ATLANTIC CITY ELECTRIC CO
For the period ended Sep 30, 2025. Filed Nov 4, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Nov 4, 2025
EXC$45.62-2.0%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-30; filed 2025-07-31.
0001109357-25-000170
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSExecutive OverviewFinancial Results of OperationsSignificant 2025 Transactions and DevelopmentsOther Key Business Drivers and Management StrategiesCritical Accounting Policies and EstimatesResults of Operations By RegistrantLiquidity and Capital ResourcesCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-11-04.
0001109357-25-000182
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSExecutive OverviewFinancial Results of OperationsSignificant 2025 Transactions and DevelopmentsOther Key Business Drivers and Management StrategiesCritical Accounting Policies and EstimatesResults of Operations By RegistrantLiquidity and Capital ResourcesThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 274 previous paragraphs and 291 current paragraphs.
166 unchanged; 84 reworded; 34 added; 19 removed; 5 previous and 7 current paragraphs rearranged.
Tables are not compared: 56 previous and 56 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (34)
Current report
•Lower storm costs at PECO, due to deferral of extraordinary February and June storm costs;
Current report
•Lower storm costs and credit loss expense at BGE.
Current report
•Higher depreciation expense at PECO; and
Current report
•Higher depreciation expense at PECO and PHI;
Current report
On January 20, 2025, the Unleashing American Energy Order was issued as a Presidential Executive Order, which required an immediate pause in the disbursement of funds appropriated through the IRA and IIJA pending DOE review. In October 2025, Exelon, ComEd, and BGE received termination notifications from the DOE for their Renewable-Aware Distribution Operations, Deployment of a Community-Oriented Interoperable Control Framework for Aggregating and Integrating Distributed Energy Resources and Other Grid-Edge Devices, and Baltimore Interconnection Readiness & Deployment of Storage (BIRDS) awards, respectively. There are no material financial statement impacts as a result of the DOE terminations. Exelon, ComEd, and BGE will continue to evaluate whether to move forward with these projects.
Current report
As part of the passing of the Next Generation Energy Act by the Maryland General Assembly, the MDPSC issued an order on June 26, 2025, to implement the Legislative Energy Relief Refund program under which bill credits will be distributed to residential customers based on their consumption of electricity supply that is subject to the renewable energy portfolio standard. On July 24, 2025, the MDPSC issued an order accepting BGE, Pepco, and DPL's proposal for the implementation of the program. As a result, BGE, Pepco, and DPL received approximately $49 million, $21 million, and $8 million, respectively, from the MDPSC on August 6, 2025. These amounts were used to reduce residential customer accounts receivable balances within the third quarter. An additional disbursement from the state of Maryland is expected in the first quarter of 2026, which will also be used to reduce residential customer receivables upon receipt.
Current report
In an effort to further reduce the burden of increased electric supply costs, on August 13, 2025, the NJBPU issued an order to establish the RUBC, which will be funded by the NJBPU. The program will provide a $50 bill credit per eligible residential customer for the months of September and October 2025. ACE received $51 million from the NJBPU on September 25, 2025, which was recognized as a Regulatory liability. ACE subsequently issued $25 million in bill credits to residential customers in September 2025 reducing the Regulatory liability to $26 million as of September 30, 2025. The remaining funds were disbursed in October 2025.
Current report
Other, net increased $7 million and $20 million for the three and nine months ended September 30, 2025, respectively, compared to the same periods in 2024, primarily due to higher AFUDC equity.
Current report
Effective income tax rates were 18.2% and 9.1% for the three months ended September 30, 2025 and 2024, respectively, and 18.2% and 9.4% for the nine months ended September 30, 2025 and 2024, respectively. See Note 6 — Income Taxes of the Combined Notes to Consolidated Financial Statements for additional information regarding the components of the effective income tax rates.
Current report
(a)Decrease primarily due to deferral of extraordinary February and June storm costs of $53 million in the third quarter of 2025.
Current report
(a)Depreciation and amortization expense increased primarily due to ongoing capital expenditures.
Current report
Effective income tax rates were 2.0% and (3.5)% for the three months ended September 30, 2025 and 2024, respectively, 3.4% and 2.5% for the nine months ended September 30, 2025 and 2024, respectively. See Note 6 — Income Taxes of the Combined Notes to Consolidated Financial Statements for additional information regarding the components of the effective income tax rates.
Current report
Three Months Ended September 30, 2025 Compared to Three Months Ended September 30, 2024. Net income increased $37 million primarily due to electric distribution rates and decreases in storm costs, credit loss expense, and various operating expenses.
Current report
Transmission Revenue. Under a FERC-approved formula, transmission revenue varies from year to year based upon fluctuations in the underlying costs and capital investments being recovered. Transmission revenue remained relatively consistent for the three months ended September 30, 2025 and increased for the nine months ended September 30, 2025, compared to the same period in 2024, primarily due to increases in underlying costs and capital investments.
Current report
The increase of $148 million and $356 million for the three and nine months ended September 30, 2025, respectively, compared to the same period in 2024, in Purchased power and fuel expense is fully offset in Operating revenues as part of regulatory required programs.
