ATLANTIC CITY ELECTRIC CO
For the period ended Jun 30, 2026. Filed Jul 30, 2026.
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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.
Jun 30, 2026 · Filed Jul 30, 2026
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 2026-03-31; filed 2026-05-06.
0001109357-26-000063
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSExecutive OverviewFinancial Results of OperationsSignificant 202 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 2026-06-30; filed 2026-07-30.
0001109357-26-000080
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSExecutive OverviewFinancial Results of OperationsSignificant 2026 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 238 previous paragraphs and 277 current paragraphs.
160 unchanged; 58 reworded; 52 added; 15 removed; 5 previous and 7 current paragraphs rearranged.
Tables are not compared: 55 previous and 59 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 (52)
Current report
•Absence of Customer Relief Fund contribution at Exelon Corporate;
Current report
Six Months Ended June 30, 2026 Compared to Six Months Ended June 30, 2025. Net income attributable to common shareholders increased by $15 million and diluted earnings per average common share decreased to $1.28 in 2026 from $1.29 in 2025 primarily due to:
Current report
•Absence of Customer Relief Fund contribution at Exelon Corporate;
Current report
(b)Reflects the adjustment to state deferred income taxes due to changes in forecasted apportionment.
Current report
In the second quarter of 2026, Exelon issued approximately 8.7 million shares of Common stock at a weighted-average net price of $44.03 per share. The net proceeds from the issuance were $382 million, which were used for general corporate purposes. See Note 12 — Shareholders' Equity of the Combined Notes to Consolidated Financial Statements for additional information.
Current report
Transmission Formula Rates
Current report
For 2026, the following increases/(decreases) were included in the Utility Registrants' electric transmission formula rate updates. See Note 2 —Regulatory Matters of the Combined Notes to Consolidated Financial Statements for additional information.
Current report
Exelon’s Cost Saving Strategy (All Registrants)
Current report
In May 2026, Exelon announced plans to identify approximately $350 million of operating and maintenance costs savings at Exelon and the Utility Registrants in 2027. This announcement is a result of Exelon’s continuous focus on the needs of our customers through enhanced efficiency and productivity.
Current report
On May 12, 2026, the Governor of Maryland signed into law legislation that addresses several matters pertaining to electric and gas utilities, including a moratorium on rate cases with forecasted test years until April 1, 2027. Additionally, BGE, Pepco and DPL are required to participate as a member in an RTO effective July 1, 2026, which resulted in a complaint filed on July 2, 2026 against Maryland Transmission Operators, including BGE, Pepco, and DPL, at FERC for the removal of the 50-basis-point incentive adder in the transmission formula rates. The final outcome and resolution of the complaint filing cannot be predicted and the results are not expected to be material to Exelon, BGE, PHI, Pepco, and DPL financial statements.
Current report
New Jersey Repeal RTO Adder Bill (Exelon, PHI, and ACE)
Current report
On July 7, 2026, the Governor of New Jersey signed into law legislation that addresses several matters pertaining to electric utility companies. As part of the legislation ACE is required to participate as a member in an RTO effective January 1, 2027, which could result in a complaint filed for the removal of the 50-basis-point incentive adder in the transmission formula rates.
Current report
Delaware Senate Bill 326 (Exelon, PHI, and DPL)
Current report
On July 13, 2026, the Governor of Delaware signed into law legislation that addresses several matters pertaining to public utility companies. As part of the law, DPL’s non-mandatory capital spend eligible to be recovered in rates will be limited to $70 million in each of the years ended 2026 and 2027 unless the spend falls within an exception or the commission orders otherwise. Further, beginning in 2028, DPL’s non-mandatory capital spend eligible to be recovered in rates shall not exceed 5% of DPL’s rate base approved in its most recent base rate case. The legislation also modifies the timing of interim rate recovery in base rate case proceedings. If the DEPSC has not issued a decision within 7 months of a filing, DPL may implement 50% of the proposed rate increase, subject to refund. If no decision has been issued after 12 months, DPL may implement 75% of the proposed increase, also subject to refund. DPL is continuing to evaluate the overall potential impacts of the legislation and will continue to monitor related regulatory developments.
