Exelon Reports First Quarter 2023 Results
Exelon Corporation (Nasdaq: EXC) today reported its financial results for the first quarter of 2023.
“Our team of 19,000 plus employees have entered this first full year of operations after the separation excited to lead the energy transformation, and it shows in our results,” said Exelon President and CEO Calvin Butler. “In addition to strong financial performance, all four of our utilities achieved best-on-record reliability. These results are a testament to our team’s hard work, smart investment, and commitment to financial and operational excellence. As we continue to execute on our financial, operational and regulatory objectives in 2023, we continue to keep our customers at the forefront of everything we do.”
“2023 is off to a strong start, delivering Adjusted (non-GAAP) Operating Earnings of $0.70 per share, $0.06 ahead of results in the first quarter of 2022, driven by increased revenues associated with the investments we are making on behalf of customers,” said Exelon Executive Vice President and CFO Jeanne Jones. “With most of our planned debt financing activity complete for the year and all but one of our planned rate cases now filed, we are well on our way to executing on the plan laid out at the beginning of the year. We reaffirm our full-year Adjusted (non-GAAP) Operating Earnings guidance range of $2.30 to $2.42 per share.”
First Quarter 2023
Exelon's GAAP Net Income from Continuing Operations for the first quarter of 2023 increased to $0.67 per share from $0.49 GAAP Net Income from Continuing Operations per share in the first quarter of 2022. Adjusted (non-GAAP) Operating Earnings for the first quarter of 2023 increased to $0.70 per share from $0.64 per share in the first quarter of 2022. For the reconciliations of GAAP Net Income from Continuing Operations to Adjusted (non-GAAP) Operating Earnings, refer to the tables beginning on page 5.
Adjusted (non-GAAP) Operating Earnings in the first quarter of 2023 primarily reflect:
Higher utility earnings primarily due to higher electric distribution formula rate earnings at ComEd from higher allowed ROE due to an increase in U.S. treasury rates and impacts of higher rate base, rate increases at PECO, BGE, and PHI, and carrying costs related to the carbon mitigation credit (CMC) regulatory assets at ComEd. This was partially offset by unfavorable weather at PECO and PHI, higher depreciation expense at PECO, higher credit loss expense at PECO, and higher interest expense at BGE. Lower costs at the Exelon holding company due to certain BSC costs that were historically allocated to Constellation Energy Generation, LLC (Generation) but are presented as part of continuing operations in Exelon’s results in the first quarter of 2022 as these costs do not qualify as expenses of the discontinued operations per the accounting rules. This was partially offset by higher interest expense.Operating Company Results1
ComEd
ComEd's first quarter of 2023 GAAP Net Income increased to $241 million from $188 million in the first quarter of 2022. ComEd's Adjusted (non-GAAP) Operating Earnings for the first quarter of 2023 increased to $251 million from $193 million in the first quarter of 2022, primarily due to increases in electric distribution formula rate earnings (reflecting higher allowed ROE due to an increase in U.S. treasury rates and the impacts of higher rate base) and carrying costs related to the CMC regulatory assets. Due to revenue decoupling, ComEd's distribution earnings are not affected by actual weather or customer usage patterns.
___________
1Exelon’s four business units include ComEd, which consists of electricity transmission and distribution operations in northern Illinois; PECO, which consists of electricity transmission and distribution operations and retail natural gas distribution operations in southeastern Pennsylvania; BGE, which consists of electricity transmission and distribution operations and retail natural gas distribution operations in central Maryland; and PHI, which consists of electricity transmission and distribution operations in the District of Columbia and portions of Maryland, Delaware, and New Jersey and retail natural gas distribution operations in northern Delaware.
PECO
PECO’s first quarter of 2023 GAAP Net Income decreased to $166 million from $206 million in the first quarter of 2022. PECO's Adjusted (non-GAAP) Operating Earnings for the first quarter of 2023 decreased to $166 million from $208 million in the first quarter of 2022, primarily due to unfavorable weather, an increase in credit loss expense and depreciation expense, partially offset by gas distribution rate increases.
BGE
BGE’s first quarter of 2023 GAAP Net Income increased to $200 million from $198 million in the first quarter of 2022. BGE's Adjusted (non-GAAP) Operating Earnings for the first quarter of 2023 decreased to $199 million from $200 million in the first quarter of 2022, primarily due to an increase in interest expense, offset by favorable impacts of the multi-year plans. Due to revenue decoupling, BGE's distribution earnings are not affected by actual weather or customer usage patterns.
PHI
PHI’s first quarter of 2023 GAAP Net Income increased to $155 million from $130 million in the first quarter of 2022. PHI’s Adjusted (non-GAAP) Operating Earnings for the first quarter of 2023 increased to $173 million from $136 million in the first quarter of 2022, primarily due to distribution and transmission rate increases, partially offset by unfavorable weather. Due to revenue decoupling, PHI's distribution earnings related to Pepco Maryland, DPL Maryland, Pepco District of Columbia, and ACE are not affected by actual weather or customer usage patterns.
