Exelon Reports Third Quarter 2021 Results

Rhea-AI Summary

Exelon Corporation (Nasdaq: EXC) reported a GAAP Net Income of $1.23 per share and Adjusted Operating Earnings of $1.09 per share in Q3 2021, reflecting a significant increase from the previous year. The company narrowed its full-year EPS guidance to $2.70-$2.90 from $2.60-$3.00. Strong utility performance was noted, with every utility achieving top rankings in outage metrics. The passage of the Illinois Clean Energy Law is expected to enhance revenue from the nuclear fleet, which achieved a capacity factor of 96%. Key acquisitions and ongoing capital investments contribute positively to the outlook.

Positive

• GAAP Net Income increased to $1.23 per share from $0.51 per share YoY.
• Adjusted Operating Earnings rose to $1.09 per share, exceeding last year's $1.04.
• Narrowed full-year EPS guidance to $2.70-$2.90, reflecting improved performance.
• Nuclear fleet capacity factor maintained at 96%, indicating efficient operations.
• Illinois Clean Energy Law supports operational continuity for key nuclear plants.

Negative

• Adjusted Operating Earnings decreased to $427 million, down from $456 million YoY.
• PECO's GAAP Net Income decreased to $111 million from $138 million YoY.
• BGE's GAAP Net Income fell to $36 million from $53 million YoY.

Earnings Release Highlights

• GAAP Net Income of $1.23 per share and Adjusted (non-GAAP) Operating Earnings of $1.09 per share for the third quarter of 2021
• Narrowing guidance range for full year 2021 Adjusted (non-GAAP) Operating Earnings from $2.60-$3.00 per share to $2.70-$2.90 per share
• Strong utility reliability performance -- every utility achieved top decile in outage frequency, every utility achieved top quartile in outage duration and all gas utilities achieved top decile in gas odor response
• Generation’s nuclear fleet capacity factor was 96.0% (owned and operated units)
• Federal Energy Regulatory Commission (FERC) approved the planned separation of Generation in August
• Exelon Generation purchased EDF’s 49.99% equity interest in CENG for a net purchase price of $885 million
• Passage of the Illinois Clean Energy Law in September preserved operation of Byron and Dresden generating stations, strengthening the state’s clean energy leadership; the law also contains requirements associated with ComEd’s transition away from the performance-based electric distribution formula rate
• Delmarva Power Maryland filed an electric distribution rate case with the Maryland Public Service Commission (MDPSC) in September seeking an increase in base rates to support an updated depreciation study and continued investments in the system to enhance grid reliability and customer service
• An order from the Delaware Public Service Commission (DPSC) in Delmarva Power Delaware’s electric distribution rate case was received in September

CHICAGO--(BUSINESS WIRE)-- Exelon Corporation (Nasdaq: EXC) today reported its financial results for the third quarter of 2021.

“We achieved several critical milestones during the third quarter, starting with passage of landmark clean energy legislation in Illinois that preserves our nuclear fleet and puts the state on a path to zero emissions by 2045,” said Chris Crane, president and CEO of Exelon. “We also remain on track to complete the separation of our utility and competitive generation businesses in the first quarter of next year, having recently named executive leadership, secured approval from the Federal Energy Regulatory Commission and completed the acquisition of EDF’s stake in three of our nuclear plants. We continue to live our values by launching a $36 million Racial Equity Capital Fund to help minority-owned businesses in our communities finance their growth and establishing a $3 million scholarship program for local students attending Historically Black Colleges and Universities.”

“Adjusted (non-GAAP) Operating Earnings of $1.09 per share in the third quarter was $0.05 ahead of the same period last year, driven in part by rate adjustments resulting from our continued investments at the utilities to improve reliability and service for customers,” said Joseph Nigro, senior executive vice president and CFO of Exelon. “Our ongoing capital investments in technology and infrastructure continue to drive strong financial and operational results across our utilities, with each of our electric and gas distribution companies achieving top 10 percent rankings for outage frequency and high marks for customer satisfaction relative to peers. Our Generation fleet also continued to perform at a high level, with nuclear achieving a capacity factor of 96 percent and the Power fleet at a 99.4 percent dispatch match and 95.8 percent wind/solar energy capture rate. Based on our results to date, we are narrowing our 2021 earnings per share guidance range to $2.70 to $2.90 per share from $2.60 to $3.00 per share.”

Third Quarter 2021

Exelon's GAAP Net Income for the third quarter of 2021 increased to $1.23 per share from $0.51 GAAP Net Income per share in the third quarter of 2020. Adjusted (non-GAAP) Operating Earnings for the third quarter of 2021 increased to $1.09 per share from $1.04 per share in the third quarter of 2020. For the reconciliations of GAAP Net Income to Adjusted (non-GAAP) Operating Earnings, refer to the tables beginning on page 6.

Adjusted (non-GAAP) Operating Earnings in the third quarter of 2021 primarily reflect:

• Higher utility earnings primarily due to higher electric distribution earnings at ComEd from higher rate base and higher allowed ROE due to an increase in treasury rates; the favorable impacts of the multi-year plan at BGE; and regulatory rate increases at PHI.
• Lower Generation earnings primarily due to higher net unrealized and realized losses on equity investments, lower capacity revenues and increased nuclear outage days, partially offset by increased revenue from ZECs in New York and higher realized gains on nuclear decommissioning trust (NDT) funds.

Operating Company Results¹

ComEd

ComEd's third quarter of 2021 GAAP Net Income increased to $220 million from a GAAP Net Income of $196 million in the third quarter of 2020. ComEd's Adjusted (non-GAAP) Operating Earnings for the third quarter of 2021 increased to $224 million from $197 million in the third quarter of 2020, primarily due to higher electric distribution earnings from higher rate base and higher allowed 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.

___________

1Exelon’s five 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; 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; and Generation, which consists of owned and contracted electric generating facilities and wholesale and retail customer supply of electric and natural gas products and services, including renewable energy products and risk management services.

PECO

PECO’s third quarter of 2021 GAAP Net Income decreased to $111 million from $138 million in the third quarter of 2020. PECO's Adjusted (non-GAAP) Operating Earnings for the third quarter of 2021 decreased to $114 million from $141 million in the third quarter of 2020, primarily due to an increase in storm cost activity, net of tax repair deductions.

