Property, Plant and Equipment (All Registrants)

Exelon

The following table presents a summary of property, plant and equipment by asset category as of December 31, 2016 and 2015:



	Average Service Life (years)	2016		2015
Asset Category
Electric—transmission and distribution	5-90	$	45,698	$	32,546
Electric—generation	3-56	27,193		25,615
Gas—transportation and distribution	5-90	4,642		3,864
Common—electric and gas	4-50	1,312		1,149
Nuclear fuel ^(a)	1-8	6,546		6,384
Construction work in progress	N/A	4,306		3,075
Other property, plant and equipment ^(b)	3-50	1,027		1,181
Total property, plant and equipment		90,724		73,814
Less: accumulated depreciation ^(c)		19,169		16,375
Property, plant and equipment, net		$	71,555	$	57,439

_________________________


(a)	Includes nuclear fuel that is in the fabrication and installation phase of $1,326 million and $1,266 million at December 31, 2016 and 2015, respectively.

(b)

Includes Generation’s buildings under capital lease with a net carrying value of $10 million and $13 million at December 31, 2016 and 2015, respectively. The original cost basis of the buildings was $52 million, and total accumulated amortization was $42 million and $39 million, as of December 31, 2016 and 2015, respectively. Also includes ComEd’s buildings under capital lease with a net carrying value at both December 31, 2016 and 2015, of $7 million. The original cost basis of the buildings was $8 million and total accumulated amortization was $1 million as of both December 31, 2016 and 2015. Includes land held for future use and non utility property at ComEd, PECO, BGE, Pepco, DPL, and ACE of $60 million, $21 million, $32 million, $66 million, $16 million, and $27 million, respectively, at December 31, 2016. At December 31, 2015 these balances also include capitalized acquisition, development and exploration costs of $266 million related to oil and gas production activities at Generation, see Note 4—Mergers, Acquisitions, and Dispositions for additional information regarding the sale of upstream assets. Includes the original cost and progress payments associated with Generation’s turbine equipment held for future use with a carrying value of $17 million and $146 million at December 31, 2016 and 2015, respectively. See Note 8 —Impairment of Long-Lived Assets for additional information on the impairment of Generations turbine equipment.


(c)	Includes accumulated amortization of nuclear fuel in the reactor core at Generation of $3,186 million and $2,861 million as of December 31, 2016 and 2015, respectively.

The following table presents the annual depreciation provisions as a percentage of average service life for each asset category.



Average Service Life Percentage by Asset Category	2016			2015		2014
Electric—transmission and distribution	2.73	%		2.83	%	2.93	%
Electric—generation	5.94	%	^(a)	3.47	%	3.50	%
Gas	2.17	%		2.17	%	2.13	%
Common—electric and gas	7.41	%		7.79	%	7.32	%

_________________________


(a)	See Note 9—Early Nuclear Plant Retirements for additional information on the accelerated net depreciation and amortization of Clinton and Quad Cities.

Generation

The following table presents a summary of property, plant and equipment by asset category as of December 31, 2016 and 2015:



	Average Service Life (years)	2016		2015
Asset Category
Electric—generation	3-56	$	27,193	$	25,615
Nuclear fuel ^(a)	1-8	6,546		6,384
Construction work in progress	N/A	2,332		2,017
Other property, plant and equipment ^(b)	4	76		466
Total property, plant and equipment		36,147		34,482
Less: accumulated depreciation ^(c)		10,562		8,639
Property, plant and equipment, net		$	25,585	$	25,843

_________________________


(a)	Includes nuclear fuel that is in the fabrication and installation phase of $1,326 million and $1,266 million at December 31, 2016 and 2015, respectively.

(b)

Includes buildings under capital lease with a net carrying value of $10 million and $13 million at December 31, 2016 and 2015, respectively. The original cost basis of the buildings was $52 million, and total accumulated amortization was $42 million and $39 million, as of December 31, 2016 and 2015, respectively. At December 31, 2015 these balances also include capitalized acquisition, development and exploration costs of $266 million related to oil and gas production activities at Generation, see Note 4—Mergers, Acquisitions, and Dispositions for additional information regarding the sale of upstream assets. Includes the original cost and progress payments associated with Generation’s turbine equipment held for future use with a carrying value of $17 million and $146 million at December 31, 2016 and 2015, respectively. See Note 8 —Impairment of Long-Lived Assets for additional information on the impairment of Generations turbine equipment.


(c)	Includes accumulated amortization of nuclear fuel in the reactor core of $3,186 million and $2,861 million as of December 31, 2016 and 2015, respectively.

