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Regulatory Matters (Tables)

12 Months Ended

Dec. 31, 2020

Public Utilities, General Disclosures [Line Items]

Public Utilities Distribution Rate Cases [Table Text Block]

The following tables show the completed and pending distribution base rate case proceedings in 2020.

Completed Distribution Base Rate Case Proceedings


Registrant/Jurisdiction	Filing Date	Service	Requested Revenue Requirement (Decrease) Increase		Approved Revenue Requirement (Decrease) Increase		Approved ROE		Approval Date	Rate Effective Date
ComEd - Illinois(a)	April 8, 2019	Electric	$	(6)	$	(17)	8.91	%	December 4, 2019	January 1, 2020
ComEd - Illinois(a)	April 16, 2020	Electric	(11)		(14)		8.38	%	December 9, 2020	January 1, 2021

BGE - Maryland(b)	May 15, 2020 (amended September 11, 2020)	Electric	137		81		9.50	%	December 16, 2020	January 1, 2021
		Natural Gas	91		21		9.65	%
DPL - Maryland	December 5, 2019 (amended April 23, 2020)	Electric	17		12		9.60	%	July 14, 2020	July 16, 2020
DPL - Delaware	February 21, 2020 (amended October 9, 2020)	Natural Gas	7		2		9.60	%	January 6, 2021	September 21, 2020

__________

(a)Pursuant to EIMA and FEJA, ComEd’s electric distribution rates are established through a performance-based formula, which sunsets at the end of 2022. The electric distribution formula rate includes decoupling provisions and, as a result, ComEd's electric distribution formula rate revenues are not impacted by abnormal weather, usage per customer, or number of customers. ComEd is required to file an annual update to its electric distribution formula rate on or before May 1st, with resulting rates effective in January of the following year. ComEd’s annual electric distribution formula rate update is based on prior year actual costs and current year projected capital additions (initial year revenue requirement). The update also reconciles any differences between the revenue requirement in effect for the prior year and actual costs incurred from the year (annual reconciliation).

ComEd’s 2020 approved revenue requirement above reflects an increase of $51 million for the initial year revenue requirement for 2020 and a decrease of $68 million related to the annual reconciliation for 2018. The revenue requirement for 2020 and the revenue requirement for 2018 provides for a weighted average debt and equity return on distribution rate

base of 6.51% inclusive of an allowed ROE of 8.91%, reflecting the monthly average yields for 30-year treasury bonds plus 580 basis points.

ComEd’s 2021 approved revenue requirement above reflects an increase of $50 million for the initial year revenue requirement for 2021 and a decrease of $64 million related to the annual reconciliation for 2019. The revenue requirement for 2021 and the revenue requirement for 2019 provide for a weighted average debt and equity return on distribution rate base of 6.28% inclusive of an allowed ROE of 8.38%, reflecting the monthly average yields for 30-year treasury bonds plus 580 basis points. See table below for ComEd's regulatory assets associated with its electric distribution formula rate.

(b) Reflects a three-year cumulative multi-year plan for 2021 through 2023. The MDPSC awarded BGE electric revenue requirement increases of $59 million, $39 million, and $42 million in 2021, 2022, and 2023, respectively, and natural gas revenue requirement increases of $53 million, $11 million, and $10 million in 2021, 2022, and 2023, respectively. However, the MDPSC utilized certain tax benefits to fully offset the increases in 2021 so that customer rates will remain unchanged from 2020 to 2021. The MDPSC has deferred a decision on whether to use certain tax benefits to offset the revenue requirement increases in 2022 and 2023 and BGE cannot predict the outcome.

