EXELON CORP 10-Q

ITEM 1. FINANCIAL STATEMENTS 9 Table of Content s Exelon Corporation and Subsidiary Companies Consolidated Statements of Operations and Comprehensive Income (Unaudited) Three Months Ended March 31, (In millions, except per share data) 2025 2024 Operating revenues Electric operating revenues $ 5,816 $ 5,198 Natural gas operating revenues 1,024 739 Revenues from alternative revenue programs ( 126 ) 106 Total operating revenues 6,714 6,043 Operating expenses Purchased power 2,184 2,197 Purchased fuel 338 213 Operating and maintenance 1,347 1,271 Depreciation and amortization 903 879 Taxes other than income taxes 405 371 Total operating expenses 5,177 4,931 (Loss) gain on sale of assets ( 1 ) 2 Operating income 1,536 1,114 Other income and (deductions) Interest expense, net ( 504 ) ( 462 ) Interest expense to affiliates, net ( 6 ) ( 6 ) Other, net 52 75 Total other income and (deductions) ( 458 ) ( 393 ) Income before income taxes 1,078 721 Income taxes 170 63 Net income attributable to common shareholders $ 908 $ 658 Comprehensive income, net of income taxes Net income $ 908 $ 658 Other comprehensive income, net of income taxes Pension and non-pension postretirement benefit plans: Actuarial losses reclassified to periodic benefit cost 5 5 Pension and non-pension postretirement benefit plans valuation adjustments 5 ( 24 ) Unrealized (loss) gain on cash flow hedges ( 8 ) 33 Other comprehensive income 2 14 Comprehensive income attributable to common shareholders $ 910 $ 672 Average shares of common stock outstanding: Basic 1,008 1,000 Assumed exercise and/or distributions of stock-based awards (a) 1 1 Diluted 1,009 1,001 Earnings per average common share Basic $ 0.90 $ 0.66 Diluted $ 0.90 $ 0.66 __________ (a) The dilutive effects of stock-based compensation awards are calculated using the treasury stock method for all periods presented. See the Combined Notes to Consolidated Financial Statements 10 Table of Content s Exelon Corporation and Subsidiary Companies Consolidated Statements of Cash Flows (Unaudited) Three Months Ended March 31, (In millions) 2025 2024 Cash flows from operating activities Net income $ 908 $ 658 Adjustments to reconcile net income to net cash flows provided by operating activities: Depreciation, amortization, and accretion 905 880 Loss (gain) on sales of assets 1 ( 2 ) Deferred income taxes and amortization of investment tax credits 121 46 Net fair value changes related to derivatives 1 1 Other non-cash operating activities 344 39 Changes in assets and liabilities: Accounts receivable ( 402 ) ( 309 ) Inventories 17 12 Accounts payable and accrued expenses ( 397 ) ( 238 ) Collateral received, net 44 7 Income taxes 59 21 Regulatory assets and liabilities, net 86 252 Pension and non-pension postretirement benefit contributions ( 292 ) ( 111 ) Other assets and liabilities ( 195 ) ( 264 ) Net cash flows provided by operating activities 1,200 992 Cash flows from investing activities Capital expenditures ( 1,946 ) ( 1,767 ) Proceeds from sales of assets — 2 Other investing activities 4 ( 2 ) Net cash flows used in investing activities ( 1,942 ) ( 1,767 ) Cash flows from financing activities Changes in short-term borrowings ( 775 ) ( 317 ) Proceeds from short-term borrowings with maturities greater than 90 days — 150 Repayments on short-term borrowings with maturities greater than 90 days — ( 150 ) Issuance of long-term debt 2,425 2,625 Retirement of long-term debt — ( 901 ) Issuance of common stock 173 — Dividends paid on common stock ( 403 ) ( 381 ) Proceeds from employee stock plans — 11 Other financing activities ( 35 ) ( 55 ) Net cash flows provided by financing activities 1,385 982 Increase in cash, restricted cash, and cash equivalents 643 207 Cash, restricted cash, and cash equivalents at beginning of period 939 1,101 Cash, restricted cash, and cash equivalents at end of period $ 1,582 $ 1,308 Supplemental cash flow information Decrease in capital expenditures not paid ( 216 ) ( 117 ) See the Combined Notes to Consolidated Financial Statements 11 Table of Content s Exelon Corporation and Subsidiary Companies Consolidated Balance Sheets (Unaudited) (In millions) March 31, 2025 December 31, 2024 ASSETS Current assets Cash and cash equivalents $ 1,004 $ 357 Restricted cash and cash equivalents 578 541 Accounts receivable Customer accounts receivable 3,488 3,144 Customer allowance for credit losses ( 486 ) ( 406 ) Customer accounts receivable, net 3,002 2,738 Other accounts receivable 1,127 1,123 Other allowance for credit losses ( 113 ) ( 107 ) Other accounts receivable, net 1,014 1,016 Inventories, net Fossil fuel 29 72 Materials and supplies 804 781 Regulatory assets 1,605 1,940 Prepaid renewable energy credits 240 494 Other 523 445 Total current assets 8,799 8,384 Property, plant, and equipment (net of accumulated depreciation and amortization of $ 18,958 and $ 18,445 as of March 31, 2025 and December 31, 2024, respectively) 79,177 78,182 Deferred debits and other assets Regulatory assets 8,859 8,710 Goodwill 6,630 6,630 Receivable related to Regulatory Agreement Units 4,110 4,026 Investments 289 290 Other 1,620 1,562 Total deferred debits and other assets 21,508 21,218 Total assets $ 109,484 $ 107,784 See the Combined Notes to Consolidated Financial Statements 12 Table of Content s Exelon Corporation and Subsidiary Companies Consolidated Balance Sheets (Unaudited) (In millions) March 31, 2025 December 31, 2024 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities Short-term borrowings $ 1,084 $ 1,859 Long-term debt due within one year 1,454 1,453 Accounts payable 2,693 2,994 Accrued expenses 1,186 1,468 Payables to affiliates 5 5 Customer deposits 465 446 Regulatory liabilities 464 411 Mark-to-market derivative liabilities 25 29 Unamortized energy contract liabilities 5 5 Renewable energy credit obligations 215 429 Other 507 512 Total current liabilities 8,103 9,611 Long-term debt 45,342 42,947 Long-term debt to financing trusts 390 390 Deferred credits and other liabilities Deferred income taxes and unamortized investment tax credits 13,081 12,793 Regulatory liabilities 10,289 10,198 Pension obligations 1,475 1,745 Non-pension postretirement benefit obligations 480 472 Asset retirement obligations 305 301 Mark-to-market derivative liabilities 130 103 Unamortized energy contract liabilities 20 21 Other 2,262 2,282 Total deferred credits and other liabilities 28,042 27,915 Total liabilities 81,877 80,863 Commitments and contingencies Shareholders’ equity Common stock ( No par value, 2,000 shares authorized, 1,009 shares and 1,005 shares outstanding as of March 31, 2025 and December 31, 2024, respectively) 21,517 21,338 Treasury stock, at cost ( 2 shares as of March 31, 2025 and December 31, 2024) ( 123 ) ( 123 ) Retained earnings 6,931 6,426 Accumulated other comprehensive loss, net ( 718 ) ( 720 ) Total shareholders’ equity 27,607 26,921 Total liabilities and shareholders’ equity $ 109,484 $ 107,784 See the Combined Notes to Consolidated Financial Statements 13 Table of Content s Exelon Corporation and Subsidiary Companies Consolidated Statements of Changes in Shareholders' Equity (Unaudited) Three Months Ended March 31, 2025 (In millions, shares in thousands) Issued Shares Common Stock Treasury Stock Retained Earnings Accumulated Other Comprehensive Loss, net Total Shareholders' Equity Balance at December 31, 2024 1,007,046 $ 21,338 $ ( 123 ) $ 6,426 $ ( 720 ) $ 26,921 Net income — — — 908 — 908 Long-term incentive plan activity 299 4 — — — 4 Employee stock purchase plan activity ( 8 ) 2 — — — 2 Issuance of Common Stock 4,031 173 — — — 173 Common stock dividends ($ 0.40 /common share) — — — ( 403 ) ( 403 ) Other comprehensive income, net of income taxes — — — — 2 2 Balance at March 31, 2025 1,011,368 $ 21,517 $ ( 123 ) $ 6,931 $ ( 718 ) $ 27,607 Three Months Ended March 31, 2024 (In millions, shares in thousands) Issued Shares Common Stock Treasury Stock Retained Earnings Accumulated Other Comprehensive Loss, net Total Shareholders' Equity Balance at December 31, 2023 1,001,249 $ 21,114 $ ( 123 ) $ 5,490 $ ( 726 ) $ 25,755 Net income — — — 658 — 658 Long-term incentive plan activity 333 2 — — — 2 Employee stock purchase plan activity 276 13 — — — 13 Common stock dividends ($ 0.38 /common share) — — — ( 381 ) — ( 381 ) Other comprehensive income, net of income taxes — — — — 14 14 Balance at March 31, 2024 1,001,858 $ 21,129 $ ( 123 ) $ 5,767 $ ( 712 ) $ 26,061 See the Combined Notes to Consolidated Financial Statements 14 Table of Content s Commonwealth Edison Company and Subsidiary Companies Consolidated Statements of Operations and Comprehensive Income (Unaudited) Three Months Ended March 31, (In millions) 2025 2024 Operating revenues Electric operating revenues $ 2,142 $ 2,074 Revenues from alternative revenue programs ( 85 ) 19 Operating revenues from affiliates 8 2 Total operating revenues 2,065 2,095 Operating expenses Purchased power 689 907 Operating and maintenance 323 318 Operating and maintenance from affiliates 100 100 Depreciation and amortization 380 362 Taxes other than income taxes 99 94 Total operating expenses 1,591 1,781 Operating income 474 314 Other income and (deductions) Interest expense, net ( 125 ) ( 119 ) Interest expense to affiliates, net ( 3 ) ( 3 ) Other, net 21 20 Total other income and (deductions) ( 107 ) ( 102 ) Income before income taxes 367 212 Income taxes 65 19 Net income $ 302 $ 193 Comprehensive income $ 302 $ 193 See the Combined Notes to Consolidated Financial Statements 15 Table of Content s Commonwealth Edison Company and Subsidiary Companies Consolidated Statements of Cash Flows (Unaudited) Three Months Ended March 31, (In millions) 2025 2024 Cash flows from operating activities Net income $ 302 $ 193 Adjustments to reconcile net income to net cash flows provided by operating activities: Depreciation and amortization 380 362 Deferred income taxes and amortization of investment tax credits ( 8 ) ( 1 ) Other non-cash operating activities 141 ( 6 ) Changes in assets and liabilities: Accounts receivable ( 111 ) ( 133 ) Receivables from and payables to affiliates, net ( 21 ) — Inventories 3 ( 11 ) Accounts payable and accrued expenses ( 189 ) ( 116 ) Collateral received, net 5 8 Income taxes 72 21 Regulatory assets and liabilities, net 76 315 Pension and non-pension postretirement benefit contributions ( 189 ) ( 5 ) Other assets and liabilities ( 102 ) ( 67 ) Net cash flows provided by operating activities 359 560 Cash flows from investing activities Capital expenditures ( 590 ) ( 594 ) Other investing activities 1 1 Net cash flows used in investing activities ( 589 ) ( 593 ) Cash flows from financing activities Changes in short-term borrowings 311 128 Dividends paid on common stock ( 203 ) ( 194 ) Contributions from parent 87 39 Other financing activities — 1 Net cash flows provided by (used in) financing activities 195 ( 26 ) Decrease in cash, restricted cash, and cash equivalents ( 35 ) ( 59 ) Cash, restricted cash, and cash equivalents at beginning of period 632 686 Cash, restricted cash, and cash equivalents at end of period $ 597 $ 627 Supplemental cash flow information Decrease in capital expenditures not paid $ ( 25 ) $ ( 74 ) See the Combined Notes to Consolidated Financial Statements 16 Table of Content s Commonwealth Edison Company and Subsidiary Companies Consolidated Balance Sheets (Unaudited) (In millions) March 31, 2025 December 31, 2024 ASSETS Current assets Cash and cash equivalents $ 96 $ 105 Restricted cash and cash equivalents 501 486 Accounts receivable Customer accounts receivable 1,079 994 Customer allowance for credit losses ( 125 ) ( 109 ) Customer accounts receivable, net 954 885 Other accounts receivable 291 290 Other allowance for credit losses ( 34 ) ( 34 ) Other accounts receivable, net 257 256 Receivables from affiliates 8 4 Inventories, net 287 292 Regulatory assets 905 1,159 Other 154 141 Total current assets 3,162 3,328 Property, plant, and equipment (net of accumulated depreciation and amortization of $ 7,824 and $ 7,619 as of March 31, 2025 and December 31, 2024, respectively) 30,493 30,211 Deferred debits and other assets Regulatory assets 2,662 2,562 Goodwill 2,625 2,625 Receivable related to Regulatory Agreement Units 3,798 3,780 Investments 6 6 Prepaid pension asset 1,335 1,165 Other 1,118 1,073 Total deferred debits and other assets 11,544 11,211 Total assets $ 45,199 $ 44,750 See the Combined Notes to Consolidated Financial Statements 17 Table of Content s Commonwealth Edison Company and Subsidiary Companies Consolidated Balance Sheets (Unaudited) (In millions) March 31, 2025 December 31, 2024 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities Short-term borrowings $ 347 $ 36 Accounts payable 656 748 Accrued expenses 403 463 Payables to affiliates 60 77 Customer deposits 147 134 Regulatory liabilities 181 197 Mark-to-market derivative liabilities 25 29 Other 245 270 Total current liabilities 2,064 1,954 Long-term debt 12,031 12,030 Long-term debt to financing trust 206 206 Deferred credits and other liabilities Deferred income taxes and unamortized investment tax credits 5,646 5,601 Regulatory liabilities 8,490 8,421 Asset retirement obligations 169 167 Non-pension postretirement benefit obligations 158 156 Mark-to-market derivative liabilities 126 103 Other 1,243 1,232 Total deferred credits and other liabilities 15,832 15,680 Total liabilities 30,133 29,870 Commitments and contingencies Shareholders’ equity Common stock 1,588 1,588 Other paid-in capital 10,715 10,628 Retained earnings 2,763 2,664 Total shareholders’ equity 15,066 14,880 Total liabilities and shareholders’ equity $ 45,199 $ 44,750 See the Combined Notes to Consolidated Financial Statements 18 Table of Content s Commonwealth Edison Company and Subsidiary Companies Consolidated Statements of Changes in Shareholders' Equity (Unaudited) Three Months Ended March 31, 2025 (In millions) Common Stock Other Paid-In Capital Retained Earnings Total Shareholders’ Equity Balance at December 31, 2024 $ 1,588 $ 10,628 $ 2,664 $ 14,880 Net income — — 302 302 Common stock dividends — — ( 203 ) ( 203 ) Contributions from parent — 87 — 87 Balance at March 31, 2025 $ 1,588 $ 10,715 $ 2,763 $ 15,066 Three Months Ended March 31, 2024 (In millions) Common Stock Other Paid-In Capital Retained Earnings Total Shareholders’ Equity Balance at December 31, 2023 $ 1,588 $ 10,401 $ 2,374 $ 14,363 Net income — — 193 193 Common stock dividends — — ( 194 ) ( 194 ) Contributions from parent — 39 — 39 Balance at March 31, 2024 $ 1,588 $ 10,440 $ 2,373 $ 14,401 See the Combined Notes to Consolidated Financial Statements 19 Table of Content s PECO Energy Company and Subsidiary Companies Consolidated Statements of Operations and Comprehensive Income (Unaudited) Three Months Ended March 31, (In millions) 2025 2024 Operating revenues Electric operating revenues $ 963 $ 782 Natural gas operating revenues 376 272 Revenues from alternative revenue programs ( 9 ) ( 2 ) Operating revenues from affiliates 3 2 Total operating revenues 1,333 1,054 Operating expenses Purchased power 361 306 Purchased fuel 141 97 Operating and maintenance 266 235 Operating and maintenance from affiliates 61 58 Depreciation and amortization 109 104 Taxes other than income taxes 60 51 Total operating expenses 998 851 Gain on sales of assets — 2 Operating income 335 205 Other income and (deductions) Interest expense, net ( 59 ) ( 52 ) Interest expense to affiliates ( 4 ) ( 3 ) Other, net 8 9 Total other income and (deductions) ( 55 ) ( 46 ) Income before income taxes 280 159 Income taxes 14 10 Net income $ 266 $ 149 Comprehensive income $ 266 $ 149 See the Combined Notes to Consolidated Financial Statements 20 Table of Content s PECO Energy Company and Subsidiary Companies Consolidated Statements of Cash Flows (Unaudited) Three Months Ended March 31, (In millions) 2025 2024 Cash flows from operating activities Net income $ 266 $ 149 Adjustments to reconcile net income to net cash flows provided by operating activities: Depreciation and amortization 109 104 Gain on sales of assets — ( 2 ) Deferred income taxes and amortization of investment tax credits ( 18 ) ( 8 ) Other non-cash operating activities 54 20 Changes in assets and liabilities: Accounts receivable ( 148 ) ( 75 ) Receivables from and payables to affiliates, net ( 4 ) 4 Inventories 15 19 Accounts payable and accrued expenses ( 25 ) ( 63 ) Collateral (paid) received, net 12 — Income taxes 32 19 Regulatory assets and liabilities, net 27 ( 20 ) Pension and non-pension postretirement benefit contributions ( 9 ) ( 2 ) Other assets and liabilities ( 117 ) ( 104 ) Net cash flows provided by operating activities 194 41 Cash flows from investing activities Capital expenditures ( 424 ) ( 361 ) Other investing activities 2 2 Net cash flows used in investing activities ( 422 ) ( 359 ) Cash flows from financing activities Changes in short-term borrowings ( 192 ) ( 165 ) Dividends paid on common stock ( 137 ) ( 100 ) Contributions from parent 563 580 Net cash flows provided by financing activities 234 315 Increase (decrease) in cash, restricted cash, and cash equivalents 6 ( 3 ) Cash, restricted cash, and cash equivalents at beginning of period 48 51 Cash, restricted cash, and cash equivalents at end of period $ 54 $ 48 Supplemental cash flow information (Decrease) increase in capital expenditures not paid $ ( 20 ) $ 5 See the Combined Notes to Consolidated Financial Statements 21 Table of Content s PECO Energy Company and Subsidiary Companies Consolidated Balance Sheets (Unaudited) (In millions) March 31, 2025 December 31, 2024 ASSETS Current assets Cash and cash equivalents $ 54 $ 48 Accounts receivable Customer accounts receivable 788 670 Customer allowance for credit losses ( 160 ) ( 133 ) Customer accounts receivable, net 628 537 Other accounts receivable 170 145 Other allowance for credit losses ( 22 ) ( 18 ) Other accounts receivable, net 148 127 Inventories, net Fossil fuel 15 37 Materials and supplies 83 79 Prepaid utility taxes 116 2 Prepaid renewable energy credits 31 51 Regulatory assets 61 65 Other 66 27 Total current assets 1,202 973 Property, plant, and equipment (net of accumulated depreciation and amortization of $ 4,089 and $ 4,042 as of March 31, 2025 and December 31, 2024, respectively) 14,691 14,392 Deferred debits and other assets Regulatory assets 1,068 1,003 Receivable related to Regulatory Agreement Units 311 247 Investments 39 41 Prepaid pension asset 443 435 Other 35 32 Total deferred debits and other assets 1,896 1,758 Total assets $ 17,789 $ 17,123 See the Combined Notes to Consolidated Financial Statements 22 Table of Content s PECO Energy Company and Subsidiary Companies Consolidated Balance Sheets (Unaudited) (In millions) March 31, 2025 December 31, 2024 LIABILITIES AND SHAREHOLDER'S EQUITY Current liabilities Short-term borrowings $ — $ 192 Long-term debt due within one year 350 350 Accounts payable 631 639 Accrued expenses 169 166 Payables to affiliates 37 41 Customer deposits 84 80 Regulatory liabilities 151 122 Other 120 80 Total current liabilities 1,542 1,670 Long-term debt 5,354 5,354 Long-term debt to financing trusts 184 184 Deferred credits and other liabilities Deferred income taxes and unamortized investment tax credits 2,485 2,433 Regulatory liabilities 317 253 Asset retirement obligations 28 27 Non-pension postretirement benefit obligations 288 287 Other 84 100 Total deferred credits and other liabilities 3,202 3,100 Total liabilities 10,282 10,308 Commitments and contingencies Shareholder’s equity Common stock 5,208 4,645 Retained earnings 2,299 2,170 Total shareholder’s equity 7,507 6,815 Total liabilities and shareholder's equity $ 17,789 $ 17,123 See the Combined Notes to Consolidated Financial Statements 23 Table of Content s PECO Energy Company and Subsidiary Companies Consolidated Statements of Changes in Shareholders' Equity (Unaudited) Three Months Ended March 31, 2025 (In millions) Common Stock Retained Earnings Total Shareholder's Equity Balance at December 31, 2024 $ 4,645 $ 2,170 $ 6,815 Net income — 266 266 Common stock dividends — ( 137 ) ( 137 ) Contributions from parent 563 — 563 Balance at March 31, 2025 $ 5,208 $ 2,299 $ 7,507 Three Months Ended March 31, 2024 (In millions) Common Stock Retained Earnings Total Shareholder's Equity Balance at December 31, 2023 $ 4,050 $ 2,019 $ 6,069 Net income — 149 149 Common stock dividends — ( 100 ) ( 100 ) Contributions from parent 580 — 580 Balance at March 31, 2024 $ 4,630 $ 2,068 $ 6,698 See the Combined Notes to Consolidated Financial Statements 24 Table of Content s Baltimore Gas and Electric Company Statements of Operations and Comprehensive Income (Unaudited) Three Months Ended March 31, (In millions) 2025 2024 Operating revenues Electric operating revenues $ 1,021 $ 857 Natural gas operating revenues 560 395 Revenues from alternative revenue programs ( 29 ) 43 Operating revenues from affiliates 2 2 Total operating revenues 1,554 1,297 Operating expenses Purchased power 450 377 Purchased fuel 159 87 Operating and maintenance 242 205 Operating and maintenance from affiliates 63 59 Depreciation and amortization 164 150 Taxes other than income taxes 96 89 Total operating expenses 1,174 967 Operating income 380 330 Other income and (deductions) Interest expense, net ( 58 ) ( 50 ) Other, net 9 8 Total other income and (deductions) ( 49 ) ( 42 ) Income before income taxes 331 288 Income taxes 71 24 Net income $ 260 $ 264 Comprehensive income $ 260 $ 264 See the Combined Notes to Consolidated Financial Statements 25 Table of Content s Baltimore Gas and Electric Company Statements of Cash Flows (Unaudited) Three Months Ended March 31, (In millions) 2025 2024 Cash flows from operating activities Net income $ 260 $ 264 Adjustments to reconcile net income to net cash flows provided by operating activities: Depreciation and amortization 164 150 Deferred income taxes and amortization of investment tax credits 35 ( 4 ) Other non-cash operating activities 55 ( 21 ) Changes in assets and liabilities: Accounts receivable ( 153 ) ( 95 ) Receivables from and payables to affiliates, net ( 10 ) 2 Inventories 20 14 Accounts payable and accrued expenses ( 15 ) 21 Collateral received, net 1 — Income taxes 36 29 Regulatory assets and liabilities, net 14 — Pension and non-pension postretirement benefit contributions ( 34 ) ( 25 ) Other assets and liabilities 49 ( 18 ) Net cash flows provided by operating activities 422 317 Cash flows from investing activities Capital expenditures ( 406 ) ( 