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​Exelon is the number one competitive energy provider, with one of the cleanest and lowest-cost power generation fleets and one of the largest retail customer bases in the United States. Exelon has a solid platform to pursue continued commitment to sustainable growth and competitive markets, helping drive customer choice, innovation and efficiency.

 

 

 

 

Exelon Announces Third Quarter 2016 ResultsExelon Announces Third Quarter 2016 Results<p> <strong>​CHICAGO</strong> — Exelon Corporation (NYSE: EXC) announced third quarter 2016 consolidated earnings as follows:</p><blockquote style="margin:0px 0px 0px 40px;border:none;padding:0px;"><blockquote style="margin:0px 0px 0px 40px;border:none;padding:0px;"><blockquote style="margin:0px 0px 0px 40px;border:none;padding:0px;"><blockquote style="margin:0px 0px 0px 40px;border:none;padding:0px;"><blockquote style="margin:0px 0px 0px 40px;border:none;padding:0px;"><p style="text-align:center;"> <strong>Third Quarter</strong></p></blockquote></blockquote></blockquote></blockquote></blockquote><p style="text-align:center;"></p><table cellspacing="0" width="100%" class="ms-rteTable-exeTable"><tbody><tr class="ms-rteTableHeaderRow-exeTable"><th class="ms-rteTableHeaderEvenCol-exeTable" rowspan="1" colspan="1" style="width:33.3333%;"></th><th class="ms-rteTableHeaderOddCol-exeTable" rowspan="1" colspan="1" style="width:33.3333%;">2016</th><th class="ms-rteTableHeaderEvenCol-exeTable" rowspan="1" colspan="1" style="width:33.3333%;">2015</th></tr><tr class="ms-rteTableOddRow-exeTable"><td class="ms-rteTableEvenCol-exeTable"> <strong>GAAP Results:</strong></td><td class="ms-rteTableOddCol-exeTable"></td><td class="ms-rteTableEvenCol-exeTable"></td></tr><tr class="ms-rteTableEvenRow-exeTable"><td class="ms-rteTableEvenCol-exeTable">Net Income ($ millions)</td><td class="ms-rteTableOddCol-exeTable" style="text-align:center;">$490</td><td class="ms-rteTableEvenCol-exeTable" style="text-align:center;">$629</td></tr><tr class="ms-rteTableOddRow-exeTable"><td class="ms-rteTableEvenCol-exeTable">Diluted Earnings per Share</td><td class="ms-rteTableOddCol-exeTable" style="text-align:center;">$0.53</td><td class="ms-rteTableEvenCol-exeTable" style="text-align:center;">$0.69</td></tr><tr class="ms-rteTableEvenRow-exeTable"><td class="ms-rteTableEvenCol-exeTable"> <strong>Adjusted (non-GAAP) Operating Results:</strong></td><td class="ms-rteTableOddCol-exeTable"></td><td class="ms-rteTableEvenCol-exeTable"></td></tr><tr class="ms-rteTableOddRow-exeTable"><td class="ms-rteTableEvenCol-exeTable">Net Income ($ millions)</td><td class="ms-rteTableOddCol-exeTable" style="text-align:center;">$841</td><td class="ms-rteTableEvenCol-exeTable" style="text-align:center;">$757</td></tr><tr class="ms-rteTableEvenRow-exeTable"><td class="ms-rteTableEvenCol-exeTable">Diluted Earnings per Share</td><td class="ms-rteTableOddCol-exeTable" style="text-align:center;">$0.91</td><td class="ms-rteTableEvenCol-exeTable" style="text-align:center;">$0.83</td></tr></tbody></table><p></p><p></p><div>“During the third quarter, Exelon delivered on its commitment to provide value to our stakeholders through our strong operating performance at the legacy Exelon utilities, improved operational performance at PHI, the stellar performance of our generation assets during the summer heat, and the ability of our Constellation business to perform in low- and high-volatility market conditions,” said Christopher M. Crane, Exelon president and CEO.  “Exelon produced earnings of $0.91 per share, exceeding our guidance range. For the full year, we are raising our guidance from $2.55 to $2.75 per share.”</div><div><br></div><div><br></div><div><strong>Third Quarter Operating Results</strong><br></div><div>Exelon's GAAP Net Income decreased to $0.53 per share in the third quarter of 2016 from $0.69 per share in the third quarter of 2015. Exelon’s adjusted (non-GAAP) Operating Earnings increased to $0.91 per share in the third quarter of 2016 from $0.83 per share in the third quarter of 2015. </div><div><br></div><div>Third quarter 2016 results include $0.14 per share of PHI Adjusted (non-GAAP) Operating Earnings, the impact of which was partially offset by incremental debt and equity costs incurred in connection with the merger. Adjusted (non-GAAP) Operating Earnings in the third quarter of 2016 also reflect the following favorable factors:</div><div><ul><li>Higher utility earnings due to favorable impacts of regulatory rate increases; and<br></li><li>Favorable utility weather.<br></li><li>These factors were partially offset by:<br></li><li>Decreased capacity prices at Generation;<br></li><li>Increased income taxes given a decrease in domestic production activities production at Generation; and<br></li><li>Higher nuclear decommissioning amortization at Generation.