BGE

BGE’s third quarter of 2021 GAAP Net Income decreased to $36 million from $53 million in the third quarter of 2020. BGE's Adjusted (non-GAAP) Operating Earnings for the third quarter of 2021 decreased to $40 million from $54 million in the third quarter of 2020. The decrease includes the impacts of higher depreciation and amortization expense partially offset by the favorable impacts of the multi-year plan. Due to revenue decoupling, BGE's distribution earnings are not affected by actual weather or customer usage patterns.

PHI

PHI’s third quarter of 2021 GAAP Net Income increased to $266 million from $216 million in the third quarter of 2020. PHI’s Adjusted (non-GAAP) Operating Earnings for the third quarter of 2021 increased to $272 million from $220 million in the third quarter of 2020, primarily due to distribution rate increases at DPL and Pepco. 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.

Generation

Generation's third quarter of 2021 GAAP Net Income increased to $607 million from $49 million in the third quarter of 2020. Generation's Adjusted (non-GAAP) Operating Earnings for the third quarter of 2021 decreased to $427 million from $456 million in the third quarter of 2020, primarily due to higher net unrealized and realized losses on equity investments, lower capacity revenues and increased nuclear outage days, partially offset by increased revenue from ZECs in New York and higher realized gains on NDT funds.

As of Sept. 30, 2021, the percentage of expected generation hedged is 96%-99% for the remainder of 2021.

Recent Developments and Third Quarter Highlights

• Planned Separation: On Aug. 24, 2021, the FERC approved the planned separation of Generation and on Sept. 23, 2021, Exelon received a private letter ruling from the Internal Revenue Service (IRS) confirming the tax-free treatment of the planned separation. Exelon is targeting the completion of the separation in the first quarter of 2022.

• Clean Energy Law and Reversal of Decision to Early Retire Byron and Dresden Nuclear Facilities: On Sept. 15, 2021, the Illinois Public Act 102-0662 was signed into law by the Governor of Illinois (“Clean Energy Law”). The Clean Energy Law establishes decarbonization requirements for Illinois as well as programs to support the retention and development of emissions-free sources of electricity, including the authorization of 54.5 million carbon mitigation credits for qualifying nuclear plants for a five-year period beginning on June 1, 2022, through May 31, 2027, in which the Byron, Dresden and Braidwood nuclear plants will be eligible to participate in the procurement process. With the passage of the Clean Energy Law, Generation has reversed its decision to permanently cease generation operations at the Byron and Dresden nuclear plants given the opportunity for additional revenue. In addition, Generation no longer considers the Braidwood or LaSalle nuclear plants to be at risk for premature retirement. Pursuant to this development, in the third quarter of 2021 Exelon and Generation reversed $94 million of the one-time charges initially recorded in 2020 associated with the early retirements and adjusted the expected economic useful life to 2044 and 2046 for Byron Units 1 and 2, respectively, and to 2029 and 2031 for Dresden Units 2 and 3, respectively, the end of the respective operating license for each unit.
  
  The Clean Energy Law also contains requirements associated with ComEd’s transition away from the performance-based electric distribution formula rate. The law authorizing that rate setting process sunsets at the end of 2022. The Clean Energy Law, and tariffs adopted under it, governs both the remaining reconciliations of rates set under that process and requires ComEd to file in 2023 its choice of either a general rate case or a four-year multi-year plan to set rates that take effect in 2024. If ComEd elects to file a multi-year plan, that plan would set rates for 2024 – 2027, based on forecasted revenue requirements and an Illinois Commerce Commission determined rate of return on rate base, including the cost of common equity.

• CENG Put Option: On Aug. 6, 2021, Generation and Electricite de France SA (EDF) entered into a settlement agreement pursuant to which Generation, through a wholly owned subsidiary, purchased EDF’s equity interest in Constellation Energy Nuclear Group, LLC (CENG) for a net purchase price of $885 million.
  
  In connection with the settlement agreement, on Aug. 6, 2021, Generation entered into a term loan agreement of approximately $880 million to fund the transaction, which will expire on Aug. 5, 2022. Pursuant to the loan agreement, loans made thereunder bear interest at a variable rate equal to LIBOR plus 0.875% until March 31, 2022, and a rate of LIBOR plus 1% thereafter and all indebtedness thereunder is unsecured.

• DPL Delaware Electric Distribution Base Rate Case: On Sept. 15, 2021, the DPSC approved an increase in DPL's annual electric distribution base rates of $14 million, reflecting an ROE of 9.6%. Interim rates went into effect on Oct. 6, 2020, subject to refund. Rates associated with the approved order were effective on Sept. 17, 2021.

• DPL Maryland Electric Distribution Base Rate Case: On Sept. 1, 2021, DPL filed an application with the MDPSC to increase its annual electric distribution base rates by $29 million, reflecting an ROE of 10.1%. DPL expects a decision in the first quarter of 2022 but cannot predict if the MDPSC will approve the application as filed.

• ACE Conservation Incentive Program (CIP): On April 27, 2021, the New Jersey Board of Public Utilities approved a settlement filed by ACE that included ACE’s ability to implement a CIP prospectively effective July 1, 2021, which would eliminate the favorable and unfavorable impacts of weather and customer usage patterns on distribution revenue for most customers. As a result of this decoupling mechanism, operating revenues will no longer be impacted by abnormal weather or usage for most customers.

• Nuclear Operations: Generation’s nuclear fleet, including its owned output from the Salem Generating Station and 100% of the CENG units, produced 44,850 gigawatt-hours (GWhs) in the third quarter of 2021, compared with 44,884 GWhs in the third quarter of 2020. Excluding Salem, the Exelon-operated nuclear plants at ownership achieved a 96.0% capacity factor for the third quarter of 2021, compared with 96.0% for the third quarter of 2020. The number of planned refueling outage days in the third quarter of 2021 totaled 22, compared with 17 in the third quarter of 2020. There were no non-refueling outage days in the third quarter of 2021 and four in the third quarter of 2020.

• Fossil and Renewables Operations: The Dispatch Match rate for Generation’s gas and hydro fleet was 99.4% in the third quarter of 2021, compared with 98.9% in the third quarter of 2020.
  
  Energy Capture for the wind and solar fleet was 95.8% in the third quarter of 2021, compared with 91.9% in the third quarter of 2020.