Current report
Six Months Ended June 30, 2026 Compared to Six Months Ended June 30, 2025. Net income decreased by $5 million due to an increase in depreciation, interest expense, and severance costs related to the cost management program, partially offset by higher revenues resulting from the absence of surcharge credits to customers, and favorable weather.
Current report
The increase of $50 million and $160 million for the three and six months ended June 30, 2026, compared to the same period in 2025, in Purchased power and fuel expense is fully offset in Operating revenues as part of regulatory required programs.
Current report
(a)Reflects severance related to cost management program
Current report
Taxes other than income taxes increased by $8 million and $16 million for the three and six months ended June 30, 2026, respectively, compared to the same period in 2025, primarily due to higher Pennsylvania gross receipts tax.
Current report
Interest expense, netincreased by $12 million and $20 million for the three and six months ended June 30, 2026, respectively, compared to the same period in 2025, primarily due to an increase in interest rates and higher outstanding debt.
Current report
Effective income tax rates were 6.3% and 2.9% for the three months ended June 30, 2026 and 2025, respectively, and 5.5% and 4.1% for the six months ended June 30, 2026 and 2025, 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 June 30, 2026 Compared to Three Months Ended June 30, 2025. Net income remained consistent primarily due to approved distribution rates, the absence of the derecognition of regulatory assets for multi-year plan reconciliations that occurred during the second quarter of 2025, and a decrease in various operating expenses, offset by an increase in credit loss expense and severance costs related to the cost management program.
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 for the three and six months ended June 30, 2026, compared to the same period in 2025 remained relatively consistent.
Current report
The increase of $139 million and $337 million for the three and six months ended June 30, 2026, compared to the same period in 2025, in Purchased power and fuel expense is fully offset in Operating revenues as part of regulatory required programs.
Current report
(a)Reflects severance related to cost management program.
Current report
(b)Reflects the absence of the derecognition of regulatory assets for multi-year plan reconciliations that occurred during the second quarter of 2025. Please refer to 2025 10-K Note 2 — Regulatory Matters for additional information.
Current report
(c)Reflects the cost recovery associated with EmPOWER Maryland. Please refer to 2025 10-K Note 2 — Regulatory Matters for additional information.
Current report
Other, netincreased by $11 million and $18 million for the three and six months ended June 30, 2026 compared to the same period in 2025, primarily due to higher AFUDC equity.
Current report
Effective income tax rates were 23.6% and 21.4% for the three months ended June 30, 2026 and 2025, and 21.4% and 21.3% for the six months ended June 30, 2026 and 2025. 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 June 30, 2026 Compared to Three Months Ended June 30, 2025. Net Income decreased by $34 million primarily due to an increase in severance costs related to the cost management program, depreciation expense, property taxes at DPL, and various operating expenses, partially offset by approved Delaware electric DSIC and natural gas rates.
Current report
Three Months Ended June 30, 2026 Compared to Three Months Ended June 30, 2025. Net Income decreased by $19 million primarily due to increases in severance costs related to the cost management program, depreciation, 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 increased for the three and six months ended June 30, 2026, compared to the same periods in 2025, primarily due to increases in underlying costs and capital investments.
Current report
The increase of $60 million and $153 million for the three and six months ended June 30, 2026, respectively, compared to the same periods in 2025, in Purchased power expense is fully offset in Operating revenues as part of regulatory required programs.
Current report
(b)Reflects severance related to cost management program.
Current report
(c)Reflects the cost recovery associated with EmPOWER Maryland. Please refer to 2025 10-K Note 2 — Regulatory Matters for additional information.
Current report
Taxes other than income taxes increased $4 million and $9 million for the three and six months ended June 30, 2026, respectively, compared to the same period 2025, primarily due to increases in utility taxes and property taxes.
Current report
Effective income tax rates were 20.7% and 20.8% for the three months ended June 30, 2026 and 2025, respectively, and 19.9% and 21.0% for the six months ended June 30, 2026 and 2025, 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 June 30, 2026 Compared to Three Months Ended June 30, 2025. Net income decreased by $13 million primarily due to an increase in depreciation expense, severance costs related to the cost management program, and property taxes, partially offset by approved Delaware electric DSIC and natural gas rates.
Current report
The decrease of $23 million and $64 million for the three and six months ended June 30, 2026, respectively, compared to the same periods in 2025 in Purchased power and fuel expense is fully offset in Operating revenues as part of regulatory required programs.
