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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.

 

 

Q3 2017 Exelon Corporation Earnings Conference CallCT11/2/2017 4:00:00 AMQ3 2017 Exelon Corporation Earnings Conference Callhttp://www.exeloncorp.com/newsroom/events/q3-2017-exelon-corporation-earnings-conference-call

 

 

Exelon Corporation Declares DividendExelon Corporation Declares Dividend<p><strong>CHICAGO </strong>— The Board of Directors of Exelon Corporation declared a regular quarterly dividend of $0.3275 per share on Exelon’s common stock. The dividend is payable on Dec. 8, 2017, to shareholders of record of Exelon as of 5 p.m. New York time on Nov. 15, 2017.</p><p><a href="/company/Documents/2017-09-25_External_Release_Final.pdf">Download the press release PDF version</a>​.</p>http://www.exeloncorp.com/newsroom/exelon-corporation-declares-dividend-(4)9/25/2017 2:00:00 PM
Exelon Reports Second Quarter 2017 ResultsExelon Reports Second Quarter 2017 Results<h1>Earnings Release Highlights</h1><div><ul><li>GAAP Net Income of $0.09 per share and Adjusted Operating Earnings of $0.54 per share for the second quarter of 2017</li></ul><ul><li>Reaffirming full year 2017 Adjusted Operating Earnings guidance of $2.50 to $2.80 per share<br></li></ul><ul><li>Strong utility performance to the benefit of our customers, with every utility achieving top quartile CAIDI performance as well as BGE and ComEd achieving their best ever SAIFI performance<br></li></ul><ul><li>Courts grant motions to dismiss legal challenges to the ZEC programs in Illinois and New York, preserving the economic and environmental benefits of this carbon-free generation <br></li></ul><ul><li>Exelon Nuclear completed six refueling outages with fewer unplanned outage days than a year ago<br></li></ul><ul><li>Two new combined-cycle gas turbines totaling nearly 2,200 MWs in Texas went into service, on-time and on-budget <br><br></li></ul></div><div> <strong>CHICAGO</strong> — Exelon Corporation (NYSE: EXC) today reported its financial results for the second quarter 2017. </div><div> <br> </div><div>“Exelon delivered a strong second quarter for our shareholders and customers as we continued to make gains in reliability, customer service and operational performance across our business,” said Christopher M. Crane, Exelon’s president and CEO. “Exelon can continue to provide reliable and affordable carbon-free power while preserving high-value jobs thanks to the dismissal of challenges to Zero Emissions Credit programs by courts in Illinois and New York, a win for our customers, the economy and the environment. We also were recognized with several leadership awards including being one of only 27 companies in the Billion Dollar Roundtable, recognizing our nearly $2 billion of spending with diverse and minority-owned businesses. We were also named to the Points of Light Civic 50 list of the most community-minded companies, a true credit to our people who give back their time and resources volunteering in the communities where we work and live.”</div><div> <br> </div><div>“Exelon once again delivered strong financial performance with non-GAAP operating earnings of $0.54 per share, which is toward the upper end of our guidance range,” said Jonathan W. Thayer, Exelon’s senior executive vice president and CFO. “Exelon remains on track to meet our full-year guidance of $2.50-2.80 per share as well as our debt reduction targets.”  </div><div> <br> </div><div> <strong>Second Quarter 2017</strong></div><div> <strong> <br></strong></div><div>Exelon's GAAP Net Income for the second quarter 2017 decreased to $0.09 per share from $0.29 per share in the second quarter of 2016; Adjusted (non-GAAP) Operating Earnings decreased to $0.54 per share in the second quarter of 2017 from $0.65 per share in the second quarter of 2016. For the reconciliations of GAAP to Adjusted (non-GAAP) Operating Earnings, refer to the tables beginning on [page 8]. </div><div> <br> </div><div>Adjusted (non-GAAP) Operating Earnings in the second quarter of 2017 reflect the conclusion of the Ginna reliability support services agreement, increased nuclear outage days and lower realized energy prices, partially offset by Zero Emission Credit revenue related to the New York Clean Energy Standard and higher utility earnings due to regulatory rate increases.</div><div> <br> </div><div> <strong>Operating Company Results<sup>1</sup><strong></strong></strong></div><div> <br> </div><div> <strong>ComEd</strong></div><div>ComEd's second quarter 2017 GAAP Net Income was $118 million compared with $145 million in the second quarter of 2016. ComEd’s Adjusted (non-GAAP) Operating Earnings for the second quarter 2017 were $141 million compared with $146 million in the second quarter of 2016, primarily due to favorable weather conditions in 2016, partially offset by higher electric distribution and transmission formula rate earnings. Pursuant to the Illinois Future Energy Jobs Act, beginning in 2017, customer rates for ComEd are adjusted to eliminate the favorable and unfavorable impacts of weather and customer usage patterns on distribution volumes.</div><div> <br> <sub>(1) Exelon’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.</sub></div><div> <br> </div><div> <br> </div><div> <strong>PECO</strong></div><div>PECO’s second quarter 2017 GAAP Net Income was $88 million compared with $100 million in the second quarter of 2016. PECO’s Adjusted (non-GAAP) Operating Earnings for the second quarter 2017 were $89 million compared with $101 million in the second quarter of 2016, primarily due to unfavorable weather conditions and volumes.</div><div> <br> </div><div>For the second quarter of 2017, heating degree days were down 29.9 percent relative to the same period in 2016 and were 28.9 percent below normal. Cooling degree days were up 6.1 percent relative to the same period in 2016 and were 19.3 percent above normal. Total retail electric deliveries remained relatively consistent in the second quarter of 2017 compared with the same period in 2016. Natural gas deliveries (including both retail and transportation segments) in the second quarter of 2017 were down 3.0 percent compared with the same period in 2016. </div><div> <br> </div><div>Weather-normalized retail electric deliveries remained relatively consistent, while weather-normalized natural gas deliveries were up 5.3 percent in the second quarter of 2017 compared with the same period in 2016.</div><div> <br> </div><div> <strong>BGE</strong></div><div>BGE’s second quarter 2017 GAAP Net Income was $45 million compared with $31 million in the second quarter of 2016. BGE’s Adjusted (non-GAAP) Operating Earnings for the second quarter 2017 were $46 million compared with $29 million in the second quarter of 2016, primarily due to the absence of 2016 charges for certain disallowances contained in June and July 2016 rate case orders and the net impact of approved rate increases. Due to revenue decoupling, BGE is not affected by actual weather.</div><div> <br> </div><div> <strong>PHI</strong></div><div>PHI’s second quarter 2017 GAAP Net Income was $66 million compared with $52 million in the second quarter of 2016. PHI’s Adjusted (non-GAAP) Operating Earnings for the second quarter 2017 were $63 million compared with $53 million in the second quarter of 2016, primarily due to the impact of approved rate increases in 2016 and 2017. Due to decoupling, PHI's revenues related to Pepco and DPL Maryland are not affected by actual weather.</div><div> <br> </div><div> <strong>Generation</strong></div><div>Generation's second quarter 2017 GAAP Net Loss was $250 million compared with a GAAP Net Loss of $8 million in the second quarter of 2016. Generation’s Adjusted (non-GAAP) Operating Earnings for the second quarter 2017 were $202 million compared with $328 million in the second quarter of 2016, primarily reflecting the conclusion of the Ginna reliability support services agreement, increased nuclear outage days and lower realized energy prices, partially offset by Zero Emission Credit revenue related to the New York Clean Energy Standard.</div><div> <br> </div><div>The proportion of expected generation hedged as of June 30, 2017 was 96.0 percent to 99.0  percent for 2017, 71.0 percent to 74.0 percent for 2018 and 39.0 percent to 42.0 percent for 2019.</div><div> <br> </div><div> <strong>Second Quarter and Recent Highlights</strong></div><div><ul><li> <strong>Early Retirement of Three Mile Island Facility</strong>: On May 30, 2017, Exelon announced it will permanently cease generation operations at Three Mile Island Generating Station (TMI) on or about September 30, 2019. In the second quarter of 2017, Exelon and Generation recognized one-time charges in Operating and maintenance expense of $71 million related to materials and supplies inventory reserve adjustments, employee-related costs and construction work-in-progress (CWIP) impairments, among other items. In addition to these one-time charges, there will be ongoing annual incremental non-cash charges to earnings stemming from shortening the expected economic useful life of TMI primarily related to accelerated depreciation of plant assets (including any asset retirement costs (ARC)), accelerated amortization of nuclear fuel, and additional asset retirement obligation (ARO) accretion expense associated with the changes in decommissioning timing and cost assumptions. Exelon’s and Generation’s second quarter 2017 results include an incremental $37 million of pre-tax expense for these items. The aforementioned one-time and incremental charges have been excluded from GAAP Net Income to arrive at Adjusted (non-GAAP) Operating Earnings.