Segment Information

6 Months Ended

Jun. 30, 2022

Segment Reporting [Abstract]

Segment Information

Segment Information

Operating segments are determined based on information used by the CODM in deciding how to evaluate performance and allocate resources. We have five reportable segments consisting of the Mid-Atlantic, Midwest, New York, ERCOT, and all other power regions referred to collectively as “Other Power Regions.”

The basis for our reportable segments is the integrated management of our electricity business that is located in different geographic regions, and largely representative of the footprints of ISO/RTO and/or NERC regions, which utilize multiple supply sources to provide electricity through various distribution channels (wholesale and retail). Our hedging strategies and risk metrics are also aligned to these same geographic regions. Descriptions of each of our five reportable segments are as follows:

•Mid-Atlantic represents operations in the eastern half of PJM, which includes New Jersey, Maryland, Virginia, West Virginia, Delaware, the District of Columbia, and parts of Pennsylvania and North Carolina.

•Midwest represents operations in the western half of PJM and the United States footprint of MISO, excluding MISO’s Southern Region.

•New York represents operations within NYISO.

•ERCOT represents operations within Electric Reliability Council of Texas that covers a majority of the state of Texas.

•Other Power Regions:

•New England represents operations within ISO-NE.

•South represents operations in the FRCC, MISO’s Southern Region, and the remaining portions of the SERC not included within MISO or PJM.

•West represents operations in the WECC, which includes CAISO.

•Canada represents operations across the entire country of Canada and includes AESO, OIESO, and the Canadian portion of MISO.

The CODM evaluates the performance of our electric business activities and allocates resources based on Revenues less Purchased Power and Fuel Expense (RNF). We believe this is a useful measurement of operational performance, although it 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. Our operating revenues include all sales to third parties and affiliate sales to Exelon's utility subsidiaries prior to the separation on February 1, 2022. Purchased power costs include all costs associated with the procurement and supply of electricity including capacity, energy, and ancillary services. Fuel expense includes the fuel costs for our owned generation and fuel costs associated with tolling agreements. The results of our other business activities are not regularly reviewed by the CODM and are therefore not classified as operating segments or included in the regional reportable segment amounts. These activities include natural gas, as well as other miscellaneous business activities that are not significant to our overall operating revenues or results of operations. Further, our unrealized mark-to-market gains and losses on economic hedging activities and our amortization of certain intangible assets and liabilities relating to commodity contracts recorded at fair value from mergers and acquisitions are also excluded from the regional reportable segment amounts. The CODM does not use a measure of total assets in making decisions regarding allocating resources to or assessing the performance of these reportable segments.

The following tables disaggregate the revenue recognized from contracts with customers into categories that depict how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors. The disaggregation of revenues reflects our two primary products of power sales and natural gas sales, with further disaggregation of power sales provided by geographic region. The following tables also show the reconciliation of reportable segment revenues and RNF to our total revenues and RNF for the three and six months ended June 30, 2022 and 2021.

	Three Months Ended June 30, 2022
	Revenues from external customers(a)
	Contracts with customers		Other(b)		Total		Intersegment Revenues		Total Revenues
Mid-Atlantic	$	1,178	$	22	$	1,200	$	2	$	1,202
Midwest	1,319		(217)		1,102		(1)		1,101
New York	461		(68)		393		(3)		390
ERCOT	252		237		489		(4)		485
Other Power Regions	1,021		300		1,321		6		1,327
Total Competitive Businesses Electric Revenues	4,231		274		4,505		—		4,505
Competitive Businesses Natural Gas Revenues	490		545		1,035		—		1,035
Competitive Businesses Other Revenues(c)	175		(250)		(75)		—		(75)
Total Consolidated Operating Revenues	$	4,896	$	569	$	5,465	$	—	$	5,465

	Three Months Ended June 30, 2021
	Revenues from external customers(a)
	Contracts with customers		Other(b)		Total		Intersegment Revenues		Total Revenues
Mid-Atlantic	$	1,062	$	24	$	1,086	$	5	$	1,091
Midwest	975		(13)		962		—		962
New York	376		5		381		—		381
ERCOT	179		92		271		4		275
Other Power Regions	921		126		1,047		(9)		1,038
Total Competitive Businesses Electric Revenues	3,513		234		3,747		—		3,747
Competitive Businesses Natural Gas Revenues	253		254		507		—		507
Competitive Businesses Other Revenues(c)	107		(208)		(101)		—		(101)
Total Consolidated Operating Revenues	$	3,873	$	280	$	4,153	$	—	$	4,153

