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EXELON CORP - Quarter Report: 2021 March (Form 10-Q)


UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the Quarterly Period Ended March 31, 2021
or
☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Commission File NumberName of Registrant; State or Other Jurisdiction of Incorporation; Address of Principal Executive Offices; and Telephone NumberIRS Employer Identification Number
001-16169EXELON CORPORATION23-2990190
(a Pennsylvania corporation)
10 South Dearborn Street
P.O. Box 805379
Chicago, Illinois 60680-5379
(800) 483-3220
333-85496EXELON GENERATION COMPANY, LLC23-3064219
(a Pennsylvania limited liability company)
300 Exelon Way
Kennett Square, Pennsylvania 19348-2473
(610) 765-5959
001-01839COMMONWEALTH EDISON COMPANY36-0938600
(an Illinois corporation)
440 South LaSalle Street
Chicago, Illinois 60605-1028
(312) 394-4321
000-16844PECO ENERGY COMPANY23-0970240
(a Pennsylvania corporation)
P.O. Box 8699
2301 Market Street
Philadelphia, Pennsylvania 19101-8699
(215) 841-4000
001-01910BALTIMORE GAS AND ELECTRIC COMPANY52-0280210
(a Maryland corporation)
2 Center Plaza
110 West Fayette Street
Baltimore, Maryland 21201-3708
(410) 234-5000
001-31403PEPCO HOLDINGS LLC52-2297449
(a Delaware limited liability company)
701 Ninth Street, N.W.
Washington, District of Columbia 20068
(202) 872-2000
001-01072POTOMAC ELECTRIC POWER COMPANY53-0127880
(a District of Columbia and Virginia corporation)
701 Ninth Street, N.W.
Washington, District of Columbia 20068
(202) 872-2000
001-01405DELMARVA POWER & LIGHT COMPANY51-0084283
(a Delaware and Virginia corporation)
500 North Wakefield Drive
Newark, Delaware 19702
(202) 872-2000
001-03559ATLANTIC CITY ELECTRIC COMPANY21-0398280
(a New Jersey corporation)
500 North Wakefield Drive
Newark, Delaware 19702
(202) 872-2000



Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
EXELON CORPORATION:
Common Stock, without par valueEXCThe Nasdaq Stock Market LLC
PECO ENERGY COMPANY:
Trust Receipts of PECO Energy Capital Trust III, each representing a 7.38% Cumulative Preferred Security, Series D, $25 stated value, issued by PECO Energy Capital, L.P. and unconditionally guaranteed by PECO Energy CompanyEXC/28New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes  x  No  o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).  Yes  x  No  o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Exelon CorporationLarge Accelerated FilerxAccelerated Filer
Non-accelerated Filer
Smaller Reporting Company
Emerging Growth Company
Exelon Generation Company, LLCLarge Accelerated Filer
Accelerated Filer
Non-accelerated FilerxSmaller Reporting Company
Emerging Growth Company
Commonwealth Edison CompanyLarge Accelerated Filer
Accelerated Filer
Non-accelerated FilerxSmaller Reporting Company
Emerging Growth Company
PECO Energy CompanyLarge Accelerated Filer
Accelerated Filer
Non-accelerated FilerxSmaller Reporting Company
Emerging Growth Company
Baltimore Gas and Electric CompanyLarge Accelerated Filer
Accelerated Filer
Non-accelerated FilerxSmaller Reporting Company
Emerging Growth Company
Pepco Holdings LLCLarge Accelerated Filer
Accelerated Filer
Non-accelerated FilerxSmaller Reporting Company
Emerging Growth Company
Potomac Electric Power CompanyLarge Accelerated Filer
Accelerated Filer
Non-accelerated FilerxSmaller Reporting Company
Emerging Growth Company
Delmarva Power & Light CompanyLarge Accelerated Filer
Accelerated Filer
Non-accelerated FilerxSmaller Reporting Company
Emerging Growth Company
Atlantic City Electric CompanyLarge Accelerated Filer
Accelerated Filer
Non-accelerated FilerxSmaller Reporting Company
Emerging Growth Company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).  Yes    No  x

The number of shares outstanding of each registrant’s common stock as of March 31, 2021 was:
Exelon Corporation Common Stock, without par value977,175,235
Exelon Generation Company, LLCnot applicable
Commonwealth Edison Company Common Stock, $12.50 par value127,021,380
PECO Energy Company Common Stock, without par value170,478,507
Baltimore Gas and Electric Company Common Stock, without par value1,000
Pepco Holdings LLCnot applicable
Potomac Electric Power Company Common Stock, $0.01 par value100
Delmarva Power & Light Company Common Stock, $2.25 par value1,000
Atlantic City Electric Company Common Stock, $3.00 par value8,546,017



