Financial News

Exelon Reports Fourth Quarter and Full Year 2022 Results and Initiates 2023 Financial Outlook

Earnings Release Highlights

  • GAAP Net Income and Adjusted (non-GAAP) Operating Earnings of $0.43 per share for the fourth quarter of 2022
  • Introducing 2023 Adjusted (non-GAAP) Operating Earnings guidance range of $2.30-$2.42 per share, reflecting continued growth in the utilities
  • Declaring quarterly dividend of $0.36 per share for the first quarter of 2023, representing 6.7% growth over 2022 fourth quarter dividend of $0.3375 per share
  • Projecting to invest $31.3 billion of capital expenditures over the next four years to meet customer needs, resulting in expected rate base growth of 7.9% and a fully regulated operating EPS* compounded annual growth of 6-8% from 2022 to 2026 off the midpoint of 2022 guidance
  • ComEd, PECO, and PHI ended the year with their best-on-record performances in SAIFI, and all gas utilities sustained top decile performance in gas odor response for the fourth straight quarter
  • Delmarva Power filed an electric distribution rate case with the Delaware Public Service Commission (DEPSC) in December, seeking an increase in base rates to support significant infrastructure investments to maintain safety, reliability, and service for customers
  • A settlement was approved in December by the Maryland Public Service Commission (MDPSC) in Delmarva Power Maryland’s first electric distribution Multi-Year Plan case
  • ComEd filed a Multi-Year Integrated Grid Plan and a Multi-Year Rate Plan with the Illinois Commerce Commission (ICC) in January, seeking an increase in base rates over the period of 2024 to 2027 to support the decarbonization goals under the state’s Climate and Equitable Jobs Act (CEJA) and to ensure the transition to cleaner energy is reliable and equitable for all 9 million customers

Exelon Corporation (Nasdaq: EXC) today reported its financial results for the fourth quarter and full year 2022.

“In 2022, Exelon showcased our ability as a pure transmission and distribution company to deliver on our financial and operational commitments. Because of the partnership with our customers and communities, Exelon is ready to lead the energy transition to a cleaner and brighter future,” said Calvin Butler, Exelon president and CEO. “Our teams are focused on the things that matter to our customers: safety, reliability, sustainability and affordability, while ensuring our actions are grounded in taking an equitable and inclusive approach to the communities we serve. It’s a strong foundation for 2023 and beyond.”

“We delivered strong financial results in our first year as a new company,” said Jeanne Jones, executive vice president and CFO. “For the full year 2022, we earned $2.08 per share on a GAAP basis and $2.27 on a non-GAAP basis, results that are in the upper half of our guidance range. Over the next four years, Exelon will invest $31 billion to support our jurisdictions’ energy transitions, growing the rate base by 7.9%, and results in our expectations for 6% to 8% annualized growth in operating earnings per share through 2026, off the midpoint of our 2022 guidance. We expect adjusted (non-GAAP) earnings for 2023 of $2.30 - $2.42 per share, in line with the direction provided in our third-quarter earnings call.”

Fourth Quarter 2022

Exelon's GAAP Net Income from Continuing Operations for the fourth quarter of 2022 increased to $0.43 per share from $0.31 GAAP Net Income from Continuing Operations per share in the fourth quarter of 2021. Adjusted (non-GAAP) Operating Earnings for the fourth quarter of 2022 increased to $0.43 per share from $0.39 per share in the fourth quarter of 2021. For the reconciliations of GAAP Net Income from Continuing Operations to Adjusted (non-GAAP) Operating Earnings, refer to the tables beginning on page 5.

Adjusted (non-GAAP) Operating Earnings in the fourth quarter of 2022 primarily reflect:

  • Higher utility earnings primarily due to higher electric distribution earnings at ComEd from higher allowed electric distribution ROE due to an increase in treasury rates and higher rate base, and rate increases at PECO, BGE, and PHI. This was partially offset by higher interest expense at PECO, and higher depreciation expense and credit loss expense at PECO and PHI.
  • Lower earnings at Exelon Corporate primarily due to higher interest expense.

Full Year 2022

Exelon's GAAP Net Income from Continuing Operations for 2022 increased to $2.08 per share from $1.65 GAAP Net Income from Continuing Operations per share in 2021. Adjusted (non-GAAP) Operating Earnings for 2022 increased to $2.27 per share from $1.83 per share in 2021.

Adjusted (non-GAAP) Operating Earnings for the full year 2022 primarily reflect:

  • Higher utility earnings primarily due to higher electric distribution and transmission earnings at ComEd from higher allowed electric distribution ROE due to an increase in treasury rates and higher rate base, rate increases at PECO, BGE, and PHI, and decreased storm costs at PECO and BGE. This was partially offset by higher depreciation expense, credit loss expense, and interest expense at PECO, BGE, and PHI, and higher storm costs at PHI.
  • Higher earnings at Exelon Corporate due to certain BSC costs that were historically allocated to Constellation Energy Generation, LLC (Generation) but are presented as part of continuing operations in Exelon’s results in the fourth quarter of 2021 as these costs do not qualify as expenses of the discontinued operations per the accounting rules, partially offset by higher interest expense.

Operating Company Results1

ComEd

ComEd's fourth quarter of 2022 GAAP Net Income increased to $211 million from $133 million in the fourth quarter of 2021. ComEd's Adjusted (non-GAAP) Operating Earnings for the fourth quarter of 2022 increased to $211 million from $138 million in the fourth quarter of 2021, primarily due to increases in electric distribution formula rate earnings (reflecting higher allowed electric distribution ROE due to an increase in treasury rates and the impacts of higher rate base). Due to revenue decoupling, ComEd's distribution earnings are not affected by actual weather or customer usage patterns.

PECO

PECO’s fourth quarter of 2022 GAAP Net Income decreased to $102 million from $122 million in the fourth quarter of 2021. PECO's Adjusted (non-GAAP) Operating Earnings for the fourth quarter of 2022 decreased to $102 million from $125 million in the fourth quarter of 2021, primarily due to increases in depreciation expense, credit loss expense, and interest expense, partially offset by distribution rate increases.

BGE

BGE’s fourth quarter of 2022 GAAP Net Income decreased to $113 million from $117 million in the fourth quarter of 2021. BGE's Adjusted (non-GAAP) Operating Earnings for the fourth quarter of 2022 decreased to $114 million from $121 million in the fourth quarter of 2021, primarily due to an increase in various expenses, offset by favorable impacts of the multi-year plans. Due to revenue decoupling, BGE's distribution earnings are not affected by actual weather or customer usage patterns.

PHI

PHI’s fourth quarter of 2022 GAAP Net Income increased to $90 million from $26 million in the fourth quarter of 2021. PHI’s Adjusted (non-GAAP) Operating Earnings for the fourth quarter of 2022 increased to $90 million from $64 million in the fourth quarter of 2021, primarily due to distribution rate increases, lower contracting costs, and timing of excess deferred tax amortization, partially offset by increases in depreciation expense and credit loss expense. Due to revenue decoupling, PHI's distribution earnings related to Pepco Maryland, DPL Maryland, Pepco District of Columbia, and ACE are not affected by actual weather or customer usage patterns.

Initiates Annual Guidance for 2023

Exelon introduced a guidance range for 2023 Adjusted (non-GAAP) Operating Earnings of $2.30-$2.42 per share. The outlook for 2023 Adjusted (non-GAAP) Operating Earnings for Exelon and its subsidiaries excludes costs related to the separation.

___________

1Exelon’s four business units include ComEd, which consists of electricity transmission and distribution operations in northern Illinois; PECO, which consists of electricity transmission and distribution operations and retail natural gas distribution operations in southeastern Pennsylvania; BGE, which consists of electricity transmission and distribution operations and retail natural gas distribution operations in central Maryland; and PHI, which consists of electricity transmission and distribution operations in the District of Columbia and portions of Maryland, Delaware, and New Jersey and retail natural gas distribution operations in northern Delaware.