• Financing Activities:
  • On Aug. 12, 2021, ComEd issued $450 million of its First Mortgage 2.75% Bonds, Series 131, due Sept. 1, 2051. ComEd used the proceeds to repay existing indebtedness and for general corporate purposes.
  • On Sept. 14, 2021, PECO issued $375 million of its First and Refunding Mortgage Bonds, 2.85% Series, due Sept. 15, 2051. PECO used the proceeds to repay existing indebtedness and for general corporate purposes.
  • On Sept. 28, 2021, Pepco issued $125 million of its First Mortgage Bonds 3.29% Series, due Sept. 28, 2051. 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 third quarter of 2021 do not include the following items (after tax) that were included in reported GAAP Net Income:

(in millions)	Exelon Earnings per Diluted Share			Exelon			ComEd			PECO			BGE			PHI			Generation
2021 GAAP Net Income (Loss)	$	1.23		$	1,203		$	220		$	111		$	36		$	266		$	607
Mark-to-Market Impact of Economic Hedging Activities (net of taxes of $192 and $190, respectively)	(0.57		)	(559		)	—			—			—			—			(565		)
Unrealized Losses Related to NDT Fund Investments (net of taxes of $70)	0.06			55			—			—			—			—			55
Asset Impairments (net of taxes of $11)	0.03			33			—			—			—			—			33
Plant Retirements and Divestitures (net of taxes of $71)	0.22			211			—			—			—			—			211
Cost Management Program (net of taxes of $1)	0.01			6			—			1			1			1			3
Change in Environmental Liabilities (net of taxes of $1)	—			4			—			—			—			—			4
COVID-19 Direct Costs (net of taxes of $1, $0, $0, $0, and $1, respectively)	0.01			7			—			1			1			1			4
Asset Retirement Obligation (net of taxes of $12, $1, and $13, respectively)	(0.04		)	(35		)	—			—			—			2			(37		)
Acquisition Related Costs (net of taxes of $2)	0.01			7			—			—			—			—			7
ERP System Implementation Costs (net of taxes of $1)	—			4			—			—			—			—			4
Planned Separation Costs (net of taxes of $10, $2, $1, $1, $1, and $4, respectively)	0.03			27			4			2			2			3			12
Costs Related to Suspension of Contractual Offset (net of taxes of $33)	0.11			107			—			—			—			—			107
Income Tax-Related Adjustments (entire amount represents tax expense)	0.02			19			—			—			—			—			(2		)
Noncontrolling Interests (net of taxes of $5)	(0.02		)	(17		)	—			—			—			—			(17		)
2021 Adjusted (non-GAAP) Operating Earnings	$	1.09		$	1,070		$	224		$	114		$	40		$	272		$	427

Adjusted (non-GAAP) Operating Earnings for the third quarter of 2020 do not include the following items (after tax) that were included in reported GAAP Net Income:

(in millions)	Exelon Earnings per Diluted Share			Exelon			ComEd			PECO			BGE			PHI			Generation
2020 GAAP Net Income (Loss)	$	0.51		$	501		$	196		$	138		$	53		$	216		$	49
Mark-to-Market Impact of Economic Hedging Activities (net of taxes of $62 and $64, respectively)	(0.19		)	(183		)	—			—			—			—			(192		)
Unrealized Gains Related to NDT Fund Investments (net of taxes of $161)	(0.18		)	(172		)	—			—			—			—			(172		)
Asset Impairments (net of taxes of $126)	0.38			375			—			—			—			—			375
Plant Retirements and Divestitures (net of taxes of $111)	0.34			329			—			—			—			—			329
Cost Management Program (net of taxes of $5, $0, $0, $1, and $4, respectively)	0.02			15			—			1			1			1			12
Change in Environmental Liabilities (net of taxes of $6)	0.02			17			—			—			—			—			17
COVID-19 Direct Costs (net of taxes of $3, $1, $0, and $2, respectively)	0.01			10			—			2			—			1			7
Asset Retirement Obligation (net of taxes of $1)	—			3			—			—			—			3			—
Acquisition Related Costs (net of taxes of $1)	—			2			—			—			—			—			2
Income Tax-Related Adjustments (entire amount represents tax expense)	0.06			62			—			—			—			(1		)	(28		)
Noncontrolling Interests (net of taxes of $12)	0.06			57			—			—			—			—			57
2020 Adjusted (non-GAAP) Operating Earnings	$	1.04		$	1,017		$	197		$	141		$	54		$	220		$	456

Note:
Amounts may not sum due to rounding.

Unless otherwise noted, the income tax impact of each reconciling item between GAAP Net Income 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 except the unrealized gains and losses related to NDT fund investments, the marginal statutory income tax rates for 2021 and 2020 ranged from 25.0% to 29.0%. Under IRS regulations, NDT fund investment returns are taxed at different rates for investments if they are in qualified or non-qualified funds. The effective tax rates for the unrealized gains and losses related to NDT fund investments were 56.2% and 48.3% for the three months ended Sept. 30, 2021 and 2020, respectively.

Webcast Information

Exelon will discuss third quarter 2021 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 Corporation (Nasdaq: EXC) is a Fortune 100 energy company with the largest number of electricity and natural gas customers in the U.S. Exelon does business in 48 states, the District of Columbia, and Canada and had 2020 revenue of $33 billion. Exelon serves approximately 10 million customers in Delaware, the District of Columbia, Illinois, Maryland, New Jersey, and Pennsylvania through its Atlantic City Electric, BGE, ComEd, Delmarva Power, PECO, and Pepco subsidiaries. Exelon is one of the largest competitive U.S. power generators, with more than 31,000 megawatts of nuclear, gas, wind, solar and hydroelectric generating capacity comprising one of the nation’s cleanest and lowest-cost power generation fleets. The company’s Constellation business unit provides energy products and services to approximately 2 million residential, public sector, and business customers, including three fourths of the Fortune 100. 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. The Company 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 Nov. 3, 2021.

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 including, among others, those related to the timing, manner, tax-free nature, and expected benefits associated with the potential separation of Exelon’s competitive power generation and customer-facing energy business from its six regulated electric and gas utilities. Words such as “could,” “may,” “expects,” “anticipates,” “will,” “targets,” “goals,” “projects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “predicts,” and variations on such words, and similar expressions that reflect our current views with respect to future events and operational, economic, and financial performance, are intended to identify such forward-looking statements.