324 ) Other investing activities 3 8 Net cash flows used in investing activities ( 403 ) ( 316 ) Cash flows from financing activities Changes in short-term borrowings 62 70 Dividends paid on common stock ( 98 ) ( 92 ) Net cash flows used in financing activities ( 36 ) ( 22 ) Decrease in cash, restricted cash, and cash equivalents ( 17 ) ( 21 ) Cash, restricted cash, and cash equivalents at beginning of period 34 48 Cash, restricted cash, and cash equivalents at end of period $ 17 $ 27 Supplemental cash flow information Decrease in capital expenditures not paid $ ( 48 ) $ ( 8 ) See the Combined Notes to Consolidated Financial Statements 26 Table of Content s Baltimore Gas and Electric Company Balance Sheets (Unaudited) (In millions) March 31, 2025 December 31, 2024 ASSETS Current assets Cash and cash equivalents $ 14 $ 33 Restricted cash and cash equivalents 3 1 Accounts receivable Customer accounts receivable 805 654 Customer allowance for credit losses ( 72 ) ( 56 ) Customer accounts receivable, net 733 598 Other accounts receivable 109 113 Other allowance for credit losses ( 6 ) ( 6 ) Other accounts receivable, net 103 107 Inventories, net Fossil fuel 12 29 Materials and supplies 81 84 Prepaid utility taxes 58 115 Regulatory assets 156 207 Prepaid renewable energy credits 52 157 Other 17 17 Total current assets 1,229 1,348 Property, plant, and equipment (net of accumulated depreciation and amortization of $ 5,079 and $ 5,005 as of March 31, 2025 and December 31, 2024, respectively) 13,358 13,134 Deferred debits and other assets Regulatory assets 798 788 Investments 10 10 Prepaid pension asset 231 218 Other 51 44 Total deferred debits and other assets 1,090 1,060 Total assets $ 15,677 $ 15,542 See the Combined Notes to Consolidated Financial Statements 27 Table of Content s Baltimore Gas and Electric Company Balance Sheets (Unaudited) (In millions) March 31, 2025 December 31, 2024 LIABILITIES AND SHAREHOLDER'S EQUITY Current liabilities Short-term borrowings $ 237 $ 175 Accounts payable 445 515 Accrued expenses 211 176 Payables to affiliates 38 48 Customer deposits 119 118 Regulatory liabilities 34 12 Renewable energy credit obligations 53 160 Other 39 39 Total current liabilities 1,176 1,243 Long-term debt 5,396 5,395 Deferred credits and other liabilities Deferred income taxes and unamortized investment tax credits 2,161 2,099 Regulatory liabilities 615 636 Asset retirement obligations 36 36 Non-pension postretirement benefit obligations 145 150 Other 100 97 Total deferred credits and other liabilities 3,057 3,018 Total liabilities 9,629 9,656 Commitments and contingencies Shareholder's equity Common stock 3,483 3,483 Retained earnings 2,565 2,403 Total shareholder's equity 6,048 5,886 Total liabilities and shareholder's equity $ 15,677 $ 15,542 See the Combined Notes to Consolidated Financial Statements 28 Table of Content s Baltimore Gas and Electric Company Statements of Changes in Shareholder's Equity (Unaudited) Three Months Ended March 31, 2025 (In millions) Common Stock Retained Earnings Total Shareholder's Equity Balance at December 31, 2024 $ 3,483 $ 2,403 $ 5,886 Net income — 260 260 Common stock dividends — ( 98 ) ( 98 ) Balance at March 31, 2025 $ 3,483 $ 2,565 $ 6,048 Three Months Ended March 31, 2024 (In millions) Common Stock Retained Earnings Total Shareholder's Equity Balance at December 31, 2023 $ 3,246 $ 2,244 $ 5,490 Net income — 264 264 Common stock dividends — ( 92 ) ( 92 ) Balance at March 31, 2024 $ 3,246 $ 2,416 $ 5,662 See the Combined Notes to Consolidated Financial Statements 29 Table of Content s Pepco Holdings LLC and Subsidiary Companies Consolidated Statements of Operations and Comprehensive Income (Unaudited) Three Months Ended March 31, (In millions) 2025 2024 Operating revenues Electric operating revenues $ 1,691 $ 1,485 Natural gas operating revenues 88 72 Revenues from alternative revenue programs ( 3 ) 46 Operating revenues from affiliates 2 3 Total operating revenues 1,778 1,606 Operating expenses Purchased power 684 607 Purchased fuel 38 29 Operating and maintenance 296 274 Operating and maintenance from affiliates 53 51 Depreciation and amortization 234 246 Taxes other than income taxes 140 128 Total operating expenses 1,445 1,335 Loss on sale of assets ( 1 ) — Operating income 332 271 Other income and (deductions) Interest expense, net ( 99 ) ( 90 ) Interest expense to affiliates, net ( 1 ) — Other, net 19 27 Total other income and (deductions) ( 81 ) ( 63 ) Income before income taxes 251 208 Income taxes 57 40 Net income $ 194 $ 168 Comprehensive income $ 194 $ 168 See the Combined Notes to Consolidated Financial Statements 30 Table of Content s Pepco Holdings LLC and Subsidiary Companies Consolidated Statements of Cash Flows (Unaudited) Three Months Ended March 31, (In millions) 2025 2024 Cash flows from operating activities Net income $ 194 $ 168 Adjustments to reconcile net income to net cash flows provided by operating activities: Depreciation and amortization 234 246 Loss on sales of assets 1 — Deferred income taxes and amortization of investment tax credits 32 16 Other non-cash operating activities 69 9 Changes in assets and liabilities: Accounts receivable 6 1 Receivables from and payables to affiliates, net ( 9 ) — Inventories ( 24 ) ( 11 ) Accounts payable and accrued expenses ( 84 ) ( 23 ) Collateral received, net 27 — Income taxes 25 24 Regulatory assets and liabilities, net ( 14 ) ( 42 ) Pension and non-pension postretirement benefit contributions ( 42 ) ( 72 ) Other assets and liabilities ( 13 ) ( 27 ) Net cash flows provided by operating activities 402 289 Cash flows from investing activities Capital expenditures ( 513 ) ( 453 ) Net cash flows used in investing activities ( 513 ) ( 453 ) Cash flows from financing activities Changes in short-term borrowings ( 530 ) ( 394 ) Issuance of long-term debt 425 925 Retirement of long-term debt — ( 400 ) Changes in Exelon intercompany money pool 11 8 Distributions to member ( 132 ) ( 118 ) Contributions from member 352 487 Other financing activities ( 8 ) ( 21 ) Net cash flows provided by financing activities 118 487 Increase in cash, restricted cash, and cash equivalents 7 323 Cash, restricted cash, and cash equivalents at beginning of period 163 204 Cash, restricted cash, and cash equivalents at end of period $ 170 $ 527 Supplemental cash flow information Decrease in capital expenditures not paid $ ( 109 ) $ ( 11 ) See the Combined Notes to Consolidated Financial Statements 31 Table of Content s Pepco Holdings LLC and Subsidiary Companies Consolidated Balance Sheets (Unaudited) (In millions) March 31, 2025 December 31, 2024 ASSETS Current assets Cash and cash equivalents $ 127 $ 139 Restricted cash and cash equivalents 43 24 Accounts receivable Customer accounts receivable 815 827 Customer allowance for credit losses ( 129 ) ( 108 ) Customer accounts receivable, net 686 719 Other accounts receivable 281 284 Other allowance for credit losses ( 51 ) ( 49 ) Other accounts receivable, net 230 235 Receivables from affiliates 8 8 Inventories, net Fossil fuel 2 7 Materials and supplies 354 325 Prepaid utility taxes 39 70 Regulatory assets 297 323 Prepaid renewable energy credits 58 194 Other 56 36 Total current assets 1,900 2,080 Property, plant, and equipment (net of accumulated depreciation and amortization of $ 3,892 and $ 3,728 as of March 31, 2025 and December 31, 2024, respectively) 20,258 20,053 Deferred debits and other assets Regulatory assets 1,577 1,570 Goodwill 4,005 4,005 Investments 152 152 Prepaid pension asset 266 252 Other 191 185 Total deferred debits and other assets 6,191 6,164 Total assets $ 28,349 $ 28,297 See the Combined Notes to Consolidated Financial Statements 32 Table of Content s Pepco Holdings LLC and Subsidiary Companies Consolidated Balance Sheets (Unaudited) (In millions) March 31, 2025 December 31, 2024 LIABILITIES AND MEMBER'S EQUITY Current liabilities Short-term borrowings $ — $ 530 Long-term debt due within one year 292 290 Accounts payable 605 721 Accrued expenses 317 367 Payables to affiliates 57 66 Borrowings from Exelon intercompany money pool 74 63 Customer deposits 116 113 Regulatory liabilities 87 69 Unamortized energy contract liabilities 5 5 Renewable energy credit obligations 86 217 Other 128 124 Total current liabilities 1,767 2,565 Long-term debt 9,249 8,834 Deferred credits and other liabilities Deferred income taxes and unamortized investment tax credits 3,239 3,190 Regulatory liabilities 778 794 Asset retirement obligations 68 67 Non-pension postretirement benefit obligations 28 31 Unamortized energy contract liabilities 20 21 Other 464 473 Total deferred credits and other liabilities 4,597 4,576 Total liabilities 15,613 15,975 Commitments and contingencies Member's equity Membership interest 12,914 12,562 Undistributed losses ( 178 ) ( 240 ) Total member's equity 12,736 12,322 Total liabilities and member's equity $ 28,349 $ 28,297 See the Combined Notes to Consolidated Financial Statements 33 Table of Content s Pepco Holdings LLC and Subsidiary Companies Consolidated Statements of Changes in Member's Equity (Unaudited) Three Months Ended March 31, 2025 (In millions) Membership Interest Undistributed (Losses)/Gains Total Member's Equity Balance at December 31, 2024 $ 12,562 $ ( 240 ) $ 12,322 Net income — 194 194 Distributions to member — ( 132 ) ( 132 ) Contributions from member 352 — 352 Balance at March 31, 2025 $ 12,914 $ ( 178 ) $ 12,736 Three Months Ended March 31, 2024 (In millions) Membership Interest Undistributed (Losses)/Gains Total Member's Equity Balance at December 31, 2023 $ 12,057 $ ( 275 ) $ 11,782 Net income — 168 168 Distributions to member — ( 118 ) ( 118 ) Contributions from member 487 — 487 Balance at March 31, 2024 $ 12,544 $ ( 225 ) $ 12,319 See the Combined Notes to Consolidated Financial Statements 34 Table of Content s Potomac Electric Power Company Statements of Operations and Comprehensive Income (Unaudited) Three Months Ended March 31, (In millions) 2025 2024 Operating revenues Electric operating revenues $ 855 728 Revenues from alternative revenue programs 2 29 Operating revenues from affiliates 2 2 Total operating revenues 859 759 Operating expenses Purchased power 318 281 Operating and maintenance 96 86 Operating and maintenance from affiliates 63 64 Depreciation and amortization 105 107 Taxes other than income taxes 113 102 Total operating expenses 695 640 Loss on sale of assets ( 1 ) — Operating income 163 119 Other income and (deductions) Interest expense, net ( 52 ) ( 45 ) Other, net 11 15 Total other income and (deductions) ( 41 ) ( 30 ) Income before income taxes 122 89 Income taxes 25 14 Net income $ 97 $ 75 Comprehensive income $ 97 $ 75 See the Combined Notes to Consolidated Financial Statements 35 Table of Content s Potomac Electric Power Company Statements Of Cash Flows (Unaudited) Three Months Ended March 31, (In millions) 2025 2024 Cash flows from operating activities Net income $ 97 $ 75 Adjustments to reconcile net income to net cash flows provided by operating activities: Depreciation and amortization 105 107 Deferred income taxes and amortization of investment tax credits 10 3 Loss on sales of assets 1 — Other non-cash operating activities 12 ( 13 ) Changes in assets and liabilities: Accounts receivable ( 14 ) 21 Receivables from and payables to affiliates, net ( 2 ) 6 Inventories ( 20 ) ( 10 ) Accounts payable and accrued expenses ( 28 ) — Collateral received (paid), net 10 ( 1 ) Income taxes 15 12 Regulatory assets and liabilities, net 13 6 Pension and non-pension postretirement benefit contributions ( 4 ) ( 4 ) Other assets and liabilities ( 3 ) ( 19 ) Net cash flows provided by operating activities 192 183 Cash flows from investing activities Capital expenditures ( 240 ) ( 229 ) Changes in PHI intercompany money pool — ( 134 ) Net cash flows used in investing activities ( 240 ) ( 363 ) Cash flows from financing activities Changes in short-term borrowings ( 200 ) ( 132 ) Issuance of long-term debt 200 675 Retirement of long-term debt — ( 400 ) Dividends paid on common stock ( 66 ) ( 51 ) Contributions from parent 157 251 Other financing activities ( 5 ) ( 15 ) Net cash flows provided by financing activities 86 328 Increase in cash, restricted cash, and cash equivalents 38 148 Cash, restricted cash, and cash equivalents at beginning of period 51 72 Cash, restricted cash, and cash equivalents at end of period $ 89 $ 220 Supplemental cash flow information Decrease in capital expenditures not paid $ ( 49 ) $ ( 11 ) See the Combined Notes to Consolidated Financial Statements 36 Table of Content s Potomac Electric Power Company Balance Sheets (Unaudited) (In millions) March 31, 2025 December 31, 2024 ASSETS Current assets Cash and cash equivalents $ 58 $ 30 Restricted cash and cash equivalents 31 21 Accounts receivable Customer accounts receivable 404 395 Customer allowance for credit losses ( 69 ) ( 59 ) Customer accounts receivable, net 335 336 Other accounts receivable 147 142 Other allowance for credit losses ( 27 ) ( 27 ) Other accounts receivable, net 120 115 Receivables from affiliates — 1 Inventories, net 189 169 Regulatory assets 136 157 Prepaid renewable energy credits 49 165 Other 37 55 Total current assets 955 1,049 Property, plant, and equipment (net of accumulated depreciation and amortization of $ 4,593 and $ 4,522 as of March 31, 2025 and December 31, 2024, respectively) 10,205 10,097 Deferred debits and other assets Regulatory assets 442 446 Investments 136 135 Prepaid pension asset 216 222 Other 57 51 Total deferred debits and other assets 851 854 Total assets $ 12,011 $ 12,000 See the Combined Notes to Consolidated Financial Statements 37 Table of Content s Potomac Electric Power Company Balance Sheets (Unaudited) (In millions) March 31, 2025 December 31, 2024 LIABILITIES AND SHAREHOLDER'S EQUITY Current liabilities Short-term borrowings $ — $ 200 Long-term debt due within one year 6 6 Accounts payable 303 360 Accrued expenses 192 201 Payables to affiliates 34 37 Customer deposits 57 55 Regulatory liabilities 16 17 Merger related obligation 21 22 Renewable energy credit obligations 50 169 Other 43 51 Total current liabilities 722 1,118 Long-term debt 4,553 4,356 Deferred credits and other liabilities Deferred income taxes and unamortized investment tax credits 1,530 1,509 Regulatory liabilities 301 310 Asset retirement obligations 50 49 Other 232 223 Total deferred credits and other liabilities 2,113 2,091 Total liabilities 7,388 7,565 Commitments and contingencies Shareholder's equity Common stock 3,492 3,335 Retained earnings 1,131 1,100 Total shareholder's equity 4,623 4,435 Total liabilities and shareholder's equity $ 12,011 $ 12,000 See the Combined Notes to Consolidated Financial Statements 38 Table of Content s Potomac Electric Power Company Statements Of Changes In Shareholder's Equity (Unaudited) Three Months Ended March 31, 2025 (In millions) Common Stock Retained Earnings Total Shareholder's Equity Balance at December 31, 2024 $ 3,335 $ 1,100 $ 4,435 Net income — 97 97 Common stock dividends — ( 66 ) ( 66 ) Contributions from parent 157 — 157 Balance at March 31, 2025 $ 3,492 $ 1,131 $ 4,623 Three Months Ended March 31, 2024 (In millions) Common Stock Retained Earnings Total Shareholder's Equity Balance at December 31, 2023 $ 3,075 $ 1,069 $ 4,144 Net income — 75 75 Common stock dividends — ( 51 ) ( 51 ) Contributions from parent 251 — 251 Balance at March 31, 2024 $ 3,326 $ 1,093 $ 4,419 See the Combined Notes to Consolidated Financial Statements 39 Table of Content s Delmarva Power & Light Company Statements of Operations and Comprehensive Income (Unaudited) Three Months Ended March 31, (In millions) 2025 2024 Operating revenues Electric operating revenues $ 463 $ 413 Natural gas operating revenues 88 72 Revenues from alternative revenue programs ( 5 ) 4 Operating revenues from affiliates 2 2 Total operating revenues 548 491 Operating expenses Purchased power 209 186 Purchased fuel 38 29 Operating and maintenance 60 51 Operating and maintenance from affiliates 46 44 Depreciation and amortization 63 61 Taxes other than income taxes 21 20 Total operating expenses 437 391 Operating income 111 100 Other income and (deductions) Interest expense, net ( 25 ) ( 22 ) Other, net 4 5 Total other income and (deductions) ( 21 ) ( 17 ) Income before income taxes 90 83 Income taxes 21 17 Net income $ 69 $ 66 Comprehensive income $ 69 $ 66 See the Combined Notes to Consolidated Financial Statements 40 Table of Content s Delmarva Power & Light Company Statements Of Cash Flows (Unaudited) Three Months Ended March 31, (In millions) 2025 2024 Cash flows from operating activities Net income $ 69 $ 66 Adjustments to reconcile net income to net cash flows provided by operating activities: Depreciation and amortization 63 61 Deferred income taxes and amortization of investment tax credits 9 6 Other non-cash operating activities 21 12 Changes in assets and liabilities: Accounts receivable ( 1 ) ( 7 ) Receivables from and payables to affiliates, net ( 4 ) — Inventories ( 4 ) 1 Accounts payable and accrued expenses ( 9 ) 16 Collateral received, net 9 — Income taxes 13 10 Regulatory assets and liabilities, net 2 ( 1 ) Other assets and liabilities 7 6 Net cash flows provided by operating activities 175 170 Cash flows from investing activities Capital expenditures ( 156 ) ( 134 ) Changes in PHI intercompany money pool ( 12 ) — Net cash flows used in investing activities ( 168 ) ( 134 ) Cash flows from financing activities Changes in short-term borrowings ( 144 ) ( 63 ) Issuance of long-term debt 125 175 Dividends paid on common stock ( 46 ) ( 45 ) Contributions from parent 99 154 Other financing activities ( 3 ) ( 3 ) Net cash flows provided by financing activities 31 218 Increase in cash, restricted cash, and cash equivalents 38 254 Cash, restricted cash, and cash equivalents at beginning of period 23 16 Cash, restricted cash, and cash equivalents at end of period $ 61 $ 270 Supplemental cash flow information Decrease in capital expenditures not paid $ ( 47 ) $ ( 6 ) See the Combined Notes to Consolidated Financial Statements 41 Table of Content s Delmarva Power & Light Company Balance Sheets (Unaudited) (In millions) March 31, 2025 December 31, 2024 ASSETS Current assets Cash and cash equivalents $ 50 $ 21 Restricted cash and cash equivalents 11 2 Accounts receivable Customer accounts receivable 215 210 Customer allowance for credit losses ( 23 ) ( 17 ) Customer accounts receivable, net 192 193 Other accounts receivable 53 63 Other allowance for credit losses ( 9 ) ( 9 ) Other accounts receivable, net 44 54 Receivables from affiliates 1 — Receivable from PHI intercompany pool 12 — Inventories, net Fossil fuel 2 6 Materials and supplies 103 95 Prepaid utility taxes 13 26 Regulatory assets 49 60 Prepaid renewable energy credits 9 29 Other 21 16 Total current assets 507 502 Property, plant, and equipment (net of accumulated depreciation and amortization of $ 2,121 and $ 2,075 as of March 31, 2025 and December 31, 2024, respectively) 5,595 5,540 Deferred debits and other assets Regulatory assets 220 215 Prepaid pension asset 116 120 Other 46 44 Total deferred debits and other assets 382 379 Total assets $ 6,484 $ 6,421 See the Combined Notes to Consolidated Financial Statements 42 Table of Content s Delmarva Power & Light Company Balance Sheets (Unaudited) (In millions) March 31, 2025 December 31, 2024 LIABILITIES AND SHAREHOLDER'S EQUITY Current liabilities Short-term borrowings $ — $ 144 Long-term debt due within one year 131 130 Accounts payable 131 187 Accrued expenses 65 55 Payables to affiliates 23 26 Customer deposits 34 34 Regulatory liabilities 46 42 Renewable energy credit obligations 37 48 Other 27 22 Total current liabilities 494 688 Long-term debt 2,215 2,090 Deferred credits and other liabilities Deferred income taxes and unamortized investment tax credits 960 946 Regulatory liabilities 323 325 Asset retirement obligations 13 13 Non-pension postretirement benefit obligations 3 3 Other 112 114 Total deferred credits and other liabilities 1,411 1,401 Total liabilities 4,120 4,179 Commitments and contingencies Shareholder's equity Common stock 1,714 1,615 Retained earnings 650 627 Total shareholder's equity 2,364 2,242 Total liabilities and shareholder's equity $ 6,484 $ 6,421 See the Combined Notes to Consolidated Financial Statements 43 Table of Content s Delmarva Power & Light Company Statements Of Changes In Shareholder's Equity (Unaudited) Three Months Ended March 31, 2025 (In millions) Common Stock Retained Earnings Total Shareholder's Equity Balance at December 31, 2024 $ 1,615 $ 627 $ 2,242 Net income — 69 69 Common stock dividends — ( 46 ) ( 46 ) Contributions from parent 99 — 99 Balance at March 31, 2025 $ 1,714 $ 650 $ 2,364 Three Months Ended March 31, 2024 (In millions) Common Stock Retained Earnings Total Shareholder's Equity Balance at December 31, 2023 $ 1,455 $ 638 $ 2,093 Net income — 66 66 Common stock dividends — ( 45 ) ( 45 ) Contributions from parent 154 — 154 Balance at March 31, 2024 $ 1,609 $ 659 $ 2,268 See the Combined Notes to Consolidated Financial Statements 44 Table of Content s Atlantic City Electric Company and Subsidiary Company Consolidated Statements of Operations and Comprehensive Income (Unaudited) Three Months Ended March 31, (In millions) 2025 2024 Operating revenues Electric operating revenues $ 372 $ 344 Revenues from alternative revenue programs — 13 Operating revenues from affiliates 1 1 Total operating revenues 373 358 Operating expenses Purchased power 157 140 Operating and maintenance 51 47 Operating and maintenance from affiliates 39 40 Depreciation and amortization 64 74 Taxes other than income taxes 2 2 Total operating expenses 313 303 Operating income 60 55 Other income and (deductions) Interest expense, net ( 21 ) ( 20 ) Other, net 3 5 Total other income and (deductions) ( 18 ) ( 15 ) Income before income taxes 42 40 Income taxes 11 11 Net income $ 31 $ 29 Comprehensive income $ 31 $ 29 See the Combined Notes to Consolidated Financial Statements 45 Table of Content s Atlantic City Electric Company and Subsidiary Company Statements Of Cash Flows (Unaudited) Three Months Ended March 31, (In millions) 2025 2024 Cash flows from operating activities Net income $ 31 $ 29 Adjustments to reconcile net income to net cash flows provided by operating activities: Depreciation and amortization 64 74 Deferred income taxes and amortization of investment tax credits 8 7 Other non-cash operating activities 25 2 