Earnings Release Highlights
- Exelon completed the separation of Constellation Energy
Corporation (Constellation), Exelon’s former power generation and
competitive energy business, becoming the nation’s premier
transmission and distribution utility company
- GAAP Net Income from Continuing Operations of $0.49 per share
and Adjusted (non-GAAP) Operating Earnings of $0.64 per share for
the first quarter of 2022; Constellation’s results have been
reclassified to discontinued operations
- Reaffirming range for full year 2022 Adjusted (non-GAAP)
Operating Earnings guidance of $2.18-$2.32 per share
- Continued strong utility operational performance, including
ComEd delivering the most reliable service for customers in the
first three months of the year for any year on record
- A settlement was approved by the Maryland Public Service
Commission (MDPSC) in Delmarva Power Maryland’s electric
distribution rate case in March
- PECO filed a gas distribution rate case with the Pennsylvania
Public Utility Commission (PAPUC) in March, seeking an increase in
base rates to support significant investments in infrastructure to
provide safe and reliable natural gas service and reduce methane
emissions
- ComEd filed its last annual distribution formula rate update
with the Illinois Commerce Commission (ICC) in April seeking an
increase in base rates for 2023 to support investments needed to
sustain record-level reliability performance and increase the
integration of renewable energy into the system
Exelon Corporation (Nasdaq: EXC) today reported its financial
results for the first quarter of 2022.
“The first quarter was a milestone for Exelon as we successfully
completed our separation of the generation business and embarked on
our path as the nation’s premier transmission and distribution
utility company,” said Exelon’s President and CEO Chris Crane. “At
the same time, our focus on the fundamentals of operational and
financial execution continued. Beyond delivering reliable and safe
energy to our over 10 million customers, we also continued to live
our core values. We awarded $2.4 million in scholarships to 24
students attending Historically Black Colleges and Universities,
and opened applications for our $36 million Racial Equity Capital
Fund to increase access to funding for small, minority-owned
businesses in under-served communities.”
“Adjusted (non-GAAP) Operating Earnings of $0.64 per share in
the first quarter was driven in part by the recovery of costs
associated with ongoing infrastructure investments to improve
reliability and resiliency, enhance service for our customers and
prepare the grid for a clean energy future,” said Exelon CFO Joe
Nigro. “Our grid modernization investments, enabled by constructive
regulatory relationships, continue to drive solid operational
results and stable earnings across our utilities. For the remainder
of the year, we will continue to deliver on our financial
commitments and reaffirm our full-year Adjusted (non-GAAP)
Operating Earnings guidance range of $2.18 to $2.32 per share.”
First Quarter 2022
Exelon's GAAP Net Income from Continuing Operations for the
first quarter of 2022 decreased to $0.49 per share from $0.53 GAAP
Net Income from Continuing Operations per share in the first
quarter of 2021. Adjusted (non-GAAP) Operating Earnings for the
first quarter of 2022 increased to $0.64 per share from $0.55 per
share in the first quarter of 2021. For the reconciliations of GAAP
Net Income from Continuing Operations to Adjusted (non-GAAP)
Operating Earnings, refer to the tables beginning on page 4.
Adjusted (non-GAAP) Operating Earnings in the first quarter of
2022 primarily reflect:
- Higher utility earnings primarily due to higher electric
distribution earnings at ComEd from higher rate base and higher
allowed electric distribution ROE due to an increase in treasury
rates and rate increases at PECO, BGE, and PHI, partially offset by
higher depreciation expense at BGE and PHI.
- Higher earnings at the Exelon holding company due to certain
BSC costs that were historically allocated to Constellation Energy
Generation, LLC (Generation) but are presented as part of
continuing operations in Exelon’s results as these costs do not
qualify as expenses of the discontinued operations per the
accounting rules; one month of costs included in the first quarter
of 2022 for the period prior to separation compared to three months
of costs included in the first quarter of 2021.
Operating Company Results1
ComEd
ComEd's first quarter of 2022 GAAP Net Income decreased to $188
million from $197 million in the first quarter of 2021. ComEd's
Adjusted (non-GAAP) Operating Earnings for the first quarter of
2022 decreased to $193 million from $198 million in the first
quarter of 2021, primarily due to the voluntary customer refund
related to the ICC investigation of matters identified in the
Deferred Prosecution Agreement, partially offset by increases in
electric distribution formula rate earnings (reflecting the impacts
of higher rate base and higher allowed electric distribution ROE
due to an increase in treasury rates). Due to revenue decoupling,
ComEd's distribution earnings are not affected by actual weather or
customer usage patterns.