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Table of Contents
GLOSSARY OF TERMS AND ABBREVIATIONS
Exelon Corporation and Related Entities
ExelonExelon Corporation
GenerationExelon Generation Company, LLC
ComEdCommonwealth Edison Company
PECOPECO Energy Company
BGEBaltimore Gas and Electric Company
Pepco Holdings or PHIPepco Holdings LLC
PepcoPotomac Electric Power Company
DPLDelmarva Power & Light Company
ACEAtlantic City Electric Company
RegistrantsExelon, Generation, ComEd, PECO, BGE, PHI, Pepco, DPL, and ACE, collectively
Utility RegistrantsComEd, PECO, BGE, Pepco, DPL, and ACE, collectively
ACE Funding or ATFAtlantic City Electric Transition Funding LLC
Antelope ValleyAntelope Valley Solar Ranch One
BSCExelon Business Services Company, LLC
CENGConstellation Energy Nuclear Group, LLC
ConstellationConstellation Energy Group, Inc.
EGR IVExGen Renewables IV, LLC
EGRPExGen Renewables Partners, LLC
Exelon CorporateExelon in its corporate capacity as a holding company
FitzPatrickJames A. FitzPatrick nuclear generating station
NERNewEnergy Receivables LLC
PCIPotomac Capital Investment Corporation and its subsidiaries
PECO Trust IIIPECO Energy Capital Trust III
PECO Trust IVPECO Energy Capital Trust IV
Pepco Energy ServicesPepco Energy Services, Inc. and its subsidiaries
PHI CorporatePHI in its corporate capacity as a holding company
PHISCOPHI Service Company
RPGRenewable Power Generation
SolGenSolGen, LLC
TMIThree Mile Island nuclear facility
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GLOSSARY OF TERMS AND ABBREVIATIONS
Other Terms and Abbreviations
Note - of the 2020 Form 10-KReference to specific Combined Note to Consolidated Financial Statements within Exelon's 2020 Annual Report on Form 10-K
AECAlternative Energy Credit that is issued for each megawatt hour of generation from a qualified alternative energy source
AESOAlberta Electric Systems Operator
AFUDCAllowance for Funds Used During Construction
AMIAdvanced Metering Infrastructure
AOCIAccumulated Other Comprehensive Income (Loss)
ARCAsset Retirement Cost
AROAsset Retirement Obligation
BGSBasic Generation Service
CBACollective Bargaining Agreement
CERCLAComprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended
CESClean Energy Standard
Clean Water ActFederal Water Pollution Control Amendments of 1972, as amended
CODMChief operating decision maker(s)
D.C. Circuit CourtUnited States Court of Appeals for the District of Columbia Circuit
DC PLUGDistrict of Columbia Power Line Undergrounding Initiative
DCPSCPublic Service Commission of the District of Columbia
DOEUnited States Department of Energy
DOEEDistrict of Columbia Department of Energy & Environment
DOJUnited States Department of Justice
DPPDeferred Purchase Price
DPSCDelaware Public Service Commission
EDFElectricite de France SA and its subsidiaries
EIMAEnergy Infrastructure Modernization Act (Illinois Senate Bill 1652 and Illinois House Bill 3036)
EPAUnited States Environmental Protection Agency
ERCOTElectric Reliability Council of Texas
FASBFinancial Accounting Standards Board
FEJAIllinois Public Act 99-0906 or Future Energy Jobs Act
FERCFederal Energy Regulatory Commission
FRCCFlorida Reliability Coordinating Council
FRRFixed Resource Requirement
GAAPGenerally Accepted Accounting Principles in the United States
GCRGas Cost Rate
GSAGeneration Supply Adjustment
IBEWInternational Brotherhood of Electrical Workers
ICCIllinois Commerce Commission
ICEIntercontinental Exchange
IPAIllinois Power Agency
IRCInternal Revenue Code
IRSInternal Revenue Service
ISOIndependent System Operator
ISO-NEIndependent System Operator New England Inc.
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Table of Contents
GLOSSARY OF TERMS AND ABBREVIATIONS
Other Terms and Abbreviations
LIBORLondon Interbank Offered Rate
MDEMaryland Department of the Environment
MDPSCMaryland Public Service Commission
MGPManufactured Gas Plant
MISOMidcontinent Independent System Operator, Inc.
mmcfMillion Cubic Feet
MOPRMinimum Offer Price Rule
MPSCMissouri Public Service Commission
MWMegawatt
MWhMegawatt hour
NAVNet Asset Value
N/ANot applicable
NDTNuclear Decommissioning Trust
NERCNorth American Electric Reliability Corporation
NGXNatural Gas Exchange
NJBPUNew Jersey Board of Public Utilities
Non-Regulatory Agreement UnitsNuclear generating units or portions thereof whose decommissioning-related activities are not subject to contractual elimination under regulatory accounting
NOSANuclear Operating Services Agreement
NPNSNormal Purchase Normal Sale scope exception
NRCNuclear Regulatory Commission
NYISONew York Independent System Operator Inc.
NYMEXNew York Mercantile Exchange
NYPSCNew York Public Service Commission
OCIOther Comprehensive Income
OIESOOntario Independent Electricity System Operator
OPEBOther Postretirement Employee Benefits
PAPUCPennsylvania Public Utility Commission
PGCPurchased Gas Cost Clause
PG&EPacific Gas and Electric Company
PJMPJM Interconnection, LLC
POLRProvider of Last Resort
PPAPower Purchase Agreement
PPEProperty, plant, and equipment
Price-Anderson ActPrice-Anderson Nuclear Industries Indemnity Act of 1957
PRPPotentially Responsible Parties
PSDAR
Post-Shutdown Decommissioning Activities Report
PSEGPublic Service Enterprise Group Incorporated
PUCTPublic Utility Commission of Texas
RECRenewable Energy Credit which is issued for each megawatt hour of generation from a qualified renewable energy source
Regulatory Agreement UnitsNuclear generating units or portions thereof whose decommissioning-related activities are subject to contractual elimination under regulatory accounting
RFPRequest for Proposal
RiderReconcilable Surcharge Recovery Mechanism
RMCRisk Management Committee
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GLOSSARY OF TERMS AND ABBREVIATIONS
Other Terms and Abbreviations
RNFRevenues Net of Purchased Power and Fuel Expense
ROEReturn on equity
ROURight-of-use
RTORegional Transmission Organization
S&PStandard & Poor’s Ratings Services
SECUnited States Securities and Exchange Commission
SERCSERC Reliability Corporation (formerly Southeast Electric Reliability Council)
SNFSpent Nuclear Fuel
SOSStandard Offer Service
STRIDEMaryland Strategic Infrastructure Development and Enhancement Program
Transition BondsTransition Bonds issued by ACE Funding
VIEVariable Interest Entity
WECCWestern Electric Coordinating Council
ZECZero Emission Credit, or Zero Emission Certificate
ZESZero Emission Standard
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FILING FORMAT
This combined Form 10-Q is being filed separately by Exelon Corporation, Exelon Generation Company, LLC, Commonwealth Edison Company, PECO Energy Company, Baltimore Gas and Electric Company, Pepco Holdings LLC, Potomac Electric Power Company, Delmarva Power & Light Company, and Atlantic City Electric Company (Registrants). Information contained herein relating to any individual Registrant is filed by such Registrant on its own behalf. No Registrant makes any representation as to information relating to any other Registrant.
CAUTIONARY STATEMENTS REGARDING FORWARD-LOOKING INFORMATION
This Report contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to risks and uncertainties including, among others, those related to the timing, manner, tax-free nature, and expected benefits associated with the potential separation of Exelon’s competitive power generation and customer-facing energy business from its six regulated electric and gas utilities. Words such as “could,” “may,” “expects,” “anticipates,” “will,” “targets,” “goals,” “projects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “predicts,” and variations on such words, and similar expressions that reflect our current views with respect to future events and operational, economic, and financial performance, are intended to identify such forward-looking statements.
The factors that could cause actual results to differ materially from the forward-looking statements made by the Registrants include those factors discussed herein, as well as the items discussed in (1) the Registrants' combined 2020 Annual Report on Form 10-K in (a) Part I, ITEM 1A. Risk Factors, (b) Part II, ITEM 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations, and (c) Part II, ITEM 8. Financial Statements and Supplementary Data: Note 19, Commitments and Contingencies; (2) this Quarterly Report on Form 10-Q in (a) Part II, ITEM 1A. Risk Factors, (b) Part I, ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations, and (c) Part I, ITEM 1. Financial Statements: Note 14, Commitments and Contingencies; and (3) other factors discussed in filings with the SEC by the Registrants.
Investors are cautioned not to place undue reliance on these forward-looking statements, which apply only as of the date of this Report. None of the Registrants undertakes any obligation to publicly release any revision to its forward-looking statements to reflect events or circumstances after the date of this Report.
WHERE TO FIND MORE INFORMATION
The SEC maintains an Internet site at www.sec.gov that contains reports, proxy and information statements, and other information that the Registrants file electronically with the SEC. These documents are also available to the public from commercial document retrieval services and the Registrants' website at www.exeloncorp.com. Information contained on the Registrants' website shall not be deemed incorporated into, or to be a part of, this Report.