<br></li></ul></div><div><ul><li> <strong>EGTP Assets Held for Sale Agreement</strong>: On May 2, 2017, EGTP entered into a consent agreement with its lenders to permit EGTP to draw on its revolving credit facility and initiate an orderly sales process to sell the assets of its wholly-owned subsidiaries, the proceeds from which will first be used to pay the administrative costs of the sale, the normal and ordinary costs of operating the plants and repayment of the secured debt of EGTP, including the revolving credit facility. As a result, in the second quarter, Exelon and Generation classified certain EGTP assets and liabilities as held for sale at their respective fair values less costs to sell. At June 30, 2017, a $418 million pre-tax impairment loss was recorded within Operating and maintenance expense on Exelon's and Generation's Consolidated Statements of Operations and Comprehensive Income.<br></li></ul></div><div><ul><li> <strong>District of Columbia Power Line Undergrounding Initiative</strong>: The District of Columbia government enacted on an emergency basis (effective May 17, 2017) and thereafter on a permanent basis (effective July 11, 2017) legislation to amend the Electric Company Infrastructure Improvement Financing Act of 2014 (as amended) (the Infrastructure Improvement Financing Act) to authorize the District of Columbia Power Line Undergrounding (DC PLUG) initiative, a projected six year, $500 million project to place underground some of the District of Columbia’s most outage-prone power lines with $250 million of the project costs funded by Pepco and $250 million funded by the District of Columbia. The $250 million of project costs funded by Pepco will be recovered from Pepco's customers in the District of Columbia.  Pepco will earn a return on these project costs. The $250 million of project costs funded by the District of Columbia will come from two sources. Project costs of $187.5 million will be funded through a charge assessed on Pepco by the District of Columbia; Pepco will recover this charge from customers. The remaining costs up to $62.5 million are to be funded by the existing capital projects program of the District Department of Transportation (DDOT). Pepco will not recover or earn a return on the cost of these assets.  <br></li></ul></div><div><ul><li> <strong>Like Kind Exchange</strong>: In the third quarter 2016, the United States Tax Court rejected Exelon’s like-kind exchange position and ruled that Exelon was not entitled to defer the gain on the transaction. Exelon expects to timely appeal this decision to the U.S. Court of Appeals for the Seventh Circuit in the second half of 2017. In June of 2017, the IRS finalized its computation of tax, penalties and interest owed by Exelon pursuant to the Tax Court’s decision. As a result of the IRS’s finalization of its computation in the second quarter 2017, Exelon recorded a benefit to earnings of approximately $26 million, consisting of an income tax benefit of $50 million and a reduction of penalties of $2 million, partially offset by after-tax interest expense of $26 million, while ComEd recorded a charge to earnings of approximately $23 million, consisting of income tax expense of $15 million and after-tax interest expense of $8 million. No recovery will be sought from ComEd customers for any interest, penalty or additional income tax payment amounts resulting from the like-kind exchange tax position.</li></ul><ul><li> <strong>DPL Delaware Electric and Natural Gas Distribution Rates Case</strong>: On March 8, 2017, DPL entered into a settlement agreement with the Division of the Public Advocate, Delaware Electric Users Group and the DPSC Staff in its electric distribution rate proceeding, which provides for an increase in DPL annual electric distribution rates of $31.5 million based on an ROE of 9.7 percent and compared to the $32.1 million increase previously put into effect. On May 23, 2017, the DPSC issued an order approving the settlement agreement, with the new rates effective June 1, 2017. Pursuant to the settlement agreement, no refund of any pre-settlement interim rates put into effect is required. <br></li></ul></div><blockquote style="margin:0px 0px 0px 40px;border:none;padding:0px;"><div><p>On April 6, 2017, DPL entered into a settlement agreement with the Division of the Public Advocate and the DPSC Staff in its natural gas distribution rate proceeding, which provides for an increase in DPL annual natural gas distribution rates of $4.9 million based on an ROE of 9.7 percent. On June 6, 2017, the DPSC issued an order approving the settlement agreement, with the new rates effective July 1, 2017. Pursuant to the settlement agreement, a rate refund plus interest of approximately $5 million will be issued to customers beginning in August 2017 for which a regulatory liability has been recorded as of June 30, 2017.</p></div></blockquote><div> <div><ul><li><strong>DPL Maryland Electric Distribution Rates</strong>: On July 14, 2017, DPL filed an application with the MDPSC to increase its annual electric distribution base rates by $27 million based on a requested ROE of 10.1 percent. DPL expects a decision on the matter in the first quarter of 2018. DPL cannot predict how much of the requested increase the MDPSC will approve.<br></li></ul></div><div><ul><li><strong>Pepco District of Columbia Electric Distribution Rate Case</strong>: On July 25, 2017, the DCPSC issued an order granting Pepco an increase to its annual electric distribution base rates of $36.9 million effective Aug. 15, 2017, based on an ROE of 9.5 percent. In its decision, the DCPSC ordered that the $25.6 million customer rate credit created as a result of the Exelon and PHI merger will be provided primarily to residential customers and some small commercial customers until that amount has been exhausted, which is expected to be approximately two years. Additionally, the Commission is holding approximately $6 million to $7 million of the customer rate credit for use toward a possible new class of customers for certain senior citizens and disabled persons. The DCPSC also held that Pepco's bill stabilization adjustment, which decouples distribution revenues from utility customers from the amount of electricity delivered, will continue to be in place and that no refund of previously collected funds is required.<br></li></ul></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 44,065 gigawatt-hours (GWhs) in the second quarter of 2017, compared with 42,453 GWhs in the second quarter of 2016. Excluding Salem, the Exelon-operated nuclear plants at ownership achieved a 90.9 percent capacity factor for the second quarter of 2017, compared with 92.3 percent for the second quarter of 2016. The number of planned refueling outage days in the second quarter of 2017 totaled 125, compared with 87 in the second quarter of 2016. There were 12 non-refueling outage days in the second quarter of 2017, compared with 21 days in the second quarter of 2016.<br></li></ul></div><div><ul><li><strong>Fossil and Renewables Operations</strong>: The dispatch match rate for Generation’s gas and hydro fleet was 99.0 percent in the second quarter of 2017, compared with 97.4 percent in the second quarter of 2016. Energy capture for the wind and solar fleet was 95.5 percent in the second quarter of 2017, equal to the performance in the second quarter of 2016. </li></ul><ul><li><strong>Financing Activities:</strong><br></li></ul></div><div><ul><ul><li>On April 3, 2017, Exelon completed the remarketing of $1.15 billion aggregate principal amount of its 2.500 percent Junior Subordinated Notes due 2024, originally issued as components of its equity units issued in June 2014, issuing $1.15 billion aggregate principal amount of 3.497 percent Junior Subordinated Notes due in 2022. Exelon conducted the remarketing on behalf of the holders of equity units and did not directly receive any proceeds therefrom. Instead, Exelon received $1.15 billion on June 1, 2017 upon settlement of the forward equity purchase contract and issued approximately 33 million shares of common stock from treasury stock at the time of settlement.</li></ul></ul></div><div><ul><ul><li>On May 22, 2017, Pepco issued $200 million aggregate principal amount of its 4.150 percent First Mortgage Bonds due in 2043. The proceeds from the sale of the First Mortgage Bonds were used to repay outstanding commercial paper and for general corporate purposes.