<br></li></ul></div><div><br></div><div>Adjusted (non-GAAP) Operating Earnings for the third quarter of 2016 do not include the following items (after tax) that were included in reported GAAP Net Income:</div><div><br></div><div><table cellspacing="0" width="100%" class="ms-rteTable-exeTable"><tbody><tr class="ms-rteTableHeaderRow-exeTable"><th class="ms-rteTableHeaderEvenCol-exeTable" rowspan="1" colspan="1" style="width:33.3333%;"></th><th class="ms-rteTableHeaderOddCol-exeTable" rowspan="1" colspan="1" style="width:33.3333%;">(in millions)</th><th class="ms-rteTableHeaderEvenCol-exeTable" rowspan="1" colspan="1" style="width:33.3333%;">(per diluted share)</th></tr><tr class="ms-rteTableOddRow-exeTable"><td class="ms-rteTableEvenCol-exeTable"><strong>Exelon GAAP Net Income</strong></td><td class="ms-rteTableOddCol-exeTable" style="text-align:center;"><strong>$490</strong></td><td class="ms-rteTableEvenCol-exeTable" style="text-align:center;"><strong>$0.53</strong></td></tr><tr class="ms-rteTableEvenRow-exeTable"><td class="ms-rteTableEvenCol-exeTable">Mark-to-Market Impact of Economic Hedging Activities</td><td class="ms-rteTableOddCol-exeTable" style="text-align:center;">(54)</td><td class="ms-rteTableEvenCol-exeTable" style="text-align:center;">(0.06)</td></tr><tr class="ms-rteTableOddRow-exeTable"><td class="ms-rteTableEvenCol-exeTable">Unrealized Gains Related to NDT Fund Investments</td><td class="ms-rteTableOddCol-exeTable" style="text-align:center;">(70)</td><td class="ms-rteTableEvenCol-exeTable" style="text-align:center;">(0.07)</td></tr><tr class="ms-rteTableEvenRow-exeTable"><td class="ms-rteTableEvenCol-exeTable">Amortization of Commodity Contract Intangibles</td><td class="ms-rteTableOddCol-exeTable" style="text-align:center;">13</td><td class="ms-rteTableEvenCol-exeTable" style="text-align:center;">0.01</td></tr><tr class="ms-rteTableOddRow-exeTable"><td class="ms-rteTableEvenCol-exeTable">Merger and Integration Costs</td><td class="ms-rteTableOddCol-exeTable" style="text-align:center;">13</td><td class="ms-rteTableEvenCol-exeTable" style="text-align:center;">0.01</td></tr><tr class="ms-rteTableEvenRow-exeTable"><td class="ms-rteTableEvenCol-exeTable">Merger Commitments</td><td class="ms-rteTableOddCol-exeTable" style="text-align:center;">5</td><td class="ms-rteTableEvenCol-exeTable" style="text-align:center;">0.01</td></tr><tr class="ms-rteTableOddRow-exeTable"><td class="ms-rteTableEvenCol-exeTable">Long-Lived Asset Impairments</td><td class="ms-rteTableOddCol-exeTable" style="text-align:center;">11</td><td class="ms-rteTableEvenCol-exeTable" style="text-align:center;">0.01</td></tr><tr class="ms-rteTableEvenRow-exeTable"><td class="ms-rteTableEvenCol-exeTable">Plant Retirements and Divestitures</td><td class="ms-rteTableOddCol-exeTable" style="text-align:center;">204</td><td class="ms-rteTableEvenCol-exeTable" style="text-align:center;">0.22</td></tr><tr class="ms-rteTableOddRow-exeTable"><td class="ms-rteTableEvenCol-exeTable">Cost Management Program</td><td class="ms-rteTableOddCol-exeTable" style="text-align:center;">7</td><td class="ms-rteTableEvenCol-exeTable" style="text-align:center;">0.01</td></tr><tr class="ms-rteTableEvenRow-exeTable"><td class="ms-rteTableEvenCol-exeTable" rowspan="1">Like-Kind Exchange Tax Position</td><td class="ms-rteTableOddCol-exeTable" rowspan="1" style="text-align:center;">199</td><td class="ms-rteTableEvenCol-exeTable" rowspan="1" style="text-align:center;">0.21</td></tr><tr class="ms-rteTableOddRow-exeTable"><td class="ms-rteTableEvenCol-exeTable" rowspan="1">CENG Non-Controlling Interest</td><td class="ms-rteTableOddCol-exeTable" rowspan="1" style="text-align:center;">23</td><td class="ms-rteTableEvenCol-exeTable" rowspan="1" style="text-align:center;">0.03</td></tr><tr class="ms-rteTableFooterRow-exeTable"><td class="ms-rteTableFooterEvenCol-exeTable" rowspan="1"><strong>Exelon Adjusted (non-GAAP) Operating Earnings</strong></td><td class="ms-rteTableFooterOddCol-exeTable" rowspan="1" style="text-align:center;"><strong>$841</strong></td><td class="ms-rteTableFooterEvenCol-exeTable" rowspan="1" style="text-align:center;"><strong>$0.91</strong></td></tr></tbody></table><br></div><div>Adjusted (non-GAAP) Operating Earnings for the third quarter of 2015 do not include the following items (after tax) that were included in reported GAAP Net Income:<br></div><div><br></div><div><table cellspacing="0" width="100%" class="ms-rteTable-exeTable"><tbody><tr class="ms-rteTableHeaderRow-exeTable"><th class="ms-rteTableHeaderEvenCol-exeTable" rowspan="1" colspan="1" style="width:33.3333%;"></th><th class="ms-rteTableHeaderOddCol-exeTable" rowspan="1" colspan="1" style="width:33.3333%;">(in millions)</th><th class="ms-rteTableHeaderEvenCol-exeTable" rowspan="1" colspan="1" style="width:33.3333%;">(per diluted share)</th></tr><tr class="ms-rteTableOddRow-exeTable"><td class="ms-rteTableEvenCol-exeTable"><strong>Exelon GAAP Net Income</strong></td><td class="ms-rteTableOddCol-exeTable" style="text-align:center;"><strong>$629</strong></td><td class="ms-rteTableEvenCol-exeTable" style="text-align:center;"><strong>$0.69</strong></td></tr><tr class="ms-rteTableEvenRow-exeTable"><td class="ms-rteTableEvenCol-exeTable" rowspan="1">Mark-to-Market Impact of Economic Hedging Activities</td><td class="ms-rteTableOddCol-exeTable" rowspan="1" style="text-align:center;">85</td><td class="ms-rteTableEvenCol-exeTable" rowspan="1" style="text-align:center;">0.09</td></tr><tr class="ms-rteTableOddRow-exeTable"><td class="ms-rteTableEvenCol-exeTable" rowspan="1">Unrealized Losses Related to NDT Fund Investments</td><td