Recent Developments and First Quarter Highlights
ACE New Jersey Electric Base Rate Case: On February 15, 2023, ACE filed an application with the NJBPU to increase its annual electric distribution rates by $105 million, reflecting a requested ROE of 10.50%. ACE currently expects a decision in the first quarter of 2024, but cannot predict if the NJBPU will approve the application as filed. ACE intends to put rates into effect on November 17, 2023, subject to refund. BGE Maryland Electric and Natural Gas Base Rate Case: On February 17, 2023, BGE filed an application for a three-year cumulative multi-year plan for 2024 through 2026 with the MDPSC. Inclusive of the proposed acceleration of remaining electric tax benefits in 2024 and 2025, and remaining gas tax benefits in 2024, BGE requested total electric revenue requirement increases of $85 million, $103 million, and $125 million in 2024, 2025, and 2026, respectively, and natural gas revenue requirement increases of $158 million, $77 million, and $54 million in 2024, 2025, and 2026, respectively. The electric and gas revenue requirement increases reflect a requested ROE of 10.4%. Requested revenue requirement increases will be used to recover capital investments designed to increase the resilience of the electric and gas distribution systems and support Maryland’s climate and regulatory initiatives. BGE currently expects a decision in the fourth quarter of 2023, but cannot predict if the MDPSC will approve the application as filed. The 2021 and 2022 reconciliation amounts are not included in the requested revenue requirement increase, as BGE is proposing that these amounts be recovered through the separate electric and gas riders in 2024. The 2021 reconciliation amounts are $11 million and $7 million for electric and gas, respectively, and the 2022 reconciliation amounts are $44 million and $15 million for electric and gas, respectively. Pepco District of Columbia Electric Base Rate Case: On April 13, 2023, Pepco filed an application for a three-year cumulative multi-year plan for 2024 through 2026 with the DCPSC. Pepco requested total electric revenue requirement increases of $117 million, $37 million, and $37 million in 2024, 2025, and 2026, respectively. The electric revenue requirement increases reflect a requested ROE of 10.50%. Requested revenue requirement increases will be used to recover capital investments designed to advance system-readiness and support the District of Columbia's climate and clean energy goals. Pepco currently expects a decision in the first quarter of 2024, but cannot predict if the DCPSC will approve the application as filed. ComEd Distribution Formula Rate Reconciliation: On April 21, 2023, ComEd filed its proposed Delivery Reconciliation Amount of $247 million under Rider Delivery Service Pricing Reconciliation which allows for the reconciliation of the revenue requirement in effect in the final years in which formula rates are determined and until such time as new rates are established under ComEd’s approved MRP. The 2023 filing reconciles the delivery service rates in effect in 2022 with the actual delivery service costs incurred in 2022. Final order is expected by December 2023, and the reconciliation amount will be in customer rates beginning January 1, 2024. Financing Activities: On February 21, 2023, Exelon issued $2,500 million of Notes, consisting of $1,000 million of its Notes at 5.15%, due March 15, 2028, $850 million of its Notes at 5.30%, due March 15, 2033 and $650 million of its Notes at 5.60%, due March 15, 2053. Exelon used the proceeds to repay existing indebtedness and for general corporate purposes. On March 15, 2023, Pepco issued $250 million of First Mortgage Bonds, consisting of $85 million of its First Mortgage 5.30% Bonds, due March 15, 2033, $40 million of its First Mortgage 5.40% Bonds, due March 15, 2038, and $125 million of its First Mortgage 5.57% Bonds, due March 15, 2053. Pepco used the proceeds to repay existing indebtedness and for general corporate purposes. On March 15, 2023, DPL issued $125 million of First Mortgage Bonds, consisting of $60 million of its First Mortgage 5.30% Bonds, due March 15, 2033 and $65 million of its First Mortgage 5.57% Bonds, due March 15, 2053. DPL used the proceeds to repay existing indebtedness and for general corporate purposes. On March 15, 2023, ACE issued $75 million of its First Mortgage bonds, 5.57% Series, due March 15, 2053. ACE used the proceeds to repay existing indebtedness and for general corporate purposes.GAAP/Adjusted (non-GAAP) Operating Earnings Reconciliation
Adjusted (non-GAAP) Operating Earnings for the first quarter of 2023 do not include the following items (after tax) that were included in reported GAAP Net Income from Continuing Operations:
(in millions, except per share amounts)
Earnings per
Diluted
Share
ComEd
PECO
BGE
PHI
2023 GAAP Net Income (Loss) from Continuing Operations
$
0.67
$
669
$
241
$
166
$
200
$
155
Mark-to-Market Impact of Economic Hedging Activities (net of taxes of $0)
—
(1
)
—
—
—
—
Change in Environmental Liabilities (net of taxes of $7)
0.02
18
—
—
—
18
Change in FERC Audit Liability (net of taxes of $4)
0.01
11
11
—
—
—
Separation Costs (net of taxes of $0)
—
(1
)
—
—
—
—
2023 Adjusted (non-GAAP) Operating Earnings
$
0.70
$
696
$
251
$
166
$
199
$
173
Adjusted (non-GAAP) Operating Earnings for the first quarter of 2022 do not include the following items (after tax) that were included in reported GAAP Net Income from Continuing Operations:
(in millions, except per share amounts)
Earnings per
Diluted
Share
ComEd
PECO
BGE
PHI
2022 GAAP Net Income (Loss) from Continuing Operations
$
0.49
$
481
$
188
$
206
$
198
$
130
Enterprise Resource Program (ERP) System Implementation Costs (net of taxes of $0)
—
1
—
—
—
—
Separation Costs (net of taxes of $7, $2, $1, $1, and $1, respectively)
0.02
17
5
2
2
4
Income Tax-Related Adjustments (entire amount represents tax expense)
0.14
134
—
—
—
3
2022 Adjusted (non-GAAP) Operating Earnings
$
0.64
$
634
$
193
$
208
$
200
$
136
Note:
Amounts may not sum due to rounding.
Unless otherwise noted, the income tax impact of each reconciling item between GAAP Net income (Loss) from Continuing Operations and Adjusted (non-GAAP) Operating Earnings is based on the marginal statutory federal and state income tax rates for each Registrant, taking into account whether the income or expense item is taxable or deductible, respectively, in whole or in part. For all items, the marginal statutory income tax rates for 2023 and 2022 ranged from 24.0% to 29.0%.
Webcast Information
Exelon will discuss first quarter 2023 earnings in a conference call scheduled for today at 9 a.m. Central Time (10 a.m. Eastern Time). The webcast and associated materials can be accessed at www.exeloncorp.com/investor-relations.