PECO
PECO’s first quarter of 2022 GAAP Net Income increased to $206
million from $167 million in the first quarter of 2021. PECO's
Adjusted (non-GAAP) Operating Earnings for the first quarter of
2022 increased to $208 million from $170 million in the first
quarter of 2021, primarily due to distribution rate increases.
___________
1Exelon’s four business units include
ComEd, which consists of electricity transmission and distribution
operations in northern Illinois; PECO, which consists of
electricity transmission and distribution operations and retail
natural gas distribution operations in southeastern Pennsylvania;
BGE, which consists of electricity transmission and distribution
operations and retail natural gas distribution operations in
central Maryland; and PHI, which consists of electricity
transmission and distribution operations in the District of
Columbia and portions of Maryland, Delaware, and New Jersey and
retail natural gas distribution operations in northern
Delaware.
BGE
BGE’s first quarter of 2022 GAAP Net Income decreased to $198
million from $209 million in the first quarter of 2021. BGE's
Adjusted (non-GAAP) Operating Earnings for the first quarter of
2022 decreased to $200 million from $211 million in the first
quarter of 2021, primarily due an increase in depreciation and
various expenses, partially 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 2022 GAAP Net Income increased to $130
million from $128 million in the first quarter of 2021. PHI’s
Adjusted (non-GAAP) Operating Earnings for the first quarter of
2022 increased to $136 million from $130 million in the first
quarter of 2021, primarily due to distribution and transmission
rate increases, partially offset by an increase in storm costs and
depreciation expense. Due to revenue decoupling, PHI's distribution
earnings related to Pepco Maryland, DPL Maryland, Pepco District of
Columbia, and ACE are not affected by actual weather or customer
usage patterns.
Recent Developments and First Quarter Highlights
- ComEd Distribution Formula Rate: On April 15, 2022,
ComEd filed its annual distribution formula rate update with the
ICC. The ICC approval is due by December 2022 and the rates will
take effect in January 2023. The filing request includes 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
average monthly 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
average monthly yields for 30-year treasury bonds plus 580 basis
points less a performance metrics penalty of 7 basis points. This
is ComEd's last performance-based electric distribution formula
rate update filing, which sunsets at the end of 2022.
- PECO Pennsylvania Natural Gas Distribution Rate Case: On
March 31, 2022, PECO filed an application with the PAPUC to
increase its annual natural gas rates by $82 million, reflecting an
ROE of 10.95%. PECO currently expects a decision in the fourth
quarter of 2022 but cannot predict if the PAPUC will approve the
application as filed.
- DPL Maryland Electric Base Rate Case: On March 2, 2022,
the MDPSC issued an order approving a $13 million increase in DPL's
annual electric distribution revenues, reflecting an ROE of 9.60%.
The rates were effective on March 2, 2022.
- Financing Activities:
- On March 7, 2022, Exelon Corporate issued $2,000 million of
notes, consisting of $650 million of its 2.75% notes due March 15,
2027, $650 million of its 3.35% notes due March 15, 2032, and $700
million of its 4.10% notes due March 15, 2052. Exelon used the
proceeds to repay existing indebtedness and for general corporate
purposes.
- On March 15, 2022, ComEd issued $750 million of First Mortgage
Bonds, consisting of $300 million of its First Mortgage 3.15%
Bonds, Series 132, due March 15, 2032 and $450 million of its First
Mortgage 3.85% Bonds, Series 133, due March 15, 2052. ComEd used
the proceeds to repay a portion of outstanding commercial paper
obligations and to fund other general corporate purposes.
- On March 24, 2022, Pepco issued $400 million of its First
Mortgage Bonds, 3.97% Series due March 24, 2052. Pepco used the
proceeds to repay existing indebtedness and for general corporate
purposes.
GAAP/Adjusted (non-GAAP) Operating Earnings
Reconciliation
Adjusted (non-GAAP) Operating Earnings for the 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)
Exelon
Earnings per
Diluted
Share
Exelon
ComEd
PECO
BGE
PHI
2022 GAAP Net Income (Loss) from
Continuing Operations
$
0.49
$
481
$
188
$
206
$
198
$
130
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
Adjusted (non-GAAP) Operating Earnings for the first 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
$
0.53
$
525
$
197
$
167
$
209
$
128
Mark-to-Market Impact of Economic Hedging
Activities (net of taxes of $1)
—
(1
)
—
—
—
—
COVID-19 Direct Costs (net of taxes of $1,
$0, and $1, respectively)
—
2
—
1
1
—
Acquisition Related Costs (net of taxes of
$2)
0.01
6
—
—
—
—
ERP System Implementation Costs (net of
taxes of $2, $0, $0, and $0, respectively)
0.01
5
—
1
1
1
Separation Costs (net of taxes of $1, $0,
$0, and $0, respectively)
0.01
5
1
1
—
1
2021 Adjusted (non-GAAP) Operating
Earnings
$
0.55
$
542
$
198
$
170
$
211
$
130
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 first 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 is a Fortune 200 company and the nation’s largest utility
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
supporting our 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 9, 2022.