class="ms-rteTableOddCol-exeTable" rowspan="1" style="text-align:center;">133</td><td class="ms-rteTableEvenCol-exeTable" rowspan="1" style="text-align:center;">0.15</td></tr><tr class="ms-rteTableEvenRow-exeTable"><td class="ms-rteTableEvenCol-exeTable" rowspan="1">Amortization of Commodity Contract Intangibles</td><td class="ms-rteTableOddCol-exeTable" rowspan="1" style="text-align:center;">2</td><td class="ms-rteTableEvenCol-exeTable" rowspan="1" style="text-align:center;">—</td></tr><tr class="ms-rteTableOddRow-exeTable"><td class="ms-rteTableEvenCol-exeTable" rowspan="1">Merger and Integration Costs</td><td class="ms-rteTableOddCol-exeTable" rowspan="1" style="text-align:center;">12</td><td class="ms-rteTableEvenCol-exeTable" rowspan="1" style="text-align:center;">0.02</td></tr><tr class="ms-rteTableEvenRow-exeTable"><td class="ms-rteTableEvenCol-exeTable" rowspan="1">Asset Retirement Obligation</td><td class="ms-rteTableOddCol-exeTable" rowspan="1" style="text-align:center;">(6)</td><td class="ms-rteTableEvenCol-exeTable" rowspan="1" style="text-align:center;">(0.01)</td></tr><tr class="ms-rteTableOddRow-exeTable"><td class="ms-rteTableEvenCol-exeTable" rowspan="1">Tax Settlements</td><td class="ms-rteTableOddCol-exeTable" rowspan="1" style="text-align:center;">(52)</td><td class="ms-rteTableEvenCol-exeTable" rowspan="1" style="text-align:center;">(0.06)</td></tr><tr class="ms-rteTableEvenRow-exeTable"><td class="ms-rteTableEvenCol-exeTable" rowspan="1">CENG Non-Controlling Interest</td><td class="ms-rteTableOddCol-exeTable" rowspan="1" style="text-align:center;">(46)</td><td class="ms-rteTableEvenCol-exeTable" rowspan="1" style="text-align:center;">(0.05)</td></tr><tr class="ms-rteTableFooterRow-exeTable"><td class="ms-rteTableFooterEvenCol-exeTable" rowspan="1"><strong>Exelon Adjusted (non-GAAP) Operating Earnings</strong></td><td class="ms-rteTableFooterOddCol-exeTable" rowspan="1" style="text-align:center;"><strong>$757</strong></td><td class="ms-rteTableFooterEvenCol-exeTable" rowspan="1" style="text-align:center;"><strong>$0.83</strong></td></tr></tbody></table><div><br></div><div><strong>Third Quarter and Recent Highlights</strong></div><div><br></div><div><ul><li><strong>ACE New Jersey Electric Distribution Rate Case:</strong> On August 24, 2016, the NJBPU approved ACEs filed settlement for its pending electric distribution rate case, which includes an increase of $45 million (before New Jersey sales and use tax) to its electric distribution base rates, based on an approved ROE of 9.75 percent. The new rates were effective immediately after approval. <br></li></ul></div><div><br></div><div><ul><li><strong>Proposed Acquisition of FitzPatrick Nuclear Station:</strong> Following the approval of the Clean Energy Standard by the New York Public Service Commission, Generation entered into a series of agreements with Entergy Nuclear FitzPatrick LLC on August 8, 2016, to acquire the James A. Fitzpatrick nuclear generating station for a cash purchase price of $110 million. Under the terms of the agreements, Generation will reimburse Entergy for approximately $200 million to $250 million of incremental costs to refuel the plant and operate and maintain the plant after the refueling outage, scheduled to end in February 2017, through the closing date. Generation will be entitled to all revenues from FitzPatrick’s electricity and capacity sales for the period commencing upon completion of the refueling outage through the closing date. The transaction is expected to close in the second quarter of 2017, and is dependent upon regulatory approval by FERC, NRC and the NYPSC. <br></li></ul></div><div><br></div><div><ul><li><strong>ConEdison Solutions Acquisition:</strong> On September 1, 2016, Generation acquired the competitive retail electric and natural gas businesses of ConEdison Solutions, a subsidiary of Consolidated Edison, Inc., for an all cash purchase price of $257 million including net working capital of $204 million.<br></li></ul></div><div><br></div><div><ul><li><strong>Like-Kind Exchange Tax Court Decision:</strong> Exelon took a position on its 1999 income tax return to defer approximately $1.2 billion of tax gain on the sale of ComEd’s fossil generating assets. On September 19, 2016, the United States Tax Court rejected Exelon's position regarding this sale and asserted that the entire gain was taxable in 1999. The IRS has also asserted a penalty of approximately $90 million for a substantial understatement of tax. As a result, Exelon recorded a charge to earnings for the penalty and after-tax interest due on the asserted penalty of approximately $200 million, of which approximately $150 million was recorded at ComEd. In early 2017, Exelon expects to appeal this decision to the U.S. Court of Appeals for the Seventh Circuit. Exelon has agreed to hold ComEd harmless from any unfavorable impacts of the after-tax interest or penalty amounts on ComEd's equity, and will not seek recovery from ComEd customers for any interest or penalty associated with the like-kind exchange tax position. Exelon is required to pay the tax, penalty and interest for the tax years before the Court at the time Exelon files its appeal. As a result, Exelon deposited $1.25 billion