Current report
Three Months Ended September 30, 2025 Compared to Three Months Ended September 30, 2024. Net Income increased by $16 million primarily due to distribution and transmission rates, partially offset by increases in depreciation and interest expense.
Current report
Nine Months Ended September 30, 2025 Compared to Nine Months Ended September 30, 2024. Net Income increased by $14 million primarily due to distribution and transmission rates, partially offset by lower impacts of the Maryland multi-year plans reconciliations and increases in depreciation and interest expense.
Current report
Transmission Revenue. Under a FERC-approved formula, transmission revenue varies from year to year based upon fluctuations in the underlying costs and capital investments being recovered. Transmission revenue increased for the three and nine months ended September 30, 2025, compared to the same periods in 2024, primarily due to increases in underlying costs and capital investments.
Current report
The increase of $73 million and $134 million for the three and nine months ended September 30, 2025, respectively, compared to the same period in 2024, in Purchased power expense is fully offset in Operating revenues as part of regulatory required programs.
Current report
Distribution Revenue increased for the three and nine months ended September 30, 2025 compared to the same periods in 2024 primarily due to Delaware electric DSIC rates and natural gas rates that became effective in 2025.
Current report
Effective income tax rates were 23.6% and 20.3% for the three months ended September 30, 2025 and 2024, respectively, and 23.1% and 20.0% for the nine months ended September 30, 2025 and 2024, respectively. See Note 6 — Income Taxes of the Combined Notes to Consolidated Financial Statements for additional information regarding the components of the effective income tax rates.
Current report
The increase of $41 million and $59 million for the three and nine months ended September 30, 2025, respectively, compared to the same periods in 2024 in Purchased power expense is fully offset in Operating revenues as part of regulatory required programs.
Current report
The following table provides a summary of the change in cash flows from operating activities for the nine months ended September 30, 2025 and 2024 by Registrant:
Current report
(a)On October 15, 2025, PECO redeemed $350 million of its 3.15% First Mortgage Bonds at maturity.
Current report
In the third quarter of 2025, Exelon entered into forward sale agreements for 11.5 million shares at a weighted-average net forward price of $43.73 per share. The forward sale agreements require Exelon to, at its election prior to December 15, 2026 either (i) physically settle the transactions by issuing shares of its Common stock to the forward counterparties in exchange for net proceeds at the then-applicable forward sale price specified by the agreements or (ii) net settle the transactions in whole or in part through the delivery to the forward counterparties or receipt from the forward counterparties of cash or shares in accordance with the provisions of the agreements.
Current report
(a)On September 8, 2025, ComEd filed an application with the FERC to request a new short-term financing authority for $2.5 billion through December 31, 2027. ComEd expects approval of their application by December 31, 2025.
Current report
(b)On September 19, 2025, ComEd filed an application for $2.8 billion in new money long-term debt financing authority from the ICC and expects approval of their application by December 31, 2025.
Current report
(c)On September 8, 2025, PECO filed an application with the FERC to request a new short-term financing authority for $1.5 billion through December 31, 2027. PECO expects approval of their application by December 31, 2025.
Current report
(d)On September 8, 2025, BGE filed an application with the FERC to request a new short term financing authority for $900 million through December 31, 2027. BGE expects approval of their application by December 31, 2025.
Current report
(h)On September 3, 2025, DPL received approval from the MDSPC and DEPSC, respectively, for $700 million in new long-term financing authority, with an effective date of January 1, 2026.
Removed paragraphs (19)
Previous report
The decreases were partially offset by:
Previous report
The Trump Administration has issued numerous Executive Orders (EOs), including the Unleashing American Energy Order on January 20, 2025, which requires an immediate pause in the disbursement of funds appropriated through the IRA and IIJA during a 90-day review period, which is still in effect. Exelon is currently evaluating this EO and others to determine what, if any, impact they might have on awards selected or received from the Department of Energy in 2024.
Previous report
Effective income tax rates were 18.6% and 10.3% for the three months ended June 30, 2025 and 2024, respectively, and 18.1% and 9.6% for the six months ended June 30, 2025 and 2024, respectively. See Note 6 — Income Taxes of the Combined Notes to Consolidated Financial Statements for additional information regarding the components of the effective income tax rates.
Previous report
Effective income tax rates were 2.9% and 3.2% for the three months ended June 30, 2025 and 2024, respectively, 4.1% and 5.2% for the six months ended June 30, 2025 and 2024, respectively. See Note 6 — Income Taxes of the Combined Notes to Consolidated Financial Statements for additional information regarding the components of the effective income tax rates.
Previous report
Three Months Ended June 30, 2025 Compared to Three Months Ended June 30, 2024. Net income increased $11 million primarily due to favorable electric and gas distribution rates, partially offset by the derecognition of regulatory assets and liabilities for multi-year plan reconciliations that will no longer be filed as a result of the Next Generation Energy Act. See Note 2— Regulatory Matters for additional information regarding the Next Generation Energy Act.