Recent Developments and Fourth Quarter Highlights

  • Dividend: On February 14, 2023, Exelon’s Board of Directors declared a regular quarterly dividend of $0.36 per share on Exelon’s common stock for the first quarter of 2023. The dividend is payable on Friday, March 10, 2023, to shareholders of record of Exelon as of 5 p.m. Eastern time on Monday, February 27, 2023.
  • ComEd Electric Base Rate Case: On January 17, 2023, ComEd filed an application for a four-year cumulative multi-year rate plan for January 1, 2024 to December 31, 2027 with the ICC to increase its electric distribution rates by $877 million effective January 1, 2024, $175 million effective January 1, 2025, $217 million effective January 1, 2026, and $203 million effective January 1, 2027, based on forecasted revenue requirements. The revenue requirement will provide for a weighted average debt and equity return on distribution rate base of 7.43% in 2024, 7.50% in 2025, 7.62% in 2026, and 7.70% in 2027, inclusive of an allowed ROE of 10.50% in 2024, 10.55% in 2025, 10.60% in 2026, and 10.65% in 2027. The requested revenue requirements are based on capital structures that reflect between 50.58% and 51.19% common equity. ComEd’s MRP also includes a proposed rate phase-in to defer approximately $307 million of the $877 million year-over-year increase for 2024 revenue from 2024 to 2026. ComEd currently expects a decision in the fourth quarter of 2023, but cannot predict if the ICC will approve the application as filed.
  • ComEd Distribution Formula Rate: On November 17, 2022, the ICC approved ComEd's electric distribution formula rate of $199 million, which will take effect on January 1, 2023. ComEd’s 2023 approved revenue requirement above reflects an increase of $144 million for the initial year revenue requirement for 2023 and an increase of $55 million related to the annual reconciliation for 2021. The revenue requirement for 2023 provides for a weighted average debt and equity return on distribution rate base of 5.94% inclusive of an allowed ROE of 7.85%, reflecting the monthly average yields for 30-year treasury bonds plus 580 basis points. The reconciliation revenue requirement for 2021 provides for a weighted average debt and equity return on distribution rate base of 5.91%, inclusive of an allowed ROE of 7.78%, reflecting the monthly yields on 30-year treasury bonds plus 580 basis points less a performance metrics penalty of 7 basis points.
  • DPL Maryland Electric Base Rate Case: On December 14, 2022, the MDPSC approved DPL’s three-year multi-year plan for January 1, 2023 through December 31, 2025. The order approved an incremental increase in DPL’s electric distribution rates of $17 million, $6 million, and $6 million for 2023, 2024, and, 2025, respectively, reflecting an ROE of 9.60%.
  • DPL Delaware Electric Base Rate Case: On December 15, 2022, DPL Delaware filed an application with the DEPSC to increase its annual electric distribution rates by $60 million, reflecting an ROE of 10.50%. DPL currently expects a decision in the second quarter of 2024 but cannot predict if the DEPSC will approve the application as filed.
  • Financing Activities:
    • On October 4, 2022, ComEd entered into a 364-day term loan agreement for $150 million with a variable rate equal to SOFR plus 0.75% and an expiration date of October 3, 2023. The proceeds from this loan were used to repay outstanding commercial paper obligations.
    • On October 7, 2022, Exelon Corporate entered into an 18-month term loan agreement for $500 million with a variable rate equal to SOFR plus 0.85% and an expiration date of April 7, 2024. In conjunction with this loan, Exelon repaid the remaining $575 million in borrowings on the $1.15 billion term loan entered into on January 24, 2022.
    • On January 3, 2023, ComEd entered into a purchase agreement of First Mortgage Bonds of $400 million and $575 million at 4.90% and 5.30% due on February 1, 2033 and February 1, 2053, respectively. The closing date of the issuance occurred on January 10, 2023.

GAAP/Adjusted (non-GAAP) Operating Earnings Reconciliation

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

(in millions, except per share amounts)

Exelon

Earnings per

Diluted

Share

Exelon

ComEd

PECO

BGE

PHI

2022 GAAP Net Income (Loss) from Continuing Operations

$

0.43

 

$

432

 

$

211

$

102

$

113

$

90

Mark-to-Market Impact of Economic Hedging Activities (net of taxes of $1)

 

 

 

4

 

 

 

 

 

Asset Impairments (net of taxes of $0)

 

 

 

1

 

 

 

 

1

 

Separation Costs (net of taxes of $0)

 

 

 

(1

)

 

 

 

 

Income Tax-Related Adjustments (entire amount represents tax expense)

 

(0.01

)

 

(8

)

 

 

 

 

2022 Adjusted (non-GAAP) Operating Earnings

$

0.43

 

$

428

 

$

211

$

102

$

114

$

90

 

 

 

 

 

 

 

Adjusted (non-GAAP) Operating Earnings for the fourth quarter of 2021 do not include the following items (after tax) that were included in reported GAAP Net Income from Continuing Operations:

(in millions, except per share amounts)

Exelon

Earnings per

Diluted

Share

Exelon

ComEd

PECO

BGE

PHI

2021 GAAP Net Income (Loss) from Continuing Operations

$

0.31

$

309

$

133

$

122

$

117

$

26

COVID-19 Direct Costs (net of taxes of $2, $0, $0, and $1, respectively)

 

0.01

 

7

 

 

1

 

1

 

2

ERP System Implementation Costs (net of taxes of $1)

 

 

3

 

 

 

 

Separation Costs (net of taxes of $8, $2, $1, $1, and $1, respectively)

 

0.03

 

27

 

5

 

2

 

3

 

4

Income Tax-Related Adjustments (entire amount represents tax expense)

 

0.04

 

39

 

 

 

 

32

2021 Adjusted (non-GAAP) Operating Earnings

$

0.39

$

385

$

138

$

125

$

121

$

64

 

 

 

 

 

 

 

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

(in millions, except per share amounts)

Exelon

Earnings per

Diluted

Share

Exelon

ComEd

PECO

BGE

PHI

2022 GAAP Net Income (Loss) from Continuing Operations

$

2.08

$

2,054

 

$

917

$

576

$

380

$

608

 

Mark-to-Market Impact of Economic Hedging Activities (net of taxes of $1)

 

 

4

 

 

 

 

 

 

Asset Retirement Obligation (net of taxes of $2)

 

 

(4

)

 

 

 

 

(4

)

Asset Impairments (net of taxes of $10)

 

0.04

 

38

 

 

 

 

38

 

 

ERP System Implementation Costs (net of taxes of $0)

 

 

1

 

 

 

 

 

 

Separation Costs (net of taxes of $10, $4, $2, $2, and $3, respectively)

 

0.02

 

24

 

 

9

 

4

 

4

 

7

 

Income Tax-Related Adjustments (entire amount represents tax expense)

 

0.12

 

122

 

 

 

38

 

 

3

 

2022 Adjusted (non-GAAP) Operating Earnings

$

2.27

$

2,239

 

$

926

$

619

$

423

$

614

 

 

 

 

 

 

 

 

Adjusted (non-GAAP) Operating Earnings for the full year of 2021 do not include the following items (after tax) that were included in reported GAAP Net Income from Continuing Operations:

(in millions, except per share amounts)

Exelon

Earnings per

Diluted

Share

Exelon

ComEd

PECO

BGE

PHI

2021 GAAP Net Income (Loss) from Continuing Operations

$

1.65

$

1,616

$

742

$

504

$

408

$

561

Mark-to-Market Impact of Economic Hedging Activities (net of taxes of $3)

 

 

4

 

 

 

 

Cost Management Program (net of taxes of $1, $0, $0, and $0)

 

0.01

 

6

 

 

1

 

1

 

1

COVID-19 Direct Costs (net of taxes of $6, $2, $1, and $2, respectively)

 

0.01

 

14

 

 

4

 

3

 

4

Asset Retirement Obligation (net of taxes of $1)

 

 

2

 

 

 

 

2

Acquisition Related Costs (net of taxes of $5)

 

0.02

 

15

 

 

 

 

ERP System Implementation Costs (net of taxes of $4, $0, $0, and $0)

 

0.01

 

13

 

 

1

 

1

 

1

Separation Costs (net of taxes of $21, $5, $2, $3, and $3, respectively)

 

0.06

 

58

 

12

 

6

 

7

 

9

Income Tax-Related Adjustments (entire amount represents tax expense)

 

0.06

 

62

 

 

 

 

32

2021 Adjusted (non-GAAP) Operating Earnings

$

1.83

$

1,791

$

754

$

516

$

419

$

609

 

 

 

 

 

 

 

Note:

Amounts may not sum due to rounding.

Unless otherwise noted, the income tax impact of each reconciling item between GAAP Net Income (Loss) from Continuing Operations and Adjusted (non-GAAP) Operating Earnings is based on the marginal statutory federal and state income tax rates for each Registrant, taking into account whether the income or expense item is taxable or deductible, respectively, in whole or in part. For all items, the marginal statutory income tax rates for 2022 and 2021 ranged from 24.0% to 29.0%.

Webcast Information

Exelon will discuss fourth quarter 2022 earnings in a conference call scheduled for today at 9 a.m. Central Time (10 a.m. Eastern Time). The webcast and associated materials can be accessed at www.exeloncorp.com/investor-relations.

About Exelon

Exelon (Nasdaq: EXC) is a Fortune 200 company and the nation’s largest energy delivery company, serving more than 10 million customers through six fully regulated transmission and distribution utilities — Atlantic City Electric (ACE), Baltimore Gas and Electric (BGE), Commonwealth Edison (ComEd), Delmarva Power & Light (DPL), PECO Energy Company (PECO), and Potomac Electric Power Company (Pepco). More than 18,000 Exelon employees dedicate their time and expertise to powering a cleaner and brighter future for our customers and communities through reliable, affordable and efficient energy delivery, workforce development, equity, economic development and volunteerism. Follow Exelon on Twitter @Exelon.

Non-GAAP Financial Measures

In addition to net income as determined under generally accepted accounting principles in the United States (GAAP), Exelon evaluates its operating performance using the measure of Adjusted (non-GAAP) Operating Earnings because management believes it represents earnings directly related to the ongoing operations of the business. Adjusted (non-GAAP) Operating Earnings exclude certain costs, expenses, gains and losses, and other specified items. This measure is intended to enhance an investor’s overall understanding of period over period operating results and provide an indication of Exelon’s baseline operating performance excluding items that are considered by management to be not directly related to the ongoing operations of the business. In addition, this measure is among the primary indicators management uses as a basis for evaluating performance, allocating resources, setting incentive compensation targets, and planning and forecasting of future periods. Adjusted (non-GAAP) Operating Earnings is not a presentation defined under GAAP and may not be comparable to other companies’ presentation. Exelon has provided the non-GAAP financial measure as supplemental information and in addition to the financial measures that are calculated and presented in accordance with GAAP. Adjusted (non-GAAP) Operating Earnings should not be deemed more useful than, a substitute for, or an alternative to the most comparable GAAP Net Income measures provided in this earnings release and attachments. This press release and earnings release attachments provide reconciliations of Adjusted (non-GAAP) Operating Earnings to the most directly comparable financial measures calculated and presented in accordance with GAAP, are posted on Exelon’s website: www.exeloncorp.com, and have been furnished to the Securities and Exchange Commission on Form 8-K on Feb. 14, 2023.