with the IRS in October of 2016. The remaining amount will be paid in early 2017 at the time Exelon files its appeal. <br></li></ul></div><div><br></div><div><ul><li><strong>Nuclear Operations:</strong> Generation’s nuclear fleet, including its owned output from the Salem Generating Station and 100 percent of the CENG units, produced 44,709 gigawatt-hours (GWh) in the third quarter of 2016, compared with 45,180 GWh in the third quarter of 2015. Excluding Salem, the Exelon-operated nuclear plants at ownership achieved a 96.3 percent capacity factor for the third quarter of 2016, compared with 95.5 percent for the third quarter of 2015. The number of planned refueling outage days in the third quarter of 2016 totaled 17, compared with 27 in the third quarter of 2015. There were zero non-refueling outage days in the third quarter of 2016, compared with 11 days in the third quarter of 2015.<br></li></ul></div><div><br></div><div><ul><li><strong>Fossil and Renewables Operations:</strong> The Dispatch Match rate for Generation’s gas and hydro fleet was 97.9 percent in the third quarter of 2016, compared with 99.0 percent in the third quarter of 2015, primarily reflecting gas unit outages in Texas and Maryland. Energy Capture for the wind and solar fleet was 95.2 percent in the third quarter of 2016, compared with 94.8 percent in the third quarter of 2015.<br></li></ul></div><div><br></div><div><ul><li><strong>Hedging Update:</strong> Exelon’s hedging program involves the hedging of commodity risk for Exelon’s expected generation, typically on a ratable basis over a three-year period. The proportion of expected generation hedged as of September 30, 2016, is 98.0 percent to 101.0 percent for 2016, 85.0 percent to 88.0 percent for 2017, and 54.0 percent to 57.0 percent for 2018. Expected generation is the volume of energy that best represents our financial exposure through owned or contracted capacity. The primary objective of Exelon’s hedging program is to manage market risks and protect the value of its generation and its investment-grade balance sheet, while preserving its ability to participate in improving long-term market fundamentals.<br></li></ul></div><div><br></div><div><strong>Financing Activities:</strong> </div><div><ul><li>On August 18, 2016, BGE issued and sold $850 million in aggregate principal amount of Notes consisting of $350 million of 2.400 percent Notes due in 2026 and $500 million of 3.500 percent Notes due in 2046. The proceeds of the Notes were used to redeem outstanding preference shares issued by BGE and for general corporate purposes.<br></li><li>On September 18, 2016, BGE redeemed the remaining 500,000 shares of its outstanding 6.970 percent Cumulative Preference Stock, 1993 Series and the remaining 400,000 shares of its outstanding 6.70 percent Cumulative Preference Stock, 1993 Series for $90 million, plus accrued and unpaid dividends. <br></li><li>On September 21, 2016, PECO issued $300 million in aggregate principal amount of its First and Refunding Mortgage Bonds, 1.700 percent Series due in 2021. The net proceeds from the sale of the bonds were used to refinance maturing mortgage bonds.<br></li><li>On September 30, 2016, Generation issued $150 million in aggregate principal amount of 3.93 percent Notes due in 2036. The proceeds of the Notes will be used for general corporate purposes.<br></li></ul></div><div><strong>Operating Company Results</strong></div><div><strong><br></strong></div><div><strong>ComEd</strong> consists of electricity transmission and distribution operations in Northern Illinois.</div><div><br></div><div>ComEd's third quarter 2016 GAAP Net Income was $37 million compared with $149 million in the third quarter of 2015. Adjusted (non-GAAP) Operating Earnings for the third quarter of 2016 and 2015 do not include certain items (after tax) that were included in reported GAAP Net Income as reconciled in the table below:</div><div><br></div><table cellspacing="0" width="100%" class="ms-rteTable-exeTable"><tbody><tr class="ms-rteTableHeaderRow-exeTable"><th class="ms-rteTableHeaderEvenCol-exeTable" rowspan="1" colspan="1" style="width:33.3333%;">($ millions)</th><th class="ms-rteTableHeaderOddCol-exeTable" rowspan="1" colspan="1" style="width:33.3333%;">3Q16</th><th class="ms-rteTableHeaderEvenCol-exeTable" rowspan="1" colspan="1" style="width:33.3333%;">3Q15</th></tr><tr class="ms-rteTableOddRow-exeTable"><td class="ms-rteTableEvenCol-exeTable"><strong>ComEd GAAP Net Income</strong></td><td class="ms-rteTableOddCol-exeTable" style="text-align:center;"><strong>$37</strong></td><td class="ms-rteTableEvenCol-exeTable" style="text-align:center;"><strong>$149</strong></td></tr><tr class="ms-rteTableEvenRow-exeTable"><td class="ms-rteTableEvenCol-exeTable" rowspan="1">Merger and Integration Costs</td><td class="ms-rteTableOddCol-exeTable" rowspan="1" style="text-align:center;">—</td><td class="ms-rteTableEvenCol-exeTable" rowspan="1" style="text-align:center;">2</td></tr><tr class="ms-rteTableOddRow-exeTable"><td class="ms-rteTableEvenCol-exeTable" rowspan="1">Like-Kind Exchange Tax Position</td><td class="ms-rteTableOddCol-exeTable" rowspan="1" style="text-align:center;">149</td><td class="ms-rteTableEvenCol-exeTable" rowspan="1" style="text-align:center;">—</td></tr><tr class="ms-rteTableFooterRow-exeTable"><td class="ms-rteTableFooterEvenCol-exeTable" rowspan="1"><strong>ComEd Adjusted (non-GAAP) Operating Earnings</strong></td><td class="ms-rteTableFooterOddCol-exeTable" rowspan="1" style="text-align:center;"><strong>$186</strong></td><td class="ms-rteTableFooterEvenCol-exeTable" rowspan="1" style="text-align:center;"><strong>$151</strong></td></tr></tbody></table><div>ComEd’s Adjusted (non-GAAP) Operating Earnings in the third quarter of 2016 increased by $35 million from the same quarter in 2015, primarily due to favorable weather and higher electric distribution and transmission formula rate earnings.