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PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
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EXELON CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(Unaudited)
Three Months Ended
March 31,
(In millions, except per share data)20212020
Operating revenues
Competitive businesses revenues$5,265 $4,404 
Rate-regulated utility revenues4,496 4,276 
Revenues from alternative revenue programs129 67 
Total operating revenues9,890 8,747 
Operating expenses
Competitive businesses purchased power and fuel4,610 2,710 
Rate-regulated utility purchased power and fuel1,358 1,157 
Operating and maintenance1,979 2,204 
Depreciation and amortization1,697 1,021 
Taxes other than income taxes438 437 
Total operating expenses10,082 7,529 
Gain on sales of assets and businesses71 
Operating (loss) income(121)1,220 
Other income and (deductions)
Interest expense, net(380)(404)
Interest expense to affiliates(6)(6)
Other, net225 (725)
Total other income and (deductions) (161)(1,135)
(Loss) income before income taxes(282)85 
Income taxes(19)(294)
Equity in losses of unconsolidated affiliates(1)(3)
Net (loss) income(264)376 
Net income (loss) attributable to noncontrolling interests25 (206)
Net (loss) income attributable to common shareholders$(289)$582 
Comprehensive income, net of income taxes
Net (loss) income$(264)$376 
Other comprehensive income (loss), net of income taxes
Pension and non-pension postretirement benefit plans:
Prior service benefit reclassified to periodic benefit cost(1)(10)
Actuarial loss reclassified to periodic benefit cost56 47 
Pension and non-pension postretirement benefit plan valuation adjustment(2)(7)
Unrealized loss on cash flow hedges— (1)
Unrealized gain (loss) on foreign currency translation(8)
Other comprehensive income54 21 
Comprehensive (loss) income(210)397 
Comprehensive income (loss) attributable to noncontrolling interests 25 (206)
Comprehensive (loss) income attributable to common shareholders$(235)$603 
Average shares of common stock outstanding:
Basic977 975 
Assumed exercise and/or distributions of stock-based awards— 
Diluted(a)
977 976 
(Losses) earnings per average common share
Basic$(0.30)$0.60 
Diluted$(0.30)$0.60 
__________
(a)The number of stock options not included in the calculation of diluted common shares outstanding due to their antidilutive effect was less than 1 million for the three months ended March 31, 2021 and March 31, 2020.
See the Combined Notes to Consolidated Financial Statements
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EXELON CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Three Months Ended
March 31,
(In millions)20212020
Cash flows from operating activities
Net (loss) income$(264)$376 
Adjustments to reconcile net income to net cash flows provided by operating activities:
Depreciation, amortization, and accretion, including nuclear fuel and energy contract amortization2,104 1,378 
Asset impairments
Gain on sales of assets and businesses(71)— 
Deferred income taxes and amortization of investment tax credits(142)(245)
Net fair value changes related to derivatives(178)(132)
Net realized and unrealized (gains) losses on NDT funds(118)651 
Unrealized loss on equity investments23 — 
Other non-cash operating activities(170)273 
Changes in assets and liabilities:
Accounts receivable(372)800 
Inventories77 81 
Accounts payable and accrued expenses(176)(976)
Option premiums received (paid), net16 (38)
Collateral received (posted), net273 (21)
Income taxes113 (56)
Pension and non-pension postretirement benefit contributions(537)(531)
Other assets and liabilities(1,840)(488)
Net cash flows (used in) provided by operating activities(1,261)1,080 
Cash flows from investing activities
Capital expenditures(2,140)(2,016)
Proceeds from NDT fund sales2,908 1,183 
Investment in NDT funds(2,939)(1,234)
Collection of DPP1,574 — 
Proceeds from sales of assets and businesses680 — 
Other investing activities12 (8)
Net cash flows provided by (used in) investing activities95 (2,075)
Cash flows from financing activities
Changes in short-term borrowings597 109 
Proceeds from short-term borrowings with maturities greater than 90 days500 500 
Issuance of long-term debt1,705 2,652 
Retirement of long-term debt(79)(1,032)
Dividends paid on common stock(374)(373)
Proceeds from employee stock plans31 30 
Other financing activities(46)(21)
Net cash flows provided by financing activities2,334 1,865 
Increase in cash, restricted cash, and cash equivalents1,168 870 
Cash, restricted cash, and cash equivalents at beginning of period1,166 1,122 
Cash, restricted cash, and cash equivalents at end of period$2,334 $1,992 
Supplemental cash flow information
Decrease in capital expenditures not paid$(324)$(180)
Increase in DPP1,339 — 
See the Combined Notes to Consolidated Financial Statements
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EXELON CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In millions)March 31, 2021December 31, 2020
ASSETS
Current assets
Cash and cash equivalents$1,908 $663 
Restricted cash and cash equivalents374 438 
Accounts receivable
Customer accounts receivable4,0173,597
Customer allowance for credit losses(442)(366)
Customer accounts receivable, net3,575 3,231 
Other accounts receivable1,3201,469
Other allowance for credit losses(79)(71)
Other accounts receivable, net1,241 1,398 
Mark-to-market derivative assets568 644 
Unamortized energy contract assets38 38 
Inventories, net
Fossil fuel and emission allowances205 297 
Materials and supplies1,427 1,425 
Regulatory assets1,269 1,228 
Renewable energy credits694 633 
Assets held for sale 11 958 
Other1,687 1,609 
Total current assets12,997 12,562 
Property, plant, and equipment (net of accumulated depreciation and amortization of $28,121 and $26,727 as of March 31, 2021 and December 31, 2020, respectively)
82,588 82,584 
Deferred debits and other assets
Regulatory assets8,810 8,759 
Nuclear decommissioning trust funds14,688 14,464 
Investments431 440 
Goodwill6,677 6,677 
Mark-to-market derivative assets491 555 
Unamortized energy contract assets285 294 
Other3,033 2,982 
Total deferred debits and other assets34,415 34,171 
Total assets(a)
$130,000 $129,317 
See the Combined Notes to Consolidated Financial Statements
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EXELON CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In millions)March 31, 2021December 31, 2020
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Short-term borrowings$3,128 $2,031 
Long-term debt due within one year2,281 1,819 
Accounts payable3,430 3,562 
Accrued expenses1,729 2,078 
Payables to affiliates
Regulatory liabilities663 581 
Mark-to-market derivative liabilities422 295 
Unamortized energy contract liabilities98 100 
Renewable energy credit obligation645 661 
Liabilities held for sale 375 
Other1,176 1,264 
Total current liabilities13,580 12,771 
Long-term debt36,248 35,093 
Long-term debt to financing trusts390 390 
Deferred credits and other liabilities
Deferred income taxes and unamortized investment tax credits13,129 13,035 
Asset retirement obligations12,405 12,300 
Pension obligations3,951 4,503 
Non-pension postretirement benefit obligations1,988 2,011 
Spent nuclear fuel obligation1,208 1,208 
Regulatory liabilities9,130 9,485 
Mark-to-market derivative liabilities453 473 
Unamortized energy contract liabilities217 238 
Other2,988 2,942 
Total deferred credits and other liabilities45,469 46,195 
Total liabilities(a)
95,687 94,449 
Commitments and contingencies
Shareholders’ equity
Common stock (No par value, 2,000 shares authorized, 977 shares and 976 shares outstanding at March 31, 2021 and December 31, 2020, respectively)
19,412 19,373 
Treasury stock, at cost (2 shares at March 31, 2021 and December 31, 2020)
(123)(123)
Retained earnings16,072 16,735 
Accumulated other comprehensive loss, net(3,346)(3,400)
Total shareholders’ equity32,015 32,585 
Noncontrolling interests2,298 2,283 
Total equity34,313 34,868 
Total liabilities and shareholders’ equity$130,000 $129,317 
__________
(a)Exelon’s consolidated assets include $9,985 million and $10,200 million at March 31, 2021 and December 31, 2020, respectively, of certain VIEs that can only be used to settle the liabilities of the VIE. Exelon’s consolidated liabilities include $3,578 million and $3,598 million at March 31, 2021 and December 31, 2020, respectively, of certain VIEs for which the VIE creditors do not have recourse to Exelon. See Note 16 — Variable Interest Entities for additional information.
See the Combined Notes to Consolidated Financial Statements
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EXELON CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY
(Unaudited)
Three Months Ended March 31, 2021
(In millions, shares
in thousands)
Issued
Shares
Common
Stock
Treasury
Stock
Retained
Earnings
Accumulated
Other
Comprehensive
Loss, net
Noncontrolling
Interests
Total Shareholders'
Equity
Balance, December 31, 2020977,466 $19,373 $(123)$16,735 $(3,400)$2,283 $34,868 
Net (loss) income— — — (289)— 25 (264)
Long-term incentive plan activity640 — — — — 
Employee stock purchase plan issuances902 34 — — — — 34 
Changes in equity of noncontrolling interests— — — — — (10)(10)
Common stock dividends
($0.38/common share)
— — — (374)— — (374)
Other comprehensive income, net of income taxes— — — — 54 — 54 
Balance, March 31, 2021979,008 $19,412 $(123)$16,072 $(3,346)$2,298 $34,313 



