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Regulatory Matters (Tables)
 12 Months Ended
Dec. 31, 2022
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 2022.
Completed Distribution Base Rate Case Proceedings
Registrant/JurisdictionFiling DateServiceRequested Revenue Requirement Increase Approved Revenue Requirement Increase Approved ROEApproval DateRate Effective Date
ComEd - Illinois(a)
April 16, 2021Electric$51 $46 7.36%December 1, 2021January 1, 2022
April 15, 2022Electric199 199 7.85%November 17, 2022January 1, 2023
PECO - PennsylvaniaMarch 30, 2021Electric246 132 
N/A(b)
November 18, 2021January 1, 2022
March 31, 2022Natural Gas82 55 October 27, 2022January 1, 2023
BGE - Maryland(c)
May 15, 2020 (amended September 11, 2020)Electric203 140 9.50%December 16, 2020January 1, 2021
Natural Gas108 74 9.65%
Pepco - District of Columbia(d)
May 30, 2019 (amended June 1, 2020)Electric136 109 9.275%June 8, 2021July 1, 2021
Pepco - Maryland(e)
October 26, 2020 (amended March 31, 2021)Electric104 52 9.55%June 28, 2021June 28, 2021
DPL - Maryland
September 1, 2021 (amended December 23, 2021)(f)
Electric27 13 9.60%March 2, 2022March 2, 2022
May 19, 2022(g)
Electric38 29 9.60%December 14, 2022January 1, 2023
DPL - DelawareJanuary 14, 2022 (amended August 15, 2022)Natural Gas13 8 9.60%October 12, 2022August 14, 2022
ACE - New Jersey(h)
December 9, 2020 (amended February 26, 2021)Electric67 41 9.60%July 14, 2021January 1, 2022
__________
(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. See discussion of CEJA below for details on the transition away from the electric distribution formula rate. 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. Under the performance-based formula, ComEd filed annual updates 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 2022 approved revenue requirement reflects an increase of $37 million for the initial year revenue requirement for 2022 and an increase of $9 million related to the annual reconciliation for 2020. The revenue requirement for 2022 provides for a weighted average debt and equity return on distribution rate base of 5.72% inclusive of an allowed ROE of 7.36%, reflecting the monthly average yields for 30-year treasury bonds plus 580 basis points. The reconciliation revenue requirement for 2020 provides for a weighted average debt and equity return on distribution rate base of 5.69%, inclusive of an allowed ROE of 7.29%, reflecting the monthly yields on 30-year treasury bonds plus 580 basis points less a performance metrics penalty of 7 basis points.

ComEd’s 2023 approved revenue requirement above reflects an increase of $144 million for the initial year revenue requirement for 2023 and an increase of $55 million related to the annual reconciliation for 2021. The revenue requirement for 2023 provides for a weighted average debt and equity return on distribution rate base of 5.94% inclusive of an allowed ROE of 7.85%, reflecting the monthly average yields for 30-year treasury bonds plus 580 basis points. The reconciliation revenue requirement for 2021 provides for a weighted average debt and equity return on distribution rate base of 5.91%, inclusive of an allowed ROE of 7.78%, reflecting the monthly yields on 30-year treasury bonds plus 580 basis points less a performance metrics penalty of 7 basis points. This is ComEd's last performance-based electric distribution formula rate update filing under EIMA. See discussion of CEJA below for details on the transition away from the electric distribution formula rate.
(b)The PECO electric and natural gas base rate case proceedings were resolved through settlement agreements, which did not specify an approved ROE.
(c)Reflects a three-year cumulative multi-year plan for 2021 through 2023. BGE proposed to use certain tax benefits to fully offset the increases in 2021 and 2022 and partially offset the increase in 2023. The MDPSC awarded BGE electric revenue requirement increases of $59 million, $39 million, and $42 million, before offsets, in 2021, 2022, and 2023, respectively, and natural gas revenue requirement increases of $53 million, $11 million, and $10 million, before offsets, in 2021, 2022, and 2023, respectively. However, the MDPSC utilized the tax benefits to fully offset the increases in 2021 and January 2022 such that customer rates remained unchanged. For the remainder of 2022, the MDPSC chose to offset only 25% of the cumulative 2021 and 2022 electric revenue requirement increases and 50% of the cumulative gas revenue requirement increases. In 2021, the MDPSC deferred a decision on whether to use certain tax benefits to offset the revenue requirement increases in 2023 and directed BGE to make another proposal at the end of 2022. In September 2022 BGE proposed that tax benefits not be used to offset the 2023 revenue requirement increases. On October 26, 2022, the MDPSC accepted BGE's recommendation to not use tax benefits to offset the 2023 revenue requirement increases.