</div><div><br></div><div>For the third quarter of 2016, cooling degree days were up 32.5 percent relative to the same period in 2015 and were 37.0 percent above normal. Total retail deliveries increased by 7.0 percent in the third quarter of 2016 compared with the same period in 2015.</div><div><br></div><div>Weather-normalized retail electric deliveries remained relatively consistent in the third quarter of 2016 compared with the same period in 2015. </div><div><br></div><div><strong>PECO</strong> consists of electricity transmission and distribution operations and retail natural gas distribution operations in Southeastern Pennsylvania.</div><div>PECO’s third quarter 2016 GAAP Net Income was $122 million compared with $90 million in the third quarter of 2015. Adjusted (non-GAAP) Operating Earnings for the third quarter of 2016 and 2015 do not include merger and integration costs that were included in reported GAAP Net Income as reconciled in the table below:</div><div><br></div><table cellspacing="0" width="100%" class="ms-rteTable-exeTable"><tbody><tr class="ms-rteTableHeaderRow-exeTable"><th class="ms-rteTableHeaderEvenCol-exeTable" rowspan="1" colspan="1" style="width:33.3333%;">($ millions)</th><th class="ms-rteTableHeaderOddCol-exeTable" rowspan="1" colspan="1" style="width:33.3333%;">3Q16</th><th class="ms-rteTableHeaderEvenCol-exeTable" rowspan="1" colspan="1" style="width:33.3333%;">3Q15</th></tr><tr class="ms-rteTableOddRow-exeTable"><td class="ms-rteTableEvenCol-exeTable"><strong>PECO GAAP Net Income</strong></td><td class="ms-rteTableOddCol-exeTable" style="text-align:center;"><strong>$122</strong></td><td class="ms-rteTableEvenCol-exeTable" style="text-align:center;"><strong>$90</strong></td></tr><tr class="ms-rteTableEvenRow-exeTable"><td class="ms-rteTableEvenCol-exeTable">Merger and Integration Costs</td><td class="ms-rteTableOddCol-exeTable" style="text-align:center;">1</td><td class="ms-rteTableEvenCol-exeTable" style="text-align:center;">1</td></tr><tr class="ms-rteTableFooterRow-exeTable"><td class="ms-rteTableFooterEvenCol-exeTable" rowspan="1"><strong>PECO Adjusted (non-GAAP) Operating Earnings</strong></td><td class="ms-rteTableFooterOddCol-exeTable" rowspan="1" style="text-align:center;"><strong>$123</strong></td><td class="ms-rteTableFooterEvenCol-exeTable" rowspan="1" style="text-align:center;"><strong>$91</strong></td></tr></tbody></table><div>PECO’s Adjusted (non-GAAP) Operating Earnings in the third quarter of 2016 increased by $32 million from the same quarter in 2015, primarily due to favorable weather and increased electric distribution revenue pursuant to a rate increase effective January 1, 2016.</div><div><br></div><div>For the third quarter of 2016, cooling degree days were up 8.6 percent relative to the same period in 2015 and were 38.6 percent above normal. Total retail electric deliveries were up 5.1 percent compared with the third quarter of 2015. Natural gas deliveries (including both retail and transportation segments) in the third quarter of 2016 were down 2.6 percent compared with the same period in 2015.</div><div><br></div><div>Weather-normalized retail electric deliveries remained relatively consistent while gas deliveries decreased 3.0 percent in the third quarter of 2016 compared with the same period in 2015. The decreased gas volumes were driven primarily by lower use per customer.</div><div><br></div><div><strong>BGE</strong> consists of electricity transmission and distribution operations and retail natural gas distribution operations in Central Maryland.</div><div><br></div><div>BGE’s third quarter 2016 GAAP Net Income was $54 million compared with $51 million in the third quarter of 2015. Adjusted (non-GAAP) Operating Earnings for the third quarter of 2016 and 2015 do not include merger and integration costs that were included in reported GAAP Net Income as reconciled in the table below:</div><div><br></div><table cellspacing="0" width="100%" class="ms-rteTable-exeTable"><tbody><tr class="ms-rteTableHeaderRow-exeTable"><th class="ms-rteTableHeaderEvenCol-exeTable" rowspan="1" colspan="1" style="width:33.3333%;">($ millions)</th><th class="ms-rteTableHeaderOddCol-exeTable" rowspan="1" colspan="1" style="width:33.3333%;">3Q16</th><th class="ms-rteTableHeaderEvenCol-exeTable" rowspan="1" colspan="1" style="width:33.3333%;">3Q15</th></tr><tr class="ms-rteTableOddRow-exeTable"><td class="ms-rteTableEvenCol-exeTable"><strong>BGE GAAP Net Income</strong></td><td class="ms-rteTableOddCol-exeTable" style="text-align:center;"><strong>$54</strong></td><td