EXELON CORP

GAAP Results of Operations. The following table sets forth Exelon's GAAP consolidated Net income attributable to common shareholders by Registrant for the three and nine months ended September 30, 2024 compared to the same period in 2023. For additional information regarding the financial results for the three and nine months ended September 30, 2024 and 2023, see the discussions of Results of Operations by Registrant.

(a)Other primarily includes eliminating and consolidating adjustments, Exelon’s corporate operations, shared service entities, and other financing and investment activities.

Three Months Ended September 30, 2024 Compared to Three Months Ended September 30, 2023. Net income attributable to common shareholders increased by $7 million and diluted earnings per average common share remained relatively consistent to the prior year at $0.70 primarily due to:

•Timing of distribution earnings at ComEd;

•Favorable impacts of rate increases at BGE and PHI;

•Higher return on regulatory assets at ComEd; and

•Lower storm costs at PHI.

The increases were partially offset by:

•Higher interest expense at PECO, BGE, and PHI;

•Higher credit loss expense at PECO and BGE;

•Higher depreciation and amortization expense at PECO and BGE;

•Lower electric distribution earnings from lower allowed ROE and the absence of a return on the pension asset at ComEd; and

•Lower carrying cost recovery related to the CMC regulatory asset at ComEd.

Nine Months Ended September 30, 2024 Compared to Nine Months Ended September 30, 2023. Net income attributable to common shareholders increased by $102 million and diluted earnings per average common share increased to $1.81 in 2024 from $1.72 in 2023 primarily due to:

•Favorable impacts of rate increases at BGE and PHI;

•Less unfavorable weather at PECO;

•Timing of distribution earnings at ComEd;

•Higher return on regulatory assets at ComEd;

•Favorable impacts of the multi-year plans including the recognition of the reconciliations at Pepco;

•Higher transmission peak load due to higher energy demand at ComEd; and

•Lower storm costs at PHI.

The increases were partially offset by:

•Higher interest expense at PECO, BGE, PHI, and Exelon Corporate;

•Higher credit loss expense at PECO, BGE, and PHI;

•Higher depreciation expense at PECO and PHI;

•Lower electric distribution earnings from lower allowed ROE and the absence of a return on the pension asset at ComEd;

•Higher storm costs at PECO and BGE; and

•Lower carrying cost recovery related to the CMC regulatory asset at ComEd.

Adjusted (non-GAAP) operating earnings. In addition to Net income, 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 information is intended to enhance an investor’s overall understanding of year-over-year 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 information 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’ presentations or deemed more useful than the GAAP information provided elsewhere in this report.

The following table provides a reconciliation between GAAP Net income attributable to common shareholders and Adjusted (non-GAAP) operating earnings for the three and nine months ended September 30, 2024 compared to the same period in 2023:

Note:

Amounts may not sum due to rounding.

Unless otherwise noted, the income tax impact of each reconciling item between GAAP Net income attributable to common shareholders 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. The marginal statutory income tax rates for 2024 and 2023 ranged from 24.0% to 29.0%.

(a)Represents costs related to the separation primarily comprised of system-related costs, third-party costs paid to advisors, consultants, lawyers, and other experts assisting in the separation, and employee-related severance costs, which are recorded in Operating and maintenance expense and Other, net.

(b)Primarily represents severance and reorganization costs related to cost management.

(c)In 2023, reflects the adjustment to state deferred income taxes dues to changes in forecasted apportionment.