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 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.

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

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:

•Favorable impacts of approved rate increases at ComEd, BGE and PHI;

•Absence of Customer Relief Fund contribution at Exelon Corporate;

•Absence of Customer Surcharge Credits at PECO;

•Higher AFUDC at ComEd; and

•Favorable weather at PECO.

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

•Higher depreciation expense at PECO and PHI;

•Higher interest expense at PECO and Exelon Corporate; and

•Higher credit loss expense at BGE.

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:

•Favorable impacts of approved rate increases at ComEd, BGE and PHI;

•Absence of Customer Relief Fund contribution at Exelon Corporate;

•Absence of Customer Surcharge Credits at PECO;

•Higher AFUDC at ComEd; and

•Favorable weather at PECO;

Note that rate increases are associated with updated recovery rates for costs and investments to serve customers, driving top quartile reliability and avoiding outage costs. The increases were partially offset by:

•Timing of distribution earnings at ComEd;

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

•Higher depreciation expense at PECO and PHI;

•Higher credit loss expense at BGE; and

•Unfavorable impacts of the Pepco Maryland multi-year plan reconciliation 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 six months ended June 30, 2026 compared to the same period in 2025:

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 2026 and 2025 ranged from 24.0% to 29.0%.

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

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

(c)Represents the disallowance of certain capitalized costs.