Changes in assets and liabilities: Accounts receivable 21 ( 12 ) Receivables from and payables to affiliates, net ( 2 ) ( 5 ) Inventories — ( 3 ) Accounts payable and accrued expenses ( 8 ) ( 1 ) Collateral received, net 6 1 Income taxes 3 3 Regulatory assets and liabilities, net ( 28 ) ( 47 ) Pension and non-pension postretirement benefit contributions ( 3 ) ( 7 ) Other assets and liabilities ( 5 ) ( 13 ) Net cash flows provided by operating activities 112 28 Cash flows from investing activities Capital expenditures ( 105 ) ( 89 ) Net cash flows used in investing activities ( 105 ) ( 89 ) Cash flows from financing activities Changes in short-term borrowings ( 186 ) ( 199 ) Issuance of long-term debt 100 75 Changes in PHI intercompany money pool 12 134 Dividends paid on common stock ( 20 ) ( 22 ) Contributions from parent 94 81 Other financing activities ( 2 ) ( 2 ) Net cash flows (used in) provided by financing activities ( 2 ) 67 Increase in cash and cash equivalents 5 6 Cash and cash equivalents at beginning of period 14 21 Cash and cash equivalents at end of period $ 19 $ 27 Supplemental cash flow information (Decrease) increase in capital expenditures not paid $ ( 12 ) $ 4 See the Combined Notes to Consolidated Financial Statements 46 Table of Content s Atlantic City Electric Company and Subsidiary Company Consolidated Balance Sheets (Unaudited) (In millions) March 31, 2025 December 31, 2024 ASSETS Current assets Cash and cash equivalents $ 18 $ 14 Restricted cash and cash equivalents 1 — Accounts receivable Customer accounts receivable 196 223 Customer allowance for credit losses ( 37 ) ( 32 ) Customer accounts receivable, net 159 191 Other accounts receivable 81 79 Other allowance for credit losses ( 15 ) ( 13 ) Other accounts receivable, net 66 66 Receivables from affiliates 7 7 Inventories, net 62 62 Regulatory assets 107 101 Other 8 6 Total current assets 428 447 Property, plant, and equipment (net of accumulated depreciation and amortization of $ 1,839 and $ 1,798 as of March 31, 2025 and December 31, 2024, respectively) 4,407 4,366 Deferred debits and other assets Regulatory assets 515 502 Prepaid pension asset 2 1 Other 35 33 Total deferred debits and other assets 552 536 Total assets $ 5,387 $ 5,349 See the Combined Notes to Consolidated Financial Statements 47 Table of Content s Atlantic City Electric Company and Subsidiary Company Consolidated Balance Sheets (Unaudited) (In millions) March 31, 2025 December 31, 2024 LIABILITIES AND SHAREHOLDER'S EQUITY Current liabilities Short-term borrowings $ — $ 186 Long-term debt due within one year 154 154 Accounts payable 162 163 Accrued expenses 43 52 Payables to affiliates 20 22 Borrowings from PHI intercompany money pool 12 — Customer deposits 24 24 Regulatory liabilities 25 10 Other 18 10 Total current liabilities 458 621 Long-term debt 1,879 1,779 Deferred credits and other liabilities Deferred income taxes and unamortized investment tax credits 825 816 Regulatory liabilities 141 146 Other 54 62 Total deferred credits and other liabilities 1,020 1,024 Total liabilities 3,357 3,424 Commitments and contingencies Shareholder's equity Common stock 2,009 1,915 Retained earnings 21 10 Total shareholder's equity 2,030 1,925 Total liabilities and shareholder's equity $ 5,387 $ 5,349 See the Combined Notes to Consolidated Financial Statements 48 Table of Content s Atlantic City Electric Company and Subsidiary Company Consolidated Statements Of Changes In Shareholder's Equity (Unaudited) Three Months Ended March 31, 2025 (In millions) Common Stock Retained (Deficit) Earnings Total Shareholder's Equity Balance at December 31, 2024 $ 1,915 $ 10 $ 1,925 Net income — 31 31 Common stock dividends — ( 20 ) ( 20 ) Contributions from parent 94 — 94 Balance at March 31, 2025 $ 2,009 $ 21 $ 2,030 Three Months Ended March 31, 2024 (In millions) Common Stock Retained (Deficit) Earnings Total Shareholder's Equity Balance at December 31, 2023 $ 1,830 $ ( 18 ) $ 1,812 Net income — 29 29 Common stock dividends — ( 22 ) ( 22 ) Contributions from parent 81 — 81 Balance at March 31, 2024 $ 1,911 $ ( 11 ) $ 1,900 See the Combined Notes to Consolidated Financial Statements 49 Table of Contents Combined Notes to Consolidated Financial Statements (Dollars in millions, except per share data, unless otherwise noted) Note 1 — Significant Accounting Policies 1. Significant Accounting Policies (All Registrants) Description of Business (All Registrants) Exelon is a utility services holding company engaged in the energy transmission and distribution businesses through ComEd, PECO, BGE, Pepco, DPL, and ACE. Name of Registrant Business Service Territories Commonwealth Edison Company Purchase and regulated retail sale of electricity Northern Illinois, including the City of Chicago Transmission and distribution of electricity to retail customers PECO Energy Company Purchase and regulated retail sale of electricity and natural gas Southeastern Pennsylvania, including the City of Philadelphia (electricity) Transmission and distribution of electricity and distribution of natural gas to retail customers Pennsylvania counties surrounding the City of Philadelphia (natural gas) Baltimore Gas and Electric Company Purchase and regulated retail sale of electricity and natural gas Central Maryland, including the City of Baltimore (electricity and natural gas) Transmission and distribution of electricity and distribution of natural gas to retail customers Pepco Holdings LLC Utility services holding company engaged, through its reportable segments Pepco, DPL, and ACE Service Territories of Pepco, DPL, and ACE Potomac Electric Power Company Purchase and regulated retail sale of electricity District of Columbia, and major portions of Montgomery and Prince George’s Counties, Maryland Transmission and distribution of electricity to retail customers Delmarva Power & Light Company Purchase and regulated retail sale of electricity and natural gas Portions of Delaware and Maryland (electricity) Transmission and distribution of electricity and distribution of natural gas to retail customers Portions of New Castle County, Delaware (natural gas) Atlantic City Electric Company Purchase and regulated retail sale of electricity Portions of Southern New Jersey Transmission and distribution of electricity to retail customers Basis of Presentation (All Registrants) This is a combined quarterly report of all Registrants. The Notes to the Consolidated Financial Statements apply to the Registrants as indicated parenthetically next to each corresponding disclosure. When appropriate, the Registrants are named specifically for their related activities and disclosures. Each of the Registrant’s Consolidated Financial Statements includes the accounts of its subsidiaries. All intercompany transactions have been eliminated. Through its business services subsidiary, BSC, Exelon provides its subsidiaries with a variety of support services at cost, including legal, human resources, financial, information technology, and supply management services. PHI also has a business services subsidiary, PHISCO, which provides a variety of support services at cost, including legal, finance, engineering, customer operations, transmission and distribution planning, asset management, system operations, and power procurement, to PHI operating Registrants. The costs of BSC and PHISCO are directly charged or allocated to the applicable subsidiaries. The results of Exelon’s corporate operations are presented as “Other” within the consolidated financial statements and include intercompany eliminations unless otherwise disclosed. The accompanying consolidated financial statements as of March 31, 2025 and for the three months ended March 31, 2025 and 2024 are unaudited but, in the opinion of each Registrant's management, the Registrants include all adjustments that are considered necessary for a fair statement of the Registrants’ respective financial statements in accordance with GAAP. All adjustments are of a normal, recurring nature, except as otherwise disclosed. The December 31, 2024 Consolidated Balance Sheets were derived from audited financial statements. The interim financial statements are to be read in conjunction with prior annual financial statements and notes. Additionally, financial results for interim periods are not necessarily indicative of results that may be expected for any other interim period or for the fiscal year ending December 31, 2025. These Combined Notes to Consolidated Financial Statements have been prepared pursuant to the rules and regulations of the SEC for Quarterly Reports on Form 10-Q. Certain information and note disclosures normally included in financial 50 Table of Contents Combined Notes to Consolidated Financial Statements (Dollars in millions, except per share data, unless otherwise noted) Note 1 — Significant Accounting Policies statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. New Accounting Standards (All Registrants) New Accounting Standards Issued and Not Yet Adopted as of March 31, 2025: The following new authoritative accounting guidance issued by the FASB has not yet been adopted and reflected by the Registrants in their consolidated financial statements as of March 31, 2025. Unless otherwise indicated, the Registrants are currently assessing the impacts such guidance may have (which could be material) in their Consolidated Balance Sheets, Consolidated Statements of Operations and Comprehensive Income, Consolidated Statements of Cash Flows and disclosures, as well as the potential to early adopt where applicable. The Registrants have assessed other FASB issuances of new standards which are not listed below given the current expectation that such standards will not significantly impact the Registrants' financial reporting. Improvement to Income Tax Disclosures (Issued December 2023). Provides additional disclosure requirements related to the effective tax rate reconciliation and income taxes paid. Under the revised guidance for the effective tax reconciliations, entities would be required to disclose: (1) eight specific categories in the effective tax rate reconciliation in both percentages and reporting currency amount, (2) additional information for reconciling items over a certain threshold, (3) explanation of individual reconciling items disclosed, and (4) provide a qualitative description of the state and local jurisdictions that contribute to the majority of the state income tax expense. For each annual period presented, the new standard requires disclosure of the year-to-date amount of income taxes paid (net of refunds received) disaggregated by federal, state, and foreign. It also requires additional disaggregated information on income taxes paid (net of refunds received) to an individual jurisdiction equal to or greater than 5% of total income taxes paid (net of refunds received). The standard is effective for annual periods beginning January 1, 2025, with early adoption permitted. Disaggregation of Income Statement Expenses (Issued November 2024). Provides additional disclosure requirements related to relevant expense captions of income statement expense line items. The revised guidance requires a new tabular disclosure of disaggregated income statement expenses including a break out of (1) purchases of inventory, (2) employee compensation, (3) depreciation, (4) intangible asset amortization, (5) depreciation, depletion, and amortization recognized as part of oil and gas producing activities included in each relevant expense line item on the income statement. The tabular disaggregation should include certain amounts already required to be disclosed under GAAP elsewhere. Any remaining amounts not separately disaggregated quantitatively should include a qualitative description. Additionally, on an annual basis, the standard requires disclosure of management’s definition of selling expenses and the amount of expense. The standard is effective January 1, 2027, with early adoption permitted. The Registrants are currently assessing the impacts of this standard. 2. Regulatory Matters (All Registrants) As discussed in Note 3 — Regulatory Matters of the 2024 Form 10-K, the Registrants are involved in rate and regulatory proceedings at FERC and their state commissions. The following discusses developments in 2025 and updates to the 2024 Form 10-K. 51 Table of Contents Combined Notes to Consolidated Financial Statements — (Continued) (Dollars in millions, except per share data, unless otherwise noted) Note 2 — Regulatory Matters Distribution Base Rate Case Proceedings The following tables show the completed and pending distribution base rate case proceedings in 2025. Completed Distribution Base Rate Case Proceedings Registrant/Jurisdiction Filing Date Service Requested Revenue Requirement Increase Approved Revenue Requirement Increase Approved ROE Approval Date Rate Effective Date ComEd - Illinois January 17, 2023 (a) Electric $ 1,487 $ 1,045 8.905 % December 19, 2024 January 1, 2024 April 26, 2024 (amended on September 11, 2024) (b) Electric $ 624 $ 623 9.89 % October 31, 2024 January 1, 2025 PECO - Pennsylvania March 28, 2024 Electric (c)(d) $ 464 $ 354 N/A (e) December 12, 2024 January 1, 2025 Natural Gas (d) $ 111 $ 78 BGE - Maryland (f) February 17, 2023 Electric $ 313 $ 179 9.50 % December 14, 2023 January 1, 2024 Natural Gas $ 289 $ 229 9.45 % Pepco - District of Columbia (g) April 13, 2023 (amended February 27, 2024) Electric $ 186 $ 123 9.50 % November 26, 2024 January 1, 2025 Pepco - Maryland (h) May 16, 2023 (amended February 23, 2024) Electric $ 111 $ 45 9.50 % June 10, 2024 April 1, 2024 DPL - Maryland (i) May 19, 2022 Electric $ 38 $ 29 9.60 % December 14, 2022 January 1, 2023 DPL - Delaware (j) December 15, 2022 (amended September 29, 2023) Electric $ 39 $ 28 9.60 % April 18, 2024 July 15, 2023 ACE - New Jersey (k) February 15, 2023 (amended August 21, 2023) Electric $ 92 $ 45 9.60 % November 17, 2023 December 1, 2023 __________ (a) Reflects a four-year cumulative multi-year rate plan for January 1, 2024 to December 31, 2027. The MRP was originally approved by the ICC on December 14, 2023 and was subsequently amended on January 10, 2024, April 18, 2024 and December 19, 2024. The December 19, 2024 order provided a total revenue requirement increase of $ 1.045 billion inclusive of rate increases of approximately $ 752 million in 2024, $ 80 million in 2025, $ 102 million in 2026, and $ 111 million in 2027. On March 20, 2025, ComEd filed its annual revenue balancing reconciliation for 2024. This reconciliation, which is a component of revenue decoupling, reflected a revenue reduction of $ 55 million, effective January 1, 2026. On April 29, 2025, ComEd filed its 2024 MRP Reconciliation reflecting a revenue increase of $ 268 million, which includes the tax benefit of NOLCs. While NOLCs were included in the MRP Reconciliation, the impacts of the NOLCs will not be reflected in the financial statements until the PLR is received from the IRS. See Note 6 — Income Taxes for additional information on NOLCs. (b) On October 31, 2024, the Delivery Reconciliation Amount for 2023 defined in Rider Delivery Service Pricing Reconciliation (Rider DSPR) was approved. Rider DSPR allows for the reconciliation of the revenue requirement in effect in the final years in which formula rates are determined and until such time as new rates are established under ComEd's approved MRP. The 2024 order reconciled the delivery service rates in effect in 2023 with the actual delivery service costs incurred in 2023. The reconciliation revenue requirement provides for a weighted average debt and equity return on distribution rate base of 7.02 %, inclusive of an allowed ROE of 9.89 %, reflecting the monthly yields on 30-year treasury bonds plus 580 basis points. 52 Table of Contents Combined Notes to Consolidated Financial Statements — (Continued) (Dollars in millions, except per share data, unless otherwise noted) Note 2 — Regulatory Matters (c) PECO’s approved annual electric revenue requirement increase of $ 354 million is partially offset by a one-time credit of $ 64 million in 2025. In addition, the PAPUC approved the recovery of storm damage costs incurred by PECO in January 2024, up to $ 23 million, subject to review for reasonableness and prudency in PECO’s next distribution rate case. (d) On December 12, 2024, the PAPUC issued their Opinions and Orders which approved the non-unanimous partial settlements with limited modifications for both the electric and natural gas base rate cases, and denied the Weather Normalization Adjustment requested in the natural gas base rate case. (e) The PECO electric and natural gas base rate case proceedings were resolved through settlement agreements, which did not specify an approved ROE. (f) Reflects a three-year cumulative multi-year plan for January 1, 2024 through December 31, 2026. The MDPSC awarded BGE electric revenue requirement increases of $ 41 million, $ 113 million, and $ 25 million in 2024, 2025, and 2026, respectively, and natural gas revenue requirement increases of $ 126 million, $ 62 million, and $ 41 million in 2024, 2025, and 2026, respectively. Requested revenue requirement increases will be used to recover capital investments designed to increase the resilience of the electric and gas distribution systems and support Maryland's climate and regulatory initiatives. The MDPSC also approved a portion of the requested 2021 and 2022 reconciliation amounts, which will be recovered through separate electric and gas riders between March 2024 through February 2025. As such, the reconciliation amounts are not included in the approved revenue requirement increases. The 2021 reconciliation amounts are $ 13 million and $ 7 million for electric and gas, respectively, and the 2022 reconciliation amounts are $ 39 million and $ 15 million for electric and gas, respectively. In April 2024, BGE filed with the MDPSC its request for recovery of the 2023 reconciliation amounts of $ 79 million and $ 73 million for electric and gas, respectively, with supporting testimony and schedules. (g) Reflects a two-year cumulative multi-year plan for January 1, 2025, through December 31, 2026. The DCPSC awarded Pepco electric incremental revenue requirement increases of $ 99 million and $ 24 million for 2025 and 2026, respectively. (h) Reflects the amounts requested (before offsets) and awarded for a one-year multi-year plan for April 1, 2024 through March 31, 2025. The MDPSC awarded Pepco an electric incremental revenue requirement increase of $ 45 million for the 12-month period ending March 31, 2025. The MDPSC did not adopt the requested revenue requirement increases of $ 80 million (before offsets), $ 51 million, and $ 14 million as filed for 2025, 2026, and the 2027 nine-month extension period, respectively. The MDPSC also approved the requested reconciliation amounts for the 12-month periods ending March 31, 2022, and March 31, 2023, which will be recovered through a rider between August 2024 through March 2026. As such, the reconciliation amounts are not included in the approved revenue requirement increases. The reconciliation amounts are $ 1 million and $ 7 million, for the 12-month periods ending March 31, 2022, and March 31, 2023, respectively. In July 2024, Pepco filed its request with the MDPSC for recovery of $ 31 million for the 12-month period ended March 31, 2024, with supporting testimony and schedules. (i) Reflects a three-year cumulative multi-year plan for January 1, 2023 through December 31, 2025. The MDPSC awarded DPL electric incremental revenue requirement increases of $ 17 million, $ 6 million, and $ 6 million for 2023, 2024, and 2025, respectively. (j) On April 18, 2024, the DEPSC approved the Significant Storm Expense Rate Rider (Rider SSER) which will allow DPL to recover expenses associated with qualified storms. A qualified storm will be an individual storm for which DPL incurs expenses between $ 5 million and $ 15 million. The Rider SSER allows DPL to recover significant storm damage expenses for the previous 12-month period over a future 24-month period. For individual storm events for which DPL incurs expenses of more than $ 15 million, the future recovery period will be evaluated on a case-by-case basis and the unamortized balance will earn a return at DPL's authorized long-term cost of debt. The Rider SSER will have an annual true-up filing, subject to DEPSC review and approval. (k) Requested and approved increases are before New Jersey sales and use tax. The NJBPU awarded ACE electric revenue requirement increases of $ 36 million and $ 9 million effective December 1, 2023 and February 1, 2024, respectively. Pending Distribution Base Rate Case Proceedings Registrant/Jurisdiction Filing Date Service Requested Revenue Requirement Increase Requested ROE Expected Approval Timing DPL - Delaware (a) September 20, 2024 (amended February 28, 2025) Natural Gas $ 42 10.65 % First quarter of 2026 ACE - New Jersey (b) November 21, 2024 Electric 109 10.70 % Fourth quarter of 2025 __________ (a) DPL implemented interim rates on April 20, 2025, subject to refund. Interim rates are not to exceed 10 % of interstate operating revenues. (b) Requested increases are before New Jersey sales and use tax. ACE intends to put rates into effect on August 21, 2025, subject to refund. 