Cautionary Statements Regarding Forward-Looking Information

This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to risks and uncertainties. Words such as “could,” “may,” “expects,” “anticipates,” “will,” “targets,” “goals,” “projects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “predicts,” “should,” and variations on such words, and similar expressions that reflect our current views with respect to future events and operational, economic, and financial performance, are intended to identify such forward-looking statements.

The factors that could cause actual results to differ materially from the forward-looking statements made by Exelon Corporation, Commonwealth Edison Company, PECO Energy Company, Baltimore Gas and Electric Company, Pepco Holdings LLC, Potomac Electric Power Company, Delmarva Power & Light Company, and Atlantic City Electric Company (Registrants) include those factors discussed herein, as well as the items discussed in (1) the Registrants' 2021 Annual Report on Form 10-K filed with the SEC on February 25, 2022 in Part I, ITEM 1A. Risk Factors; (2) the Registrants' Current Report on Form 8-K filed with the SEC on June 30, 2022 to recast Exelon's consolidated financial statements and certain other financial information originally included in the 2021 Form 10-K in (a) Part II, ITEM 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations and (b) Part II, ITEM 8. Financial Statements and Supplementary Data: Note 17, Commitments and Contingencies; (3) the Registrants' Third Quarter 2022 Quarterly Report on Form 10-Q (filed on Nov. 3, 2022) in (a) Part II, ITEM 1A. Risk Factors, (b) Part I, ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations, and (c) Part I, ITEM 1. Financial Statements: Note 13, Commitments and Contingencies; and (4) other factors discussed in filings with the SEC by the Registrants.

Investors are cautioned not to place undue reliance on these forward-looking statements, whether written or oral, which apply only as of the date of this press release. None of the Registrants undertakes any obligation to publicly release any revision to its forward-looking statements to reflect events or circumstances after the date of this press release.

 

Earnings Release Attachments

Table of Contents

 

Consolidating Statement of Operations

1

 

 

Consolidated Balance Sheets

3

 

 

Consolidated Statements of Cash Flows

5

 

 

Reconciliation of GAAP Net Income from Continuing Operations to Adjusted (non-GAAP) Operating Earnings and Analysis of Earnings

6

 

 

Statistics

 

ComEd

10

PECO

11

BGE

13

Pepco

16

DPL

17

ACE

19

 

Consolidating Statements of Operations

(unaudited)

(in millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ComEd

 

PECO

 

BGE

 

PHI

 

Other (a)

 

Exelon

Three Months Ended December 31, 2022

 

 

 

 

 

 

 

 

 

 

 

Operating revenues

$

1,225

 

 

$

1,026

 

 

$

1,086

 

 

$

1,342

 

 

$

(12

)

 

$

4,667

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

Purchased power and fuel

 

68

 

 

 

442

 

 

 

474

 

 

 

554

 

 

 

 

 

 

1,538

 

Operating and maintenance

 

368

 

 

 

288

 

 

 

220

 

 

 

292

 

 

 

69

 

 

 

1,237

 

Depreciation and amortization

 

341

 

 

 

95

 

 

 

161

 

 

 

240

 

 

 

15

 

 

 

852

 

Taxes other than income taxes

 

84

 

 

 

47

 

 

 

77

 

 

 

114

 

 

 

8

 

 

 

330

 

Total operating expenses

 

861

 

 

 

872

 

 

 

932

 

 

 

1,200

 

 

 

92

 

 

 

3,957

 

Operating income (loss)

 

364

 

 

 

154

 

 

 

154

 

 

 

142

 

 

 

(104

)

 

 

710

 

Other income and (deductions)

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

(106

)

 

 

(48

)

 

 

(41

)

 

 

(75

)

 

 

(115

)

 

 

(385

)

Other, net

 

14

 

 

 

8

 

 

 

5

 

 

 

22

 

 

 

52

 

 

 

101

 

Total other (deductions)

 

(92

)

 

 

(40

)

 

 

(36

)

 

 

(53

)

 

 

(63

)

 

 

(284

)

Income (loss) from continuing operations before income taxes

 

272

 

 

 

114

 

 

 

118

 

 

 

89

 

 

 

(167

)

 

 

426

 

Income taxes

 

61

 

 

 

12

 

 

 

5

 

 

 

(1

)

 

 

(83

)

 

 

(6

)

Net income (loss) from continuing operations after income taxes

 

211

 

 

 

102

 

 

 

113

 

 

 

90

 

 

 

(84

)

 

 

432

 

Net income from discontinued operations after income taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

211

 

 

 

102

 

 

 

113

 

 

 

90

 

 

 

(84

)

 

 

432

 

Net income attributable to noncontrolling interests

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) attributable to common shareholders

$

211

 

 

$

102

 

 

$

113

 

 

$

90

 

 

$

(84

)

 

$

432

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended December 31, 2021

 

 

 

 

 

 

 

 

 

 

 

Operating revenues

$

1,567

 

 

$

798

 

 

$

915

 

 

$

1,187

 

 

$

(43

)

 

$

4,424

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

Purchased power and fuel

 

544

 

 

 

282

 

 

 

336

 

 

 

444

 

 

 

(2

)

 

 

1,604

 

Operating and maintenance

 

387

 

 

 

227

 

 

 

215

 

 

 

313

 

 

 

65

 

 

 

1,207

 

Depreciation and amortization

 

311

 

 

 

89

 

 

 

157

 

 

 

207

 

 

 

16

 

 

 

780

 

Taxes other than income taxes

 

77

 

 

 

41

 

 

 

72

 

 

 

109

 

 

 

9

 

 

 

308

 

Total operating expenses

 

1,319

 

 

 

639

 

 

 

780

 

 

 

1,073

 

 

 

88

 

 

 

3,899

 

Loss on sales of assets and businesses

 

 

 

 

 

 

 

 

 

 

 

 

 

(3

)

 

 

(3

)

Operating income (loss)

 

248

 

 

 

159

 

 

 

135

 

 

 

114

 

 

 

(134

)

 

 

522

 

Other income and (deductions)

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

(97

)

 

 

(41

)

 

 

(35

)

 

 

(66

)

 

 

(83

)

 

 

(322

)

Other, net

 

13

 

 

 

7

 

 

 

7

 

 

 

16

 

 

 

28

 

 

 

71

 

Total other (deductions)

 

(84

)

 

 

(34

)

 

 

(28

)

 

 

(50

)

 

 

(55

)

 

 

(251

)

Income (loss) from continuing operations before income taxes

 

164

 

 

 

125

 

 

 

107

 

 

 

64

 

 

 

(189

)

 

 

271

 

Income taxes

 

31

 

 

 

3

 

 

 

(10

)

 

 

38

 

 

 

(100

)

 

 

(38

)

Net income (loss) from continuing operations after income taxes

 

133

 

 

 

122

 

 

 

117

 

 

 

26

 

 

 

(89

)

 

 

309

 

Net income from discontinued operations after income taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

79

 

 

 

79

 

Net income (loss)

 

133

 

 

 

122

 

 

 

117

 

 

 

26

 

 

 

(10

)

 

 

388

 

Net loss attributable to noncontrolling interests

 

 

 

 

 

 

 

 

 

 

 

 

 

(3

)

 

 

(3

)

Net income (loss) attributable to common shareholders

$

133

 

 

$

122

 

 

$

117

 

 

$

26

 

 

$

(7

)

 

$

391

 

 

 

 

 

 

 

 

 

 

 

 

 

Change in Net income from continuing operations 2021 to 2022

$

78

 

 

$

(20

)

 

$

(4

)

 

$

64

 

 

$

5

 

 

$

123

 

 

Consolidating Statements of Operations

(unaudited)

(in millions)

 

 

ComEd

 

PECO

 

BGE

 

PHI

 

Other (a)

 

Exelon

Twelve Months Ended December 31, 2022

 

 

 

 

 

 

 

 

 

 

 

Operating revenues

$

5,761

 

 

$

3,903

 

 

$

3,895

 

 

$

5,565

 

 

$

(46

)

 

$

19,078

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

Purchased power and fuel

 

1,109

 

 

 

1,535

 

 

 

1,567

 

 

 

2,164

 

 

 

(2

)

 

 

6,373

 

Operating and maintenance

 

1,412

 

 

 

992

 

 

 

877

 

 

 

1,157

 

 

 

235

 

 

 

4,673

 

Depreciation and amortization

 

1,323

 

 

 

373

 

 

 

630

 

 

 

938

 

 

 

61

 

 

 

3,325

 

Taxes other than income taxes

 

374

 

 

 

202

 

 

 

302

 

 

 

475

 

 

 

37

 

 

 

1,390

 

Total operating expenses

 

4,218

 

 

 

3,102

 

 

 

3,376

 

 

 

4,734

 

 

 

331

 

 

 

15,761

 

Loss on sales of assets and businesses

 

(2

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2

)

Operating income (loss)

 

1,541

 

 

 

801

 

 

 

519

 

 

 

831

 

 

 

(377

)

 

 

3,315

 

Other income and (deductions)

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

(414

)

 

 

(177

)

 

 

(152

)

 

 

(292

)

 

 

(412

)

 

 

(1,447

)

Other, net

 

54

 

 

 

31

 

 

 

21

 

 

 

78

 

 

 

351

 

 

 

535

 

Total other (deductions)

 

(360

)

 

 

(146

)

 

 

(131

)

 

 

(214

)

 

 

(61

)

 

 

(912

)

Income (loss) from continuing operations before income taxes

 

1,181

 

 

 

655

 

 

 

388

 

 

 

617

 

 

 

(438

)

 

 

2,403

 

Income taxes

 

264

 

 

 

79

 

 

 

8

 

 

 

9

 

 

 

(11

)

 

 

349

 