Pending Distribution Base Rate Case Proceedings

Registrant/Jurisdiction

Filing Date

Service

Requested Revenue Requirement Increase

Requested ROE

Expected Approval Timing

PECO - Pennsylvania

September 30, 2020

Natural Gas

10.95

Second quarter of 2021

Pepco - District of Columbia(a)

May 30, 2019 (amended June 1, 2020)

Electric

136

9.7

Second quarter of 2021

Pepco - Maryland(b)

October 26, 2020

Electric

110

10.2

Second quarter of 2021

DPL - Delaware(c)

March 6, 2020 (amended February 2, 2021)

Electric

10.3

Third quarter of 2021

ACE - New Jersey(d)

December 9, 2020

Electric

10.3

Fourth quarter of 2021

_________

(a)Pepco filed the multi-year plan enhanced proposal as an alternative to address the impacts of COVID-19. Reflects a three-year cumulative multi-year plan for 2020 through 2022 and requested revenue requirement increases of $73 million in 2022 and $63 million in 2023, to recover capital investments made during 2018 through 2020 and planned capital investments through the end of 2022.

(b)Reflects a three-year cumulative multi-year plan for April 1, 2021 through March 31, 2024 and total requested revenue requirement increases of $56 million effective April 1, 2023 and $54 million effective April 1, 2024 to recover capital investments made in 2019 and 2020 and planned capital investments through March 31, 2024.

(c)The rates went into effect on October 6, 2020, subject to refund.

(d)Requested increases are before New Jersey sales and use tax. ACE intends to put rates into effect on September 8, 2021, subject to refund.

Public Utilities Transmission Rate Filings [Table Text Block]

For 2020, the following total increases/(decreases) were included in the Utility Registrants' electric transmission formula rate updates:


Registrant(a)	Initial Revenue Requirement Increase/(Decrease)		Annual Reconciliation Decrease		Total Revenue Requirement Increase/(Decrease)(b)		Allowed Return on Rate Base(c)		Allowed ROE(d)
ComEd	$	18	$	(4)	$	14	8.17	%	11.50	%
PECO	5		(28)		(23)		7.47	%	10.35	%
BGE	16		(3)		4		7.26	%	10.50	%
Pepco	2		(46)		(44)		7.81	%	10.50	%
DPL	(4)		(40)		(44)		7.20	%	10.50	%
ACE	5		(25)		(20)		7.40	%	10.50	%

__________

(a)All rates are effective June 30, 2020 - May 31, 2021, subject to review by interested parties pursuant to review protocols of each Utility Registrant's tariff.

(b)The decrease in PECO's transmission revenue requirement relates to refunds from December 1, 2017, in accordance with the settlement agreement dated July 22, 2019. The increase in BGE's transmission revenue requirement includes a $9 million reduction related to a FERC approved dedicated facilities charge to recover the costs of providing transmission service to specifically designated load by BGE. ComEd, BGE, Pepco, DPL, and ACE’s transmission revenue requirement include a decrease related to the April 24, 2020 settlement agreement related to excess deferred income taxes. Refer to Transmission-Related Income Tax Regulatory assets below for additional information.

(c)Represents the weighted average debt and equity return on transmission rate bases.

(d)As part of the FERC-approved settlement of ComEd’s 2007 and PECO's 2017 transmission rate cases, the rate of return on common equity is 11.50% and 10.35%, respectively inclusive of a 50-basis-point incentive adder for being a member of a RTO, and the common equity component of the ratio used to calculate the weighted average debt and equity return for the transmission formula rate is currently capped at 55% and 55.75%, respectively. As part of the FERC-approved settlement of the ROE complaint against BGE, Pepco, DPL, and ACE, the rate of return on common equity is 10.50%, inclusive of a 50-basis-point incentive adder for being a member of a RTO.

Public Utilities Energy Efficiency Revenue [Table Text Block]

During 2020, the ICC approved the following total increases in ComEd's requested energy efficiency revenue requirement:

Filing Date

Requested Revenue Requirement Increase

Approved Revenue Requirement Increase

Approved ROE

Approval Date

Rate Effective Date

May 21, 2020

(a)

8.38

December 2, 2020

January 1, 2021

_________

(a)ComEd’s 2021 approved revenue requirement above reflects an increase of $45 million for the initial year revenue requirement for 2021 and an increase of $3 million related to the annual reconciliation for 2019. The revenue requirement for 2021 provides for a weighted average debt and equity return on the energy efficiency regulatory asset and rate base of 6.28% inclusive of an allowed ROE of 8.38%, reflecting the monthly average yields for 30-year treasury bonds plus 580 basis points. The revenue requirement for 2019 provides for a weighted average debt and equity return on the energy efficiency regulatory asset and rate base of 6.56% inclusive of an allowed ROE of 8.96%, which includes an upward performance adjustment that can either increase or decrease the ROE. See table below for ComEd's regulatory assets associated with its energy efficiency formula rate.