Previous report
Transmission Revenue. Under a FERC-approved formula, transmission revenue varies from year to year based upon fluctuations in the underlying costs and capital investments being recovered. Transmission revenue increased for the three and six months ended June 30, 2025, compared to the same period in 2024, primarily due to increases in underlying costs and capital investments.
Previous report
The increase of $63 million and $209 million for the three and six months ended June 30, 2025, respectively, compared to the same period in 2024, in Purchased power and fuel expense is fully offset in Operating revenues as part of regulatory required programs.
Previous report
Three Months Ended June 30, 2025 Compared to Three Months Ended June 30, 2024. Net Income decreased by $24 million primarily due to lower impacts of the Maryland multi-year plans reconciliations, an increase in credit loss expense, interest expense, depreciation expense, and storm costs partially offset by favorable distribution rates and higher transmission rates.
Previous report
Six Months Ended June 30, 2025 Compared to Six Months Ended June 30, 2024. Net Income decreased by $2 million primarily due to the lower impacts of the Maryland multi-year plans reconciliations, an increase in interest expense, depreciation expense, and storm costs partially offset by favorable distribution rates and higher transmission rates.
Previous report
Transmission Revenue. Under a FERC-approved formula, transmission revenue varies from year to year based upon fluctuations in the underlying costs and capital investments being recovered. Transmission revenue increased for the three and six months ended June 30, 2025, compared to the same period in 2024, primarily due to increases in underlying costs and capital investments.
Previous report
The increase of $22 million and $60 million for the three and six months ended June 30, 2025, respectively, compared to the same period in 2024, in Purchased power expense is fully offset in Operating revenues as part of regulatory required programs.
Previous report
Three Months Ended June 30, 2025 Compared to Three Months Ended June 30, 2024. Net income increased $5 million primarily due to higher Delaware electric DSIC rates, and higher transmission rates, partially offset by an increase in interest expense.
Previous report
Distribution Revenue increased for the three and six months ended June 30, 2025 compared to the same period in 2024 primarily due to higher electric and natural gas DSIC rates in Delaware that became effective January 2025.
Previous report
Effective income tax rates were 22.0% and 19.0% for the three months ended June 30, 2025 and 2024, respectively, and 22.9% and 19.8% for the six months ended June 30, 2025 and 2024, respectively. See Note 6 — Income Taxes of the Combined Notes to Consolidated Financial Statements for additional information regarding the components of the effective income tax rates.
Previous report
The increase of $1 million and $17 million for the three and six months ended June 30, 2025, respectively, compared to the same period in 2024 in Purchased power expense is fully offset in Operating revenues as part of regulatory required programs.
Previous report
The following table provides a summary of the change in cash flows from operating activities for the six months ended June 30, 2025 and 2024 by Registrant:
Reworded paragraphs (84)
Previous wording
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 six months ended June 30, 2025 compared to the same period in 2024. For additional information regarding the financial results for the three and six months ended June 30, 2025 and 2024, see the discussions of Results of Operations by Registrant.
Current wording
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, 2025 compared to the same period in 2024. For additional information regarding the financial results for the three and nine months ended September 30, 2025 and 2024, see the discussions of Results of Operations by Registrant.
Previous wording
Three Months Ended June 30, 2025 Compared to Three Months Ended June 30, 2024. Net income attributable to common shareholders decreased by $57 million and diluted earnings per average common share decreased to $0.39 in 2025 from $0.45 in 2024 primarily due to:
Current wording
Three Months Ended September 30, 2025 Compared to Three Months Ended September 30, 2024. Net income attributable to common shareholders increased by $168 million and diluted earnings per average common share increased to $0.86 in 2025 from $0.70 in 2024 primarily due to:
Previous wording
•Favorable impacts of rate increases at ComEd, PECO, BGE and PHI;
Current wording
•Favorable impacts of rates at ComEd, PECO, BGE, and PHI;
Previous wording
•Timing of income tax expenses at PECO; and
Current wording
•Timing of income tax expenses at PECO;
Previous wording
•Higher interest expense at PHI and Exelon Corporate; and
Current wording
•Higher interest expense at PHI and Exelon Corporate.
Previous wording
Six Months Ended June 30, 2025 Compared to Six Months Ended June 30, 2024. Net income attributable to common shareholders increased by $194 million and diluted earnings per average common share increased to $1.29 in 2025 from $1.10 in 2024 primarily due to:
Current wording
Nine Months Ended September 30, 2025 Compared to Nine Months Ended September 30, 2024. Net income attributable to common shareholders increased by $361 million and diluted earnings per average common share increased to $2.15 in 2025 from $1.81 in 2024 primarily due to:
Previous wording
•Favorable impacts of rate increases at ComEd, PECO, BGE and PHI; and
Current wording
•Favorable impacts of rates at ComEd, PECO, BGE and PHI;
Previous wording
•Timing of distribution earnings at ComEd;
Current wording
•Timing of distribution earnings at ComEd; and
Previous wording
The following table provides a reconciliation between GAAP Net income attributable to common shareholders and Adjusted (non-GAAP) operating earnings for the three and six months ended June 30, 2025 compared to the same period in 2024:
Current wording
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, 2025 compared to the same period in 2024:
Previous wording
On November 15, 2021, President Biden signed the $1.2 trillion IIJA into law. IIJA provides for approximately $550 billion in new federal spending. Categories of funding include funding for a variety of infrastructure needs, including but not limited to: (1) power and grid reliability and resilience, (2) resilience for cybersecurity to address critical infrastructure needs, and (3) electric vehicle charging infrastructure for alternative fuel corridors. The Registrants continue to evaluate programs under the legislation and consider possible opportunities to apply for funding, either directly or in potential collaborations with state and/or local agencies and key stakeholders. The Registrants cannot predict the ultimate timing and success of securing funding from programs under IIJA.
