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, 2026 compared to the same period in 2025. For additional information regarding the financial results for the three and nine months ended September 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 September 30, 2026 Compared to Three Months Ended September 30, 2025. Net income attributable to common shareholders decreased by $146 million and diluted earnings per average common share decreased to $0.70 in 2026 from $0.86 in 2025 primarily due to:

•Higher write-offs associated with Pepco's Maryland Base Rate Case at PHI;

•Higher storm costs at PECO due to the absence of extraordinary February and June storm cost deferrals recognized in 2025 and increased storm costs;

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

•Higher project impairments at BGE;

•Higher depreciation expense at PECO and PHI;

•Higher income taxes at PECO;

•Higher contracting costs at PECO; and

•Higher storm costs at PHI.

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

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

•Higher AFUDC at ComEd;

•Absence of Customer Surcharge Credits at PECO;

•Favorable weather at PECO;

•Lower contracting costs at BGE; and

•Lower income taxes at Exelon Corporate.

Nine Months Ended September 30, 2026 Compared to Nine Months Ended September 30, 2025. Net income attributable to common shareholders decreased by $130 million and diluted earnings per average common share decreased to $1.98 in 2026 from $2.15 in 2025 primarily due to:

•Higher write-offs associated with Pepco's Maryland Base Rate Case at PHI;

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

•Higher depreciation expense at PECO and PHI;

•Timing of distribution earnings at ComEd;

•Higher storm costs at PECO due to the absence of extraordinary February and June storm cost deferrals recognized in 2025;

•Higher project impairments at BGE;

•Higher contracting costs at PECO;

•Higher income taxes at PECO;

•Higher credit loss expense at BGE;

•Higher storm costs at PHI; and

•Unfavorable impacts of the Pepco Maryland multi-year plan reconciliation at PHI.

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 decreases were partially offset by:

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

•Absence of Customer Relief Fund contribution at Exelon Corporate;

•Higher AFUDC at ComEd;

•Absence of Customer Surcharge Credits at PECO;

•Favorable weather at PECO;

•Lower contracting costs at BGE;

•Lower storm costs at PECO; and

•Lower income taxes at Exelon Corporate.

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, 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)In 2025, primarily represents severance costs related to a cost management program. In 2026, represents third-party consulting and severance costs related to a cost management program.

(b)Represents costs related to capital project impairments.

(c)Represents the disallowance of certain capitalized costs.

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