Three Months Ended March 31, 2020
(In millions, shares
in thousands)
Issued
Shares
Common
Stock
Treasury
Stock
Retained
Earnings
Accumulated
Other
Comprehensive
Loss, net
Noncontrolling
Interests
Total Shareholders'
Equity
Balance, December 31, 2019974,416 $19,274 $(123)$16,267 $(3,194)$2,349 $34,573 
Net income (loss)— — — 582 — (206)376 
Long-term incentive plan activity1,354 (4)— — — — (4)
Employee stock purchase plan issuances470 31 — — — — 31 
Changes in equity of noncontrolling interests— — — — — (9)(9)
Sale of noncontrolling interests— — — — — 
Common stock dividends
($0.38/common share)
— — — (374)— — (374)
Other comprehensive income, net of income taxes— — — — 21 — 21 
Balance, March 31, 2020976,240 $19,303 $(123)$16,475 $(3,173)$2,134 $34,616 
See the Combined Notes to Consolidated Financial Statements
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EXELON GENERATION COMPANY, LLC AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(Unaudited)
Three Months Ended
March 31,
(In millions)20212020
Operating revenues
Operating revenues$5,264 $4,403 
Operating revenues from affiliates295 330 
Total operating revenues5,559 4,733 
Operating expenses
Purchased power and fuel4,610 2,710 
Purchased power and fuel from affiliates— (6)
Operating and maintenance856 1,121 
Operating and maintenance from affiliates145 142 
Depreciation and amortization940 304 
Taxes other than income taxes121 129 
Total operating expenses6,672 4,400 
Gain on sales of assets and businesses71 — 
Operating (loss) income(1,042)333 
Other income and (deductions)
Interest expense, net(68)(100)
Interest expense to affiliates(4)(9)
Other, net167 (771)
Total other income and (deductions)95 (880)
Loss before income taxes(947)(547)
Income taxes(179)(389)
Equity in losses of unconsolidated affiliates(1)(3)
Net loss(769)(161)
Net income (loss) attributable to noncontrolling interests24 (206)
Net (loss) income attributable to membership interest$(793)$45 
Comprehensive income, net of income taxes
Net loss$(769)$(161)
Other comprehensive income (loss), net of income taxes
Unrealized loss on cash flow hedges— (1)
Unrealized gain (loss) on foreign currency translation(8)
Other comprehensive income (loss), net of income taxes(9)
Comprehensive loss(768)(170)
Comprehensive income (loss) attributable to noncontrolling interests24 (206)
Comprehensive (loss) income attributable to membership interest$(792)$36 
See the Combined Notes to Consolidated Financial Statements
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EXELON GENERATION COMPANY, LLC AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Three Months Ended
March 31,
(In millions)20212020
Cash flows from operating activities
Net loss$(769)$(161)
Adjustments to reconcile net income to net cash flows provided by operating activities:
Depreciation, amortization, and accretion, including nuclear fuel and energy contract amortization1,346 661 
Asset impairments
Gain on sales of assets and businesses(71)— 
Deferred income taxes and amortization of investment tax credits(123)(329)
Net fair value changes related to derivatives(178)(127)
Net realized and unrealized (gains) losses on NDT funds(118)651 
Unrealized loss on equity investments23 — 
Other non-cash operating activities(202)205 
Changes in assets and liabilities:
Accounts receivable(453)787 
Receivables from and payables to affiliates, net59 34 
Inventories50 39 
Accounts payable and accrued expenses208 (614)
Option premiums received (paid), net16 (38)
Collateral received (posted), net270 (22)
Income taxes(55)(58)
Pension and non-pension postretirement benefit contributions(205)(232)
Other assets and liabilities(1,411)(184)
Net cash flows (used in) provided by operating activities(1,612)620 
Cash flows from investing activities
Capital expenditures(382)(558)
Proceeds from NDT fund sales2,908 1,183 
Investment in NDT funds(2,939)(1,234)
Collection of DPP1,574 — 
Proceeds from sales of assets and businesses680 — 
Changes in Exelon intercompany money pool— (254)
Other investing activities(2)(8)
Net cash flows provided by (used in) investing activities1,839 (871)
Cash flows from financing activities
Changes in short-term borrowings997 275 
Proceeds from short-term borrowings with maturities greater than 90 days— 500 
Issuance of long-term debt1,502 
Retirement of long-term debt(35)(1,028)
Changes in Exelon intercompany money pool(285)— 
Distributions to member(458)(468)
Other financing activities(12)(8)
Net cash flows provided by financing activities208 773 
Increase in cash, restricted cash, and cash equivalents435 522 
Cash, restricted cash, and cash equivalents at beginning of period327 449 
Cash, restricted cash, and cash equivalents at end of period$762 $971 
Supplemental cash flow information
Decrease in capital expenditures not paid$(37)$(56)
Increase in DPP1,339 — 
    