Cautionary Statements Regarding Forward-Looking
Information
This press release contains certain forward-looking statements
within the meaning of the Private Securities Litigation Reform Act
of 1995 that are subject to risks and uncertainties. Words such as
“could,” “may,” “expects,” “anticipates,” “will,” “targets,”
“goals,” “projects,” “intends,” “plans,” “believes,” “seeks,”
“estimates,” “predicts,” 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 in (a) Part I, ITEM 1A. Risk Factors,
(b) Part II, ITEM 7. Management’s Discussion and Analysis of
Financial Condition and Results of Operations, and (c) Part II,
ITEM 8. Financial Statements and Supplementary Data: Note 19,
Commitments and Contingencies; (2) the Registrants' First Quarter
2022 Quarterly Report on Form 10-Q (to be filed on May 9, 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 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
9
BGE
10
Pepco
11
DPL
12
ACE
13
Consolidating Statements of
Operations
(unaudited)
(in millions)
ComEd
PECO
BGE
PHI
Other (a)
Exelon
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 from continuing operations
before income taxes
240
220
207
137
(105
)
699
Income taxes
52
14
9
7
136
218
Net income from continuing operations
after income taxes
188
206
198
130
(241
)
481
Net income (loss) 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
Three Months Ended March 31,
2021
Operating revenues
$
1,535
$
889
$
974
$
1,244
$
(10
)
$
4,632
Operating expenses
Purchased power and fuel
527
316
331
479
(2
)
1,651
Operating and maintenance
316
234
197
256
80
1,083
Depreciation and amortization
292
86
152
210
17
757
Taxes other than income taxes
75
43
72
113
14
317
Total operating expenses
1,210
679
752
1,058
109
3,808
Operating income (loss)
325
210
222
186
(119
)
824
Other income and (deductions)
Interest expense, net
(96
)
(38
)
(34
)
(67
)
(83
)
(318
)
Other, net
7
5
8
17
21
58
Total other income and
(deductions)
(89
)
(33
)
(26
)
(50
)
(62
)
(260
)
Income from continuing operations
before income taxes
236
177
196
136
(181
)
564
Income taxes
39
10
(13
)
8
(5
)
39
Net income from continuing operations
after income taxes
197
167
209
128
(176
)
525
Net income (loss) from discontinued
operations after income taxes
—
—
—
—
(789
)
(789
)
Net income (loss)
197
167
209
128
(965
)
(264
)
Net income attributable to
noncontrolling interests
—
—
—
—
25
25
Net income (loss) attributable to
common shareholders
$
197
$
167
$
209
$
128
$
(990
)
$
(289
)
Change in Net income from continuing
operations 2021 to 2022
$
(9
)
$
39
$
(11
)
$
2
$
(65
)
$
(44
)
__________
(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)
March 31, 2022
December 31, 2021
Assets
Current assets
Cash and cash equivalents
$
2,476
$
672
Restricted cash and cash equivalents
430
321
Accounts receivable
Customer accounts receivable
2,365
2,189
Customer allowance for credit losses
(389
)
(320
)
Customer accounts receivable, net
1,976
1,869
Other accounts receivable
1,148
1,068
Other allowance for credit losses
(81
)
(72
)
Other accounts receivable, net
1,067
996
Inventories, net
Fossil fuel and emission allowances
39
105
Materials and supplies
473
476
Regulatory assets
1,221
1,296
Other
463
387
Current assets of discontinued
operations
—
7,835
Total current assets
8,145
13,957
Property, plant, and equipment,
net
65,465
64,558
Deferred debits and other
assets
Regulatory assets
8,200
8,224
Investments
244
250
Goodwill
6,630
6,630
Receivable related to Regulatory Agreement
Units
2,969
—
Other
1,045
885
Property, plant, and equipment, deferred
debits, and other assets of discontinued operations
—
38,509
Total deferred debits and other
assets
19,088
54,498
Total assets
$
92,698
$
133,013
Liabilities and
shareholders’ equity
Current liabilities
Short-term borrowings
$
1,900
$
1,248
Long-term debt due within one year
2,154
2,153
Accounts payable
2,175
2,379
Accrued expenses
1,029
1,137
Payables to affiliates
6
5
Regulatory liabilities
394
376
Mark-to-market derivative liabilities
—
18
Unamortized energy contract