53 Table of Contents Combined Notes to Consolidated Financial Statements — (Continued) (Dollars in millions, except per share data, unless otherwise noted) Note 2 — Regulatory Matters Transmission Formula Rates The Utility Registrants' transmission rates are each established based on a FERC-approved formula. ComEd, BGE, Pepco, DPL, and ACE are required to file an annual update to the FERC-approved formula on or before May 15, and PECO is required to file on or before May 31, with the resulting rates effective on June 1 of the same year. The annual update for BGE is based on prior year actual costs and current year projected capital additions, accumulated depreciation, depreciation and amortization expense, and accumulated deferred income taxes. The update for BGE also reconciles any differences between the actual costs and actual revenues for the calendar year (annual reconciliation). For 2025, the following increase was included in the Utility Registrant's electric transmission formula rate update: Registrant (a) Initial Revenue Requirement Increase Annual Reconciliation Increase Total Revenue Requirement Increase (b) Allowed Return on Rate Base (c) Allowed ROE (d) BGE $ 21 $ 21 $ 35 (e) 7.53 % 10.50 % __________ (a) All rates are effective June 1, 2025 - May 31, 2026, subject to review by interested parties pursuant to review protocols of BGE's tariffs. (b) While the transmission filing reflects the tax benefit of NOLCs, the impacts of the NOLCs will not be reflected in the financial statements until the PLR is received from the IRS. See Note 6 — Income Taxes for additional information on NOLCs. (c) Represents the weighted average debt and equity return on transmission rate base. (d) The rate of return on common equity for BGE includes a 50 -basis-point incentive adder for being a member of an RTO. (e) The increase in BGE's transmission revenue requirement includes a $ 7 million reduction related to a FERC-approved dedicated facilities charge to recover the costs of providing transmission service to specifically designated load by BGE. Other State Regulatory Matters Illinois Regulatory Matters CEJA (Exelon and ComEd). On September 15, 2021, the Governor of Illinois signed into law CEJA. CEJA includes, among other features, (1) procurement of CMCs from qualifying nuclear-powered generating facilities, (2) a requirement to file a general rate case or a new four-year MRP no later than January 20, 2023 to establish rates effective after ComEd’s existing performance-based distribution formula rate sunsets, (3) requirements that ComEd and the ICC initiate and conduct various regulatory proceedings on subjects including ethics, spending, grid investments, and performance metrics. ComEd Electric Distribution Rates Beginning in 2024, ComEd recovers from retail customers, subject to certain exceptions, the costs it incurs to provide electric delivery services either through its electric distribution rate or other recovery mechanisms authorized by CEJA. On January 17, 2023, ComEd filed a petition with the ICC seeking approval of a MRP for 2024-2027. The MRP supports a multi-year grid plan (Grid Plan), also filed on January 17, covering planned investments on the electric distribution system within ComEd’s service area through 2027. Costs incurred during each year of the MRP are subject to ICC review and the plan’s revenue requirement for each year will be reconciled with the actual costs that the ICC determines are prudently and reasonably incurred for that year. The reconciliation is subject to adjustment for certain costs, including a limitation on recovery of costs that are more than 105 % of certain costs in the previously approved MRP revenue requirement, absent a modification of the rate plan itself. Thus, for example, the rate adjustments necessary to reconcile 2024 revenues to ComEd’s actual 2024 costs incurred would take effect in January 2026 after the ICC’s review during 2025. On December 14, 2023, the ICC issued a final order. The ICC rejected ComEd’s Grid Plan as non-compliant with certain requirements of CEJA and required ComEd to file a revised Grid Plan. In the absence of an approved Grid Plan, the ICC set ComEd’s forecast revenue requirements for 2024-2027 based on ComEd's approved year-end 2022 rate base. This resulted in a total cumulative revenue requirement increase of $ 501 million, a $ 986 million total revenue reduction from the requested cumulative revenue requirement increase but remained subject to annual reconciliation in accordance with CEJA. The final order approved the process and formulas associated with the MRP reconciliation mechanisms. The ICC's December 2023 order also denied ComEd's ability to earn a return on its pension asset. 54 Table of Contents Combined Notes to Consolidated Financial Statements — (Continued) (Dollars in millions, except per share data, unless otherwise noted) Note 2 — Regulatory Matters On December 22, 2023, ComEd filed an application for rehearing on several findings in the final order including the use of the 2022 year-end rate base to establish forecast revenue requirements for 2024-2027, ROE, pension asset return, and capital structure. On January 10, 2024, ComEd’s application for rehearing was denied on all issues except for the order’s use of the 2022 year-end rate base. On April 18, 2024, the ICC issued its final order on rehearing, which approved the use of the forecasted year-end 2023 rate base that resulted in increased revenue requirements for 2024-2027. These revenue requirements determined during the rehearing process established base revenue requirements until the ICC approved the Refiled Grid Plan on December 19, 2024. On January 10, 2024, ComEd filed an appeal in the Illinois Appellate Court of the issues on which rehearing was denied, including but not limited to the allowed ROE, 50 % equity ratio, and denial of a return on ComEd’s pension asset. There is no deadline by when the appellate court must rule. On March 13, 2024, ComEd filed its Refiled Grid Plan with supporting testimony and schedules with the ICC and subsequently on March 15, 2024, ComEd also filed a petition to adjust its MRP to authorize increased rates consistent with the Refiled Grid Plan. On December 19, 2024, the ICC approved the Refiled Grid Plan and adjusted the approved MRP with rates effective on January 1, 2025. The final approved MRP, as adjusted, which reflects the Refiled Grid Plan, resulted in a total cumulative revenue requirement increase of $ 1.045 billion over the 2024-2027 plan years and remains subject to annual reconciliations in accordance with CEJA. ComEd filed timely requests for rehearing and an appeal of the MRP order, again limited to the issues on which rehearing of the December 2023 order was denied, including the allowed ROE, 50 % equity ratio, and denial of a return on ComEd's pension asset. In January 2022, ComEd filed a request with the ICC proposing performance metrics that would be used in determining ROE incentives and penalties in the event ComEd filed a MRP in January 2023. On September 27, 2022, the ICC issued a final order approving seven performance metrics that provide symmetrical performance adjustments of 32 total basis points to ComEd’s rate of return on common equity based on the extent to which ComEd achieves the annual performance goals. On November 10, 2022, the ICC granted ComEd's application for rehearing, in part. On April 5, 2023, the ICC issued its final order on rehearing for the performance and tracking metrics proceeding, in which the ICC declined to adopt ComEd's proposed modifications to the reliability and peak load reduction performance metrics. Carbon Mitigation Credit CEJA establishes decarbonization requirements for Illinois as well as programs to support the retention and development of emissions-free sources of electricity. ComEd is required to purchase CMCs from participating nuclear power generating facilities between June 1, 2022 and May 31, 2027. The price to be paid for each CMC was established through a competitive bidding process that included consumer-protection measures that capped the maximum acceptable bid amount and a formula that reduces CMC prices by an energy price index, the base residual auction capacity price in the ComEd zone of PJM, and the monetized value of any federal tax credit or other subsidy if applicable. The seller has not provided notification to ComEd or the IPA that any subsidies or tax credits, such as nuclear production tax credits that became available for electricity generated beginning January 1, 2024, have been monetized and the IPA did not adjust the CMC price paid by ComEd in 2024. The consumer protection measures contained in CEJA will result in net payments to ComEd ratepayers if the energy index, the capacity price and applicable federal tax credits or subsidy exceed the CMC contract price. Beginning with the June 2022 monthly billing period, ComEd began issuing credits and/or charges to its retail customers under its CMC rider, the Rider Carbon-Free Resource Adjustment (Rider CFRA). A regulatory asset is recorded for the difference between ComEd's costs associated with the procurement of CMCs from participating nuclear power generating facilities and revenues received from customers. The balance as of March 31, 2025 is $ 17 million. Energy Efficiency CEJA extends ComEd’s current cumulative annual energy efficiency MWh savings goals through 2040, adds expanded electrification measures to those goals, increases low-income commitments, and adds a new performance adjustment to the energy efficiency formula rate. ComEd expects its annual spend to increase in 2023 through 2040 to achieve these energy efficiency MWh savings goals, which is deferred as a separate regulatory asset that is recovered through the energy efficiency formula rate over the weighted average useful life, as approved by the ICC, of the related energy efficiency measures. Other Federal Regulatory Matters 55 Table of Contents Combined Notes to Consolidated Financial Statements — (Continued) (Dollars in millions, except per share data, unless otherwise noted) Note 2 — Regulatory Matters FERC Audit (Exelon and ComEd). The Utility Registrants are subject to periodic audits and investigations by FERC. FERC’s Division of Audits and Accounting initiated a nonpublic audit of ComEd in April 2021 evaluating ComEd’s compliance with (1) approved terms, rates and conditions of its federally regulated service; (2) accounting requirements of the Uniform System of Accounts; (3) reporting requirements of the FERC Form 1; and (4) the requirements for record retention. The audit period extended back to January 1, 2017. On July 27, 2023, FERC published a final audit report which included, among other things, findings and recommendations related to ComEd's methodology regarding the allocation of certain overhead costs to capitalized construction costs under FERC regulations, including a suggestion that refunds may be due to customers for amounts collected in previous years. ComEd responded to that report and on August 28, 2023, ComEd filed a formal notice of the issues it contested within the audit report. On December 14, 2023, FERC appointed a settlement judge for the contested overhead allocation findings and set the matter for a trial-type hearing. That hearing process was held in abeyance while a formal settlement process, which began in February 2024, took place. On July 30, 2024, ComEd reached an agreement in principle on the contested overhead allocation finding. As a result of the settlement process, ComEd recorded a charge for the probable disallowance of $ 70 million of certain currently capitalized construction costs to operating expenses, which are not expected to be recovered in future rates. The existing loss estimate was reflected in Exelon and ComEd's financial statements as of December 31, 2024. ComEd and FERC staff jointly filed the settlement agreement with FERC for approval on February 11, 2025. The settlement was approved by FERC on April 4, 2025. Regulatory Assets and Liabilities The Utility Registrants' regulatory assets and liabilities have not changed materially since December 31, 2024, unless noted below. See Note 3 — Regulatory Matters of the 2024 Form 10-K for additional information on the specific regulatory assets and liabilities. PECO. Regulatory assets increased $ 61 million primarily due to an increase of $ 71 million in the Deferred Income Taxes regulatory asset. Regulatory liabilities increased $ 93 million primarily due to an increase of $ 64 million in the Decommissioning the Regulatory Agreement Units and an increase of $ 32 million in the Electric energy and natural gas costs regulatory liabilities. ACE. Regulatory liabilities increased $ 10 million primarily due to an increase of $ 8 million in the Transmission formula rate annual reconciliations regulatory liability. Capitalized Ratemaking Amounts Not Recognized The following table presents authorized amounts capitalized for ratemaking purposes related to earnings on shareholders' investment that are not recognized for financial reporting purposes in the Registrants' Consolidated Balance Sheets. These amounts will be recognized as revenues in the related Consolidated Statements of Operations and Comprehensive Income in the periods they are billable to the Utility Registrants' customers. PECO had no related amounts at March 31, 2025 and December 31, 2024. Exelon ComEd (a) BGE (b) PHI Pepco (c) DPL (d) ACE (e) March 31, 2025 $ 87 $ 38 $ 9 $ 40 $ 24 $ 1 $ 15 December 31, 2024 117 46 16 55 40 1 14 __________ (a) Reflects ComEd's unrecognized equity returns earned for ratemaking purposes on its electric distribution rates and formula rates regulatory assets. (b) BGE's amount capitalized for ratemaking purposes primarily relates to earnings on shareholders' investment on AMI programs and investments in rate base included in the multi-year plan reconciliations. (c) Pepco's authorized amounts capitalized for ratemaking purposes relate to earnings on shareholders' investment on AMI programs, Energy efficiency and demand response programs, investments in rate base and revenues included in the multi-year plan reconciliations, and a portion of Pepco District of Columbia's revenue decoupling. (d) DPL's authorized amounts capitalized for ratemaking purposes relate to earnings on shareholders' investment on AMI programs and Energy efficiency and demand response programs. (e) ACE's authorized amounts capitalized for ratemaking purposes primarily relate to earnings on shareholders' investment on AMI programs. 56 Table of Contents Combined Notes to Consolidated Financial Statements — (Continued) (Dollars in millions, except per share data, unless otherwise noted) Note 3 — Revenue from Contracts with Customers 3. Revenue from Contracts with Customers (All Registrants) The Registrants recognize revenue from contracts with customers to depict the transfer of goods or services to customers at an amount that the entities expect to be entitled to in exchange for those goods or services. The primary sources of revenue include regulated electric and gas tariff sales, distribution, and transmission services. See Note 4 — Revenue from Contracts with Customers of the 2024 Form 10-K for additional information regarding the primary sources of revenue for the Registrants. Contract Liabilities The Registrants record contract liabilities when consideration is received or due prior to the satisfaction of the performance obligations. The Registrants record contract liabilities in Other current liabilities and Other noncurrent deferred credits and other liabilities in their Consolidated Balance Sheets. For Pepco, DPL, and ACE these contract liabilities primarily relate to upfront consideration received in the third quarter of 2020 for a collaborative arrangement ("Agreement") with an unrelated owner and manager of communication infrastructure, as well as additional consideration received for the payment option amendment ("Amendment") executed during the fourth quarter of 2023, which is discussed in further detail within Note 4 — Revenue from Contracts with Customers of the 2024 Form 10-K. The contract liability balance attributable to the Agreement and the Amendment is being recognized as Electric operating revenues over a 35 year period and 31 year period, respectively. The following table provides a rollforward of the contract liabilities reflected in Exelon's, PHI's, Pepco's, DPL's, and ACE's Consolidated Balance Sheets for the three months ended March 31, 2025 and 2024. At March 31, 2025 and December 31, 2024, ComEd's, PECO's, and BGE's contract liabilities were immaterial. Exelon (a) PHI (a) Pepco (a) DPL ACE Balance at December 31, 2024 $ 127 $ 127 $ 101 $ 13 $ 13 Revenues recognized ( 1 ) ( 1 ) ( 1 ) — — Balance at March 31, 2025 $ 126 $ 126 $ 100 $ 13 $ 13 Exelon (a) PHI (a) Pepco (a) DPL ACE Balance at December 31, 2023 $ 133 $ 133 $ 107 $ 13 $ 13 Revenues recognized ( 2 ) ( 2 ) ( 2 ) — — Balance at March 31, 2024 $ 131 $ 131 $ 105 $ 13 $ 13 __________ (a) Revenues recognized in the three months ended March 31, 2025 and 2024, were included in the contract liabilities at December 31, 2024 and 2023, respectively. Transaction Price Allocated to Remaining Performance Obligations The following table shows the amounts of future revenues expected to be recorded in each year for performance obligations that are unsatisfied or partially unsatisfied as of March 31, 2025. This disclosure only includes contracts for which the total consideration is fixed and determinable at contract inception. The average contract term varies by customer type and commodity but ranges from one month to several years. This disclosure excludes the Utility Registrants' gas and electric tariff sales contracts and transmission revenue contracts as they generally have an original expected duration of one year or less and, therefore, do not contain any future, unsatisfied performance obligations to be included in this disclosure. 57 Table of Contents Combined Notes to Consolidated Financial Statements — (Continued) (Dollars in millions, except per share data, unless otherwise noted) Note 3 — Revenue from Contracts with Customers Year Exelon PHI Pepco DPL ACE 2025 $ 4 $ 4 $ 4 $ — $ — 2026 6 6 5 1 — 2027 5 5 5 — — 2028 5 5 5 — — 2029 and thereafter 106 106 81 12 13 Total $ 126 $ 126 $ 100 $ 13 $ 13 Revenue Disaggregation The Registrants disaggregate revenue recognized from contracts with customers into categories that depict how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors. See Note 4 — Segment Information for the presentation of the Registrants' revenue disaggregation. 4. Segment Information (All Registrants) Operating segments for each of the Registrants are determined based on information used by the CODMs in deciding how to evaluate performance and allocate resources at each of the Registrants. The Chief Executive Officer is the CODM for Exelon. For PHI and each of the Utility Registrants, CODM responsibilities are shared by Exelon's Chief Operating Officer and the Utility Registrant's Chief Executive Officer. Exelon has six reportable segments, which include ComEd, PECO, BGE, and PHI's three reportable segments consisting of Pepco, DPL, and ACE. ComEd, PECO, BGE, Pepco, DPL, and ACE each represent a single reportable segment, and as such, no separate segment information is provided for these Registrants. Exelon, ComEd, PECO, BGE, PHI, Pepco, DPL, and ACE's CODMs rely on a variety of business considerations, including net income, in evaluating segment performance, determining reinvestment of profits, and establishing the amounts of dividend distributions. An analysis and reconciliation of the Registrants’ reportable segment information to the respective information in the consolidated financial statements for the three months ended March 31, 2025 and 2024 is as follows: ComEd PECO BGE PHI Other (a) Intersegment Eliminations Exelon Operating revenues (b) : 2025 Electric revenues $ 2,065 $ 956 $ 1,012 $ 1,687 $ — $ ( 11 ) $ 5,709 Natural gas revenues — 377 542 88 — ( 2 ) 1,005 Shared service and other revenues — — — 3 466 ( 469 ) — Total operating revenues $ 2,065 $ 1,333 $ 1,554 $ 1,778 $ 466 $ ( 482 ) $ 6,714 2024 Electric revenues $ 2,095 $ 782 $ 881 $ 1,532 $ — $ ( 6 ) $ 5,284 Natural gas revenues — 272 416 72 — ( 1 ) 759 Shared service and other revenues — — — 2 459 ( 461 ) — Total operating revenues $ 2,095 $ 1,054 $ 1,297 $ 1,606 $ 459 $ ( 468 ) $ 6,043 Less: Purchased power 2025 $ 689 $ 361 $ 450 $ 684 $ — $ — $ 2,184 2024 907 306 377 607 — — 2,197 Purchased fuel 2025 $ — $ 141 $ 159 $ 38 $ — $ — $ 338 2024 — 97 87 29 — — 213 58 Table of Contents Combined Notes to Consolidated Financial Statements — (Continued) (Dollars in millions, except per share data, unless otherwise noted) Note 4 — Segment Information ComEd PECO BGE PHI Other (a) Intersegment Eliminations Exelon Operating and maintenance 2025 $ 323 $ 266 $ 242 $ 296 $ 429 $ ( 209 ) $ 1,347 2024 318 235 205 274 438 ( 199 ) 1,271 Operating and maintenance from affiliates 2025 $ 100 $ 61 $ 63 $ 53 $ 11 $ ( 288 ) $ — 2024 100 58 59 51 9 ( 277 ) — Depreciation and amortization 2025 $ 380 $ 109 $ 164 $ 234 $ 16 $ — $ 903 2024 362 104 150 246 17 — 879 Taxes other than income taxes 2025 $ 99 $ 60 $ 96 $ 140 $ 10 $ — $ 405 2024 94 51 89 128 9 — 371 (Gain) loss on sale of assets 2025 $ — $ — $ — $ 1 $ — $ — $ 1 2024 — ( 2 ) — — — — ( 2 ) Interest expense, net (c) 2025 $ 125 $ 59 $ 58 $ 99 $ 163 $ — $ 504 2024 119 52 50 90 151 — 462 Interest expense from affiliates, net (c) 2025 $ 3 $ 4 $ — $ 1 $ ( 1 ) $ ( 1 ) $ 6 2024 3 3 — — — — 6 Other, net 2025 $ ( 21 ) $ ( 8 ) $ ( 9 ) $ ( 19 ) $ ( 11 ) $ 16 $ ( 52 ) 2024 ( 20 ) ( 9 ) ( 8 ) ( 27 ) ( 19 ) 8 ( 75 ) Income taxes 2025 $ 65 $ 14 $ 71 $ 57 $ ( 37 ) $ — $ 170 2024 19 10 24 40 ( 30 ) — 63 Net income (loss) attributable to common shareholders 2025 $ 302 $ 266 $ 260 $ 194 $ ( 114 ) $ — $ 908 2024 193 149 264 168 ( 116 ) — 658 Supplemental segment information Intersegment revenues (d) 2025 $ 8 $ 3 $ 2 $ 2 $ 463 $ ( 478 ) $ — 2024 2 2 2 3 457 ( 466 ) — Capital expenditures 2025 $ 590 $ 424 $ 406 $ 513 $ 13 $ — $ 1,946 2024 594 361 324 453 35 — 1,767 Total assets March 31, 2025 $ 45,199 $ 17,789 $ 15,677 $ 28,349 $ 6,530 $ ( 4,060 ) $ 109,484 December 31, 2024 44,750 17,123 15,542 28,297 6,012 ( 3,940 ) 107,784 __________ (a) Other primarily includes Exelon’s corporate operations, shared service entities, and other financing and investment activities. (b) Includes gross utility tax receipts from customers. The offsetting remittance of utility taxes to the governing bodies is recorded in Taxes other than income taxes in the Registrants’ Consolidated Statements of Operations and Comprehensive Income. See Note 14 — Supplemental Financial Information for additional information on total utility taxes. 