Current wording
On November 15, 2021, the $1.2 trillion IIJA was signed into law. IIJA provides for approximately $550 billion in new federal spending. Categories of funding include funding for a variety of infrastructure needs, including but not limited to: (1) power and grid reliability and resilience, (2) resilience for cybersecurity to address critical infrastructure needs, and (3) electric vehicle charging infrastructure for alternative fuel corridors. The Registrants continue to evaluate programs under the legislation and consider possible opportunities to apply for funding, either directly or in potential collaborations with state and/or local agencies and key stakeholders. The Registrants cannot predict the ultimate timing and success of securing funding from programs under IIJA.
Previous wording
On May 20, 2025, the Governor of Maryland signed into law legislation that addresses several matters pertaining to electric and gas utilities, including affirming that the MDPSC may approve the use of multi-year rate plans that demonstrate customer benefits, among other things. It also prohibits utilities from filing after January 1, 2025, for the reconciliation of actuals costs and revenues to amounts approved within the multi-year plans. As of June 30, 2025, BGE derecognized Regulatory assets of $10 million and Regulatory liabilities of $3 million for multi-year plan reconciliations that will no longer be filed. DPL has derecognized Regulatory liabilities of $0.4 million for multi-year reconciliations yet to be filed. Multi-year plan reconciliations filed prior to January 1, 2025, remain lawful and will be resolved in their respective proceedings.
Current wording
On May 20, 2025, the Governor of Maryland signed into law legislation that addresses several matters pertaining to electric and gas utilities, including affirming that the MDPSC may approve the use of multi-year rate plans that demonstrate customer benefits, among other things. It also prohibits utilities from filing after January 1, 2025, for the reconciliation of actuals costs and revenues to amounts approved within the multi-year plans. In the second quarter of 2025, BGE derecognized Regulatory assets of $10 million and Regulatory liabilities of $3 million for multi-year plan reconciliations that will no longer be filed. DPL also derecognized Regulatory liabilities of $0.4 million during the second quarter of 2025 for multi-year reconciliations yet to be filed. Multi-year plan reconciliations filed prior to January 1, 2025, remain lawful and will be resolved in their respective proceedings.
Previous wording
Summer Rate Mitigation (Exelon and ACE)
Current wording
Summer Rate Mitigation (Exelon, BGE, PHI, Pepco, DPL, and ACE).
Previous wording
In response to significant increases in electric supply costs, on April 23, 2025, the NJBPU issued an order directing the State's electric public utilities to file petitions proposing distribution side measures to mitigate residential customer bill impacts during summer months. As a result, on June 18, 2025, the NJBPU approved a stipulation of settlement for ACE to issue a bill credit of $30 per residential customer for the months of July and August 2025, which will be deferred to a Regulatory asset. The amounts will subsequently be collected from September 2025 through February 2026 at a flat rate of $10 per residential customer. The bill credit and subsequent collections will not be subject to carrying costs.
Current wording
In response to significant increases in electric supply costs, on April 23, 2025, the NJBPU issued an order directing the State's electric public utilities to file petitions proposing distribution side measures to mitigate residential customer bill impacts during summer months. As a result, on June 18, 2025, the NJBPU approved a stipulation of settlement for ACE to issue a bill credit of $30 per residential customer for the months of July and August 2025, which was deferred to a Regulatory asset. The amounts will subsequently be collected from September 2025 through February 2026 at a flat rate of $10 per residential customer. The bill credit and subsequent collections will not be subject to carrying costs.
Previous wording
Three Months Ended June 30, 2025 Compared to Three Months Ended June 30, 2024. Net Income decreased by $42 million as compared to the same period in 2024 primarily due to timing of distribution earnings and lower transmission peak load. These were partially offset by higher distribution and transmission rate base and higher return on regulatory assets primarily due to an increase in asset balances.
Current wording
Three Months Ended September 30, 2025 Compared to Three Months Ended September 30, 2024. Net Income increased by $13 million as compared to the same period in 2024 primarily due to higher distribution and transmission rate base driven by incremental investments to serve customers, higher return on regulatory assets due to an increase in asset balances, and higher AFUDC, partially offset by the timing of distribution earnings.