</li></ul></ul></div><div><br></div><div><strong>GAAP/Adjusted (non-GAAP) Operating Earnings Reconciliation</strong></div><div>Adjusted (non-GAAP) Operating Earnings for the second quarter of 2017 do not include the following items (after tax) that were included in reported GAAP Earnings (Loss):</div><div><br></div><div><table cellspacing="0" width="100%" class="ms-rteTable-exeTable"><tbody><tr class="ms-rteTableHeaderRow-exeTable"><th class="ms-rteTableHeaderEvenCol-exeTable" rowspan="1" colspan="1" style="width:12.5%;">(in millions)<br></th><th class="ms-rteTableHeaderOddCol-exeTable" rowspan="1" colspan="1" style="width:12.5%;">Exelon Earnings per Diluted Share</th><th class="ms-rteTableHeaderEvenCol-exeTable" rowspan="1" colspan="1" style="width:12.5%;">Exelon</th><th class="ms-rteTableHeaderOddCol-exeTable" rowspan="1" colspan="1" style="width:12.5%;">ComEd</th><th class="ms-rteTableHeaderEvenCol-exeTable" rowspan="1" colspan="1" style="width:12.5%;">PECO</th><th class="ms-rteTableHeaderOddCol-exeTable" rowspan="1" colspan="1" style="width:12.5%;">BGE</th></tr><tr class="ms-rteTableOddRow-exeTable"><td class="ms-rteTableEvenCol-exeTable"><strong>2017 GAAP Earnings (Loss)</strong></td><td class="ms-rteTableOddCol-exeTable"><strong>$</strong><strong>0.09</strong></td><td class="ms-rteTableEvenCol-exeTable"><strong>$80</strong></td><td class="ms-rteTableOddCol-exeTable"><strong>$118</strong></td><td class="ms-rteTableEvenCol-exeTable"><strong>$88</strong></td><td class="ms-rteTableOddCol-exeTable"><strong>$45</strong></td></tr><tr class="ms-rteTableEvenRow-exeTable"><td class="ms-rteTableEvenCol-exeTable">Mark-to-Market Impact of Economic Hedging Activities (net of taxes of $72 and $71, respectively)</td><td class="ms-rteTableOddCol-exeTable">0.12</td><td class="ms-rteTableEvenCol-exeTable">113</td><td class="ms-rteTableOddCol-exeTable">—<br></td><td class="ms-rteTableEvenCol-exeTable">—</td><td class="ms-rteTableOddCol-exeTable">—</td></tr><tr class="ms-rteTableOddRow-exeTable"><td class="ms-rteTableEvenCol-exeTable">Unrealized Gains Related to NDT Fund Investments (net of taxes of $20)</td><td class="ms-rteTableOddCol-exeTable">(0.05)</td><td class="ms-rteTableEvenCol-exeTable">(45)</td><td class="ms-rteTableOddCol-exeTable">—</td><td class="ms-rteTableEvenCol-exeTable">—</td><td class="ms-rteTableOddCol-exeTable">—</td></tr><tr class="ms-rteTableEvenRow-exeTable"><td class="ms-rteTableEvenCol-exeTable">Amortization of Commodity Contract Intangibles (net of taxes of $8)</td><td class="ms-rteTableOddCol-exeTable">0.01</td><td class="ms-rteTableEvenCol-exeTable">12</td><td class="ms-rteTableOddCol-exeTable">—</td><td class="ms-rteTableEvenCol-exeTable">—</td><td class="ms-rteTableOddCol-exeTable">—</td></tr><tr class="ms-rteTableOddRow-exeTable"><td class="ms-rteTableEvenCol-exeTable">Merger and Integration Costs (net of taxes of $9, $1 and $7, respectively)</td><td class="ms-rteTableOddCol-exeTable">0.01</td><td class="ms-rteTableEvenCol-exeTable">15</td><td class="ms-rteTableOddCol-exeTable">—</td><td class="ms-rteTableEvenCol-exeTable">—</td><td class="ms-rteTableOddCol-exeTable">—</td></tr><tr class="ms-rteTableEvenRow-exeTable"><td class="ms-rteTableEvenCol-exeTable">Merger Commitments (net of taxes of $3)</td><td class="ms-rteTableOddCol-exeTable">—</td><td class="ms-rteTableEvenCol-exeTable">—</td><td class="ms-rteTableOddCol-exeTable">—</td><td class="ms-rteTableEvenCol-exeTable">—</td><td class="ms-rteTableOddCol-exeTable">—</td></tr><tr class="ms-rteTableOddRow-exeTable"><td class="ms-rteTableEvenCol-exeTable">Long-Lived Asset Impairments (net of taxes of $172 and $171, respectively)</td><td class="ms-rteTableOddCol-exeTable">0.29</td><td class="ms-rteTableEvenCol-exeTable">268</td><td class="ms-rteTableOddCol-exeTable">—</td><td class="ms-rteTableEvenCol-exeTable">—</td><td class="ms-rteTableOddCol-exeTable">—</td></tr><tr class="ms-rteTableEvenRow-exeTable"><td class="ms-rteTableEvenCol-exeTable">Plant Retirements and Divestitures (net of taxes of $42)</td><td class="ms-rteTableOddCol-exeTable">0.07</td><td class="ms-rteTableEvenCol-exeTable">66</td><td class="ms-rteTableOddCol-exeTable">—</td><td class="ms-rteTableEvenCol-exeTable">—</td><td class="ms-rteTableOddCol-exeTable">—</td></tr><tr class="ms-rteTableOddRow-exeTable"><td class="ms-rteTableEvenCol-exeTable">Cost Management Program (net of taxes of $4, $1, $1 and $3 respectively</td><td class="ms-rteTableOddCol-exeTable">0.01</td><td class="ms-rteTableEvenCol-exeTable">6</td><td class="ms-rteTableOddCol-exeTable">—</td><td class="ms-rteTableEvenCol-exeTable">1</td><td class="ms-rteTableOddCol-exeTable">1</td></tr><tr class="ms-rteTableEvenRow-exeTable"><td class="ms-rteTableEvenCol-exeTable" rowspan="1">Like-Kind Exchange Tax Position (net of taxes of $66 and $9, respectively)</td><td class="ms-rteTableOddCol-exeTable" rowspan="1">(0.03)</td><td class="ms-rteTableEvenCol-exeTable" rowspan="1">(26)</td><td class="ms-rteTableOddCol-exeTable" rowspan="1">23</td><td class="ms-rteTableEvenCol-exeTable" rowspan="1">—</td><td class="ms-rteTableOddCol-exeTable" rowspan="1">—</td></tr><tr class="ms-rteTableOddRow-exeTable"><td class="ms-rteTableEvenCol-exeTable" rowspan="1">CENG Noncontrolling Interest (net of taxes of $5)</td><td class="ms-rteTableOddCol-exeTable" rowspan="1">0.02</td><td class="ms-rteTableEvenCol-exeTable" rowspan="1">20</td><td class="ms-rteTableOddCol-exeTable" rowspan="1">—</td><td class="ms-rteTableEvenCol-exeTable" rowspan="1">—</td><td class="ms-rteTableOddCol-exeTable" rowspan="1">—</td></tr><tr class="ms-rteTableFooterRow-exeTable"><td class="ms-rteTableFooterEvenCol-exeTable" rowspan="1"><strong>2017 Adjusted (non-GAAP) Operating Earnings</strong></td><td class="ms-rteTableFooterOddCol-exeTable" rowspan="1"><strong>$0.54</strong></td><td class="ms-rteTableFooterEvenCol-exeTable" rowspan="1"><strong>$509</strong></td><td class="ms-rteTableFooterOddCol-exeTable" rowspan="1"><strong>$141</strong></td><td class="ms-rteTableFooterEvenCol-exeTable" rowspan="1"><strong>$89</strong></td><td class="ms-rteTableFooterOddCol-exeTable" rowspan="1"><strong>$46</strong></td></tr></tbody></table><br></div><div><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:159px;">(in millions)</th><th class="ms-rteTableHeaderOddCol-exeTable" rowspan="1" colspan="1" style="width:111px;">PHI</th><th class="ms-rteTableHeaderEvenCol-exeTable" rowspan="1" colspan="1" style="width:95px;">Generation</th></tr><tr class="ms-rteTableOddRow-exeTable"><td class="ms-rteTableEvenCol-exeTable"><span style="font-family:benton-sans-medium;">2017 GAAP Earnings (Loss)</span></td><td class="ms-rteTableOddCol-exeTable"><span style="font-family:benton-sans-medium;">$66</span></td><td class="ms-rteTableEvenCol-exeTable"><strong>$(250)</strong></td></tr><tr class="ms-rteTableEvenRow-exeTable"><td class="ms-rteTableEvenCol-exeTable">Mark-to-Market Impact of Economic Hedging Activities (net of taxes of $72 and $71, respectively)</td><td class="ms-rteTableOddCol-exeTable">—</td><td class="ms-rteTableEvenCol-exeTable">114</td></tr><tr class="ms-rteTableOddRow-exeTable"><td class="ms-rteTableEvenCol-exeTable">Unrealized Gains Related to NDT Fund Investments (net of taxes of $20)</td><td class="ms-rteTableOddCol-exeTable">—</td><td class="ms-rteTableEvenCol-exeTable">(45)</td></tr><tr class="ms-rteTableEvenRow-exeTable"><td class="ms-rteTableEvenCol-exeTable">Amortization of Commodity Contract Intangibles (net of taxes of $8)</td><td class="ms-rteTableOddCol-exeTable">—</td><td class="ms-rteTableEvenCol-exeTable">12</td></tr><tr class="ms-rteTableOddRow-exeTable"><td class="ms-rteTableEvenCol-exeTable">Merger and Integration Costs (net of taxes of $9, $1 and $7, respectively)</td><td class="ms-rteTableOddCol-exeTable">1</td><td class="ms-rteTableEvenCol-exeTable">12</td></tr><tr class="ms-rteTableEvenRow-exeTable"><td class="ms-rteTableEvenCol-exeTable">Merger Commitments (net of taxes of $3)</td><td class="ms-rteTableOddCol-exeTable">(4)</td><td class="ms-rteTableEvenCol-exeTable">—</td></tr><tr class="ms-rteTableOddRow-exeTable"><td class="ms-rteTableEvenCol-exeTable">Long-Lived Asset Impairments (net of taxes of $172 and $171, respectively)</td><td class="ms-rteTableOddCol-exeTable">—</td><td class="ms-rteTableEvenCol-exeTable">269</td></tr><tr class="ms-rteTableEvenRow-exeTable"><td class="ms-rteTableEvenCol-exeTable">Plant Retirements and Divestitures (net of taxes of $42)</td><td class="ms-rteTableOddCol-exeTable">—</td><td class="ms-rteTableEvenCol-exeTable">66</td></tr><tr class="ms-rteTableOddRow-exeTable"><td class="ms-rteTableEvenCol-exeTable">Cost Management Program (net of taxes of $4, $1, $1 and $3 respectively</td><td class="ms-rteTableOddCol-exeTable">—</td><td class="ms-rteTableEvenCol-exeTable">4</td></tr><tr class="ms-rteTableEvenRow-exeTable"><td class="ms-rteTableEvenCol-exeTable" rowspan="1">Like-Kind Exchange Tax Position (net of taxes of $66 and $9, respectively)</td><td class="ms-rteTableOddCol-exeTable" rowspan="1">—</td><td class="ms-rteTableEvenCol-exeTable" rowspan="1">—</td></tr><tr class="ms-rteTableOddRow-exeTable"><td class="ms-rteTableEvenCol-exeTable" rowspan="1">CENG Noncontrolling Interest (net of taxes of $5)</td><td class="ms-rteTableOddCol-exeTable" rowspan="1">—</td><td class="ms-rteTableEvenCol-exeTable" rowspan="1">20</td></tr><tr class="ms-rteTableFooterRow-exeTable"><td class="ms-rteTableFooterEvenCol-exeTable" rowspan="1"><span style="font-family:benton-sans-medium;">2017 Adjusted (non-GAAP) Operating Earnings</span></td><td class="ms-rteTableFooterOddCol-exeTable" rowspan="1"><strong>$63</strong></td><td class="ms-rteTableFooterEvenCol-exeTable" rowspan="1"><strong>$202</strong></td></tr></tbody></table></div><br> </div><div><br></div><div><br></div><div>Adjusted (non-GAAP) Operating Earnings for the second quarter of 2016 do not include the following items (after tax) that were included in reported GAAP Earnings (Loss):<br></div><div><br></div><div><br></div><div><div><br></div><div><table cellspacing="0" width="100%" class="ms-rteTable-exeTable"><tbody><tr class="ms-rteTableHeaderRow-exeTable"><th