59 Table of Contents Combined Notes to Consolidated Financial Statements — (Continued) (Dollars in millions, except per share data, unless otherwise noted) Note 4 — Segment Information (c) Interest expense, net and Interest expense to affiliates, net are primarily inclusive of Interest expense, which is partially offset by an immaterial amount of Interest income. (d) See Note 15 — Related Party Transactions for additional information on intersegment revenues. PHI: Pepco DPL ACE Other (a) Intersegment Eliminations PHI Operating revenues (b) : 2025 Electric revenues $ 859 $ 460 $ 373 $ — $ ( 5 ) $ 1,687 Natural gas revenues — 88 — — — 88 Shared service and other revenues — — — 106 ( 103 ) 3 Total operating revenues $ 859 $ 548 $ 373 $ 106 $ ( 108 ) $ 1,778 2024 Electric revenues $ 759 $ 419 $ 358 $ — $ ( 4 ) $ 1,532 Natural gas revenues — 72 — — — 72 Shared service and other revenues — — — 109 ( 107 ) 2 Total operating revenues $ 759 $ 491 $ 358 $ 109 $ ( 111 ) $ 1,606 Less: Purchased power 2025 $ 318 $ 209 $ 157 $ — $ — $ 684 2024 281 186 140 — — 607 Purchased fuel 2025 $ — $ 38 $ — $ — $ — $ 38 2024 — 29 — — — 29 Operating and maintenance 2025 $ 96 $ 60 $ 51 $ 89 $ — $ 296 2024 86 51 47 90 — 274 Operating and maintenance from affiliates 2025 $ 63 $ 46 $ 39 $ 13 $ ( 108 ) $ 53 2024 64 44 40 14 ( 111 ) 51 Depreciation and amortization 2025 $ 105 $ 63 $ 64 $ 2 $ — $ 234 2024 107 61 74 4 — 246 Taxes other than income taxes 2025 $ 113 $ 21 $ 2 $ 4 $ — $ 140 2024 102 20 2 4 — 128 Loss on sale of assets 2025 $ 1 $ — $ — $ — $ — $ 1 2024 — — — — — — Interest expense, net (c) 2025 $ 52 $ 25 $ 21 $ 1 $ — $ 99 2024 45 22 20 3 — 90 Interest expense to affiliates, net (c) 2025 $ — $ — $ — $ 1 $ — $ 1 2024 — — — — — — Other, net 2025 $ ( 11 ) $ ( 4 ) $ ( 3 ) $ ( 1 ) $ — $ ( 19 ) 2024 ( 15 ) ( 5 ) ( 5 ) ( 2 ) — ( 27 ) 60 Table of Contents Combined Notes to Consolidated Financial Statements — (Continued) (Dollars in millions, except per share data, unless otherwise noted) Note 4 — Segment Information Income taxes 2025 $ 25 $ 21 $ 11 $ — $ — $ 57 2024 14 17 11 ( 2 ) — 40 Net income (loss) attributable to common shareholders 2025 $ 97 $ 69 $ 31 $ ( 3 ) $ — $ 194 2024 75 66 29 ( 2 ) — 168 Supplemental segment information Intersegment revenues (d) 2025 $ 2 $ 2 $ 1 $ 106 $ ( 109 ) $ 2 2024 2 2 1 109 ( 111 ) 3 Capital expenditures 2025 $ 240 $ 156 $ 105 $ 12 $ — $ 513 2024 229 134 89 1 — 453 Total assets March 31, 2025 $ 12,011 $ 6,484 $ 5,387 $ 4,521 $ ( 54 ) $ 28,349 December 31, 2024 12,000 6,421 5,349 4,567 ( 40 ) 28,297 __________ (a) Other primarily includes PHI’s corporate operations, shared service entities, and other financing and investment activities. (b) Includes gross utility tax receipts from customers. The offsetting remittance of utility taxes to the governing bodies is recorded in Taxes other than income taxes in the Registrants’ Consolidated Statements of Operations and Comprehensive Income. See Note 14 — Supplemental Financial Information for additional information on total utility taxes. (c) Interest expense, net and Interest expense to affiliates, net are primarily inclusive of Interest expense, which is partially offset by an immaterial amount of Interest income. (d) Includes intersegment revenues with ComEd, PECO, and BGE, which are eliminated at Exelon. Electric and Gas Revenue by Customer Class (Utility Registrants): The following tables disaggregate the Registrants' revenues recognized from contracts with customers into categories that depict how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors. For the Utility Registrants, the disaggregation of revenues reflects the two primary utility services of electric sales and natural gas sales (where applicable), with further disaggregation of these tariff sales provided by major customer groups. Exelon’s disaggregated revenues are consistent with the Utility Registrants, but exclude any intercompany revenues. 61 Table of Contents Combined Notes to Consolidated Financial Statements — (Continued) (Dollars in millions, except per share data, unless otherwise noted) Note 4 — Segment Information Three Months Ended March 31, 2025 Revenues from contracts with customers ComEd PECO BGE PHI Pepco DPL ACE Electric revenues Residential $ 993 $ 631 $ 648 $ 918 $ 424 $ 298 $ 196 Small commercial & industrial 600 162 109 169 51 64 54 Large commercial & industrial 296 84 144 367 289 28 50 Public authorities & electric railroads 17 8 8 17 8 4 5 Other (a) 236 76 113 223 86 71 68 Total electric revenues (b) $ 2,142 $ 961 $ 1,022 $ 1,694 $ 858 $ 465 $ 373 Natural gas revenues Residential $ — $ 267 $ 378 $ 56 $ — $ 56 $ — Small commercial & industrial — 86 63 21 — 21 — Large commercial & industrial — — 96 3 — 3 — Transportation — 13 — 5 — 5 — Other (c) — 10 24 3 — 3 — Total natural gas revenues (d) $ — $ 376 $ 561 $ 88 $ — $ 88 $ — Total revenues from contracts with customers $ 2,142 $ 1,337 $ 1,583 $ 1,782 $ 858 $ 553 $ 373 Other revenues Revenues from alternative revenue programs $ ( 85 ) $ ( 9 ) $ ( 29 ) $ ( 3 ) $ 2 $ ( 5 ) $ — Other electric revenues (e) 8 4 — ( 1 ) ( 1 ) — — Other natural gas revenues (e) — 1 — — — — — Total other revenues $ ( 77 ) $ ( 4 ) $ ( 29 ) $ ( 4 ) $ 1 $ ( 5 ) $ — Total revenues for reportable segments $ 2,065 $ 1,333 $ 1,554 $ 1,778 $ 859 $ 548 $ 373 62 Table of Contents Combined Notes to Consolidated Financial Statements — (Continued) (Dollars in millions, except per share data, unless otherwise noted) Note 4 — Segment Information Three Months Ended March 31, 2024 Revenues from contracts with customers ComEd PECO BGE PHI Pepco DPL ACE Electric revenues Residential $ 918 $ 520 $ 534 $ 775 $ 345 $ 256 $ 174 Small commercial & industrial 594 126 90 158 46 62 50 Large commercial & industrial 320 57 132 340 262 29 49 Public authorities & electric railroads 17 7 7 20 11 4 5 Other (a) 227 74 93 192 64 63 67 Total electric revenues (b) $ 2,076 $ 784 $ 856 $ 1,485 $ 728 $ 414 $ 345 Natural gas revenues Residential $ — $ 193 $ 271 $ 46 $ — $ 46 $ — Small commercial & industrial — 64 47 17 — 17 — Large commercial & industrial — — 72 2 — 2 — Transportation — 8 — 5 — 5 — Other (c) — 7 5 2 — 2 — Total natural gas revenues (d) $ — $ 272 $ 395 $ 72 $ — $ 72 $ — Total revenues from contracts with customers $ 2,076 $ 1,056 $ 1,251 $ 1,557 $ 728 $ 486 $ 345 Other revenues Revenues from alternative revenue programs $ 19 $ ( 2 ) $ 43 $ 46 $ 29 $ 4 $ 13 Other electric revenues (e) — — 2 3 2 1 — Other natural gas revenues (e) — — 1 — — — — Total other revenues $ 19 $ ( 2 ) $ 46 $ 49 $ 31 $ 5 $ 13 Total revenues for reportable segments $ 2,095 $ 1,054 $ 1,297 $ 1,606 $ 759 $ 491 $ 358 __________ (a) Includes transmission revenue from PJM, wholesale electric revenue, and mutual assistance revenue. (b) Includes operating revenues from affiliates in 2025 and 2024 respectively of: • $ 8 million, $ 2 million at ComEd • $ 2 million, $ 2 million at PECO • $ 1 million, $ 1 million at BGE • $ 2 million, $ 3 million at PHI • $ 2 million, $ 2 million at Pepco • $ 2 million, $ 2 million at DPL • $ 1 million, $ 1 million at ACE (c) Includes revenues from off-system natural gas sales. (d) Includes operating revenues from affiliates in 2025 and 2024 respectively of: • $ 1 million, less than $1 million at PECO • $ 1 million, $ 1 million at BGE (e) Includes late payment charge revenues. 63 Table of Contents Combined Notes to Consolidated Financial Statements — (Continued) (Dollars in millions, except per share data, unless otherwise noted) Note 5 — Accounts Receivable 5. Accounts Receivable (All Registrants) Allowance for Credit Losses on Accounts Receivable The following tables present the rollforward of Allowance for Credit Losses on Customer Accounts Receivable. Three Months Ended March 31, 2025 Exelon ComEd PECO BGE PHI Pepco DPL ACE Balance at December 31, 2024 $ 406 $ 109 $ 133 $ 56 $ 108 $ 59 $ 17 $ 32 Plus: Current period provision for expected credit losses (a) 133 33 41 23 36 17 10 9 Less: Write-offs (b) , net of recoveries (c) 53 17 14 7 15 7 4 4 Balance at March 31, 2025 $ 486 $ 125 $ 160 $ 72 $ 129 $ 69 $ 23 $ 37 Three Months Ended March 31, 2024 Exelon ComEd PECO BGE PHI Pepco DPL ACE Balance at December 31, 2023 $ 317 $ 69 $ 95 $ 46 $ 107 $ 52 $ 19 $ 36 Plus: Current period provision for expected credit losses 79 22 23 15 19 12 3 4 Less: Write-offs, net of recoveries 50 9 11 9 21 12 5 4 Balance at March 31, 2024 $ 346 $ 82 $ 107 $ 52 $ 105 $ 52 $ 17 $ 36 _________ (a) For ComEd, PECO, BGE, Pepco, DPL, and ACE, the increase is primarily a result of increased receivable balances. (b) For Pepco, the decrease is primarily attributable to favorable customer payment behavior. (c) Recoveries were not material to the Registrants. The following tables present the rollforward of Allowance for Credit Losses on Other Accounts Receivable. Three Months Ended March 31, 2025 Exelon ComEd PECO BGE PHI Pepco DPL ACE Balance at December 31, 2024 $ 107 $ 34 $ 18 $ 6 $ 49 $ 27 $ 9 $ 13 Plus: Current period provision for expected credit losses (a) 15 2 9 1 3 — — 3 Less: Write-offs (b) , net of recoveries (c) 9 2 5 1 1 — — 1 Balance at March 31, 2025 $ 113 $ 34 $ 22 $ 6 $ 51 $ 27 $ 9 $ 15 Three Months Ended March 31, 2024 Exelon ComEd PECO BGE PHI Pepco DPL ACE Balance at December 31, 2023 $ 82 $ 17 $ 8 $ 7 $ 50 $ 28 $ 8 $ 14 Plus: Current period provision for expected credit losses 18 3 5 2 8 7 — 1 Less: Write-offs, net of recoveries 4 1 — 2 1 — — 1 Balance at March 31, 2024 $ 96 $ 19 $ 13 $ 7 $ 57 $ 35 $ 8 $ 14 _________ (a) For Pepco, the decrease is primarily a result of changes in customer risk profile. (b) For PECO, the increase is primarily a result of increased terminations. (c) Recoveries were not material to the Registrants. 64 Table of Contents Combined Notes to Consolidated Financial Statements — (Continued) (Dollars in millions, except per share data, unless otherwise noted) Note 5 — Accounts Receivable Unbilled Customer Revenue The following table provides additional information about unbilled customer revenues recorded in the Registrants' Consolidated Balance Sheets as of March 31, 2025 and December 31, 2024. Unbilled customer revenues (a) Exelon ComEd PECO BGE PHI Pepco DPL ACE March 31, 2025 $ 961 $ 366 $ 235 $ 171 $ 189 $ 95 $ 51 $ 43 December 31, 2024 1,114 335 254 257 268 121 76 71 __________ (a) Unbilled customer revenues are classified in Customer accounts receivable, net in the Registrants' Consolidated Balance Sheets. Other Purchases of Customer and Other Accounts Receivables For the three months ended March 31, 2025 and 2024, the Utility Registrants were required, under separate legislation and regulations in Illinois, Pennsylvania, Maryland, District of Columbia, Delaware, and New Jersey, to purchase certain receivables from alternative retail electric and, as applicable, natural gas suppliers that participated in the utilities' consolidated billing. The following table presents the total receivables purchased. Total receivables purchased Exelon ComEd PECO BGE PHI Pepco DPL ACE Three months ended March 31, 2025 $ 1,138 $ 253 $ 334 $ 225 $ 326 $ 201 $ 68 $ 57 Three months ended March 31, 2024 1,060 235 297 219 309 194 60 55 65 Table of Contents Combined Notes to Consolidated Financial Statements — (Continued) (Dollars in millions, except per share data, unless otherwise noted) Note 6 — Income Taxes 6. Income Taxes (All Registrants) Rate Reconciliation The effective income tax rate from continuing operations varies from the U.S. federal statutory rate principally due to the following: Three Months Ended March 31, 2025 (a) Exelon ComEd (b) PECO (c) BGE PHI Pepco DPL ACE U.S. Federal statutory rate 21.0 % 21.0 % 21.0 % 21.0 % 21.0 % 21.0 % 21.0 % 21.0 % Increase (decrease) due to: State income taxes, net of federal income tax benefit 5.1 7.6 ( 3.5 ) 6.2 6.5 6.4 6.4 7.0 Plant basis differences ( 3.8 ) ( 1.0 ) ( 11.1 ) ( 1.5 ) ( 0.7 ) ( 1.0 ) ( 0.5 ) ( 0.3 ) Excess deferred tax amortization ( 6.5 ) ( 9.4 ) ( 1.6 ) ( 4.1 ) ( 3.9 ) ( 5.3 ) ( 3.3 ) ( 1.4 ) Amortization of investment tax credit, including deferred taxes on basis difference — ( 0.1 ) — — — — ( 0.1 ) ( 0.1 ) Tax credits ( 0.5 ) ( 0.7 ) — ( 0.3 ) ( 0.3 ) ( 0.3 ) ( 0.3 ) ( 0.3 ) Other 0.5 0.3 0.2 0.2 0.1 ( 0.3 ) 0.1 0.3 Effective income tax rate 15.8 % 17.7 % 5.0 % 21.5 % 22.7 % 20.5 % 23.3 % 26.2 % Three Months Ended March 31, 2024 (a) Exelon ComEd (d) PECO (c) BGE (d) PHI Pepco DPL ACE U.S. Federal statutory rate 21.0 % 21.0 % 21.0 % 21.0 % 21.0 % 21.0 % 21.0 % 21.0 % Increase (decrease) due to: State income taxes, net of federal income tax benefit 6.4 7.8 ( 0.6 ) 6.3 6.4 6.2 6.2 7.1 Plant basis differences ( 3.8 ) ( 0.9 ) ( 12.2 ) ( 1.2 ) ( 0.9 ) ( 1.3 ) ( 1.1 ) 0.1 Excess deferred tax amortization ( 14.7 ) ( 18.9 ) ( 2.3 ) ( 17.5 ) ( 6.8 ) ( 9.9 ) ( 5.4 ) ( 1.3 ) Amortization of investment tax credit, including deferred taxes on basis difference ( 0.1 ) ( 0.1 ) — — ( 0.1 ) — ( 0.1 ) ( 0.1 ) Tax credits ( 0.4 ) ( 0.3 ) — ( 0.4 ) ( 0.3 ) ( 0.3 ) ( 0.3 ) ( 0.3 ) Other 0.3 0.4 0.4 0.1 ( 0.1 ) — 0.2 1.0 Effective income tax rate 8.7 % 9.0 % 6.3 % 8.3 % 19.2 % 15.7 % 20.5 % 27.5 % __________ (a) Positive percentages represent income tax expense. Negative percentages represent income tax benefit. (b) For ComEd, the lower effective tax rate is primarily due to CEJA which resulted in the acceleration of certain income tax benefits. (c) For PECO, the lower effective tax rate is primarily related to plant basis differences attributable to tax repair deductions. (d) For ComEd, the lower effective tax rate is primarily due to CEJA which resulted in the acceleration of certain income tax benefits. For BGE, the lower effective tax rate is primarily due to the Maryland multi-year plan which resulted in the acceleration of certain income tax benefits. 66 Table of Contents Combined Notes to Consolidated Financial Statements — (Continued) (Dollars in millions, except per share data, unless otherwise noted) Note 6 — Income Taxes Unrecognized Tax Benefits Exelon, PHI and DPL have the following unrecognized tax benefits at March 31, 2025 and December 31, 2024. ComEd's, PECO's, BGE's, Pepco's, and ACE's amounts are not material. Exelon (a) PHI DPL March 31, 2025 $ 100 $ 51 $ 15 December 31, 2024 96 48 12 __________ (a) At March 31, 2025 and December 31, 2024, Exelon's unrecognized tax benefits is inclusive of $ 31 million related to Constellation's share of unrecognized tax benefits for periods prior to the separation. Exelon reflected an offsetting receivable of $ 31 million in Other deferred debits and other assets in the Consolidated Balance Sheet for these amounts. Other Tax Matters Tax Matters Agreement (Exelon) In connection with the separation, Exelon entered into a TMA with Constellation. The TMA governs the respective rights, responsibilities, and obligations between Exelon and Constellation after the separation with respect to tax liabilities, refunds and attributes for open tax years that Constellation was part of Exelon’s consolidated group for U.S. federal, state, and local tax purposes. Indemnification for Taxes. As a former subsidiary of Exelon, Constellation has joint and several liability with Exelon to the IRS and certain state jurisdictions relating to the taxable periods prior to the separation. The TMA specifies that Constellation is liable for their share of taxes required to be paid by Exelon with respect to taxable periods prior to the separation to the extent Constellation would have been responsible for such taxes under the existing Exelon tax sharing agreement. At March 31, 2025, there is no balance due to or from Constellation. Tax Refunds. The TMA specifies that Constellation is entitled to their share of any future tax refunds claimed by Exelon with respect to taxable periods prior to the separation to the extent that Constellation would have received such tax refunds under the existing Exelon tax sharing agreement. At March 31, 2025, there is no balance due to or from Constellation. Tax Attributes . At the date of separation certain tax attributes, primarily pre-closing tax credit carryforwards, that were generated by Constellation were required by law to be allocated to Exelon. The TMA also provides that Exelon will reimburse Constellation when those allocated tax attribute carryforwards are utilized. At March 31, 2025, Exelon recorded a payable of $ 141 million and $ 198 million in Other current liabilities and Other deferred credits and other liabilities, respectively, in the Consolidated Balance Sheet for tax attribute carryforwards that are expected to be utilized and reimbursed to Constellation. Corporate Alternative Minimum Tax (All Registrants) On August 16, 2022, the IRA was signed into law and implements a new corporate alternative minimum tax (CAMT) that imposes a 15.0 % tax on modified GAAP net income. Corporations are entitled to a tax credit (minimum tax credit) to the extent the CAMT liability exceeds the regular tax liability. This amount can be carried forward indefinitely and used in future years when regular tax exceeds the CAMT. Beginning in 2023, based on the existing statute, Exelon and each of the Utility Registrants will be subject to and will report the CAMT on a separate Registrant basis in the Consolidated Statements of Operations and Comprehensive Income and the Consolidated Balance Sheets. The deferred tax asset related to the minimum tax credit carryforward will be realized to the extent Exelon’s consolidated deferred tax liabilities exceed the minimum tax credit carryforward. Exelon’s deferred tax liabilities are expected to exceed the minimum tax credit carryforward for the foreseeable future and thus no valuation allowance is required. On September 12, 2024, the U.S. Treasury issued proposed regulations providing further guidance addressing the implementation of CAMT. The proposed regulations are consistent with Exelon’s prior interpretation and therefore there are no financial statement impacts. Exelon will continue to monitor and assess the potential financial statement impacts of final regulations or other guidance when issued. 67 Table of Contents Combined Notes to Consolidated Financial Statements — (Continued) (Dollars in millions, except per share data, unless otherwise noted) Note 6 — Income Taxes Allocation of Income Taxes to Regulated Utilities (All Registrants) In Q2 2024, the IRS issued a series of PLRs, to another taxpayer, providing guidance with respect to the application of the tax normalization rules to the allocation of consolidated tax benefits among the members of a consolidated group associated with NOLC for ratemaking purposes. The rulings provide that for ratemaking purposes the tax benefit of NOLC should be reflected on a separate company basis not taking into consideration the utilization of losses by other affiliates. A PLR issued to another taxpayer may not be relied on as precedent. For the Utility Registrants, except for PECO, the methodology prescribed by the IRS in these PLRs could result in a material reduction of the regulatory liability established for EDITs arising from the TCJA corporate tax rate change that are being amortized and flowed through to customers as well as a reduction in the accumulated deferred income taxes included in rate base for ratemaking purposes. The Utility Registrants, except for PECO, filed PLR requests with the IRS confirming the treatment of the NOLC for ratemaking purposes. The Utility Registrants will record the impact, if any, upon receiving the PLR from the IRS. 7. Retirement Benefits (All Registrants) Defined Benefit Pension and OPEB The majority of the 2025 pension benefit cost for the Exelon-sponsored plans is calculated using an expected long-term rate of return on plan assets of 7.00 % and a discount rate of 5.68 %. The majority of the 2025 OPEB cost is calculated using an expected long-term rate of return on plan assets of 6.50 % for funded plans and a discount rate of 5.64 %. During the first quarter of 2025, Exelon received an updated valuation of its pension and OPEB to reflect actual census data as of January 1, 2025. This valuation resulted in an increase to the pension obligation of $ 1 million and an increase to the OPEB obligation and asset of $ 6 million and $ 2 million, respectively. Additionally, AOCI decreased by $ 5 million (after-tax) and regulatory assets increased by $ 8 million and liabilities decreased by $ 3 million. A portion of the net periodic benefit cost for all plans is capitalized within the Consolidated Balance Sheets. The following table presents the components of Exelon's net periodic benefit costs, prior to capitalization, for the three months ended March 31, 2025 and 2024. Pension Benefits OPEB Three Months Ended March 31, Three Months Ended March 31, 2025 2024 2025 2024 Components of net periodic benefit cost Service cost $ 38 $ 42 $ 6 $ 7 Interest cost 146 141 25 24 Expected return on assets ( 178 ) ( 184 ) ( 21 ) ( 21 ) Amortization of: Prior service cost (credit) 1 1 ( 2 ) ( 2 ) Actuarial loss 53 53 — — Net periodic benefit cost $ 60 $ 53 $ 8 $ 8 The amounts below represent the Registrants' allocated pension and OPEB costs. For Exelon, the service cost component is included in Operating and maintenance expense and Property, plant, and equipment, net while the non-service cost components are included in Other, net and Regulatory assets. For PHI and each of the Utility Registrants, which apply multi-employer accounting, the service cost and non-service cost components are included in Operating and maintenance expense and Property, plant, and equipment, net in their consolidated financial statements. 