liabilities
13
89
Other
964
766
Current liabilities of discontinued
operations
—
7,940
Total current liabilities
8,635
16,111
Long-term debt
35,008
30,749
Long-term debt to financing
trusts
390
390
Deferred credits and other
liabilities
Deferred income taxes and unamortized
investment tax credits
11,089
10,611
Asset retirement obligations
273
271
Pension obligations
1,447
2,051
Non-pension postretirement benefit
obligations
800
811
Regulatory liabilities
9,192
9,628
Mark-to-market derivative liabilities
144
201
Unamortized energy contract
liabilities
42
146
Other
2,187
1,573
Long-term debt, deferred credits, and
other liabilities of discontinued operations
—
25,676
Total deferred credits and other
liabilities
25,174
50,968
Total liabilities
69,207
98,218
Commitments and contingencies
Shareholders’ equity
Common stock
20,299
20,324
Treasury stock, at cost
(123
)
(123
)
Retained earnings
4,028
16,942
Accumulated other comprehensive loss,
net
(713
)
(2,750
)
Total shareholders’ equity
23,491
34,393
Noncontrolling interests
—
402
Total equity
23,491
34,795
Total liabilities and shareholders’
equity
$
92,698
$
133,013
Exelon
Consolidated Statements of
Cash Flows
(unaudited)
(in millions)
Three Months Ended March
31,
2022
2021
Cash flows from operating
activities
Net income
$
598
$
(264
)
Adjustments to reconcile net income to net
cash flows provided by operating activities:
Depreciation, amortization, and accretion,
including nuclear fuel and energy contract amortization
1,024
2,104
Asset impairments
—
1
Gain on sales of assets and businesses
(10
)
(71
)
Deferred income taxes and amortization of
investment tax credits
110
(142
)
Net fair value changes related to
derivatives
(59
)
(178
)
Net realized and unrealized losses (gains)
on NDT funds
205
(118
)
Net unrealized losses on equity
investments
16
23
Other non-cash operating activities
232
(170
)
Changes in assets and liabilities:
Accounts receivable
(711
)
(372
)
Inventories
125
77
Accounts payable and accrued expenses
291
(176
)
Option premiums (paid) received, net
(39
)
16
Collateral received, net
1,142
273
Income taxes
77
113
Pension and non-pension postretirement
benefit contributions
(574
)
(537
)
Other assets and liabilities
(645
)
(1,840
)
Net cash flows provided by (used in)
operating activities
1,782
(1,261
)
Cash flows from investing
activities
Capital expenditures
(1,922
)
(2,140
)
Proceeds from NDT fund sales
488
2,908
Investment in NDT funds
(516
)
(2,939
)
Collection of DPP
169
1,574
Proceeds from sales of assets and
businesses
16
680
Other investing activities
(54
)
12
Net cash flows (used in) provided by
investing activities
(1,819
)
95
Cash flows from financing
activities
Changes in short-term borrowings
(700
)
597
Proceeds from short-term borrowings with
maturities greater than 90 days
1,150
500
Repayments on short-term borrowings with
maturities greater than 90 days
(350
)
—
Issuance of long-term debt
4,301
1,705
Retirement of long-term debt
(6
)
(79
)
Dividends paid on common stock
(332
)
(374
)
Proceeds from employee stock plans
9
31
Transfer of cash, restricted cash, and
cash equivalents to Constellation
(2,594
)
—
Other financing activities
(62
)
(46
)
Net cash flows provided by financing
activities
1,416
2,334
Increase in cash, restricted cash, and
cash equivalents
1,379
1,168
Cash, restricted cash, and cash
equivalents at beginning of period
1,619
1,166
Cash, restricted cash, and cash
equivalents at end of period
$
2,998
$
2,334
Exelon Reconciliation of GAAP
Net Income (Loss) from Continuing Operations to Adjusted (non-GAAP)
Operating Earnings and Analysis of Earnings
Three Months Ended March 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
$
0.53
$
197
$
167
$
209
$
128
$
(176
)
$
525
Mark-to-Market Impact of Economic Hedging
Activities (net of taxes of $1)
—
—
—
—
—
(1
)
(1
)
COVID-19 Direct Costs (net of taxes of $1,
$0, and $1, respectively) (1)
—
—
1
1
—
—
2
Acquisition Related Costs (net of taxes of
$2) (2)
0.01
—
—
—
—
6
6
ERP System Implementation Costs (net of