class="ms-rteTableEvenCol-exeTable" style="text-align:center;"><strong>$51</strong></td></tr><tr class="ms-rteTableEvenRow-exeTable"><td class="ms-rteTableEvenCol-exeTable">Merger and Integration Costs</td><td class="ms-rteTableOddCol-exeTable" style="text-align:center;">1</td><td class="ms-rteTableEvenCol-exeTable" style="text-align:center;">1</td></tr><tr class="ms-rteTableFooterRow-exeTable"><td class="ms-rteTableFooterEvenCol-exeTable" rowspan="1"><strong>BGE Adjusted (non-GAAP) Operating Earnings</strong></td><td class="ms-rteTableFooterOddCol-exeTable" rowspan="1" style="text-align:center;"><strong>$55</strong></td><td class="ms-rteTableFooterEvenCol-exeTable" rowspan="1" style="text-align:center;"><strong>$52</strong></td></tr></tbody></table><div>BGE’s Adjusted (non-GAAP) Operating Earnings in the third quarter of 2016 increased $3 million from the same quarter in 2015, primarily due to increased distribution revenue pursuant to increased rates effective in June 2016 and increased transmission revenue due to increased capital investments and operating and maintenance expense recoveries, partially offset by the increased amortization due to the initiation of cost recovery of the AMI programs and increased underground conduit rental fees assessed by the City of Baltimore. Due to revenue decoupling, BGE is not affected by actual weather with the exception of major storms. </div><div><br></div><div><strong>PHI</strong> 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.</div><div><br></div><div>PHI’s third quarter 2016 GAAP Net Income was $166 million. Adjusted (non-GAAP) Operating Earnings do not include certain items (after-tax) that were included in reported GAAP Net Income as reconciled in the table below:</div><div><br></div><table cellspacing="0" width="100%" class="ms-rteTable-exeTable"><tbody><tr class="ms-rteTableHeaderRow-exeTable"><th class="ms-rteTableHeaderEvenCol-exeTable" rowspan="1" colspan="1" style="width:33.3333%;">($ millions)</th><th class="ms-rteTableHeaderOddCol-exeTable" rowspan="1" colspan="1" style="width:33.3333%;">3Q16</th></tr><tr class="ms-rteTableOddRow-exeTable"><td class="ms-rteTableEvenCol-exeTable"><strong>PHI GAAP Net Income</strong></td><td class="ms-rteTableOddCol-exeTable"><strong>$166</strong></td></tr><tr class="ms-rteTableEvenRow-exeTable"><td class="ms-rteTableEvenCol-exeTable">Merger and Integration Costs</td><td class="ms-rteTableOddCol-exeTable">4</td></tr><tr class="ms-rteTableOddRow-exeTable"><td class="ms-rteTableEvenCol-exeTable" rowspan="1">Merger Commitments<sup>(1)</sup></td><td class="ms-rteTableOddCol-exeTable" rowspan="1">(40)</td></tr><tr class="ms-rteTableFooterRow-exeTable"><td class="ms-rteTableFooterEvenCol-exeTable" rowspan="1"><strong>PHI Adjusted (non-GAAP) Operating Earnings</strong></td><td class="ms-rteTableFooterOddCol-exeTable" rowspan="1"><strong>$130</strong></td></tr></tbody></table><div><span class="ms-rteFontSize-1">(1) Reflects impacts of after-tax adjustments to amounts and allocations of PHI merger commitment costs in application of the "most favored nation" provision. For the Exelon consolidated entity, total adjustments under this provision have increased total estimated merger commitment costs from $508 million at June 30, 2016 to $513 million at September 30, 2016 (with no change in a net present value basis).</span></div><div><br></div><div><strong>Generation</strong> 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, risk management services and natural gas exploration and production activities.</div><div><br></div><div>Generation's third quarter 2016 GAAP Net Income was $236 million compared with GAAP Net Income of $377 million in the third quarter of 2015. Adjusted (non-GAAP) Operating Earnings for the third quarter of 2016 and 2015 do not include various items (after tax) that were included in reported GAAP Net Income as reconciled in the table below:</div><div><br></div><table cellspacing="0" width="100%" class="ms-rteTable-exeTable"><tbody><tr class="ms-rteTableHeaderRow-exeTable"><th class="ms-rteTableHeaderEvenCol-exeTable" rowspan="1" colspan="1" style="width:33.3333%;">($ millions)</th><th class="ms-rteTableHeaderOddCol-exeTable" rowspan="1" colspan="1" style="width:33.3333%;">3Q16</th><th class="ms-rteTableHeaderEvenCol-exeTable" rowspan="1" colspan="1" style="width:33.3333%;">3Q15</th></tr><tr class="ms-rteTableOddRow-exeTable" style="text-align:center;"><td class="ms-rteTableEvenCol-exeTable"><strong>Generation GAAP Net Income</strong></td><td class="ms-rteTableOddCol-exeTable"><strong>$236</strong></td><td class="ms-rteTableEvenCol-exeTable"><strong>$377</strong></td></tr><tr class="ms-rteTableEvenRow-exeTable"><td class="ms-rteTableEvenCol-exeTable" rowspan="1"><div>Mark-to-Market Impact of Economic Hedging Activities</div><div><br></div></td><td class="ms-rteTableOddCol-exeTable" rowspan="1" style="text-align:center;">(54)</td><td class="ms-rteTableEvenCol-exeTable" rowspan="1" style="text-align:center;">85</td></tr><tr class="ms-rteTableOddRow-exeTable"><td class="ms-rteTableEvenCol-exeTable" rowspan="1">Unrealized (Gains) Losses Related to NDT Fund Investments</td><td class="ms-rteTableOddCol-exeTable" rowspan="1" style="text-align:center;">(70)</td><td