About Exelon
Exelon (Nasdaq: EXC) is a Fortune 200 company and the nation’s largest energy delivery company, serving more than 10 million customers through six fully regulated transmission and distribution utilities — Atlantic City Electric (ACE), Baltimore Gas and Electric (BGE), Commonwealth Edison (ComEd), Delmarva Power Light (DPL), PECO Energy Company (PECO), and Potomac Electric Power Company (Pepco). More than 19,000 Exelon employees dedicate their time and expertise to powering a cleaner and brighter future for our customers and communities through reliable, affordable and efficient energy delivery, workforce development, equity, economic development and volunteerism. Follow Exelon on Twitter @Exelon.
Non-GAAP Financial Measures
In addition to net income as determined under generally accepted accounting principles in the United States (GAAP), Exelon evaluates its operating performance using the measure of Adjusted (non-GAAP) Operating Earnings because management believes it represents earnings directly related to the ongoing operations of the business. Adjusted (non-GAAP) Operating Earnings exclude certain costs, expenses, gains and losses, and other specified items. This measure is intended to enhance an investor’s overall understanding of period over period operating results and provide an indication of Exelon’s baseline operating performance excluding items that are considered by management to be not directly related to the ongoing operations of the business. In addition, this measure is among the primary indicators management uses as a basis for evaluating performance, allocating resources, setting incentive compensation targets, and planning and forecasting of future periods. Adjusted (non-GAAP) Operating Earnings is not a presentation defined under GAAP and may not be comparable to other companies’ presentation. Exelon has provided the non-GAAP financial measure as supplemental information and in addition to the financial measures that are calculated and presented in accordance with GAAP. Adjusted (non-GAAP) Operating Earnings should not be deemed more useful than, a substitute for, or an alternative to the most comparable GAAP Net Income measures provided in this earnings release and attachments. This press release and earnings release attachments provide reconciliations of Adjusted (non-GAAP) Operating Earnings to the most directly comparable financial measures calculated and presented in accordance with GAAP, are posted on Exelon’s website: www.exeloncorp.com, and have been furnished to the Securities and Exchange Commission on Form 8-K on May 3, 2023.
Cautionary Statements Regarding Forward-Looking Information
This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to risks and uncertainties. Words such as “could,” “may,” “expects,” “anticipates,” “will,” “targets,” “goals,” “projects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “predicts,” “should,” and variations on such words, and similar expressions that reflect our current views with respect to future events and operational, economic, and financial performance, are intended to identify such forward-looking statements.
The factors that could cause actual results to differ materially from the forward-looking statements made by Exelon Corporation, Commonwealth Edison Company, PECO Energy Company, Baltimore Gas and Electric Company, Pepco Holdings LLC, Potomac Electric Power Company, Delmarva Power Light Company, and Atlantic City Electric Company (Registrants) include those factors discussed herein, as well as the items discussed in (1) the Registrants' 2022 Annual Report on Form 10-K in (a) Part I, ITEM 1A. Risk Factors, (b) Part II, ITEM 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations, and (c) Part II, ITEM 8. Financial Statements and Supplementary Data: Note 18, Commitments and Contingencies; (2) the Registrants' First Quarter 2023 Quarterly Report on Form 10-Q (to be filed on May 3, 2023) in (a) Part II, ITEM 1A. Risk Factors, (b) Part I, ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations, and (c) Part I, ITEM 1. Financial Statements: Note 12, Commitments and Contingencies; and (3) other factors discussed in filings with the SEC by the Registrants.
Investors are cautioned not to place undue reliance on these forward-looking statements, whether written or oral, which apply only as of the date of this press release. None of the Registrants undertakes any obligation to publicly release any revision to its forward-looking statements to reflect events or circumstances after the date of this press release.
Earnings Release Attachments
Table of Contents
Consolidating Statement of Operations
2
Consolidated Balance Sheets
3
Consolidated Statements of Cash Flows
5
Reconciliation of GAAP Net Income from Continuing Operations to Adjusted (non-GAAP) Operating Earnings and Analysis of Earnings
6
Statistics
ComEd
8
PECO
8
BGE
10
Pepco
11
DPL
12
ACE
13
Consolidating Statements of Operations
(unaudited)
(in millions)
ComEd
PECO
BGE
PHI
Other (a)
Three Months Ended March 31, 2023
Operating revenues
$
1,667
$
1,112
$
1,257
$
1,536
$
(9
)
$
5,563
Operating expenses
Purchased power and fuel
488
484
492
627
—
2,091
Operating and maintenance
337
270
222
309
13
1,151
Depreciation and amortization
338
98
167
241
16
860
Taxes other than income taxes
93
50
83
120
9
355
Total operating expenses
1,256
902
964
1,297
38
4,457
Operating income (loss)
411
210
293
239
(47
)
1,106
Other income and (deductions)
Interest expense, net
(117
)
(48
)
(44
)
(76
)
(127
)
(412
)
Other, net
18
8
3
26
54
109
Total other income and (deductions)
(99
)
(40
)
(41
)
(50
)
(73
)
(303
)
Income (loss) from continuing operations before Income taxes
312
170
252
189
(120
)
803
Income taxes
71
4
52
34
(27
)
134
Net income (loss) from continuing operations after income taxes
241
166
200
155
(93
)
669
Net income from discontinued operations after income taxes
—
—
—
—
—
—
Net income (loss)
241
166
200
155
(93
)
669
Net income attributable to noncontrolling interests
—
—
—
—
—
—
Net income (loss) attributable to common shareholders
$
241
$
166
$
200
$
155
$
(93
)
$
669
Three Months Ended March 31, 2022
Operating revenues
$
1,734
$
1,047
$
1,154
$
1,404
$
(12
)
$
5,327
Operating expenses
Purchased power and fuel
638
407
454
579
—
2,078
Operating and maintenance
351
247
218
299
63
1,178
Depreciation and amortization
321
92
171
218
15
817
Taxes other than income taxes
96
47
76
119
16
354
Total operating expenses
1,406
793
919
1,215
94
4,427
Operating income (loss)
328
254
235
189
(106
)
900
Other income and (deductions)
Interest expense, net
(100
)
(41
)
(35
)
(69
)
(93
)
(338
)
Other, net
12
7
7
17
94
137
Total other income and (deductions)
(88
)
(34
)
(28
)
(52
)
1
(201
)
Income (loss) from continuing operations before Income taxes
240
220
207
137
(105
)
699
Income taxes
52
14
9
7
136
218
Net income (loss) from continuing operations after income taxes
188
206
198
130
(241
)
481
Net income from discontinued operations after income taxes
—
—
—
—
117
117
Net income (loss)
188
206
198
130
(124
)
598
Net income attributable to noncontrolling interests
—
—
—
—
1
1
Net income (loss) attributable to common shareholders
$
188
$
206
$
198
$
130
$
(125
)
$
597
Change in Net income from continuing operations 2022 to 2023
$
53
$
(40
)
$
2
$
25
$
148
$
188
__________
(a)
Other primarily includes eliminating and consolidating adjustments, Exelon’s corporate operations, shared service entities, and other financing and investment activities.
