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$45.65+0.1%Stored close · as of Nov 9, 2026

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Contents

ITEM 1. FINANCIAL STATEMENTS

	Three Months Ended June 30,		Six Months EndedJune 30,
(In millions, except per share data)	2026	2025	2026	2025
Operating revenues
Electric operating revenues	$5,710	$5,365	$11,868	$11,182
Natural gas operating revenues	327	337	1,443	1,361
Revenues from alternative revenue programs	(70)	(275)	(102)	(402)
Total operating revenues	5,967	5,427	13,209	12,141
Operating expenses
Purchased power	2,132	1,811	4,515	3,995
Purchased fuel	79	85	472	423
Operating and maintenance	1,386	1,321	2,852	2,668
Depreciation and amortization	968	902	1,920	1,805
Taxes other than income taxes	423	383	866	788
Total operating expenses	4,988	4,502	10,625	9,679
Gain on sale of assets	—	2	—	1
Operating income	979	927	2,584	2,463
Other income and (deductions)
Interest expense, net	(568)	(524)	(1,116)	(1,028)
Interest expense to affiliates	(6)	(7)	(12)	(12)
Other, net	90	65	159	117
Total other income and (deductions)	(484)	(466)	(969)	(923)
Income before income taxes	495	461	1,615	1,540
Income taxes	99	70	300	240
Net income attributable to common shareholders	$396	$391	$1,315	$1,300
Comprehensive income, net of income taxes
Net income	$396	$391	$1,315	$1,300
Other comprehensive income, net of income taxes
Pension and non-pension postretirement benefit plans:
Actuarial losses reclassified to periodic benefit cost	7	5	14	11
Pension and non-pension postretirement benefit plans valuation adjustments	(1)	1	3	5
Unrealized (loss) on cash flow hedges	—	(6)	(5)	(14)
Other comprehensive income	6	—	12	2
Comprehensive income attributable to common shareholders	$402	$391	$1,327	$1,302
Average shares of common stock outstanding:
Basic	1,025	1,010	1,025	1,009
Assumed exercise and/or distributions of stock-based awards(a)	3	2	2	2
Diluted	1,028	1,012	1,027	1,011
Earnings per average common share
Basic	$0.39	$0.39	$1.28	$1.29
Diluted	$0.39	$0.39	$1.28	$1.29

(a)The dilutive effects of stock-based compensation awards are calculated using the treasury stock method for all periods presented.

	Six Months EndedJune 30,
(In millions)	2026	2025
Cash flows from operating activities
Net income	$1,315	$1,300
Adjustments to reconcile net income to net cash flows provided by operating activities:
Depreciation, amortization, and accretion	1,921	1,806
Deferred income taxes and amortization of investment tax credits	432	165
Net fair value changes related to derivatives	—	3
Other non-cash operating activities	464	734
Changes in assets and liabilities:
Accounts receivable	787	(460)
Inventories	(29)	(20)
Accounts payable and accrued expenses	(210)	(38)
Collateral received, net	72	14
Income taxes	(140)	(3)
Regulatory assets and liabilities, net	(874)	(294)
Pension and non-pension postretirement benefit contributions	(356)	(302)
Other assets and liabilities	287	(194)
Net cash flows provided by operating activities	3,669	2,711
Cash flows from investing activities
Capital expenditures	(4,558)	(3,959)
Proceeds from sales of assets	—	2
Other investing activities	(2)	(5)
Net cash flows used in investing activities	(4,560)	(3,962)
Cash flows from financing activities
Changes in short-term borrowings	131	(750)
Proceeds from short-term borrowings with maturities greater than 90 days	500	—
Issuance of long-term debt	3,600	3,800
Retirement of long-term debt	(1,600)	(807)
Issuance of common stock	382	173
Dividends paid on common stock	(860)	(808)
Proceeds from employee stock plans	24	11
Other financing activities	(57)	(56)
Net cash flows provided by financing activities	2,120	1,563
Increase in cash, restricted cash, and cash equivalents	1,229	312
Cash, restricted cash, and cash equivalents at beginning of period	1,201	939
Cash, restricted cash, and cash equivalents at end of period	$2,430	$1,251
Supplemental cash flow information
Decrease in capital expenditures not paid	(253)	(100)

(In millions)	June 30, 2026	December 31, 2025
ASSETS
Current assets
Cash and cash equivalents	$1,813	$626
Restricted cash and cash equivalents	608	525
Accounts receivable
Customer accounts receivable	3,567	3,732
Customer allowance for credit losses	(508)	(435)
Customer accounts receivable, net	3,059	3,297
Other accounts receivable	1,294	1,879
Other allowance for credit losses	(94)	(94)
Other accounts receivable, net	1,200	1,785
Inventories, net
Fossil fuel	62	88
Materials and supplies	832	780
Regulatory assets	1,352	1,359
Prepaid renewable energy credits	381	563
Other	490	523
Total current assets	9,797	9,546
Property, plant, and equipment (net of accumulated depreciation and amortization of $21,230 and $20,080 as of June 30, 2026 and December 31, 2025, respectively)	87,123	84,318
Deferred debits and other assets
Regulatory assets	9,412	9,214
Goodwill	6,630	6,630
Receivable related to Regulatory Agreement Units	5,280	4,755
Investments	327	312
Other	1,936	1,795
Total deferred debits and other assets	23,585	22,706
Total assets	$120,505	$116,570

(In millions)	June 30, 2026	December 31, 2025
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Short-term borrowings	$1,243	$612
Long-term debt due within one year	727	1,665
Accounts payable	3,475	3,721
Accrued expenses	1,447	1,582
Payables to affiliates	5	5
Customer deposits	589	533
Regulatory liabilities	573	1,128
Mark-to-market derivative liabilities	23	30
Unamortized energy contract liabilities	4	5
Renewable energy credit obligations	332	473
Other	590	577
Total current liabilities	9,008	10,331
Long-term debt	50,313	47,413
Long-term debt to financing trusts	390	390
Deferred credits and other liabilities
Deferred income taxes and unamortized investment tax credits	14,348	13,715
Regulatory liabilities	11,727	11,016
Pension obligations	1,429	1,749
Non-pension postretirement benefit obligations	564	546
Asset retirement obligations	322	321
Mark-to-market derivative liabilities	105	106
Unamortized energy contract liabilities	14	16
Other	2,587	2,169
Total deferred credits and other liabilities	31,096	29,638
Total liabilities	90,807	87,772
Commitments and contingencies
Shareholders’ equity
Common stock (No par value, 2,000 shares authorized, 1,032 shares and 1,023 shares outstanding as of June 30, 2026 and December 31, 2025, respectively)	22,540	22,106
Treasury stock, at cost (2 shares as of June 30, 2026 and December 31, 2025)	(123)	(123)
Retained earnings	8,031	7,577
Accumulated other comprehensive loss, net	(750)	(762)
Total shareholders’ equity	29,698	28,798
Total liabilities and shareholders’ equity	$120,505	$116,570

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