quarter of 2022 GAAP Net Income increased to $135 million from $111 million in the third quarter of 2021. PECO's Adjusted (non-GAAP) Operating Earnings for the third quarter of 2022 increased to $174 million from $114 million in the third quarter of 2021, primarily due to distribution rate increases and decreases in storm costs, partially offset by an increase in depreciation expense. ___________ 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. BGE BGE’s third quarter of 2022 GAAP Net Income decreased to $33 million from $36 million in the third quarter of 2021. BGE's Adjusted (non-GAAP) Operating Earnings for the third quarter of 2022 increased to $70 million from $40 million in the third quarter of 2021, primarily due to favorable impacts of the multi-year plans and decreases in storm costs. Due to revenue decoupling, BGE's distribution earnings are not affected by actual weather or customer usage patterns. PHI PHI’s third quarter of 2022 GAAP Net Income increased to $289 million from $266 million in the third quarter of 2021. PHI’s Adjusted (non-GAAP) Operating Earnings for the third quarter of 2022 increased to $286 million from $272 million in the third quarter of 2021, primarily due to distribution rate increases, partially offset by an increase in depreciation expense. 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 Third Quarter Highlights PECO Pennsylvania Natural Gas Distribution Rate Case: On October 27, 2022, the PAPUC issued an order approving a $55 million increase in PECO's annual natural gas distribution revenues. The rate increase was resolved through a settlement agreement, which did not specify an approved ROE. The rates are effective on January 1, 2023. DPL Delaware Natural Gas Base Rate Case: On October 12, 2022, the DEPSC approved an increase in DPL’s annual natural gas distribution rates of $8 million, reflecting an ROE of 9.60%. Interim rates went into effect on August 14, 2022, subject to refund. Rates associated with the approved order are effective on November 1, 2022. Financing Activities: On August 4, 2022, Exelon entered into an agreement with certain underwriters in connection with an underwritten public offering of 12.995 million shares of its common stock, no par value. The net proceeds were $563 million before expenses paid. Exelon used the proceeds, together with available cash balances, to repay $575 million in borrowings under a $1.15 billion term loan credit facility. On August 23, 2022, PECO issued $425 million of its First and Refunding Mortgage Bonds, 4.375% Series, due August 15, 2052. PECO used the proceeds to repay outstanding commercial paper obligations and for general corporate purposes. On September 15, 2022, Pepco issued $225 million of its First Mortgage bonds, 3.35% Series, due September 15, 2032. Pepco 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 third 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 $ 0.68 $ 676 $ 291 $ 135 $ 33 $ 289 Asset Retirement Obligation (net of taxes of $2) — (4 ) — — — (4 ) Asset Impairments (net of taxes of $10) 0.04 37 — — 37 — Separation Costs (net of taxes of $1, $1, $0, $0, and $0, respectively) — (3 ) 2 1 1 1 Income Tax-Related Adjustments (entire amount represents tax expense) 0.04 38 — 38 — — 2022 Adjusted (non-GAAP) Operating Earnings $ 0.75 $ 745 $ 293 $ 174 $ 70 $ 286 Adjusted (non-GAAP) Operating Earnings for the third quarter of 2021 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 2021 GAAP Net Income (Loss) from Continuing Operations $ 0.47 $ 457 $ 220 $ 111 $ 36 $ 266 Mark-to-Market Impact of Economic Hedging Activities (net of taxes of $1) — 3 — — — — Cost Management Program (net of taxes of $0) — 4 — 1 1 1 COVID-19 Direct Costs (net of taxes of $0) — 3 — 1 1 1 Asset Retirement Obligation (net of taxes of $1) — 2 — — — 2 Acquisition Related Costs (net of taxes of $2) 0.01 7 — — — — ERP System Implementation Costs (net of taxes of $1) — 4 — — — — Separation Costs (net of taxes of $8, $2, $1, $1, and $1, respectively) 0.02 16 4 2 2 3 Income Tax-Related Adjustments (entire amount represents tax expense) 0.03 26 — — — — 2021 Adjusted (non-GAAP) Operating Earnings $ 0.53 $ 522 $ 224 $ 114 $ 40 $ 272 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 2022 and 2021 ranged from 24.0% to 29.0%. Webcast Information Exelon will discuss third quarter 2022 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 18,000 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 Nov. 3, 2022. 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' 2021 Annual Report on Form 10-K filed with the SEC on February 25, 2022 in Part I, ITEM 1A. Risk Factors; (2) the Registrants' Current Report on Form 8-K filed with the SEC on June 30, 2022 to recast Exelon's consolidated financial statements and certain other financial information originally included in the 2021 Form 10-K in (a) Part II, ITEM 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations and (b) Part II, ITEM 8. Financial Statements and Supplementary Data: Note 17, Commitments and Contingencies; (3) the Registrants' Third Quarter 2022 Quarterly Report on Form 10-Q (to be filed on Nov. 3, 2022) 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 13, Commitments and Contingencies; and (4) 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 1 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 10 PECO 11 BGE 13 Pepco 16 DPL 17 ACE 19 Consolidating Statements of Operations (unaudited) (in millions) ComEd PECO BGE PHI Other (a) Exelon Three Months Ended September 30, 2022 Operating revenues $ 1,378 $ 1,014 $ 870 $ 1,598 $ (15 ) $ 4,845 Operating expenses Purchased power and fuel 121 403 350 610 — 1,484 Operating and maintenance 355 243 235 277 38 1,148 Depreciation and amortization 333 92 148 238 14 825 Taxes other than income taxes 104 60 77 129 7 377 Total operating expenses 913 798 810 1,254 59 3,834 Loss on sales of assets and businesses — — — — — — Operating income (loss) 465 216 60 344 (74 ) 1,011 Other income and (deductions) Interest expense, net (104 ) (45 ) (39 ) (72 ) (105 ) (365 ) Other, net 14 8 5 19 76 122 Total other (deductions) and income (90 ) (37 ) (34 ) (53 ) (29 ) (243 ) Income (loss) from continuing operations before income taxes 375 179 26 291 (103 ) 768 Income taxes 84 44 (7 ) 2 (31 ) 92 Net income (loss) from continuing operations after income taxes 291 135 33 289 (72 ) 676 Net income from discontinued operations after income taxes — — — — — — Net income (loss) 291 135 33 289 (72 ) 676 Net income attributable to noncontrolling interests — — — — — — Net income (loss) attributable to common shareholders $ 291 $ 135 $ 33 $ 289 $ (72 ) $ 676 Three Months Ended September 30, 2021 Operating revenues $ 1,789 $ 818 $ 770 $ 1,470 $ 16 $ 4,863 Operating expenses Purchased power and fuel 703 277 290 540 (1 ) 1,809 Operating and maintenance 330 263 205 278 111 1,187 Depreciation and amortization 304 86 142 210 16 758 Taxes other than income taxes 91 51 72 127 12 353 Total operating expenses 1,428 677 709 1,155 138 4,107 Operating income (loss) 361 141 61 315 (122 ) 756 Other income and (deductions) Interest expense, net (98 ) (40 ) (36 ) (67 ) (83 ) (324 ) Other, net 13 7 7 16 17 60 Total other deductions (85 ) (33 ) (29 ) (51 ) (66 ) (264 ) Income (loss) from continuing operations before income taxes 276 108 32 264 (188 ) 492 Income taxes 56 (3 ) (4 ) (2 ) (12 ) 35 Net income (loss) from continuing operations after income taxes 220 111 36 266 (176 ) 457 Net income from discontinued operations after income taxes — — — — 772 772 Net income 220 111 36 266 596 1,229 Net income attributable to noncontrolling interests — — — — 26 26 Net income attributable to common shareholders $ 220 $ 111 $ 36 $ 266 $ 570 $ 1,203 Change in Net income from continuing operations 2021 to 2022 $ 71 $ 24 $ (3 ) $ 23 $ 104 $ 219 Consolidating Statements of Operations (unaudited) (in millions) ComEd PECO BGE PHI Other (a) Exelon Nine Months Ended September 30, 2022 Operating revenues $ 4,536 $ 2,877 $ 2,810 $ 4,223 $ (34 ) $ 14,412 Operating expenses Purchased power and fuel 1,041 1,093 1,093 1,609 (1 ) 4,835 Operating and maintenance 1,045 705 658 867 161 3,436 Depreciation and amortization 982 277 470 697 46 2,472 Taxes other than income taxes 289 155 225 362 30 1,061 Total operating expenses 3,357 2,230 2,446 3,535 236 11,804 Loss on sales of assets and businesses (2 ) — — — — (2 ) Operating income (loss) 1,177 647 364 688 (270 ) 2,606 Other income and (deductions) Interest expense, net (308 ) (129 ) (110 ) (216 ) (300 ) (1,063 ) Other, net 40 23 16 56 300 435 Total other (deductions) and income (268 ) (106 ) (94 ) (160 ) — (628 ) Income (loss) from continuing operations before income taxes 909 541 270 528 (270 ) 1,978 Income taxes 203 67 3 10 73 356 Net income (loss) from continuing operations after income taxes 706 474 267 518 (343 ) 1,622 Net income from discontinued operations after income taxes — — — — 117 117 Net income (loss) 706 474 267 518 (226 ) 1,739 Net income attributable to noncontrolling interests — — — — 1 1 Net income (loss) attributable to common shareholders $ 706 $ 474 $ 267 $ 518 $ (227 ) $ 1,738 Nine Months Ended September 30, 2021 Operating revenues $ 4,840 $ 2,399 $ 2,426 $ 3,854 $ (5 ) $ 13,514 Operating expenses Purchased power and fuel 1,728 800 840 1,414 (1 ) 4,781 Operating and maintenance 969 706 595 790 280 3,340 Depreciation and amortization 893 259 434 614 53 2,253 Taxes other than income taxes 243 143 211 349 37 983 Total operating expenses 3,833 1,908 2,080 3,167 369 11,357 Gain on sales of assets and businesses — — — — 3 3 Operating income (loss) 1,007 491 346 687 (371 ) 2,160 Other income and (deductions) Interest expense, net (292 ) (119 ) (103 ) (201 ) (252 ) (967 ) Other, net 35 20 23 52 60 190 Total other (deductions) (257 ) (99 ) (80 ) (149 ) (192 ) (777 ) Income (loss) from continuing operations before income taxes 750 392 266 538 (563 ) 1,383 Income taxes 141 9 (24 ) 3 (53 ) 76 Net income (loss) from continuing operations after income taxes 609 383 290 535 (510 ) 1,307 Net income from discontinued operations after income taxes — — — — 134 134 Net income (loss) 609 383 290 535 (376 ) 1,441 Net income attributable to noncontrolling interests — — — — 126 126 Net income (loss) attributable to common shareholders $ 609 $ 383 $ 290 $ 535 $ (502 ) $ 1,315 Change in Net income from continuing operations 2021 to 2022 $ 97 $ 91 $ (23 ) $ (17 ) $ 167 $ 315 __________ (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) September 30, 2022 December 31, 2021 Assets Current assets Cash and cash equivalents $ 446 $ 672 Restricted cash and cash equivalents 744 321 Accounts receivable Customer accounts receivable 2,129 2,189 Customer allowance for credit losses (341 ) (320 ) Customer accounts receivable, net 1,788 1,869 Other accounts receivable 1,726 1,068 Other allowance for credit losses (84 ) (72 ) Other accounts receivable, net 1,642 996 Inventories, net Fossil fuel 235 105 Materials and supplies 522 476 Regulatory assets 1,300 1,296 Other 378 387 Current assets of discontinued operations — 7,835 Total current assets 7,055 13,957 Property, plant, and equipment, net 67,572 64,558 Deferred debits and other assets Regulatory assets 8,224 8,224 Goodwill 6,630 6,630 Receivable related to Regulatory Agreement Units 2,658 — Investments 230 250 Other 1,086 885 Property, plant, and equipment, deferred debits, and other assets of discontinued operations — 38,509 Total deferred debits and other assets 18,828 54,498 Total assets $ 93,455 $ 133,013 Liabilities and shareholders’ equity Current liabilities Short-term borrowings $ 1,690 $ 1,248 Long-term debt due within one year 1,300 2,153 Accounts payable 2,693 2,379 Accrued expenses 1,213 1,137 Payables to affiliates 5 5 Regulatory liabilities 493 376 Mark-to-market derivative liabilities — 18 Unamortized energy contract liabilities 10 89 Other 1,313 766 Current liabilities of discontinued operations — 7,940 Total current liabilities 8,717 16,111 Long-term debt 35,283 30,749 Long-term debt to financing trusts 390 390 Deferred credits and other liabilities Deferred income taxes and unamortized investment tax credits 11,113 10,611 Regulatory liabilities 8,844 9,628 Pension obligations 1,366 2,051 Non-pension