	Six Months Ended June 30, 2022
	Revenues from external customers(a)
	Contracts with customers		Other(b)		Total		Intersegment Revenues		Total Revenues
Mid-Atlantic	$	2,332	$	(27)	$	2,305	$	2	$	2,307
Midwest	2,566		(267)		2,299		(1)		2,298
New York	955		(203)		752		3		755
ERCOT	415		309		724		(4)		720
Other Power Regions	2,441		813		3,254		—		3,254
Total Competitive Businesses Electric Revenues	8,709		625		9,334		—		9,334
Competitive Businesses Natural Gas Revenues	1,300		1,179		2,479		—		2,479
Competitive Businesses Other Revenues(c)	261		(1,018)		(757)		—		(757)
Total Consolidated Operating Revenues	$	10,270	$	786	$	11,056	$	—	$	11,056

	Six Months Ended June 30, 2021
	Revenues from external customers(a)
	Contracts with customers		Other(b)		Total		Intersegment Revenues		Total Revenues
Mid-Atlantic	$	2,233	$	11	$	2,244	$	11	$	2,255
Midwest	1,983		(24)		1,959		1		1,960
New York	759		(40)		719		—		719
ERCOT	533		(10)		523		9		532
Other Power Regions	2,095		395		2,490		(21)		2,469
Total Competitive Businesses Electric Revenues	7,603		332		7,935		—		7,935
Competitive Businesses Natural Gas Revenues	1,117		716		1,833		—		1,833
Competitive Businesses Other Revenues(c)	195		(251)		(56)		—		(56)
Total Consolidated Operating Revenues	$	8,915	$	797	$	9,712	$	—	$	9,712

__________

(a)Includes all wholesale and retail electric sales to third parties and affiliate sales to Exelon's utility subsidiaries prior to the separation on February 1, 2022.

(b)Includes revenues from derivatives and leases.

(c)Represents activities not allocated to a region. See text above for a description of included activities. Includes unrealized mark-to-market losses of $299 million and $239 million for the three months ended June 30, 2022 and 2021, respectively, and unrealized mark-to-market losses of $1,219 million and $323 million for the six months ended June 30, 2022 and 2021, respectively, and the elimination of intersegment revenues.

	Three Months Ended June 30, 2022						Three Months Ended June 30, 2021
	RNF from external customers(a)		Intersegment RNF		Total RNF		RNF from external customers(a)		Intersegment RNF		Total RNF
Mid-Atlantic	$	542	$	3	$	545	$	567	$	5	$	572
Midwest	651		1		652		658		—		658
New York	294		(1)		293		289		3		292
ERCOT	110		(21)		89		80		3		83
Other Power Regions	175		(6)		169		157		(21)		136
Total RNF for Reportable Segments	1,772		(24)		1,748		1,751		(10)		1,741
Other(b)	185		24		209		455		10		465
Total RNF	$	1,957	$	—	$	1,957	$	2,206	$	—	$	2,206

	Six Months Ended June 30, 2022						Six Months Ended June 30, 2021
	RNF from external customers(a)		Intersegment RNF		Total RNF		RNF from external customers(a)		Intersegment RNF		Total RNF
Mid-Atlantic	$	1,051	$	4	$	1,055	$	1,130	$	11	$	1,141
Midwest	1,435		2		1,437		1,359		1		1,360
New York	554		6		560		531		5		536
ERCOT	216		(47)		169		(957)		(145)		(1,102)
Other Power Regions	470		(15)		455		409		(56)		353
Total RNF for Reportable Segments	3,726		(50)		3,676		2,472		(184)		2,288
Other(b)	271		50		321		683		184		867
Total RNF	$	3,997	$	—	$	3,997	$	3,155	$	—	$	3,155

__________

(a)Includes purchases and sales from/to third parties and affiliate sales to Exelon's utility subsidiaries prior to the separation on February 1, 2022.

(b)Other represents activities not allocated to a region. See text above for a description of included activities. Primarily includes:

•Unrealized mark-to-market gains of $44 million and $314 million for the three months ended June 30, 2022 and 2021, respectively, and unrealized mark-to-market losses of ($47) million and gains of $489 million for the six months ended June 30, 2022 and 2021, respectively;

•Accelerated nuclear fuel amortization associated with the announced early plant retirements as discussed in Note 7 - Early Plant Retirements of $52 million and $106 million for the three and six months ended June 30, 2021, respectively.

•The elimination of intersegment RNF.