class="ms-rteTableHeaderEvenCol-exeTable" rowspan="1" colspan="1" style="width:159px;">(in millions)<br></th><th class="ms-rteTableHeaderOddCol-exeTable" rowspan="1" colspan="1" style="width:111px;">Exelon Earnings per Diluted Share</th><th class="ms-rteTableHeaderEvenCol-exeTable" rowspan="1" colspan="1" style="width:95px;">Exelon</th><th class="ms-rteTableHeaderOddCol-exeTable" rowspan="1" colspan="1" style="width:101px;">ComEd</th><th class="ms-rteTableHeaderEvenCol-exeTable" rowspan="1" colspan="1" style="width:89px;">PECO</th><th class="ms-rteTableHeaderOddCol-exeTable" rowspan="1" colspan="1" style="width:84px;">BGE</th></tr><tr class="ms-rteTableOddRow-exeTable"><td class="ms-rteTableEvenCol-exeTable"><span style="font-family:benton-sans-medium;">2016 GAAP Earnings (Loss)</span></td><td class="ms-rteTableOddCol-exeTable"><span style="font-family:benton-sans-medium;">$</span><span style="font-family:benton-sans-medium;">0.29</span></td><td class="ms-rteTableEvenCol-exeTable"><span style="font-family:benton-sans-medium;">$267</span></td><td class="ms-rteTableOddCol-exeTable"><span style="font-family:benton-sans-medium;">$145</span></td><td class="ms-rteTableEvenCol-exeTable"><span style="font-family:benton-sans-medium;">$100</span></td><td class="ms-rteTableOddCol-exeTable"><span style="font-family:benton-sans-medium;">$31</span></td></tr><tr class="ms-rteTableEvenRow-exeTable"><td class="ms-rteTableEvenCol-exeTable">Mark-to-Market Impact of Economic Hedging Activities (net of taxes of $120 and $119, respectively)</td><td class="ms-rteTableOddCol-exeTable">0.20</td><td class="ms-rteTableEvenCol-exeTable">185</td><td class="ms-rteTableOddCol-exeTable">—<br></td><td class="ms-rteTableEvenCol-exeTable">—</td><td class="ms-rteTableOddCol-exeTable">—</td></tr><tr class="ms-rteTableOddRow-exeTable"><td class="ms-rteTableEvenCol-exeTable">Unrealized Gains Related to NDT Fund Investments (net of taxes of $29)</td><td class="ms-rteTableOddCol-exeTable">(0.03)</td><td class="ms-rteTableEvenCol-exeTable">(27)</td><td class="ms-rteTableOddCol-exeTable">—</td><td class="ms-rteTableEvenCol-exeTable">—</td><td class="ms-rteTableOddCol-exeTable">—</td></tr><tr class="ms-rteTableEvenRow-exeTable"><td class="ms-rteTableEvenCol-exeTable">Amortization of Commodity Contract Intangibles (net of taxes of $4)</td><td class="ms-rteTableOddCol-exeTable">0.01</td><td class="ms-rteTableEvenCol-exeTable">8</td><td class="ms-rteTableOddCol-exeTable">—</td><td class="ms-rteTableEvenCol-exeTable">—</td><td class="ms-rteTableOddCol-exeTable">—</td></tr><tr class="ms-rteTableOddRow-exeTable"><td class="ms-rteTableEvenCol-exeTable">Merger and Integrations Costs (net of taxes of $0, $0, $2 and $2, respectively)</td><td class="ms-rteTableOddCol-exeTable">—<br></td><td class="ms-rteTableEvenCol-exeTable">1</td><td class="ms-rteTableOddCol-exeTable">1</td><td class="ms-rteTableEvenCol-exeTable">—</td><td class="ms-rteTableOddCol-exeTable">(3)</td></tr><tr class="ms-rteTableEvenRow-exeTable"><td class="ms-rteTableEvenCol-exeTable">Merger Commitments (entire amount represents tax expense)</td><td class="ms-rteTableOddCol-exeTable">—</td><td class="ms-rteTableEvenCol-exeTable">1</td><td class="ms-rteTableOddCol-exeTable">—</td><td class="ms-rteTableEvenCol-exeTable">—</td><td class="ms-rteTableOddCol-exeTable">—</td></tr><tr class="ms-rteTableOddRow-exeTable"><td class="ms-rteTableEvenCol-exeTable">Long-Lived Asset Impairments (net of taxes of $14)</td><td class="ms-rteTableOddCol-exeTable">0.02</td><td class="ms-rteTableEvenCol-exeTable">22</td><td class="ms-rteTableOddCol-exeTable">—</td><td class="ms-rteTableEvenCol-exeTable">—</td><td class="ms-rteTableOddCol-exeTable">—</td></tr><tr class="ms-rteTableEvenRow-exeTable"><td class="ms-rteTableEvenCol-exeTable">Plant Retirements and Divestitures (net of taxes of $85)</td><td class="ms-rteTableOddCol-exeTable">0.14</td><td class="ms-rteTableEvenCol-exeTable">133</td><td class="ms-rteTableOddCol-exeTable">—</td><td class="ms-rteTableEvenCol-exeTable">—</td><td class="ms-rteTableOddCol-exeTable">—</td></tr><tr class="ms-rteTableOddRow-exeTable"><td class="ms-rteTableEvenCol-exeTable">Cost Management Program (net of taxes of $3, $0, $0 and $2, respectively)</td><td class="ms-rteTableOddCol-exeTable">0.01</td><td class="ms-rteTableEvenCol-exeTable">6</td><td class="ms-rteTableOddCol-exeTable">—</td><td class="ms-rteTableEvenCol-exeTable">1</td><td class="ms-rteTableOddCol-exeTable">1</td></tr><tr class="ms-rteTableEvenRow-exeTable"><td class="ms-rteTableEvenCol-exeTable" rowspan="1">CENG Noncontrolling Interest (net of taxes of $1)</td><td class="ms-rteTableOddCol-exeTable" rowspan="1">0.01</td><td class="ms-rteTableEvenCol-exeTable" rowspan="1">8</td><td class="ms-rteTableOddCol-exeTable" rowspan="1">—</td><td class="ms-rteTableEvenCol-exeTable" rowspan="1">—</td><td class="ms-rteTableOddCol-exeTable" rowspan="1">—</td></tr><tr class="ms-rteTableFooterRow-exeTable"><td class="ms-rteTableFooterEvenCol-exeTable" rowspan="1"><span style="font-family:benton-sans-medium;">2016 Adjusted (non-GAAP) Operating Earnings</span></td><td class="ms-rteTableFooterOddCol-exeTable" rowspan="1"><span style="font-family:benton-sans-medium;">$0.65</span></td><td class="ms-rteTableFooterEvenCol-exeTable" rowspan="1"><span style="font-family:benton-sans-medium;">$604</span></td><td class="ms-rteTableFooterOddCol-exeTable" rowspan="1"><span style="font-family:benton-sans-medium;">$146</span></td><td class="ms-rteTableFooterEvenCol-exeTable" rowspan="1"><span style="font-family:benton-sans-medium;">$101</span></td><td class="ms-rteTableFooterOddCol-exeTable" rowspan="1"><span style="font-family:benton-sans-medium;">$29</span></td></tr></tbody></table><br></div><br></div><div><br></div><div><br></div><div><br></div><div></div><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:159px;">(in millions)</th><th class="ms-rteTableHeaderOddCol-exeTable" rowspan="1" colspan="1" style="width:111px;">PHI</th><th class="ms-rteTableHeaderEvenCol-exeTable" rowspan="1" colspan="1" style="width:95px;">Generation</th></tr><tr class="ms-rteTableOddRow-exeTable"><td class="ms-rteTableEvenCol-exeTable"><span style="font-family:benton-sans-medium;">2016 GAAP Earnings (Loss)</span></td><td class="ms-rteTableOddCol-exeTable"><span style="font-family:benton-sans-medium;">$52</span></td><td class="ms-rteTableEvenCol-exeTable"><span style="font-family:benton-sans-medium;">$(8)</span></td></tr><tr class="ms-rteTableEvenRow-exeTable"><td class="ms-rteTableEvenCol-exeTable">Mark-to-Market Impact of Economic Hedging Activities (net of taxes of $120 and $119, respectively)</td><td class="ms-rteTableOddCol-exeTable">—</td><td class="ms-rteTableEvenCol-exeTable">185</td></tr><tr class="ms-rteTableOddRow-exeTable"><td class="ms-rteTableEvenCol-exeTable">Unrealized Gains Related to NDT Fund Investments (net of taxes of $29)</td><td class="ms-rteTableOddCol-exeTable">—</td><td class="ms-rteTableEvenCol-exeTable">(27)</td></tr><tr class="ms-rteTableEvenRow-exeTable"><td class="ms-rteTableEvenCol-exeTable">Amortization of Commodity Contract Intangibles (net of taxes of $4)</td><td class="ms-rteTableOddCol-exeTable">—</td><td class="ms-rteTableEvenCol-exeTable">8</td></tr><tr class="ms-rteTableOddRow-exeTable"><td class="ms-rteTableEvenCol-exeTable">Merger and Integrations Costs (net of taxes of $0, $0, $2 and $2, respectively)<br></td><td class="ms-rteTableOddCol-exeTable">—<br></td><td class="ms-rteTableEvenCol-exeTable">3</td></tr><tr class="ms-rteTableEvenRow-exeTable"><td class="ms-rteTableEvenCol-exeTable">Merger Commitments (entire amount represents tax expense)</td><td class="ms-rteTableOddCol-exeTable">1</td><td class="ms-rteTableEvenCol-exeTable">—</td></tr><tr class="ms-rteTableOddRow-exeTable"><td class="ms-rteTableEvenCol-exeTable">Long-Lived Asset Impairments (net of taxes of $14)</td><td class="ms-rteTableOddCol-exeTable">—</td><td class="ms-rteTableEvenCol-exeTable">22</td></tr><tr class="ms-rteTableEvenRow-exeTable"><td class="ms-rteTableEvenCol-exeTable">Plant Retirements and Divestitures (net of taxes of $85)<br></td><td class="ms-rteTableOddCol-exeTable">—</td><td class="ms-rteTableEvenCol-exeTable">133</td></tr><tr class="ms-rteTableOddRow-exeTable"><td class="ms-rteTableEvenCol-exeTable">Cost Management Program (net of taxes of $3, $0, $0 and $2, respectively)</td><td class="ms-rteTableOddCol-exeTable">—</td><td class="ms-rteTableEvenCol-exeTable">4</td></tr><tr class="ms-rteTableEvenRow-exeTable"><td class="ms-rteTableEvenCol-exeTable" rowspan="1">CENG Noncontrolling Interest (net of taxes of $1)</td><td class="ms-rteTableOddCol-exeTable" rowspan="1">—</td><td class="ms-rteTableEvenCol-exeTable" rowspan="1">8</td></tr><tr class="ms-rteTableFooterRow-exeTable"><td class="ms-rteTableFooterEvenCol-exeTable" rowspan="1"><span style="font-family:benton-sans-medium;">2016 Adjusted (non-GAAP) Operating Earnings</span></td><td class="ms-rteTableFooterOddCol-exeTable" rowspan="1"><strong>$53</strong><br></td><td class="ms-rteTableFooterEvenCol-exeTable" rowspan="1"><strong></strong><strong>$328</strong></td></tr></tbody></table><br></div><span></span><br></div><div><div><sub>Note: 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 ranged from 39 percent to 41 percent. Under IRS regulations, NDT fund investment returns are taxed at differing rates for investments in qualified vs. non-qualified funds. The tax rates applied to unrealized gains and losses related to NDT Fund investments were 31.4 percent and 47.5 percent for the three and six months ended June 30, 2017, respectively, and 51.6 percent and 52.5 percent for the three and six months ended June 30, 2016, respectively.