See the Combined Notes to Consolidated Financial Statements
16




Table of Contents
EXELON GENERATION COMPANY, LLC AND SUBSIDIARY COMPANIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In millions)March 31, 2021December 31, 2020
ASSETS
Current assets
Cash and cash equivalents$721 $226 
Restricted cash and cash equivalents41 89 
Accounts receivable
Customer accounts receivable1,8571,330
Customer allowance for credit losses(65)(32)
Customer accounts receivable, net1,792 1,298 
Other accounts receivable348352
Other accounts receivable, net348 352 
Mark-to-market derivative assets569 644 
Receivables from affiliates106 153 
Unamortized energy contract assets38 38 
Inventories, net
Fossil fuel and emission allowances175 233 
Materials and supplies973 978 
Renewable energy credits676 621 
Assets held for sale11 958 
Other1,290 1,357 
Total current assets6,740 6,947 
Property, plant, and equipment (net of accumulated depreciation and amortization of $14,355 and $13,370 as of March 31, 2021 and December 31, 2020, respectively)
21,311 22,214 
Deferred debits and other assets
Nuclear decommissioning trust funds14,688 14,464 
Investments178 184 
Goodwill47 47 
Mark-to-market derivative assets491 555 
Prepaid pension asset1,736 1,558 
Unamortized energy contract assets285 293 
Deferred income taxes15 
Other1,835 1,826 
Total deferred debits and other assets19,275 18,933 
Total assets(a)
$47,326 $48,094 
See the Combined Notes to Consolidated Financial Statements
17




Table of Contents
EXELON GENERATION COMPANY, LLC AND SUBSIDIARY COMPANIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In millions)March 31, 2021December 31, 2020
LIABILITIES AND EQUITY
Current liabilities
Short-term borrowings$1,837 $840 
Long-term debt due within one year699 197 
Accounts payable1,529 1,253 
Accrued expenses692 788 
Payables to affiliates125 107 
Borrowings from Exelon intercompany money pool— 285 
Mark-to-market derivative liabilities392 262 
Unamortized energy contract liabilities
Renewable energy credit obligation645 661 
Liabilities held for sale375 
Other371 444 
Total current liabilities6,298 5,219 
Long-term debt5,038 5,566 
Long-term debt to affiliates323 324 
Deferred credits and other liabilities
Deferred income taxes and unamortized investment tax credits3,542 3,656 
Asset retirement obligations12,157 12,054 
Non-pension postretirement benefit obligations857 858 
Spent nuclear fuel obligation1,208 1,208 
Payables to affiliates2,865 3,017 
Mark-to-market derivative liabilities190 205 
Unamortized energy contract liabilities
Other1,405 1,308 
Total deferred credits and other liabilities22,227 22,309 
Total liabilities(a)
33,886 33,418 
Commitments and contingencies
Equity
Member’s equity
Membership interest9,624 9,624 
Undistributed earnings1,554 2,805 
Accumulated other comprehensive loss, net(29)(30)
Total member’s equity11,149 12,399 
Noncontrolling interests2,291 2,277 
Total equity13,440 14,676 
Total liabilities and equity$47,326 $48,094 
__________
(a)Generation’s consolidated assets include $9,967 million and $10,182 million at March 31, 2021 and December 31, 2020, respectively, of certain VIEs that can only be used to settle the liabilities of the VIE. Generation’s consolidated liabilities include $3,557 million and $3,572 million at March 31, 2021 and December 31, 2020, respectively, of certain VIEs for which the VIE creditors do not have recourse to Generation. See Note 16 — Variable Interest Entities for additional information.
See the Combined Notes to Consolidated Financial Statements
18




Table of Contents
EXELON GENERATION COMPANY, LLC AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(Unaudited)
Three Months Ended March 31, 2021
Member’s Equity
(In millions)Membership
Interest
Undistributed
Earnings
Accumulated
Other
Comprehensive
Loss, net
Noncontrolling
Interests
Total Equity
Balance, December 31, 2020$9,624 $2,805 $(30)$2,277 $14,676 
Net (loss) income— (793)— 24 (769)
Changes in equity of noncontrolling interests— — — (10)(10)
Distributions to member— (458)— — (458)
Other comprehensive income, net of income taxes— — — 
Balance, March 31, 2021$9,624 $1,554 $(29)$2,291 $13,440 

Three Months Ended March 31, 2020
Member’s Equity
(In millions)Membership
Interest
Undistributed
Earnings
Accumulated
Other
Comprehensive
Loss, net
Noncontrolling
Interests
Total Equity
Balance, December 31, 2019$9,566 $3,950 $(32)$2,346 $15,830 
Net income (loss)— 45 — (206)(161)
Changes in equity of noncontrolling interests— — — (11)(11)
Sale of noncontrolling interests— — — 
Distributions to member— (468)— — (468)
Other comprehensive loss, net of income taxes— — (9)— (9)
Balance, March 31, 2020$9,568 $3,527 $(41)$2,129 $15,183 

See the Combined Notes to Consolidated Financial Statements
19




Table of Contents
COMMONWEALTH EDISON COMPANY AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(Unaudited)
Three Months Ended
March 31,
(In millions)20212020
Operating revenues
Electric operating revenues$1,475 $1,422 
Revenues from alternative revenue programs54 12 
Operating revenues from affiliates
Total operating revenues1,535 1,439 
Operating expenses
Purchased power442 389 
Purchased power from affiliate85 97 
Operating and maintenance245 243 
Operating and maintenance from affiliates71 74 
Depreciation and amortization292 273 
Taxes other than income taxes75 75 
Total operating expenses1,210 1,151 
Operating income325 288 
Other income and (deductions)
Interest expense, net(93)(91)
Interest expense to affiliates(3)(3)
Other, net10 
Total other income and (deductions)(89)(84)
Income before income taxes236 204 
Income taxes39 36 
Net income $197 $168 
Comprehensive income$197 $168 