Previous wording
Six Months Ended June 30, 2025 Compared to Six Months Ended June 30, 2024. Net income increased by $67 million as compared to the same period in 2024, primarily due to timing of distribution earnings, higher distribution and transmission rate base, and higher return on regulatory assets primarily due to an increase in asset balances. These were partially offset by lower transmission peak load.
Current wording
Nine Months Ended September 30, 2025 Compared to Nine Months Ended September 30, 2024. Net income increased by $80 million as compared to the same period in 2024, primarily due to higher distribution and transmission rate base driven by incremental investments to serve customers, higher return on regulatory assets due to an increase in asset balances, higher AFUDC, and timing of distribution earnings, partially offset by lower transmission peak load.
Previous wording
Revenue Decoupling. The demand for electricity is affected by weather and customer usage. Operating revenues are not impacted by abnormal weather, usage per customer, or number of customers as a result of revenue decoupling mechanisms.
Current wording
Revenue Decoupling. The demand for electricity is affected by weather and customer usage. Operating revenues are not intended to be impacted by abnormal weather, usage per customer, or number of customers as a result of revenue decoupling mechanisms.
Previous wording
underlying costs (e.g., severe weather and storm restoration), investments being recovered, and allowed ROE. Electric distribution revenues decreased for the three months ended June 30, 2025 as compared to the same period in 2024, primarily due to differences in the timing of distribution earnings, offset by higher rate base and higher return on regulatory assets. Electric distribution revenues increased for the six months ended June 30, 2025 as compared to the same period in 2024, primarily due to higher fully recoverable costs, differences in the timing of distribution earnings, higher rate base, and higher return on regulatory assets.
Current wording
Distribution Revenue. Starting in 2024, distribution revenues are under a MRP. The MRP requires an annual reconciliation of the revenue requirement in effect to the actual costs the ICC determines are prudently and reasonably incurred. Electric distribution revenue varies from year to year based upon fluctuations in the underlying costs (e.g., severe weather and storm restoration), investments being recovered, and allowed ROE. Electric distribution revenues increased for the three months ended September 30, 2025 as compared to the same period in 2024, primarily due to higher fully recoverable costs, higher rate base, and higher return on regulatory assets. Electric distribution revenues increased for the nine months ended September 30, 2025 as compared to the same period in 2024, primarily due to higher fully recoverable costs, higher rate base, higher return on regulatory assets, and differences in the timing of distribution earnings.
Previous wording
Transmission Revenue. Under a FERC-approved formula, transmission revenue varies from year to year based upon fluctuations in the underlying costs, capital investments being recovered, and the highest daily peak load, which is updated annually in January based on the prior calendar year. Transmission revenues decreased for the three and six months ended June 30, 2025 as compared to the same period in 2024, primarily due to lower transmission peak load, partially offset by higher fully recoverable costs and the impacts of higher rate base.
Current wording
Transmission Revenue. Under a FERC-approved formula, transmission revenue varies from year to year based upon fluctuations in the underlying costs, capital investments being recovered, and the highest daily peak load, which is updated annually in January based on the prior calendar year. Transmission revenues increased for the three months ended September 30, 2025 compared to the same period in 2024, primarily due to higher fully recoverable costs and higher rate base. Transmission revenues decreased for the nine months ended September 30, 2025 as compared to the same period in 2024, primarily due to lower transmission peak load, partially offset by higher fully recoverable costs and the impacts of higher rate base.
Previous wording
Energy Efficiency Revenue. Energy efficiency revenues are under a performance-based formula rate, which requires an annual reconciliation of the revenue requirement in effect to the actual costs the ICC determines are prudently and reasonably incurred in a given year. Energy efficiency revenue varies from year to year based upon fluctuations in the underlying costs, investments being recovered, and allowed ROE. Energy efficiency revenues increased for the three and six months ended June 30, 2025 as compared to the same periods in 2024, primarily due to increased regulatory asset amortization, which is fully recoverable.
Current wording
Energy Efficiency Revenue. Energy efficiency revenues are under a performance-based formula rate, which requires an annual reconciliation of the revenue requirement in effect to the actual costs the ICC determines are prudently and reasonably incurred in a given year. Energy efficiency revenue varies from year to year based upon fluctuations in the underlying costs, investments being recovered, and allowed ROE. Energy efficiency revenues increased for the three and nine months ended September 30, 2025 as compared to the same periods in 2024, primarily due to increased regulatory asset amortization, which is fully recoverable.
Previous wording
Other Revenue primarily includes assistance provided to other utilities through mutual assistance programs. Other revenues increased for the three and six months ended June 30, 2025 as compared to the same periods in 2024, which primarily reflects increased mutual assistance revenues associated with storm restoration efforts.
Current wording
Other Revenue primarily includes assistance provided to other utilities through mutual assistance programs. Other revenues decreased for the three and nine months ended September 30, 2025 as compared to the same periods in 2024, which primarily reflects decreased mutual assistance revenues associated with storm restoration efforts.
Previous wording
The decrease in Purchased power expense of $213 million and $431 million for the three and six months ended June 30, 2025, respectively, compared to the same periods in 2024 is offset in Operating revenues as part of regulatory required programs.