postretirement benefit obligations 796 811 Asset retirement obligations 266 271 Mark-to-market derivative liabilities 67 201 Unamortized energy contract liabilities 37 146 Other 1,994 1,573 Long-term debt, deferred credits, and other liabilities of discontinued operations — 25,676 Total deferred credits and other liabilities 24,483 50,968 Total liabilities 68,873 98,218 Commitments and contingencies Shareholders’ equity Common stock 20,895 20,324 Treasury stock, at cost (123 ) (123 ) Retained earnings 4,502 16,942 Accumulated other comprehensive loss, net (692 ) (2,750 ) Total shareholders’ equity 24,582 34,393 Noncontrolling interests — 402 Total equity 24,582 34,795 Total liabilities and shareholders’ equity $ 93,455 $ 133,013 Exelon Consolidated Statements of Cash Flows (unaudited) (in millions) Nine Months Ended September 30, 2022 2021 Cash flows from operating activities Net income $ 1,739 $ 1,441 Adjustments to reconcile net income to net cash flows provided by operating activities: Depreciation, amortization, and accretion, including nuclear fuel and energy contract amortization 2,679 6,204 Asset impairments 46 541 Gain on sales of assets and businesses (8 ) (147 ) Deferred income taxes and amortization of investment tax credits 256 (45 ) Net fair value changes related to derivatives (59 ) (1,244 ) Net realized and unrealized losses (gains) on NDT funds 205 (383 ) Net unrealized losses on equity investments 16 83 Other non-cash operating activities 265 (293 ) Changes in assets and liabilities: Accounts receivable (1,049 ) (254 ) Inventories (121 ) (101 ) Accounts payable and accrued expenses 823 354 Option premiums paid, net (39 ) (186 ) Collateral received, net 1,456 2,111 Income taxes 3 250 Regulatory assets and liabilities, net (689 ) (367 ) Pension and non-pension postretirement benefit contributions (596 ) (602 ) Other assets and liabilities (786 ) (3,221 ) Net cash flows provided by operating activities 4,141 4,141 Cash flows from investing activities Capital expenditures (5,179 ) (5,970 ) Proceeds from NDT fund sales 488 5,766 Investment in NDT funds (516 ) (5,900 ) Collection of DPP 169 3,052 Proceeds from sales of assets and businesses 16 801 Other investing activities 36 40 Net cash flows used in investing activities (4,986 ) (2,211 ) Cash flows from financing activities Changes in short-term borrowings (335 ) (744 ) Proceeds from short-term borrowings with maturities greater than 90 days 1,150 1,380 Repayments on short-term borrowings with maturities greater than 90 days (925 ) — Issuance of long-term debt 5,801 3,406 Retirement of long-term debt (2,067 ) (1,618 ) Issuance of common stock 563 — Dividends paid on common stock (999 ) (1,121 ) Acquisition of CENG noncontrolling interest — (885 ) Proceeds from employee stock plans 26 63 Transfer of cash, restricted cash, and cash equivalents to Constellation (2,594 ) — Other financing activities (121 ) (93 ) Net cash flows provided by financing activities 499 388 (Decrease) increase in cash, restricted cash, and cash equivalents (346 ) 2,318 Cash, restricted cash, and cash equivalents at beginning of period 1,619 1,166 Cash, restricted cash, and cash equivalents at end of period $ 1,273 $ 3,484 Exelon Reconciliation of GAAP Net Income (Loss) from Continuing Operations to Adjusted (non-GAAP) Operating Earnings and Analysis of Earnings Three Months Ended September 30, 2022 and 2021 (unaudited) (in millions, except per share data) Exelon Earnings per Diluted Share ComEd PECO BGE PHI Other (a) Exelon 2021 GAAP Net Income (Loss) from Continuing Operations $ 0.47 $ 220 $ 111 $ 36 $ 266 $ (176 ) $ 457 Mark-to-Market Impact of Economic Hedging Activities (net of taxes of $1) — — — — — 3 3 Cost Management Program (net of taxes of $0) — — 1 1 1 1 4 COVID-19 Direct Costs (net of taxes of $0) (1) — — 1 1 1 — 3 Asset Retirement Obligation (net of taxes of $1) — — — — 2 — 2 Acquisition Related Costs (net of taxes of $2) (2) 0.01 — — — — 7 7 ERP System Implementation Costs (net of taxes of $1) (3) — — — — — 4 4 Separation Costs (net of taxes of $2, $1, $1, $1, $3 and $8, respectively) (4) 0.02 4 2 2 3 5 16 Income Tax-Related Adjustments (entire amount represents tax (expense) (5) 0.03 — — — — 26 26 2021 Adjusted (non-GAAP) Operating Earnings (Loss) $ 0.53 $ 224 $ 114 $ 40 $ 272 $ (128 ) $ 522 Year Over Year Effects on Adjusted (non-GAAP) Operating Earnings: Weather $ 0.02 $ — (b) $ 21 $ — (b) $ 1 (b) $ — $ 22 Load (0.02 ) — (b) (17 ) — (b) (1 ) (b) — (18 ) Distribution and Transmission Rates (7) 0.12 39 (c) 35 (c) 26 (c) 21 (c) — 121 Other Energy Delivery (8) 0.12 83 (c) 14 (c) 2 (c) 18 (c) — 117 Operating and Maintenance Expense (9) 0.01 (27 ) 10 8 (7 ) 23 7 Pension and Non-Pension Postretirement Benefits 0.01 6 2 2 (1 ) 5 14 Depreciation and Amortization Expense (10) (0.05 ) (22 ) (5 ) (4 ) (20 ) 2 (49 ) Other (11) 0.01 (10 ) — (4 ) 3 20 9 Total Year Over Year Effects on Adjusted (non-GAAP) Operating Earnings $ 0.22 $ 69 $ 60 $ 30 $ 14 $ 50 $ 223 2022 GAAP Net Income (Loss) from Continuing Operations $ 0.68 $ 291 $ 135 $ 33 $ 289 $ (72 ) $ 676 Asset Retirement Obligation (net of taxes of $2) — — — — (4 ) — (4 ) Asset Impairments (net of taxes of $10) (6) 0.04 — — 37 — — 37 Separation Costs (net of taxes of $1, $0, $0, $0, $2, and $1, respectively) (4) — 2 1 1 1 (8 ) (3 ) Income Tax-Related Adjustments (entire amount represents tax expense) (5) 0.04 — 38 — — — 38 2022 Adjusted (non-GAAP) Operating Earnings (Loss) $ 0.75 $ 293 $ 174 $ 70 $ 286 $ (78 ) $ 745 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 2022 and 2021 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) Represents direct costs related to COVID-19 consisting primarily of costs to acquire personal protective equipment, costs for cleaning supplies and services, and costs to hire healthcare professionals to monitor the health of employees, which are recorded in Operating and maintenance expense. (2) Reflects certain BSC costs related to the acquisition of Electricite de France SA's (EDF's) interest in CENG, which was completed in the third quarter of 2021, that were historically allocated to Constellation Energy Generation, LLC (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. (3) Reflects costs related to a multi-year Enterprise Resource Program (ERP) system implementation, which are recorded in Operating and maintenance expense. (4) 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. (5) In 2022, for PECO, reflects an adjustment to exclude one-time non-cash impacts associated with the remeasurement of deferred income taxes as a result of the reduction in Pennsylvania corporate income tax rate. In 2021, for Corporate, primarily reflects the adjustment to deferred income taxes due to changes in forecasted apportionment. (6) Reflects costs related to the impairment of an office building at BGE, which are recorded in Operating and maintenance expenses. (7) 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 rate increases. (8) For ComEd, reflects increased electric distribution, transmission, and energy efficiency revenues due to higher fully recoverable costs. (9) Represents Operating and maintenance expense, excluding pension and non-pension postretirement benefits. For ComEd, primarily reflects higher contracting costs. For PECO, primarily reflects decreased storm costs, partially offset by increases in various expenses. For BGE, primarily reflects 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 and 2) an increase in Operating and maintenance expense with an offsetting increase in other income for costs billed to Constellation for services provided by Exelon through the Transition Services Agreement (TSA). (10) Reflects ongoing capital expenditures across all utilities. For ComEd, also reflects increased amortization of deferred energy efficiency costs. (11) For ComEd, includes increased charges related to the Energy Transition Assistance Charge rider which are fully recoverable in Other Energy Delivery. For Corporate, primarily reflects an increase in other income for costs billed to Constellation for services provided by Exelon through the TSA with an offsetting increase in Operating and maintenance expense, partially offset by an increase in interest expense. Exelon Reconciliation of GAAP Net Income (Loss) from Continuing Operations to Adjusted (non-GAAP) Operating Earnings and Analysis of Earnings Nine Months Ended September 30, 2022 and 2021 (unaudited) (in millions, except per share data) Exelon Earnings per Diluted Share ComEd PECO BGE PHI Other (a) Exelon 2021 GAAP Net Income (Loss) from Continuing Operations $ 1.33 $ 609 $ 383 $ 290 $ 535 $ (510 ) $ 1,307 Mark-to-Market Impact of Economic Hedging Activities (net of taxes of $2) 0.01 — — — — 6 6 Cost Management Program (net of taxes of $0) 0.01 — 1 1 1 2 5 COVID-19 Direct Costs (net of taxes of $1, $1, $1 and $3, respectively) (1) 0.01 — 3 2 2 — 7 Asset Retirement Obligation (net of taxes of $1) — — — — 2 — 2 Acquisition Related Costs (net of taxes of $5) (2) 0.02 — — — — 15 15 ERP System Implementation Costs (net of taxes of $0, $0, $0, $2 and $2, respectively) (3) 0.01 — 1 1 1 7 10 Separation Costs (net of taxes of $3, $1, $1, $2, $6 and $13, respectively) (4) 0.03 7 3 4 5 10 29 Income Tax-Related Adjustments (entire amount represents tax expense) (5) 0.02 — — — — 24 24 2021 Adjusted (non-GAAP) Operating Earnings (Loss) $ 1.43 $ 617 $ 391 $ 298 $ 546 $ (447 ) $ 1,405 Year Over Year Effects on Adjusted (non-GAAP) Operating Earnings: Weather $ 0.01 $ — (b) $ 14 $ — (b) $ (2 ) (b) $ — $ 12 Load (0.01 ) — (b) (6 ) — (b) (4 ) (b) — (10 ) Distribution and Transmission Rates (7) 0.30 82 (c) 101 (c) 46 (c) 68 (c) — 297 Other Energy Delivery (8) 0.32 192 (c) 31 (c) 31 (c) 59 (c) — 313 Operating and Maintenance Expense (9) (0.13 ) (68 ) (7 ) (23 ) (64 ) 31 (131 ) Pension and Non-Pension Postretirement Benefits 0.04 16 5 7 1 9 38 Depreciation and Amortization Expense (10) (0.16 ) (64 ) (14 ) (26 ) (60 ) 3 (161 ) Other (11) 0.05 (60 ) 2 (25 ) (21 ) 152 48 Share Differential (12) (0.01 ) — — — — — — Total Year Over Year Effects on Adjusted (non-GAAP) Operating Earnings $ 0.41 $ 98 $ 126 $ 10 $ (23 ) $ 195 $ 406 2022 GAAP Net Income (Loss) from Continuing Operations $ 1.65 $ 706 $ 474 $ 267 $ 518 $ (343 ) $ 1,622 Asset Retirement Obligation (net of taxes of $2) — — — — (4 ) — (4 ) ERP System Implementation Costs (net of taxes of $0) (3) — — — — — 1 1 Asset Impairments (net of taxes of $10) (6) 0.04 — — 37 — — 37 Separation Costs (net of taxes of $4, $2, $2, $3, $0, and $10, respectively) (4) 0.03 9 4 4 7 1 25 Income Tax-Related Adjustments (entire amount represents tax expense) (5) 0.13 — 38 — 3 89 130 2022 Adjusted (non-GAAP) Operating Earnings (Loss) $ 1.84 $ 715 $ 517 $ 308 $ 523 $ (252 ) $ 1,811 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 2022 and 2021 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) Represents direct costs related to COVID-19 consisting primarily of costs to acquire personal protective equipment, costs for cleaning supplies and services, and costs to hire healthcare professionals to monitor the health of employees, which are recorded in Operating and maintenance expense. (2) Reflects certain BSC costs related to the acquisition of Electricite de France SA's (EDF's) interest in CENG, which was completed in the third quarter of 2021, that were historically allocated to Constellation Energy Generation, LLC (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. (3) Reflects costs related to a multi-year Enterprise Resource Program (ERP) system implementation, which are recorded in Operating and maintenance expense. (4) 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. (5) In 2022, for PECO, reflects an adjustment to exclude one-time non-cash impacts associated with the remeasurement of deferred income taxes as a result of the reduction in Pennsylvania corporate income tax rate. In 2022, for Corporate, 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 partially offset by a one-time impact associated with a state tax benefit. In 2021, for Corporate, primarily reflects the adjustment to deferred income taxes due to changes in forecasted apportionment. (6) Reflects costs related to the impairment of an office building at BGE, which are recorded in Operating and maintenance expenses. (7) 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 and transmission rate increases. For PHI, reflects increased revenue primarily due to distribution rate increases. (8) For ComEd, reflects increased electric distribution, transmission, and energy efficiency revenues due to higher fully recoverable costs. For PHI, includes the regulatory asset amortization of the ACE Power Purchase Agreement termination obligation recorded in the first quarter of 2022, which is fully recoverable. (9) Represents Operating and maintenance expense, excluding pension and non-pension postretirement benefits. For ComEd, partially reflects the voluntary customer refund related to the ICC investigation of matters identified in the Deferred Prosecution Agreement and higher contracting costs. For PECO, reflects increases in various expenses, mostly offset by decreased storm costs. For BGE, reflects higher credit loss expense and decreased storm costs. For PHI, includes increased storm costs, increased credit loss expense, and higher contracting costs partially due to timing of maintenance projects. 