Net income (loss) from continuing operations after income taxes

 

917

 

 

 

576

 

 

 

380

 

 

 

608

 

 

 

(427

)

 

 

2,054

 

Net income from discontinued operations after income taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

117

 

 

 

117

 

Net income (loss)

 

917

 

 

 

576

 

 

 

380

 

 

 

608

 

 

 

(310

)

 

 

2,171

 

Net income attributable to noncontrolling interests

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

 

 

1

 

Net income (loss) attributable to common shareholders

$

917

 

 

$

576

 

 

$

380

 

 

$

608

 

 

$

(311

)

 

$

2,170

 

 

 

 

 

 

 

 

 

 

 

 

 

Twelve Months Ended December 31, 2021

 

 

 

 

 

 

 

 

 

 

 

Operating revenues

$

6,406

 

 

$

3,198

 

 

$

3,341

 

 

$

5,041

 

 

$

(48

)

 

$

17,938

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

Purchased power and fuel

 

2,271

 

 

 

1,081

 

 

 

1,175

 

 

 

1,857

 

 

 

1

 

 

 

6,385

 

Operating and maintenance

 

1,355

 

 

 

934

 

 

 

811

 

 

 

1,104

 

 

 

343

 

 

 

4,547

 

Depreciation and amortization

 

1,205

 

 

 

348

 

 

 

591

 

 

 

821

 

 

 

68

 

 

 

3,033

 

Taxes other than income taxes

 

320

 

 

 

184

 

 

 

283

 

 

 

458

 

 

 

46

 

 

 

1,291

 

Total operating expenses

 

5,151

 

 

 

2,547

 

 

 

2,860

 

 

 

4,240

 

 

 

458

 

 

 

15,256

 

Operating income (loss)

 

1,255

 

 

 

651

 

 

 

481

 

 

 

801

 

 

 

(506

)

 

 

2,682

 

Other income and (deductions)

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

(389

)

 

 

(161

)

 

 

(138

)

 

 

(267

)

 

 

(334

)

 

 

(1,289

)

Other, net

 

48

 

 

 

26

 

 

 

30

 

 

 

69

 

 

 

88

 

 

 

261

 

Total other (deductions)

 

(341

)

 

 

(135

)

 

 

(108

)

 

 

(198

)

 

 

(246

)

 

 

(1,028

)

Income (loss) from continuing operations before income taxes

 

914

 

 

 

516

 

 

 

373

 

 

 

603

 

 

 

(752

)

 

 

1,654

 

Income taxes

 

172

 

 

 

12

 

 

 

(35

)

 

 

42

 

 

 

(153

)

 

 

38

 

Net income (loss) from continuing operations after income taxes

 

742

 

 

 

504

 

 

 

408

 

 

 

561

 

 

 

(599

)

 

 

1,616

 

Net income from discontinued operations after income taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

213

 

 

 

213

 

Net income (loss)

 

742

 

 

 

504

 

 

 

408

 

 

 

561

 

 

 

(386

)

 

 

1,829

 

Net income attributable to noncontrolling interests

 

 

 

 

 

 

 

 

 

 

 

 

 

123

 

 

 

123

 

Net income (loss) attributable to common shareholders

$

742

 

 

$

504

 

 

$

408

 

 

$

561

 

 

$

(509

)

 

$

1,706

 

 

 

 

 

 

 

 

 

 

 

 

 

Change in Net income from continuing operations 2021 to 2022

$

175

 

 

$

72

 

 

$

(28

)

 

$

47

 

 

$

172

 

 

$

438

 

__________

(a)

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

 

Exelon

Consolidated Balance Sheets

(unaudited)

(in millions)

 

 

 

December 31, 2022

 

December 31, 2021

Assets

 

 

 

 

Current assets

 

 

 

 

Cash and cash equivalents

 

$

407

 

 

$

672

 

Restricted cash and cash equivalents

 

 

566

 

 

 

321

 

Accounts receivable

 

 

 

 

Customer accounts receivable

 

 

2,544

 

 

 

2,189

 

Customer allowance for credit losses

 

 

(327

)

 

 

(320

)

Customer accounts receivable, net

 

 

2,217

 

 

 

1,869

 

Other accounts receivable

 

 

1,426

 

 

 

1,068

 

Other allowance for credit losses

 

 

(82

)

 

 

(72

)

Other accounts receivable, net

 

 

1,344

 

 

 

996

 

Inventories, net

 

 

 

 

Fossil fuel

 

 

208

 

 

 

105

 

Materials and supplies

 

 

547

 

 

 

476

 

Regulatory assets

 

 

1,641

 

 

 

1,296

 

Other

 

 

406

 

 

 

387

 

Current assets of discontinued operations

 

 

 

 

 

7,835

 

Total current assets

 

 

7,336

 

 

 

13,957

 

Property, plant, and equipment, net

 

 

69,076

 

 

 

64,558

 

Deferred debits and other assets

 

 

 

 

Regulatory assets

 

 

8,037

 

 

 

8,224

 

Goodwill

 

 

6,630

 

 

 

6,630

 

Receivable related to Regulatory Agreement Units

 

 

2,897

 

 

 

 

Investments

 

 

232

 

 

 

250

 

Other

 

 

1,141

 

 

 

885

 

Property, plant, and equipment, deferred debits, and other assets of discontinued operations

 

 

 

 

 

38,509

 

Total deferred debits and other assets

 

 

18,937

 

 

 

54,498

 

Total assets

 

$

95,349

 

 

$

133,013

 

 

 

 

 

 

 

 

 

 

 

Liabilities and shareholders’ equity

 

 

 

 

Current liabilities

 

 

 

 

Short-term borrowings

 

$

2,586

 

 

$

1,248

 

Long-term debt due within one year

 

 

1,802

 

 

 

2,153

 

Accounts payable

 

 

3,382

 

 

 

2,379

 

Accrued expenses

 

 

1,226

 

 

 

1,137

 

Payables to affiliates

 

 

5

 

 

 

5

 

Regulatory liabilities

 

 

437

 

 

 

376

 

Mark-to-market derivative liabilities

 

 

8

 

 

 

18

 

Unamortized energy contract liabilities

 

 

10

 

 

 

89

 

Other

 

 

1,155

 

 

 

766

 

Current liabilities of discontinued operations

 

 

 

 

 

7,940

 

Total current liabilities

 

 

10,611

 

 

 

16,111

 

Long-term debt

 

 

35,272

 

 

 

30,749

 

Long-term debt to financing trusts

 

 

390

 

 

 

390

 

Deferred credits and other liabilities

 

 

 

 

Deferred income taxes and unamortized investment tax credits

 

 

11,250

 

 

 

10,611

 

Regulatory liabilities

 

 

9,112

 

 

 

9,628

 

Pension obligations

 

 

1,109

 

 

 

2,051

 

Non-pension postretirement benefit obligations

 

 

507

 

 

 

811

 

Asset retirement obligations

 

 

269

 

 

 

271

 

Mark-to-market derivative liabilities

 

 

83

 

 

 

201

 

Unamortized energy contract liabilities

 

 

35

 

 

 

146

 

Other

 

 

1,967

 

 

 

1,573

 

Long-term debt, deferred credits, and other liabilities of discontinued operations

 

 

 

 

 

25,676

 

Total deferred credits and other liabilities

 

 

24,332

 

 

 

50,968

 

Total liabilities

 

 

70,605

 

 

 

98,218

 

Commitments and contingencies

 

 

 

 

Shareholders’ equity

 

 

 

 

Common stock

 

 

20,908

 

 

 

20,324

 

Treasury stock, at cost

 

 

(123

)

 

 

(123

)

Retained earnings

 

 

4,597

 

 

 

16,942

 

Accumulated other comprehensive loss, net

 

 

(638

)

 

 

(2,750

)

Total shareholders’ equity

 

 

24,744

 

 

 

34,393

 

Noncontrolling interests

 

 

 

 

 

402

 

Total equity

 

 

24,744

 

 

 

34,795

 

Total liabilities and shareholders’ equity

 

$

95,349

 

 

$

133,013

 

 

Exelon

Consolidated Statements of Cash Flows

(unaudited)

(in millions)

 

 

 

Twelve Months Ended December 31,

 

 

 

2022

 

 

 

2021

 

Cash flows from operating activities

 

 

 

 

Net income

 

$

2,171

 

 

$

1,829

 

Adjustments to reconcile net income to net cash flows provided by operating activities:

 

 

 

 

Depreciation, amortization, and accretion, including nuclear fuel and energy contract amortization

 

 

3,533

 

 

 

7,573

 

Asset impairments

 

 

48

 

 

 

552

 

Gain on sales of assets and businesses

 

 

(8

)

 

 

(201

)

Deferred income taxes and amortization of investment tax credits

 

 

255

 

 

 

18

 

Net fair value changes related to derivatives

 

 

(53

)

 

 

(568

)

Net realized and unrealized gains on NDT funds

 

 

205

 

 

 

(586

)

Net unrealized losses on equity investments

 

 

16

 

 

 

160

 

Other non-cash operating activities

 

 

370

 

 

 

(200

)

Changes in assets and liabilities:

 

 

 

 

Accounts receivable

 

 

(1,222

)

 

 

(703

)

Inventories

 

 

(121

)

 

 

(141

)

Accounts payable and accrued expenses

 

 

1,318

 

 

 

440

 

Option premiums paid, net

 

 

(39

)

 

 

(338

)

Collateral received (posted), net

 

 

1,248

 

 

 

(74

)

Income taxes

 

 

(4

)

 

 

327

 

Regulatory assets and liabilities, net

 

 

(1,326

)

 

 

(634

)

Pension and non-pension postretirement benefit contributions

 