taxes of $0, $0, $0, $1, and $2, respectively) (3)
0.01
—
1
1
1
2
5
Separation Costs (net of taxes of $0, $0,
$0, $1, and $1, respectively) (4)
0.01
1
1
—
1
2
5
2021 Adjusted (non-GAAP) Operating
Earnings (Loss)
$
0.55
$
198
$
170
$
211
$
130
$
(167
)
$
542
Year Over Year Effects on Adjusted
(non-GAAP) Operating Earnings:
Weather
$
(0.01
)
$
—
(b)
$
(6
)
$
—
(b)
$
1
(b)
$
—
$
(5
)
Load
0.02
—
(b)
10
—
(b)
5
(b)
—
15
Distribution and Transmission Rates
(6)
0.09
13
(c)
36
(c)
6
(c)
30
(c)
—
85
Other Energy Delivery (7)
0.08
50
(c)
8
(c)
20
(c)
5
(c)
—
83
Operating and Maintenance Expense (8)
(0.08
)
(25
)
(11
)
(17
)
(30
)
—
(83
)
Pension and Non-Pension Postretirement
Benefits
0.01
5
1
2
1
3
12
Depreciation and Amortization Expense
(9)
(0.04
)
(21
)
(4
)
(14
)
(6
)
2
(43
)
Other (10)
0.02
(27
)
4
(8
)
—
59
28
Total Year Over Year Effects on
Adjusted (non-GAAP) Operating Earnings
$
0.09
$
(5
)
$
38
$
(11
)
$
6
$
64
$
92
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) (3)
—
—
—
—
—
1
1
Separation Costs (net of taxes of $2, $1,
$1, $1, $1, and $7, respectively) (4)
0.02
5
2
2
4
4
17
Income Tax-Related Adjustments (entire
amount represents tax expense) (5)
0.14
—
—
—
3
131
134
2022 Adjusted (non-GAAP) Operating
Earnings (Loss)
$
0.64
$
193
$
208
$
200
$
136
$
(103
)
$
634
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 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.
(6)
For ComEd, reflects increased electric
distribution revenues due to higher rate base and higher allowed
electric distribution ROE driven by an increase in treasury 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 and transmission
rate increases.
(7)
For ComEd, reflects increased electric
distribution, transmission, and energy efficiency revenues due to
higher fully recoverable costs.
(8)
Represents Operating and maintenance
expense, excluding pension and non-pension postretirement benefits.
For ComEd, primarily reflects the voluntary customer refund related
to the ICC investigation of matters identified in the Deferred
Prosecution Agreement. For BGE, reflects higher credit loss
expense. For PHI, includes increased 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 (Q1 2022 includes one month of costs for the
period prior to the separation compared to three months of costs
included in Q1 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).
(9)
Reflects ongoing capital expenditures
across all utilities. For ComEd, also reflects increased
amortization of deferred energy efficiency costs.
(10)
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.
ComEd Statistics
Three
Months Ended March 31, 2022 and 2021
Electric Deliveries (in
GWhs)
Revenue (in millions)
2022
2021
% Change
Weather - Normal %
Change
2022
2021
% Change
Rate-Regulated Deliveries and
Revenues(a)
Residential
6,751
6,685
1.0
%
(1.2
) %
$
857
$
741
15.7
%
Small commercial & industrial
7,504
7,266
3.3
%
2.3
%
423
367
15.3
%
Large commercial & industrial
6,746
6,479
4.1
%
3.6
%
153
134
14.2
%
Public authorities & electric
railroads
257
267
(3.7
) %
(3.8
) %
14
11
27.3
%
Other(b)
—
—
n/a
n/a
239
220
8.6
%
Total rate-regulated electric
revenues(c)
21,258
20,697
2.7
%
1.5
%
1,686
1,473
14.5
%
Other Rate-Regulated
Revenues(d)
48
62
(22.6
) %
Total Electric Revenues
$
1,734
$
1,535
13.0
%
Purchased Power
$
638
$
527
21.1
%
% Change
Heating and Cooling Degree-Days
2022
2021
Normal
From 2021
From Normal
Heating Degree-Days
3,165
2,989
3,085
5.9
%
2.6
%
Number of Electric Customers
2022
2021
Residential
3,713,397
3,696,208
Small commercial & industrial
390,994
388,483
Large commercial & industrial
1,882
1,863
Public authorities & electric
railroads
4,838
4,876
Total
4,111,111
4,091,430
__________
(a)
Reflects revenues from customers
purchasing electricity directly from ComEd and customers purchasing
electricity from a competitive electric generation supplier, as all
customers are assessed delivery charges. For customers purchasing
electricity from ComEd, revenues also reflect the cost of energy
and transmission.