Consolidated Balance Sheets
(unaudited)
(in millions)
March 31, 2023
December 31, 2022
Assets
Current assets
Cash and cash equivalents
$
522
$
407
Restricted cash and cash equivalents
381
566
Accounts receivable
Customer accounts receivable
2,493
2,544
Customer allowance for credit losses
(389
)
(327
)
Customer accounts receivable, net
2,104
2,217
Other accounts receivable
1,346
1,426
Other allowance for credit losses
(91
)
(82
)
Other accounts receivable, net
1,255
1,344
Inventories, net
Fossil fuel
70
208
Materials and supplies
582
547
Regulatory assets
2,386
1,641
Other
477
406
Total current assets
7,777
7,336
Property, plant, and equipment, net
70,117
69,076
Deferred debits and other assets
Regulatory assets
7,878
8,037
6,630
6,630
Receivable related to Regulatory Agreement Units
3,069
2,897
Investments
234
232
Other
1,220
1,141
Total deferred debits and other assets
19,031
18,937
Total assets
$
96,925
$
95,349
Liabilities and shareholders’ equity
Current liabilities
Short-term borrowings
$
1,306
$
2,586
Long-term debt due within one year
1,356
1,802
Accounts payable
2,762
3,382
Accrued expenses
1,183
1,226
Payables to affiliates
5
5
Regulatory liabilities
472
437
Mark-to-market derivative liabilities
23
8
Unamortized energy contract liabilities
9
10
Other
976
1,155
Total current liabilities
8,092
10,611
Long-term debt
38,732
35,272
Long-term debt to financing trusts
390
390
Deferred credits and other liabilities
Deferred income taxes and unamortized investment tax credits
11,483
11,250
Regulatory liabilities
9,307
9,112
Pension obligations
1,101
1,109
Non-pension postretirement benefit obligations
506
507
Asset retirement obligations
270
269
Mark-to-market derivative liabilities
77
83
Unamortized energy contract liabilities
32
35
Other
1,869
1,967
Total deferred credits and other liabilities
24,645
24,332
Total liabilities
71,859
70,605
Commitments and contingencies
Shareholders’ equity
Common stock
20,921
20,908
Treasury stock, at cost
(123
)
(123
)
Retained earnings
4,907
4,597
Accumulated other comprehensive loss, net
(639
)
(638
)
Total shareholders’ equity
25,066
24,744
Total liabilities and shareholders’ equity
$
96,925
$
95,349
Consolidated Statements of Cash Flows
(unaudited)
(in millions)
Three Months Ended March 31,
2023
2022
Cash flows from operating activities
Net income
$
669
$
598
Adjustments to reconcile net income to net cash flows provided by operating activities:
Depreciation, amortization, and accretion, including nuclear fuel and energy contract amortization
860
1,024
Gain on sales of assets and businesses
—
(10
)
Deferred income taxes and amortization of investment tax credits
113
110
Net fair value changes related to derivatives
—
(59
)
Net realized and unrealized losses on NDT funds
—
205
Net unrealized losses on equity investments
—
16
Other non-cash operating activities
(138
)
232
Changes in assets and liabilities:
Accounts receivable
106
(711
)
Inventories
102
125
Accounts payable and accrued expenses
(482
)
291
Option premiums paid, net
—
(39
)
Collateral (paid) received, net
(214
)
1,142
Income taxes
23
77
Regulatory assets and liabilities, net
(324
)
(31
)
Pension and non-pension postretirement benefit contributions
(44
)
(574
)
Other assets and liabilities
(187
)
(614
)
Net cash flows provided by operating activities
484
1,782
Cash flows from investing activities
Capital expenditures
(1,881
)
(1,922
)
Proceeds from NDT fund sales
—
488
Investment in NDT funds
—
(516
)
Collection of DPP
—
169
Proceeds from sales of assets and businesses
—
16
Other investing activities
10
(54
)
Net cash flows used in investing activities
(1,871
)
(1,819
)
Cash flows from financing activities
Changes in short-term borrowings
(1,130
)
(700
)
Proceeds from short-term borrowings with maturities greater than 90 days
—
1,150
Repayments on short-term borrowings with maturities greater than 90 days
(150
)
(350
)
Issuance of long-term debt
3,925
4,301
Retirement of long-term debt
(857
)
(6
)
Dividends paid on common stock
(358
)
(332
)
Proceeds from employee stock plans
10
9
Transfer of cash, restricted cash, and cash equivalents to Constellation
—
(2,594
)
Other financing activities
(60
)
(62
)
Net cash flows provided by financing activities
1,380
1,416
(Decrease) increase in cash, restricted cash, and cash equivalents
(7
)
1,379
Cash, restricted cash, and cash equivalents at beginning of period
1,090
1,619
Cash, restricted cash, and cash equivalents at end of period
$
1,083
$
2,998
Reconciliation of GAAP Net Income (Loss) from Continuing Operations to Adjusted (non-GAAP) Operating Earnings and Analysis of Earnings
Three Months Ended March 31, 2023 and 2022
(unaudited)
(in millions, except per share data)
Earnings
per Diluted
Share
ComEd
PECO
BGE
PHI
Other (a)
2022 GAAP Net Income (Loss) from Continuing Operations
$
0.49
$
188
$
206
$
198
$
130
$
(241
)
$
481
ERP System Implementation Costs (net of taxes of $0) (1)
—
—
—
—
—
1
1
Separation Costs (net of taxes of $2, $1, $1, $1, $1 and $7, respectively) (2)
0.02
5
2
2
4
4
17
Income Tax-Related Adjustments (entire amount represents tax expense) (3)