The factors that could cause actual results to differ materially from the forward-looking statements made by Exelon Corporation, Exelon Generation Company, LLC, Commonwealth Edison Company, PECO Energy Company, Baltimore Gas and Electric Company, Pepco Holdings LLC, Potomac Electric Power Company, Delmarva Power & Light Company, and Atlantic City Electric Company (Registrants) include those factors discussed herein, as well as the items discussed in (1) the Registrants' 2020 Annual Report on Form 10-K in (a) Part I, ITEM 1A. Risk Factors, (b) Part II, ITEM 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations, and (c) Part II, ITEM 8. Financial Statements and Supplementary Data: Note 19, Commitments and Contingencies; (2) the Registrants' Third Quarter 2021 Quarterly Report on Form 10-Q (to be filed on Nov. 3, 2021) 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 15, 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.

Exelon GAAP Consolidated Statements of Operations and Adjusted (non-GAAP) Operating Earnings Reconciling Adjustments (unaudited) (in millions, except per share data)
	Three Months Ended September 30, 2021										Three Months Ended September 30, 2020
	GAAP (a)				Non-GAAP Adjustments						GAAP (a)				Non-GAAP Adjustments
Operating revenues	$	8,910			$	635			(b)		$	8,853			$	(37	)		(b)
Operating expenses
Purchased power and fuel		3,033				1,347			(b),(c)			3,614				194			(b),(c)
Operating and maintenance		1,992				90			(c),(d),(e),(f), (g),(h),(i),(j), (k),(l)			2,732				(718	)		(c),(d),(e),(f), (g),(j),(l)
Depreciation and amortization		1,624				(573	)		(c),(k)			1,289				(262	)		(c)
Taxes other than income taxes		468				—						452				—
Total operating expenses		7,117										8,087
Gain on sales of assets and businesses		65				1			(c)			3				—
Operating income		1,858										769
Other income and (deductions)
Interest expense, net		(397	)			(1	)		(b)			(404	)			8			(b)
Other, net		(55	)			95			(b),(c),(k),(m)			421				(333	)		(m)
Total other income and (deductions)		(452	)									17
Income before income taxes		1,406										786
Income taxes		174				(26	)		(b),(c),(d),(e), (f),(g),(h),(i), (j),(k),(l),(m), (n)			216				(34	)		(b),(c),(d),(e), (f),(g),(j),(l), (m),(n)
Equity in losses of unconsolidated affiliates		(3	)			—						(1	)			—
Net income		1,229										569
Net income attributable to noncontrolling interests		26				23			(o)			68				(57	)		(o)
Net income attributable to common shareholders	$	1,203									$	501
Effective tax rate(p)		12.4	%									27.5	%
Earnings per average common share
Basic	$	1.23									$	0.51
Diluted	$	1.23									$	0.51
Average common shares outstanding
Basic		979										976
Diluted		980										977

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(a)	Results reported in accordance with accounting principles generally accepted in the United States (GAAP).
(b)	Adjustment to exclude the mark-to-market impact of Exelon’s economic hedging activities, net of intercompany eliminations.
(c)	In 2021, adjustment to exclude primarily accelerated depreciation and amortization associated with Generation's decisions to early retire Byron and Dresden, partially offset by reversal of one-time charges resulting from the reversal of the previous decision to retire Byron and Dresden on September 15, 2021. Depreciation for Byron and Dresden was adjusted beginning September 15, 2021 to reflect the extended useful life estimates. In 2020, adjustment to exclude primarily one-time charges and accelerated depreciation and amortization associated with Generation’s decisions in the third quarter of 2020 to early retire Byron and Dresden nuclear facilities in 2021 and Mystic Units 8 and 9 in 2024.
(d)	Adjustment to exclude primarily reorganization and severance costs related to cost management programs.
(e)	In 2021, adjustment to exclude an impairment of a wind project at Generation. In 2020, adjustment to exclude primarily an impairment in the New England asset group.
(f)	Adjustment to exclude 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.
(g)	Adjustment to exclude 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.
(h)	Adjustment to exclude costs related to a multi-year Enterprise Resource Program (ERP) system implementation.
(i)	Adjustment to exclude costs related to the planned separation primarily comprised of system-related costs, third-party costs paid to advisors, consultants, lawyers, and other experts assisting in the planned separation, and employee-related severance costs.
(j)	Adjustment to exclude changes in environmental liabilities.
(k)	Adjustment to exclude the impact of suspension of contractual offset for the Byron units beginning in the second quarter of 2021 through September 15, 2021. With Generation's September 15, 2021, reversal of the previous decision to retire Byron, Generation resumed contractual offset for Byron as of that date.
(l)	In 2021, adjustment to exclude an adjustment to the nuclear asset retirement obligation for Non-Regulatory Agreement Units resulting from the annual update in the third quarter of 2021. In 2020, adjustment to exclude ARO updates.
(m)	Adjustment to exclude the impact of net unrealized gains and losses on Generation’s NDT fund investments for Non-Regulatory Agreement Units.
(n)	Adjustment to exclude primarily the adjustment to deferred income taxes due to changes in forecasted apportionment.
(o)	Adjustment to exclude elimination from Generation’s results of the noncontrolling interests related to certain exclusion items, primarily related to unrealized gains and losses on NDT fund investments for CENG units prior to Generation's acquisition of EDF's interest in CENG on August 6, 2021 and the noncontrolling interest portion of a wind project impairment.
(p)	The effective tax rate related to Adjusted (non-GAAP) Operating Earnings is 11.6% and 15.0% for the three months ended September 30, 2021 and 2020, respectively.