class="ms-rteTableEvenCol-exeTable" rowspan="1" style="text-align:center;">133</td></tr><tr class="ms-rteTableEvenRow-exeTable"><td class="ms-rteTableEvenCol-exeTable" rowspan="1">Amortization of Commodity Contract Intangibles</td><td class="ms-rteTableOddCol-exeTable" rowspan="1" style="text-align:center;">13</td><td class="ms-rteTableEvenCol-exeTable" rowspan="1" style="text-align:center;">2</td></tr><tr class="ms-rteTableOddRow-exeTable"><td class="ms-rteTableEvenCol-exeTable" rowspan="1">Merger and Integration Costs</td><td class="ms-rteTableOddCol-exeTable" rowspan="1" style="text-align:center;">7</td><td class="ms-rteTableEvenCol-exeTable" rowspan="1" style="text-align:center;">6</td></tr><tr class="ms-rteTableEvenRow-exeTable"><td class="ms-rteTableEvenCol-exeTable" rowspan="1">Long-Lived Asset Impairments</td><td class="ms-rteTableOddCol-exeTable" rowspan="1" style="text-align:center;">10</td><td class="ms-rteTableEvenCol-exeTable" rowspan="1" style="text-align:center;">—</td></tr><tr class="ms-rteTableOddRow-exeTable"><td class="ms-rteTableEvenCol-exeTable" rowspan="1">Plant Retirements and Divestitures</td><td class="ms-rteTableOddCol-exeTable" rowspan="1" style="text-align:center;">204</td><td class="ms-rteTableEvenCol-exeTable" rowspan="1" style="text-align:center;"><span style="font-size:16px;text-align:center;"></span><span style="font-size:16px;text-align:center;"></span><span style="font-size:16px;text-align:center;">—</span></td></tr><tr class="ms-rteTableEvenRow-exeTable"><td class="ms-rteTableEvenCol-exeTable" rowspan="1">Cost Management Program</td><td class="ms-rteTableOddCol-exeTable" rowspan="1" style="text-align:center;">7</td><td class="ms-rteTableEvenCol-exeTable" rowspan="1" style="text-align:center;"><span style="font-size:16px;text-align:center;"></span><span style="font-size:16px;text-align:center;"></span><span style="font-size:16px;text-align:center;">—</span><span style="font-size:16px;text-align:center;"></span></td></tr><tr class="ms-rteTableOddRow-exeTable"><td class="ms-rteTableEvenCol-exeTable" rowspan="1">Asset Retirement Obligation</td><td class="ms-rteTableOddCol-exeTable" rowspan="1" style="text-align:center;">—</td><td class="ms-rteTableEvenCol-exeTable" rowspan="1" style="text-align:center;">(6)</td></tr><tr class="ms-rteTableEvenRow-exeTable"><td class="ms-rteTableEvenCol-exeTable" rowspan="1">Tax Settlements</td><td class="ms-rteTableOddCol-exeTable" rowspan="1" style="text-align:center;">—</td><td class="ms-rteTableEvenCol-exeTable" rowspan="1" style="text-align:center;">(52)</td></tr><tr class="ms-rteTableOddRow-exeTable"><td class="ms-rteTableEvenCol-exeTable" rowspan="1">CENG Non-Controlling Interest</td><td class="ms-rteTableOddCol-exeTable" rowspan="1" style="text-align:center;">23</td><td class="ms-rteTableEvenCol-exeTable" rowspan="1" style="text-align:center;">(46)</td></tr><tr class="ms-rteTableFooterRow-exeTable"><td class="ms-rteTableFooterEvenCol-exeTable" rowspan="1"><strong></strong><strong>Generation Adjusted (non-GAAP) Operating Earnings</strong></td><td class="ms-rteTableFooterOddCol-exeTable" rowspan="1" style="text-align:center;"><strong>$376</strong></td><td class="ms-rteTableFooterEvenCol-exeTable" rowspan="1" style="text-align:center;"><strong>$499</strong></td></tr></tbody></table><br></div><div><div>Generation’s Adjusted (non-GAAP) Operating Earnings in the third quarter of 2016 decreased by $123 million compared with the same quarter in 2015, primarily reflecting increased income taxes given a decrease in the domestic production activities deduction, decreased capacity prices and increased nuclear decommissioning amortization expense.</div><div><br></div><div><strong>Non-GAAP Financial Measures</strong></div><div><br></div><div>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 measures provided in this earnings release and <a href="/investor-relations/Documents/Q3%202016%20Press%20Release%20and%20Earnings%20Release%20Attachments%2010.24.2016.pdf">attachments</a>.  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 October 26, 2016.</div><div><br></div><div><strong>Cautionary Statements Regarding Forward-Looking Information</strong></div><div>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. 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 (PHI), 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)  Exelon’s 2015 Annual Report on Form 10-K  in (a) ITEM 1A. Risk Factors, (b) ITEM 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations and (c) ITEM 8. Financial Statements and Supplementary Data: Note 23; (2) PHI’s 2015 Annual Report on Form 10-K in (a) ITEM 1A. Risk Factors, (b) ITEM 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations and (c) ITEM 8. Financial Statements and Supplementary Data: Note 16; (3) Exelon’s Third Quarter 2016 Quarterly Report on Form 10-Q (To be filed on October 26, 2016) in (a) Part II, Other Information, ITEM 1A. Risk Factors; (b) Part 1, Financial Information, ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations and (c) Part I, Financial Information, ITEM 1. Financial Statements: Note 18 and (4) other factors discussed in filings with the SEC by the Registrants. Readers are cautioned not to place undue reliance on these forward-looking statements, 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.</div><div><br></div><br></div>http://www.exeloncorp.com/newsroom/q3-2016-earnings-press-release-and-tables10/26/2016 11:00:00 AM