Current wording
The decrease in Purchased power expense of $29 million and $460 million for the three and nine months ended September 30, 2025, respectively, compared to the same periods in 2024 is offset in Operating revenues as part of regulatory required programs.
Previous wording
(a)Primarily reflects the reclassification and increase of the FERC audit liability during the three and six months ended June 30, 2024 as well as a decrease in credit loss expense. See Note 2 - Regulatory Matters for additional information regarding the FERC audit liability.
Current wording
(a)Primarily reflects the reclassification and increase of the FERC audit liability and a decrease in credit loss expense during the nine months ended September 30, 2024. See Note 2 - Regulatory Matters for additional information regarding the FERC audit liability.
Previous wording
Interest expense, net increased $8 million and $14 million for the three and six months ended June 30, 2025, respectively, compared to the same periods in 2024, primarily due to an increase in outstanding debt.
Current wording
Interest expense, net increased $7 million and $21 million for the three and nine months ended September 30, 2025, respectively, compared to the same periods in 2024, primarily due to an increase in outstanding debt.
Previous wording
Three Months Ended June 30, 2025 Compared to Three Months Ended June 30, 2024. Net income increased by $46 million, due to an increase in revenue as a result of an increase in electric and gas distribution rates, offset by an increase in storm costs.
Current wording
Three Months Ended September 30, 2025 Compared to Three Months Ended September 30, 2024. Net income increased by $133 million due to an increase in revenue as a result of electric and gas distribution rates, decrease in storm costs due to deferral of extraordinary February and June storm costs in the third quarter of 2025, and tax repairs deduction related to storms, some of which is timing, partially offset by an increase in depreciation expense.
Previous wording
Six Months Ended June 30, 2025 Compared to Six Months Ended June 30, 2024. Net income increased by $163 million, due to an increase in revenue as a result of an increase in electric and gas distribution rates coupled with less unfavorable weather relative to the same period last year, partially offset by an increase in interest expense and storm costs, net of tax repairs deduction.
Current wording
Nine Months Ended September 30, 2025 Compared to Nine Months Ended September 30, 2024. Net income increased by $296 million due to an increase in revenue as a result of electric and gas distribution rates, coupled with less unfavorable weather relative to the same period last year, decrease in storm costs due to deferral of extraordinary February and June storm costs in the third quarter of 2025 and lower storm costs relative to the same period last year, and tax repairs deduction related to storms, some of which is timing, partially offset by an increase in depreciation expense and interest expense.
Previous wording
Weather. The demand for electricity and natural gas is affected by weather conditions. With respect to the electric business, very warm weather in summer months and, with respect to the electric and natural gas businesses, very cold weather in winter months are referred to as “favorable weather conditions” because these weather conditions result in increased deliveries of electricity and natural gas. Conversely, mild weather reduces demand. During the three months ended June 30, 2025 compared to the same period in 2024, Operating revenues related to weather decreased due to unfavorable weather in PECO's service territory. During the six months ended June 30, 2025 compared to the same period in 2024, Operating revenues related to weather increased due to less unfavorable weather conditions in PECO's service territory.
Current wording
Weather. The demand for electricity and natural gas is affected by weather conditions. With respect to the electric business, very warm weather in summer months and, with respect to the electric and natural gas businesses, very cold weather in winter months are referred to as “favorable weather conditions” because these weather conditions result in increased deliveries of electricity and natural gas. Conversely, mild weather reduces
Previous wording
Heating and cooling degree-days are quantitative indices that reflect the demand for energy needed to heat or cool a home or business. Normal weather is determined based on historical average heating and cooling degree-days for a 30-year period in PECO's service territory. The changes in heating and cooling degree-days in PECO’s service territory for the three and six months ended June 30, 2025 compared to the same period in 2024 and normal weather consisted of the following:
Current wording
Heating and cooling degree-days are quantitative indices that reflect the demand for energy needed to heat or cool a home or business. Normal weather is determined based on historical average heating and cooling degree-days for a 30-year period in PECO's service territory. The changes in heating and cooling degree-days in PECO’s service territory for the three and nine months ended September 30, 2025 compared to the same period in 2024 and normal weather consisted of the following:
Previous wording
Volume. Electric volume, exclusive of the effects of weather, for the three months ended June 30, 2025 compared to the same period in 2024, decreased due to customer load. Electric volume, exclusive of the effects of weather, for the six months ended June 30, 2025 compared to the same period in 2024, remained relatively consistent. Natural gas volume for the three and six months ended June 30, 2025 compared to the same period in 2024, remained relatively consistent.
Current wording
Volume. Electric volume, exclusive of the effects of weather, for the three and nine months ended September 30, 2025 compared to the same period in 2024, decreased due to customer load. Natural gas volume for the three and nine months ended September 30, 2025 compared to the same period in 2024, remained relatively consistent.
Previous wording
Pricingfor the three and six months ended June 30, 2025 compared to the same period in 2024 increased primarily due to an increase in electric and gas distribution rates charged to customers.
Current wording
Pricingfor the three and nine months ended September 30, 2025 compared to the same period in 2024 increased primarily due to electric and gas distribution rates charged to customers.