68 Table of Contents Combined Notes to Consolidated Financial Statements — (Continued) (Dollars in millions, except per share data, unless otherwise noted) Note 7 — Retirement Benefits Three Months Ended March 31, Pension and OPEB Costs 2025 2024 Exelon $ 68 $ 61 ComEd 21 17 PECO 2 — BGE 16 15 PHI 25 23 Pepco 8 9 DPL 4 4 ACE 3 3 Defined Contribution Savings Plan The Registrants participate in a 401(k) defined contribution savings plan that is sponsored by Exelon. The plan is qualified under applicable sections of the IRC and allows employees to contribute a portion of their pre-tax and/or after-tax income in accordance with specified guidelines. All Registrants match a percentage of the employee contributions up to certain limits. The following table presents the employer contributions and employer matching contributions to the savings plan for the three months ended March 31, 2025 and 2024. Three Months Ended March 31, Savings Plan Employer Contributions 2025 2024 Exelon $ 26 $ 22 ComEd 10 10 PECO 4 3 BGE 3 3 PHI 5 2 Pepco 1 1 DPL 1 1 ACE 1 — 8. Derivative Financial Instruments (All Registrants) The Registrants use derivative instruments to manage commodity price risk and interest rate risk related to ongoing business operations. The Registrants do not execute derivatives for speculative or proprietary trading purposes. Authoritative guidance requires that derivative instruments be recognized as either assets or liabilities at fair value, with changes in fair value of the derivative recognized in earnings immediately. Other accounting treatments are available through special election and designation, provided they meet specific, restrictive criteria both at the time of designation and on an ongoing basis. These alternative permissible accounting treatments include NPNS, cash flow hedges, and fair value hedges. At ComEd, derivative economic hedges related to commodities are recorded at fair value and offset by a corresponding regulatory asset or liability. For all NPNS derivative instruments, accounts receivable or accounts payable are recorded when derivatives settle and revenue or expense is recognized in earnings as the underlying physical commodity is sold or consumed. At Exelon, derivative hedges that qualify and are designated as cash flow hedges are recorded at fair value and offsets are recorded to AOCI. Commodity Price Risk The Utility Registrants employ established policies and procedures to manage their risks associated with market fluctuations in commodity prices by entering into physical and financial derivative contracts, which are either determined to be non-derivative or classified as economic hedges. The Utility Registrants procure electric and natural gas supply through a competitive procurement process approved by each of the respective state utility commissions. The Utility Registrants’ hedging programs are intended to reduce exposure to energy and natural gas price volatility and have no direct earnings impact as the costs are fully recovered from customers through 69 Table of Contents Combined Notes to Consolidated Financial Statements — (Continued) (Dollars in millions, except per share data, unless otherwise noted) Note 8 — Derivative Financial Instruments regulatory-approved recovery mechanisms. The following table provides a summary of the Utility Registrants’ primary derivative hedging instruments, listed by commodity and accounting treatment. Registrant Commodity Accounting Treatment Hedging Instrument ComEd Electricity NPNS Fixed price contracts based on all requirements in the IPA procurement plans. Electricity Changes in fair value of economic hedge recorded to an offsetting regulatory asset or liability (a) 20-year floating-to-fixed energy swap contracts beginning June 2012 based on the renewable energy resource procurement requirements in the Illinois Settlement Legislation of approximately 1.3 million MWhs per year. PECO Electricity NPNS Fixed price contracts for default supply requirements through full requirements contracts. Gas NPNS Fixed price contracts to cover about 10 % of planned natural gas purchases in support of projected firm sales. BGE Electricity NPNS Fixed price contracts for all SOS requirements through full requirements contracts. Gas NPNS Fixed price purchases associated with forecasted gas supply requirements. Pepco Electricity NPNS Fixed price contracts for all SOS requirements through full requirements contracts. DPL Electricity NPNS Fixed price contracts for all SOS requirements through full requirements contracts. Gas NPNS Fixed and index priced contracts through full requirements contracts. Gas Changes in fair value of economic hedge recorded to an offsetting regulatory asset or liability (b) Exchange traded future contracts for up to 50 % of estimated monthly purchase requirements each month, including purchases for storage injections. ACE Electricity NPNS Fixed price contracts for all BGS requirements through full requirements contracts. __________ (a) See Note 3 — Regulatory Matters of the 2024 Form 10-K for additional information. (b) The fair value of the DPL economic hedge is not material at March 31, 2025 and December 31, 2024. The fair value of derivative economic hedges is presented in Other current assets and current and noncurrent Mark-to-market derivative liabilities in Exelon's and ComEd's Consolidated Balance Sheets. Interest Rate Risk (Exelon) Exelon Corporate uses a combination of fixed-rate and variable-rate debt to manage interest rate exposure. Exelon Corporate may utilize interest rate derivatives to lock in rate levels in anticipation of future financings, which are typically designated as cash flow hedges. A hypothetical 50 basis point change in the interest rates associated with Exelon's interest rate swaps as of March 31, 2025 would result in an immaterial impact to Exelon's Consolidated Net Income. 70 Table of Contents Combined Notes to Consolidated Financial Statements — (Continued) (Dollars in millions, except per share data, unless otherwise noted) Note 8 — Derivative Financial Instruments Below is a summary of the interest rate hedge balances at March 31, 2025 and December 31, 2024 . Derivatives Designated as Hedging Instruments March 31, 2025 December 31, 2024 Other current assets $ — $ 14 Other deferred debits (noncurrent assets) 4 12 Total derivative assets 4 26 Mark-to-market derivative liabilities (current liabilities) — ( 1 ) Mark-to-market derivative liabilities (noncurrent liabilities) ( 4 ) — Total mark-to-market derivative liabilities ( 4 ) ( 1 ) Total mark-to-market derivative net assets $ — $ 25 Cash Flow Hedges (Interest Rate Risk) For derivative instruments that qualify and are designated as cash flow hedges, the changes in fair value each period are initially recorded in AOCI and reclassified into earnings when the underlying transaction affects earnings. In February 2025, Exelon terminated the previously issued floating-to-fixed swaps with a total notional of $ 765 million upon issuance of $ 1 billion of debt. See Note 9 – Debt and Credit Agreements for additional information on the debt issuance. The settlements resulted in a cash receipt of $ 16 million. The accumulated AOCI gain of $ 13 million (net of tax) is being amortized into Interest expense in Exelon's Consolidated Statement of Operations and Comprehensive Income over the 5-year and 10-year terms of the swaps. The following table provides the notional amounts outstanding held by Exelon at March 31, 2025 and December 31, 2024. March 31, 2025 December 31, 2024 5-year maturity floating-to-fixed swaps $ 275 $ 657 10-year maturity floating-to-fixed swaps 275 658 Total $ 550 $ 1,315 The related AOCI derivative loss for the three months ended March 31, 2025 was $ 9 million (net of tax). The related AOCI derivative gain for the three months ended March 31, 2024 was immaterial. See Note 13 – Changes in Accumulated Other Comprehensive Income (Loss) for additional information. Credit Risk The Registrants would be exposed to credit-related losses in the event of non-performance by counterparties on executed derivative instruments. The credit exposure of derivative contracts, before collateral, is represented by the fair value of contracts at the reporting date. The Utility Registrants have contracts to procure electric and natural gas supply that provide suppliers with a certain amount of unsecured credit. If the exposure on the supply contract exceeds the amount of unsecured credit, the suppliers may be required to post collateral. The net credit exposure is mitigated primarily by the ability to recover procurement costs through customer rates. The amount of cash collateral received from external counterparties remained relatively consistent as of March 31, 2025. Cash collateral held by ComEd, PECO, BGE, Pepco, DPL, and ACE must be deposited in an unaffiliated major U.S. commercial bank or foreign bank with a U.S. branch office that meets certain qualifications. The following table reflects the Registrants' cash collateral held from external counterparties, which is recorded in Other current liabilities on their respective Consolidated Balance Sheets, as of March 31, 2025 and December 31, 2024: 71 Table of Contents Combined Notes to Consolidated Financial Statements — (Continued) (Dollars in millions, except per share data, unless otherwise noted) Note 8 — Derivative Financial Instruments March 31, 2025 December 31, 2024 Exelon $ 225 $ 181 ComEd 181 176 PECO (a) 12 — BGE 1 1 PHI 31 4 Pepco 11 1 DPL 11 2 ACE (a) 6 — __________ (a) PECO and ACE had less than one million in cash collateral held from external parties at December 31, 2024. The Utility Registrants’ electric supply procurement contracts do not contain provisions that would require them to post collateral. PECO’s, BGE’s, and DPL’s natural gas procurement contracts contain provisions that could require PECO, BGE, and DPL to post collateral in the form of cash or credit support, which vary by contract and counterparty. As of March 31, 2025, PECO, BGE, and DPL were not required to post collateral for any of these agreements. If PECO, BGE, or DPL lost their investment grade credit rating as of March 31, 2025, they could have been required to post collateral to their counterparties of $ 45 million, $ 51 million, and $ 15 million, respectively. 9. Debt and Credit Agreements (All Registrants) Short-Term Borrowings Exelon Corporate, ComEd, and BGE meet their short-term liquidity requirements primarily through the issuance of commercial paper. PECO meets its short-term liquidity requirements primarily through the issuance of commercial paper and borrowings from the Exelon intercompany money pool. Pepco, DPL, and ACE meet their short-term liquidity requirements primarily through the issuance of commercial paper and borrowings from the PHI intercompany money pool. PHI Corporate meets its short-term liquidity requirements primarily through the issuance of short-term notes and borrowings from the Exelon intercompany money pool. The Registrants may use their respective credit facilities for general corporate purposes, including meeting short-term funding requirements and the issuance of letters of credit. Commercial Paper The following table reflects the Registrants' commercial paper programs supported by the revolving credit agreements at March 31, 2025 and December 31, 2024. Outstanding Commercial Paper at Average Interest Rate on Commercial Paper Borrowings at Commercial Paper Issuer March 31, 2025 December 31, 2024 March 31, 2025 December 31, 2024 Exelon (a) $ 584 $ 1,359 4.62 % 4.66 % ComEd $ 347 $ 36 4.61 % 4.55 % PECO $ — $ 192 — % 4.65 % BGE $ 237 $ 175 4.63 % 4.61 % PHI (b) $ — $ 530 — % 4.70 % Pepco $ — $ 200 — % 4.69 % DPL $ — $ 144 — % 4.74 % ACE $ — $ 186 — % 4.67 % __________ (a) Exelon Corporate had no outstanding commercial paper borrowings at March 31, 2025 and $ 426 million in outstanding commercial paper borrowings at December 31, 2024. (b) Represents the consolidated amounts of Pepco, DPL, and ACE. 72 Table of Contents Combined Notes to Consolidated Financial Statements — (Continued) (Dollars in millions, except per share data, unless otherwise noted) Note 9 — Debt and Credit Agreements Revolving Credit Agreements On August 29, 2024, Exelon Corporate and each of the Utility Registrants amended and restated their respective syndicated revolving credit facility, extending the maturity date to August 29, 2029. The following table reflects the credit agreements: Borrower Aggregate Bank Commitment Interest Rate Exelon Corporate $ 900 SOFR plus 1.075 % ComEd $ 1,000 SOFR plus 1.000 % PECO $ 600 SOFR plus 0.900 % BGE $ 600 SOFR plus 0.900 % Pepco $ 300 SOFR plus 1.000 % DPL $ 300 SOFR plus 1.000 % ACE $ 300 SOFR plus 1.000 % Exelon Corporate and the Utility Registrants had no outstanding amounts on the revolving credit facilities as of March 31, 2025. The Utility Registrants have credit facility agreements, arranged at community banks, which may be utilized to issue letters of credit. The facility agreements have aggregate commitments of $ 40 million, $ 40 million, $ 15 million, $ 15 million, $ 15 million, and $ 15 million, at ComEd, PECO, BGE, Pepco, DPL, and ACE, respectively. These facilities expire on October 3, 2025. See Note 16 — Debt and Credit Agreements of the 2024 Form 10-K for additional information on the Registrants' credit facilities. Short-Term Loan Agreements On March 14, 2024, Exelon Corporate amended and bifurcated the $ 500 million term loan agreement into two tranches of $ 350 million and $ 150 million. The loan agreements were renewed in the first quarter of 2025, extending the expiration date to March 13, 2026. Pursuant to the loan agreements, loans made thereunder bear interest at a variable rate equal to SOFR plus 1.00 % and all indebtedness thereunder is unsecured. The loan agreements are reflected in Exelon's Consolidated Balance Sheets within Short-term borrowings. 73 Table of Contents Combined Notes to Consolidated Financial Statements — (Continued) (Dollars in millions, except per share data, unless otherwise noted) Note 9 — Debt and Credit Agreements Long-Term Debt Issuance of Long-Term Debt During the three months ended March 31, 2025, the following long-term debt was issued: Company Type Interest Rate Maturity Amount Use of Proceeds Exelon Junior Subordinated Notes (a) 6.50 % March 15, 2055 $ 1,000 Repay outstanding commercial paper obligations, and for general corporate purposes. Exelon Notes 5.125 % March 15, 2031 $ 500 Repay outstanding commercial paper obligations, and for general corporate purposes. Exelon Notes 5.875 % March 15, 2055 $ 500 Repay outstanding commercial paper obligations, and for general corporate purposes. Pepco (b) First Mortgage Bonds 5.48 % March 26, 2040 $ 200 Repay existing indebtedness and for general corporate purposes. DPL First Mortgage Bonds 5.28 % March 26, 2035 $ 125 Repay existing indebtedness and for general corporate purposes. ACE (c) First Mortgage Bonds 5.28 % March 26, 2035 $ 100 Repay existing indebtedness and for general corporate purposes. __________ (a) The Junior Subordinated Notes bear interest at 6.50 % per annum, commencing February 19, 2025 to, but excluding March 15, 2035. Thereafter, the interest rate resets every five years on March 15 and will be set at a rate per annum equal to the Five-year U.S. Treasury Rate plus a spread of 1.975 %. (b) On March 26, 2025, Pepco entered into a purchase agreement of First Mortgage Bonds of $ 75 million at 5.78 % due on September 17, 2055. The closing date of the issuance is expected to occur in September 2025. (c) On March 26, 2025, ACE entered into a purchase agreement of First Mortgage Bonds of $ 75 million and $ 75 million at 5.54 % and 5.81 % due on November 19, 2040 and November 19, 2055, respectively. The closing date of the issuance is expected to occur in November 2025. Debt Covenants As of March 31, 2025, the Registrants are in compliance with debt covenants. 10. Fair Value of Financial Assets and Liabilities (All Registrants) Exelon measures and classifies fair value measurements in accordance with the hierarchy as defined by GAAP. The hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three levels as follows: • Level 1 — quoted prices (unadjusted) in active markets for identical assets or liabilities that the Registrants have the ability to liquidate as of the reporting date. • Level 2 — inputs other than quoted prices included within Level 1 that are directly observable for the asset or liability or indirectly observable through corroboration with observable market data. • Level 3 — unobservable inputs, such as internally developed pricing models or third-party valuations for the asset or liability due to little or no market activity for the asset or liability. Exelon’s valuation techniques used to measure the fair value of the assets and liabilities shown in the tables below are in accordance with the policies discussed in Note 17 — Fair Value of Financial Assets and Liabilities of the 2024 Form 10-K. Fair Value of Financial Liabilities Recorded at Amortized Cost The following tables present the carrying amounts and fair values of the Registrants’ short-term liabilities, long-term debt, and trust preferred securities (long-term debt to financing trusts or junior subordinated debentures) as of March 31, 2025 and December 31, 2024. The Registrants have no financial liabilities measured using the NAV practical expedient. The carrying amounts of the Registrants’ short-term liabilities as presented in their Consolidated Balance Sheets are representative of their fair value (Level 2) because of the short-term nature of these instruments. March 31, 2025 December 31, 2024 Carrying Amount Fair Value Carrying Amount Fair Value Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Long-Term Debt, including amounts due within one year (a) Exelon $ 46,796 $ — $ 37,601 $ 4,159 $ 41,760 $ 44,400 $ — $ 35,337 $ 3,720 $ 39,057 ComEd 12,031 — 10,330 — 10,330 12,030 — 10,260 — 10,260 PECO 5,704 — 4,827 — 4,827 5,704 — 4,816 — 4,816 BGE 5,396 — 4,726 — 4,726 5,395 — 4,702 — 4,702 PHI 9,541 — 4,145 4,159 8,304 9,124 — 4,093 3,720 7,813 Pepco 4,559 — 2,499 1,750 4,249 4,362 — 2,475 1,544 4,019 DPL 2,346 — 641 1,378 2,019 2,220 — 623 1,250 1,873 ACE 2,033 — 793 1,031 1,824 1,933 — 787 925 1,712 Long-Term Debt to Financing Trusts Exelon $ 390 $ — $ — $ 393 $ 393 $ 390 $ — $ — $ 396 $ 396 ComEd 206 — — 206 206 206 — — 208 208 PECO 184 — — 187 187 184 — — 188 188 __________ (a) Includes unamortized debt issuance costs, unamortized debt discount and premium, net, purchase accounting fair value adjustments, and finance lease liabilities which are not fair valued. Refer to Note 16 — Debt and Credit Agreements of the 2024 Form 10-K for unamortized debt issuance costs, unamortized debt discount and premium, net, and purchase accounting fair value adjustments and Note 10 — Leases of the 2024 Form 10-K for finance lease liabilities. Recurring Fair Value Measurements The following tables present assets and liabilities measured and recorded at fair value in the Registrants' Consolidated Balance Sheets on a recurring basis and their level within the fair value hierarchy at March 31, 2025 and December 31, 2024. Exelon and the Utility Registrants have immaterial and no financial assets or liabilities measured using the NAV practical expedient, respectively: Exelon At March 31, 2025 At December 31, 2024 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets Cash equivalents (a) $ 1,190 $ — $ — $ 1,190 $ 544 $ — $ — $ 544 Rabbi trust investments Cash equivalents 95 — — 95 94 — — 94 Mutual funds 63 — — 63 65 — — 65 Fixed income — 6 — 6 — 6 — 6 Life insurance contracts — 72 22 94 — 73 22 95 Rabbi trust investments subtotal 158 78 22 258 159 79 22 260 Interest rate derivative assets Derivatives designated as hedging instruments — 4 — 4 — 26 — 26 Economic hedges — — — — — — — — Interest rate derivative assets subtotal — 4 — 4 — 26 — 26 Total assets 1,348 82 22 1,452 703 105 22 830 Liabilities Commodity derivative liabilities — — ( 151 ) ( 151 ) — — ( 132 ) ( 132 ) Interest rate derivative liabilities Derivatives designated as hedging instruments — ( 4 ) — ( 4 ) — ( 1 ) — ( 1 ) Economic hedges — — — — — — — — Interest rate derivative liabilities subtotal — ( 4 ) — ( 4 ) — ( 1 ) — ( 1 ) Deferred compensation obligation — ( 69 ) — ( 69 ) — ( 74 ) — ( 74 ) Total liabilities — ( 73 ) ( 151 ) ( 224 ) — ( 75 ) ( 132 ) ( 207 ) Total net assets (liabilities) $ 1,348 $ 9 $ ( 129 ) $ 1,228 $ 703 $ 30 $ ( 110 ) $ 623 __________ (a) Exelon excludes cash of $ 210 million and $ 219 million at March 31, 2025 and December 31, 2024, respectively, and restricted cash of $ 182 million and $ 176 million at March 31, 2025 and December 31, 2024, respectively, and includes long-term restricted cash of zero and $ 41 million at March 31, 2025 and December 31, 2024, respectively, which is reported in Other deferred debits and other assets in the Consolidated Balance Sheets. ComEd, PECO, and BGE ComEd PECO BGE At March 31, 2025 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets Cash equivalents (a) $ 345 $ — $ — $ 345 $ 2 $ — $ — $ 2 $ 3 $ — $ — $ 3 Rabbi trust investments Mutual funds — — — — 11 — — 11 10 — — 10 Life insurance contracts — — — — — 21 — 21 — — — — Rabbi trust investments subtotal — — — — 11 21 — 32 10 — — 10 Total assets 345 — — 345 13 21 — 34 13 — — 13 Liabilities Commodity derivative liabilities (b) — — ( 151 ) ( 151 ) — — — — — — — — Deferred compensation obligation — ( 8 ) — ( 8 ) — ( 7 ) — ( 7 ) — ( 4 ) — ( 4 ) Total liabilities — ( 8 ) ( 151 ) ( 159 ) — ( 7 ) — ( 7 ) — ( 4 ) — ( 4 ) Total net assets (liabilities) $ 345 $ ( 8 ) $ ( 151 ) $ 186 $ 13 $ 14 $ — $ 27 $ 13 $ ( 4 ) $ — $ 9 ComEd PECO BGE At December 31, 2024 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets Cash equivalents (a) $ 390 $ — $ — $ 390 $ 29 $ — $ — $ 29 $ 1 $ — $ — $ 1 Rabbi trust investments Mutual funds — — — — 12 — — 12 10 — — 10 Life insurance contracts — — — — — 22 — 22 — — — — Rabbi trust investments subtotal — — — — 12 22 — 34 10 — — 10 Total assets 390 — — 390 41 22 — 63 11 — — 11 Liabilities Commodity derivative liabilities (b) — — ( 132 ) ( 132 ) — — — — — — — — Deferred compensation obligation — ( 8 ) — ( 8 ) — ( 7 ) — ( 7 ) — ( 4 ) — ( 4 ) Total liabilities — ( 8 ) ( 132 ) ( 140 ) — ( 7 ) — ( 7 ) — ( 4 ) — ( 4 ) Total net assets (liabilities) $ 390 $ ( 8 ) $ ( 132 ) $ 250 $ 41 $ 15 $ — $ 56 $ 11 $ ( 4 ) $ — $ 7 __________ (a) ComEd excludes cash of $ 71 million and $ 66 million at March 31, 2025 and December 31, 2024, respectively, and restricted cash of $ 181 million and $ 176 million at March 31, 2025 and December 31, 2024, respectively. Additionally, ComEd includes long-term restricted cash of zero and $ 41 million at March 31, 2025 and December 31, 2024, respectively, which is reported in Other deferred debits and other assets in the Consolidated Balance Sheets. PECO excludes cash of $ 52 million and $ 19 million at March 31, 2025 and December 31, 2024, respectively. BGE excludes cash of $ 14 million and $ 33 million at March 31, 2025 and December 31, 2024, respectively. (b) The Level 3 balance consists of the current and noncurrent liability of $ 25 million and $ 126 million, respectively, at March 31, 2025 and $ 29 million and $ 103 million, respectively, at December 31, 2024 related to floating-to-fixed energy swap contracts with unaffiliated suppliers. PHI, Pepco, DPL, and ACE At March 31, 2025 At December 31, 2024 PHI Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets Cash equivalents (a) $ 118 $ — $ — $ 118 $ 93 $ — $ — $ 93 Rabbi trust investments Cash equivalents 93 — — 93 92 — — 92 Mutual funds 9 — — 9 9 — — 9 Fixed income — 6 — 6 — 6 — 6 Life insurance contracts — 23 21 44 — 23 21 44 Rabbi trust investments subtotal 102 29 21 152 101 29 21 151 Total assets 220 29 21 270 194 29 21 244 Liabilities Deferred compensation obligation — ( 10 ) — ( 10 ) — ( 12 ) — ( 12 ) Total liabilities — ( 10 ) — ( 10 ) — ( 12 ) — ( 12 ) Total net assets $ 220 $ 19 $ 21 $ 260 $ 194 $ 17 $ 21 $ 232 Pepco DPL ACE At March 31, 2025 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets Cash equivalents (a) $ 69 $ — $ — $ 69 $ 49 $ — $ — $ 49 $ — $ — $ — $ — Rabbi