20




Table of Contents
COMMONWEALTH EDISON COMPANY AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Three Months Ended
March 31,
(In millions)20212020
Cash flows from operating activities
Net income$197 $168 
Adjustments to reconcile net income to net cash flows provided by operating activities:
Depreciation and amortization292 273 
Deferred income taxes and amortization of investment tax credits63 42 
Other non-cash operating activities(9)16 
Changes in assets and liabilities:
Accounts receivable23 
Receivables from and payables to affiliates, net(15)(6)
Inventories(1)(2)
Accounts payable and accrued expenses (176)(147)
Collateral received (posted), net
Income taxes(23)(7)
Pension and non-pension postretirement benefit contributions(171)(143)
Other assets and liabilities(159)(132)
Net cash flows provided by operating activities26 74 
Cash flows from investing activities
Capital expenditures(613)(506)
Other investing activities
Net cash flows used in investing activities(606)(501)
Cash flows from financing activities
Changes in short-term borrowings(188)(130)
Issuance of long-term debt700 1,000 
Dividends paid on common stock(127)(125)
Contributions from parent198 125 
Other financing activities(9)(13)
Net cash flows provided by financing activities574 857 
(Decrease) increase in cash, restricted cash, and cash equivalents(6)430 
Cash, restricted cash, and cash equivalents at beginning of period405 403 
Cash, restricted cash, and cash equivalents at end of period$399 $833 
Supplemental cash flow information
Decrease in capital expenditures not paid$(107)$(5)
See the Combined Notes to Consolidated Financial Statements
21




Table of Contents
COMMONWEALTH EDISON COMPANY AND SUBSIDIARY COMPANIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In millions)March 31, 2021December 31, 2020
ASSETS
Current assets
   Cash and cash equivalents$86 $83 
   Restricted cash and cash equivalents270 279 
   Accounts receivable
   Customer accounts receivable626656
   Customer allowance for credit losses(103)(97)
       Customer accounts receivable, net523 559 
   Other accounts receivable243239
   Other allowance for credit losses(22)(21)
       Other accounts receivable, net 221 218 
   Receivables from affiliates21 22 
   Inventories, net170 170 
   Regulatory assets294 279 
   Other55 49 
   Total current assets1,640 1,659 
Property, plant, and equipment (net of accumulated depreciation and amortization of $5,811 and $5,672 as of March 31, 2021 and December 31, 2020, respectively)
24,840 24,557 
Deferred debits and other assets
   Regulatory assets1,840 1,749 
   Investments
   Goodwill2,625 2,625 
   Receivables from affiliates2,375 2,541 
   Prepaid pension asset1,165 1,022 
   Other334 307 
   Total deferred debits and other assets8,345 8,250 
Total assets$34,825 $34,466 
See the Combined Notes to Consolidated Financial Statements
22




Table of Contents
COMMONWEALTH EDISON COMPANY AND SUBSIDIARY COMPANIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In millions)March 31, 2021December 31, 2020
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
   Short-term borrowings$135 $323 
   Long-term debt due within one year350 350 
   Accounts payable533 683 
   Accrued expenses242 390 
   Payables to affiliates80 96 
   Customer deposits84 86 
   Regulatory liabilities360 289 
   Mark-to-market derivative liabilities31 33 
   Other128 143 
   Total current liabilities1,943 2,393 
Long-term debt9,324 8,633 
Long-term debt to financing trust205 205 
Deferred credits and other liabilities
   Deferred income taxes and unamortized investment tax credits4,427 4,341 
   Asset retirement obligations127 126 
   Non-pension postretirement benefits obligations177 173 
   Regulatory liabilities6,172 6,403 
   Mark-to-market derivative liabilities264 268 
   Other589 595 
   Total deferred credits and other liabilities11,756 11,906 
   Total liabilities23,228 23,137 
Commitments and contingencies
Shareholders’ equity
   Common stock 1,588 1,588 
   Other paid-in capital8,483 8,285 
   Retained deficit unappropriated(1,639)(1,639)
   Retained earnings appropriated3,165 3,095 
   Total shareholders’ equity11,597 11,329 
Total liabilities and shareholders’ equity$34,825 $34,466 
See the Combined Notes to Consolidated Financial Statements
23




Table of Contents
COMMONWEALTH EDISON COMPANY AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY
(Unaudited)
Three Months Ended March 31, 2021
(In millions)Common
Stock
Other
Paid-In
Capital
Retained Deficit
Unappropriated
Retained
Earnings
Appropriated
Total
Shareholders’
Equity
Balance, December 31, 2020$1,588 $8,285 $(1,639)$3,095 $11,329 
Net income— — 197 — 197 
Appropriation of retained earnings for future dividends— — (197)197 — 
Common stock dividends— — — (127)(127)
Contributions from parent— 198 — — 198 
Balance, March 31, 2021$1,588 $8,483 $(1,639)$3,165 $11,597 
Three Months Ended March 31, 2020
(In millions)Common
Stock
Other
Paid-In
Capital
Retained Deficit
Unappropriated
Retained
Earnings
Appropriated
Total
Shareholders’
Equity
Balance, December 31, 2019$1,588 $7,572 $(1,639)$3,156 $10,677 
Net income— — 168 — 168 
Appropriation of retained earnings for future dividends— — (168)168 — 
Common stock dividends— — — (125)(125)
Contributions from parent— 125 — — 125 
Balance, March 31, 2020$1,588 $7,697 $(1,639)$3,199 $10,845 
See the Combined Notes to Consolidated Financial Statements
24




Table of Contents

PECO ENERGY COMPANY AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(Unaudited)
 Three Months Ended
March 31,
(In millions)20212020
Operating revenues
Electric operating revenues$649 $600 
Natural gas operating revenues228 209 
Revenues from alternative revenue programs10 
Operating revenues from affiliates
Total operating revenues889 813 
Operating expenses
Purchased power 189 164 
Purchased fuel86 83 
Purchased power from affiliate41 36 
Operating and maintenance193 179 
Operating and maintenance from affiliates41 38 
Depreciation and amortization86 86 
Taxes other than income taxes43 39 
Total operating expenses679 625 
Operating income210 188 
Other income and (deductions)
Interest expense, net(35)(33)
Interest expense to affiliates(3)(3)
Other, net
Total other income and (deductions)(33)(33)
Income before income taxes177 155 
Income taxes10 15 
Net income$167 $140 
Comprehensive income$167 $140 
See the Combined Notes to Consolidated Financial Statements
25