Exelon GAAP Consolidated Statements of Operations and Adjusted (non-GAAP) Operating Earnings Reconciling Adjustments (unaudited) (in millions, except per share data)
	Nine Months Ended September 30, 2021										Nine Months Ended September 30, 2020
	GAAP (a)				Non-GAAP Adjustments						GAAP (a)				Non-GAAP Adjustments
Operating revenues	$	26,715			$	958			(b)		$	24,925			$	(238	)		(b)
Operating expenses
Purchased power and fuel	12,017				2,052				(b),(c)		10,406				210				(b),(c)
Operating and maintenance	6,416				(98		)		(c),(d),(e),(f), (g),(h),(i),(j), (k),(l)		7,370				(1,023		)		(c),(d),(e),(f), (g),(j),(l),(p)
Depreciation and amortization	4,988				(1,848		)		(c),(k)		3,312				(275		)		(c)
Taxes other than income taxes	1,337				—						1,299				—
Total operating expenses	24,758										22,387
Gain on sales of assets and businesses	147				(68		)		(c)		16				(4		)		(b),(c)
Operating income	2,104										2,554
Other income and (deductions)
Interest expense, net	(1,180		)		(4		)		(b)		(1,241		)		48				(b)
Other, net	751				(90		)		(b),(c),(k),(m)		352				(22		)		(m)
Total other income and (deductions)	(429		)								(889		)
Income before income taxes	1,675										1,665
Income taxes	229				135				(b),(c),(d),(e), (f),(g),(h),(i), (j),(k),(l),(m), (n)		141				87				(b),(c),(d),(e), (f),(g),(j),(m), (n)
Equity in losses of unconsolidated affiliates	(5		)		—						(5		)		—
Net income	1,441										1,519
Net income (loss) attributable to noncontrolling interests	126				(10		)		(o)		(85		)		(15		)		(o)
Net income attributable to common shareholders	$	1,315									$	1,604
Effective tax rate(q)	13.7		%								8.5		%
Earnings per average common share
Basic	$	1.34									$	1.64
Diluted	$	1.34									$	1.64
Average common shares outstanding
Basic	978										976
Diluted	979										976

__________
(a)	Results reported in accordance with accounting principles generally accepted in the United States (GAAP).
(b)	Adjustment to exclude the mark-to-market impact of Exelon’s economic hedging activities, net of intercompany eliminations.
(c)	In 2021, adjustment to exclude primarily accelerated depreciation and amortization associated with Generation's decisions to early retire Byron, Dresden, and Mystic Units 8 and 9, partially offset by reversal of one-time charges resulting from the reversal of the previous decision to retire Byron and Dresden on September 15, 2021 and a gain on sale of Generation's solar business. Depreciation for Byron and Dresden was adjusted beginning September 15, 2021 to reflect the extended useful life estimates. In 2020, adjustment to exclude primarily one-time charges and accelerated depreciation and amortization associated with Generation’s decisions in the third quarter of 2020 to early retire Byron and Dresden nuclear facilities in 2021 and Mystic Units 8 and 9 in 2024.
(d)	Adjustment to exclude primarily reorganization and severance costs related to cost management programs.
(e)	In 2021, adjustment to exclude an impairment in the New England asset group, an impairment recorded as a result of the agreement to sell the Albany Green Energy biomass facility, and an impairment of a wind project at Generation. In 2020, adjustment to exclude an impairment at ComEd related to the acquisition of transmission assets and an impairment in the New England asset group in the third quarter of 2020.
(f)	Adjustment to exclude 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.
(g)	Adjustment to exclude 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.
(h)	Adjustment to exclude costs related to a multi-year Enterprise Resource Program (ERP) system implementation.
(i)	Adjustment to exclude costs related to the planned separation primarily comprised of system-related costs, third-party costs paid to advisors, consultants, lawyers, and other experts assisting in the planned separation, and employee-related severance costs.
(j)	Adjustment to exclude changes in environmental liabilities.
(k)	Adjustment to exclude the impact of suspension of contractual offset for the Byron units beginning in the second quarter of 2021 through September 15, 2021. With Generation's September 15, 2021, reversal of the previous decision to retire Byron, Generation resumed contractual offset for Byron as of that date.
(l)	In 2021, adjustment to exclude an adjustment to the nuclear asset retirement obligation for Non-Regulatory Agreement Units resulting from the annual update in the third quarter of 2021. In 2020, adjustment to exclude ARO updates.
(m)	Adjustment to exclude the impact of net unrealized gains and losses on Generation’s NDT fund investments for Non-Regulatory Agreement Units.
(n)	Adjustment to exclude primarily the adjustment to deferred income taxes due to changes in forecasted apportionment.
(o)	Adjustment to exclude elimination from Generation’s results of the noncontrolling interests related to certain exclusion items, primarily related to unrealized gains and losses on NDT fund investments for CENG units prior to Generation's acquisition of EDF's interest in CENG on August 6, 2021 and the noncontrolling interest portion of a wind project impairment.
(p)	Adjustment to exclude the payments made by ComEd under the Deferred Prosecution Agreement, which ComEd entered in July 2020 with the U.S. Attorney’s Office for the Northern District of Illinois.
(q)	The effective tax rate related to Adjusted (non-GAAP) Operating Earnings is 15.4% and 9.0% for the nine months ended September 30, 2021 and 2020, respectively.

ComEd GAAP Consolidated Statements of Operations and Adjusted (non-GAAP) Operating Earnings Reconciling Adjustments (unaudited) (in millions)
	Three Months Ended September 30, 2021										Three Months Ended September 30, 2020
	GAAP (a)				Non-GAAP Adjustments						GAAP (a)				Non-GAAP Adjustments
Operating revenues	$	1,789			$	—					$	1,643			$	—
Operating expenses
Purchased power and fuel	703				—						606				—
Operating and maintenance	330				(6		)		(d)		321				—
Depreciation and amortization	304				—						294				—
Taxes other than income taxes	91				—						81				—
Total operating expenses	1,428										1,302
Operating income	361										341
Other income and (deductions)
Interest expense, net	(98		)		—						(95		)		—
Other, net	13				—						10				—
Total other income and (deductions)	(85		)								(85		)
Income before income taxes	276										256
Income taxes	56				2				(d)		60				—
Net income	$	220									$	196
	Nine Months Ended September 30, 2021										Nine Months Ended September 30, 2020
	GAAP (a)				Non-GAAP Adjustments						GAAP (a)				Non-GAAP Adjustments
Operating revenues	$	4,840			$	—					$	4,499			$	—
Operating expenses
Purchased power and fuel	1,728				—						1,557				—
Operating and maintenance	969				(10		)		(d)		1,173				(215		)		(b), (c)
Depreciation and amortization	893				—						841				—
Taxes other than income taxes	243				—						227				—
Total operating expenses	3,833										3,798
Operating income	1,007										701
Other income and (deductions)
Interest expense, net	(292		)		—						(287		)		—
Other, net	35				—						32				—
Total other income and (deductions)	(257		)								(255		)
Income before income taxes	750										446
Income taxes	141				3				(d)		142				4				(b)
Net income	$	609									$	304

__________
(a)	Results reported in accordance with accounting principles generally accepted in the United States (GAAP).
(b)	Adjustment to exclude an impairment related to the acquisition of transmission assets.
(c)	Adjustment to exclude the payments made by ComEd under the Deferred Prosecution Agreement, which ComEd entered in July 2020 with the U.S. Attorney’s Office for the Northern District of Illinois.
(d)	Represents costs related to the planned separation primarily comprised of system-related costs, third-party costs paid to advisors, consultants, lawyers, and other experts assisting in the planned separation, and employee-related severance costs.