 

(616

)

 

 

(665

)

Other assets and liabilities

 

 

(905

)

 

 

(3,777

)

Net cash flows provided by operating activities

 

 

4,870

 

 

 

3,012

 

Cash flows from investing activities

 

 

 

 

Capital expenditures

 

 

(7,147

)

 

 

(7,981

)

Proceeds from NDT fund sales

 

 

488

 

 

 

6,532

 

Investment in NDT funds

 

 

(516

)

 

 

(6,673

)

Collection of DPP

 

 

169

 

 

 

3,902

 

Proceeds from sales of assets and businesses

 

 

16

 

 

 

877

 

Other investing activities

 

 

 

 

 

26

 

Net cash flows used in investing activities

 

 

(6,990

)

 

 

(3,317

)

Cash flows from financing activities

 

 

 

 

Changes in short-term borrowings

 

 

986

 

 

 

269

 

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

 

 

1,300

 

 

 

1,380

 

Repayments on short-term borrowings with maturities greater than 90 days

 

 

(1,500

)

 

 

(350

)

Issuance of long-term debt

 

 

6,309

 

 

 

3,481

 

Retirement of long-term debt

 

 

(2,073

)

 

 

(1,640

)

Issuance of common stock

 

 

563

 

 

 

 

Dividends paid on common stock

 

 

(1,334

)

 

 

(1,497

)

Acquisition of CENG noncontrolling interest

 

 

 

 

 

(885

)

Proceeds from employee stock plans

 

 

36

 

 

 

80

 

Transfer of cash, restricted cash, and cash equivalents to Constellation

 

 

(2,594

)

 

 

 

Other financing activities

 

 

(102

)

 

 

(80

)

Net cash flows provided by financing activities

 

 

1,591

 

 

 

758

 

(Decrease) increase in cash, restricted cash, and cash equivalents

 

 

(529

)

 

 

453

 

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

 

 

1,619

 

 

 

1,166

 

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

 

$

1,090

 

 

$

1,619

 

 

Exelon

Reconciliation of GAAP Net Income (Loss) from Continuing Operations to Adjusted (non-GAAP) Operating Earnings and Analysis of Earnings

Three Months Ended December 31, 2022 and 2021

(unaudited)

(in millions, except per share data)

 

 

Exelon

Earnings per

Diluted

Share

 

ComEd

 

PECO

 

BGE

 

PHI

 

Other (a)

 

Exelon

2021 GAAP Net Income (Loss) from Continuing Operations

$

0.31

 

 

$

133

 

 

$

122

 

 

$

117

 

 

$

26

 

 

$

(89

)

 

$

309

 

COVID-19 Direct Costs (net of taxes of $0, $0, $1, $0 and $2 respectively) (1)

 

0.01

 

 

 

 

 

 

1

 

 

 

1

 

 

 

2

 

 

 

3

 

 

 

7

 

ERP System Implementation Costs (net of taxes of $1) (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3

 

 

 

3

 

Separation Costs (net of taxes of $2, $1, $1, $1, $3 and $8, respectively) (3)

 

0.03

 

 

 

5

 

 

 

2

 

 

 

3

 

 

 

4

 

 

 

13

 

 

 

27

 

Income Tax-Related Adjustments (entire amount represents tax (expense) (4)

 

0.04

 

 

 

 

 

 

 

 

 

 

 

 

32

 

 

 

7

 

 

 

39

 

2021 Adjusted (non-GAAP) Operating Earnings (Loss)

$

0.39

 

 

$

138

 

 

$

125

 

 

$

121

 

 

$

64

 

 

$

(63

)

 

$

385

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Over Year Effects on Adjusted (non-GAAP) Operating Earnings:

Weather

$

0.02

 

 

$

 

(b)

$

18

 

 

$

 

(b)

$

2

 

(b)

$

 

 

$

20

 

Load

 

 

 

 

 

(b)

 

(4

)

 

 

 

(b)

 

 

(b)

 

 

 

 

(4

)

Distribution and Transmission Rates (6)

 

0.10

 

 

 

46

 

(c)

 

21

 

(c)

 

9

 

(c)

 

19

 

(c)

 

 

 

 

95

 

Other Energy Delivery (7)

 

0.09

 

 

 

50

 

(c)

 

16

 

(c)

 

8

 

(c)

 

16

 

(c)

 

 

 

 

90

 

Operating and Maintenance Expense (8)

 

(0.08

)

 

 

3

 

 

 

(51

)

 

 

(7

)

 

 

9

 

 

 

(37

)

 

 

(83

)

Pension and Non-Pension Postretirement Benefits

 

0.02

 

 

 

6

 

 

 

2

 

 

 

2

 

 

 

 

 

 

7

 

 

 

17

 

Depreciation and Amortization Expense (9)

 

(0.05

)

 

 

(22

)

 

 

(5

)

 

 

(3

)

 

 

(24

)

 

 

1

 

 

 

(53

)

Other (10)

 

(0.05

)

 

 

(10

)

 

 

(20

)

 

 

(16

)

 

 

4

 

 

 

3

 

 

 

(39

)

Share Differential (11)

 

(0.01

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Year Over Year Effects on Adjusted (non-GAAP) Operating Earnings

$

0.04

 

 

$

73

 

 

$

(23

)

 

$

(7

)

 

$

26

 

 

$

(26

)

 

$

43

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2022 GAAP Net Income (Loss) from Continuing Operations

$

0.43

 

 

$

211

 

 

$

102

 

 

$

113

 

 

$

90

 

 

$

(84

)

 

$

432

 

Mark-to-Market Impact of Economic Hedging Activities (net of taxes of $1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4

 

 

 

4

 

Asset Impairments (net of taxes of $0) (5)

 

 

 

 

 

 

 

 

 

 

1

 

 

 

 

 

 

 

 

 

1

 

Separation Costs (net of taxes of $0) (3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1

)

 

 

(1

)

Income Tax-Related Adjustments (entire amount represents tax expense) (4)

 

(0.01

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(8

)

 

 

(8

)

2022 Adjusted (non-GAAP) Operating Earnings (Loss)

$

0.43

 

 

$

211

 

 

$

102

 

 

$

114

 

 

$

90

 

 

$

(89

)

 

$

428

 

Note:

Amounts may not sum due to rounding.

Unless otherwise noted, the income tax impact of each reconciling item between GAAP Net Income from Continuing Operations and Adjusted (non-GAAP) Operating Earnings is based on the marginal statutory federal and state income tax rates for each Registrant, taking into account whether the income or expense item is taxable or deductible, respectively, in whole or in part. For all items, the marginal statutory income tax rates for 2022 and 2021 ranged from 24.0% to 29.0%.

 

(a)

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

(b)

For ComEd, BGE, Pepco, DPL Maryland, and ACE, customer rates are adjusted to eliminate the impacts of weather and customer usage on distribution volumes.

(c)

For regulatory recovery mechanisms, including ComEd’s distribution formula rate and energy efficiency formula, ComEd, PECO, BGE, and PHI utilities transmission formula rates, and riders across all utilities, revenues increase and decrease i) as fully recoverable costs fluctuate (with no impact on net earnings), and ii) pursuant to changes in rate base, capital structure and ROE (which impact net earnings).

(1)

Represents direct costs related to COVID-19 consisting primarily of costs to acquire personal protective equipment, costs for cleaning supplies and services, and costs to hire healthcare professionals to monitor the health of employees, which are recorded in Operating and maintenance expense.

(2)

Reflects costs related to a multi-year Enterprise Resource Program (ERP) system implementation, which are recorded in Operating and maintenance expense.

(3)

Represents costs related to the separation primarily comprised of system-related costs, third-party costs paid to advisors, consultants, lawyers, and other experts assisting in the separation, and employee-related severance costs, which are recorded in Operating and maintenance expense.

(4)

In 2021, for PHI, primarily reflects the recognition of a valuation allowance against a deferred tax asset associated with Delaware net operating loss carryforwards due to a change in Delaware tax law. In 2022, for Corporate, in connection with the separation, Exelon recorded an income tax benefit related to deductible transaction costs.

(5)

Reflects costs related to the impairment of an office building at BGE, which are recorded in Operating and maintenance expense.

(6)

For ComEd, reflects increased distribution revenues due to higher allowed electric distribution ROE driven by an increase in treasury rates and higher rate base. For PECO, reflects increased revenue primarily due to distribution rate increases. For BGE, reflects increased revenue due to distribution rate increases. For PHI, reflects increased revenue primarily due to distribution rate increases.

(7)

For ComEd, reflects increased electric distribution, transmission, and energy efficiency revenues due to higher fully recoverable costs and increased revenues collected related to the Energy Transition Assistance Charge rider that are offset in Other. For PHI, includes the regulatory asset amortization of the ACE Purchase Power Agreement termination obligation recorded in the first quarter of 2022, which is fully recoverable.

(8)

Represents Operating and maintenance expense, excluding pension and non-pension postretirement benefits. For ComEd, primarily reflects the absence of the voluntary customer refund related to the ICC investigation of matters identified in the Deferred Prosecution Agreement. For PECO, includes higher contracting costs, an increase in charitable contributions, and an increase in credit loss expense. For BGE, primarily reflects an increase in charitable contributions. For PHI, primarily reflects lower contracting costs partially due to timing of maintenance projects. For Corporate, primarily reflects two offsetting items: 1) lower BSC costs that were historically allocated to Generation but are presented as part of continuing operations in Exelon’s results as these costs do not qualify as expenses of the discontinued operations per the accounting rules and 2) an increase in Operating and maintenance expense with an offsetting increase in other income for costs billed to Constellation for services provided by Exelon through the Transition Services Agreement (TSA). For Corporate, also reflects an increase in charitable contributions.

