EXELON CORP

GAAP Results of Operations. The following table sets forth Exelon's GAAP consolidated Net income attributable to common shareholders from continuing operations by Registrant for the year ended December 31, 2024 compared to the same period in 2023. For additional information regarding the financial results for the years ended December 31, 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 investing activities.

Year Ended December 31, 2024 Compared to Year Ended December 31, 2023. Net income attributable to common shareholders from continuing operations increased by $132 million and Diluted earnings per average common share from continuing operations increased to $2.45 in 2024 from $2.34 in 2023 primarily due to:

•Favorable impacts of rate increases at BGE and PHI;

•Less unfavorable weather at PECO;

•Higher return on regulatory assets at ComEd;

•Lower contracting costs at PHI;

•A tax repairs deduction at PECO;

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

•Absence of realized losses from hedging activity at Exelon Corporate;

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

•Lower storm costs at PHI.

Note that rate increases are associated with updated recovery rates for costs and investments to serve customers. The increases were partially offset by:

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

•Lower impacts of multi-year plans reconciliations at BGE;

•Higher depreciation and amortization expense at PECO, BGE, and PHI;

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

•Higher credit loss expense at PECO and BGE;

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

•Higher storm costs at BGE.

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 not considered by management to be 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 Net income attributable to common shareholders from continuing operations as determined in accordance with GAAP and Adjusted (non-GAAP) operating earnings for the year ended December 31, 2024 compared to 2023:

Note:

Amounts may not sum due to rounding.

Unless otherwise noted, the income tax impact of each reconciling item between GAAP Net income and Adjusted (non-GAAP) operating earnings is based on the marginal statutory federal and state income tax rates for each Registrant, taking into account whether the income or expense item is taxable or deductible, respectively, in whole or in part. 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 due to changes in forecasted apportionment. In 2024, reflects the adjustment to state deferred income taxes due to change in DPL's Delaware net operating loss valuation allowance.