Schedule of Regulatory Assets

The following tables provide information about the regulatory assets and liabilities of Exelon, ComEd, PECO, BGE, PHI, Pepco, DPL, and ACE as of December 31, 2020 and December 31, 2019:


December 31, 2020	Exelon		ComEd		PECO		BGE		PHI		Pepco		DPL		ACE
Regulatory assets
Pension and OPEB	$	3,010	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Pension and OPEB - merger related	1,014		—		—		—		—		—		—		—
Deferred income taxes	715		—		705		—		10		10		—		—
AMI programs - deployment costs	174		—		—		109		65		35		30		—
AMI programs - legacy meters	219		90		—		37		92		68		24		—

Electric distribution formula rate annual reconciliations	(14)		(14)		—		—		—		—		—		—
Electric distribution formula rate significant one-time events	117		117		—		—		—		—		—		—
Energy efficiency costs	982		982		—		—		—		—		—		—
Fair value of long-term debt	598		—		—		—		478		—		—		—
Fair value of PHI's unamortized energy contracts	328		—		—		—		328		—		—		—
Asset retirement obligations	135		92		21		18		4		3		—		1
MGP remediation costs	285		271		10		4		—		—		—		—
Renewable energy	301		301		—		—		—		—		—		—
Electric energy and natural gas costs	95		—		—		23		72		37		5		30
Transmission formula rate annual reconciliations	5		—		—		2		3		—		2		1
Energy efficiency and demand response programs	572		—		—		289		283		203		80		—

Under-recovered revenue decoupling	113		—		—		20		93		93		—		—
Stranded costs	25		—		—		—		25		—		—		25
Removal costs	701		—		—		107		594		151		105		339
DC PLUG charge	100		—		—		—		100		100		—		—
Deferred storm costs	50		—		—		—		50		5		4		41
COVID-19	81		22		38		10		11		7		4		—
Under-recovered credit loss expense	107		89		—		—		18		—		—		18
Other	274		78		27		30		147		72		26		15
Total regulatory assets	9,987		2,028		801		649		2,373		784		280		470
Less: current portion	1,228		279		25		168		440		214		58		75
Total noncurrent regulatory assets	$	8,759	$	1,749	$	776	$	481	$	1,933	$	570	$	222	$	395

Schedule of Regulatory Liabilities


December 31, 2020	Exelon		ComEd		PECO		BGE		PHI		Pepco		DPL		ACE
Regulatory liabilities
Deferred income taxes	$	4,502	$	2,205	$	—	$	1,001	$	1,296	$	621	$	404	$	271
Nuclear decommissioning	3,016		2,541		475		—		—		—		—		—
Removal costs	1,649		1,482		—		47		120		20		100		—
Electric energy and natural gas costs	175		34		97		6		38		24		10		4
Transmission formula rate annual reconciliations	52		2		12		—		38		23		9		6
Renewable portfolio standards costs	427		427		—		—		—		—		—		—
Stranded costs	24		—		—		—		24		—		—		24
Other	221		1		40		85		59		2		17		13
Total regulatory liabilities	10,066		6,692		624		1,139		1,575		690		540		318
Less: current portion	581		289		121		30		137		46		47		44
Total noncurrent regulatory liabilities	$	9,485	$	6,403	$	503	$	1,109	$	1,438	$	644	$	493	$	274

Public Utilities General Disclosures [Table Text Block]

The following table presents authorized amounts capitalized for ratemaking purposes related to earnings on shareholders’ investment that are not recognized for financial reporting purposes in Exelon's and the Utility Registrant's Consolidated Balance Sheets. These amounts will be recognized as revenues in the related Consolidated Statements of Operations and Comprehensive Income in the periods they are billable to our customers.