(9)

Reflects ongoing capital expenditures across all utilities. For ComEd, also reflects increased amortization of deferred energy efficiency costs. For PHI, also includes the regulatory asset amortization of the ACE Purchase Power Agreement termination obligation recorded in the first quarter of 2022, which is fully recoverable in Other Energy Delivery.

(10)

For ComEd, includes an increase in taxes related to the Energy Transition Assistance Charge rider which are fully recoverable in Other Energy Delivery. For PECO, includes an increase in interest expense. For PHI, reflects the timing of tax expense driven by the timing of excess deferred tax amortization, which reversed at year-end. For Corporate, primarily reflects an increase in other income for costs billed to Constellation for services provided by Exelon through the TSA with an offsetting increase in Operating and maintenance expense and an increase in interest expense.

(11)

Reflects the impact on earnings per share due to the increase in Exelon's average diluted common shares outstanding as a result of the August 2022 common stock issuance.

 

Exelon

Reconciliation of GAAP Net Income (Loss) from Continuing Operations to Adjusted (non-GAAP) Operating Earnings and Analysis of Earnings

Twelve Months Ended December 31, 2022 and 2021

(unaudited)

(in millions, except per share data)

 

 

Exelon

Earnings

per Diluted

Share

 

ComEd

 

PECO

 

BGE

 

PHI

 

Other (a)

 

Exelon

2021 GAAP Net Income (Loss) from Continuing Operations

$

1.65

 

 

$

742

 

 

$

504

 

 

$

408

 

 

$

561

 

 

$

(599

)

 

$

1,616

 

Mark-to-Market Impact of Economic Hedging Activities (net of taxes of $3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4

 

 

 

4

 

Cost Management Program (net of taxes of $0, $0, $0, $1, and $1)

 

0.01

 

 

 

 

 

 

1

 

 

 

1

 

 

 

1

 

 

 

3

 

 

 

6

 

COVID-19 Direct Costs (net of taxes of $2, $1, $2, $1, and $6, respectively) (1)

 

0.01

 

 

 

 

 

 

4

 

 

 

3

 

 

 

4

 

 

 

3

 

 

 

14

 

Asset Retirement Obligation (net of taxes of $1)

 

 

 

 

 

 

 

 

 

 

 

 

 

2

 

 

 

 

 

 

2

 

Acquisition Related Costs (net of taxes of $5) (2)

 

0.02

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

15

 

 

 

15

 

ERP System Implementation Costs (net of taxes of $0, $0, $0, $4 and $4, respectively) (3)

 

0.01

 

 

 

 

 

 

1

 

 

 

1

 

 

 

1

 

 

 

10

 

 

 

13

 

Separation Costs (net of taxes of $5, $2, $3, $3, $8 and $21, respectively) (4)

 

0.06

 

 

 

12

 

 

 

6

 

 

 

7

 

 

 

9

 

 

 

24

 

 

 

58

 

Income Tax-Related Adjustments (entire amount represents tax expense) (5)

 

0.06

 

 

 

 

 

 

 

 

 

 

 

 

32

 

 

 

30

 

 

 

62

 

2021 Adjusted (non-GAAP) Operating Earnings (Loss)

$

1.83

 

 

$

754

 

 

$

516

 

 

$

419

 

 

$

609

 

 

$

(507

)

 

$

1,791

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Over Year Effects on Adjusted (non-GAAP) Operating Earnings:

 

 

 

 

 

 

 

 

 

 

 

 

Weather

$

0.03

 

 

$

 

(b)

$

32

 

 

$

 

(b)

$

 

(b)

$

 

 

$

32

 

Load

 

(0.01

)

 

 

 

(b)

 

(10

)

 

 

 

(b)

 

(4

)

(b)

 

 

 

 

(14

)

Distribution and Transmission Rates (7)

 

0.40

 

 

 

132

 

(c)

 

122

 

(c)

 

55

 

(c)

 

87

 

(c)

 

 

 

 

396

 

Other Energy Delivery (8)

 

0.40

 

 

 

238

 

(c)

 

44

 

(c)

 

37

 

(c)

 

75

 

(c)

 

 

 

 

394

 

Operating and Maintenance Expense (9)

 

(0.21

)

 

 

(66

)

 

 

(59

)

 

 

(29

)

 

 

(52

)

 

 

(5

)

 

 

(211

)

Pension and Non-Pension Postretirement Benefits

 

0.06

 

 

 

21

 

 

 

7

 

 

 

9

 

 

 

 

 

 

18

 

 

 

55

 

Depreciation and Amortization Expense (10)

 

(0.22

)

 

 

(84

)

 

 

(19

)

 

 

(28

)

 

 

(84

)

 

 

1

 

 

 

(214

)

Other (11)

 

 

 

 

(69

)

 

 

(14

)

 

 

(40

)

 

 

(17

)

 

 

150

 

 

 

10

 

Share Differential (12)

 

(0.01

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Year Over Year Effects on Adjusted (non-GAAP) Operating Earnings

$

0.44

 

 

$

172

 

 

$

103

 

 

$

4

 

 

$

5

 

 

$

164

 

 

$

448

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2022 GAAP Net Income (Loss) from Continuing Operations

$

2.08

 

 

$

917

 

 

$

576

 

 

$

380

 

 

$

608

 

 

$

(427

)

 

$

2,054

 

Mark-to-Market Impact of Economic Hedging Activities (net of taxes of $1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4

 

 

 

4

 

Asset Retirement Obligation (net of taxes of $2)

 

 

 

 

 

 

 

 

 

 

 

 

 

(4

)

 

 

 

 

 

(4

)

Asset Impairments (net of taxes of $10) (6)

 

0.04

 

 

 

 

 

 

 

 

 

38

 

 

 

 

 

 

 

 

 

38

 

ERP System Implementation Costs (net of taxes of $0) (3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

 

 

1

 

Separation Costs (net of taxes of $4, $2, $2, $3, and $10, respectively) (4)

 

0.02

 

 

 

9

 

 

 

4

 

 

 

4

 

 

 

7

 

 

 

 

 

 

24

 

Income Tax-Related Adjustments (entire amount represents tax expense) (5)

 

0.12

 

 

 

 

 

 

38

 

 

 

 

 

 

3

 

 

 

81

 

 

 

122

 

2022 Adjusted (non-GAAP) Operating Earnings (Loss)

$

2.27

 

 

$

926

 

 

$

619

 

 

$

423

 

 

$

614

 

 

$

(343

)

 

$

2,239

 

 

Note:

Amounts may not sum due to rounding.

Unless otherwise noted, the income tax impact of each reconciling item between GAAP Net Income from Continuing Operations and Adjusted (non-GAAP) Operating Earnings is based on the marginal statutory federal and state income tax rates for each Registrant, taking into account whether the income or expense item is taxable or deductible, respectively, in whole or in part. For all items, the marginal statutory income tax rates for 2022 and 2021 ranged from 24.0% to 29.0%.

 

(a)

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

(b)

For ComEd, BGE, Pepco, DPL Maryland, and ACE, customer rates are adjusted to eliminate the impacts of weather and customer usage on distribution volumes.

(c)

For regulatory recovery mechanisms, including ComEd’s distribution formula rate and energy efficiency formula, ComEd, PECO, BGE, and PHI utilities transmission formula rates, and riders across all utilities, revenues increase and decrease i) as fully recoverable costs fluctuate (with no impact on net earnings), and ii) pursuant to changes in rate base, capital structure and ROE (which impact net earnings).

(1)

Represents direct costs related to COVID-19 consisting primarily of costs to acquire personal protective equipment, costs for cleaning supplies and services, and costs to hire healthcare professionals to monitor the health of employees, which are recorded in Operating and maintenance expense.

(2)

Reflects certain BSC costs related to the acquisition of Electricite de France SA's (EDF's) interest in CENG, which was completed in the third quarter of 2021, that were historically allocated to Constellation Energy Generation, LLC (Generation) but are presented as part of continuing operations in Exelon’s results as these costs do not qualify as expenses of the discontinued operations per the accounting rules.

(3)

Reflects costs related to a multi-year Enterprise Resource Program (ERP) system implementation, which are recorded in Operating and maintenance expense.

(4)

Represents costs related to the separation primarily comprised of system-related costs, third-party costs paid to advisors, consultants, lawyers, and other experts assisting in the separation, and employee-related severance costs, which are recorded in Operating and maintenance expense.

(5)

In 2021, for PHI, primarily reflects the recognition of a valuation allowance against a deferred tax asset associated with Delaware net operating loss carryforwards due to a change in Delaware tax law. In 2021, for Corporate, reflects the adjustment to deferred income taxes due to changes in forecasted apportionment. In 2022, for PECO, primarily reflects an adjustment to exclude one-time non-cash impacts associated with the remeasurement of deferred income taxes as a result of the reduction in Pennsylvania corporate income tax rate. In 2022, for Corporate, in connection with the separation, Exelon recorded an income tax expense primarily due to the long-term marginal state income tax rate change, the recognition of valuation allowances against the deferred tax assets positions for certain standalone state filing jurisdictions, and nondeductible transaction costs partially offset by a one-time impact associated with a state tax benefit.

(6)

Reflects costs related to the impairment of an office building at BGE, which are recorded in Operating and maintenance expense.

(7)

For ComEd, reflects increased distribution revenues due to higher allowed electric distribution ROE driven by an increase in treasury rates and higher rate base and increased transmission rates. For PECO, reflects increased revenue primarily due to distribution rate increases. For BGE, reflects increased revenue due to distribution and transmission rate increases. For PHI, reflects increased revenue primarily due to distribution rate increases.