PECO GAAP Consolidated Statements of Operations and Adjusted (non-GAAP) Operating Earnings Reconciling Adjustments (unaudited) (in millions)
	Three Months Ended September 30, 2021										Three Months Ended September 30, 2020
	GAAP (a)				Non-GAAP Adjustments						GAAP (a)				Non-GAAP Adjustments
Operating revenues	$	818			$	—					$	813			$	—
Operating expenses
Purchased power and fuel	277				—						269				—
Operating and maintenance	263				(5		)		(b),(c)		251				(4		)		(b),(e)
Depreciation and amortization	86				—						85				—
Taxes other than income taxes	51				—						53				—
Total operating expenses	677										658
Operating income	141										155
Other income and (deductions)
Interest expense, net	(40		)		—						(39		)		—
Other, net	7				—						6				—
Total other income and (deductions)	(33		)								(33		)
Income before income taxes	108										122
Income taxes	(3		)		1				(b),(c)		(16		)		1				(b),(e)
Net income	$	111									$	138
	Nine Months Ended September 30, 2021										Nine Months Ended September 30, 2020
	GAAP (a)				Non-GAAP Adjustments						GAAP (a)				Non-GAAP Adjustments
Operating revenues	$	2,399			$	—					$	2,306			$	—
Operating expenses
Purchased power and fuel	800				—						768				—
Operating and maintenance	706				(11		)		(b),(c),(d)		742				(13		)		(b),(e)
Depreciation and amortization	259				—						259				—
Taxes other than income taxes	143				—						131				—
Total operating expenses	1,908										1,900
Operating income	491										406
Other income and (deductions)
Interest expense, net	(119		)		—						(108		)		—
Other, net	20				—						12				—
Total other income and (deductions)	(99		)								(96		)
Income before income taxes	392										310
Income taxes	9				3				(b),(c),(d)		(7		)		4				(b),(e)
Net income	$	383									$	317

__________
(a)	Results reported in accordance with accounting principles generally accepted in the United States (GAAP).
(b)	Adjustment to exclude 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.
(c)	Represents costs related to the planned separation primarily comprised of system-related costs, third-party costs paid to advisors, consultants, lawyers, and other experts assisting in the planned separation, and employee-related severance costs.
(d)	Adjustment to exclude costs related to a multi-year Enterprise Resource Program (ERP) system implementation.
(e)	Adjustment to exclude reorganization costs related to cost management programs.

BGE GAAP Consolidated Statements of Operations and Adjusted (non-GAAP) Operating Earnings Reconciling Adjustments (unaudited) (in millions)
	Three Months Ended September 30, 2021										Three Months Ended September 30, 2020
	GAAP (a)				Non-GAAP Adjustments						GAAP (a)				Non-GAAP Adjustments
Operating revenues	$	770			$	—					$	731			$	—
Operating expenses
Purchased power and fuel	290				—						250				—
Operating and maintenance	205				(5		)		(b),(c)		191				(1		)		(b),(e)
Depreciation and amortization	142				—						133				—
Taxes other than income taxes	72				—						68				—
Total operating expenses	709										642
Operating income	61										89
Other income and (deductions)
Interest expense, net	(36		)		—						(34		)		—
Other, net	7				—						6				—
Total other income and (deductions)	(29		)								(28		)
Income before income taxes	32										61
Income taxes	(4		)		1				(b),(c)		8				—
Net income	$	36									$	53
	Nine Months Ended September 30, 2021										Nine Months Ended September 30, 2020
	GAAP (a)				Non-GAAP Adjustments						GAAP (a)				Non-GAAP Adjustments
Operating revenues	$	2,426			$	—					$	2,284			$	—
Operating expenses
Purchased power and fuel	840				—						731				—
Operating and maintenance	595				(11		)		(b),(c),(d)		567				(8		)		(b),(e)
Depreciation and amortization	434				—						405				—
Taxes other than income taxes	211				—						200				—
Total operating expenses	2,080										1,903
Operating income	346										381
Other income and (deductions)
Interest expense, net	(103		)		—						(99		)		—
Other, net	23				—						17				—
Total other income and (deductions)	(80		)								(82		)
Income before income taxes	266										299
Income taxes	(24		)		3				(b),(c),(d)		26				2				(b),(e)
Net income	$	290									$	273

__________
(a)	Results reported in accordance with accounting principles generally accepted in the United States (GAAP).
(b)	Adjustment to exclude 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.
(c)	Adjustment to exclude costs related to the planned separation primarily comprised of system-related costs, third-party costs paid to advisors, consultants, lawyers, and other experts assisting in the planned separation, and employee-related severance costs.
(d)	Adjustment to exclude costs related to a multi-year Enterprise Resource Program (ERP) system implementation.
(e)	Adjustment to exclude reorganization costs related to cost management programs.