trust investments Cash equivalents 92 — — 92 — — — — — — — — Life insurance contracts — 23 21 44 — — — — — — — — Rabbi trust investments subtotal 92 23 21 136 — — — — — — — — Total assets 161 23 21 205 49 — — 49 — — — — Liabilities Deferred compensation obligation — ( 1 ) — ( 1 ) — — — — — — — — Total liabilities — ( 1 ) — ( 1 ) — — — — — — — — Total net assets $ 161 $ 22 $ 21 $ 204 $ 49 $ — $ — $ 49 $ — $ — $ — $ — Pepco DPL ACE At December 31, 2024 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets Cash equivalents (a) $ 21 $ — $ — $ 21 $ 3 $ — $ — $ 3 $ — $ — $ — $ — Rabbi trust investments Cash equivalents 91 — — 91 — — — — — — — — Life insurance contracts — 23 21 44 — — — — — — — — Rabbi trust investments subtotal 91 23 21 135 — — — — — — — — Total assets 112 23 21 156 3 — — 3 — — — — Liabilities Deferred compensation obligation — ( 1 ) — ( 1 ) — — — — — — — — Total liabilities — ( 1 ) — ( 1 ) — — — — — — — — Total net assets $ 112 $ 22 $ 21 $ 155 $ 3 $ — $ — $ 3 $ — $ — $ — $ — __________ (a) PHI excludes cash of $ 51 million and $ 70 million at March 31, 2025 and December 31, 2024, respectively, and restricted cash of $ 1 million and zero at March 31, 2025 and December 31, 2024. Pepco excludes cash of $ 20 million and $ 30 million at March 31, 2025 and December 31, 2024, respectively. DPL excludes cash of $ 12 million and $ 20 million at March 31, 2025 and December 31, 2024, respectively. ACE excludes cash of $ 19 million and $ 14 million at March 31, 2025 and December 31, 2024, respectively and restricted cash of $ 1 million and zero at March 31, 2025 and December 31, 2024, respectively Reconciliation of Level 3 Assets and Liabilities The following tables present the fair value reconciliation of Level 3 assets and liabilities measured at fair value on a recurring basis during the three months ended March 31, 2025 and 2024: Exelon ComEd PHI and Pepco Three Months Ended March 31, 2025 Total Commodity Derivatives Life Insurance Contracts Balance at December 31, 2024 $ ( 110 ) $ ( 132 ) $ 21 Total realized / unrealized gains (losses) Included in net income (a) — — — Included in regulatory assets/liabilities ( 19 ) ( 19 ) (b) — Purchases, sales, and settlements Balance at March 31, 2025 $ ( 129 ) $ ( 151 ) (c) $ 21 The amount of total gains included in income attributed to the change in unrealized gains related to assets and liabilities at March 31, 2025 $ — $ — $ — Exelon ComEd PHI and Pepco Three Months Ended March 31, 2024 Total Commodity Derivatives Life Insurance Contracts Balance at December 31, 2023 $ ( 90 ) $ ( 133 ) $ 41 Total realized / unrealized gains (losses) Included in net income (a) — — — Included in regulatory assets/liabilities 25 25 (b) — Balance at March 31, 2024 $ ( 65 ) $ ( 108 ) $ 41 The amount of total gains included in income attributed to the change in unrealized gains related to assets and liabilities at March 31, 2024 $ — $ — $ — (a) Classified in Operating and maintenance expense in the Consolidated Statements of Operations and Comprehensive Income. (b) Includes $ 30 million of decreases in fair value and an increase for realized gains due to settlements of $ 11 million recorded in Purchased power expense associated with floating-to-fixed energy swap contracts with unaffiliated suppliers for the three months ended March 31, 2025. Includes $ 13 million of increases in fair value and an increase for realized gains due to settlements of $ 12 million recorded in Purchased power expense associated with floating-to-fixed energy swap contracts with unaffiliated suppliers for the three months ended March 31, 2024. (c) The balance of the current and noncurrent asset was effectively zero as of March 31, 2025. The balance consists of a current and noncurrent liability of $ 25 million and $ 126 million, respectively, as of March 31, 2025. Commodity Derivatives (Exelon and ComEd) The table below discloses the significant unobservable inputs to the forward curve used to value mark-to-market derivatives. Type of trade Fair Value at March 31, 2025 Fair Value at December 31, 2024 Valuation Technique Unobservable Input 2025 Range & Arithmetic Average 2024 Range & Arithmetic Average Commodity derivatives $ ( 151 ) $ ( 132 ) Discounted Cash Flow Forward power price (a) $ 28.45 - $ 62.87 $ 38.62 $ 30.31 - $ 59.88 $ 42.08 ________ (a) An increase to the forward power price would increase the fair value. 74 Table of Contents Combined Notes to Consolidated Financial Statements — (Continued) (Dollars in millions, except per share data, unless otherwise noted) Note 11 — Commitments and Contingencies 11. Commitments and Contingencies (All Registrants) The following is an update to the current status of commitments and contingencies set forth in Note 18 — Commitments and Contingencies of the 2024 Form 10-K. Commitments PHI Merger Commitments (Exelon, PHI, Pepco, DPL, and ACE). Approval of the PHI Merger in Delaware, New Jersey, Maryland, and the District of Columbia was conditioned upon Exelon and PHI agreeing to certain commitments. The following amounts represent total commitment costs that have been recorded since the acquisition date and the total remaining obligations for Exelon, PHI, Pepco, DPL, and ACE at March 31, 2025: Description Exelon PHI Pepco DPL ACE Total commitments $ 513 $ 320 $ 120 $ 89 $ 111 Remaining commitments (a) 26 23 22 1 — __________ (a) Remaining commitments extend through 2026 and include escrow funds, charitable contributions, and rate credits. 75 Table of Contents Combined Notes to Consolidated Financial Statements — (Continued) (Dollars in millions, except per share data, unless otherwise noted) Note 11 — Commitments and Contingencies Commercial Commitments (All Registrants). The Registrants’ commercial commitments at March 31, 2025, representing commitments potentially triggered by future events were as follows: Expiration within Total 2025 2026 2027 2028 2029 2030 and beyond Exelon Letters of credit (a) $ 55 $ 47 $ 8 $ — $ — $ — $ — Surety bonds (b) 275 182 13 2 78 — — Financing trust guarantees (c) 378 — — — 78 — 300 Guaranteed lease residual values (d) 24 — 3 4 6 4 7 Total commercial commitments $ 732 $ 229 $ 24 $ 6 $ 162 $ 4 $ 307 ComEd Letters of credit (a) $ 18 $ 15 $ 3 $ — $ — $ — $ — Surety bonds (b) 37 32 3 2 — — — Financing trust guarantees (c) 200 — — — — — 200 Total commercial commitments $ 255 $ 47 $ 6 $ 2 $ — $ — $ 200 PECO Letters of credit (a) $ 4 $ 1 $ 3 $ — $ — $ — $ — Surety bonds (b) 3 2 1 — — — — Financing trust guarantees (c) 178 — — — 78 — 100 Total commercial commitments $ 185 $ 3 $ 4 $ — $ 78 $ — $ 100 BGE Letters of credit (a) $ 27 $ 27 $ — $ — $ — $ — $ — Surety bonds (b) 3 2 1 — — — — Total commercial commitments $ 30 $ 29 $ 1 $ — $ — $ — $ — PHI Letters of credit (a) $ 3 $ 3 $ — $ — $ — $ — $ — Surety bonds (b) 173 91 4 — 78 — — Guaranteed lease residual values (d) 24 — 3 4 6 4 7 Total commercial commitments $ 200 $ 94 $ 7 $ 4 $ 84 $ 4 $ 7 Pepco Letters of credit (a) $ 2 $ 2 $ — $ — $ — $ — $ — Surety bonds (b) 162 84 — — 78 — — Guaranteed lease residual values (d) 8 — 1 1 2 1 3 Total commercial commitments $ 172 $ 86 $ 1 $ 1 $ 80 $ 1 $ 3 DPL Letters of credit (a) $ 1 $ 1 $ — $ — $ — $ — $ — Surety bonds (b) 6 3 3 — — — — Guaranteed lease residual values (d) 9 — 1 2 2 2 2 Total commercial commitments $ 16 $ 4 $ 4 $ 2 $ 2 $ 2 $ 2 ACE Surety bonds (b) $ 5 $ 4 $ 1 $ — $ — $ — $ — Guaranteed lease residual values (d) 7 — 1 1 2 1 2 Total commercial commitments $ 12 $ 4 $ 2 $ 1 $ 2 $ 1 $ 2 76 Table of Contents Combined Notes to Consolidated Financial Statements — (Continued) (Dollars in millions, except per share data, unless otherwise noted) Note 11 — Commitments and Contingencies __________ (a) Exelon and certain of its subsidiaries maintain non-debt letters of credit to provide credit support for certain transactions as requested by third parties. (b) Surety bonds—Guarantees issued related to contract and commercial agreements, excluding bid bonds. Historically, payments under the guarantees have not been made and the likelihood of payments being required is remote. (c) Reflects guarantee of ComEd and PECO securities held by ComEd Financing III, PECO Trust III, and PECO Trust IV. (d) Represents the maximum potential obligation in the event the fair value of certain leased equipment and fleet vehicles is zero at the end of the maximum lease term. The lease term associated with these assets ranges from 1 to 9 years. The maximum potential obligation at the end of the minimum lease term would be $ 55 million guaranteed by Exelon and PHI, of which $ 18 million, $ 21 million, and $ 16 million is guaranteed by Pepco, DPL, and ACE, respectively. Historically, payments under the guarantees have not been made and PHI believes the likelihood of payments being required under the guarantees is remote. Environmental Remediation Matters General (All Registrants). The Registrants’ operations have in the past, and may in the future, require substantial expenditures to comply with environmental laws. Additionally, under federal and state environmental laws, the Registrants are generally liable for the costs of remediating environmental contamination of property now or formerly owned by them and of property contaminated by hazardous substances generated by them. The Registrants own or lease a number of real estate parcels, including parcels on which their operations or the operations of others may have resulted in contamination by substances that are considered hazardous under environmental laws. In addition, the Registrants are currently involved in a number of proceedings relating to sites where hazardous substances have been deposited and may be subject to additional proceedings in the future. Unless otherwise disclosed, the Registrants cannot reasonably estimate whether they will incur significant liabilities for additional investigation and remediation costs at these or additional sites identified by the Registrants, environmental agencies, or others, or whether such costs will be recoverable from third parties, including customers. Additional costs could have a material, unfavorable impact on the Registrants' financial statements. MGP Sites (All Registrants). ComEd, PECO, BGE, and DPL have identified sites where former MGP or gas purification activities have or may have resulted in actual site contamination. For some sites, there are additional PRPs that may share responsibility for the ultimate remediation of each location. • ComEd has 16 sites currently under some degree of active study and/or remediation. ComEd expects the majority of the remediation at these sites to continue through at least 2031. • PECO has 6 sites currently under some degree of active study and/or remediation. PECO expects the majority of the remediation at these sites to continue through at least 2028. • BGE has 4 sites currently requiring some level of remediation and/or ongoing activity. BGE expects the majority of the remediation at these sites to continue through at least 2026. • DPL has 1 site currently under study and the required cost at the site is not expected to be material. The historical nature of the MGP and gas purification sites, and the fact that many of the sites have been buried and built over, impacts the ability to determine a precise estimate of the ultimate costs prior to initial sampling and determination of the exact scope and method of remedial activity. Management determines its best estimate of remediation costs using all available information at the time of each study, including probabilistic and deterministic modeling for ComEd and PECO, and the remediation standards currently required by the applicable state environmental agency. Prior to performing any significant clean up, each site remediation plan is approved by the appropriate state environmental agency. ComEd, pursuant to an ICC order, and PECO, pursuant to a PAPUC order, are currently recovering environmental remediation costs of former MGP facility sites through customer rates. While BGE and DPL do not have riders for MGP clean-up costs, they have historically received recovery of actual clean-up costs in distribution rates. 77 Table of Contents Combined Notes to Consolidated Financial Statements — (Continued) (Dollars in millions, except per share data, unless otherwise noted) Note 11 — Commitments and Contingencies At March 31, 2025 and December 31, 2024, the Registrants had accrued the following undiscounted amounts for environmental liabilities in Accrued expenses, Other current liabilities, and Other deferred credits and other liabilities in their respective Consolidated Balance Sheets: March 31, 2025 December 31, 2024 Total Environmental Investigation and Remediation Liabilities Portion of Total Related to MGP Investigation and Remediation Total Environmental Investigation and Remediation Liabilities Portion of Total Related to MGP Investigation and Remediation Exelon $ 396 $ 319 $ 403 $ 322 ComEd 282 282 285 284 PECO 29 27 29 28 BGE 14 10 13 10 PHI 70 — 75 — Pepco 68 — 73 — DPL 1 — 1 — ACE 1 — 1 — Benning Road Site (Exelon, PHI, and Pepco) . In September 2010, PHI received a letter from the EPA identifying the Benning Road site as one of six land-based sites potentially contributing to contamination of the lower Anacostia River. A portion of the site, which is owned by Pepco, was formerly the location of an electric generating facility owned by Pepco subsidiary, Pepco Energy Services (PES), which became a part of Generation following the 2016 merger between PHI and Exelon. This generating facility was deactivated in June 2012. The remaining portion of the site consists of a Pepco transmission and distribution service center that remains in operation. In December 2011, the U.S. District Court for the District of Columbia approved a Consent Decree entered into by Pepco and Pepco Energy Services (hereinafter "Pepco Entities") with the DOEE, which requires the Pepco Entities to conduct a Remedial Investigation and Feasibility Study (RI/FS) for the Benning Road site and an approximately 10 to 15-acre portion of the adjacent Anacostia River. The purpose of this RI/FS is to define the nature and extent of contamination from the Benning Road site and to evaluate remedial alternatives. Pursuant to an internal agreement between the Pepco Entities, since 2013, Pepco has performed the work required by the Consent Decree and has been reimbursed for that work by an agreed upon allocation of costs between the Pepco Entities. In September 2019, the Pepco Entities issued a draft “final” RI report which the DOEE approved on February 3, 2020. In October 2022, the DOEE approved dividing the work to complete the landside portion of the FS from the waterside portion to expedite the overall schedule for completion of the project. The landside FS was approved by the DOEE on March 15th, 2024, and the waterside FS was approved by the DOEE on December 16, 2024. On October 3, 2023, the DOEE and Pepco entered into an addendum to the Benning Consent Decree pursuant to which Pepco has agreed to fund or perform the remedial actions to be selected by the DOEE for the landside and waterside areas. This addendum to the Benning Consent Decree was entered by the Court on February 27, 2024 and became effective on that date. Pepco drafted a proposed plan for the landside area, which was approved and issued by the DOEE for public comment on December 16, 2024. The landside area public comment period closed on April 18, 2025. Pepco will submit a matrix of proposed responses to the public comments and a proposed Record of Decision (ROD) to the DOEE for the landside area before August 18, 2025. Pepco also submitted a draft proposed plan to the DOEE for the waterside area on April 15, 2025. The DOEE will review Pepco’s draft and issue a final proposed plan for public comment. After the waterside area public comment period closes, Pepco will submit a matrix of proposed responses to the public comments and a proposed ROD to the DOEE for the waterside area. The DOEE will issue ROD(s) identifying the remedial actions determined to be necessary for the landside and waterside areas. As part of the separation between Exelon and Constellation in February 2022, the internal agreement between the Pepco Entities for completion and payment for the remaining Consent Decree work was memorialized in a formal agreement for post-separation activities. A second post-separation assumption agreement between Exelon and Constellation transferred any of the potential remaining remediation liability, if any, of PES/Generation to a non-utility subsidiary of Exelon which going forward will be responsible for those liabilities. Exelon, PHI, and Pepco have determined that a loss associated with this matter is probable and have accrued an estimated liability, which is included in the table above. 78 Table of Contents Combined Notes to Consolidated Financial Statements — (Continued) (Dollars in millions, except per share data, unless otherwise noted) Note 11 — Commitments and Contingencies Anacostia River Tidal Reach (Exelon, PHI, and Pepco) . Contemporaneous with the Benning Road site RI/FS being performed by the Pepco Entities, the DOEE and NPS have been conducting a separate RI/FS focused on the entire tidal reach of the Anacostia River extending from just north of the Maryland-District of Columbia boundary line to the confluence of the Anacostia and Potomac Rivers. The riverwide RI incorporated the results of the river sampling performed by the Pepco Entities as part of the Benning RI/FS, as well as similar sampling efforts conducted by owners of other sites adjacent to this segment of the river and supplemental river sampling conducted by the DOEE’s contractor. On September 30, 2020, the DOEE released its Interim ROD for the Anacostia River sediments. The Interim ROD reflects an adaptive management approach which will require several identified “hot spots” in the river to be addressed first while continuing to conduct studies and to monitor the river to evaluate improvements and determine potential future remediation plans. The adaptive management process chosen by the DOEE is less intrusive, provides more long-term environmental certainty, is less costly, and allows for site specific remediation plans already underway, including the plan for the Benning Road site to proceed to conclusion. On July 15, 2022, Pepco received a letter from the District of Columbia's Office of the Attorney General (D.C. OAG) on behalf of the DOEE conveying a settlement offer to resolve all PRPs' liability to the District of Columbia (District) for their past costs and their anticipated future costs to complete the work for the Interim ROD. Pepco responded on July 27, 2022 agreeing to enter into settlement discussions. On October 3, 2023, Pepco and the District entered into another consent decree (the “Anacostia River Consent Decree”) pursuant to which Pepco agreed to pay $ 47 million to resolve its liability to the District for all past costs to perform the riverwide RI/FS and all future costs to complete the work required by the Interim ROD. This amount was agreed to be paid in four equal annual installments beginning a year after the effective date of the Anacostia River Consent Decree. Pepco paid the first installment of $ 12 million on April 9, 2025. The funds were deposited into the DOEE’s Clean Land Fund for the District’s costs of the Interim ROD work. The Anacostia River Consent Decree caps Pepco’s liability for these costs and provides Pepco with the right to seek contributions from other PRPs. The Anacostia River Consent Decree was signed by the judge for the U.S. District Court for the District of Columbia and became effective on April 11, 2024. Exelon, PHI, and Pepco have accrued a liability for Pepco’s payment obligations under the Anacostia Consent Decree and management's best estimate of its share of any other future Anacostia River response costs. Pepco has concluded that incremental exposure remains reasonably possible, but management cannot reasonably estimate a range of loss beyond the amounts recorded, which are included in the table above. In addition to the activities associated with the remedial process outlined above, CERCLA separately requires federal and state (here including Washington, D.C.) Natural Resource Trustees (federal or state agencies designated by the President or the relevant state, respectively, or Indian tribes) to conduct an assessment of any damages to natural resources within their jurisdiction as a result of the contamination that is being remediated. The Trustees can seek compensation from responsible parties for such damages, including restoration costs. During the second quarter of 2018, Pepco became aware that the Trustees are in the beginning stages of a NRD assessment, a process that often takes many years beyond the remedial decision to complete. Pepco has concluded that a loss associated with the eventual NRD assessment is reasonably possible. Due to the early stage of the NRD process, Pepco cannot reasonably estimate the final range of loss potentially resulting from this process. Pepco has become aware, however, that the District is pursuing claims against other parties. Specifically, in January 2025, D.C. OAG filed a lawsuit against the United States seeking to declare the United States liable under CERCLA and the District of Columbia’s Brownfield Revitalization Act of 2000 and to recover the District’s response costs associated with its investigation and remediation of the river and for future NRDs. This lawsuit is in the early stages. Pepco is monitoring this lawsuit and considering its legal options. As noted in the Benning Road Site disclosure above, as part of the separation of Exelon and Constellation in February 2022, an assumption agreement was executed transferring any potential future remediation liabilities associated with the Benning Site remediation to a non-utility subsidiary of Exelon. Similarly, any potential future liability associated with the Anacostia River Sediment Project was also assumed by this entity. Buzzard Point Site (Exelon, PHI, and Pepco). On December 8, 2022, Pepco received a letter from the D.C. OAG, alleging wholly past violations of the District's stormwater discharge and waste disposal requirements related to operations at the Buzzard Point facility, a 9-acre parcel of waterfront property in Washington, D.C. occupied by an active substation and former steam plant building. The letter also alleged wholly past violations by Pepco