Showing the first 40 of 52 passages. Open the source sections for the rest.
Removed paragraphs (15)
Previous report
Maryland Utility Relief Act
Previous report
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
Previous report
for the three months ended March 31, 2026 compared to the same period in 2025, primarily due to higher fully recoverable costs and higher rate base.
Previous report
Effective income tax rates were 24.6% and 17.7% for the three months ended March 31, 2026 and 2025, 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 $110 million for the three months ended March 31, 2026, compared to the same period in 2025, in Purchased power and fuel expense is fully offset in Operating revenues as part of regulatory required programs.
Previous report
Effective income tax rates were 5.1% and 5.0% for the three months ended March 31, 2026 and 2025, 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 $199 million for the three months ended March 31, 2026, compared to the same period in 2025, in Purchased power and fuel expense is fully offset in Operating revenues as part of regulatory required programs.
Previous report
Effective income tax rates were 21.0% and 21.5% for the three months ended March 31, 2026 and 2025. 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 $93 million for the three months ended March 31, 2026, respectively, compared to the same period in 2025, in Purchased power expense is fully offset in Operating revenues as part of regulatory required programs.
Previous report
Effective income tax rates were 19.0% and 20.5% for the three months ended March 31, 2026 and 2025, 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 $42 million for the three months ended March 31, 2026, respectively, compared to the same period in 2025 in Purchased power and fuel expense is fully offset in Operating revenues as part of regulatory required programs.
Previous report
Effective income tax rates were 23.0% and 23.3% for the three months ended March 31, 2026 and 2025, 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 March 31, 2026 Compared to Three Months Ended March 31, 2025. Net income decreased by $4 million primarily due to an increase in storms costs and depreciation expense, partially offset by an increase in approved transmission rates.
Previous report
The increase of $48 million for the three months ended March 31, 2026, respectively, compared to the same period in 2025 in Purchased power expense is fully offset in Operating revenues as part of regulatory required programs.
Reworded paragraphs (58)
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 months ended March 31, 2026 compared to the same period in 2025. For additional information regarding the financial results for the three months ended March 31, 2026 and 2025, 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 six months ended June 30, 2026 compared to the same period in 2025. For additional information regarding the financial results for the three and six months ended June 30, 2026 and 2025, see the discussions of Results of Operations by Registrant.
Previous wording
Three Months Ended March 31, 2026 Compared to Three Months Ended March 31, 2025. Net income attributable to common shareholders increased by $11 million and diluted earnings per average common share remained relatively consistent to the prior year at $0.90 primarily due to:
Current wording
Three Months Ended June 30, 2026 Compared to Three Months Ended June 30, 2025. Net income attributable to common shareholders increased by $5 million and diluted earnings per average common share remained relatively consistent to the prior year at $0.39 primarily due to:
Previous wording
•Higher interest expense at PECO and Exelon Corporate;
Current wording
•Higher interest expense at PECO and Exelon Corporate; 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 months ended March 31, 2026 compared to the same period in 2025:
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 six months ended June 30, 2026 compared to the same period in 2025:
Previous wording
(a)Primarily represents severance and reorganization costs related to cost management.
Current wording
(a)Primarily represents severance costs related to cost management program.
Previous wording
(b)Represents the disallowance of certain capitalized costs.
Current wording
(c)Represents the disallowance of certain capitalized costs.
Previous wording
For the Utility Registrants, except for PECO, the methodology prescribed by the IRS in these PLRs could result in a material reduction of the regulatory liability established for EDITs arising from the TCJA corporate tax rate change that are being amortized and flowed through to customers as well as a reduction in the accumulated deferred income taxes included in rate base for ratemaking purposes of approximately $1.2 billion - $1.7 billion.
Current wording
For the Utility Registrants, except for PECO, the methodology prescribed by the IRS in these PLRs could result in a material reduction of the regulatory liability established for EDITs arising from the TCJA corporate tax rate change that are being amortized and flowed through to customers as well as a reduction in the accumulated deferred income taxes included in rate base for ratemaking purposes of approximately $0.8 billion - $1.2 billion.