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 Q3 2022 includes one month of costs for the period prior to the separation compared to nine months of costs included in YTD Q3 2021) and 2) an increase in Operating and maintenance expense with an offsetting increase in other income for costs billed to Constellation for services provided by Exelon through the Transition Services Agreement (TSA). (10) Reflects ongoing capital expenditures across all utilities. For ComEd, also reflects increased amortization of deferred energy efficiency costs. For PHI, includes the regulatory asset amortization of the ACE Power Purchase Agreement termination obligation recorded in the first quarter of 2022, which is fully recoverable in Other Energy Delivery. (11) For ComEd, includes increased charges related to the Energy Transition Assistance Charge rider which are fully recoverable in Other Energy Delivery. For PECO, includes an increase in tax repairs deduction. For PHI, primarily reflects increased interest expense and the timing of tax expense driven by the timing of excess deferred tax amortization, which will reverse by the end of the year. For Corporate, primarily reflects an increase in other income for costs billed to Constellation for services provided by Exelon through the TSA with an offsetting increase in Operating and maintenance expense, partially offset by an increase in interest expense. (12) 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 September 30, 2022 and 2021 Electric Deliveries (in GWhs) Revenue (in millions) 2022 2021 % Change Weather - Normal % Change 2022 2021 % Change Electric Deliveries and Revenues(a) Residential 8,467 8,986 (5.8 )% 0.1 % $ 935 $ 978 (4.4 )% Small commercial & industrial 8,003 8,243 (2.9 )% (1.4 )% 217 433 (49.9 )% Large commercial & industrial 6,973 7,109 (1.9 )% (0.8 )% (117 ) 148 (179.1 )% Public authorities & electric railroads 216 228 (5.3 )% (4.8 )% 3 11 (72.7 )% Other(b) — — n/a n/a 246 245 0.4 % Total electric revenues(c) 23,659 24,566 (3.7 )% (0.7 )% 1,284 1,815 (29.3 )% Other Revenues(d) 94 (26 ) (461.5 )% Total Electric Revenues $ 1,378 $ 1,789 (23.0 )% Purchased Power $ 121 $ 703 (82.8 )% % Change Heating and Cooling Degree-Days 2022 2021 Normal From 2021 From Normal Heating Degree-Days 75 16 79 368.8 % (5.1 )% Cooling Degree-Days 778 866 722 (10.2 )% 7.8 % Nine Months Ended September 30, 2022 and 2021 Electric Deliveries (in GWhs) Revenue (in millions) 2022 2021 % Change Weather - Normal % Change 2022 2021 % Change Electric Deliveries and Revenues(a) Residential 21,835 22,228 (1.8 )% (0.4 )% $ 2,610 $ 2,479 5.3 % Small commercial & industrial 22,705 22,610 0.4 % 0.6 % 953 1,176 (19.0 )% Large commercial & industrial 20,361 19,956 2.0 % 2.3 % 48 420 (88.6 )% Public authorities & electric railroads 659 698 (5.6 )% (5.5 )% 22 33 (33.3 )% Other(b) — — n/a n/a 718 676 6.2 % Total electric revenues(c) 65,560 65,492 0.1 % 0.7 % 4,351 4,784 (9.1 )% Other Revenues(d) 185 56 230.4 % Total Electric Revenues $ 4,536 $ 4,840 (6.3 )% Purchased Power $ 1,041 $ 1,728 (39.8 )% % Change Heating and Cooling Degree-Days 2022 2021 Normal From 2021 From Normal Heating Degree-Days 3,953 3,632 3,861 8.8 % 2.4 % Cooling Degree-Days 1,155 1,257 988 (8.1 )% 16.9 % Number of Electric Customers 2022 2021 Residential 3,711,894 3,699,376 Small commercial & industrial 390,303 389,348 Large commercial & industrial 1,892 1,865 Public authorities & electric railroads 4,854 4,853 Total 4,108,943 4,095,442 __________ (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 $6 million and $9 million for the three months ended September 30, 2022 and 2021, respectively, and $14 million and $19 million for the nine months ended September 30, 2022 and 2021, respectively. (d) Includes alternative revenue programs and late payment charges. PECO Statistics Three Months Ended September 30, 2022 and 2021 Electric and Natural Gas Deliveries Revenue (in millions) 2022 2021 % Change Weather- Normal % Change 2022 2021 % Change Electric (in GWhs) Electric Deliveries and Revenues(a) Residential 4,386 4,318 1.6 % (5.6 )% $ 620 $ 509 21.8 % Small commercial & industrial 2,139 2,157 (0.8 )% (3.3 )% 149 113 31.9 % Large commercial & industrial 3,943 3,880 1.6 % 0.1 % 93 67 38.8 % Public authorities & electric railroads 172 155 11.0 % 10.5 % 8 7 14.3 % Other(b) — — n/a n/a 71 61 16.4 % Total electric revenues(c) 10,640 10,510 1.2 % (2.8 )% 941 757 24.3 % Other Revenues(d) — 5 (100.0 )% Total Electric Revenues 941 762 23.5 % Natural Gas (in mmcfs) Natural Gas Deliveries and Revenues(e) Residential 2,197 2,244 (2.1 )% 0.3 % 46 36 27.8 % Small commercial & industrial 2,054 1,926 6.6 % 9.5 % 20 13 53.8 % Large commercial & industrial 6 4 50.0 % 19.6 % — — n/a Transportation 5,162 5,356 (3.6 )% (9.3 )% 5 5 — % Other(f) — — n/a n/a 2 2 — % Total natural gas revenues(g) 9,419 9,530 (1.2 )% (3.1 )% 73 56 30.4 % Other Revenues(d) — — 100.0 % Total Natural Gas Revenues 73 56 30.4 % Total Electric and Natural Gas Revenues $ 1,014 $ 818 24.0 % Purchased Power and Fuel $ 403 $ 277 45.5 % % Change Heating and Cooling Degree-Days 2022 2021 Normal From 2021 From Normal Heating Degree-Days 19 4 24 375.0 % (20.8 )% Cooling Degree-Days 1,290 1,094 1,021 17.9 % 26.3 % Nine Months Ended September 30, 2022 and 2021 Electric and Natural Gas Deliveries Revenue (in millions) 2022 2021 % Change Weather- Normal % Change 2022 2021 % Change Electric (in GWhs) Electric Deliveries and Revenues(a) Residential 11,204 11,201 — % (2.0 )% $ 1,538 $ 1,325 16.1 % Small commercial & industrial 5,889 5,796 1.6 % 0.8 % 386 312 23.7 % Large commercial & industrial 10,691 10,627 0.6 % — % 229 183 25.1 % Public authorities & electric railroads 489 425 15.1 % 15.1 % 23 24 (4.2 )% Other(b) — — n/a n/a 202 167 21.0 % Total electric revenues(c) 28,273 28,049 0.8 % (0.4 )% 2,378 2,011 18.2 % Other Revenues(d) 12 22 (45.5 )% Total Electric Revenues 2,390 2,033 17.6 % Natural Gas (in mmcfs) Natural Gas Deliveries and Revenues(e) Residential 28,240 27,945 1.1 % 4.1 % 335 251 33.5 % Small commercial & industrial 16,238 15,217 6.7 % 8.5 % 125 94 33.0 % Large commercial & industrial 20 13 53.8 % 14.0 % — — n/a Transportation 18,508 18,474 0.2 % (0.7 )% 19 17 11.8 % Other(f) — — n/a n/a 7 4 75.0 % Total natural gas revenues(g) 63,006 61,649 2.2 % 3.8 % 486 366 32.8 % Other Revenues(d) 1 — 100.0 % Total Natural Gas Revenues 487 366 33.1 % Total Electric and Natural Gas Revenues $ 2,877 $ 2,399 19.9 % Purchased Power and Fuel $ 1,093 $ 800 36.6 % % Change Heating and Cooling Degree-Days 2022 2021 Normal From 2021 From Normal Heating Degree-Days 2,632 2,710 2,864 (2.9 )% (8.1 )% Cooling Degree-Days 1,725 1,517 1,413 13.7 % 22.1 % Number of Electric Customers 2022 2021 Number of Natural Gas Customers 2022 2021 Residential 1,523,269 1,514,836 Residential 500,934 495,752 Small commercial & industrial 155,516 155,006 Small commercial & industrial 46,074 44,435 Large commercial & industrial 3,120 3,108 Large commercial & industrial 9 6 Public authorities & electric railroads 10,393 10,271 Transportation 656 670 Total 1,692,298 1,683,221 Total 547,673 540,863 __________ (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 $3 million and $2 million for the three months ended September 30, 2022 and 2021, and $5 million and $5 million for the nine months ended September 30, 2022 and 2021, respectively. (d) Includes alternative revenue programs and late payment charges. (e) Reflects delivery volumes and revenues from customers purchasing natural gas directly from PECO and customers purchasing natural gas from a competitive natural gas supplier as all customers are assessed distribution charges. For customers purchasing natural gas from PECO, revenue also reflects the cost of natural gas. (f) Includes revenues primarily from off-system sales. (g) Includes operating revenues from affiliates totaling less than $1 million for both the three months ended September 30, 2022 and 2021, respectively, and $1 million and $1 million for the nine months ended September 30, 2022 and 2021, respectively. BGE Statistics Three Months Ended September 30, 2022 and 2021 Electric and Natural Gas Deliveries Revenue (in millions) 2022 2021 % Change Weather- Normal % Change 2022 2021 % Change Electric (in GWhs) Electric Deliveries and Revenues(a) Residential 3,664 3,736 (1.9 )% — % $ 406 $ 383 6.0 % Small commercial & industrial 754 779 (3.2 )% — % 88 73 20.5 % Large commercial & industrial 3,703 3,753 (1.3 )% (0.6 )% 158 128 23.4 % Public authorities & electric railroads 46 52 (11.5 )% (9.1 )% 7 7 — % Other(b) — — n/a n/a 101 104 (2.9 )% Total electric revenues(c) 8,167 8,320 (1.8 )% (0.4 )% 760 695 9.4 % Other Revenues(d) (3 ) (18 ) (83.3 )% Total Electric Revenues 757 677 11.8 % Natural Gas (in mmcfs) Natural Gas Deliveries and Revenues(e) Residential 2,321 2,359 (1.6 )% (2.4 )% 70 57 22.8 % Small commercial & industrial 844 902 (6.4 )% (6.5 )% 13 10 30.0 % Large commercial & industrial 7,943 7,296 8.9 % 10.3 % 28 22 27.3 % Other(f) 82 612 (86.6 )% n/a 2 6 (66.7 )% Total natural gas revenues(g) 11,190 11,169 0.2 % 5.9 % 113 95 18.9 % Other Revenues(d) — (2 ) (100.0 )% Total Natural Gas Revenues 113 93 21.5 % Total Electric and Natural Gas Revenues $ 870 $ 770 13.0 % Purchased Power and Fuel $ 350 $ 290 20.7 % % Change Heating and Cooling Degree-Days 2022 2021 Normal From 2021 From Normal Heating Degree-Days 50 42 71 19.0 % (29.6 )% Cooling Degree-Days 711 739 613 (3.8 )% 16.0 % Nine Months Ended September 30, 2022 and 2021 Electric and Natural Gas Deliveries Revenue (in millions) 2022 2021 % Change Weather- Normal % Change 2022 2021 % Change Electric (in GWhs) Electric Deliveries and Revenues(a) Residential 9,985 10,046 (0.6 )% (0.5 )% $ 1,158 $ 1,044 10.9 % Small commercial & industrial 2,126 2,128 (0.1 )% 0.3 % 239 202 18.3 % Large commercial & industrial 10,090 10,054 0.4 % 0.8 % 418 342 22.2 % Public authorities & electric railroads 152 149 2.0 % 2.9 % 20 20 — % Other(b) — — n/a n/a 297 269 10.4 % Total electric revenues(c) 22,353 22,377 (0.1 )% 0.2 % 2,132 1,877 13.6 % Other Revenues(d) (10 ) (11 ) (9.1 )% Total Electric Revenues 2,122 1,866 13.7 % Natural Gas (in mmcfs) Natural Gas Deliveries and Revenues(e) Residential 28,382 25,758 10.2 % 7.0 % 448 354 26.6 % Small commercial & industrial 6,895 6,226 10.7 % 6.9 % 77 59 30.5 % Large commercial & industrial 31,854 29,559 7.8 % 7.5 % 128 103 24.3 % Other(f) 5,472 9,125 (40.0 )% n/a 50 41 22.0 % Total natural gas revenues(g) 72,603 70,668 2.7 % 7.2 % 703 557 26.2 % Other Revenues(d) (15 ) 3 (600.0 )% Total Natural Gas Revenues 688 560 22.9 % Total Electric and Natural Gas Revenues $ 2,810 $ 2,426 15.8 % Purchased Power and Fuel $ 1,093 $ 840 30.1 % % Change Heating and Cooling Degree-Days 2022 2021 Normal From 2021 From Normal Heating Degree-Days 2,737 2,708 2,958 1.1 % (7.5 )% Cooling Degree-Days 990 1,039 872 (4.7 )% 13.5 % Number of Electric Customers 2022 2021 Number of Natural Gas Customers 2022 2021 Residential 1,200,786 1,194,254 Residential 653,413 649,745 Small commercial & industrial 115,778 114,814 