(d)Reflects a cumulative multi-year plan with 18-months remaining in 2021 through 2022. The DCPSC awarded Pepco electric incremental revenue requirement increases of $42 million and $67 million, before offsets, for 2021 and 2022, respectively. However, the DCPSC utilized the acceleration of refunds for certain tax benefits along with other rate relief to partially offset the customer rate increases by $22 million and $40 million for 2021 and 2022, respectively.
(e)Reflects a three-year cumulative multi-year plan for April 1, 2021 through March 31, 2024. The MDPSC awarded Pepco electric incremental revenue requirement increases of $21 million, $16 million, and $15 million, before offsets, for the 12-month periods ending March 31, 2022, 2023, and 2024, respectively. Pepco proposed to utilize certain tax benefits to fully offset the increase through 2023 and partially offset customer rate increases in 2024. However, the MDPSC only utilized the acceleration of refunds for certain tax benefits to fully offset the increases such that customer rates remain unchanged through March 31, 2022. On February 23, 2022, the MDPSC chose to offset 25% of the cumulative revenue requirement increase through March 31, 2023. Whether certain tax benefits will be used to offset the customer rate increases for the twelve months ended March 31, 2024 has not been decided, and Pepco cannot predict the outcome.
(f)The approved settlement reflects a 9.60% ROE, which is solely for the purposes of calculating AFUDC and regulatory asset carrying costs.
(g)Reflects a three-year cumulative multi-year plan for January 1, 2023 through December 31, 2025. The MDPSC awarded DPL electric incremental revenue requirement increases of $17 million, $6 million, and $6 million for 2023, 2024, and 2025, respectively.
(h)Requested and approved increases are before New Jersey sales and use tax. The order allows ACE to retain approximately $11 million of certain tax benefits which resulted in a decrease to income tax expense in Exelon's, PHI's, and ACE's Consolidated Statements of Operations and Comprehensive Income in the third quarter of 2021.
Pending Distribution Base Rate Case Proceedings
Registrant/JurisdictionFiling DateServiceRequested Revenue Requirement IncreaseRequested ROEExpected Approval Timing
ComEd - Illinois(a)
January 17, 2023Electric$1,472 
10.50% to 10.65%
Fourth quarter of 2023
DPL - Delaware(b)
December 15, 2022Electric60 10.50%Second quarter of 2024
__________
(a)Reflects a four-year cumulative MRP for January 1, 2024 to December 31, 2027 and total requested revenue requirement increases of $877 million effective January 1, 2024, $175 million effective January 1, 2025, $217 million effective January 1, 2026, and $203 million effective January 1, 2027, based on forecasted revenue requirements. The revenue requirement will provide for a weighted average debt and equity return on distribution rate base of 7.43% in 2024, 7.50% in 2025, 7.62% in 2026, and 7.70% in 2027, inclusive of an allowed ROE of 10.50% in 2024, 10.55% in 2025, 10.60% in 2026, and 10.65% in 2027. The requested revenue requirements are based on capital structures that reflect between 50.58% and 51.19% common equity. ComEd’s MRP also includes a proposed rate phase-in to defer approximately $307 million of the $877 million year-over-year increase for 2024 revenue from 2024 to 2026.
(b)The rates will go into effect on July 15, 2023, subject to refund.
Public Utilities Transmission Rate Filings [Table Text Block]
For 2022, the following total increases/(decreases) were included in the Utility Registrants' electric transmission formula rate updates:
Registrant(a)
Initial Revenue Requirement IncreaseAnnual Reconciliation (Decrease) IncreaseTotal Revenue Requirement Increase
Allowed Return on Rate Base(b)
Allowed ROE(c)
ComEd$24 $(24)$— 8.11 %11.50 %
PECO23 16 39 7.30 %10.35 %
BGE25 (4)16 (d)7.30 %10.50 %
Pepco16 15 31 7.60 %10.50 %
DPL9 2 11 7.09 %10.50 %
ACE21 13 34 7.18 %10.50 %
__________
(a)All rates are effective June 1, 2022 - May 31, 2023, subject to review by interested parties pursuant to review protocols of each Utility Registrants' tariff.