0.14
—
—
—
3
131
134
2022 Adjusted (non-GAAP) Operating Earnings (Loss)
$
0.64
$
193
$
208
$
200
$
136
$
(103
)
$
634
Year Over Year Effects on Adjusted (non-GAAP) Operating Earnings:
Weather
$
(0.04
)
$
—
(b)
$
(38
)
$
—
(b)
$
(6
)
(b)
$
—
$
(44
)
Load
(0.01
)
—
(b)
(4
)
—
(b)
(3
)
(b)
—
(7
)
Distribution and Transmission Rates (4)
0.13
45
(c)
26
(c)
13
(c)
44
(c)
—
128
Other Energy Delivery (5)
0.06
25
(c)
7
(c)
(1
)
(c)
28
(c)
—
59
Operating and Maintenance Expense (6)
0.01
2
(22
)
(5
)
12
21
8
Pension and Non-Pension Postretirement Benefits
—
3
2
(1
)
(4
)
(2
)
(2
)
Depreciation and Amortization Expense (7)
(0.03
)
(12
)
(5
)
4
(17
)
(2
)
(32
)
Interest Expense and Other (8)
(0.05
)
(5
)
(8
)
(11
)
(17
)
(7
)
(48
)
Share Differential (9)
(0.01
)
—
—
—
—
—
—
Total Year Over Year Effects on Adjusted (non-GAAP) Operating Earnings
$
0.06
$
58
$
(42
)
$
(1
)
$
37
$
10
$
62
2023 GAAP Net Income (Loss) from Continuing Operations
$
0.67
$
241
$
166
$
200
$
155
$
(93
)
$
669
Mark-to-Market Impact of Economic Hedging Activities (net of taxes of $0)
—
—
—
—
—
(1
)
(1
)
Change in Environmental Liabilities (net of taxes of $7)
0.02
—
—
—
18
—
18
Change in FERC Audit Liability (net of taxes of $4)
0.01
11
—
—
—
—
11
Separation Costs (net of taxes of $0) (2)
—
—
—
—
—
(1
)
(1
)
2023 Adjusted (non-GAAP) Operating Earnings (Loss)
$
0.70
$
251
$
166
$
199
$
173
$
(93
)
$
696
Note:
Amounts may not sum due to rounding.
Unless otherwise noted, the income tax impact of each reconciling item between GAAP Net income from Continuing Operations and Adjusted (non-GAAP) Operating Earnings is based on the marginal statutory federal and state income tax rates for each Registrant, taking into account whether the income or expense item is taxable or deductible, respectively, in whole or in part. For all items, the marginal statutory income tax rates for 2023 and 2022 ranged from 24.0% to 29.0%.
(a)
Other primarily includes eliminating and consolidating adjustments, Exelon’s corporate operations, shared service entities, and other financing and investment activities.
(b)
For ComEd, BGE, Pepco, DPL Maryland, and ACE, customer rates are adjusted to eliminate the impacts of weather and customer usage on distribution volumes.
(c)
For regulatory recovery mechanisms, including ComEd’s distribution formula rate and energy efficiency formula, ComEd, PECO, BGE, and PHI utilities transmission formula rates, and riders across all utilities, revenues increase and decrease i) as fully recoverable costs fluctuate (with no impact on net earnings), and ii) pursuant to changes in rate base, capital structure and ROE (which impact net earnings).
(1)
Reflects costs related to a multi-year ERP system implementation, which are recorded in Operating and maintenance expense.
(2)
Represents costs related to the separation primarily comprised of system-related costs, third-party costs paid to advisors, consultants, lawyers, and other experts assisting in the separation, and employee-related severance costs, which are recorded in Operating and maintenance expense.
(3)
In connection with the separation, Exelon recorded an income tax expense primarily due to the long-term marginal state income tax rate change, the recognition of valuation allowances against the net deferred tax assets positions for certain standalone state filing jurisdictions, and nondeductible transaction costs.
(4)
For ComEd, reflects increased electric distribution revenues due to higher allowed electric distribution ROE driven by an increase in treasury rates and higher rate base. For PECO, reflects increased revenue primarily due to distribution rate increases. For BGE, reflects increased revenue due to distribution rate increases. For PHI, reflects increased revenue primarily due to distribution and transmission rate increases.
(5)
For ComEd, reflects increased electric distribution, transmission, and energy efficiency revenues due to higher fully recoverable costs and also reflects carrying costs related to the CMC regulatory assets. For PHI, includes the regulatory asset amortization of the ACE Purchase Power Agreement termination obligation recorded in the first quarter of 2022, which is fully recoverable.
(6)
Represents Operating and maintenance expense, excluding pension and non-pension postretirement benefits. For PECO, reflects increased credit loss expense. For PHI, includes decreased storm costs. For Corporate, primarily reflects two offsetting items: 1) lower BSC costs that were historically allocated to Generation but are presented as part of continuing operations in Exelon’s results as these costs do not qualify as expenses of the discontinued operations per the accounting rules (YTD Q1 2023 includes no costs compared to one month of costs for the period prior to the separation for YTD Q1 2022) and 2) a decrease in Operating and maintenance expense with an offsetting decrease in other income for costs billed to Constellation for services provided by Exelon through the Transition Services Agreement (TSA).