Small commercial & industrial 38,128 38,216 Large commercial & industrial 12,774 12,584 Large commercial & industrial 6,222 6,167 Public authorities & electric railroads 266 268 Total 1,329,604 1,321,920 Total 697,763 694,128 __________ (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 and $4 million for the three months ended September 30, 2022 and 2021, respectively, and $5 million and $10 million for the nine months ended September 30, 2022 and 2021, respectively. (d) Includes alternative revenue programs and late payment charges. (e) Reflects delivery volumes and revenues from customers purchasing natural gas directly from BGE and customers purchasing natural gas from a competitive natural gas supplier as all customers are assessed distribution charges. For customers purchasing natural gas from BGE, revenue also reflects the cost of natural gas. (f) Includes revenues primarily from off-system sales. (g) Includes operating revenues from affiliates totaling $1 million and $3 million for the three months ended September 30, 2022 and 2021, respectively, and $8 million and $10 million for the nine months ended September 30, 2022 and 2021, respectively. Pepco Statistics Three Months Ended September 30, 2022 and 2021 Electric Deliveries (in GWhs) Revenue (in millions) 2022 2021 % Change Weather- Normal % Change 2022 2021 % Change Electric Deliveries and Revenues(a) Residential 2,384 2,457 (3.0 )% (2.4 )% $ 318 $ 309 2.9 % Small commercial & industrial 299 306 (2.3 )% (1.9 )% 44 36 22.2 % Large commercial & industrial 3,866 3,862 0.1 % 0.4 % 303 244 24.2 % Public authorities & electric railroads 176 165 6.7 % 6.5 % 9 8 12.5 % Other(b) — — n/a n/a 57 53 7.5 % Total electric revenues(c) 6,725 6,790 (1.0 )% (0.5 )% 731 650 12.5 % Other Revenues(d) (7 ) 10 (170.0 )% Total Electric Revenues $ 724 $ 660 9.7 % Purchased Power $ 230 $ 172 33.7 % % Change Heating and Cooling Degree-Days 2022 2021 Normal From 2021 From Normal Heating Degree-Days 19 — 7 n/a 171.4 % Cooling Degree-Days 1,218 1,221 1,185 (0.2 )% 2.8 % Nine Months Ended September 30, 2022 and 2021 Electric Deliveries (in GWhs) Revenue (in millions) 2022 2021 % Change Weather- Normal % Change 2022 2021 % Change Electric Deliveries and Revenues(a) Residential 6,390 6,495 (1.6 )% (1.5 )% $ 826 $ 785 5.2 % Small commercial & industrial 855 884 (3.3 )% (3.4 )% 117 101 15.8 % Large commercial & industrial 10,499 10,091 4.0 % 3.9 % 806 616 30.8 % Public authorities & electric railroads 451 506 (10.9 )% (10.8 )% 25 24 4.2 % Other(b) — — n/a n/a 157 154 1.9 % Total electric revenues(c) 18,195 17,976 1.2 % 1.2 % 1,931 1,680 14.9 % Other Revenues(d) (12 ) 56 (121.4 )% Total Electric Revenues $ 1,919 $ 1,736 10.5 % Purchased Power $ 605 $ 471 28.5 % % Change Heating and Cooling Degree-Days 2022 2021 Normal From 2021 From Normal Heating Degree-Days 2,357 2,343 2,429 0.6 % (3.0 )% Cooling Degree-Days 1,721 1,724 1,696 (0.2 )% 1.5 % Number of Electric Customers 2022 2021 Residential 853,873 839,574 Small commercial & industrial 54,423 53,849 Large commercial & industrial 22,789 22,586 Public authorities & electric railroads 196 179 Total 931,281 916,188 __________ (a) Reflects revenues from customers purchasing electricity directly from Pepco and customers purchasing electricity from a competitive electric generation supplier as all customers are assessed distribution charges. For customers purchasing electricity from Pepco, 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 and $2 million for the three months ended September 30, 2022 and 2021, respectively, and $4 million and $4 million for the nine months ended September 30, 2022 and 2021, respectively. (d) Includes alternative revenue programs and late payment charge revenues. DPL Statistics Three Months Ended September 30, 2022 and 2021 Electric and Natural Gas Deliveries Revenue (in millions) 2022 2021 % Change Weather - Normal % Change 2022 2021 % Change Electric (in GWhs) Electric Deliveries and Revenues(a) Residential 1,574 1,594 (1.3 )% (2.7 )% $ 207 $ 198 4.5 % Small commercial & industrial 667 671 (0.6 )% (1.2 )% 65 53 22.6 % Large commercial & industrial 1,167 1,160 0.6 % 0.2 % 43 27 59.3 % Public authorities & electric railroads 10 10 — % (1.6 )% 4 4 — % Other(b) — — n/a n/a 55 56 (1.8 )% Total electric revenues(c) 3,418 3,435 (0.5 )% (1.4 )% 374 338 10.7 % Other Revenues(d) — (1 ) (100.0 )% Total Electric Revenues 374 337 11.0 % Natural Gas (in mmcfs) Natural Gas Deliveries and Revenues(e) Residential 374 399 (6.3 )% (15.2 )% 10 10 — % Small commercial & industrial 331 352 (6.0 )% (10.2 )% 6 5 20.0 % Large commercial & industrial 397 395 0.5 % 0.6 % 3 2 50.0 % Transportation 1,284 1,303 (1.5 )% (2.1 )% 3 3 — % Other(g) — — n/a n/a 16 3 433.3 % Total natural gas revenues 2,386 2,449 (2.6 )% (5.2 )% 38 23 65.2 % Other Revenues(f) — — n/a Total Natural Gas Revenues 38 23 65.2 % Total Electric and Natural Gas Revenues $ 412 $ 360 14.4 % Purchased Power and Fuel $ 183 $ 138 32.6 % Electric Service Territory % Change Heating and Cooling Degree-Days 2022 2021 Normal From 2021 From Normal Heating Degree-Days 31 9 24 244.4 % 29.2 % Cooling Degree-Days 1,046 998 911 4.8 % 14.8 % Natural Gas Service Territory % Change Heating Degree-Days 2022 2021 Normal From 2021 From Normal Heating Degree-Days 32 11 36 190.9 % (11.1 )% Nine Months Ended September 30, 2022 and 2021 Electric and Natural Gas Deliveries Revenue (in millions) 2022 2021 % Change Weather - Normal % Change 2022 2021 % Change Electric (in GWhs) Electric Deliveries and Revenues(a) Residential 4,257 4,245 0.3 % (0.1 )% $ 570 $ 535 6.5 % Small commercial & industrial 1,809 1,787 1.2 % 1.1 % 173 145 19.3 % Large commercial & industrial 3,207 3,145 2.0 % 2.0 % 99 70 41.4 % Public authorities & electric railroads 32 34 (5.9 )% (4.7 )% 11 11 — % Other(b) — — n/a n/a 168 143 17.5 % Total rate-regulated electric revenues(c) 9,305 9,211 1.0 % 0.8 % 1,021 904 12.9 % Other Revenues(d) (2 ) 18 (111.1 )% Total Electric Revenues 1,019 922 10.5 % Natural Gas (in mmcfs) Natural Gas Deliveries and Revenues(e) Residential 5,810 5,507 5.5 % 4.7 % 77 67 14.9 % Small commercial & industrial 2,882 2,647 8.9 % 9.1 % 35 29 20.7 % Large commercial & industrial 1,259 1,247 1.0 % 0.9 % 9 5 80.0 % Transportation 4,934 4,997 (1.3 )% (1.1 )% 11 11 — % Other(f) — — n/a n/a 25 6 316.7 % Total rate-regulated natural gas revenues 14,885 14,398 3.4 % 3.2 % 157 118 33.1 % Other Revenues(d) — — n/a Total Natural Gas Revenues 157 118 33.1 % Total Electric and Natural Gas Revenues $ 1,176 $ 1,040 13.1 % Purchased Power and Fuel $ 507 $ 402 26.1 % Electric Service Territory % Change Heating and Cooling Degree-Days 2022 2021 Normal From 2021 From Normal Heating Degree-Days 2,724 2,739 2,889 (0.5 )% (5.7 )% Cooling Degree-Days 1,392 1,376 1,260 1.2 % 10.5 % Natural Gas Service Territory % Change Heating Degree-Days 2022 2021 Normal From 2021 From Normal Heating Degree-Days 2,828 2,848 3,029 (0.7 )% (6.6 )% Number of Electric Customers 2022 2021 Number of Natural Gas Customers 2022 2021 Residential 480,779 476,008 Residential 129,005 127,740 Small commercial & industrial 63,685 62,990 Small commercial & industrial 10,044 9,935 Large commercial & industrial 1,230 1,215 Large commercial & industrial 16 21 Public authorities & electric railroads 597 605 Transportation 156 158 Total 546,291 540,818 Total 139,221 137,854 __________ (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 $1 million and $2 million for the three months ended September 30, 2022 and 2021, respectively and $5 million and $6 million for the nine months ended September 30, 2022 and 2021, 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 September 30, 2022 and 2021 Electric Deliveries (in GWhs) Revenue (in millions) 2022 2021 % Change Weather - Normal % Change 2022 2021 % Change Electric Deliveries and Revenues(a) Residential 1,516 1,540 (1.6 )% (2.8 )% $ 283 $ 275 2.9 % Small commercial & industrial 478 435 9.9 % 10.1 % 70 61 14.8 % Large commercial & industrial 885 874 1.3 % 0.9 % 55 49 12.2 % Public authorities & electric railroads 9 9 — % (1.6 )% 3 3 — % Other(b) — — n/a n/a 54 63 (14.3 )% Total electric revenues(c) 2,888 2,858 1.0 % 0.3 % 465 451 3.1 % Other Revenues(d) (3 ) — n/a Total Electric Revenues $ 462 $ 451 2.4 % Purchased Power $ 197 $ 230 (14.3 )% % Change Heating and Cooling Degree-Days 2022 2021 Normal From 2021 From Normal Heating Degree-Days 38 11 30 245.5 % 26.7 % Cooling Degree-Days 955 922 872 3.6 % 9.5 % Nine Months Ended September 30, 2022 and 2021 Electric Deliveries (in GWhs) Revenue (in millions) 2022 2021 % Change Weather - Normal % Change 2022 2021 % Change Electric Deliveries and Revenues(a) Residential 3,293 3,443 (4.4 )% (4.6 )% $ 611 $ 604 1.2 % Small commercial & industrial 1,179 1,073 9.9 % 9.8 % 171 146 17.1 % Large commercial & industrial 2,396 2,351 1.9 % 1.8 % 151 139 8.6 % Public authorities & electric railroads 34 33 3.0 % — % 11 10 10.0 % Other(b) — — n/a n/a 190 158 20.3 % Total electric revenues(c) 6,902 6,900 — % (0.2 )% 1,134 1,057 7.3 % Other Revenues(d) (14 ) 23 (160.9 )% Total Electric Revenues $ 1,120 $ 1,080 3.7 % Purchased Power $ 497 $ 541 (8.1 )% % Change Heating and Cooling Degree-Days 2022 2021 Normal From 2021 From Normal Heating Degree-Days 3,007 2,884 3,024 4.3 % (0.6 )% Cooling Degree-Days 1,231 1,246 1,178 (1.2 )% 4.5 % Number of Electric Customers 2022 2021 Residential 501,869 499,775 Small commercial & industrial 62,204 61,838 Large commercial & industrial 3,075 3,209 Public authorities & electric railroads 731 707 Total 567,879 565,529 __________ (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 less than $1 million and $1 million for the three months ended September 30, 2022 and 2021, respectively, and $2 million for both the nine months ended September 30, 2022 and 2021. (d) Includes alternative revenue programs. View source version on businesswire.com: https://www.businesswire.com/news/home/20221103005600/en/Contacts Nick Alexopulos Corporate Communications 312-394-7417 Andrew Plenge Investor Relations 312-394-2345
Earnings Release Highlights GAAP Net Income of $0.68 per share and Adjusted (non-GAAP) Operating Earnings of $0.75 per share for the third quarter of 2022 Narrowing guidance range for full year 2022 Adjusted (non-GAAP) Operating Earnings from $2.18-$2.32 per share to $2.21-$2.29 per share Strong utility reliability performance – every utility achieved top quartile in outage duration with ComEd continuing to deliver best-on-record CAIDI performance for the third straight quarter ComEd announces intent to file its first multi-year plan with the Illinois Commerce Commission (ICC) in January 2023 in accordance with the Climate and Equitable Jobs Act (CEJA) Settlements were approved by the Delaware Public Service Commission (DEPSC) and the Pennsylvania Public Utility Commission (PAPUC) in Delmarva Power’s and PECO's gas distribution rate cases in October