(8)

For ComEd, reflects increased electric distribution, transmission, and energy efficiency revenues due to higher fully recoverable costs and increased revenues collected related to the Energy Transition Assistance Charge rider that are offset in Other. For PHI, includes the regulatory asset amortization of the ACE Purchase Power Agreement termination obligation recorded in the first quarter of 2022, which is fully recoverable.

(9)

Represents Operating and maintenance expense, excluding pension and non-pension postretirement benefits. For ComEd, reflects higher contracting costs. For PECO, primarily reflects an increase in charitable contributions, an increase in credit loss expense, an increase in contracting and materials costs, and an increase in other various expenses, partially offset by a decrease in storm costs. For BGE, reflects an increase in charitable contributions and an increase in credit loss expense, offset by a decrease in storm costs. For PHI, includes an increase in storm costs and an increase in credit loss expense. For Corporate, primarily reflects two offsetting items: 1) lower BSC costs that were historically allocated to Generation but are presented as part of continuing operations in Exelon’s results as these costs do not qualify as expenses of the discontinued operations per the accounting rules (2022 includes one month of costs for the period prior to the separation compared to twelve months of costs included in 2021) and 2) an increase in Operating and maintenance expense with an offsetting increase in other income for costs billed to Constellation for services provided by Exelon through the Transition Services Agreement (TSA). For Corporate, also reflects an increase in charitable contributions.

(10)

Reflects ongoing capital expenditures across all utilities. For ComEd, also reflects increased amortization of deferred energy efficiency costs. For PHI, includes the regulatory asset amortization of the ACE Purchase Power Agreement termination obligation recorded in the first quarter of 2022, which is fully recoverable in Other Energy Delivery.

(11)

For ComEd, includes an increase in taxes related to the Energy Transition Assistance Charge rider which are fully recoverable in Other Energy Delivery. For PECO, includes an increase in tax repairs deduction, offset by an increase in interest expense. For BGE and PHI, primarily reflects an increase in interest expense. For Corporate, primarily reflects an increase in other income for costs billed to Constellation for services provided by Exelon through the TSA with an offsetting increase in Operating and maintenance expense and an increase in interest expense.

(12)

Reflects the impact on earnings per share due to the increase in Exelon's average diluted common shares outstanding as a result of the August 2022 common stock issuance.

 

ComEd Statistics

Three Months Ended December 31, 2022 and 2021

 

 

Electric Deliveries (in GWhs)

 

Revenue (in millions)

 

2022

 

2021

 

% Change

 

Weather -

Normal %

Change

 

2022

 

2021

 

% Change

Electric Deliveries and Revenues(a)

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential

5,984

 

6,116

 

(2.2

)%

 

(4.1

)%

 

$

695

 

 

$

754

 

(7.8

)%

Small commercial & industrial

7,061

 

7,097

 

(0.5

)%

 

(1.7

)%

 

 

220

 

 

 

395

 

(44.3

)%

Large commercial & industrial

6,543

 

6,464

 

1.2

%

 

0.7

%

 

 

(43

)

 

 

139

 

(130.9

)%

Public authorities & electric railroads

250

 

242

 

3.3

%

 

1.3

%

 

 

7

 

 

 

12

 

(41.7

)%

Other(b)

 

 

n/a

 

 

n/a

 

 

 

237

 

 

 

250

 

(5.2

)%

Total electric revenues(c)

19,838

 

19,919

 

(0.4

)%

 

(1.6

)%

 

 

1,116

 

 

 

1,550

 

(28.0

)%

Other Revenues(d)

 

 

 

 

 

 

 

 

 

110

 

 

 

16

 

587.5

%

Total Electric Revenues

 

 

 

 

 

 

 

 

$

1,226

 

 

$

1,566

 

(21.7

)%

Purchased Power

 

 

 

 

 

 

 

 

$

68

 

 

$

544

 

(87.5

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

% Change

Heating and Cooling Degree-Days

2022

 

2021

 

Normal

 

From 2021

 

From Normal

Heating Degree-Days

2,091

 

1,783

 

2,139

 

17.3

%

 

(2.2

)%

Cooling Degree-Days

19

 

59

 

14

 

(67.8

)%

 

35.7

%

 

Twelve Months Ended December 31, 2022 and 2021

 

 

Electric Deliveries (in GWhs)

 

Revenue (in millions)

 

2022

 

2021

 

% Change

 

Weather - Normal % Change

 

2022

 

2021

 

% Change

Electric Deliveries and Revenues(a)

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential

27,819

 

28,344

 

(1.9

)%

 

(1.2

)%

 

$

3,304

 

$

3,233

 

2.2

%

Small commercial & industrial

29,766

 

29,707

 

0.2

%

 

%

 

 

1,173

 

 

1,571

 

(25.3

)%

Large commercial & industrial

26,904

 

26,420

 

1.8

%

 

1.9

%

 

 

5

 

 

559

 

(99.1

) %

Public authorities & electric railroads

909

 

940

 

(3.3

)%

 

(3.7

)%

 

 

29

 

 

45

 

(35.6

)%

Other(b)

 

 

n/a

 

 

n/a

 

 

 

955

 

 

926

 

3.1

%

Total electric revenues(c)

85,398

 

85,411

 

%

 

0.2

%

 

 

5,466

 

 

6,334

 

(13.7

)%

Other Revenues(d)

 

 

 

 

 

 

 

 

 

295

 

 

72

 

309.7

%

Total Electric Revenues

 

 

 

 

 

 

 

 

$

5,761

 

$

6,406

 

(10.1

)%

Purchased Power

 

 

 

 

 

 

 

 

$

1,109

 

$

2,271

 

(51.2

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

% Change

Heating and Cooling Degree-Days

2022

 

2021

Normal

 

From 2021

 

From Normal

Heating Degree-Days

6,044

 

5,415

6,000

 

11.6

%

 

0.7

%

Cooling Degree-Days

1,174

 

1,316

1,002

 

(10.8

)%

 

17.2

%

Number of Electric Customers

2022

 

2021

Residential

3,723,282

 

3,708,729

Small commercial & industrial

391,298

 

390,546

Large commercial & industrial

1,890

 

1,870

Public authorities & electric railroads

4,858

 

4,832

Total

4,121,328

 

4,105,977

__________

(a)

Reflects revenues from customers purchasing electricity directly from ComEd and customers purchasing electricity from a competitive electric generation supplier, as all customers are assessed delivery charges. For customers purchasing electricity from ComEd, revenues also reflect the cost of energy and transmission.

(b)

Includes transmission revenue from PJM, wholesale electric revenue, and mutual assistance revenue.

(c)

Includes operating revenues from affiliates totaling $2 million and $22 million for the three months ended December 31, 2022 and 2021, respectively, and $16 million and $41 million for the twelve months ended December 31, 2022 and 2021, respectively.

(d)

Includes alternative revenue programs and late payment charges.

 

PECO Statistics

Three Months Ended December 31, 2022 and 2021

 

 

Electric and Natural Gas Deliveries

 

Revenue (in millions)

 

2022

 

2021

 

% Change

 

Weather-

Normal

% Change

 

2022

 

2021

 

% Change

Electric (in GWhs)

 

 

 

 

 

 

 

 

 

 

 

 

 

Electric Deliveries and Revenues(a)

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential

3,175

 

3,061

 

3.7

%

 

(1.2

)%

 

$

488

 

$

379

 

28.8

%

Small commercial & industrial

1,812

 

1,801

 

0.6

%

 

(0.8

)%

 

 

135

 

 

110

 

22.7

%

Large commercial & industrial

3,355

 

3,376

 

(0.6

)%

 

(0.2

)%

 

 

70

 

 

60

 

16.7

%

Public authorities & electric railroads

149

 

134

 

11.2

%

 

10.9

%

 

 

7

 

 

7

 

%

Other(b)

 

 

n/a

 

 

n/a

 

 

 

69

 

 

62

 

11.3

%

Total electric revenues(c)

8,491

 

8,372

 

1.4

%

 

(0.5

)%

 

 

769

 

 

618

 

24.4

%

Other Revenues(d)

 

 

 

 

 

 

 

 

 

6

 

 

7

 

(14.3

)%

Total Electric Revenues

 

 

 

 

 

 

 

 

 

775

 

 

625

 

24.0

%

Natural Gas (in mmcfs)

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural Gas Deliveries and Revenues(e)

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential

13,895

 

11,635

 

19.4

%

 

0.6

%

 

 

177

 

 

121

 

46.3

%

Small commercial & industrial

7,211

 

6,144

 

17.4

%

 

0.6

%

 

 

61

 

 

42

 

45.2

%

Large commercial & industrial

11

 

21

 

(47.6

)%

 

8.1

%

 

 

 

 

 

n/a

 

Transportation

6,503

 

6,607

 

(1.6

)%

 

(4.6

)%

 

 

7

 

 

7

 

%

Other(f)

 

 

n/a

 

 

n/a

 

 

 

5

 

 

3

 

66.7

%

Total natural gas revenues(g)

27,620

 

24,407

 

13.2

%

 

(0.6

)%

 

 

250

 

 

173

 

44.5

%

Other Revenues(d)

 

 

 

 

 

 

 

 

 

1

 

 

 

100.0

%

Total Natural Gas Revenues

 

 

 

 

 

 

 

 

 

251

 

 

173

 

45.1

%

Total Electric and Natural Gas Revenues

 

 

 

 

 

$

1,026

 

$

798

 

28.6

%

Purchased Power and Fuel

 

 

 

 

 

 

 

 

$

442

 

$

282

 

56.7

%

 

 

 

 

 

 

 

% Change

Heating and Cooling Degree-Days

2022

 

2021

 