(b)
Includes transmission revenue from PJM,
wholesale electric revenue, and mutual assistance revenue.
(c)
Includes operating revenues from
affiliates totaling $6 million for both the three months ended
March 31, 2022 and 2021.
(d)
Includes alternative revenue programs and
late payment charges.
PECO Statistics
Three
Months Ended March 31, 2022 and 2021
Electric and Natural Gas
Deliveries
Revenue (in millions)
2022
2021
% Change
Weather-
Normal
% Change
2022
2021
% Change
Electric (in GWhs)
Rate-Regulated Electric Deliveries and
Revenues(a)
Residential
3,758
3,767
(0.2
) %
1.1
%
$
487
$
433
12.5
%
Small commercial & industrial
1,937
1,881
3.0
%
3.4
%
111
100
11.0
%
Large commercial & industrial
3,332
3,272
1.8
%
1.9
%
64
57
12.3
%
Public authorities & electric
railroads
182
149
22.1
%
22.4
%
8
9
(11.1
) %
Other(b)
—
—
n/a
n/a
62
52
19.2
%
Total rate-regulated electric
revenues(c)
9,209
9,069
1.5
%
2.2
%
732
651
12.4
%
Other Rate-Regulated
Revenues(d)
9
10
(10.0
) %
Total Electric Revenues
741
661
12.1
%
Natural Gas (in mmcfs)
Rate-Regulated Natural Gas Deliveries
and Revenues(e)
Residential
20,837
20,674
0.8
%
4.3
%
218
160
36.3
%
Small commercial & industrial
10,546
10,170
3.7
%
5.8
%
76
59
28.8
%
Large commercial & industrial
10
7
42.9
%
10.2
%
—
—
N/A
Transportation
7,639
7,650
(0.1
) %
0.7
%
8
7
14.3
%
Other(f)
—
—
n/a
n/a
3
2
50.0
%
Total rate-regulated natural gas
revenues(g)
39,032
38,501
1.4
%
4.0
%
305
228
33.8
%
Other Rate-Regulated
Revenues(d)
1
—
100.0
%
Total Natural Gas Revenues
306
228
34.2
%
Total Electric and Natural Gas
Revenues
$
1,047
$
889
17.8
%
Purchased Power and Fuel
$
407
$
316
28.8
%
% Change
Heating and Cooling Degree-Days
2022
2021
Normal
From 2021
From Normal
Heating Degree-Days
2,228
2,302
2,416
(3.2
) %
(7.8
) %
Cooling Degree-Days
1
5
1
(80.0
) %
—
%
Number of Electric Customers
2022
2021
Number of Natural Gas Customers
2022
2021
Residential
1,521,255
1,512,255
Residential
499,188
493,857
Small commercial & industrial
155,485
154,637
Small commercial & industrial
44,959
44,604
Large commercial & industrial
3,102
3,109
Large commercial & industrial
5
5
Public authorities & electric
railroads
10,342
10,237
Transportation
664
685
Total
1,690,184
1,680,238
Total
544,816
539,151
__________
(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 for both the three months ended
March 31, 2022 and 2021
(d)
Includes alternative revenue programs and
late payment charges.
(e)
Reflects delivery volumes and revenues
from customers purchasing natural gas directly from PECO and
customers purchasing natural gas from a competitive natural gas
supplier as all customers are assessed distribution charges. For
customers purchasing natural gas from PECO, revenue also reflects
the cost of natural gas.
(f)
Includes revenues primarily from
off-system sales.
(g)
Includes operating revenues from
affiliates totaling less than $1 million for both the three months
ended March 31, 2022 and 2021.
