XML 74 R31.htm IDEA: XBRL DOCUMENT v3.20.2
Income Taxes (Tables)
 9 Months Ended
Sep. 30, 2020
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items]  
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]
The effective income tax rate from continuing operations varies from the U.S. federal statutory rate principally due to the following:
Three Months Ended September 30, 2020(a)
ExelonGenerationComEd
PECO(b)
BGE
PHI(c)
PepcoDPL
ACE(c)
U.S. Federal statutory rate21.0%21.0%21.0%21.0%21.0%21.0%21.0%21.0%21.0%
Increase (decrease) due to:
State income taxes, net of Federal income tax benefit12.3(10.3)8.1(6.2)5.15.54.66.66.9
Qualified NDT fund income13.247.4———————
Amortization of investment tax credit, including deferred taxes on basis difference(1.4)(4.5)(0.2)—(0.1)(0.2)(0.1)(0.2)(0.3)
Plant basis differences(4.3)—(0.6)(23.3)(1.2)(1.5)(2.1)(0.4)(1.3)
Production tax credits and other credits(3.0)(9.2)(0.4)—(0.8)(0.5)(0.5)(0.5)(0.4)
Noncontrolling interests0.82.9———————
Excess deferred tax amortization(10.1)—(5.6)(3.8)(10.6)(24.9)(20.0)(23.6)(36.8)
Tax settlements(0.2)(0.7)———————
Other(0.8)(0.9)1.1(0.8)(0.3)0.1(0.4)0.70.6
Effective income tax rate27.5%45.7%23.4%(13.1)%13.1%(0.5)%2.5%3.6%(10.3)%
Three Months Ended September 30, 2019(a)
ExelonGenerationComEdPECOBGEPHIPepcoDPLACE
U.S. Federal statutory rate21.0%21.0%21.0%21.0%21.0%21.0%21.0%21.0%21.0%
Increase (decrease) due to:
State income taxes, net of Federal income tax benefit6.45.28.1(0.3)6.34.81.96.66.9
Qualified NDT fund income3.27.1———————
Amortization of investment tax credit, including deferred taxes on basis difference(4.1)(8.9)(0.2)—(0.1)(0.2)(0.1)(0.2)(0.3)
Plant basis differences(1.7)—(1.0)(7.5)(1.1)(1.8)(2.6)(0.6)(1.9)
Production tax credits and other credits(1.2)(2.7)———————
Noncontrolling interests(2.2)(4.8)———————
Excess deferred tax amortization(6.5)—(9.9)(3.6)(8.0)(17.7)(16.3)(13.5)(23.3)
Other0.70.50.4(0.5)(0.2)0.81.0(0.1)0.7
Effective income tax rate15.6%17.4%18.4%9.1%17.9%6.9%4.9%13.2%3.1%

Nine Months Ended September 30, 2020(a)
Exelon
Generation(d)
ComEd(e)
PECO(b)
BGE(c)
PHI(c)
Pepco(c)
DPL(c)
ACE(c)
U.S. Federal statutory rate21.0%21.0%21.0%21.0%21.0%21.0%21.0%21.0%21.0%
Increase (decrease) due to:
State income taxes, net of Federal income tax benefit9.3—12.7(3.4)5.55.04.26.56.8
Qualified NDT fund income3.210.0———————
Deferred Prosecution Agreement payments2.5—9.4——————
Amortization of investment tax credit, including deferred taxes on basis difference(1.2)(3.2)(0.3)—(0.1)(0.2)(0.1)(0.3)(0.5)
Plant basis differences(4.0)—(0.9)(15.9)(1.8)(2.2)(2.4)(0.5)(3.7)
Production tax credits and other credits(2.6)(7.0)(0.4)—(0.4)(0.3)(0.3)(0.2)(0.4)
Noncontrolling interests1.03.1———————
Excess deferred tax amortization(15.8)—(11.8)(3.5)(15.0)(45.3)(29.2)(53.6)(81.4)
Tax settlements(5.0)(15.7)———————
Other0.1(0.5)2.1(0.5)(0.5)(0.6)(0.8)(1.1)—
Effective income tax rate8.5%7.7%31.8%(2.3)%8.7%(22.6)%(7.6)%(28.2)%(58.2)%
Nine Months Ended September 30, 2019(a)
ExelonGenerationComEdPECOBGEPHIPepcoDPLACE
U.S. Federal statutory rate21.0%21.0%21.0%21.0%21.0%21.0%21.0%21.0%21.0%
Increase (decrease) due to:
State income taxes, net of Federal income tax benefit5.14.28.2—6.44.82.06.76.9
Qualified NDT fund income5.311.9———————
Amortization of investment tax credit, including deferred taxes on basis difference(1.9)(4.0)(0.2)—(0.1)(0.2)(0.1)(0.2)(0.3)
Plant basis differences(1.6)—(0.7)(6.8)(1.1)(1.8)(2.3)(0.6)(2.0)
Production tax credits and other credits(1.0)(2.1)———————
Noncontrolling interests(1.0)(2.3)———————
Excess deferred tax amortization(6.0)—(9.2)(2.9)(7.9)(18.6)(17.3)(15.0)(23.4)
Other0.8(0.1)0.2(0.2)0.10.50.70.2—
Effective income tax rate20.7%28.6%19.3%11.1%18.4%5.7%4.0%12.1%2.2%
__________
(a)Positive percentages represent income tax expense. Negative percentages represent income tax benefit.
(b)At PECO, the lower effective tax rate is primarily related to an increase in plant basis differences attributable to storm repairs.
(c)At BGE, PHI, Pepco, DPL, and ACE, the lower effective tax rate is primarily attributable to accelerated amortization of transmission related deferred income tax regulatory liabilities as a result of regulatory settlements. See Note 2 — Regulatory Matters for additional information.
(d)At Generation, the lower effective tax rate is primarily attributable to tax settlements.
(e)At ComEd, the higher effective tax rate is primarily related to the nondeductible Deferred Prosecution Agreement payments. See Note 14 — Commitments and Contingencies for additional information.
Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block]
Exelon, Generation, PHI, and ACE have the following unrecognized tax benefits as of September 30, 2020 and December 31, 2019. ComEd, PECO, BGE, Pepco, and DPL's amounts are not material.
ExelonGenerationPHIACE
September 30, 2020$125 $49 $53 $16 
December 31, 2019507 441 48 14 
Summary of Positions for which Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Table Text Block]
The following table represents Exelon's, PHI's, and ACE's unrecognized federal and state tax benefits that could significantly decrease within the 12 months after the reporting date as a result of completing audits, potential settlements, refund claims, and the outcomes of pending court cases as of September 30, 2020. Generation's, ComEd's, PECO's, BGE's, Pepco's, and DPL's amounts are not material.
ExelonPHI
ACE(a)
$14 $14 $14 
__________
(a)The unrecognized tax benefit related to ACE, if recognized, may be included in future base rates and that portion would have no impact to the effective tax rate.
Allocation of Tax Benefits The following table presents the allocation of federal tax benefits from Exelon under the Tax Sharing Agreement.
GenerationComEdPECOBGEPHIPepcoDPLACE
September 30, 2020$64 $14 $17 $— $17 $8 $6 $1 
December 31, 201941 — 14 3 7 6 1 —