</sub></div><div><br></div><br></div><div><div><strong>Webcast Information</strong></div><div>Exelon will discuss second quarter 2017 earnings in a one-hour conference call scheduled for today at 10 a.m. Central Time (11 a.m. Eastern Time). The webcast and associated materials can be accessed at <a href="/investor-relations">www.exeloncorp.com/investor-relations</a>. </div><div><br></div></div><div><br></div><div><div><strong>Non-GAAP Financial Measures</strong></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 Net Income measures provided in this earnings release and <a href="/company/Documents/Press%20Release-Earnings%20Tables/Final%202Q17%20Earnings%20Release%20Attachments%208.1.2017.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 Aug. 2, 2017.</div><div> </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, 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' 2016 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 24, Commitments and Contingencies; (2) the Registrants' Second Quarter 2017 Quarterly Report on Form 10-Q (to be filed on August 2, 2017) 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 17, Commitments and Contingencies; and (3) 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><br></div>http://www.exeloncorp.com/newsroom/exelon-reports-second-quarter-2017-results8/2/2017 10:00:00 AM
Exelon Announces First Quarter 2017 ResultsExelon Announces First Quarter 2017 Results<strong>CHICAGO</strong> — Exelon Corporation (NYSE: EXC) announced first quarter 2017 consolidated earnings as follows:<div><br><div><div><strong style="text-align:right;">                                                                             First Quarter</strong></div><div><strong style="text-align:right;">                                                           2017                                     2016    </strong></div><div><br></div><div><table cellspacing="0" width="100%" class="ms-rteTable-exeTable"><tbody><tr class="ms-rteTableEvenRow-exeTable"><td class="ms-rteTableEvenCol-exeTable" style="width:33.3333%;"><strong>GAAP Results:</strong></td><td class="ms-rteTableOddCol-exeTable" style="width:33.3333%;"></td><td class="ms-rteTableEvenCol-exeTable" style="width:33.3333%;"></td></tr><tr class="ms-rteTableOddRow-exeTable"><td class="ms-rteTableEvenCol-exeTable">Net Income ($ millions)</td><td class="ms-rteTableOddCol-exeTable">$995</td><td class="ms-rteTableEvenCol-exeTable">$173</td></tr><tr class="ms-rteTableEvenRow-exeTable"><td class="ms-rteTableEvenCol-exeTable">Diluted Earnings per Share</td><td class="ms-rteTableOddCol-exeTable">$1.07</td><td class="ms-rteTableEvenCol-exeTable">$0.19</td></tr><tr class="ms-rteTableOddRow-exeTable"><td class="ms-rteTableEvenCol-exeTable"><strong>Adjusted (non-GAAP) Operating Results:</strong></td><td class="ms-rteTableOddCol-exeTable"></td><td class="ms-rteTableEvenCol-exeTable"></td></tr><tr class="ms-rteTableEvenRow-exeTable"><td class="ms-rteTableEvenCol-exeTable">Net Income ($ millions)</td><td class="ms-rteTableOddCol-exeTable">$605</td><td class="ms-rteTableEvenCol-exeTable">$632</td></tr><tr class="ms-rteTableOddRow-exeTable"><td class="ms-rteTableEvenCol-exeTable">Diluted Earnings per Share</td><td class="ms-rteTableOddCol-exeTable">$0.65</td><td class="ms-rteTableEvenCol-exeTable">$0.68</td></tr></tbody></table><br></div><div><br></div><div> "Exelon delivered solid performance for shareholders and customers in the first quarter, achieving record reliability and operational excellence. We marked the one-year anniversary of our merger with Pepco Holdings, successfully executing on merger commitments and integration targets, while delivering tangible benefits to our new customers," said Christopher M. Crane, Exelon President and CEO. “We completed the acquisition of the FitzPatrick power plant, and recently began earning zero-emissions credit revenues in New York, helping to preserve jobs and deliver clean energy across the state. I am proud of the hard work of our 34,000 employees who safely deliver on our commitments to customers, shareholders and communities every day." </div><div><br></div><div><br></div><h3> First Quarter Operating Results </h3><div><br></div><div> Exelon's GAAP Net Income increased to $1.07 per share in the first quarter of 2017 from $0.19 per share in the first quarter of 2016. Exelon’s adjusted (non-GAAP) Operating Earnings decreased to $0.65 per share in the first quarter of 2017 from $0.68 per share in the first quarter of 2016. </div><div><br></div><div> First quarter 2017 results include $0.09 per share of PHI Adjusted (non-GAAP) Operating Earnings. Adjusted (non-GAAP) Operating Earnings in the first quarter of 2017 reflect the following unfavorable factors: </div><div>• Unfavorable impact of declining natural gas prices on Generation's natural gas portfolio </div><div>• Unfavorable impact of increased nuclear outage days at Generation </div><div>• Lower capacity prices at Generation, and </div><div>• Lower realized energy prices at Generation </div><div><br></div><div>These factors were partially offset by: </div><div>• Higher utility earnings due to regulatory rate increases, and </div><div>• Higher revenue at Generation under the Ginna Reliability Support Services</div><div>Agreement </div><div><br></div><div> Adjusted (non-GAAP) Operating Earnings for the first quarter of 2017 do not include the following items (after tax) that were included in reported GAAP Net Income: </div><div><br></div><div> <strong>                                                      (in millions)                  (per diluted share)</strong></div><div><table cellspacing="0" width="100%" class="ms-rteTable-exeTable"><tbody><tr class="ms-rteTableEvenRow-exeTable"><td class="ms-rteTableEvenCol-exeTable" style="width:33.3333%;">Exelon GAAP Net Income</td><td class="ms-rteTableOddCol-exeTable" style="width:33.3333%;text-align:center;">$995</td><td class="ms-rteTableEvenCol-exeTable" style="width:33.3333%;text-align:center;">$1.07</td></tr><tr class="ms-rteTableOddRow-exeTable"><td class="ms-rteTableEvenCol-exeTable">Mark-to-Market Impact of Economic Hedging Activities</td><td class="ms-rteTableOddCol-exeTable" style="text-align:center;">30</td><td class="ms-rteTableEvenCol-exeTable" style="text-align:center;">0.03</td></tr><tr class="ms-rteTableEvenRow-exeTable"><td class="ms-rteTableEvenCol-exeTable">Unrealized Gains Related to Nuclear Decommissioning Trust (NDT) Fund Investments </td><td class="ms-rteTableOddCol-exeTable" style="text-align:center;">(99)</td><td class="ms-rteTableEvenCol-exeTable" style="text-align:center;">(0.10)</td></tr><tr class="ms-rteTableOddRow-exeTable"><td class="ms-rteTableEvenCol-exeTable">Amortization of Commodity Contract Intangibles</td><td class="ms-rteTableOddCol-exeTable" style="text-align:center;"><span style="font-size:16px;">3</span></td><td class="ms-rteTableEvenCol-exeTable" style="text-align:center;"><span style="font-size:16px;">—</span></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;"><span style="font-size:16px;">25</span></td><td class="ms-rteTableEvenCol-exeTable" style="text-align:center;"><span style="font-size:16px;">0.03</span><span style="font-size:16px;"></span></td></tr><tr class="ms-rteTableOddRow-exeTable"><td class="ms-rteTableEvenCol-exeTable" rowspan="1">Merger Commitments (1)</td><td class="ms-rteTableOddCol-exeTable" rowspan="1" style="text-align:center;">(137)</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">Reassessment of State Deferred Income Taxes</td><td class="ms-rteTableOddCol-exeTable" style="text-align:center;">(20)</td><td class="ms-rteTableEvenCol-exeTable" style="text-align:center;">(0.02)</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;"><span style="font-size:16px;">4</span></td><td class="ms-rteTableEvenCol-exeTable" style="text-align:center;"><span style="font-size:16px;">—</span></td></tr><tr class="ms-rteTableEvenRow-exeTable"><td class="ms-rteTableEvenCol-exeTable"><span style="font-size:16px;">Tax Settlement</span></td><td class="ms-rteTableOddCol-exeTable" style="text-align:center;"><span style="font-size:16px;"> (5 )</span></td><td class="ms-rteTableEvenCol-exeTable" style="text-align:center;"><span style="font-size:16px;text-align:center;">(0.01 )</span><span style="font-size:16px;text-align:center;"></span></td></tr><tr class="ms-rteTableOddRow-exeTable"><td class="ms-rteTableEvenCol-exeTable">Bargain Purchase Gain</td><td class="ms-rteTableOddCol-exeTable" style="text-align:center;"><span style="font-size:16px;">(226 )</span></td><td class="ms-rteTableEvenCol-exeTable" style="text-align:center;"><span style="font-size:16px;">(0.24 )</span></td></tr><tr class="ms-rteTableEvenRow-exeTable"><td class="ms-rteTableEvenCol-exeTable" rowspan="1">CENG Noncontrolling Interest </td><td class="ms-rteTableOddCol-exeTable" rowspan="1" style="text-align:center;">35</td><td class="ms-rteTableEvenCol-exeTable" rowspan="1" style="text-align:center;">0.04</td></tr><tr class="ms-rteTableFooterRow-exeTable"><td class="ms-rteTableFooterEvenCol-exeTable" rowspan="1"><strong>Exelon </strong><strong>Adjusted (non-GAAP) Operating Earnings</strong></td><td class="ms-rteTableFooterOddCol-exeTable" rowspan="1" style="text-align:center;"><strong>$605</strong></td><td