PHI GAAP Consolidated Statements of Operations and Adjusted (non-GAAP) Operating Earnings Reconciling Adjustments (unaudited) (in millions)
	Three Months Ended September 30, 2021										Three Months Ended September 30, 2020
	GAAP (a)				Non-GAAP Adjustments						GAAP (a)				Non-GAAP Adjustments
Operating revenues	$	1,470			$	—					$	1,368			$	—
Operating expenses
Purchased power and fuel	540				—						506				—
Operating and maintenance	278				(9		)		(b),(c),(d),(e),(f)		275				(7		)		(d),(e),(f)
Depreciation and amortization	210				—						200				—
Taxes other than income taxes	127				—						121				—
Total operating expenses	1,155										1,102
Operating income	315										266
Other income and (deductions)
Interest expense, net	(67		)		—						(67		)		—
Other, net	16				—						16				—
Total other income and (deductions)	(51		)								(51		)
Income before income taxes	264										215
Income taxes	(2		)		2				(b),(c),(d),(e),(f)		(1		)		3				(d),(e),(f),(g)
Net income	$	266									$	216
	Nine Months Ended September 30, 2021										Nine Months Ended September 30, 2020
	GAAP (a)				Non-GAAP Adjustments						GAAP (a)				Non-GAAP Adjustments
Operating revenues	$	3,854			$	—					$	3,554			$	—
Operating expenses
Purchased power and fuel	1,414				—						1,316				—
Operating and maintenance	790				(15		)		(b),(c),(d),(e),(f)		813				(17		)		(d),(e),(f)
Depreciation and amortization	614				—						585				—
Taxes other than income taxes	349				—						343				—
Total operating expenses	3,167										3,057
Gain on sales of assets	—				—						2				—
Operating income	687										499
Other income and (deductions)
Interest expense, net	(201		)		—						(201		)		—
Other, net	52				—						42				—
Total other income and (deductions)	(149		)								(159		)
Income before income taxes	538										340
Income taxes	3				4				(b),(c),(d),(e),(f)		(77		)		6				(d),(e),(f),(g)
Equity in earnings of unconsolidated affiliates	—										1
Net income	$	535									$	418

__________
(a)	Results reported in accordance with accounting principles generally accepted in the United States (GAAP).
(b)	Adjustment to exclude costs related to a multi-year Enterprise Resource Program (ERP) system implementation.
(c)	Adjustment to exclude costs related to the planned separation primarily comprised of system-related costs, third-party costs paid to advisors, consultants, lawyers, and other experts assisting in the planned separation, and employee-related severance costs.
(d)	Adjustment to exclude reorganization and severance costs related to cost management programs.
(e)	Adjustment to exclude 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.
(f)	Adjustment to exclude an ARO update.
(g)	Adjustment to exclude deferred income taxes due to changes in forecasted appointment.

Generation GAAP Consolidated Statements of Operations and Adjusted (non-GAAP) Operating Earnings Reconciling Adjustments (unaudited) (in millions)
	Three Months Ended September 30, 2021										Three Months Ended September 30, 2020
	GAAP (a)				Non-GAAP Adjustments						GAAP (a)				Non-GAAP Adjustments
Operating revenues	$	4,406			$	635			(b)		$	4,659			$	(37	)		(b)
Operating expenses
Purchased power and fuel	1,546				1,347				(b),(c)		2,314				194				(b),(c)
Operating and maintenance	938				121				(c),(d),(e),(f), (g),(h),(i),(j), (k),(l)		1,737				(706		)		(c),(d),(e),(f), (g),(j)
Depreciation and amortization	866				(573		)		(c),(k)		558				(262		)		(c)
Taxes other than income taxes	115				—						118				—
Total operating expenses	3,465										4,727
Gain on sales of assets and businesses	65				1				(c)		—				—
Operating income (loss)	1,006										(68		)
Other income and (deductions)
Interest expense, net	(77		)		(1		)		(b)		(80		)		(2		)		(b)
Other, net	(115		)		91				(c),(k),(m)		367				(333		)		(m)
Total other income and (deductions)	(192		)								287
Income before income taxes	814										219
Income taxes	177				(11		)		(b),(c),(d),(e), (f),(g),(h),(i), (j),(k),(l),(m), (n)		100				52				(b),(c),(d),(e), (f),(g),(j),(m), (n)
Equity in losses of unconsolidated affiliates	(4		)		—						(2		)		—
Net income	633										117
Net income attributable to noncontrolling interests	26				23				(o)		68				(57		)		(o)
Net income attributable to membership interest	$	607									$	49
	Nine Months Ended September 30, 2021										Nine Months Ended September 30, 2020
	GAAP (a)				Non-GAAP Adjustments						GAAP (a)				Non-GAAP Adjustments
Operating revenues	$	14,117			$	958			(b)		$	13,272			$	(238	)		(b)
Operating expenses
Purchased power and fuel	8,103				2,052				(b),(c)		6,961				210				(b),(c)
Operating and maintenance	3,413				(40		)		(c),(d),(e),(f), (g),(h),(i),(j), (k),(l)		4,188				(773		)		(c),(d),(e),(f), (g),(j)
Depreciation and amortization	2,735				(1,848		)		(c),(k)		1,161				(275		)		(c)
Taxes other than income taxes	354				—						364				—
Total operating expenses	14,605										12,674
Gain on sales of assets and businesses	144				(68		)		(c)		12				(4		)		(b),(c)
Operating (loss) income	(344		)								610
Other income and (deductions)
Interest expense, net	(225		)		(4		)		(b)		(277		)		10				(b)
Other, net	561				(96		)		(c),(k),(m)		199				(22		)		(m)
Total other income and (deductions)	336										(78		)
(Loss) income before income taxes	(8		)								532
Income taxes	108				139				(b),(c),(d),(e), (f),(g),(h),(i), (j),(k),(l),(m), (n)		41				149				(b),(c),(d),(e), (f),(g),(j),(m), (n)
Equity in losses of unconsolidated affiliates	(6		)		—						(6		)		—
Net (loss) income	(122		)								485
Net income (loss) attributable to noncontrolling interests	125				(10		)		(o)		(85		)		(15		)		(o)
Net (loss) income attributable to membership interest	$	(247	)								$	570