Table of Contents
PECO ENERGY COMPANY AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Three Months Ended
March 31,
(In millions)20212020
Cash flows from operating activities
Net income$167 $140 
Adjustments to reconcile net income to net cash flows provided by operating activities:
Depreciation and amortization86 86 
Deferred income taxes and amortization of investment tax credits
Other non-cash operating activities12 22 
Changes in assets and liabilities:
Accounts receivable(5)14 
Receivables from and payables to affiliates, net(2)(3)
Inventories13 15 
Accounts payable and accrued expenses (36)(45)
Income taxes14 
Pension and non-pension postretirement benefit contributions(16)(16)
Other assets and liabilities(103)(84)
Net cash flows provided by operating activities125 145 
Cash flows from investing activities
Capital expenditures(295)(259)
Changes in Exelon intercompany money pool(48)(22)
Other investing activities
Net cash flows used in investing activities(342)(280)
Cash flows from financing activities
Issuance of long-term debt375 — 
Changes in Exelon intercompany money pool(40)— 
Dividends paid on common stock(85)(85)
Contributions from parent— 231 
Other financing activities(4)— 
Net cash flows provided by financing activities246 146 
Increase in cash, restricted cash, and cash equivalents29 11 
Cash, restricted cash, and cash equivalents at beginning of period26 27 
Cash, restricted cash, and cash equivalents at end of period$55 $38 
Supplemental cash flow information
Decrease in capital expenditures not paid$(44)$(11)
See the Combined Notes to Consolidated Financial Statements
26




Table of Contents
PECO ENERGY COMPANY AND SUBSIDIARY COMPANIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In millions)March 31, 2021December 31, 2020
ASSETS
Current assets
Cash and cash equivalents$48 $19 
Restricted cash and cash equivalents
Accounts receivable
Customer accounts receivable499511
Customer allowance for credit losses(130)(116)
Customer accounts receivable, net369 395 
Other accounts receivable140130
Other allowance for credit losses(11)(8)
Other accounts receivable, net129 122 
Receivables from affiliates— 
Receivable from Exelon intercompany money pool48 — 
Inventories, net
Fossil fuel15 33 
Materials and supplies43 38 
Prepaid utility taxes103 — 
Regulatory assets29 25 
Other22 21 
Total current assets813 662 
Property, plant, and equipment (net of accumulated depreciation and amortization of $3,897 and $3,843 as of March 31, 2021 and December 31, 2020, respectively)
10,352 10,181 
Deferred debits and other assets
Regulatory assets828 776 
Investments30 30 
Receivables from affiliates490 475 
Prepaid pension asset389 375 
Other35 32 
Total deferred debits and other assets1,772 1,688 
Total assets$12,937 $12,531 
See the Combined Notes to Consolidated Financial Statements
27




Table of Contents
PECO ENERGY COMPANY AND SUBSIDIARY COMPANIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In millions)March 31, 2021December 31, 2020
LIABILITIES AND SHAREHOLDER'S EQUITY
Current liabilities
Long-term debt due within one year$300 $300 
Accounts payable431 479 
Accrued expenses100 129 
Payables to affiliates46 50 
Borrowings from Exelon intercompany money pool— 40 
Customer deposits54 59 
Regulatory liabilities127 121 
Other31 30 
Total current liabilities1,089 1,208 
Long-term debt3,825 3,453 
Long-term debt to financing trusts184 184 
Deferred credits and other liabilities
Deferred income taxes and unamortized investment tax credits2,297 2,242 
Asset retirement obligations29 29 
Non-pension postretirement benefits obligations286 286 
Regulatory liabilities519 503 
Other93 93 
Total deferred credits and other liabilities3,224 3,153 
Total liabilities8,322 7,998 
Commitments and contingencies
Shareholder’s equity
Common stock3,014 3,014 
Retained earnings1,601 1,519 
Total shareholder’s equity4,615 4,533 
Total liabilities and shareholder's equity$12,937 $12,531 
See the Combined Notes to Consolidated Financial Statements
28




Table of Contents
PECO ENERGY COMPANY AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDER’S EQUITY
(Unaudited)
Three Months Ended March 31, 2021
(In millions)Common
Stock
Retained
Earnings
Total
Shareholder's
Equity
Balance, December 31, 2020$3,014 $1,519 $4,533 
Net income— 167 167 
Common stock dividends— (85)(85)
Balance, March 31, 2021$3,014 $1,601 $4,615 
Three Months Ended March 31, 2020
(In millions)Common
Stock
Retained
Earnings
Total
Shareholder's
Equity
Balance, December 31, 2019$2,766 $1,412 $4,178 
Net income— 140 140 
Common stock dividends— (85)(85)
Contributions from parent231 — 231 
Balance, March 31, 2020$2,997 $1,467 $4,464 
See the Combined Notes to Consolidated Financial Statements
29




Table of Contents

BALTIMORE GAS AND ELECTRIC COMPANY
STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(Unaudited)
Three Months Ended
March 31,
(In millions)20212020
Operating revenues
Electric operating revenues$620 $595 
Natural gas operating revenues330 300 
Revenues from alternative revenue programs18 36 
Operating revenues from affiliates
Total operating revenues974 937 
Operating expenses
Purchased power162 114 
Purchased fuel99 76 
Purchased power and fuel from affiliate70 98 
Operating and maintenance152 146 
Operating and maintenance from affiliates45 42 
Depreciation and amortization152 143 
Taxes other than income taxes72 69 
Total operating expenses752 688 
Operating income222 249 
Other income and (deductions)
Interest expense, net(34)(32)
Other, net
Total other income and (deductions)(26)(27)
Income before income taxes196 222 
Income taxes(13)41 
Net income$209 $181 
Comprehensive income$209 $181 
See the Combined Notes to Consolidated Financial Statements
30




Table of Contents
BALTIMORE GAS AND ELECTRIC COMPANY
STATEMENTS OF CASH FLOWS
(Unaudited)
Three Months Ended
March 31,
(In millions)20212020
Cash flows from operating activities
Net income$209 $181 
Adjustments to reconcile net income to net cash flows provided by operating activities:
Depreciation and amortization152 143 
Deferred income taxes and amortization of investment tax credits(4)33 
Other non-cash operating activities(8)
Changes in assets and liabilities:
Accounts receivable12 (28)
Receivables from and payables to affiliates, net(15)(13)
Inventories20 
Accounts payable and accrued expenses(59)(9)
Income taxes(9)
Pension and non-pension postretirement benefit contributions(65)(64)
Other assets and liabilities(103)10 
Net cash flows provided by operating activities129 272 
Cash flows from investing activities
Capital expenditures(336)(283)
Other investing activities(6)
Net cash flows used in investing activities(334)(289)
Cash flows from financing activities
Changes in short-term borrowings156 66 
Dividends paid on common stock(74)(62)
Net cash flows provided by financing activities82 
Decrease in cash, restricted cash, and cash equivalents(123)(13)
Cash, restricted cash, and cash equivalents at beginning of period145 25 
Cash, restricted cash, and cash equivalents at end of period$22 $12 
Supplemental cash flow information
Decrease in capital expenditures not paid$(80)$(35)
See the Combined Notes to Consolidated Financial Statements
31