(7)
Reflects ongoing capital expenditures across all utilities and higher depreciation rates effective January 2023 for ComEd. For BGE, also reflects decreased amortization for regulatory required programs. For PHI, includes the regulatory asset amortization of the ACE Purchase Power Agreement termination obligation recorded in the first quarter of 2022, which is fully recoverable in Other Energy Delivery.
(8)
For Corporate, Other primarily reflects a decrease in other income for costs billed to Constellation for services provided by Exelon through the TSA with an offsetting decrease in Operating and maintenance expense.
(9)
Reflects the impact on earnings per share due to the increase in Exelon's average diluted common shares outstanding as a result of the August 2022 common stock issuance.
ComEd Statistics
Three Months Ended March 31, 2023 and 2022
Electric Deliveries (in GWhs)
Revenue (in millions)
2023
2022
% Change
Weather - Normal % Change
2023
2022
% Change
Electric Deliveries and Revenues(a)
Residential
6,234
6,751
(7.7
)%
(1.8
)%
$
836
$
857
(2.5
)%
Small commercial industrial
7,198
7,504
(4.1
)%
(0.8
)%
361
423
(14.7
)%
Large commercial industrial
6,559
6,746
(2.8
)%
(0.6
)%
84
153
(45.1
)%
Public authorities electric railroads
227
257
(11.7
)%
(8.8
)%
10
14
(28.6
)%
Other(b)
—
—
n/a
n/a
217
239
(9.2
)%
Total electric revenues(c)
20,218
21,258
(4.9
)%
(1.2
)%
1,508
1,686
(10.6
)%
Other Revenues(d)
159
48
231.3
%
Total Electric Revenues
$
1,667
$
1,734
(3.9
)%
Purchased Power
$
488
$
638
(23.5
)%
% Change
Heating and Cooling Degree-Days
2023
2022
Normal
From 2022
From Normal
Heating Degree-Days
2,671
3,165
3,053
(15.6
)%
(12.5
)%
Number of Electric Customers
2023
2022
Residential
3,729,983
3,713,397
Small commercial industrial
391,662
390,994
Large commercial industrial
1,881
1,882
Public authorities electric railroads
4,790
4,838
Total
4,128,316
4,111,111
__________
(a)
Reflects revenues from customers purchasing electricity directly from ComEd and customers purchasing electricity from a competitive electric generation supplier, as all customers are assessed delivery charges. For customers purchasing electricity from ComEd, revenues also reflect the cost of energy and transmission.
(b)
Includes transmission revenue from PJM, wholesale electric revenue, and mutual assistance revenue.
(c)
Includes operating revenues from affiliates totaling $3 million and $6 million for the three months ended March 31, 2023 and 2022, respectively.
(d)
Includes alternative revenue programs and late payment charges.
PECO Statistics
Three Months Ended March 31, 2023 and 2022
Electric and Natural Gas Deliveries
Revenue (in millions)
2023
2022
% Change
Weather-
Normal
% Change
2023
2022
% Change
Electric (in GWhs)
Electric Deliveries and Revenues(a)
Residential
3,358
3,758
(10.6
)%
(0.1
)%
$
519
$
487
6.6
%
Small commercial industrial
1,843
1,937
(4.9
)%
0.4
%
135
111
21.6
%
Large commercial industrial
3,237
3,332
(2.9
)%
(1.2
)%
65
64
1.6
%
Public authorities electric railroads
168
182
(7.7
)%
9.3
%
8
8
—
%
Other(b)
—
—
n/a
n/a
68
62
9.7
%
Total electric revenues(c)
8,606
9,209
(6.5
)%
(0.2
)%
795
732
8.6
%
Other Revenues(d)
—
9
(100.0
)%
Total Electric Revenues
795
741
7.3
%
Natural Gas (in mmcfs)
Natural Gas Deliveries and Revenues(e)
Residential
17,190
20,837
(17.5
)%
(2.4
)%
223
218
2.3
%
Small commercial industrial
8,699
10,546
(17.5
)%
(3.4
)%
75
76
(1.3
)%
Large commercial industrial
29
10
190.0
%
21.7
%
1
—
n/a
Transportation
7,014
7,639
(8.2
)%
(5.4
)%
8
8
—
%
Other(f)
—
—
n/a
n/a
9
3
200.0
%
Total natural gas revenues(g)
32,932
39,032
(15.6
)%
(3.2
)%
316
305
3.6
%
Other Revenues(d)
1
1
100.0
%
Total Natural Gas Revenues
317
306
3.6
%
Total Electric and Natural Gas Revenues
$
1,112
$
1,047
6.2
%
Purchased Power and Fuel
$
484
$
407
18.9
%
% Change
Heating and Cooling Degree-Days
2023
2022
Normal
From 2022
From Normal
Heating Degree-Days
1,888
2,228
2,418
(15.3
)%
(21.9
)%
Cooling Degree-Days
—
1
1
(100.0
)%
(100.0
)%
Number of Electric Customers
2023
2022
Number of Natural Gas Customers
2023
2022
Residential
1,529,779
1,521,255
Residential
504,181
499,188
Small commercial industrial
155,846
155,485
Small commercial industrial
45,003
44,959
Large commercial industrial
3,118
3,102
Large commercial industrial
9
5
Public authorities electric railroads
10,401
10,342
Transportation
650
664
Total
1,699,144
1,690,184
Total
549,843
544,816
__________
(a)
Reflects delivery volumes and revenues from customers purchasing electricity directly from PECO and customers purchasing electricity from a competitive electric generation supplier as all customers are assessed distribution charges. For customers purchasing electricity from PECO, revenues also reflect the cost of energy and transmission.
(b)
Includes transmission revenue from PJM, wholesale electric revenue, and mutual assistance revenue.
(c)
Includes operating revenues from affiliates totaling $1 million and $1 million for the three months ended March 31, 2023 and 2022, respectively.