Previous wording
Transmission Revenue. Under a FERC-approved formula, transmission revenue varies from year to year based upon fluctuations in the underlying costs and capital investments being recovered. Transmission revenue for the three and six months ended June 30, 2025 compared to the same period in 2024 remained relatively consistent.
Current wording
Transmission Revenue. Under a FERC-approved formula, transmission revenue varies from year to year based upon fluctuations in the underlying costs and capital investments being recovered. Transmission revenue for the three and nine months ended September 30, 2025 compared to the same period in 2024 remained relatively consistent.
Previous wording
Other revenue primarily includes revenue related to late payment charges. Other revenue for the three and six months ended June 30, 2025 compared to the same period in 2024 increased primarily due to revenue related to late payment charges.
Current wording
Other Revenue primarily includes revenue related to late payment charges. Other revenue for the three months ended September 30, 2025 compared to the same period in 2024 remained relatively consistent. Other revenue for the nine months ended September 30, 2025 compared to the same period in 2024 increased primarily due to revenue related to late payment charges.
Previous wording
Regulatory Required Programs represents revenues collected under approved riders to recover costs incurred for regulatory programs such as energy efficiency, PGC, TSC, and the GSA. The riders are designed to provide full and current cost recovery, and in some cases, a return. The costs of these programs are included in Purchased power and fuel expense, Operating and maintenance expense, Depreciation and amortization expense, and Income taxes. Customers have the choice to purchase electricity and natural gas from competitive electric generation and natural gas suppliers. Customer choice programs do not impact the volume of deliveries as PECO remains the distribution service provider for all customers and charges a regulated rate for distribution service, which is recorded in Operating revenues. For customers that choose to purchase electric generation or natural gas from competitive suppliers, PECO either acts as the billing agent or the competitive supplier separately bills its own customers and therefore PECO does not record Operating revenues or Purchased power and fuel expense related to the electricity and/or natural gas. For customers that choose to purchase electric generation or natural gas from PECO, PECO is permitted to recover the electricity, natural gas, and REC procurement costs without mark-up and therefore records equal and offsetting amounts in Operating revenues and Purchased power and fuel expense related to the electricity, natural gas, and RECs.
Current wording
Regulatory Required Programs represent revenues collected under approved riders to recover costs incurred for regulatory programs such as energy efficiency, PGC, TSC, and the GSA. The riders are designed to provide full and current cost recovery, and in some cases, a return. The costs of these programs are included in Purchased power and fuel expense, Operating and maintenance expense, Depreciation and amortization expense, and Income taxes. Customers have the choice to purchase electricity and natural gas from competitive electric generation and natural gas suppliers. Customer choice programs do not impact the volume of deliveries as PECO remains the distribution service provider for all customers and charges a regulated rate for distribution service, which is recorded in Operating revenues. For customers that choose to purchase electric generation or natural gas from competitive suppliers, PECO either acts as the billing agent or the competitive supplier separately bills its own customers and therefore PECO does not record Operating revenues or Purchased power and fuel expense related to the electricity and/or natural gas. For customers that choose to purchase electric generation or natural gas from PECO, PECO is permitted to recover the electricity, natural gas, and REC procurement costs without mark-up and therefore records equal and offsetting amounts in Operating revenues and Purchased power and fuel expense related to the electricity, natural gas, and RECs.
Previous wording
The increase of $16 million and increase of $114 million for the three and six months ended June 30, 2025, respectively, compared to the same period in 2024, in Purchased power and fuel expenseis offset in Operating revenues as part of regulatory required programs.
Current wording
The increase of $60 million and increase of $175 million for the three and nine months ended September 30, 2025, respectively, compared to the same period in 2024, in Purchased power and fuel expenseis fully offset in Operating revenues as part of regulatory required programs.
Previous wording
Taxes other than income taxes increased by $2 million and $12 million for the three and six months ended June 30, 2025, respectively, compared to the same period in 2024, primarily due to higher Pennsylvania gross receipts tax.
Current wording
Taxes other than income taxes increased by $8 million and increased by $19 million for the three and nine months ended September 30, 2025, respectively, compared to the same period in 2024, primarily due to higher Pennsylvania gross receipts tax.
Previous wording
Interest expense, netincreased $3 million and increased $12 million for the three and six months ended June 30, 2025, respectively, compared to the same period in 2024, primarily due to an increase in interest rates and higher outstanding debt.
Current wording
Interest expense, netincreased $7 million and increased $18 million for the three and nine months ended September 30, 2025, respectively, compared to the same period in 2024, primarily due to an increase in interest rates and the issuance of debt in the third quarter of 2025.
Previous wording
Six Months Ended June 30, 2025 Compared to Six Months Ended June 30, 2024. Net Income increased $7 million primarily due to favorable electric and gas distribution rates, partially offset by an increase in various operating expenses, an increase in interest expense, and the derecognition of regulatory assets and liabilities for multi-year plan reconciliations that will no longer be filed as a result of the Next Generation Energy Act. See Note 2—Regulatory Matters for additional information regarding the Next Generation Energy Act.