class="ms-rteTableFooterEvenCol-exeTable" rowspan="1" style="text-align:center;"><strong>$0.65</strong></td></tr></tbody></table><strong> </strong>       </div><div> (1) Represents a decrease in reserves for uncertain tax positions related to the deductibility of certain merger commitments associated with the 2012 CEG and 2016 PHI acquisitions. </div><div><br></div><div>Adjusted (non-GAAP) Operating Earnings for the first quarter of 2016 do not include the following items (after tax) that were included in reported GAAP Net Income: </div><div><br></div><div><div><span style="font-family:benton-sans-medium;">                                                      (in millions)                  (per diluted share)</span></div><div><table cellspacing="0" width="100%" class="ms-rteTable-exeTable"><tbody><tr class="ms-rteTableEvenRow-exeTable"><td class="ms-rteTableEvenCol-exeTable" style="width:212px;">Exelon GAAP Net Income</td><td class="ms-rteTableOddCol-exeTable" style="width:210px;text-align:center;"><strong>$173</strong><br></td><td class="ms-rteTableEvenCol-exeTable" style="width:211px;text-align:center;"><strong>0.19</strong><br></td></tr><tr class="ms-rteTableOddRow-exeTable"><td class="ms-rteTableEvenCol-exeTable">Mark-to-Market Impact of Economic Hedging Activities</td><td class="ms-rteTableOddCol-exeTable" style="text-align:center;">(64)</td><td class="ms-rteTableEvenCol-exeTable" style="text-align:center;">(0.07)</td></tr><tr class="ms-rteTableEvenRow-exeTable"><td class="ms-rteTableEvenCol-exeTable">Unrealized Gains Related to Nuclear Decommissioning Trust (NDT) Fund Investments</td><td class="ms-rteTableOddCol-exeTable" style="text-align:center;">(31)</td><td class="ms-rteTableEvenCol-exeTable" style="text-align:center;">(0.03)</td></tr><tr class="ms-rteTableOddRow-exeTable"><td class="ms-rteTableEvenCol-exeTable">Amortization of Commodity Contract Intangibles</td><td class="ms-rteTableOddCol-exeTable" style="text-align:center;">(12)</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 and Integration Costs</td><td class="ms-rteTableOddCol-exeTable" style="text-align:center;">76</td><td class="ms-rteTableEvenCol-exeTable" style="text-align:center;">0.08</td></tr><tr class="ms-rteTableOddRow-exeTable"><td class="ms-rteTableEvenCol-exeTable" rowspan="1">Merger Commitments</td><td class="ms-rteTableOddCol-exeTable" rowspan="1" style="text-align:center;">3.94</td><td class="ms-rteTableEvenCol-exeTable" rowspan="1" style="text-align:center;">0.42</td></tr><tr class="ms-rteTableEvenRow-exeTable"><td class="ms-rteTableEvenCol-exeTable">Long Lived Asset Impairments</td><td class="ms-rteTableOddCol-exeTable" style="text-align:center;">71</td><td class="ms-rteTableEvenCol-exeTable" style="text-align:center;">0.07</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;"> 14</td><td class="ms-rteTableEvenCol-exeTable" style="text-align:center;">0.02</td></tr><tr class="ms-rteTableEvenRow-exeTable"><td class="ms-rteTableEvenCol-exeTable" rowspan="1">CENG Noncontrolling Interest </td><td class="ms-rteTableOddCol-exeTable" rowspan="1" style="text-align:center;">11</td><td class="ms-rteTableEvenCol-exeTable" rowspan="1" style="text-align:center;">0.01</td></tr><tr class="ms-rteTableFooterRow-exeTable"><td class="ms-rteTableFooterEvenCol-exeTable" rowspan="1"><span style="font-family:benton-sans-medium;">Exelon </span><span style="font-family:benton-sans-medium;">Adjusted (non-GAAP) Operating Earnings</span></td><td class="ms-rteTableFooterOddCol-exeTable" rowspan="1" style="text-align:center;"><span style="font-family:benton-sans-medium;">$632</span></td><td class="ms-rteTableFooterEvenCol-exeTable" rowspan="1" style="text-align:center;"><span style="font-family:benton-sans-medium;">$0.68</span></td></tr></tbody></table></div><br></div><div><br></div><h3>First Quarter and Recent Highlights</h3><p><br></p><p><strong>• FitzPatrick Acquisition:</strong> On March 31, 2017, Generation acquired the James A. FitzPatrick nuclear station located in Scriba, New York for a total purchase price of $293 million. The total purchase price consisted of a cash purchase price of $110 million and a net cost reimbursement to and on behalf of Entergy of $183 million. As part of the acquisition agreements, Generation provided nuclear fuel and reimbursed Entergy for incremental costs to prepare for and conduct a plant refueling outage; and Generation reimbursed Entergy for incremental costs to operate and maintain the plant for the period after the refueling outage through the acquisition closing date. These reimbursements covered costs that Entergy otherwise would have avoided had it shut down the plant as originally intended in January 2017. Generation recognized a $226 million after-tax bargain purchase gain as a result of the FitzPatrick acquisition.</p><div><br></div><div><strong>• Generation Renewable JV Transaction:</strong> On March 31, 2017, ExGen Renewables Holdings, LLC entered into a sales agreement for 49 percent of the membership interest in its renewable generation portfolio for a purchase price of $400 million, subject to certain working capital and post-closing adjustments. These proceeds, net of approximately $115 million of income taxes on the sale, will be used by Generation to pay down debt and for general corporate purposes. Upon consummation of the transaction, ExGen Renewables Holdings will be the managing member over the joint venture and its renewable generation portfolio. Consummation of the transaction is expected in the late second quarter or early third quarter and is subject to various customary closing conditions, including receipt of regulatory approvals from the Federal Energy Regulatory Commission and Public Utility Commission of Texas. </div><div><br></div><div> <strong>• DPL Maryland Electric Distribution Rate Case:</strong> On Feb. 15, 2017, the MDPSC approved an electric distribution rate increase of $38 million based on an allowed ROE of 9.6 percent. The new rates became effective for services rendered on or after February 15, 2017. </div><div><br></div><div> <strong>• DPL Delaware Electric and Natural Gas Distribution Rate Case</strong>: On May 17, 2016, DPL filed applications with the DPSC requesting increases of $63 million (which was updated to $60 million on March 8, 2017) and $22 million to its electric and natural gas distribution rates, respectively, each based on a requested ROE of 10.6 percent. On March 8, 2017, DPL entered into a settlement agreement with the Division of the Public Advocate, Delaware Electric Users Group and the DPSC Staff in its electric distribution rate proceeding, which provides for an increase in DPL electric distribution rates of $32 million based on an allowed ROE of 9.7 percent. On April 6, 2017, DPL entered into a settlement agreement with the Division of the Public Advocate and the DPSC Staff in its natural gas distribution rate proceeding, which provides for an increase in DPL natural gas distribution rates of $4.9 million based on an ROE of 9.7 percent. </div><div><br></div><div> <strong>• Pepco Maryland Electric Distribution Rate Case:</strong> On March 24, 2017, Pepco filed an application with the MDPSC requesting an electric rate increase of $69 million based on a requested ROE of 10.1 percent. Pepco expects a decision in this matter in the fourth quarter of 2017. </div><div><br></div><div> <strong>• ACE Electric Distribution Rate Case:</strong> On March 30, 2017, ACE filed an application with the NJBPU requesting an electric distribution rate increase of $70 million, based on a requested ROE of 10.1 percent. ACE currently expects a decision in this matter in the first quarter of 2018. </div><div><br></div><div> <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. Expected generation is the volume of energy that best represents our commodity position in energy markets from owned or contracted generating facilities upon a simulated dispatch model that makes assumptions regarding future market conditions, which are calibrated to market quotes for power, fuel, load following products, and options. The proportion of expected generation hedged as of March 31, 2017, was 97.0 percent to 100.0 percent for 2017, 60.0 percent to 63.0 percent for 2018, and 30.0 percent to 33.0 percent for 2019. 