(b)Represents the weighted average debt and equity return on transmission rate bases. For ComEd and PECO, the common equity component of the ratio used to calculate the weighted average debt and equity return on the transmission formula rate base is currently capped at 55% and 55.75%, respectively.
(c)The rate of return on common equity for each Utility Registrant includes a 50-basis-point incentive adder for being a member of a RTO.
(d)The increase in BGE's transmission revenue requirement includes a $5 million reduction related to a FERC-approved dedicated facilities charge to recover the costs of providing transmission service to specifically designated load by BGE.
Public Utilities Energy Efficiency Revenue [Table Text Block]
During 2022, the ICC approved the following total increases in ComEd's requested energy efficiency revenue requirement:
Filing DateRequested Revenue Requirement Increase
Approved Revenue Requirement Increase(a)
Approved ROEApproval DateRate Effective Date
May 25, 2022$50 $50 7.85 %October 27, 2022January 1, 2023
_________
(a)ComEd’s 2023 approved revenue requirement above reflects an increase of $66 million for the initial year revenue requirement for 2023 and a decrease of $16 million related to the annual reconciliation for 2021. The revenue requirement for 2023 provides for a weighted average debt and equity return on the energy efficiency regulatory asset and rate base of 5.94% inclusive of an allowed ROE of 7.85%, reflecting the monthly average yields for 30-year treasury bonds plus 580 basis points. The revenue requirement for the 2021 reconciliation year provides for a weighted average debt and equity return on the energy efficiency regulatory asset and rate base of 5.52% inclusive of an allowed ROE of 6.99%, which includes a downward performance adjustment that decreased the ROE. The performance adjustment can either increase or decrease the ROE based upon the achievement of energy efficiency savings goals. See table below for ComEd's regulatory assets associated with its energy efficiency formula rate.
Capitalized Ratemaking Amounts Not Recognized [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 the Registrants' 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 the Utility Registrants' customers.
Exelon
ComEd(a)
PECO
BGE(b)
PHI
Pepco(c)
DPL(c)
ACE(b)
December 31, 2022$57 $8 $— $28 $21 $18 $2 $1 
December 31, 202143 1 — 37 5 3 2 — 
__________
(a)Reflects ComEd's unrecognized equity returns earned for ratemaking purposes on its electric distribution formula rate regulatory assets.
(b)BGE's and ACE's authorized amounts capitalized for ratemaking purposes primarily relate to earnings on shareholders' investment on their respective 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, and for Pepco District of Columbia revenue decoupling program. The earnings on energy efficiency are on Pepco District of Columbia and DPL Delaware programs only.
Regulatory assets 2022 [Member]  
Public Utilities, General Disclosures [Line Items]  
Schedule of Regulatory Assets
The following tables provide information about the regulatory assets and liabilities of the Registrants as of December 31, 2022 and 2021:
December 31, 2022ExelonComEdPECOBGEPHIPepcoDPLACE
Regulatory assets
Pension and OPEB$1,867 $— $— $— $— $— $— $— 
Pension and OPEB - merger related769 — — — — — — — 
Deferred income taxes606 — 595 — 11 11 — — 
AMI programs - deployment costs122 — — 69 53 25 22 6 
AMI programs - legacy meters160 48 — 20 92 53 17 22 
Electric distribution formula rate annual reconciliations271 271 — — — — — — 
Electric distribution formula rate significant one-time events115 115 — — — — — — 
Energy efficiency costs1,434 1,434 — — — — — — 
Fair value of long-term debt521 — — — 414 — — — 
Fair value of PHI's unamortized energy contracts44 — — — 44 — — — 
Carbon mitigation credit843 843 — — — — — — 
Asset retirement obligations151 99 22 21 9 6 2 1 
MGP remediation costs318 293 13 12 — — — — 
Renewable energy85 85 — — — — — — 
Electric energy and natural gas costs241 — 15 25 201 41 26 134 