Table of Contents
BALTIMORE GAS AND ELECTRIC COMPANY
BALANCE SHEETS
(Unaudited)
(In millions)March 31, 2021December 31, 2020
ASSETS
Current assets
Cash and cash equivalents$21 $144 
Restricted cash and cash equivalents
Accounts receivable
Customer accounts receivable476487
Customer allowance for credit losses (43)(35)
    Customer accounts receivable, net433 452 
Other accounts receivable 125117
Other allowance for credit losses(9)(9)
     Other accounts receivable, net116 108 
Receivables from affiliates— 
Inventories, net
Fossil fuel12 25 
Materials and supplies45 41 
Prepaid utility taxes43 — 
Regulatory assets179 168 
Other
Total current assets859 948 
Property, plant, and equipment (net of accumulated depreciation and amortization of $4,115 and $4,034 as of March 31, 2021 and December 31, 2020, respectively)
10,026 9,872 
Deferred debits and other assets
Regulatory assets481 481 
Investments10 10 
Prepaid pension asset314 270 
Other69 69 
Total deferred debits and other assets874 830 
Total assets$11,759 $11,650 
See the Combined Notes to Consolidated Financial Statements
32




Table of Contents
BALTIMORE GAS AND ELECTRIC COMPANY
BALANCE SHEETS
(Unaudited)
(In millions)March 31, 2021December 31, 2020
LIABILITIES AND SHAREHOLDER'S EQUITY
Current liabilities
Short-term borrowings$156 $— 
Long-term debt due within one year300 300 
Accounts payable266 346 
Accrued expenses142 205 
Payables to affiliates43 61 
Customer deposits105 110 
Regulatory liabilities41 30 
Other83 91 
Total current liabilities1,136 1,143 
Long-term debt3,365 3,364 
Deferred credits and other liabilities
Deferred income taxes and unamortized investment tax credits1,609 1,521 
Asset retirement obligations24 23 
Non-pension postretirement benefits obligations182 189 
Regulatory liabilities1,016 1,109 
Other95 104 
Total deferred credits and other liabilities2,926 2,946 
Total liabilities7,427 7,453 
Commitments and contingencies
Shareholder's equity
Common stock2,318 2,318 
Retained earnings2,014 1,879 
Total shareholder's equity4,332 4,197 
Total liabilities and shareholder's equity$11,759 $11,650 

See the Combined Notes to Consolidated Financial Statements
33




Table of Contents
BALTIMORE GAS AND ELECTRIC COMPANY
STATEMENTS OF CHANGES IN SHAREHOLDER'S EQUITY
(Unaudited)
Three Months Ended March 31, 2021
(In millions)Common
Stock
Retained
Earnings
Total
Shareholder's
Equity
Balance, December 31, 2020$2,318 $1,879 $4,197 
Net income— 209 209 
Common stock dividends— (74)(74)
Balance, March 31, 2021$2,318 $2,014 $4,332 
Three Months Ended March 31, 2020
(In millions)Common
Stock
Retained
Earnings
Total
Shareholder's
Equity
Balance, December 31, 2019$1,907 $1,776 $3,683 
Net income— 181 181 
Common stock dividends— (62)(62)
Balance, March 31, 2020$1,907 $1,895 $3,802 
See the Combined Notes to Consolidated Financial Statements
34




Table of Contents


PEPCO HOLDINGS LLC AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(Unaudited)
Three Months Ended
March 31,
(In millions)20212020
Operating revenues
Electric operating revenues$1,124 $1,086 
Natural gas operating revenues71 64 
Revenues from alternative revenue programs46 18 
Operating revenues from affiliates
Total operating revenues1,244 1,171 
Operating expenses
Purchased power348 300 
Purchased fuel33 31 
Purchased power from affiliates 98 104 
Operating and maintenance216 219 
Operating and maintenance from affiliates40 38 
Depreciation and amortization210 194 
Taxes other than income taxes113 114 
Total operating expenses1,058 1,000 
Gain on sales of assets— 
Operating income186 173 
Other income and (deductions)
Interest expense, net(67)(67)
Other, net17 13 
Total other income and (deductions)(50)(54)
Income before income taxes 136 119 
Income taxes11 
Net income$128 $108 
Comprehensive income$128 $108 
See the Combined Notes to Consolidated Financial Statements
35




Table of Contents
PEPCO HOLDINGS LLC AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Three Months Ended
March 31,
(In millions)20212020
Cash flows from operating activities
Net income$128 $108 
Adjustments to reconcile net income to net cash flows from operating activities:
Depreciation and amortization210 194 
Deferred income taxes and amortization of investment tax credits(4)
Other non-cash operating activities(25)
Changes in assets and liabilities:
Accounts receivable56 36 
Receivables from and payables to affiliates, net(18)(17)
Inventories
Accounts payable and accrued expenses(24)(16)
Income taxes15 
Pension and non-pension postretirement benefit contributions(36)(27)
Other assets and liabilities(94)(72)
Net cash flows provided by operating activities209 232 
Cash flows from investing activities
Capital expenditures(456)(376)
Other investing activities
Net cash flows used in investing activities(455)(375)
Cash flows from financing activities
Changes in short-term borrowings(368)(100)
Issuance of long-term debt625 150 
Retirement of long-term debt(44)(6)
Changes in Exelon intercompany money pool
Distributions to member(81)(134)
Contributions from member560 144 
Other financing activities(5)(1)
Net cash flows provided by financing activities690 60 
Increase (decrease) in cash, restricted cash, and cash equivalents444 (83)
Cash, restricted cash, and cash equivalents at beginning of period160 181 
Cash, restricted cash, and cash equivalents at end of period$604 $98 
Supplemental cash flow information
Decrease in capital expenditures not paid$(33)$(57)
See the Combined Notes to Consolidated Financial Statements
36




Table of Contents
PEPCO HOLDINGS LLC AND SUBSIDIARY COMPANIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In millions) March 31, 2021December 31, 2020
ASSETS
Current assets
Cash and cash equivalents$