ATLANTIC CITY ELECTRIC CO

For the period ended Sep 30, 2026. Filed Oct 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.

Sep 30, 2026 · Filed Oct 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 September 30,		Nine Months EndedSeptember 30,
(In millions, except per share data)	2026	2025	2026	2025
Operating revenues
Electric operating revenues	$7,103	$6,690	$18,971	$17,872
Natural gas operating revenues	251	235	1,695	1,595
Revenues from alternative revenue programs	(35)	(220)	(138)	(621)
Total operating revenues	7,319	6,705	20,528	18,846
Operating expenses
Purchased power	2,865	2,645	7,380	6,640
Purchased fuel	52	47	524	471
Operating and maintenance	1,564	1,172	4,416	3,840
Depreciation and amortization	991	912	2,910	2,717
Taxes other than income taxes	468	429	1,335	1,216
Total operating expenses	5,940	5,205	16,565	14,884
Gain on sale of assets	—	—	—	1
Operating income	1,379	1,500	3,963	3,963
Other income and (deductions)
Interest expense, net	(587)	(531)	(1,702)	(1,560)
Interest expense to affiliates	(6)	(7)	(19)	(18)
Other, net	97	68	256	185
Total other income and (deductions)	(496)	(470)	(1,465)	(1,393)
Income before income taxes	883	1,030	2,498	2,570
Income taxes	154	155	454	396
Net income attributable to common shareholders	$729	$875	$2,044	$2,174
Comprehensive income, net of income taxes
Net income	$729	$875	$2,044	$2,174
Other comprehensive income, net of income taxes
Pension and non-pension postretirement benefit plans:
Actuarial losses reclassified to periodic benefit cost	7	5	21	16
Pension and non-pension postretirement benefit plans valuation adjustments	—	—	3	5
Unrealized gain (loss) on cash flow hedges	10	(2)	5	(16)
Other comprehensive income	17	3	29	5
Comprehensive income attributable to common shareholders	$746	$878	$2,073	$2,179
Average shares of common stock outstanding:
Basic	1,035	1,011	1,028	1,010
Assumed exercise and/or distributions of stock-based awards(a)	2	2	2	1
Diluted	1,037	1,013	1,030	1,011
Earnings per average common share
Basic	$0.70	$0.87	$1.99	$2.15
Diluted	$0.70	$0.86	$1.98	$2.15

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

	Nine Months EndedSeptember 30,
(In millions)	2026	2025
Cash flows from operating activities
Net income	$2,044	$2,174
Adjustments to reconcile net income to net cash flows provided by operating activities:
Depreciation, amortization, and accretion	2,912	2,719
Gain on sales of assets	—	(1)
Asset disallowances, impairments and write-offs	232	—
Deferred income taxes and amortization of investment tax credits	564	293
Net fair value changes related to derivatives	—	3
Other non-cash operating activities	594	1,088
Changes in assets and liabilities:
Accounts receivable	379	(422)
Inventories	(96)	(41)
Accounts payable and accrued expenses	(1)	165
Collateral received (paid), net	39	(25)
Income taxes	(136)	19
Regulatory assets and liabilities, net	(1,063)	(390)
Pension and non-pension postretirement benefit contributions	(370)	(313)
Other assets and liabilities	306	(259)
Net cash flows provided by operating activities	5,404	5,010
Cash flows from investing activities
Capital expenditures	(6,799)	(6,095)
Proceeds from sales of assets	—	2
Other investing activities	12	(7)
Net cash flows used in investing activities	(6,787)	(6,100)
Cash flows from financing activities
Changes in short-term borrowings	(178)	(779)
Proceeds from short-term borrowings with maturities greater than 90 days	500	—
Issuance of long-term debt	4,425	4,925
Retirement of long-term debt	(1,600)	(807)
Issuance of common stock	483	173
Dividends paid on common stock	(1,294)	(1,212)
Proceeds from employee stock plans	37	24
Other financing activities	(71)	(75)
Net cash flows provided by financing activities	2,302	2,249
Increase in cash, restricted cash, and cash equivalents	919	1,159
Cash, restricted cash, and cash equivalents at beginning of period	1,201	939
Cash, restricted cash, and cash equivalents at end of period	$2,120	$2,098
Supplemental cash flow information
Decrease in capital expenditures not paid	(4)	(12)
Decrease in PP&E related to ARO update	(4)	(5)

(In millions)	September 30, 2026	December 31, 2025
ASSETS
Current assets
Cash and cash equivalents	$1,469	$626
Restricted cash and cash equivalents	602	525
Accounts receivable
Customer accounts receivable	3,669	3,732
Customer allowance for credit losses	(507)	(435)
Customer accounts receivable, net	3,162	3,297
Other accounts receivable	1,574	1,879
Other allowance for credit losses	(96)	(94)
Other accounts receivable, net	1,478	1,785
Inventories, net
Fossil fuel	99	88
Materials and supplies	863	780
Regulatory assets	1,278	1,359
Prepaid renewable energy credits	466	563
Other	523	523
Total current assets	9,940	9,546
Property, plant, and equipment (net of accumulated depreciation and amortization of $21,437 and $20,080 as of September 30, 2026 and December 31, 2025, respectively)	88,557	84,318
Deferred debits and other assets
Regulatory assets	9,560	9,214
Goodwill	6,630	6,630
Receivable related to Regulatory Agreement Units	5,196	4,755
Investments	336	312
Other	2,018	1,795
Total deferred debits and other assets	23,740	22,706
Total assets	$122,237	$116,570

(In millions)	September 30, 2026	December 31, 2025
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Short-term borrowings	$934	$612
Long-term debt due within one year	1,078	1,665
Accounts payable	3,711	3,721
Accrued expenses	1,692	1,582
Payables to affiliates	5	5
Customer deposits	609	533
Regulatory liabilities	551	1,128
Mark-to-market derivative liabilities	21	30
Unamortized energy contract liabilities	4	5
Renewable energy credit obligations	364	473
Other	675	577
Total current liabilities	9,644	10,331
Long-term debt	50,791	47,413
Long-term debt to financing trusts	390	390
Deferred credits and other liabilities
Deferred income taxes and unamortized investment tax credits	14,596	13,715
Regulatory liabilities	11,684	11,016
Pension obligations	1,428	1,749
Non-pension postretirement benefit obligations	572	546
Asset retirement obligations	318	321
Mark-to-market derivative liabilities	96	106
Unamortized energy contract liabilities	13	16
Other	2,573	2,169
Total deferred credits and other liabilities	31,280	29,638
Total liabilities	92,105	87,772
Commitments and contingencies
Shareholders’ equity
Common stock (No par value, 2,000 shares authorized, 1,035 shares and 1,023 shares outstanding as of September 30, 2026 and December 31, 2025, respectively)	22,663	22,106
Treasury stock, at cost (2 shares as of September 30, 2026 and December 31, 2025)	(123)	(123)
Retained earnings	8,325	7,577
Accumulated other comprehensive loss, net	(733)	(762)
Total shareholders’ equity	30,132	28,798
Total liabilities and shareholders’ equity	$122,237	$116,570

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