Previous wording
On April 13, 2026, the Maryland Utility RELIEF Act (Utility RELIEF Act) was passed through the Maryland General Assembly and awaits the Governor’s signature to become law. If and when the Utility RELIEF Act becomes law, it will modify the regulatory framework and rules governing recovery of certain costs in utility ratemaking in Maryland. Exelon, BGE, Pepco, and DPL are in the process of assessing the potential impacts of the pending legislation.
Current wording
Maryland Utility Relief Act (Exelon, BGE, PHI, Pepco, and DPL)
Previous wording
On March 6, 2026, FERC issued an order requiring the removal of the de minimis threshold exemption in the calculation of the cost responsibility of certain transmission reliability upgrade costs allocated to the rate zones of PJM transmission owners, including the Utility Registrants. FERC further ordered PJM to recalculate historical cost allocations for the period beginning June 18, 2015, and to pass through additional charges or payments to PJM customers, including Utility Registrants, as applicable, with interest within 90 days. On April 29, 2026, the time for those calculations was extended until further order from FERC. The Utility Registrants expect to recover any incremental charges incurred or reimburse any payments received through prospective electric customer rates. On April 6, 2026, a number of parties filed petitions for rehearing or clarification.
Current wording
On March 6, 2026, FERC issued an order requiring the removal of the de minimis threshold exemption in the calculation of the cost responsibility of certain transmission reliability upgrade costs allocated to the rate zones of PJM Transmission Owners, including the Utility Registrants. FERC further ordered PJM to recalculate historical cost allocations for the period beginning June 18, 2015, and to pass through additional charges or payments to PJM customers, including Utility Registrants, as applicable, with interest within 90 days. On April 29, 2026, the time for those calculations was extended until further order from FERC. The Utility Registrants expect to recover any incremental charges incurred or reimburse any payments received through prospective electric customer rates. On April 6, 2026, a number of parties filed requests for rehearing or clarification, which were denied by operation of law on May 7, 2026. On May 12, 2026, PJM Transmission Owners, including Exelon, on behalf of the Utility Registrants, filed a petition for review at the United States Court of Appeals for the D.C. Circuit.
Previous wording
Three Months Ended March 31, 2026 Compared to Three Months Ended March 31, 2025. Net Income increased by $8 million as compared to the same period in 2025 primarily due to higher distribution and transmission rate base driven by incremental investments to serve customers and higher AFUDC, offset by the timing of distribution earnings.
Current wording
Six Months Ended June 30, 2026 Compared to Six Months Ended June 30, 2025. Net income increased by $29 million as compared to the same period in 2025, primarily due to higher distribution and transmission rate base driven by incremental investments to serve customers and higher AFUDC, offset by the timing of distribution earnings.
Previous 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 decreased for the three months ended March 31, 2026 as compared to the same period in 2025, primarily due to lower fully recoverable costs.
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 and six months ended June 30, 2026 as compared to the same periods in 2025, primarily due to higher rate base and higher fully recoverable costs.
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 increased for the three months ended March 31, 2026, compared to the same period in 2025, primarily due to increases in underlying costs and capital investments.
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 revenues increased for the three and six months ended June 30, 2026 compared to the same periods in 2025, primarily due to higher rate base and higher fully recoverable costs.
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 months ended March 31, 2026 as compared to the same periods in 2025, primarily due to higher fully recoverable costs.
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 six months ended June 30, 2026 as compared to the same periods in 2025, primarily due to higher fully recoverable costs.
Previous wording
Other Revenue primarily includes assistance provided to other utilities through mutual assistance programs. Other revenues increased for the three months ended March 31, 2026 as compared to the same periods in 2025, 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 six months ended June 30, 2026 as compared to the same periods in 2025, which primarily reflects decreased mutual assistance revenues associated with storm restoration efforts.
Previous wording
The decrease of $238 million for the three months ended March 31, 2026 compared to the same period in 2025 in Purchased power expenseis offset in Operating revenues as part of regulatory required programs.
Current wording
The increase of $29 million for the three months ended June 30, 2026 and the decrease of $208 million for the six months ended June 30, 2026, compared to the same periods in 2025, in Purchased power expenseis offset in Operating revenues as part of regulatory required programs.
Previous wording
(a)Primarily reflects the probable disallowance of certain capitalized costs in regulatory matters during the three months ended March 31, 2025.
Current wording
(a)Primarily reflects the disallowance of certain capitalized costs in regulatory matters during the three months ended March 31, 2025.