(d)
Includes alternative revenue programs and late payment charges.
(e)
Reflects delivery volumes and revenues from customers purchasing natural gas directly from PECO and customers purchasing natural gas from a competitive natural gas supplier as all customers are assessed distribution charges. For customers purchasing natural gas from PECO, revenue also reflects the cost of natural gas.
(f)
Includes revenues primarily from off-system sales.
(g)
Includes operating revenues from affiliates totaling $1 million and less than a $1 million for the three months ended March 31, 2023 and 2022, respectively.
BGE Statistics
Three Months Ended March 31, 2023 and 2022
Electric and Natural Gas Deliveries
Revenue (in millions)
2023
2022
% Change
Weather-
Normal
% Change
2023
2022
% Change
Electric (in GWhs)
Electric Deliveries and Revenues(a)
Residential
3,106
3,569
(13.0
)%
1.9
%
$
434
$
417
4.1
%
Small commercial industrial
674
736
(8.4
)%
1.4
%
92
81
13.6
%
Large commercial industrial
3,047
3,173
(4.0
)%
(0.4
)%
149
131
13.7
%
Public authorities electric railroads
55
53
3.8
%
2.9
%
7
7
—
%
Other(b)
—
—
n/a
n/a
96
97
(1.0
)%
Total electric revenues(c)
6,882
7,531
(8.6
)%
0.9
%
778
733
6.1
%
Other Revenues(d)
36
3
1,100.0
%
Total Electric Revenues
814
736
10.6
%
Natural Gas (in mmcfs)
Natural Gas Deliveries and Revenues(e)
Residential
16,787
21,118
(20.5
)%
2.7
%
278
282
(1.4
)%
Small commercial industrial
3,768
4,662
(19.2
)%
(0.9
)%
41
45
(8.9
)%
Large commercial industrial
13,214
14,743
(10.4
)%
(0.7
)%
70
65
7.7
%
Other(f)
1,608
4,460
(63.9
)%
n/a
19
35
(45.7
)%
Total natural gas revenues(g)
35,377
44,983
(21.4
)%
1.1
%
408
427
(4.4
)%
Other Revenues(d)
35
(9
)
(488.9
)%
Total Natural Gas Revenues
443
418
6.0
%
Total Electric and Natural Gas Revenues
$
1,257
$
1,154
8.9
%
Purchased Power and Fuel
$
492
$
454
8.4
%
% Change
Heating and Cooling Degree-Days
2023
2022
Normal
From 2022
From Normal
Heating Degree-Days
1,774
2,241
2,381
(20.8
)%
(25.5
)%
Number of Electric Customers
2023
2022
Number of Natural Gas Customers
2023
2022
Residential
1,207,486
1,199,272
Residential
656,583
653,397
Small commercial industrial
115,658
115,363
Small commercial industrial
38,260
38,356
Large commercial industrial
12,911
12,674
Large commercial industrial
6,261
6,193
Public authorities electric railroads
266
268
Total
1,336,321
1,327,577
Total
701,104
__________
(a)
Reflects revenues from customers purchasing electricity directly from BGE and customers purchasing electricity from a competitive electric generation supplier as all customers are assessed distribution charges. For customers purchasing electricity from BGE, revenues also reflect the cost of energy and transmission.
(b)
Includes transmission revenue from PJM, wholesale electric revenue, and mutual assistance revenue.
(c)
Includes operating revenues from affiliates totaling $2 million for the three months ended March 31, 2023 and 2022.
(d)
Includes alternative revenue programs and late payment charges.
(e)
Reflects delivery volumes and revenues from customers purchasing natural gas directly from BGE and customers purchasing natural gas from a competitive natural gas supplier as all customers are assessed distribution charges. For customers purchasing natural gas from BGE, revenue also reflects the cost of natural gas.
(f)
Includes revenues primarily from off-system sales.
(g)
Includes operating revenues from affiliates totaling $1 million and $5 million for the three months ended March 31, 2023 and 2022, respectively.
Pepco Statistics
Three Months Ended March 31, 2023 and 2022
Electric Deliveries (in GWhs)
Revenue (in millions)
2023
2022
% Change
Weather-
Normal
% Change
2023
2022
% Change
Electric Deliveries and Revenues(a)
Residential
1,963
2,287
(14.2
)%
(4.4
)%
$
283
$
275
2.9
%
Small commercial industrial
267
299
(10.7
)%
(5.5
)%
39
38
2.6
%
Large commercial industrial
3,210
3,249
(1.2
)%
1.7
%
282
253
11.5
%
Public authorities electric railroads
152
150
1.3
%
2.7
%
8
8
—
%
Other(b)
—
—
n/a
n/a
56
46
21.7
%
Total electric revenues(c)
5,592
5,985
(6.6
)%
(1.0
)%
668
620
7.7
%
Other Revenues(d)
42
(6
)
(800.0
)%
Total Electric Revenues
$
710
$
614
15.6
%
Purchased Power
$
258
$
213
21.1
%
% Change
Heating and Cooling Degree-Days
2023
2022
Normal
From 2022
From Normal
Heating Degree-Days
1,621
2,013
2,121
(19.5
)%
(23.6
)%
Cooling Degree-Days
2
6
3
(66.7
)%
(33.3
)%
Number of Electric Customers
2023
2022
Residential
859,207
846,258
Small commercial industrial
54,089
54,509
Large commercial industrial
22,858
22,620
Public authorities electric railroads
201
184
Total
936,355
923,571
__________
(a)
Reflects delivery volumes and revenues from customers purchasing electricity directly from ACE and customers purchasing electricity from a competitive electric generation supplier as all customers are assessed distribution charges. For customers purchasing electricity from ACE, revenues also reflect the cost of energy and transmission.
(b)
Includes transmission revenue from PJM, wholesale electric revenue, and mutual assistance revenue.