Transmission formula rate annual reconciliations37 — 16 — 21 3 5 13 
Energy efficiency and demand response programs560 — — 286 274 187 74 13 
Under-recovered revenue decoupling106 — — 8 98 98 — — 
Removal costs782 — — 171 611 144 109 359 
DC PLUG charge37 — — — 37 37 — — 
Deferred storm costs90 — — 55 35 2 2 31 
COVID-1958 20 17 8 13 10 3 — 
Under-recovered credit loss expense71 38 — — 33 — — 33 
Other390 196 54 29 119 55 22 12 
Total regulatory assets9,678 3,442 732 704 2,065 672 282 624 
        Less: current portion1,641 775 80 177 455 235 80 130 
Total noncurrent regulatory assets$8,037 $2,667 $652 $527 $1,610 $437 $202 $494 
Regulatory liabilities 2022 [Member]  
Public Utilities, General Disclosures [Line Items]  
Schedule of Regulatory Liabilities
December 31, 2022ExelonComEdPECOBGEPHIPepcoDPLACE
Regulatory liabilities
Deferred income taxes$3,546 $2,010 $— $682 $854 $402 $304 $148 
Decommissioning the Regulatory Agreement Units2,897 2,660 237 — — — — — 
Removal costs1,750 1,604 — 35 111 20 91 — 
Electric energy and natural gas costs87 11 65 4 7 — 7 — 
Transmission formula rate annual reconciliations31 3 — 18 10 9 1 — 
Renewable portfolio standards costs810 810 — — — — — — 
Stranded costs9 — — — 9 — — 9 
Energy efficiency and demand response programs15 — 15 — — — — — 
Over-recovered revenue decoupling19 — — 4 15 — 6 9 
Dedicated facilities charge110 — — 110 — — — — 
Other275 41 28 10 81 30 15 16 
Total regulatory liabilities9,549 7,139 345 863 1,087 461 424 182 
        Less: current portion437 226 75 47 76 6 44 26 
Total noncurrent regulatory liabilities$9,112 $6,913 $270 $816 $1,011 $455 $380 $156 
Regulatory assets 2021 [Member]  
Public Utilities, General Disclosures [Line Items]  
Schedule of Regulatory Assets
December 31, 2021ExelonComEdPECOBGEPHIPepcoDPLACE
Regulatory assets
Pension and OPEB$2,409 $— $— $— $— $— $— $— 
Pension and OPEB - merger related893 — — — — — — — 
Deferred income taxes883 — 873 — 10 10 — — 
AMI programs - deployment costs145 — — 89 56 30 26 — 
AMI programs - legacy meters186 69 — 29 88 60 21 7 
Electric distribution formula rate annual reconciliations44 44 — — — — — — 
Electric distribution formula rate significant one-time events104 104 — — — — — — 
Energy efficiency costs1,181 1,181 — — — — — — 
Fair value of long-term debt557 — — — 443 — — — 
Fair value of PHI's unamortized energy contracts236 — — — 236 — — — 
Asset retirement obligations145 99 21 19 6 5 — 1 
MGP remediation costs283 266 8 9 — — — — 
Renewable energy219 219 — — — — — — 
Electric energy and natural gas costs96 — — 49 47 29 13 5 
Transmission formula rate annual reconciliations43 — 14 1 28 — 8 20 
Energy efficiency and demand response programs564 — — 283 281 199 79 3 
Under-recovered revenue decoupling157 — — 32 125 125 — — 
Removal costs758 — — 143 615 147 109 360 
DC PLUG charge70 — — — 70 70 — — 
Deferred storm costs49 — — — 49 3 3 43 
COVID-1982 28 33 8 13 10 3 — 
Under-recovered credit loss expense 89 60 — — 29 — — 29 
Other327 135 42 30 130 57 18 23 
Total regulatory assets9,520 2,205 991 692 2,226 745 280 491 
        Less: current portion1,296 335 48 215 432 213 68 61 
Total noncurrent regulatory assets$8,224 $1,870 $943 $477 $1,794 $532 $212 $430 
Regulatory liabilities 2021 [Member]  
Public Utilities, General Disclosures [Line Items]  
Schedule of Regulatory Liabilities
December 31, 2021ExelonComEdPECOBGEPHIPepcoDPLACE
Regulatory liabilities
Deferred income taxes$4,005 $2,105 $— $819 $1,081 $525 $354 $202 
Decommissioning the Regulatory Agreement Units3,357 2,760 597 — — — — — 
Removal costs1,694 1,541 — 39 114 20 94 — 
Electric energy and natural gas costs113 25 71 — 17 9 3 5 
Transmission formula rate annual reconciliations8 7 — — 1 1 — — 
Renewable portfolio standards costs500 500 — — — — — — 
Stranded costs35 — — — 35 — — 24 
Other292 6 61 102 58 8 15 11 
Total regulatory liabilities10,004 6,944 729 960 1,306 563 466 242 
        Less: current portion376 185 94 26 68 14 25 28 
Total noncurrent regulatory liabilities$9,628 $6,759 $635 $934 $1,238 $549 $441 $214