Previous wording
Other, net increased $10 million for the three months ended March 31, 2026 compared to the same period in 2025, primarily due to higher AFUDC equity.
Current wording
Other, net increased $10 million and $20 million for the three and six months ended June 30, 2026, respectively, compared to the same periods in 2025, primarily due to higher AFUDC equity.
Previous wording
Effective income tax rates were 25.0% and 26.2% for the three months ended March 31, 2026 and 2025, respectively. See Note 6 — Income Taxes ofthe Combined Notes to Consolidated Financial Statements for additional information regarding the components of the effective income tax rates.
Current wording
Effective income tax rates were 25.0% and 18.6% for the three months ended June 30, 2026 and 2025, respectively, and 24.8% and 18.1% for the six months ended June 30, 2026 and 2025, 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 wording
Three Months Ended March 31, 2026 Compared to Three Months Ended March 31, 2025. Net income increased by $12 million due to an increase in revenue as a result of the absence of surcharge credits to customers, favorable weather relative to the same period last year, and tax repairs, some of which is timing, partially offset by an increase in depreciation and interest expense.
Current wording
Three Months Ended June 30, 2026 Compared to Three Months Ended June 30, 2025. Net Income decreased by $17 million due to an increase in depreciation, interest expense, tax repairs, a portion of which is timing, and severance costs related to the cost management program, partially offset by higher revenues resulting from the absence of surcharge credits to customers, and favorable weather.
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 March 31, 2026, compared to the same period in 2025, Operating revenues related to weather increased due to favorable 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 demand. During the three and six months ended June 30, 2026, compared to the same period in 2025, Operating revenues related to weather increased due to favorable weather conditions in PECO's service territory.
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
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 six months ended June 30, 2026, compared to the same period in 2025, and normal weather consisted of the following:
Previous wording
Volume. Electric volume, exclusive of the effects of weather, for the three months ended March 31, 2026 compared to the same period in 2025, remained relatively consistent. Natural gas volume for the three months ended March 31, 2026, compared to the same period in 2025, remained relatively consistent.
Current wording
Volume. Electric volume, exclusive of the effects of weather, for the three and six months ended June 30, 2026 compared to the same period in 2025, decreased due to customer load. Natural gas volume for the three and six months ended June 30, 2026, compared to the same period in 2025, remained relatively consistent.
Previous wording
Pricingfor the three months ended March 31, 2026, compared to the same period in 2025, remained relatively consistent.
Current wording
Pricingfor the three and six months ended June 30, 2026, compared to the same period in 2025, remained relatively consistent.
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 months ended March 31, 2026, compared to the same period in 2025, increased primarily due to increases in the underlying costs and capital investments.
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 six months ended June 30, 2026, compared to the same period in 2025, increased primarily due to increases in the underlying costs and capital investments.
Previous wording
Other Revenue primarily includes revenue related to late payment charges. Other revenue for the three months ended March 31, 2026, compared to the same period in 2025, increased primarily due to the absence of electric surcharge credits to customers recognized in 2025.
Current wording
Other Revenue primarily includes revenue related to late payment charges. Other revenue for the three and six months ended June 30, 2026, compared to the same period in 2025, increased primarily due to the absence of electric surcharge credits to customers recognized in 2025.
Previous wording
Three Months Ended March 31, 2026 Compared to Three Months Ended March 31, 2025. Net income increased $38 million primarily due to approved distribution rates and a decrease in various operating expenses, partially offset by an increase in credit loss expense.
Current wording
Six Months Ended June 30, 2026 Compared to Six Months Ended June 30, 2025. Net income increased $38 million primarily due to approved distribution rates, the absence of the derecognition of regulatory assets for multi-year plan reconciliations that occurred during the second quarter of 2025, and a decrease in various operating expenses, partially offset by an increase in credit loss expense and severance costs related to the cost management program.
Previous wording
Distribution Revenue increased for the three months ended March 31, 2026, compared to the same period in 2025, due to favorable impacts of the multi-year plans.
Current wording
Distribution Revenue increased for the three and six months ended June 30, 2026, compared to the same period in 2025, 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 months ended March 31, 2026 as compared to the same period in 2025, primarily driven by increases in late payment charges.