Normal

 

From 2021

 

From Normal

Heating Degree-Days

1,503

 

1,236

 

1,544

 

21.6

%

 

(2.7

)%

Cooling Degree-Days

18

 

69

 

30

 

(73.9

)%

 

(40.0

)%

 

Twelve Months Ended December 31, 2022 and 2021

 

 

Electric and Natural Gas Deliveries

 

Revenue (in millions)

 

2022

 

2021

 

% Change

 

Weather-

Normal

% Change

 

2022

 

2021

 

% Change

Electric (in GWhs)

 

 

 

 

 

 

 

 

 

 

 

 

 

Electric Deliveries and Revenues(a)

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential

14,379

 

14,262

 

0.8

%

 

(1.8

)%

 

$

2,026

 

$

1,704

 

18.9

%

Small commercial & industrial

7,701

 

7,597

 

1.4

%

 

0.4

%

 

 

521

 

 

422

 

23.5

%

Large commercial & industrial

14,046

 

14,003

 

0.3

%

 

%

 

 

299

 

 

243

 

23.0

%

Public authorities & electric railroads

638

 

559

 

14.1

%

 

14.1

%

 

 

30

 

 

31

 

(3.2

)%

Other(b)

 

 

n/a

 

 

n/a

 

 

 

271

 

 

229

 

18.3

%

Total electric revenues(c)

36,764

 

36,421

 

0.9

%

 

(0.4

)%

 

 

3,147

 

 

2,629

 

19.7

%

Other Revenues(d)

 

 

 

 

 

 

 

 

 

18

 

 

30

 

(40.0

)%

Total Electric Revenues

 

 

 

 

 

 

 

 

 

3,165

 

 

2,659

 

19.0

%

Natural Gas (in mmcfs)

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural Gas Deliveries and Revenues(e)

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential

42,135

 

39,580

 

6.5

%

 

3.0

%

 

 

512

 

 

372

 

37.6

%

Small commercial & industrial

23,449

 

21,361

 

9.8

%

 

6.0

%

 

 

186

 

 

136

 

36.8

%

Large commercial & industrial

31

 

34

 

(8.8

)%

 

12.3

%

 

 

 

 

 

n/a

 

Transportation

25,011

 

25,081

 

(0.3

)%

 

(1.8

)%

 

 

26

 

 

24

 

8.3

%

Other(f)

 

 

n/a

 

 

n/a

 

 

 

12

 

 

7

 

71.4

%

Total natural gas revenues(g)

90,626

 

86,056

 

5.3

%

 

2.4

%

 

 

736

 

 

539

 

36.5

%

Other Revenues(d)

 

 

 

 

 

 

 

 

 

2

 

 

 

100.0

%

Total Natural Gas Revenues

 

 

 

 

 

 

 

 

 

738

 

 

539

 

36.9

%

Total Electric and Natural Gas Revenues

 

 

 

 

 

$

3,903

 

$

3,198

 

22.0

%

Purchased Power and Fuel

 

 

 

 

 

 

 

 

$

1,535

 

$

1,081

 

42.0

%

 

 

 

 

 

 

 

% Change

Heating and Cooling Degree-Days

2022

 

2021

 

Normal

 

From 2021

 

From Normal

Heating Degree-Days

4,135

 

3,946

 

4,408

 

4.8

%

 

(6.2

)%

Cooling Degree-Days

1,743

 

1,586

 

1,443

 

9.9

%

 

20.8

%

Number of Electric Customers

2022

 

2021

 

Number of Natural Gas Customers

2022

 

2021

Residential

1,525,635

 

1,517,806

 

Residential

502,944

 

497,873

Small commercial & industrial

155,576

 

155,308

 

Small commercial & industrial

44,957

 

44,815

Large commercial & industrial

3,121

 

3,107

 

Large commercial & industrial

9

 

6

Public authorities & electric railroads

10,393

 

10,306

 

Transportation

655

 

670

Total

1,694,725

 

1,686,527

 

Total

548,565

 

543,364

__________

(a)

Reflects delivery volumes and revenues from customers purchasing electricity directly from PECO and customers purchasing electricity from a competitive electric generation supplier as all customers are assessed distribution charges. For customers purchasing electricity from PECO, revenues also reflect the cost of energy and transmission.

(b)

Includes transmission revenue from PJM, wholesale electric revenue, and mutual assistance revenue.

(c)

Includes operating revenues from affiliates totaling $2 million and $15 million for the three months ended December 31, 2022 and 2021, respectively, and $7 million and $20 million for the twelve months ended December 31, 2022 and 2021, respectively.

(d)

Includes alternative revenue programs and late payment charges.

(e)

Reflects delivery volumes and revenues from customers purchasing natural gas directly from PECO and customers purchasing natural gas from a competitive natural gas supplier as all customers are assessed distribution charges. For customers purchasing natural gas from PECO, revenue also reflects the cost of natural gas.

(f)

Includes revenues primarily from off-system sales.

(g)

Includes operating revenues from affiliates totaling less than $1 million and less than $1 million for the three months ended December 31, 2022 and 2021, respectively, and less than $1 million and $1 million for the twelve months ended December 31, 2022 and 2021, respectively.

 

BGE Statistics

Three Months Ended December 31, 2022 and 2021

 

 

Electric and Natural Gas Deliveries

 

Revenue (in millions)

 

2022

 

2021

 

% Change

 

Weather-

Normal

% Change

 

2022

 

2021

 

% Change

Electric (in GWhs)

 

 

 

 

 

 

 

 

 

 

 

 

 

Electric Deliveries and Revenues(a)

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential

3,038

 

2,862

 

6.1

%

 

(0.9

)%

 

$

406

 

 

$

330

 

23.0

%

Small commercial & industrial

655

 

641

 

2.2

%

 

(0.8

)%

 

 

88

 

 

 

65

 

35.4

%

Large commercial & industrial

3,123

 

3,155

 

(1.0

)%

 

(0.5

)%

 

 

148

 

 

 

118

 

25.4

%

Public authorities & electric railroads

49

 

55

 

(10.9

)%

 

(8.8

)%

 

 

7

 

 

 

7

 

%

Other(b)

 

 

n/a

 

 

n/a

 

 

 

101

 

 

 

102

 

(1.0

)%

Total electric revenues(c)

6,865

 

6,713

 

2.3

%

 

(0.8

)%

 

 

750

 

 

 

622

 

20.6

%

Other Revenues(d)

 

 

 

 

 

 

 

 

 

(1

)

 

 

17

 

(105.9

)%

Total Electric Revenues

 

 

 

 

 

 

 

 

 

749

 

 

 

639

 

17.2

%

Natural Gas (in mmcfs)

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural Gas Deliveries and Revenues(e)

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential

13,569

 

10,961

 

23.8

%

 

2.6

%

 

 

229

 

 

 

164

 

39.6

%

Small commercial & industrial

2,999

 

2,427

 

23.6

%

 

8.4

%

 

 

35

 

 

 

24

 

45.8

%

Large commercial & industrial

11,777

 

10,962

 

7.4

%

 

1.1

%

 

 

55

 

 

 

44

 

25.0

%

Other(f)

1,735

 

4,079

 

(57.5

)%

 

n/a

 

 

 

20

 

 

 

27

 

(25.9

)%

Total natural gas revenues(g)

30,080

 

28,429

 

5.8

%

 

2.5

%

 

 

339

 

 

 

259

 

30.9

%

Other Revenues(d)

 

 

 

 

 

 

 

 

 

(2

)

 

 

17

 

(111.8

)%

Total Natural Gas Revenues

 

 

 

 

 

 

 

 

 

337

 

 

 

276

 

22.1

%

Total Electric and Natural Gas Revenues

 

 

 

 

 

$

1,086

 

 

$

915

 

18.7

%

Purchased Power and Fuel

 

 

 

 

 

 

 

 

$

474

 

 

$

336

 

41.1

%

 

 

 

 

 

 

 

% Change

Heating and Cooling Degree-Days

2022

 

2021

 

Normal

 

From 2021

 

From Normal

Heating Degree-Days

1,595

 

1,290

 

1,646

 

23.6

%

 

(3.1

)%

Cooling Degree-Days

20

 

59

 

28

 

(66.1

)%

 

(28.6

)%

 

Twelve Months Ended December 31, 2022 and 2021

 

 

Electric and Natural Gas Deliveries

 

Revenue (in millions)

 

2022

 

2021

 

% Change

 

Weather-

Normal

% Change

 

2022

 

2021

 

% Change

Electric (in GWhs)

 

 

 

 

 

 

 

 

 

 

 

 

 

Electric Deliveries and Revenues(a)

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential

13,024

 

12,908

 

0.9

%

 

(0.6

)%

 

$

1,564

 

 

$

1,375

 

13.7

%

Small commercial & industrial

2,781

 

2,770

 

0.4

%

 

%

 

 

327

 

 

 

267

 

22.5

%

Large commercial & industrial

13,213

 

13,209

 

%

 

0.5

%

 

 

567

 

 

 

459

 

23.5

%

Public authorities & electric railroads

201

 

204

 

(1.5

)%

 

(0.5

)%

 

 

27

 

 

 

27

 

%

Other(b)

 

 

n/a

 

 

n/a

 

 

 

398

 

 

 

371

 

7.3

%

Total electric revenues(c)

29,219

 

29,091

 

0.4

%

 

(0.1

)%

 

 

2,883

 

 

 

2,499

 

15.4

%

Other Revenues(d)

 

 

 

 

 

 

 

 

 

(12

)

 

 

6

 

(300.0

)%

Total Electric Revenues

 

 

 

 

 

 

 

 

 

2,871

 

 

 

2,505