Exelon Corporation Declares Dividend Exelon Corporation Declares Dividend <p><strong>​CHICAGO </strong>— The Board of Directors of Exelon Corporation declared a regular quarterly dividend of $0.318 per share on Exelon’s common stock. The dividend is payable on Dec. 9, 2016, to shareholders of record of Exelon as of 5 p.m. New York time on Nov. 15, 2016. </p>http://www.exeloncorp.com/newsroom/exelon-corporation-declares-dividend-201610/25/2016 12:00:00 PM
$27.1 Million in New Merger Benefits Approved for Delmarva Power Customers and the Public $27.1 Million in New Merger Benefits Approved for Delmarva Power Customers and the Public <div><strong>​NEWARK, Del.</strong> – Delmarva Power residential and business customers will gain an additional $27.1 million in benefits from the company’s completed merger with Exelon under  a decision by state regulators, bringing the total value of benefits to more than $72 million.</div><div><br></div><div>The additional benefits in Delaware include more funds to support energy efficiency programs to help customers save money, economic development initiatives to spark business growth and assistance for low-income residents in paying their utility bills.</div><div><br></div><div>“These new benefits will have a positive impact on customers, communities and the economy,” said Pepco Holdings President Dave Velazquez. “As part of the Exelon family, Delmarva Power - led by Region President Gary Stockbridge - is stronger and better equipped to power the business community with reliable, affordable and sustainable energy. And this is on top of the previously agreed-upon package of merger benefits.”</div><div><br></div><div>“Through the merger, we’re bringing a higher level of performance and innovation to customers and the communities we serve,” said Chris Crane, president and CEO, Exelon.  “The additional benefits in Delaware are further proof that we will deliver on our commitments, and that together we can deliver a leading-edge, modern energy system for our customers.”</div><div><br></div><div>Today’s order from the Delaware Public Service Commission provides $27.1 million in benefits to Delmarva Power customers and the public, in addition to the more than $45 million in benefits in the original merger package.</div><div><br></div><div>As part of the approval of the merger, Exelon, Delmarva Power and other parties including the Staff of the Public Service Commission, the Division of Public Advocate, and the Division of Natural Resources and Environmental Control agreed to increase the value of the state’s merger benefits to make them commensurate with other jurisdictions. The Public Service Commission approved that agreement, and the additional benefits announced today are the result.</div><div><br></div><div>The specific benefits approved today include:</div><div><br></div><div><ul><li>$8 million for energy efficiency projects in an expansion of the Energy Efficiency Investment Fund program to large industrial and commercial customers in the Delmarva Power territory.<br></li><li>$8 million for the current Energy Efficiency Investment Fund program for energy efficiency projects with 30 percent initially reserved for minorities, women, veterans, service disabled veterans and individuals with disabilities in the Delmarva territory.<br></li><li>$2 million for energy efficiency projects for Delmarva Power residential customers, with a focus on low-income renters or those who may be living in public housing. <br></li><li>$3 million to assist low-income customers who are behind on their bills.<br></li><li>$6 million to the Delaware Economic Development Office to support economic development in a manner that encourages the expansion of natural gas and seeks to entice energy efficiency and renewable companies to expand in Delaware.<br></li><li>A commitment to develop 5 megawatts of commercial renewable energy generation. <br></li></ul></div><div><br></div><div>In addition to the new benefits approved today, Delmarva Power customers are already experiencing other benefits from the merger, including new and higher standards for reliability, nearly $40 million in residential customer bill credits, and charitable giving to local nonprofits that serve Delaware communities. Other benefits previously agreed to in Delaware include $2 million for workforce development, $2 million for energy efficiency, $1 million in forgiveness of past due residential customer bills and a faster and easier process for customers to install solar power.</div><div><br></div><div>More information is available at <a href="http://www.phitomorrow.com/" target="_blank">www.PHItomorrow.com</a>.</div><div><br></div>http://www.exeloncorp.com/newsroom/$27-1-million-in-new-merger-benefits-approved-for-delmarva-power-customers-and-the-public10/18/2016 7:00:00 PM

 

 

 

 

Q4 2016 Exelon Corporation Earnings Conference CallCT2/8/2017 5:00:00 AMQ4 2016 Exelon Corporation Earnings Conference Callhttp://www.exeloncorp.com/newsroom/events/q4-2016-exelon-corporation-earnings-conference-call