of stormwater discharge requirements related to its district-wide system of underground vaults. On October 3, 2023, Pepco entered into a Consent Order with the District of Columbia to resolve the alleged 79 Table of Contents Combined Notes to Consolidated Financial Statements — (Continued) (Dollars in millions, except per share data, unless otherwise noted) Note 11 — Commitments and Contingencies violations without any admission of liability. The Consent Order requires Pepco to pay a civil penalty of $ 10 million. In addition, Pepco has agreed to assess the environmental conditions at its Buzzard Point facility and conduct any remedial actions deemed necessary as a result of the assessment, and also to assess potential environmental impacts associated with the operation of its underground vaults. The court signed and entered the Consent Order, and it became effective on February 2, 2024. Exelon, PHI, and Pepco have accrued a liability for the projected costs for the required environmental assessments and remediation. In January 2025, Pepco paid the last installment of the civil penalty. Pepco has concluded that incremental exposure remains reasonably possible, but management cannot reasonably estimate a range of loss beyond the amounts recorded, which are included in the table above. Litigation and Regulatory Matters DPA and Related Matters (Exelon and ComEd). Exelon and ComEd received a grand jury subpoena in the second quarter of 2019 from the U.S. Attorney’s Office for the Northern District of Illinois (USAO) requiring production of information concerning their lobbying activities in the State of Illinois. On October 4, 2019, Exelon and ComEd received a second grand jury subpoena from the USAO requiring production of records of any communications with certain individuals and entities. The Companies cooperated fully with the USAO and any government requests or inquiries. On July 17, 2020, ComEd entered into a DPA with the USAO to resolve the USAO investigation into its historical state legislative lobbying and related practices in Illinois. The agreement resolved the Department of Justice investigation into both ComEd and Exelon, which included a payment to the U.S. Treasury of $ 200 million, which was paid in November 2020. The three-year term of the DPA ended on July 17, 2023, and on that same date the court granted the USAO’s motion to dismiss the pending charge against ComEd that had been deferred by the DPA. Subsequent to Exelon announcing the receipt of the USAO subpoenas, various lawsuits were filed related to the subject of the subpoenas and the conduct described in the DPA. Several putative class actions were brought in federal and state court by ComEd customers. These actions were dismissed prior to discovery or trial and those dismissals were affirmed on appeal. In addition, subsequent to Exelon announcing the receipt of the USAO subpoenas, several shareholders sent letters to the Exelon Board of Directors demanding, among other things, that the Exelon Board of Directors investigate and address alleged breaches of fiduciary duties and other alleged violations by Exelon and ComEd officers and directors related to the conduct described in the DPA. In the first quarter of 2021, the Exelon Board of Directors appointed a Special Litigation Committee (SLC) consisting of disinterested and independent parties to investigate and address these shareholders’ allegations and make recommendations to the Exelon Board of Directors based on the outcome of the SLC’s investigation. In July 2021, one of the demand letter shareholders filed a derivative action against current and former Exelon and ComEd officers and directors, and against Exelon, as nominal defendant, asserting the same claims made in its demand letter. Since that date, multiple parties have filed separate derivative lawsuits that were subsequently consolidated. On October 12, 2021, the parties filed an agreed motion to stay the litigation for 120 days in order to allow the SLC to continue its investigation, which the court granted. The stay was extended several times. Through mediation efforts, a settlement of the derivative claims was reached by the SLC, the Independent Review Committee of the Board (which had been formed in the third quarter of 2022, to ensure the Board’s consideration of any SLC recommendations would be independent and objective), the Board, and certain of the derivative shareholders. On June 16, 2023, the SLC filed a motion for preliminary approval of the settlement, attaching the Stipulation and Agreement of Settlement (Stipulation), which contained the terms of the proposed settlement. The proposed settlement terms include but are not limited to: a payment of $ 40 million to Exelon by Exelon’s insurers of which $ 10 million constitutes the attorneys’ fee award to be paid to the Settling Shareholders’ counsel; various compliance and disclosure-related reforms; and certain changes in Board and Committee composition. The non-settling shareholders objected to the settlement and opposed preliminary approval. On September 20, 2024, the court denied without prejudice the SLC’s motion for preliminary approval. The court’s order provided that if the SLC can substantiate or otherwise revise the attorneys’ fees aspect of the settlement, then the SLC could renew its motion for preliminary approval by October 21, 2024. On October 21, 2024, the SLC filed its second renewed motion for preliminary approval, and the Settling Shareholders filed a brief in support of the SLC's second renewed motion for preliminary approval. On November 20, 2024, the non-settling plaintiffs filed an opposition to the renewed motion for preliminary approval. On December 18, 2024, the SLC and Settling Shareholders filed replies in support of the renewed motion for preliminary approval. 80 Table of Contents Combined Notes to Consolidated Financial Statements — (Continued) (Dollars in millions, except per share data, unless otherwise noted) Note 11 — Commitments and Contingencies Maryland Sales and Use Tax Refund Claim (Exelon, BGE, PHI, Pepco, and DPL). Maryland imposes a 6% sales and use tax on the purchase of most goods and services. BGE, Pepco, and DPL have filed or plan to file protective refund claims, totaling an estimated $ 100 million, treating electric transmission and distribution machinery and equipment as nontaxable pursuant to the manufacturing exemption available under the Maryland sales and use tax law. The Maryland Comptroller has initially denied the refund claim and litigation is pending. On November 22, 2024, the Appellate Court of Maryland, in a case involving a regulated electric utility operating in Maryland, ruled the purchase of certain transmission and distribution equipment qualify for the sales tax manufacturing exemption. On December 20, 2024, the Maryland Attorney General, on behalf of the Maryland Comptroller, filed a motion for reconsideration with the Appellate Court of Maryland of its ruling. The motion for reconsideration was denied on February 3, 2025. On February 18, 2025, the Maryland Attorney General, on behalf of the Maryland Comptroller, filed a petition with the Maryland Supreme Court requesting review of the Appellate Court of Maryland’s ruling. In the event transmission and distribution equipment is determined to be exempt, Exelon, BGE, PHI, Pepco, and DPL will record estimated receivables of $ 100 million, $ 65 million, $ 35 million, $ 25 million, and $ 10 million, respectively. The sales tax payments were primarily capitalized; therefore, the refund would be recorded as a reduction to property, plant, and equipment included in rate base. General (All Registrants). The Registrants are involved in various other litigation matters that are being defended and handled in the ordinary course of business. The Registrants are also from time to time subject to audits and investigations by the FERC and other regulators. The assessment of whether a loss is probable or reasonably possible, and whether the loss or a range of loss is estimable, often involves a series of complex judgments about future events. The Registrants maintain accruals for such losses that are probable of being incurred and subject to reasonable estimation. Management is sometimes unable to estimate an amount or range of reasonably possible loss, particularly where (1) the damages sought are indeterminate, (2) the proceedings are in the early stages, or (3) the matters involve novel or unsettled legal theories. In such cases, there is considerable uncertainty regarding the timing or ultimate resolution of such matters, including a possible eventual loss. 12. Shareholders' Equity (Exelon) At-the-Market Program On August 4, 2022, Exelon executed an equity distribution agreement (“Equity Distribution Agreement”), with certain sales agents and forward sellers and certain forward purchasers, establishing an ATM equity distribution program under which it may offer and sell shares of its Common stock, having an aggregate gross sales price of up to $ 1 billion. Exelon has no obligation to offer or sell any shares of Common stock under the Equity Distribution Agreement and may, at any time, suspend or terminate offers and sales under the Equity Distribution Agreement. During the first quarter 2025, Exelon issued approximately 4.0 million shares of Common stock at an average gross price of $ 43.42 per share. The net proceeds from the issuance were $ 173 million, which were used for general corporate purposes. In the first quarter of 2025, Exelon entered into two separate forward sale agreements for 1.7 million shares and 4.0 million shares of Common stock, with an initial forward price of $ 42.81 and $ 43.42 per share, respectively. The forward sale agreements require Exelon to, at its election prior to December 15, 2025, either (i) physically settle the transactions by issuing shares of its Common stock to the forward counterparties in exchange for net proceeds at the then-applicable forward sale price specified by the agreements or (ii) net settle the transactions in whole or in part through the delivery to the forward counterparties or receipt from the forward counterparties of cash or shares in accordance with the provisions of the agreements. No amounts have been or will be recorded on Exelon's balance sheet with respect to the equity offerings until the equity forward sale agreements have been settled. Each initial forward sale price is subject to adjustment on a daily basis based on a floating interest rate factor and will decrease by other fixed amounts specified in the agreements. Until settlement of the equity forward, earnings per share dilution resulting from the agreement, if any, will be determined under the treasury stock method. For the three months ended March 31, 2025, approximately 5.6 million shares under the forward sale agreements were not included in the calculation of diluted earnings per share because their effect would have been antidilutive. 81 Table of Contents Combined Notes to Consolidated Financial Statements — (Continued) (Dollars in millions, except per share data, unless otherwise noted) Note 12 — Shareholders' Equity Inclusive of the impact of the forward sale agreements, $ 283 million of Common stock remained available for sale pursuant to the ATM program as of March 31, 2025. 13. Changes in Accumulated Other Comprehensive Income (Loss) (Exelon) The following table presents changes in Exelon's AOCI, net of tax, by component: Three Months Ended March 31, 2025 Cash Flow Hedges Pension and Non-Pension Postretirement Benefit Plan Items (a) Total Balance at December 31, 2024 $ 45 $ ( 765 ) $ ( 720 ) OCI before reclassifications ( 6 ) 5 ( 1 ) Amounts reclassified from AOCI ( 2 ) 5 3 Net current-period OCI ( 8 ) 10 2 Balance at March 31, 2025 $ 37 $ ( 755 ) $ ( 718 ) Three Months Ended March 31, 2024 Cash Flow Hedges Pension and Non-Pension Postretirement Benefit Plan Items (a) Total Balance at December 31, 2023 $ ( 3 ) $ ( 723 ) $ ( 726 ) OCI before reclassifications 34 ( 24 ) 10 Amounts reclassified from AOCI ( 1 ) 5 4 Net current-period OCI 33 ( 19 ) 14 Balance at March 31, 2024 $ 30 $ ( 742 ) $ ( 712 ) __________ (a) This AOCI component is included in the computation of net periodic pension and OPEB cost. See Note 14 — Retirement Benefits and Note 7 — Retirement Benefits of the 2024 Form 10-K for additional information. See Exelon's Statements of Operations and Comprehensive Income for individual components of AOCI. The following table presents Income tax benefit (expense) allocated to each component of Exelon's Other comprehensive income (loss): Three Months Ended March 31, 2025 2024 Pension and non-pension postretirement benefit plans: Actuarial losses reclassified to periodic benefit cost $ ( 2 ) $ ( 2 ) Pension and non-pension postretirement benefit plans valuation adjustments ( 2 ) 8 Unrealized gains on cash flow hedges 3 ( 10 ) 14. Supplemental Financial Information (All Registrants) Supplemental Statement of Operations Information The following tables provide additional information about material items recorded in the Registrants' Consolidated Statements of Operations and Comprehensive Income: 82 Table of Contents Combined Notes to Consolidated Financial Statements — (Continued) (Dollars in millions, except per share data, unless otherwise noted) Note 14 — Supplemental Financial Information Taxes other than income taxes Exelon ComEd PECO BGE PHI Pepco DPL ACE Three Months Ended March 31, 2025 Utility taxes (a) $ 258 $ 81 $ 50 $ 34 $ 93 $ 84 $ 8 $ 1 Property 111 9 5 57 40 28 12 — Payroll 33 8 5 5 7 1 1 1 Three Months Ended March 31, 2024 Utility taxes (a) $ 229 $ 75 $ 41 $ 31 $ 82 $ 74 $ 8 $ — Property 105 9 4 53 38 26 11 1 Payroll 34 9 5 5 7 2 1 1 _________ (a) The Registrants' utility taxes represent municipal and state utility taxes and gross receipts taxes related to their operating revenues. The offsetting collection of utility taxes from customers is recorded in revenues in the Registrants’ Consolidated Statements of Operations and Comprehensive Income. Other, net Exelon ComEd PECO BGE PHI Pepco DPL ACE Three Months Ended March 31, 2025 AFUDC — Equity $ 39 $ 12 $ 7 $ 9 $ 11 $ 8 $ 2 $ 1 Non-service net periodic benefit cost ( 13 ) — — — — — — — Three Months Ended March 31, 2024 AFUDC — Equity $ 40 $ 10 $ 8 $ 7 $ 15 $ 12 $ 3 $ — Non-service net periodic benefit cost ( 7 ) — — — — — — — Supplemental Cash Flow Information The following tables provide additional information about material items recorded in the Registrants' Consolidated Statements of Cash Flows. 83 Table of Contents Combined Notes to Consolidated Financial Statements — (Continued) (Dollars in millions, except per share data, unless otherwise noted) Note 14 — Supplemental Financial Information Depreciation, amortization, and accretion Exelon ComEd PECO BGE PHI Pepco DPL ACE Three Months Ended March 31, 2025 Property, plant, and equipment (a) $ 750 $ 302 $ 108 $ 124 $ 201 $ 88 $ 57 $ 55 Amortization of regulatory assets and liabilities, net (a) 152 78 1 40 33 17 6 9 Amortization of intangible assets, net (a) 2 — — — — — — — ARO accretion (b) 1 — — — — — — — Total depreciation, amortization and accretion $ 905 $ 380 $ 109 $ 164 $ 234 $ 105 $ 63 $ 64 Three Months Ended March 31, 2024 Property, plant, and equipment (a) $ 711 $ 284 $ 101 $ 122 $ 190 $ 81 $ 52 $ 53 Amortization of regulatory assets and liabilities, net (a) 166 78 3 28 56 26 9 21 Amortization of intangible assets, net (a) 2 — — — — — — — ARO accretion (b) 1 — — — — — — — Total depreciation and amortization $ 880 $ 362 $ 104 $ 150 $ 246 $ 107 $ 61 $ 74 __________ (a) Included in Depreciation and amortization expense in the Registrants' Consolidated Statements of Operations and Comprehensive Income. (b) Included in Operating and maintenance expense in Exelon's Consolidated Statements of Operations and Comprehensive Income. Other non-cash operating activities Exelon ComEd PECO BGE PHI Pepco DPL ACE Three Months Ended March 31, 2025 Pension and OPEB costs $ 68 $ 21 $ 2 $ 16 $ 25 $ 8 $ 4 $ 3 Allowance for credit losses 97 11 43 14 29 10 9 10 True-up adjustments to decoupling mechanisms and formula rates (a) 136 85 9 29 13 ( 2 ) 5 10 Amortization of operating ROU asset 9 — — 2 6 1 2 2 AFUDC — Equity ( 39 ) ( 12 ) ( 7 ) ( 9 ) ( 11 ) ( 8 ) ( 2 ) ( 1 ) Three Months Ended March 31, 2024 Pension and OPEB costs $ 61 $ 17 $ — $ 15 $ 23 $ 9 $ 4 $ 3 Allowance for credit losses 63 2 27 12 22 16 3 3 True-up adjustments to decoupling mechanisms and formula rates (a) ( 91 ) ( 19 ) 2 ( 43 ) ( 31 ) ( 29 ) 4 ( 6 ) Amortization of operating ROU asset 9 — — 2 6 1 2 1 AFUDC — Equity ( 40 ) ( 10 ) ( 8 ) ( 7 ) ( 15 ) ( 12 ) ( 3 ) — __________ (a) For ComEd, reflects the true-up adjustments in Regulatory assets and liabilities associated with its distribution MRP and distribution, energy efficiency, distributed generation, and transmission formula rates. For PECO, reflects the change in Regulatory assets and liabilities associated with its transmission formula rates. For BGE, Pepco, DPL, and ACE, reflects the change in Regulatory assets and liabilities associated with their decoupling mechanisms and transmission formula rates. See Note 3 — Regulatory Matters of the 2024 Form 10-K for additional information. 84 Table of Contents Combined Notes to Consolidated Financial Statements — (Continued) (Dollars in millions, except per share data, unless otherwise noted) Note 14 — Supplemental Financial Information The following tables provide a reconciliation of cash, cash equivalents, and restricted cash reported within the Registrants’ Consolidated Balance Sheets that sum to the total of the same amounts in their Consolidated Statements of Cash Flows. Cash, cash equivalents, and restricted cash Exelon ComEd PECO BGE PHI Pepco DPL ACE Balance at March 31, 2025 Cash and cash equivalents $ 1,004 $ 96 $ 54 $ 14 $ 127 $ 58 $ 50 $ 18 Restricted cash and cash equivalents 578 501 — 3 43 31 11 1 Restricted cash included in Other deferred debits and other assets — — — — — — — — Total cash, restricted cash, and cash equivalents $ 1,582 $ 597 $ 54 $ 17 $ 170 $ 89 $ 61 $ 19 Balance at December 31, 2024 Cash and cash equivalents $ 357 $ 105 $ 48 $ 33 $ 139 $ 30 $ 21 $ 14 Restricted cash and cash equivalents 541 486 — 1 24 21 2 — Restricted cash included in Other deferred debits and other assets 41 41 — — — — — — Total cash, restricted cash, and cash equivalents $ 939 $ 632 $ 48 $ 34 $ 163 $ 51 $ 23 $ 14 Balance at March 31, 2024 Cash and cash equivalents $ 720 $ 100 $ 39 $ 27 $ 504 $ 198 $ 269 $ 27 Restricted cash and cash equivalents 489 428 9 — 23 22 1 — Restricted cash included in Other deferred debits and other assets 99 99 — — — — — — Total cash, restricted cash, and cash equivalents $ 1,308 $ 627 $ 48 $ 27 $ 527 $ 220 $ 270 $ 27 For additional information on restricted cash see Note 1 — Significant Accounting Policies of the 2024 Form 10-K. Supplemental Balance Sheet Information The following table provides additional information about material items recorded in the Registrants' Consolidated Balance Sheets. 85 Table of Contents Combined Notes to Consolidated Financial Statements — (Continued) (Dollars in millions, except per share data, unless otherwise noted) Note 14 — Supplemental Financial Information Accrued expenses Exelon ComEd PECO BGE PHI Pepco DPL ACE Balance at March 31, 2025 Compensation-related accruals (a) $ 377 $ 115 $ 53 $ 51 $ 64 $ 19 $ 13 $ 9 Taxes accrued 222 148 31 81 138 116 21 12 Interest accrued 440 89 56 77 83 37 27 17 Balance at December 31, 2024 Compensation-related accruals (a) $ 679 $ 197 $ 87 $ 88 $ 132 $ 38 $ 26 $ 18 Taxes accrued 217 96 13 34 110 92 11 11 Interest accrued 468 150 60 50 83 44 16 18 __________ (a) Primarily includes accrued payroll, bonuses and other incentives, vacation, and benefits. 15. Related Party Transactions (All Registrants) Service Company Costs for Corporate Support The Registrants receive a variety of corporate support services from BSC. Pepco, DPL, and ACE also receive corporate support services from PHISCO. See Note 1 — Significant Accounting Policies for additional information regarding BSC and PHISCO. The following table presents the service company costs allocated to the Registrants: Operating and maintenance from affiliates Capitalized costs Three Months Ended March 31, Three Months Ended March 31, 2025 2024 2025 2024 Exelon BSC $ 160 $ 158 PHISCO 25 29 ComEd BSC $ 100 $ 100 62 71 PECO BSC 59 58 27 29 BGE BSC 63 59 33 24 PHI BSC 52 50 39 34 PHISCO — — 25 29 Pepco BSC 32 31 17 17 PHISCO 31 33 10 12 DPL BSC 20 19 12 12 PHISCO 25 25 8 9 ACE BSC 16 16 8 5 PHISCO 23 23 7 8 86 Table of Contents Combined Notes to Consolidated Financial Statements — (Continued) (Dollars in millions, except per share data, unless otherwise noted) Note 15 — Related Party Transactions Current Receivables from/Payables to Affiliates The following tables present current Receivables from affiliates and current Payables to affiliates: March 31, 2025 Receivables from affiliates: Payables to affiliates: ComEd PECO BGE Pepco DPL ACE BSC PHISCO Other Total ComEd $ — $ — $ — $ — $ — $ 58 $ — $ 2 $ 60 PECO $ 1 — — — — 30 — 6 37 BGE 1 — — — — 36 — 1 38 PHI 1 — — — — — 7 — 11 19 Pepco — — — — — 17 16 1 34 DPL 1 — — — — 11 12 ( 1 ) 23 ACE — — — — — 10 11 ( 1 ) 20 Other 4 — — — 1 7 — — 12 Total $ 8 $ — $ — $ — $ 1 $ 7 $ 169 $ 39 $ 19 $ 243 December 31, 2024 Receivables from affiliates: Payables to affiliates: ComEd PECO BGE Pepco DPL ACE BSC PHISCO Other Total ComEd $ — $ — $ — $ — $ — $ 67 $ — $ 10 $ 77 PECO $ — — — — — 37 — 4 41 BGE — — — — — 47 — 1 48 PHI — — — — — — 7 1 10 18 Pepco — — — — — 21 15 1 37 DPL — — — — — 14 11 1 26 ACE — — — — — 11 10 1 22 Other 4 — — 1 — 7 — — 12 Total $ 4 $ — $ — $ 1 $ — $ 7 $ 204 $ 37 $ 28 $ 281 Borrowings from Exelon/PHI intercompany money pool To provide an additional short-term borrowing option that will generally be more favorable to the borrowing participants than the cost of external financing both Exelon and PHI operate an intercompany money pool. PECO and PHI Corporate participate in the Exelon intercompany money pool. Pepco, DPL, and ACE participate in the PHI intercompany money pool. Long-term debt to financing trusts The following table presents Long-term debt to financing trusts: March 31, 2025 December 31, 2024 Exelon ComEd PECO Exelon ComEd PECO ComEd Financing III $ 206 $ 206 $ — $ 206 $ 206 $ — PECO Trust III 81 — 81 81 — 81 PECO Trust IV 103 — 103 103 — 103 Total $ 390 $ 206 $ 184 $ 390 $ 206 $ 184 87 Table of Contents