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. </div><div><br></div><div> <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 43,504 gigawatt-hours (GWh) in the first quarter of 2017, compared with 44,802 GWh in the first quarter of 2016. Excluding Salem, the Exelon-operated nuclear plants at ownership achieved a 94.0 percent capacity factor for the first quarter of 2017, compared with 95.8 percent for the first quarter of 2016. The number of planned refueling outage days in the first quarter of 2017 totaled 95, compared with 70 in the first quarter of 2016. There were 8 non-refueling outage days in the first quarter of 2017, compared with 10 days in the first quarter of 2016. </div><div><br></div><div> <strong>• Fossil and Renewables Operations</strong>: The dispatch match rate for Generation’s gas and hydro fleet was 99.1 percent in the first quarter of 2017, compared with 93.5 percent in the first quarter of 2016. Energy capture for the wind and solar fleet was 95.7 percent in the first quarter of 2017, compared with 96.2 percent in the first quarter of 2016. </div><div><br></div><div> <strong>• Financing Activities</strong>: </div><div><br></div></div></div><blockquote style="margin:0px 0px 0px 40px;border:none;padding:0px;"><div><div><div>◦ On March 10, 2017, Generation issued $250 million aggregate principal amount of its 2.950 percent Senior Notes due in 2020 and $500 million aggregate principal amount of its 3.400 percent Senior Notes due in 2022. The proceeds from the sale of the Senior Notes were used to repay outstanding commercial paper obligations and for general corporate purposes. </div></div></div><div><div><br></div></div><div><div> ◦ On April 3, 2017, Exelon completed the remarketing of $1.15 billion aggregate principal amount of its 2.500 percent Junior Subordinated Notes due 2024, originally issued as components of its equity units issued in June 2014. As contemplated in the June 2014 equity unit structure, Exelon completed the remarketing of the 2024 notes into $1.15 billion aggregate principal amount of 3.497 percent junior subordinated notes due in 2022. Exelon conducted the remarketing on behalf of the holders of equity units and did not directly receive any proceeds therefrom. Instead, the former holders of the 2024 notes may use debt remarketing proceeds towards settling the forward equity purchase contract with Exelon on June 1, 2017. Exelon will receive $1.15 billion upon settlement on June 1, 2017 of the forward equity purchase contract. Exelon currently expects the number of equity shares to be issued to range from 26 million to 33 million, dependent on Exelon’s stock price at the time of settlement pursuant to the equity unit terms. </div></div><div><div><br></div></div><div><div> ◦ In September 2014, EGTP, an indirect subsidiary of Exelon and Generation, issued $675 million aggregate principal amount of a nonrecourse senior secured term loan. On May 2, 2017, EGTP entered into a consent agreement with its lenders to permit EGTP to draw on its revolving credit facility and initiate an orderly sales process to sell the assets of its wholly-owned subsidiaries, the proceeds from which will first be used to pay the administrative costs of administering the sale, the normal and ordinary costs of operating the plants and repayment of the secured debt of EGTP, including the revolving credit facility. As a result, in the second quarter, Exelon and Generation will reclassify certain EGTP’s assets and liabilities on Exelon’s and Generation’s Consolidated Balance Sheets as held for sale at their respective fair values. Exelon and Generation estimate a pre-tax impairment charge upon reclassification ranging from $300 million to $400 million will be recognized in the second quarter of 2017. </div></div></blockquote><div><div><br></div><h4>Operating Company Results </h4><div><br></div><div><strong>ComEd</strong> consists of electricity transmission and distribution operations in Northern Illinois. </div><div><br></div><div>ComEd's first quarter 2017 GAAP Net Income was $141 million compared with $115 million in the first quarter of 2016. </div><div><br></div><div>Adjusted (non-GAAP) Operating Earnings for the first quarter of 2016 do not include merger and integration costs that were included in reported GAAP Net Income as reconciled in the table below: </div><div><br></div><div><table cellspacing="0" width="100%" class="ms-rteTable-exeTable"><tbody><tr class="ms-rteTableEvenRow-exeTable"><td class="ms-rteTableEvenCol-exeTable" style="width:33.3333%;text-align:center;">($ millions)</td><td class="ms-rteTableOddCol-exeTable" style="width:33.3333%;text-align:center;">1Q17</td><td class="ms-rteTableEvenCol-exeTable" style="width:33.3333%;text-align:center;">1Q16</td></tr><tr class="ms-rteTableOddRow-exeTable"><td class="ms-rteTableEvenCol-exeTable">ComEd GAAP Net Income</td><td class="ms-rteTableOddCol-exeTable" style="text-align:center;">$141</td><td class="ms-rteTableEvenCol-exeTable" style="text-align:center;">$115</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;">—</td><td class="ms-rteTableEvenCol-exeTable" style="text-align:center;">(5)</td></tr><tr class="ms-rteTableOddRow-exeTable"><td class="ms-rteTableEvenCol-exeTable"><strong>ComEd Adjusted non-GAAP Operating Earnings</strong></td><td class="ms-rteTableOddCol-exeTable" style="text-align:center;"><strong>$141</strong></td><td class="ms-rteTableEvenCol-exeTable" style="text-align:center;"><strong>$110</strong></td></tr></tbody></table><br></div><div> ComEd’s Adjusted (non-GAAP) Operating Earnings in the first quarter of 2017 increased by $31 million from the same quarter in 2016, primarily due to higher electric distribution and transmission formula rate earnings. Pursuant to the Illinois Future Energy Jobs Act, beginning in 2017, customer rates for ComEd will be adjusted to eliminate the favorable and unfavorable impacts of weather and customer usage patterns on distribution volumes. </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><br></div><div>PECO’s first quarter 2017 GAAP Net Income was $127 million compared with $124 million in the first quarter of 2016. Adjusted (non-GAAP) Operating Earnings for the first quarter of 2017 and 2016 do not include merger and integration costs and cost management program costs that were included in reported GAAP Net Income as reconciled in the table below: </div><div><br></div><div><div><table cellspacing="0" width="100%" class="ms-rteTable-exeTable"><tbody><tr class="ms-rteTableEvenRow-exeTable"><td class="ms-rteTableEvenCol-exeTable" style="width:212px;text-align:center;">($ millions)</td><td class="ms-rteTableOddCol-exeTable" style="width:210px;text-align:center;">1Q17</td><td class="ms-rteTableEvenCol-exeTable" style="width:211px;text-align:center;">1Q16</td></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>$127</strong></td><td class="ms-rteTableEvenCol-exeTable" style="text-align:center;"><strong>$124</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;"><span></span>1</td><td class="ms-rteTableEvenCol-exeTable" style="text-align:center;">1</td></tr><tr class="ms-rteTableOddRow-exeTable"><td class="ms-rteTableEvenCol-exeTable" rowspan="1">Cost Management Program</td><td class="ms-rteTableOddCol-exeTable" rowspan="1" style="text-align:center;">1</td><td class="ms-rteTableEvenCol-exeTable" rowspan="1" style="text-align:center;">1</td></tr><tr class="ms-rteTableEvenRow-exeTable"><td class="ms-rteTableEvenCol-exeTable"><span style="font-family:benton-sans-medium;">PECO Adjusted non-GAAP Operating Earnings</span></td><td class="ms-rteTableOddCol-exeTable" style="text-align:center;"><span style="font-family:benton-sans-medium;">$129</span></td><td class="ms-rteTableEvenCol-exeTable" style="text-align:center;"><span style="font-family:benton-sans-medium;">$126</span></td></tr></tbody></table></div><br></div><div>PECO’s Adjusted (non-GAAP) Operating Earnings in the first quarter of 2017 remained relatively consistent with the same quarter in 2016. </div><div><br></div><div>For the first quarter of 2017, heating degree days were down 2.0 percent relative to the same period in 2016 and were 15.4 percent below normal. Total retail electric deliveries and natural gas deliveries (including both retail and transportation segments) remained relatively consistent in the first quarter of 2017 compared with the same period in 2016. </div><div><br></div><div>Weather-normalized retail electric deliveries were down 1.0 percent in the first quarter of 2017 compared with the same period in 2016, while natural gas deliveries remained relatively consistent. </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 first quarter 2017 GAAP Net Income was $125 million compared with $98 million in the first quarter of 2016. Adjusted (non-GAAP) Operating Earnings do not include merger and integration costs in the first quarter of 2017, and do not include merger and integration costs and cost management program costs in the first quarter of 2016, that were included in reported GAAP Net Income as reconciled in the table below: </div><div><br></div><div><div><br></div><div><table cellspacing="0" width="100%" class="ms-rteTable-exeTable"><tbody><tr class="ms-rteTableEvenRow-exeTable"><td class="ms-rteTableEvenCol-exeTable" style="width:212px;text-align:center;">($ millions)</td><td class="ms-rteTableOddCol-exeTable" style="width:210px;text-align:center;">1Q17</td><td class="ms-rteTableEvenCol-exeTable" style="width:211px;text-align:center;">1Q16</td></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>$125</strong></td><td class="ms-rteTableEvenCol-exeTable" style="text-align:center;"><strong>$98</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;"><span></span>1<span></span></td><td class="ms-rteTableEvenCol-exeTable" style="text-align:center;">1</td></tr><tr class="ms-rteTableOddRow-exeTable"><td class="ms-rteTableEvenCol-exeTable" rowspan="1">Cost Management Program</td><td class="ms-rteTableOddCol-exeTable" rowspan="1" style="text-align:center;"><span style="font-size:16px;text-align:center;">—</span></td><td class="ms-rteTableEvenCol-exeTable" rowspan="1" style="text-align:center;">1</td></tr><tr class="ms-rteTableEvenRow-exeTable"><td class="ms-rteTableEvenCol-exeTable"><span style="font-family:benton-sans-medium;">BGE Adjusted non-GAAP Operating Earnings</span></td><td class="ms-rteTableOddCol-exeTable" style="text-align:center;"><span style="font-family:benton-sans-medium;">$126</span></td><td class="ms-rteTableEvenCol-exeTable" style="text-align:center;"><span