(c)
Includes operating revenues from affiliates totaling $1 million for both the three months ended March 31, 2023 and 2022.
(d)
Includes alternative revenue programs.
DPL Statistics
Three Months Ended March 31, 2023 and 2022
Electric and Natural Gas Deliveries
Revenue (in millions)
2023
2022
% Change
Weather -
Normal
% Change
2023
2022
% Change
Electric (in GWhs)
Electric Deliveries and Revenues(a)
Residential
1,386
1,577
(12.1
)%
(2.4
)%
$
210
$
207
1.4
%
Small commercial industrial
535
606
(11.7
)%
(8.3
)%
62
56
10.7
%
Large commercial industrial
957
1,015
(5.7
)%
(4.0
)
33
26
26.9
%
Public authorities electric railroads
11
12
(8.3
)%
(6.3
)%
4
4
—
%
Other(b)
—
—
n/a
n/a
58
56
3.6
%
Total electric revenues(c)
2,889
3,210
(10.0
)%
(4.0
)%
367
349
5.2
%
Other Revenues(d)
10
(1
)
(1,100.0
)%
Total Electric Revenues
377
348
8.3
%
Natural Gas (in mmcfs)
Natural Gas Deliveries and Revenues(e)
Residential
3,581
4,453
(19.6
)%
(6.6
)%
60
51
17.6
%
Small commercial industrial
1,652
1,983
(16.7
)%
(1.8
)%
26
21
23.8
%
Large commercial industrial
414
457
(9.4
)%
(9.5
)%
1
3
(66.7
)%
Transportation
1,900
2,207
(13.9
)%
(6.9
)%
4
4
—
%
Other(f)
—
—
n/a
n/a
6
4
50.0
%
Total natural gas revenues
7,547
9,100
(17.1
)%
(5.8
)%
97
83
16.9
%
Other Revenues(d)
—
—
n/a
Total Natural Gas Revenues
97
83
16.9
%
Total Electric and Natural Gas Revenues
$
474
$
431
10.0
%
Purchased Power and Fuel
$
221
$
189
16.9
%
Electric Service Territory
% Change
Heating and Cooling Degree-Days
2023
2022
Normal
From 2022
From Normal
Heating Degree-Days
1,875
2,264
2,407
(17.2
)%
(22.1
)%
Cooling Degree-Days
—
4
1
(100.0
)%
(100.0
)%
Natural Gas Service Territory
% Change
Heating Degree-Days
2023
2022
Normal
From 2022
From Normal
Heating Degree-Days
1,952
2,355
2,497
(17.1
)%
(21.8
)%
Number of Electric Customers
2023
2022
Number of Natural Gas Customers
2023
2022
Residential
482,979
478,009
Residential
129,791
128,695
Small commercial industrial
63,794
63,296
Small commercial industrial
10,158
10,097
Large commercial industrial
1,236
1,221
Large commercial industrial
16
17
Public authorities electric railroads
595
603
Transportation
158
159
Total
548,604
543,129
Total
140,123
138,968
__________
(a)
Reflects delivery volumes and revenues from customers purchasing electricity directly from DPL and customers purchasing electricity from a competitive electric generation supplier as all customers are assessed distribution charges. For customers purchasing electricity from DPL, revenues also reflect the cost of energy and transmission.
(b)
Includes transmission revenue from PJM, wholesale electric revenue, and mutual assistance revenue.
(c)
Includes operating revenues from affiliates totaling $2 million for the three months ended March 31, 2023 and 2022, respectively.
(d)
Includes alternative revenue programs and late payment charges.
(e)
Reflects delivery volumes and revenues from customers purchasing natural gas directly from DPL and customers purchasing natural gas from a competitive natural gas supplier as all customers are assessed distribution charges. For customers purchasing natural gas from DPL, revenue also reflects the cost of natural gas.
(f)
Includes revenues primarily from off-system sales.
ACE Statistics
Three Months Ended March 31, 2023 and 2022
Electric Deliveries (in GWhs)
Revenue (in millions)
2023
2022
% Change
Weather -
Normal
% Change
2023
2022
% Change
Electric Deliveries and Revenues(a)
Residential
760
918
(17.2
)%
(9.4
)%
$
146
$
170
(14.1
)%
Small commercial industrial
371
339
9.4
%
13.9
%
59
47
25.5
%
Large commercial industrial
789
703
12.2
%
14.3
%
63
44
43.2
%
Public authorities electric railroads
13
14
(7.1
)%
0.1
%
5
4
25.0
%
Other(b)
—
—
n/a
n/a
63
81
(22.2
)%
Total electric revenues(c)
1,933
1,974
(2.1
)%
3.1
%
336
346
(2.9
)%
Other Revenues(d)
17
3
466.7
%
Total Electric Revenues
$
353
$
349
1.1
%
Purchased Power
$
148
$
178
(16.9
)%
% Change
Heating and Cooling Degree-Days
2023
2022
Normal
From 2022
From Normal
Heating Degree-Days
2,008
2,436
2,467
(17.6
)%
(18.6
)%
Cooling Degree-Days
—
2
1
(100.0
)%
(100.0
)%
Number of Electric Customers
2023
2022
Residential
503,260
500,511
Small commercial industrial
62,230
62,124
Large commercial industrial
3,030
3,124
Public authorities electric railroads
726
724
Total
569,246
566,483
__________
(a)
Reflects delivery volumes and revenues from customers purchasing electricity directly from ACE and customers purchasing electricity from a competitive electric generation supplier as all customers are assessed distribution charges. For customers purchasing electricity from ACE, revenues also reflect the cost of energy and transmission.
(b)
Includes transmission revenue from PJM, wholesale electric revenue, and mutual assistance revenue.
(c)
Includes operating revenues from affiliates totaling $1 million for both the three months ended March 31, 2023 and 2022.
(d)
Includes alternative revenue programs.
View source version on businesswire.com: https://www.businesswire.com/news/home/20230503005366/en/