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 six months ended June 30, 2026 as compared to the same period in 2025, primarily driven by increases in late payment charges.
Previous wording
Taxes other than income taxes increased $8 million for the three months ended March 31, 2026, compared to the same period in 2025, primarily due to increased property taxes.
Current wording
Taxes other than income taxes increased by $11 million and $19 million for the three and six months ended June 30, 2026, compared to the same period in 2025, primarily due to increased property taxes.
Previous wording
PHI’s Results of Operations include the results of its three reportable segments, Pepco, DPL, and ACE. PHI also has a business services subsidiary, PHISCO, which provides a variety of support services, and the costs are directly charged or allocated to the applicable subsidiaries. Additionally, the results of PHI’s corporate operations include interest costs from various financing activities. All material intercompany accounts and transactions have been eliminated in consolidation. The following table sets forth PHI's GAAP consolidated Net income, by Registrant, for the three months ended March 31, 2026 compared to the same period in 2025. See the Results of Operations for Pepco, DPL, and ACE for additional information.
Current wording
PHI’s Results of Operations include the results of its three reportable segments, Pepco, DPL, and ACE. PHI also has a business services subsidiary, PHISCO, which provides a variety of support services, and the costs are directly charged or allocated to the applicable subsidiaries. Additionally, the results of PHI’s corporate operations include interest costs from various financing activities. All material intercompany accounts and transactions have been eliminated in consolidation. The following table sets forth PHI's GAAP consolidated Net income, by Registrant, for the three and six months ended June 30, 2026 compared to the same periods in 2025. See the Results of Operations for Pepco, DPL, and ACE for additional information.
Previous wording
Three Months Ended March 31, 2026 Compared to Three Months Ended March 31, 2025. Net Income decreased by $25 million primarily due to unfavorable impacts of the Pepco Maryland multi-year plan reconciliation and related disallowance of capitalized costs, an increase in depreciation expense, storm costs, and interest expense, partially offset by approved transmission rates, favorable weather conditions at DPL and approved Delaware electric DSIC and natural gas rates.
Current wording
Six Months Ended June 30, 2026 Compared to Six Months Ended June 30, 2025. Net Income decreased by $59 million primarily due to an increase in depreciation and interest expenses, property taxes at DPL, unfavorable impacts of the Pepco Maryland multi-year plan reconciliation and related disallowance of capitalized costs, severance costs related to the cost management program, storm costs, and various operating expenses, partially offset by approved Delaware electric DSIC and natural gas rates, approved distribution and transmission rates, and favorable weather conditions at DPL.
Previous wording
Three Months Ended March 31, 2026 Compared to Three Months Ended March 31, 2025. Net Income decreased by $29 million primarily due to unfavorable impacts of the Pepco Maryland multi-year plan reconciliation and related disallowance of capitalized costs, and increases in depreciation and interest expense.
Current wording
Six Months Ended June 30, 2026 Compared to Six Months Ended June 30, 2025. Net Income decreased by $48 million primarily due to unfavorable impacts of the Pepco Maryland multi-year plan reconciliation and related disallowance of capitalized costs, increases in depreciation expense, severance costs related to the cost management program, interest, and various operating expenses.
Previous wording
Distribution Revenue increased for the three months ended March 31, 2026 compared to the same period in 2025 primarily due to favorable impacts of the District of Columbia multi-year plans and customer growth in Maryland.
Current wording
Distribution Revenue increased for the three and six months ended June 30, 2026 compared to the same periods in 2025 primarily due to favorable impacts of the District of Columbia multi-year plans and customer growth in Maryland.
Previous wording
Three Months Ended March 31, 2026 Compared to Three Months Ended March 31, 2025. Net income increased by $8 million primarily due to approved Delaware electric DSIC and natural gas rates, favorable weather conditions at Delaware electric and natural gas service territories, partially offset by an increase in storm costs.
Current wording
Six Months Ended June 30, 2026 Compared to Six Months Ended June 30, 2025. Net income decreased by $5 million primarily due to an increase in property taxes, depreciation expense, severance costs related to the cost management program, storm costs and interest expense, partially offset by approved Delaware electric DSIC and natural gas rates, and favorable weather conditions at Delaware electric and natural gas service territories.
