ATLANTIC CITY ELECTRIC CO

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.

(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, 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:

•Favorable impacts of rates at ComEd, PECO, BGE, and PHI;

•Lower storm costs at PECO, due to deferral of extraordinary February and June storm costs;

•Timing of income tax expenses at PECO;

•Higher return on regulatory assets at ComEd;

•Higher AFUDC at ComEd; and

•Lower storm costs and credit loss expense at BGE.

The increases were partially offset by:

•Timing of distribution earnings at ComEd;

•Higher depreciation expense at PECO; and

•Higher interest expense at PHI and Exelon Corporate.

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:

•Favorable impacts of rates at ComEd, PECO, BGE and PHI;

•Timing of income tax expenses at PECO;

•Less unfavorable weather at PECO;

•Lower storm costs at PECO and BGE;

•Higher return on regulatory assets at ComEd;

•Timing of distribution earnings at ComEd; and

•Higher AFUDC at ComEd.

The increases were partially offset by:

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

•Customer Relief Fund contribution at Exelon Corporate;

•Higher depreciation expense at PECO and PHI;

•Lower transmission peak load due to lower energy demand at ComEd;

•Lower impacts of the Maryland multi-year plan reconciliations at PHI; and

•Lower AFUDC at PHI.

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 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:

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 2025 and 2024 ranged from 24.0% to 29.0%.

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

(b)Reflects the adjustment to state deferred income taxes due to changes in forecasted apportionment.

(c)Represents the probable disallowance of certain capitalized costs.