style="font-family:benton-sans-medium;">$100</span></td></tr></tbody></table></div><br>BGE’s Adjusted (non-GAAP) Operating Earnings in the first quarter of 2017 increased by $26 million from the same quarter in 2016, primarily due to increased distribution revenue pursuant to increased rates effective in June 2016 and decreased storm costs in the BGE service territory, partially offset by increased amortization due to the initiation of cost recovery of the AMI programs. Due to revenue decoupling, BGE is not affected by actual weather with the exception of major storms. <br></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 first quarter 2017 GAAP Net Income was $140 million compared with a GAAP Net Loss of $309 million for the period of March 24, 2016 to March 31, 2016. Adjusted (non-GAAP) Operating Earnings for the first quarter of 2017 and for the period of March 24, 2016 to March 31, 2016 do not include merger and integration costs and merger commitments that were included in reported GAAP Net Income (Loss) as reconciled in the table below: </div><div><div><br></div><div><table cellspacing="0" width="100%" class="ms-rteTable-exeTable"><tbody><tr class="ms-rteTableEvenRow-exeTable"><td class="ms-rteTableEvenCol-exeTable" style="width:212px;text-align:center;">($ millions)</td><td class="ms-rteTableOddCol-exeTable" style="width:210px;text-align:center;">1Q17</td><td class="ms-rteTableEvenCol-exeTable" style="width:211px;text-align:center;">March 24 - 31, 2016</td></tr><tr class="ms-rteTableOddRow-exeTable"><td class="ms-rteTableEvenCol-exeTable"><strong>PHI GAAP Net Income (Loss)</strong></td><td class="ms-rteTableOddCol-exeTable" style="text-align:center;"><strong>$140</strong></td><td class="ms-rteTableEvenCol-exeTable" style="text-align:center;"><strong>$(309)</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;"><span></span>(3)<span></span></td><td class="ms-rteTableEvenCol-exeTable" style="text-align:center;">33</td></tr><tr class="ms-rteTableOddRow-exeTable"><td class="ms-rteTableEvenCol-exeTable" rowspan="1">Merger Commitments (1) </td><td class="ms-rteTableOddCol-exeTable" rowspan="1" style="text-align:center;">(56)</td><td class="ms-rteTableEvenCol-exeTable" rowspan="1" style="text-align:center;">278</td></tr><tr class="ms-rteTableEvenRow-exeTable"><td class="ms-rteTableEvenCol-exeTable"><span style="font-family:benton-sans-medium;">PHI Adjusted non-GAAP Operating Earnings</span></td><td class="ms-rteTableOddCol-exeTable" style="text-align:center;"><span style="font-family:benton-sans-medium;">$81</span></td><td class="ms-rteTableEvenCol-exeTable" style="text-align:center;"><strong>$2</strong><br></td></tr></tbody></table></div><br></div><div><br></div><div>(1) Represents a decrease in reserves for uncertain tax positions related to the deductibility of certain merger commitments associated with the 2016 PHI acquisition. </div><div><br></div><div> PHI’s Adjusted (non-GAAP) Operating Earnings for the first quarter of 2017 includes the impact of approved rate orders in 2016 and 2017. </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 and risk management services.</div><div><br></div><div>Generation's first quarter 2017 GAAP Net Income was $423 million compared with GAAP Net Income of $310 million in the first quarter of 2016. Adjusted (non-GAAP) Operating Earnings for the first quarter of 2017 and 2016 do not include various items (after tax) that were included in reported GAAP Net Income as reconciled in the table below: </div><div><br></div><div><div><br></div><div><div style="text-align:left;"><span style="font-family:benton-sans-medium;">         ($ in millions)                           1Q17                                  <strong>1Q16</strong></span></div><div><table cellspacing="0" width="100%" class="ms-rteTable-exeTable"><tbody><tr class="ms-rteTableEvenRow-exeTable"><td class="ms-rteTableEvenCol-exeTable" style="width:212px;">Generation GAAP Net Income</td><td class="ms-rteTableOddCol-exeTable" style="width:210px;text-align:center;"><span style="font-family:benton-sans-medium;">$423</span><br></td><td class="ms-rteTableEvenCol-exeTable" style="width:211px;text-align:center;"><font face="benton-sans-medium">$310</font></td></tr><tr class="ms-rteTableOddRow-exeTable"><td class="ms-rteTableEvenCol-exeTable">Mark-to-Market Impact of Economic Hedging Activities</td><td class="ms-rteTableOddCol-exeTable" style="text-align:center;">30</td><td class="ms-rteTableEvenCol-exeTable" style="text-align:center;">(64)</td></tr><tr class="ms-rteTableEvenRow-exeTable"><td class="ms-rteTableEvenCol-exeTable">Unrealized Gains Related to Nuclear Decommissioning Trust (NDT) Fund Investments</td><td class="ms-rteTableOddCol-exeTable" style="text-align:center;">(99)</td><td class="ms-rteTableEvenCol-exeTable" style="text-align:center;">(31)</td></tr><tr class="ms-rteTableOddRow-exeTable"><td class="ms-rteTableEvenCol-exeTable">Amortization of Commodity Contract Intangibles</td><td class="ms-rteTableOddCol-exeTable" style="text-align:center;">3</td><td class="ms-rteTableEvenCol-exeTable" style="text-align:center;">(12)</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;">26</td><td class="ms-rteTableEvenCol-exeTable" style="text-align:center;">10</td></tr><tr class="ms-rteTableOddRow-exeTable"><td class="ms-rteTableEvenCol-exeTable" rowspan="1">Merger Commitments (1)</td><td class="ms-rteTableOddCol-exeTable" rowspan="1" style="text-align:center;">(18)</td><td class="ms-rteTableEvenCol-exeTable" rowspan="1" style="text-align:center;">2</td></tr><tr class="ms-rteTableEvenRow-exeTable"><td class="ms-rteTableEvenCol-exeTable">Long Lived Asset Impairments</td><td class="ms-rteTableOddCol-exeTable" style="text-align:center;"> —<br></td><td class="ms-rteTableEvenCol-exeTable" style="text-align:center;">71</td></tr><tr class="ms-rteTableOddRow-exeTable"><td class="ms-rteTableEvenCol-exeTable" rowspan="1">Reassessment of State Deferred Income Taxes</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">Cost Management Program</td><td class="ms-rteTableOddCol-exeTable" style="text-align:center;"> 3</td><td class="ms-rteTableEvenCol-exeTable" style="text-align:center;">12</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;">(5)</td><td class="ms-rteTableEvenCol-exeTable" rowspan="1" style="text-align:center;"> —</td></tr><tr class="ms-rteTableEvenRow-exeTable"><td class="ms-rteTableEvenCol-exeTable" rowspan="1">Bargain Purchase Gain</td><td class="ms-rteTableOddCol-exeTable" rowspan="1" style="text-align:center;">(226)</td><td class="ms-rteTableEvenCol-exeTable" rowspan="1" style="text-align:center;"><span style="font-size:16px;text-align:center;">—</span></td></tr><tr class="ms-rteTableOddRow-exeTable"><td class="ms-rteTableEvenCol-exeTable" rowspan="1">CENG Noncontrolling Interest </td><td class="ms-rteTableOddCol-exeTable" rowspan="1" style="text-align:center;">35</td><td class="ms-rteTableEvenCol-exeTable" rowspan="1" style="text-align:center;">11</td></tr><tr class="ms-rteTableFooterRow-exeTable"><td class="ms-rteTableFooterEvenCol-exeTable" rowspan="1"><strong>Generation Adjusted non-GAAP Operating Earnings</strong></td><td class="ms-rteTableFooterOddCol-exeTable" rowspan="1" style="text-align:center;"><strong>$172</strong></td><td class="ms-rteTableFooterEvenCol-exeTable" rowspan="1" style="text-align:center;"><strong>$315</strong></td></tr></tbody></table></div></div><br></div><div><br></div><div> (1) Represents a decrease in reserves for uncertain tax positions related to the deductibility of certain merger commitments associated with the 2012 CEG and 2016 PHI acquisitions. </div><div><br></div><div> Generation’s Adjusted (non-GAAP) Operating Earnings in the first quarter of 2017 decreased by $143 million compared with the same quarter in 2016, primarily reflecting the unfavorable impacts of declining natural gas prices on Generation's natural gas portfolio, increased nuclear outage days, decreased capacity prices and lower realized energy prices, partially offset by the impact of the Ginna Reliability Support Services Agreement in 2017. </div><div><br></div><div><br></div><h4> Non-GAAP Financial Measures </h4><p>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 attachments. This press release and earnings release attachments provide reconciliations of adjusted (non-GAAP) Operating Earnings to the most directly comparable financial measures calculated and presented in accordance with GAAP, are posted on Exelon’s website: www.exeloncorp.com, and have been furnished to the Securities and Exchange Commission on Form 8-K on May 3, 2017. </p><h4>Cautionary Statements Regarding Forward-Looking Information </h4><p>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, 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 2016 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 24, Commitments and Contingencies; (2) Exelon’s First Quarter 2017 Quarterly Report on Form 10-Q (to be filed on May 3, 2017) 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 17; and (2) 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.</p><p><br></p><p><br></p></div>http://www.exeloncorp.com/newsroom/exelon-announces-first-quarter-2017-results5/3/2017 12:00:00 PM

 

 

 

 

Q3 2017 Exelon Corporation Earnings Conference CallCT11/2/2017 4:00:00 AMQ3 2017 Exelon Corporation Earnings Conference Callhttp://www.exeloncorp.com/newsroom/events/q3-2017-exelon-corporation-earnings-conference-call