BGE Statistics
Three
Months Ended March 31, 2022 and 2021
Electric and Natural Gas
Deliveries
Revenue (in millions)
2022
2021
% Change
Weather-
Normal
% Change
2022
2021
% Change
Electric (in GWhs)
Rate-Regulated Electric Deliveries and
Revenues(a)
Residential
3,569
3,538
0.9
%
(1.3
) %
$
417
$
362
15.2
%
Small commercial & industrial
736
723
1.8
%
0.9
%
81
69
17.4
%
Large commercial & industrial
3,173
3,109
2.1
%
2.0
%
131
105
24.8
%
Public authorities & electric
railroads
53
48
10.4
%
7.4
%
7
7
—
%
Other(b)
—
—
n/a
n/a
97
77
26.0
%
Total rate-regulated electric
revenues(c)
7,531
7,418
1.5
%
0.3
%
733
620
18.2
%
Other Rate-Regulated
Revenues(d)
3
12
(75.0
) %
Total Electric Revenues
736
632
16.5
%
Natural Gas (in mmcfs)
Rate-Regulated Natural Gas Deliveries
and Revenues(e)
Residential
21,118
18,451
14.5
%
10.6
%
282
216
30.6
%
Small commercial & industrial
4,662
4,019
16.0
%
10.3
%
45
35
28.6
%
Large commercial & industrial
14,743
14,039
5.0
%
4.0
%
65
54
20.4
%
Other(f)
4,460
7,610
(41.4
) %
n/a
35
31
12.9
%
Total rate-regulated natural gas
revenues(g)
44,983
44,119
2.0
%
8.1
%
427
336
27.1
%
Other Rate-Regulated
Revenues(d)
(9
)
6
(250.0
) %
Total Natural Gas Revenues
418
342
22.2
%
Total Electric and Natural Gas
Revenues
$
1,154
$
974
18.5
%
Purchased Power and Fuel
$
454
$
331
37.2
%
% Change
Heating and Cooling Degree-Days
2022
2021
Normal
From 2021
From Normal
Heating Degree-Days
2,241
2,197
2,388
2.0
%
(6.2
) %
Number of Electric Customers
2022
2021
Number of Natural Gas Customers
2022
2021
Residential
1,199,272
1,192,470
Residential
653,397
648,824
Small commercial & industrial
115,363
114,819
Small commercial & industrial
38,356
38,318
Large commercial & industrial
12,674
12,505
Large commercial & industrial
6,193
6,120
Public authorities & electric
railroads
268
266
Total
697,946
693,262
Total
1,327,577
1,320,060
__________
(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,
2022 and 2021.
(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 $5 million and $4 million for the three months
ended March 31, 2022 and 2021, respectively.
Pepco Statistics
Three
Months Ended March 31, 2022 and 2021
Electric Deliveries (in
GWhs)
Revenue (in millions)
2022
2021
% Change
Weather-
Normal
% Change
2022
2021
% Change
Rate-Regulated Deliveries and
Revenues(a)
Residential
2,287
2,219
3.1
%
2.9
%
$
275
$
253
8.7
%
Small commercial & industrial
299
298
0.3
%
(0.4
) %
38
33
15.2
%
Large commercial & industrial
3,249
3,054
6.4
%
5.6
%
253
184
37.5
%
Public authorities & electric
railroads
150
124
21.0
%
21.7
%
8
6
33.3
%
Other(b)
—
—
n/a
n/a
46
51
(9.8
) %
Total rate-regulated electric
revenues(c)
5,985
5,695
5.1
%
4.6
%
620
527
17.6
%
Other Rate-Regulated
Revenues(d)
(6
)
26
(123.1
) %
Total Electric Revenues
$
614
$
553
11.0
%
Purchased Power
$
213
$
166
28.3
%
% Change
Heating and Cooling Degree-Days
2022
2021
Normal
From 2021
From Normal
Heating Degree-Days
2,013
2,012
2,113
—
%
(4.7
) %
Cooling Degree-Days
6
7
3
(14.3
) %
100.0
%
Number of Electric Customers
2022
2021
Residential
846,258
835,415
Small commercial & industrial
54,509
53,738
Large commercial & industrial
22,620
22,492
Public authorities & electric
railroads
184
174
Total
923,571
911,819
__________
(a)
Reflects revenues from customers
purchasing electricity directly from Pepco and customers purchasing
electricity from a competitive electric generation supplier as all
customers are assessed distribution charges. For customers
purchasing electricity from Pepco, revenues also reflect the cost
of energy and transmission.
(b)
Includes transmission revenue from PJM,
wholesale electric revenue, and mutual assistance revenue.
(c)
Includes operating revenues from
affiliates totaling $1 million for both the three months ended
March 31, 2022 and 2021.
(d)
Includes alternative revenue programs and
late payment charge revenues.