Previous wording
Weather. The demand for electricity and natural gas in Delaware 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 March 31, 2026 compared to the same period in 2025, Operating revenues related to weather increased due to favorable weather conditions in DPL's Delaware electric and natural gas service territories.
Current wording
Weather. The demand for electricity and natural gas in Delaware 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, 2026 compared to the same period in 2025, Operating revenues related to weather remained relatively consistent. During the six months ended June 30, 2026 compared to the same period in 2025, Operating revenues related to weather increased due to favorable weather conditions in DPL's Delaware electric and natural gas service territories.
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 20-year period in DPL's Delaware electric service territory and a 30-year period in DPL's Delaware natural gas service territory. The changes in heating and cooling degree days in DPL's Delaware service territory for the three months ended March 31, 2026, compared to same period in 2025 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 20-year period in DPL's Delaware electric service territory and a 30-year period in DPL's Delaware natural gas service territory. The changes in heating and cooling degree days in DPL's Delaware service territory for the three and six months ended June 30, 2026, compared to same periods in 2025 and normal weather consisted of the following:
Previous wording
Volume, exclusive of the effects of weather, remained relatively consistent for the three months ended March 31, 2026 compared to the same period in 2025.
Current wording
Volume, exclusive of the effects of weather, remained relatively consistent for the three and six months ended June 30, 2026 compared to the same periods in 2025.
Previous wording
Distribution Revenue increased for the three months ended March 31, 2026 compared to the same period in 2025 primarily due to Delaware natural gas rates that became effective in 2025 & electric DSIC rates that became effective in 2026.
Current wording
Distribution Revenue remained relatively consistent for the three months ended June 30, 2026 compared to the same period in 2025. During the six months ended June 30, 2026, compared to the same period in 2025, distribution revenue increased primarily due to Delaware natural gas rates that became effective in 2025 & electric DSIC rates that became effective in 2026.
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. During the three months ended March 31, 2026 compared to the same period in 2025, transmission revenue 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. During the three and six months ended June 30, 2026 compared to the same period in 2025, transmission revenue increased due to increases in underlying costs and capital investments.
Previous wording
(b)Reflects the cost recovery associated with EmPOWER Maryland. Please refer to 2025 10-K Note 2 — Regulatory Matters for additional information.
Current wording
(b)Reflects the cost recovery associated with EmPOWER Maryland. Please refer to 2025 10-K Note 2 — Regulatory Matters of the Combined Notes to Consolidated Financial Statements for additional information
Showing the first 40 of 58 pairs. Open the source sections for the rest.
Rearranged current paragraphs (7)
Current report — wording carried from elsewhere
Note that rate increases are associated with updated recovery rates for costs and investments to serve customers. The increases were partially offset by:
Current report — wording carried from elsewhere
•Higher credit loss expense at BGE.
Current report — wording carried from elsewhere
•Favorable impacts of approved rate increases at ComEd, BGE and PHI;
Current report — wording carried from elsewhere
•Absence of Customer Surcharge Credits at PECO;
Current report — wording carried from elsewhere
•Higher interest expense at PECO, PHI, and Exelon Corporate;
Current report — wording carried from elsewhere
•Higher depreciation expense at PECO and PHI;
Current report — wording carried from elsewhere
Three Months Ended June 30, 2026 Compared to Three Months Ended June 30, 2025. Net Income increased by $21 million as compared to the same period in 2025, primarily due to higher distribution and transmission rate base driven by incremental investments to serve customers and higher AFUDC.
Rearranged previous paragraphs (5)
Previous report — wording carried elsewhere
PECO’s service territory for the three months ended March 31, 2026, compared to the same period in 2025, and normal weather consisted of the following:
Previous report — wording carried elsewhere
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 months ended March 31, 2026, compared to the same period in 2025 remained relatively consistent.
Previous report — wording carried elsewhere
(a)Reflects the cost recovery associated with EmPOWER Maryland. Please refer to 2025 10-K Note 2 — Regulatory Matters for additional information.
Previous report — wording carried elsewhere
(a)Reflects the cost recovery associated with EmPOWER Maryland. Please refer to 2025 10-K Note 2 — Regulatory Matters of the Combined Notes to Consolidated Financial Statements for additional information.
Previous report — wording carried elsewhere
Distribution Revenue remained relatively consistent for the three months ended March 31, 2026 compared to the same period in 2025.