Exelon Corporation (Nasdaq: EXC) today reported its financial results for the third quarter of 2022. “As Exelon leads the energy transformation, our commitment to affordability, energy equity and a cleaner future is unwavering, as is our responsibility to our investors,” said Exelon CEO Chris Crane. “Exelon continues its strong operational performance, with ComEd and PECO achieving best on record SAIFI performance. We are on track to invest more than $6.9 billion at our electric and gas companies by year end to enhance reliability and resiliency. This ongoing infrastructure investment in our electric and gas companies is delivering solid financial and customer satisfaction results. Our consistent operational excellence, strategic and equitable investments in our communities, and significant regulatory milestones achieved this quarter will help ensure we deliver on our promise to provide safe, reliable, resilient and affordable service to our more than 10 million customers and value to our investors.” “Our third-quarter performance remained strong, with adjusted (non-GAAP) earnings of $0.75 per share which, after adjusting for discontinued operations, is $0.14 ahead of the same period last year driven in part by rate adjustments resulting from our continued investments at the utilities to improve reliability and service for customers,” said Jeanne Jones, Exelon executive vice president and chief financial officer. “Our excellent operational performance and progress on the regulatory front through the third quarter – with more on the horizon – is continued evidence that we are on the right path to achieve our long-term goals. To that end, we have narrowed our 2022 EPS guidance range to $2.21 to $2.29 per share, and reaffirmed our 6-8% earnings per share growth from 2021-2025.” Third Quarter 2022 Exelon's GAAP Net Income from Continuing Operations for the third quarter of 2022 increased to $0.68 per share from $0.47 GAAP Net Income from Continuing Operations per share in the third quarter of 2021. Adjusted (non-GAAP) Operating Earnings for the third quarter of 2022 increased to $0.75 per share from $0.53 per share in the third quarter of 2021. For the reconciliations of GAAP Net Income from Continuing Operations to Adjusted (non-GAAP) Operating Earnings, refer to the tables beginning on page 4. Adjusted (non-GAAP) Operating Earnings in the third quarter of 2022 primarily reflect: Higher utility earnings primarily due to higher electric distribution earnings at ComEd from higher allowed electric distribution ROE due to an increase in treasury rates and higher rate base, rate increases at PECO, BGE, and PHI, and decreases in storm costs at PECO and BGE, partially offset by higher depreciation expense at PECO and PHI. Higher earnings 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 third quarter of 2021 as these costs do not qualify as expenses of the discontinued operations per the accounting rules, partially offset by higher interest expense. Operating Company Results1 ComEd ComEd's third quarter of 2022 GAAP Net Income increased to $291 million from $220 million in the third quarter of 2021. ComEd's Adjusted (non-GAAP) Operating Earnings for the third quarter of 2022 increased to $293 million from $224 million in the third quarter of 2021, primarily due to increases in electric distribution formula rate earnings (reflecting higher allowed electric distribution ROE due to an increase in treasury rates and the impacts of higher rate base). Due to revenue decoupling, ComEd's distribution earnings are not affected by actual weather or customer usage patterns. PECO PECO’s third quarter of 2022 GAAP Net Income increased to $135 million from $111 million in the third quarter of 2021. PECO's Adjusted (non-GAAP) Operating Earnings for the third quarter of 2022 increased to $174 million from $114 million in the third quarter of 2021, primarily due to distribution rate increases and decreases in storm costs, partially offset by an increase in depreciation expense. ___________ 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. BGE BGE’s third quarter of 2022 GAAP Net Income decreased to $33 million from $36 million in the third quarter of 2021. BGE's Adjusted (non-GAAP) Operating Earnings for the third quarter of 2022 increased to $70 million from $40 million in the third quarter of 2021, primarily due to favorable impacts of the multi-year plans and decreases in storm costs. Due to revenue decoupling, BGE's distribution earnings are not affected by actual weather or customer usage patterns. PHI PHI’s third quarter of 2022 GAAP Net Income increased to $289 million from $266 million in the third quarter of 2021. PHI’s Adjusted (non-GAAP) Operating Earnings for the third quarter of 2022 increased to $286 million from $272 million in the third quarter of 2021, primarily due to distribution rate increases, partially offset by an increase in depreciation expense. 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 Third Quarter Highlights PECO Pennsylvania Natural Gas Distribution Rate Case: On October 27, 2022, the PAPUC issued an order approving a $55 million increase in PECO's annual natural gas distribution revenues. The rate increase was resolved through a settlement agreement, which did not specify an approved ROE. The rates are effective on January 1, 2023. DPL Delaware Natural Gas Base Rate Case: On October 12, 2022, the DEPSC approved an increase in DPL’s annual natural gas distribution rates of $8 million, reflecting an ROE of 9.60%. Interim rates went into effect on August 14, 2022, subject to refund. Rates associated with the approved order are effective on November 1, 2022. Financing Activities: On August 4, 2022, Exelon entered into an agreement with certain underwriters in connection with an underwritten public offering of 12.995 million shares of its common stock, no par value. The net proceeds were $563 million before expenses paid. Exelon used the proceeds, together with available cash balances, to repay $575 million in borrowings under a $1.15 billion term loan credit facility. On August 23, 2022, PECO issued $425 million of its First and Refunding Mortgage Bonds, 4.375% Series, due August 15, 2052. PECO used the proceeds to repay outstanding commercial paper obligations and for general corporate purposes. On September 15, 2022, Pepco issued $225 million of its First Mortgage bonds, 3.35% Series, due September 15, 2032. Pepco 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 third 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 $ 0.68 $ 676 $ 291 $ 135 $ 33 $ 289 Asset Retirement Obligation (net of taxes of $2) — (4 ) — — — (4 ) Asset Impairments (net of taxes of $10) 0.04 37 — — 37 — Separation Costs (net of taxes of $1, $1, $0, $0, and $0, respectively) — (3 ) 2 1 1 1 Income Tax-Related Adjustments (entire amount represents tax expense) 0.04 38 — 38 — — 2022 Adjusted (non-GAAP) Operating Earnings $ 0.75 $ 745 $ 293 $ 174 $ 70 $ 286 Adjusted (non-GAAP) Operating Earnings for the third quarter of 2021 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 2021 GAAP Net Income (Loss) from Continuing Operations $ 0.47 $ 457 $ 220 $ 111 $ 36 $ 266 Mark-to-Market Impact of Economic Hedging Activities (net of taxes of $1) — 3 — — — — Cost Management Program (net of taxes of $0) — 4 — 1 1 1 COVID-19 Direct Costs (net of taxes of $0) — 3 — 1 1 1 Asset Retirement Obligation (net of taxes of $1) — 2 — — — 2 Acquisition Related Costs (net of taxes of $2) 0.01 7 — — — — ERP System Implementation Costs (net of taxes of $1) — 4 — — — — Separation Costs (net of taxes of $8, $2, $1, $1, and $1, respectively) 0.02 16 4 2 2 3 Income Tax-Related Adjustments (entire amount represents tax expense) 0.03 26 — — — — 2021 Adjusted (non-GAAP) Operating Earnings $ 0.53 $ 522 $ 224 $ 114 $ 40 $ 272 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 2022 and 2021 ranged from 24.0% to 29.0%. Webcast Information Exelon will discuss third quarter 2022 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 18,000 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 Nov. 3, 2022. 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' 2021 Annual Report on Form 10-K filed with the SEC on February 25, 2022 in Part I, ITEM 1A. Risk Factors; (2) the Registrants' Current Report on Form 8-K filed with the SEC on June 30, 2022 to recast Exelon's consolidated financial statements and certain other financial information originally included in the 2021 Form 10-K in (a) Part II, ITEM 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations and (b) Part II, ITEM 8. Financial Statements and Supplementary Data: Note 17, Commitments and Contingencies; (3) the Registrants' Third Quarter 2022 Quarterly Report on Form 10-Q (to be filed on Nov. 3, 2022) 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 13, Commitments and Contingencies; and (4) 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 1 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 10 PECO 11 BGE 13 Pepco 16 DPL 17 ACE 19 Consolidating Statements of Operations (unaudited) (in millions) ComEd PECO BGE PHI Other (a) Exelon Three Months Ended September 30, 2022 Operating revenues $ 1,378 $ 1,014 $ 870 $ 1,598 $ (15 ) $ 4,845 Operating expenses Purchased power and fuel 121 403 350 610 — 1,484 Operating and maintenance 355 243 235 277 38 1,148 Depreciation and amortization 333 92 148 238 14 825 Taxes other than income taxes 104 60 77 129 7 377 Total operating expenses 913 798 810 1,254 59 3,834 Loss on sales of assets and businesses — — — — — — Operating income (loss) 465 216 60 344 (74 ) 1,011 Other income and (deductions) Interest expense, net (104 ) (45 ) (39 ) (72 ) (105 ) (365 ) Other, net 14 8 5 19 76 122 Total other (deductions) and income (90 ) (37 ) (34 ) (53 ) (29 ) (243 ) Income (loss) from continuing operations before income taxes 375 179 26 291 (103 ) 768 Income taxes 84 44 (7 ) 2 (31 ) 92 Net income (loss) from continuing operations after income taxes 291 135 33 289 (72 ) 676 Net income from discontinued operations after income taxes — — — — — — Net income (loss) 291 135 33 289 (72 ) 676 Net income attributable to noncontrolling interests — — — — — — Net income (loss) attributable to common shareholders $ 291 $ 135 $ 33 $ 289 $ (72 ) $ 676 Three Months Ended September 30, 2021 Operating revenues $ 1,789 $ 818 $ 770 $ 1,470 $ 16 $ 4,863 Operating expenses Purchased power and fuel 703 277 290 540 (1 ) 1,809 Operating and maintenance 330 263 205 278 111 1,187 Depreciation and amortization 304 86 142 210 16 758 Taxes other than income taxes 91 51 72 127 12 353 Total operating expenses 1,428 677 709 1,155 138 4,107 Operating income (loss) 361 141 61 315 (122 ) 756 Other income and (deductions) Interest expense, net (98 ) (40 ) (36 ) (67 ) (83 ) (324 ) Other, net 13 7 7 16 17 60 Total other deductions (85 ) (33 ) (29 ) (51 ) (66 ) (264 ) Income (loss) from continuing operations before income taxes 276 108 32 264 (188 ) 492 Income taxes 56 (3 ) (4 ) (2 ) (12 ) 35 Net income (loss) from continuing operations after income taxes 220 111 36 266 (176 ) 457 Net income from discontinued operations after income taxes — — — — 772 772 Net income 220 111 36 266 596 1,229 Net income attributable to noncontrolling interests — — — — 26 26 Net income attributable to common shareholders $ 220 $ 111 $ 36 $ 266 $ 570 $ 1,203 Change in Net income from continuing operations 2021 to 2022 $ 71 $ 24 $ (3 ) $ 23 $ 104 $ 219 Consolidating Statements of Operations (unaudited) (in millions) ComEd PECO BGE PHI Other (a) Exelon Nine Months Ended September 30, 2022 Operating revenues $ 4,536 $ 2,877 $ 2,810 $ 4,223 $ (34 ) $ 14,412 Operating expenses Purchased power and fuel 1,041 1,093 1,093 1,609 (1 ) 4,835 Operating and maintenance 1,045 705 658 867 161 3,436 Depreciation and amortization 982 277 470 697 46 2,472 Taxes other than income taxes 289 155 225 362 30 1,061 Total operating expenses 3,357 2,230 2,446 3,535 236 11,804 Loss on sales of assets and businesses (2 ) — — — — (2 ) Operating income (loss) 1,177 647 364 688 (270 ) 2,606 Other income and (deductions) Interest expense, net (308 ) (129 ) (110 ) (216 ) (300 ) (1,063 ) Other, net 40 23 16 56 300 435 Total other (deductions) and income (268 ) (106 ) (94 ) (160 ) — (628 ) Income (loss) from continuing operations before income taxes 909 541 270 528 (270 ) 1,978 Income taxes 203 67 3 10 73 356 Net income (loss) from continuing operations after income taxes 706 474 267 518 (343 ) 1,622 Net income from discontinued operations after income taxes — — — — 117 117 Net income (loss) 706 474 267 518 (226 ) 1,739 Net income attributable to noncontrolling interests — — — — 1 1 Net income (loss) attributable to common shareholders $ 706 $ 474 $ 267 $ 518 $ (227 ) $ 1,738 Nine Months Ended September 30, 2021 Operating revenues $ 4,840 $ 2,399 $ 2,426 $ 3,854 $ (5 ) $ 13,514 Operating expenses Purchased power and fuel 1,728 800 840 1,414 (1 ) 4,781 Operating and maintenance 969 706 595 790 280 3,340 Depreciation and amortization 893 259 434 614 53 2,253 Taxes other than income taxes 243 143 211 349 37 983 Total operating expenses 3,833 1,908 2,080 3,167 369 11,357 Gain on sales of assets and businesses — — — — 3 3 Operating income (loss) 1,007 491 346 687 (371 ) 2,160 Other income and (deductions) Interest expense, net (292 ) (119 ) (103 ) (201 ) (252 ) (967 ) Other, net 35 20 23 52 60 190 Total other (deductions) (257 ) (99 ) (80 ) (149 ) (192 ) (777 ) Income (loss) from continuing operations before income taxes 750 392 266 538 (563 ) 1,383 Income taxes 141 9 (24 ) 3 (53 ) 76 Net income (loss) from continuing operations after income taxes 609 383 290 535 (510 ) 1,307 Net income from discontinued operations after income taxes — — — — 134 134 Net income (loss) 609 383 290 535 (376 ) 1,441 Net income attributable to noncontrolling interests — — — — 126 126 Net income (loss) attributable to common shareholders $ 609 $ 383 $ 290 $ 535 $ (502 ) $ 1,315 Change in Net income from continuing operations 2021 to 2022 $ 97 $ 91 $ (23 ) $ (17 ) $ 167 $ 315 __________ (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) September 30, 2022 December 31, 2021 Assets Current assets Cash and cash equivalents $ 446 $ 672 Restricted cash and cash equivalents 744 321 Accounts receivable Customer accounts receivable 2,129 2,189 Customer allowance for credit losses (341 ) (320 ) Customer accounts receivable, net 1,788 1,869 Other accounts receivable 1,726 1,068 Other allowance for credit losses (84 ) (72 ) Other accounts receivable, net 1,642 996 Inventories, net Fossil fuel 235 105 Materials and supplies 522 476 Regulatory assets 1,300 1,296 Other 378 387 Current assets of discontinued operations — 7,835 Total current assets 7,055 13,957 Property, plant, and equipment, net 67,572 64,558 Deferred debits and other assets Regulatory assets 8,224 8,224 Goodwill 6,630 6,630 Receivable related to Regulatory Agreement Units 2,658 — Investments 230 250 Other 1,086 885 Property, plant, and equipment, deferred debits, and other assets of discontinued operations — 38,509 Total deferred debits and other assets 18,828 54,498 Total assets $ 93,455 $ 133,013 Liabilities and shareholders’ equity Current liabilities Short-term borrowings $ 1,690 $ 1,248 Long-term debt due within one year 1,300 2,153 Accounts payable 2,693 2,379 Accrued expenses 1,213 1,137 Payables to affiliates 5 5 Regulatory liabilities 493 376 Mark-to-market derivative liabilities — 18 Unamortized energy contract liabilities 10 89 Other 1,313 766 Current liabilities of discontinued operations — 7,940 Total current liabilities 8,717 16,111 Long-term debt 35,283 30,749 Long-term debt to financing trusts 390 390 Deferred credits and other liabilities Deferred income taxes and unamortized investment tax credits 11,113 10,611 Regulatory liabilities 8,844 9,628 Pension obligations 1,366 2,051 Non-pension postretirement benefit obligations 796 811 Asset retirement obligations 266 271 Mark-to-market derivative liabilities 67 201 Unamortized energy contract liabilities 37 146 Other 1,994 1,573 Long-term debt, deferred credits, and other liabilities of discontinued operations — 25,676 Total deferred credits and other liabilities 24,483 50,968 Total liabilities 68,873 98,218 Commitments and contingencies Shareholders’ equity Common stock 20,895 20,324 Treasury stock, at cost (123 ) (123 ) Retained earnings 4,502 16,942 Accumulated other comprehensive loss, net (692 ) (2,750 ) Total shareholders’ equity 24,582 34,393 Noncontrolling interests — 402 Total equity 24,582 34,795 Total liabilities and shareholders’ equity $ 93,455 $ 133,013 Exelon Consolidated Statements of Cash Flows (unaudited) (in millions) Nine Months Ended September 30, 2022 2021 Cash flows from operating activities Net income $ 1,739 $ 1,441 Adjustments to reconcile net income to net cash flows provided by operating activities: Depreciation, amortization, and accretion, including nuclear fuel and energy contract amortization 2,679 6,204 Asset impairments 46 541 Gain on sales of assets and businesses (8 ) (147 ) Deferred income taxes and amortization of investment tax credits 256 (45 ) Net fair value changes related to derivatives (59 ) (1,244 ) Net realized and unrealized losses (gains) on NDT funds 205 (383 ) Net unrealized losses on equity investments 16 83 Other non-cash operating activities 265 (293 ) Changes in assets and liabilities: Accounts receivable (1,049 ) (254 ) Inventories (121 ) (101 ) Accounts payable and accrued expenses 823 354 Option premiums paid, net (39 ) (186 ) Collateral received, net 1,456 2,111 Income taxes 3 250 Regulatory assets and liabilities, net (689 ) (367 ) Pension and non-pension postretirement benefit contributions (596 ) (602 ) Other assets and liabilities (786 ) (3,221 ) Net cash flows provided by operating activities 4,141 4,141 Cash flows from investing activities Capital expenditures (5,179 ) (5,970 ) Proceeds from NDT fund sales 488 5,766 Investment in NDT funds (516 ) (5,900 ) Collection of DPP 169 3,052 Proceeds from sales of assets and businesses 16 801 Other investing activities 36 40 Net cash flows used in investing activities (4,986 ) (2,211 ) Cash flows from financing activities Changes in short-term borrowings (335 ) (744 ) Proceeds from short-term borrowings with maturities greater than 90 days 1,150 1,380 Repayments on short-term borrowings with maturities greater than 90 days (925 ) — Issuance of long-term debt 5,801 3,406 Retirement of long-term debt (2,067 ) (1,618 ) Issuance of common stock 563 — Dividends paid on common stock (999 ) (1,121 ) Acquisition of CENG noncontrolling interest — (885 ) Proceeds from employee stock plans 26 63 Transfer of cash, restricted cash, and cash equivalents to Constellation (2,594 ) — Other financing activities (121 ) (93 ) Net cash flows provided by financing activities 499 388 (Decrease) increase in cash, restricted cash, and cash equivalents (346 ) 2,318 Cash, restricted cash, and cash equivalents at beginning of period 1,619 1,166 Cash, restricted cash, and cash equivalents at end of period $ 1,273 $ 3,484 Exelon Reconciliation of GAAP Net Income (Loss) from Continuing Operations to Adjusted (non-GAAP) Operating Earnings and Analysis of Earnings Three Months Ended September 30, 2022 and 2021 (unaudited) (in millions, except per share data) Exelon Earnings per Diluted Share ComEd PECO BGE PHI Other (a) Exelon 2021 GAAP Net Income (Loss) from Continuing Operations $ 0.47 $ 220 $ 111 $ 36 $ 266 $ (176 ) $ 457 Mark-to-Market Impact of Economic Hedging Activities (net of taxes of $1) — — — — — 3 3 Cost Management Program (net of taxes of $0) — — 1 1 1 1 4 COVID-19 Direct Costs (net of taxes of $0) (1) — — 1 1 1 — 3 Asset Retirement Obligation (net of taxes of $1) — — — — 2 — 2 Acquisition Related Costs (net of taxes of $2) (2) 0.01 — — — — 7 7 ERP System Implementation Costs (net of taxes of $1) (3) — — — — — 4 4 Separation Costs (net of taxes of $2, $1, $1, $1, $3 and $8, respectively) (4) 0.02 4 2 2 3 5 16 Income Tax-Related Adjustments (entire amount represents tax (expense) (5) 0.03 — — — — 26 26 2021 Adjusted (non-GAAP) Operating Earnings (Loss) $ 0.53 $ 224 $ 114 $ 40 $ 272 $ (128 ) $ 522 Year Over Year Effects on Adjusted (non-GAAP) Operating Earnings: Weather $ 0.02 $ — (b) $ 21 $ — (b) $ 1 (b) $ — $ 22 Load (0.02 ) — (b) (17 ) — (b) (1 ) (b) — (18 ) Distribution and Transmission Rates (7) 0.12 39 (c) 35 (c) 26 (c) 21 (c) — 121 Other Energy Delivery (8) 0.12 83 (c) 14 (c) 2 (c) 18 (c) — 117 Operating and Maintenance Expense (9) 0.01 (27 ) 10 8 (7 ) 23 7 Pension and Non-Pension Postretirement Benefits 0.01 6 2 2 (1 ) 5 14 Depreciation and Amortization Expense (10) (0.05 ) (22 ) (5 ) (4 ) (20 ) 2 (49 ) Other (11) 0.01 (10 ) — (4 ) 3 20 9 Total Year Over Year Effects on Adjusted (non-GAAP) Operating Earnings $ 0.22 $ 69 $ 60 $ 30 $ 14 $ 50 $ 223 2022 GAAP Net Income (Loss) from Continuing Operations $ 0.68 $ 291 $ 135 $ 33 $ 289 $ (72 ) $ 676 Asset Retirement Obligation (net of taxes of $2) — — — — (4 ) — (4 ) Asset Impairments (net of taxes of $10) (6) 0.04 — — 37 — — 37 Separation Costs (net of taxes of $1, $0, $0, $0, $2, and $1, respectively) (4) — 2 1 1 1 (8 ) (3 ) Income Tax-Related Adjustments (entire amount represents tax expense) (5) 0.04 — 38 — — — 38 2022 Adjusted (non-GAAP) Operating Earnings (Loss) $ 0.75 $ 293 $ 174 $ 70 $ 286 $ (78 ) $ 745 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 2022 and 2021 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) Represents direct costs related to COVID-19 consisting primarily of costs to acquire personal protective equipment, costs for cleaning supplies and services, and costs to hire healthcare professionals to monitor the health of employees, which are recorded in Operating and maintenance expense. (2) Reflects certain BSC costs related to the acquisition of Electricite de France SA's (EDF's) interest in CENG, which was completed in the third quarter of 2021, that were historically allocated to Constellation Energy Generation, LLC (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. (3) Reflects costs related to a multi-year Enterprise Resource Program (ERP) system implementation, which are recorded in Operating and maintenance expense. (4) 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. (5) In 2022, for PECO, reflects an adjustment to exclude one-time non-cash impacts associated with the remeasurement of deferred income taxes as a result of the reduction in Pennsylvania corporate income tax rate. In 2021, for Corporate, primarily reflects the adjustment to deferred income taxes due to changes in forecasted apportionment. (6) Reflects costs related to the impairment of an office building at BGE, which are recorded in Operating and maintenance expenses. (7) 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 rate increases. (8) For ComEd, reflects increased electric distribution, transmission, and energy efficiency revenues due to higher fully recoverable costs. (9) Represents Operating and maintenance expense, excluding pension and non-pension postretirement benefits. For ComEd, primarily reflects higher contracting costs. For PECO, primarily reflects decreased storm costs, partially offset by increases in various expenses. For BGE, primarily reflects 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 and 2) an increase in Operating and maintenance expense with an offsetting increase in other income for costs billed to Constellation for services provided by Exelon through the Transition Services Agreement (TSA). (10) Reflects ongoing capital expenditures across all utilities. For ComEd, also reflects increased amortization of deferred energy efficiency costs. (11) For ComEd, includes increased charges related to the Energy Transition Assistance Charge rider which are fully recoverable in Other Energy Delivery. For Corporate, primarily reflects an increase in other income for costs billed to Constellation for services provided by Exelon through the TSA with an offsetting increase in Operating and maintenance expense, partially offset by an increase in interest expense. Exelon Reconciliation of GAAP Net Income (Loss) from Continuing Operations to Adjusted (non-GAAP) Operating Earnings and Analysis of Earnings Nine Months Ended September 30, 2022 and 2021 (unaudited) (in millions, except per share data) Exelon Earnings per Diluted Share ComEd PECO BGE PHI Other (a) Exelon 2021 GAAP Net Income (Loss) from Continuing Operations $ 1.33 $ 609 $ 383 $ 290 $ 535 $ (510 ) $ 1,307 Mark-to-Market Impact of Economic Hedging Activities (net of taxes of $2) 0.01 — — — — 6 6 Cost Management Program (net of taxes of $0) 0.01 — 1 1 1 2 5 COVID-19 Direct Costs (net of taxes of $1, $1, $1 and $3, respectively) (1) 0.01 — 3 2 2 — 7 Asset Retirement Obligation (net of taxes of $1) — — — — 2 — 2 Acquisition Related Costs (net of taxes of $5) (2) 0.02 — — — — 15 15 ERP System Implementation Costs (net of taxes of $0, $0, $0, $2 and $2, respectively) (3) 0.01 — 1 1 1 7 10 Separation Costs (net of taxes of $3, $1, $1, $2, $6 and $13, respectively) (4) 0.03 7 3 4 5 10 29 Income Tax-Related Adjustments (entire amount represents tax expense) (5) 0.02 — — — — 24 24 2021 Adjusted (non-GAAP) Operating Earnings (Loss) $ 1.43 $ 617 $ 391 $ 298 $ 546 $ (447 ) $ 1,405 Year Over Year Effects on Adjusted (non-GAAP) Operating Earnings: Weather $ 0.01 $ — (b) $ 14 $ — (b) $ (2 ) (b) $ — $ 12 Load (0.01 ) — (b) (6 ) — (b) (4 ) (b) — (10 ) Distribution and Transmission Rates (7) 0.30 82 (c) 101 (c) 46 (c) 68 (c) — 297 Other Energy Delivery (8) 0.32 192 (c) 31 (c) 31 (c) 59 (c) — 313 Operating and Maintenance Expense (9) (0.13 ) (68 ) (7 ) (23 ) (64 ) 31 (131 ) Pension and Non-Pension Postretirement Benefits 0.04 16 5 7 1 9 38 Depreciation and Amortization Expense (10) (0.16 ) (64 ) (14 ) (26 ) (60 ) 3 (161 ) Other (11) 0.05 (60 ) 2 (25 ) (21 ) 152 48 Share Differential (12) (0.01 ) — — — — — — Total Year Over Year Effects on Adjusted (non-GAAP) Operating Earnings $ 0.41 $ 98 $ 126 $ 10 $ (23 ) $ 195 $ 406 2022 GAAP Net Income (Loss) from Continuing Operations $ 1.65 $ 706 $ 474 $ 267 $ 518 $ (343 ) $ 1,622 Asset Retirement Obligation (net of taxes of $2) — — — — (4 ) — (4 ) ERP System Implementation Costs (net of taxes of $0) (3) — — — — — 1 1 Asset Impairments (net of taxes of $10) (6) 0.04 — — 37 — — 37 Separation Costs (net of taxes of $4, $2, $2, $3, $0, and $10, respectively) (4) 0.03 9 4 4 7 1 25 Income Tax-Related Adjustments (entire amount represents tax expense) (5) 0.13 — 38 — 3 89 130 2022 Adjusted (non-GAAP) Operating Earnings (Loss) $ 1.84 $ 715 $ 517 $ 308 $ 523 $ (252 ) $ 1,811 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 2022 and 2021 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) Represents direct costs related to COVID-19 consisting primarily of costs to acquire personal protective equipment, costs for cleaning supplies and services, and costs to hire healthcare professionals to monitor the health of employees, which are recorded in Operating and maintenance expense. (2) Reflects certain BSC costs related to the acquisition of Electricite de France SA's (EDF's) interest in CENG, which was completed in the third quarter of 2021, that were historically allocated to Constellation Energy Generation, LLC (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. (3) Reflects costs related to a multi-year Enterprise Resource Program (ERP) system implementation, which are recorded in Operating and maintenance expense. (4) 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. (5) In 2022, for PECO, reflects an adjustment to exclude one-time non-cash impacts associated with the remeasurement of deferred income taxes as a result of the reduction in Pennsylvania corporate income tax rate. In 2022, for Corporate, 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 partially offset by a one-time impact associated with a state tax benefit. In 2021, for Corporate, primarily reflects the adjustment to deferred income taxes due to changes in forecasted apportionment. (6) Reflects costs related to the impairment of an office building at BGE, which are recorded in Operating and maintenance expenses. (7) 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 and transmission rate increases. For PHI, reflects increased revenue primarily due to distribution rate increases. (8) For ComEd, reflects increased electric distribution, transmission, and energy efficiency revenues due to higher fully recoverable costs. For PHI, includes the regulatory asset amortization of the ACE Power Purchase Agreement termination obligation recorded in the first quarter of 2022, which is fully recoverable. (9) Represents Operating and maintenance expense, excluding pension and non-pension postretirement benefits. For ComEd, partially reflects the voluntary customer refund related to the ICC investigation of matters identified in the Deferred Prosecution Agreement and higher contracting costs. For PECO, reflects increases in various expenses, mostly offset by decreased storm costs. For BGE, reflects higher credit loss expense and decreased storm costs. For PHI, includes increased storm costs, increased credit loss expense, and higher contracting costs partially due to timing of maintenance projects. 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 Q3 2022 includes one month of costs for the period prior to the separation compared to nine months of costs included in YTD Q3 2021) and 2) an increase in Operating and maintenance expense with an offsetting increase in other income for costs billed to Constellation for services provided by Exelon through the Transition Services Agreement (TSA). (10) Reflects ongoing capital expenditures across all utilities. For ComEd, also reflects increased amortization of deferred energy efficiency costs. For PHI, includes the regulatory asset amortization of the ACE Power Purchase Agreement termination obligation recorded in the first quarter of 2022, which is fully recoverable in Other Energy Delivery. (11) For ComEd, includes increased charges related to the Energy Transition Assistance Charge rider which are fully recoverable in Other Energy Delivery. For PECO, includes an increase in tax repairs deduction. For PHI, primarily reflects increased interest expense and the timing of tax expense driven by the timing of excess deferred tax amortization, which will reverse by the end of the year. For Corporate, primarily reflects an increase in other income for costs billed to Constellation for services provided by Exelon through the TSA with an offsetting increase in Operating and maintenance expense, partially offset by an increase in interest expense. (12) 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 September 30, 2022 and 2021 Electric Deliveries (in GWhs) Revenue (in millions) 2022 2021 % Change Weather - Normal % Change 2022 2021 % Change Electric Deliveries and Revenues(a) Residential 8,467 8,986 (5.8 )% 0.1 % $ 935 $ 978 (4.4 )% Small commercial & industrial 8,003 8,243 (2.9 )% (1.4 )% 217 433 (49.9 )% Large commercial & industrial 6,973 7,109 (1.9 )% (0.8 )% (117 ) 148 (179.1 )% Public authorities & electric railroads 216 228 (5.3 )% (4.8 )% 3 11 (72.7 )% Other(b) — — n/a n/a 246 245 0.4 % Total electric revenues(c) 23,659 24,566 (3.7 )% (0.7 )% 1,284 1,815 (29.3 )% Other Revenues(d) 94 (26 ) (461.5 )% Total Electric Revenues $ 1,378 $ 1,789 (23.0 )% Purchased Power $ 121 $ 703 (82.8 )% % Change Heating and Cooling Degree-Days 2022 2021 Normal From 2021 From Normal Heating Degree-Days 75 16 79 368.8 % (5.1 )% Cooling Degree-Days 778 866 722 (10.2 )% 7.8 % Nine Months Ended September 30, 2022 and 2021 Electric Deliveries (in GWhs) Revenue (in millions) 2022 2021 % Change Weather - Normal % Change 2022 2021 % Change Electric Deliveries and Revenues(a) Residential 21,835 22,228 (1.8 )% (0.4 )% $ 2,610 $ 2,479 5.3 % Small commercial & industrial 22,705 22,610 0.4 % 0.6 % 953 1,176 (19.0 )% Large commercial & industrial 20,361 19,956 2.0 % 2.3 % 48 420 (88.6 )% Public authorities & electric railroads 659 698 (5.6 )% (5.5 )% 22 33 (33.3 )% Other(b) — — n/a n/a 718 676 6.2 % Total electric revenues(c) 65,560 65,492 0.1 % 0.7 % 4,351 4,784 (9.1 )% Other Revenues(d) 185 56 230.4 % Total Electric Revenues $ 4,536 $ 4,840 (6.3 )% Purchased Power $ 1,041 $ 1,728 (39.8 )% % Change Heating and Cooling Degree-Days 2022 2021 Normal From 2021 From Normal Heating Degree-Days 3,953 3,632 3,861 8.8 % 2.4 % Cooling Degree-Days 1,155 1,257 988 (8.1 )% 16.9 % Number of Electric Customers 2022 2021 Residential 3,711,894 3,699,376 Small commercial & industrial 390,303 389,348 Large commercial & industrial 1,892 1,865 Public authorities & electric railroads 4,854 4,853 Total 4,108,943 4,095,442 __________ (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 $6 million and $9 million for the three months ended September 30, 2022 and 2021, respectively, and $14 million and $19 million for the nine months ended September 30, 2022 and 2021, respectively. (d) Includes alternative revenue programs and late payment charges. PECO Statistics Three Months Ended September 30, 2022 and 2021 Electric and Natural Gas Deliveries Revenue (in millions) 2022 2021 % Change Weather- Normal % Change 2022 2021 % Change Electric (in GWhs) Electric Deliveries and Revenues(a) Residential 4,386 4,318 1.6 % (5.6 )% $ 620 $ 509 21.8 % Small commercial & industrial 2,139 2,157 (0.8 )% (3.3 )% 149 113 31.9 % Large commercial & industrial 3,943 3,880 1.6 % 0.1 % 93 67 38.8 % Public authorities & electric railroads 172 155 11.0 % 10.5 % 8 7 14.3 % Other(b) — — n/a n/a 71 61 16.4 % Total electric revenues(c) 10,640 10,510 1.2 % (2.8 )% 941 757 24.3 % Other Revenues(d) — 5 (100.0 )% Total Electric Revenues 941 762 23.5 % Natural Gas (in mmcfs) Natural Gas Deliveries and Revenues(e) Residential 2,197 2,244 (2.1 )% 0.3 % 46 36 27.8 % Small commercial & industrial 2,054 1,926 6.6 % 9.5 % 20 13 53.8 % Large commercial & industrial 6 4 50.0 % 19.6 % — — n/a Transportation 5,162 5,356 (3.6 )% (9.3 )% 5 5 — % Other(f) — — n/a n/a 2 2 — % Total natural gas revenues(g) 9,419 9,530 (1.2 )% (3.1 )% 73 56 30.4 % Other Revenues(d) — — 100.0 % Total Natural Gas Revenues 73 56 30.4 % Total Electric and Natural Gas Revenues $ 1,014 $ 818 24.0 % Purchased Power and Fuel $ 403 $ 277 45.5 % % Change Heating and Cooling Degree-Days 2022 2021 Normal From 2021 From Normal Heating Degree-Days 19 4 24 375.0 % (20.8 )% Cooling Degree-Days 1,290 1,094 1,021 17.9 % 26.3 % Nine Months Ended September 30, 2022 and 2021 Electric and Natural Gas Deliveries Revenue (in millions) 2022 2021 % Change Weather- Normal % Change 2022 2021 % Change Electric (in GWhs) Electric Deliveries and Revenues(a) Residential 11,204 11,201 — % (2.0 )% $ 1,538 $ 1,325 16.1 % Small commercial & industrial 5,889 5,796 1.6 % 0.8 % 386 312 23.7 % Large commercial & industrial 10,691 10,627 0.6 % — % 229 183 25.1 % Public authorities & electric railroads 489 425 15.1 % 15.1 % 23 24 (4.2 )% Other(b) — — n/a n/a 202 167 21.0 % Total electric revenues(c) 28,273 28,049 0.8 % (0.4 )% 2,378 2,011 18.2 % Other Revenues(d) 12 22 (45.5 )% Total Electric Revenues 2,390 2,033 17.6 % Natural Gas (in mmcfs) Natural Gas Deliveries and Revenues(e) Residential 28,240 27,945 1.1 % 4.1 % 335 251 33.5 % Small commercial & industrial 16,238 15,217 6.7 % 8.5 % 125 94 33.0 % Large commercial & industrial 20 13 53.8 % 14.0 % — — n/a Transportation 18,508 18,474 0.2 % (0.7 )% 19 17 11.8 % Other(f) — — n/a n/a 7 4 75.0 % Total natural gas revenues(g) 63,006 61,649 2.2 % 3.8 % 486 366 32.8 % Other Revenues(d) 1 — 100.0 % Total Natural Gas Revenues 487 366 33.1 % Total Electric and Natural Gas Revenues $ 2,877 $ 2,399 19.9 % Purchased Power and Fuel $ 1,093 $ 800 36.6 % % Change Heating and Cooling Degree-Days 2022 2021 Normal From 2021 From Normal Heating Degree-Days 2,632 2,710 2,864 (2.9 )% (8.1 )% Cooling Degree-Days 1,725 1,517 1,413 13.7 % 22.1 % Number of Electric Customers 2022 2021 Number of Natural Gas Customers 2022 2021 Residential 1,523,269 1,514,836 Residential 500,934 495,752 Small commercial & industrial 155,516 155,006 Small commercial & industrial 46,074 44,435 Large commercial & industrial 3,120 3,108 Large commercial & industrial 9 6 Public authorities & electric railroads 10,393 10,271 Transportation 656 670 Total 1,692,298 1,683,221 Total 547,673 540,863 __________ (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 $3 million and $2 million for the three months ended September 30, 2022 and 2021, and $5 million and $5 million for the nine months ended September 30, 2022 and 2021, respectively. (d) Includes alternative revenue programs and late payment charges. (e) Reflects delivery volumes and revenues from customers purchasing natural gas directly from PECO and customers purchasing natural gas from a competitive natural gas supplier as all customers are assessed distribution charges. For customers purchasing natural gas from PECO, revenue also reflects the cost of natural gas. (f) Includes revenues primarily from off-system sales. (g) Includes operating revenues from affiliates totaling less than $1 million for both the three months ended September 30, 2022 and 2021, respectively, and $1 million and $1 million for the nine months ended September 30, 2022 and 2021, respectively. BGE Statistics Three Months Ended September 30, 2022 and 2021 Electric and Natural Gas Deliveries Revenue (in millions) 2022 2021 % Change Weather- Normal % Change 2022 2021 % Change Electric (in GWhs) Electric Deliveries and Revenues(a) Residential 3,664 3,736 (1.9 )% — % $ 406 $ 383 6.0 % Small commercial & industrial 754 779 (3.2 )% — % 88 73 20.5 % Large commercial & industrial 3,703 3,753 (1.3 )% (0.6 )% 158 128 23.4 % Public authorities & electric railroads 46 52 (11.5 )% (9.1 )% 7 7 — % Other(b) — — n/a n/a 101 104 (2.9 )% Total electric revenues(c) 8,167 8,320 (1.8 )% (0.4 )% 760 695 9.4 % Other Revenues(d) (3 ) (18 ) (83.3 )% Total Electric Revenues 757 677 11.8 % Natural Gas (in