Current wording
Nine Months Ended September 30, 2025 Compared to Nine Months Ended September 30, 2024. Net Income increased $45 million primarily due to distribution and transmission rates and a decrease in storm costs, partially offset by an increase in interest expense and the derecognition of regulatory assets and liabilities for multi-year plan reconciliations that will no longer be filed as a result of the Next Generation Energy Act. See Note 2—Regulatory Matters for additional information regarding the Next Generation Energy Act.
Previous wording
Distribution Revenue increased for the three and six months ended June 30, 2025, compared to the same period in 2024, due to favorable impacts of the multi-year plans.
Current wording
Distribution Revenue increased for the three and nine months ended September 30, 2025, compared to the same period in 2024, due to favorable impacts of the multi-year plans.
Previous wording
Other Revenue includes revenue related to late payment charges, mutual assistance, off-system sales, and service application fees. Other Revenue increased for the three and six months ended June 30, 2025 as compared to the same period in 2024, primarily driven by increases in service application fees.
Current wording
Other Revenue includes revenue related to late payment charges, mutual assistance, off-system sales, and service application fees. Other Revenue increased for the three and nine months ended September 30, 2025 as compared to the same period in 2024, primarily driven by increases in service application fees.
Previous wording
(a)Reflects the derecognition of regulatory assets for multi-year plan reconciliations that will no longer be filed as a result of the Next Generation Energy Act. See Note 2— Regulatory Matters for additional information regarding the Next Generation Energy Act.
Current wording
(a)For the three and nine months ended, reflects the absence of capital write-offs included in 2024. For the nine months ended, reflects the derecognition of regulatory assets for multi-year plan reconciliations that will no longer be filed as a result of the Next Generation Energy Act. See Note 2— Regulatory Matters for additional information regarding the Next Generation Energy Act.
Previous wording
Interest expense, net increased $8 million and $17 million for the three and six months ended June 30, 2025, respectively, compared to the same period in 2024, primarily due to the issuance of debt in the second quarter of 2025.
Current wording
Interest expense, net increased $7 million and $24 million for the three and nine months ended September 30, 2025, respectively, compared to the same period in 2024, primarily due to the issuance of debt in the second quarter of 2025.
Showing the first 40 of 84 pairs. Open the source sections for the rest.
Rearranged current paragraphs (7)
Current report — wording carried from elsewhere
•Timing of income tax expenses at PECO;
Current report — wording carried from elsewhere
The increases were partially offset by:
Current report — wording carried from elsewhere
demand. During the three months ended September 30, 2025 compared to the same period in 2024, Operating revenues related to weather remained relatively consistent. During the nine months ended September 30, 2025 compared to the same period in 2024, Operating revenues related to weather increased due to less unfavorable weather conditions in PECO's service territory.
Current report — wording carried from elsewhere
Taxes other than income taxes increased by $1 million and $4 million for the three and nine months ended September 30, 2025, respectively, compared to the same period in 2024 primarily due to an increase in property taxes.
Current report — wording carried from elsewhere
Three Months Ended September 30, 2025 Compared to Three Months Ended September 30, 2024. Net income remained relatively consistent.
Current report — wording carried from elsewhere
Exelon’s estimated annual qualified pension contributions will be $275 million in 2025. Unlike the qualified pension plans, Exelon’s non-qualified pension plans are not funded, given that they are not subject to statutory minimum contribution requirements.
Current report — wording carried from elsewhere
(f)On July 17, 2025, Pepco filed an application with the MDPSC and DCPSC to request a new long-term financing authority for $1.1 billion through December 31, 2028. On September 3, 2025, Pepco received approval of their application from the MDSPC. Pepco expects approval of their application from the DCPSC by December 31, 2025.
Rearranged previous paragraphs (5)
Previous report — wording carried elsewhere
•Lower impacts of the Maryland multi-year plan reconciliations at PHI;
Previous report — wording carried elsewhere
•Customer Relief Fund contribution at Exelon Corporate;
Previous report — wording carried elsewhere
•Lower transmission peak load due to lower energy demand at ComEd;
Previous report — wording carried elsewhere
Distribution Revenue. Starting in 2024, distribution revenues are under a MRP. The MRP requires an annual reconciliation of the revenue requirement in effect to the actual costs the ICC determines are prudently and reasonably incurred. Electric distribution revenue varies from year to year based upon fluctuations in the
Previous report — wording carried elsewhere
The Registrants fund liquidity needs for capital investment, working capital, energy hedging, and other financial commitments through cash flows from continuing operations, public debt offerings, commercial paper markets, and large, diversified credit facilities. The credit facilities include $4.0 billion in aggregate total commitments of which $3.3 billion was available to support additional commercial paper as of June 30, 2025, and of which no financial institution has more than 6.2% of the aggregate commitments for the Registrants. The Registrants had access to the commercial paper markets and had availability under their revolving credit facilities during the six months ended June 30, 2025 to fund their short-term liquidity needs, when necessary. Exelon Corporate and the