DPL Statistics
Three
Months Ended March 31, 2022 and 2021
Electric and Natural Gas
Deliveries
Revenue (in millions)
2022
2021
% Change
Weather -
Normal
% Change
2022
2021
% Change
Electric (in GWhs)
Rate-Regulated Electric Deliveries and
Revenues(a)
Residential
1,577
1,520
3.8
%
2.6
%
$
207
$
190
8.9
%
Small commercial & industrial
606
559
8.4
%
7.9
%
56
46
21.7
%
Large commercial & industrial
1,015
919
10.4
%
10.2
%
26
21
23.8
%
Public authorities & electric
railroads
12
12
—
%
5.2
%
4
4
—
%
Other(b)
—
—
n/a
n/a
56
41
36.6
%
Total rate-regulated electric
revenues(c)
3,210
3,010
6.6
%
5.9
%
349
302
15.6
%
Other Rate-Regulated
Revenues(d)
(1
)
9
(111.1
) %
Total Electric Revenues
348
311
11.9
%
Natural Gas (in mmcfs)
Rate-Regulated Gas Deliveries and
Revenues(e)
Residential
4,453
4,394
1.3
%
0.3
%
51
46
10.9
%
Small commercial & industrial
1,983
1,868
6.2
%
6.0
%
21
18
16.7
%
Large commercial & industrial
457
457
—
%
0.1
%
3
2
50.0
%
Transportation
2,207
2,224
(0.8
) %
(0.7
) %
4
4
—
%
Other(g)
—
—
n/a
n/a
4
1
300.0
%
Total rate-regulated natural gas
revenues
9,100
8,943
1.8
%
1.3
%
83
71
16.9
%
Other Rate-Regulated
Revenues(f)
—
—
n/a
Total Natural Gas Revenues
83
71
16.9
%
Total Electric and Natural Gas
Revenues
$
431
$
382
12.8
%
Purchased Power and Fuel
$
189
$
156
21.2
%
Electric Service Territory
% Change
Heating and Cooling Degree-Days
2022
2021
Normal
From 2021
From Normal
Heating Degree-Days
2,264
2,269
2,402
(0.2
) %
(5.7
) %
Cooling Degree-Days
4
5
1
(20.0
) %
300.0
%
Natural Gas Service Territory
% Change
Heating Degree-Days
2022
2021
Normal
From 2021
From Normal
Heating Degree-Days
2,355
2,358
2,500
(0.1
) %
(5.8
) %
Number of Electric Customers
2022
2021
Number of Natural Gas Customers
2022
2021
Residential
478,009
473,917
Residential
128,695
127,522
Small commercial & industrial
63,296
62,647
Small commercial & industrial
10,097
10,043
Large commercial & industrial
1,221
1,208
Large commercial & industrial
17
19
Public authorities & electric
railroads
603
608
Transportation
159
160
Total
543,129
538,380
Total
138,968
137,744
__________
(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 both the three months ended
March 31, 2022 and 2021.
(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, 2022 and 2021
Electric Deliveries (in
GWhs)
Revenue (in millions)
2022
2021
% Change
Weather -
Normal
% Change
2022
2021
% Change
Rate-Regulated Deliveries and
Revenues(a)
Residential
918
928
(1.1
) %
(2.3
) %
$
170
$
162
4.9
%
Small commercial & industrial
339
305
11.1
%
9.7
%
47
39
20.5
%
Large commercial & industrial
703
716
(1.8
) %
(2.4
) %
44
43
2.3
%
Public authorities & electric
railroads
14
13
7.7
%
6.2
%
4
3
33.3
%
Other(b)
—
—
n/a
n/a
81
52
55.8
%
Total rate-regulated electric
revenues(c)
1,974
1,962
0.6
%
(0.4
) %
346
299
15.7
%
Other Rate-Regulated
Revenues(d)
3
11
(72.7
) %
Total Electric Revenues
$
349
$
310
12.6
%
Purchased Power
$
178
$
157
13.4
%
% Change
Heating and Cooling Degree-Days
2022
2021
Normal
From 2021
From Normal
Heating Degree-Days
2,436
2,348
2,454
3.7
%
(0.7
) %
Cooling Degree-Days
2
4
1
(50.0
) %
100.0
%
Number of Electric Customers
2022
2021
Residential
500,511
498,396
Small commercial & industrial
62,124
61,771
Large commercial & industrial
3,124
3,267
Public authorities & electric
railroads
724
704
Total
566,483
564,138
__________
(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, 2022 and 2021.
(d)
Includes alternative revenue programs.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220509005511/en/
Elizabeth Keating Corporate Communications 312-394-7417
Andrew Plenge Investor Relations 312-394-2345
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