mmcfs) Natural Gas Deliveries and Revenues(e) Residential 2,321 2,359 (1.6 )% (2.4 )% 70 57 22.8 % Small commercial & industrial 844 902 (6.4 )% (6.5 )% 13 10 30.0 % Large commercial & industrial 7,943 7,296 8.9 % 10.3 % 28 22 27.3 % Other(f) 82 612 (86.6 )% n/a 2 6 (66.7 )% Total natural gas revenues(g) 11,190 11,169 0.2 % 5.9 % 113 95 18.9 % Other Revenues(d) — (2 ) (100.0 )% Total Natural Gas Revenues 113 93 21.5 % Total Electric and Natural Gas Revenues $ 870 $ 770 13.0 % Purchased Power and Fuel $ 350 $ 290 20.7 % % Change Heating and Cooling Degree-Days 2022 2021 Normal From 2021 From Normal Heating Degree-Days 50 42 71 19.0 % (29.6 )% Cooling Degree-Days 711 739 613 (3.8 )% 16.0 % Nine Months Ended September 30, 2022 and 2021 Electric and Natural Gas Deliveries Revenue (in millions) 2022 2021 % Change Weather- Normal % Change 2022 2021 % Change Electric (in GWhs) Electric Deliveries and Revenues(a) Residential 9,985 10,046 (0.6 )% (0.5 )% $ 1,158 $ 1,044 10.9 % Small commercial & industrial 2,126 2,128 (0.1 )% 0.3 % 239 202 18.3 % Large commercial & industrial 10,090 10,054 0.4 % 0.8 % 418 342 22.2 % Public authorities & electric railroads 152 149 2.0 % 2.9 % 20 20 — % Other(b) — — n/a n/a 297 269 10.4 % Total electric revenues(c) 22,353 22,377 (0.1 )% 0.2 % 2,132 1,877 13.6 % Other Revenues(d) (10 ) (11 ) (9.1 )% Total Electric Revenues 2,122 1,866 13.7 % Natural Gas (in mmcfs) Natural Gas Deliveries and Revenues(e) Residential 28,382 25,758 10.2 % 7.0 % 448 354 26.6 % Small commercial & industrial 6,895 6,226 10.7 % 6.9 % 77 59 30.5 % Large commercial & industrial 31,854 29,559 7.8 % 7.5 % 128 103 24.3 % Other(f) 5,472 9,125 (40.0 )% n/a 50 41 22.0 % Total natural gas revenues(g) 72,603 70,668 2.7 % 7.2 % 703 557 26.2 % Other Revenues(d) (15 ) 3 (600.0 )% Total Natural Gas Revenues 688 560 22.9 % Total Electric and Natural Gas Revenues $ 2,810 $ 2,426 15.8 % Purchased Power and Fuel $ 1,093 $ 840 30.1 % % Change Heating and Cooling Degree-Days 2022 2021 Normal From 2021 From Normal Heating Degree-Days 2,737 2,708 2,958 1.1 % (7.5 )% Cooling Degree-Days 990 1,039 872 (4.7 )% 13.5 % Number of Electric Customers 2022 2021 Number of Natural Gas Customers 2022 2021 Residential 1,200,786 1,194,254 Residential 653,413 649,745 Small commercial & industrial 115,778 114,814 Small commercial & industrial 38,128 38,216 Large commercial & industrial 12,774 12,584 Large commercial & industrial 6,222 6,167 Public authorities & electric railroads 266 268 Total 1,329,604 1,321,920 Total 697,763 694,128 __________ (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 and $4 million for the three months ended September 30, 2022 and 2021, respectively, and $5 million and $10 million for the nine months ended September 30, 2022 and 2021, respectively. (d) Includes alternative revenue programs and late payment charges. (e) Reflects delivery volumes and revenues from customers purchasing natural gas directly from BGE and customers purchasing natural gas from a competitive natural gas supplier as all customers are assessed distribution charges. For customers purchasing natural gas from BGE, revenue also reflects the cost of natural gas. (f) Includes revenues primarily from off-system sales. (g) Includes operating revenues from affiliates totaling $1 million and $3 million for the three months ended September 30, 2022 and 2021, respectively, and $8 million and $10 million for the nine months ended September 30, 2022 and 2021, respectively. Pepco Statistics Three Months Ended September 30, 2022 and 2021 Electric Deliveries (in GWhs) Revenue (in millions) 2022 2021 % Change Weather- Normal % Change 2022 2021 % Change Electric Deliveries and Revenues(a) Residential 2,384 2,457 (3.0 )% (2.4 )% $ 318 $ 309 2.9 % Small commercial & industrial 299 306 (2.3 )% (1.9 )% 44 36 22.2 % Large commercial & industrial 3,866 3,862 0.1 % 0.4 % 303 244 24.2 % Public authorities & electric railroads 176 165 6.7 % 6.5 % 9 8 12.5 % Other(b) — — n/a n/a 57 53 7.5 % Total electric revenues(c) 6,725 6,790 (1.0 )% (0.5 )% 731 650 12.5 % Other Revenues(d) (7 ) 10 (170.0 )% Total Electric Revenues $ 724 $ 660 9.7 % Purchased Power $ 230 $ 172 33.7 % % Change Heating and Cooling Degree-Days 2022 2021 Normal From 2021 From Normal Heating Degree-Days 19 — 7 n/a 171.4 % Cooling Degree-Days 1,218 1,221 1,185 (0.2 )% 2.8 % Nine Months Ended September 30, 2022 and 2021 Electric Deliveries (in GWhs) Revenue (in millions) 2022 2021 % Change Weather- Normal % Change 2022 2021 % Change Electric Deliveries and Revenues(a) Residential 6,390 6,495 (1.6 )% (1.5 )% $ 826 $ 785 5.2 % Small commercial & industrial 855 884 (3.3 )% (3.4 )% 117 101 15.8 % Large commercial & industrial 10,499 10,091 4.0 % 3.9 % 806 616 30.8 % Public authorities & electric railroads 451 506 (10.9 )% (10.8 )% 25 24 4.2 % Other(b) — — n/a n/a 157 154 1.9 % Total electric revenues(c) 18,195 17,976 1.2 % 1.2 % 1,931 1,680 14.9 % Other Revenues(d) (12 ) 56 (121.4 )% Total Electric Revenues $ 1,919 $ 1,736 10.5 % Purchased Power $ 605 $ 471 28.5 % % Change Heating and Cooling Degree-Days 2022 2021 Normal From 2021 From Normal Heating Degree-Days 2,357 2,343 2,429 0.6 % (3.0 )% Cooling Degree-Days 1,721 1,724 1,696 (0.2 )% 1.5 % Number of Electric Customers 2022 2021 Residential 853,873 839,574 Small commercial & industrial 54,423 53,849 Large commercial & industrial 22,789 22,586 Public authorities & electric railroads 196 179 Total 931,281 916,188 __________ (a) Reflects revenues from customers purchasing electricity directly from Pepco and customers purchasing electricity from a competitive electric generation supplier as all customers are assessed distribution charges. For customers purchasing electricity from Pepco, 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 and $2 million for the three months ended September 30, 2022 and 2021, respectively, and $4 million and $4 million for the nine months ended September 30, 2022 and 2021, respectively. (d) Includes alternative revenue programs and late payment charge revenues. DPL Statistics Three Months Ended September 30, 2022 and 2021 Electric and Natural Gas Deliveries Revenue (in millions) 2022 2021 % Change Weather - Normal % Change 2022 2021 % Change Electric (in GWhs) Electric Deliveries and Revenues(a) Residential 1,574 1,594 (1.3 )% (2.7 )% $ 207 $ 198 4.5 % Small commercial & industrial 667 671 (0.6 )% (1.2 )% 65 53 22.6 % Large commercial & industrial 1,167 1,160 0.6 % 0.2 % 43 27 59.3 % Public authorities & electric railroads 10 10 — % (1.6 )% 4 4 — % Other(b) — — n/a n/a 55 56 (1.8 )% Total electric revenues(c) 3,418 3,435 (0.5 )% (1.4 )% 374 338 10.7 % Other Revenues(d) — (1 ) (100.0 )% Total Electric Revenues 374 337 11.0 % Natural Gas (in mmcfs) Natural Gas Deliveries and Revenues(e) Residential 374 399 (6.3 )% (15.2 )% 10 10 — % Small commercial & industrial 331 352 (6.0 )% (10.2 )% 6 5 20.0 % Large commercial & industrial 397 395 0.5 % 0.6 % 3 2 50.0 % Transportation 1,284 1,303 (1.5 )% (2.1 )% 3 3 — % Other(g) — — n/a n/a 16 3 433.3 % Total natural gas revenues 2,386 2,449 (2.6 )% (5.2 )% 38 23 65.2 % Other Revenues(f) — — n/a Total Natural Gas Revenues 38 23 65.2 % Total Electric and Natural Gas Revenues $ 412 $ 360 14.4 % Purchased Power and Fuel $ 183 $ 138 32.6 % Electric Service Territory % Change Heating and Cooling Degree-Days 2022 2021 Normal From 2021 From Normal Heating Degree-Days 31 9 24 244.4 % 29.2 % Cooling Degree-Days 1,046 998 911 4.8 % 14.8 % Natural Gas Service Territory % Change Heating Degree-Days 2022 2021 Normal From 2021 From Normal Heating Degree-Days 32 11 36 190.9 % (11.1 )% Nine Months Ended September 30, 2022 and 2021 Electric and Natural Gas Deliveries Revenue (in millions) 2022 2021 % Change Weather - Normal % Change 2022 2021 % Change Electric (in GWhs) Electric Deliveries and Revenues(a) Residential 4,257 4,245 0.3 % (0.1 )% $ 570 $ 535 6.5 % Small commercial & industrial 1,809 1,787 1.2 % 1.1 % 173 145 19.3 % Large commercial & industrial 3,207 3,145 2.0 % 2.0 % 99 70 41.4 % Public authorities & electric railroads 32 34 (5.9 )% (4.7 )% 11 11 — % Other(b) — — n/a n/a 168 143 17.5 % Total rate-regulated electric revenues(c) 9,305 9,211 1.0 % 0.8 % 1,021 904 12.9 % Other Revenues(d) (2 ) 18 (111.1 )% Total Electric Revenues 1,019 922 10.5 % Natural Gas (in mmcfs) Natural Gas Deliveries and Revenues(e) Residential 5,810 5,507 5.5 % 4.7 % 77 67 14.9 % Small commercial & industrial 2,882 2,647 8.9 % 9.1 % 35 29 20.7 % Large commercial & industrial 1,259 1,247 1.0 % 0.9 % 9 5 80.0 % Transportation 4,934 4,997 (1.3 )% (1.1 )% 11 11 — % Other(f) — — n/a n/a 25 6 316.7 % Total rate-regulated natural gas revenues 14,885 14,398 3.4 % 3.2 % 157 118 33.1 % Other Revenues(d) — — n/a Total Natural Gas Revenues 157 118 33.1 % Total Electric and Natural Gas Revenues $ 1,176 $ 1,040 13.1 % Purchased Power and Fuel $ 507 $ 402 26.1 % Electric Service Territory % Change Heating and Cooling Degree-Days 2022 2021 Normal From 2021 From Normal Heating Degree-Days 2,724 2,739 2,889 (0.5 )% (5.7 )% Cooling Degree-Days 1,392 1,376 1,260 1.2 % 10.5 % Natural Gas Service Territory % Change Heating Degree-Days 2022 2021 Normal From 2021 From Normal Heating Degree-Days 2,828 2,848 3,029 (0.7 )% (6.6 )% Number of Electric Customers 2022 2021 Number of Natural Gas Customers 2022 2021 Residential 480,779 476,008 Residential 129,005 127,740 Small commercial & industrial 63,685 62,990 Small commercial & industrial 10,044 9,935 Large commercial & industrial 1,230 1,215 Large commercial & industrial 16 21 Public authorities & electric railroads 597 605 Transportation 156 158 Total 546,291 540,818 Total 139,221 137,854 __________ (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 $1 million and $2 million for the three months ended September 30, 2022 and 2021, respectively and $5 million and $6 million for the nine months ended September 30, 2022 and 2021, 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 September 30, 2022 and 2021 Electric Deliveries (in GWhs) Revenue (in millions) 2022 2021 % Change Weather - Normal % Change 2022 2021 % Change Electric Deliveries and Revenues(a) Residential 1,516 1,540 (1.6 )% (2.8 )% $ 283 $ 275 2.9 % Small commercial & industrial 478 435 9.9 % 10.1 % 70 61 14.8 % Large commercial & industrial 885 874 1.3 % 0.9 % 55 49 12.2 % Public authorities & electric railroads 9 9 — % (1.6 )% 3 3 — % Other(b) — — n/a n/a 54 63 (14.3 )% Total electric revenues(c) 2,888 2,858 1.0 % 0.3 % 465 451 3.1 % Other Revenues(d) (3 ) — n/a Total Electric Revenues $ 462 $ 451 2.4 % Purchased Power $ 197 $ 230 (14.3 )% % Change Heating and Cooling Degree-Days 2022 2021 Normal From 2021 From Normal Heating Degree-Days 38 11 30 245.5 % 26.7 % Cooling Degree-Days 955 922 872 3.6 % 9.5 % Nine Months Ended September 30, 2022 and 2021 Electric Deliveries (in GWhs) Revenue (in millions) 2022 2021 % Change Weather - Normal % Change 2022 2021 % Change Electric Deliveries and Revenues(a) Residential 3,293 3,443 (4.4 )% (4.6 )% $ 611 $ 604 1.2 % Small commercial & industrial 1,179 1,073 9.9 % 9.8 % 171 146 17.1 % Large commercial & industrial 2,396 2,351 1.9 % 1.8 % 151 139 8.6 % Public authorities & electric railroads 34 33 3.0 % — % 11 10 10.0 % Other(b) — — n/a n/a 190 158 20.3 % Total electric revenues(c) 6,902 6,900 — % (0.2 )% 1,134 1,057 7.3 % Other Revenues(d) (14 ) 23 (160.9 )% Total Electric Revenues $ 1,120 $ 1,080 3.7 % Purchased Power $ 497 $ 541 (8.1 )% % Change Heating and Cooling Degree-Days 2022 2021 Normal From 2021 From Normal Heating Degree-Days 3,007 2,884 3,024 4.3 % (0.6 )% Cooling Degree-Days 1,231 1,246 1,178 (1.2 )% 4.5 % Number of Electric Customers 2022 2021 Residential 501,869 499,775 Small commercial & industrial 62,204 61,838 Large commercial & industrial 3,075 3,209 Public authorities & electric railroads 731 707 Total 567,879 565,529 __________ (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 less than $1 million and $1 million for the three months ended September 30, 2022 and 2021, respectively, and $2 million for both the nine months ended September 30, 2022 and 2021. (d) Includes alternative revenue programs. View source version on businesswire.com: https://www.businesswire.com/news/home/20221103005600/en/