	Exelon		ComEd(a)		PECO		BGE(b)		PHI		Pepco(c)		DPL(c)		ACE
December 31, 2020	$	51	$	(1)	$	—	$	45	$	7	$	4	$	3	$	—
December 31, 2019	$	63	$	3	$	—	$	53	$	7	$	4	$	3	$	—

__________

(a)Reflects ComEd's unrecognized equity returns/(losses) earned/(incurred) for ratemaking purposes on its electric distribution formula rate regulatory assets.

(b)BGE's authorized amounts capitalized for ratemaking purposes primarily relate to earnings on shareholders' investment on its AMI programs.

(c)Pepco's and DPL's authorized amounts capitalized for ratemaking purposes relate to earnings on shareholders' investment on their respective AMI Programs and Energy Efficiency and Demand Response Programs. The earnings on energy efficiency are on Pepco DC and DPL DE programs only.

Regulatory assets 2019 [Member]

Public Utilities, General Disclosures [Line Items]

Schedule of Regulatory Assets


December 31, 2019	Exelon		ComEd		PECO		BGE		PHI		Pepco		DPL		ACE
Regulatory assets
Pension and OPEB	$	2,784	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Pension and OPEB - merger related	1,138		—		—		—		—		—		—		—
Deferred income taxes	528		—		518		—		10		10		—		—
AMI programs - deployment costs	207		—		—		129		78		43		35		—
AMI programs - legacy meters	276		113		12		45		106		79		27		—
Electric distribution formula rate annual reconciliations	34		34		—		—		—		—		—		—
Electric distribution formula rate significant one-time events	66		66		—		—		—		—		—		—
Energy efficiency costs	746		746		—		—		—		—		—		—
Fair value of long-term debt	650		—		—		—		523		—		—		—
Fair value of PHI's unamortized energy contracts	443		—		—		—		443		—		—		—
Asset retirement obligations	127		85		23		16		3		2		—		1
MGP remediation costs	302		287		11		4		—		—		—		—
Renewable energy	301		301		—		—		—		—		—		—
Electric energy and natural gas costs	110		—		6		36		68		43		5		20
Transmission formula rate annual reconciliations	11		—		—		1		10		1		2		7
Energy efficiency and demand response programs	572		—		—		303		269		196		73		—
Merger integration costs	32		—		—		2		30		15		8		7
Under-recovered revenue decoupling	37		—		—		8		29		29		—		—
Stranded costs	37		—		—		—		37		—		—		37
Removal costs	641		—		—		67		574		152		100		324
DC PLUG charge	126		—		—		—		126		126		—		—

Other	337		129		25		26		167		76		24		29
Total regulatory assets	9,505		1,761		595		637		2,473		772		274		425
Less: current portion	1,170		281		41		183		412		188		52		57
Total noncurrent regulatory assets	$	8,335	$	1,480	$	554	$	454	$	2,061	$	584	$	222	$	368

Regulatory liabilities 2019 [Member]

Public Utilities, General Disclosures [Line Items]

Schedule of Regulatory Liabilities


December 31, 2019	Exelon		ComEd		PECO		BGE		PHI		Pepco		DPL		ACE
Regulatory liabilities
Deferred income taxes	$	4,944	$	2,297	$	—	$	1,089	$	1,558	$	725	$	477	$	356
Nuclear decommissioning	3,102		2,622		480		—		—		—		—		—
Removal costs	1,621		1,435		—		58		128		20		108		—

Electric energy and natural gas costs	109		45		56		—		8		—		8		—
Transmission formula rate annual reconciliations	34		6		28		—		—		—		—		—

Other	582		337		37		81		83		9		18		26
Total regulatory liabilities	10,392		6,742		601		1,228		1,777		754		611		382
Less: current portion	406		200		91		33		70		8		37		25
Total noncurrent regulatory liabilities	$	9,986	$	6,542	$	510	$	1,195	$	1,707	$	746	$	574	$	357