__________
(a)	Results reported in accordance with accounting principles generally accepted in the United States (GAAP).
(b)	Adjustment to exclude the mark-to-market impact of Exelon’s economic hedging activities, net of intercompany eliminations.
(c)	In 2021, adjustment to exclude primarily accelerated depreciation and amortization associated with Generation's decisions to early retire Byron, Dresden, and Mystic Units 8 and 9, partially offset by reversal of one-time charges resulting from the reversal of the previous decision to retire Byron and Dresden on September 15, 2021 and a gain on sale of Generation's solar business. Depreciation for Byron and Dresden was adjusted beginning September 15, 2021 to reflect the extended useful life estimates. In 2020, adjustment to exclude primarily one-time charges and accelerated depreciation and amortization associated with Generation’s decisions in the third quarter of 2020 to early retire Byron and Dresden nuclear facilities in 2021 and Mystic Units 8 and 9 in 2024.
(d)	Adjustment to exclude primarily reorganization and severance costs related to cost management programs.
(e)	In 2021, adjustment to exclude an impairment in the New England asset group, an impairment recorded as a result of the agreement to sell the Albany Green Energy biomass facility, and an impairment of a wind project at Generation. In 2020, adjustment to exclude primarily an impairment in the New England asset group in the third quarter of 2020.
(f)	Adjustment to exclude 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.
(g)	Adjustment to exclude 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.
(h)	Adjustment to exclude costs related to a multi-year Enterprise Resource Program (ERP) system implementation.
(i)	Adjustment to exclude costs related to the planned separation primarily comprised of system-related costs, third-party costs paid to advisors, consultants, lawyers, and other experts assisting in the planned separation, and employee-related severance costs.
(j)	Adjustment to exclude changes in environmental liabilities.
(k)	Adjustment to exclude the impact of suspension of contractual offset for the Byron units beginning in the second quarter of 2021 through September 15, 2021. With Generation's September 15, 2021 reversal of the previous decision to retire Byron, Generation resumed contractual offset for Byron as of that date.
(l)	In 2021, adjustment to exclude an adjustment to the nuclear asset retirement obligation for Non-Regulatory Agreement Units resulting from the annual update in the third quarter of 2021.
(m)	Adjustment to exclude the impact of net unrealized gains and losses on Generation’s NDT fund investments for Non-Regulatory Agreement Units.
(n)	Adjustment to exclude primarily the adjustment to deferred income taxes due to changes in forecasted apportionment.
(o)	Adjustment to exclude elimination from Generation’s results of the noncontrolling interests related to certain exclusion items, primarily related to unrealized gains and losses on NDT fund investments for CENG units prior to Generation's acquisition of EDF's interest in CENG on August 6, 2021 and the noncontrolling interest portion of a wind project impairment.

Other (a) GAAP Consolidated Statements of Operations and Adjusted (non-GAAP) Operating Earnings Reconciling Adjustments (unaudited) (in millions)
	Three Months Ended September 30, 2021										Three Months Ended September 30, 2020
	GAAP (b)				Non-GAAP Adjustments						GAAP (b)				Non-GAAP Adjustments
Operating revenues	$	(343	)		$	—					$	(361	)		$	—
Operating expenses
Purchased power and fuel	(323		)		—						(331		)		—
Operating and maintenance	(22		)		(6		)		(c)		(43		)		—
Depreciation and amortization	16				—						19				—
Taxes other than income taxes	12				—						11				—
Total operating expenses	(317		)								(344		)
Gain on sales of assets and businesses	—				—						3				—
Operating loss	(26		)								(14		)
Other income and (deductions)
Interest expense, net	(79		)		—						(89		)		10				(d)
Other, net	17				4				(d)		16				—
Total other income and (deductions)	(62		)								(73		)
Loss before income taxes	(88		)								(87		)
Income taxes	(50		)		(21		)		(c),(d),(e)		65				(90		)		(d),(e)
Equity in earnings of unconsolidated affiliates	1				—						1				—
Net loss	(37		)								(151		)
Net income attributable to noncontrolling interests	—										—
Net loss attributable to common shareholders	$	(37	)								$	(151	)
	Nine Months Ended September 30, 2021										Nine Months Ended September 30, 2020
	GAAP (b)				Non-GAAP Adjustments						GAAP (b)				Non-GAAP Adjustments
Operating revenues	$	(921	)		$	—					$	(990	)		$	—
Operating expenses
Purchased power and fuel	(868		)		—						(927		)		—
Operating and maintenance	(57		)		(11		)		(c)		(113		)		3				(f)
Depreciation and amortization	53				—						61				—
Taxes other than income taxes	37				—						34				—
Total operating expenses	(835		)								(945		)
Gain on sales of assets and businesses	3				—						2				—
Operating loss	(83		)								(43		)
Other income and (deductions)
Interest expense, net	(240		)		—						(269		)		38				(d),(e)
Other, net	60				6				(d)		50				—
Total other income and (deductions)	(180		)								(219		)
Loss before income taxes	(263		)								(262		)
Income taxes	(8		)		(17		)		(c),(d),(e)		16				(78		)		(d),(e),(f)
Equity in earnings of unconsolidated affiliates	1				—						—				—
Net loss	(254		)								(278		)
Net income attributable to noncontrolling interests	1										—
Net loss attributable to common shareholders	$	(255	)								$	(278	)

__________
(a)	Other primarily includes eliminating and consolidating adjustments, Exelon’s corporate operations, shared service entities, and other financing and investment activities.
(b)	Results reported in accordance with accounting principles generally accepted in the United States (GAAP).
(c)	Adjustment to exclude costs related to the planned separation primarily comprised of system-related costs, third-party costs paid to advisors, consultants, lawyers, and other experts assisting in the planned separation, and employee-related severance costs.
(d)	Adjustment to exclude the mark-to-market impact of Exelon’s economic hedging activities, net of intercompany eliminations.
(e)	Adjustment to exclude primarily the adjustment to deferred income taxes due to changes in forecasted apportionment.
(f)	Adjustment to exclude reorganization costs related to cost management programs.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20211103005309/en/

Paul Adams

Corporate Communications

410-245-8717

Emily Duncan

Investor Relations

312-394-2345

Source: Exelon Corporation

FAQ

What were Exelon's earnings per share for Q3 2021?

Exelon reported a GAAP Net Income of $1.23 per share and Adjusted Operating Earnings of $1.09 per share for Q3 2021.

How did Exelon's performance in Q3 2021 compare to the previous year?

Exelon's GAAP Net Income increased from $0.51 per share in Q3 2020 to $1.23 in Q3 2021.

What is Exelon's revised earnings guidance for 2021?

Exelon narrowed its full-year guidance for Adjusted Operating Earnings to $2.70-$2.90 per share.

What significant legislative change affected Exelon's operations in Q3 2021?

The Illinois Clean Energy Law, passed in September 2021, preserved operations for key nuclear plants.

What impact did the Clean Energy Law have on Exelon's nuclear fleet?

The law allows Exelon’s nuclear plants to participate in a carbon credit procurement process, enhancing revenue opportunities.