The annual depreciation provisions as a percentage of average service life for electric generation assets were 5.94%, 3.47% and 3.50% for the years ended December 31, 2016, 2015 and 2014, respectively. See Note 9—Early Nuclear Plant Retirements for additional information on the accelerated net depreciation and amortization of Clinton and Quad Cities.

License Renewals. Generation’s depreciation provisions are based on the estimated useful lives of its generating stations, which assume the renewal of the licenses for all nuclear generating stations (except for Oyster Creek and Clinton) and the hydroelectric generating stations. As a result, the receipt of license renewals has no material impact on the Consolidated Statements of Operations and Comprehensive Income. Oyster Creek depreciation provisions are based on the 2019 expected shutdown date. Clinton depreciation provisions are based on 2027 which is the last year of the Illinois ZECs. See Note 3 - Regulatory Matters for additional information regarding license renewals and the Illinois ZECs. See Note 9 - Early Nuclear Plant Retirements for additional information on the impacts of expected and potential early plant retirement.

ComEd

The following table presents a summary of property, plant and equipment by asset category as of December 31, 2016 and 2015:



	Average Service Life (years)	2016		2015
Asset Category
Electric—transmission and distribution	5-80	$	22,636	$	20,576
Construction work in progress	N/A	569		572
Other property, plant and equipment ^{(a), (b)}	37-50	67		64
Total property, plant and equipment		23,272		21,212
Less: accumulated depreciation		3,937		3,710
Property, plant and equipment, net		$	19,335	$	17,502

_________________________


(a)	Includes buildings under capital lease with a net carrying value at both December 31, 2016 and 2015 of $7 million. The original cost basis of the buildings was $8 million and total accumulated amortization was $1 million as of both December 31, 2016 and 2015.


(b)	Includes land held for future use and non-utility property.

The annual depreciation provisions as a percentage of average service life for electric transmission and distribution assets were 3.03%, 3.03% and 3.05% for the years ended December 31, 2016, 2015 and 2014, respectively.

PECO

The following table presents a summary of property, plant and equipment by asset category as of December 31, 2016 and 2015:



	Average Service Life (years)	2016		2015
Asset Category
Electric—transmission and distribution	5-65	$	7,591	$	7,230
Gas—transportation and distribution	5-70	2,348		2,206
Common—electric and gas	5-50	670		631
Construction work in progress	N/A	188		154
Other property, plant and equipment ^(a)	50	21		21
Total property, plant and equipment		10,818		10,242
Less: accumulated depreciation		3,253		3,101
Property, plant and equipment, net		$	7,565	$	7,141

_________________________


(a)	Represents land held for future use and non-utility property.

The following table presents the annual depreciation provisions as a percentage of average service life for each asset category.



Average Service Life Percentage by Asset Category	2016		2015		2014
Electric—transmission and distribution	2.32	%	2.39	%	2.55	%
Gas	1.82	%	1.87	%	1.84	%
Common—electric and gas	5.11	%	5.16	%	5.16	%

BGE

The following table presents a summary of property, plant and equipment by asset category as of December 31, 2016 and 2015:



	Average Service Life (years)	2016		2015
Asset Category
Electric—transmission and distribution	5-90	$	7,067	$	6,663
Gas—distribution	5-90	2,170		1,951
Common—electric and gas	5-40	707		655
Construction work in progress	N/A	318		312
Other property, plant and equipment ^(a)	20	32		32
Total property, plant and equipment		10,294		9,613
Less: accumulated depreciation		3,254		3,016
Property, plant and equipment, net		$	7,040	$	6,597

_______________________


(a)	Represents land held for future use and non-utility property.

The following table presents the annual depreciation provisions as a percentage of average service life for each asset category.



Average Service Life Percentage by Asset Category	2016		2015		2014
Electric—transmission and distribution	2.56	%	2.62	%	2.96	%
Gas	2.45	%	2.50	%	2.47	%
Common—electric and gas	9.45	%	10.35	%	9.49	%

PHI

The following table presents a summary of property, plant and equipment by asset category as of December 31, 2016 and 2015:



		Successor			Predecessor
	Average Service Life (years)	2016			2015
Asset Category
Electric—transmission and distribution	5-86	$	10,315		$	14,563
Gas—distribution	5-75	414			547
Common—electric and gas	4-40	65			164
Construction work in progress	N/A	892			591
Other property, plant and equipment ^(a)	3-43	107			339
Total property, plant and equipment		11,793			16,204
Less: accumulated depreciation		195		—	5,340
Property, plant and equipment, net		$	11,598		$	10,864

_______________________


(a)	Represents plant held for future use and non-utility property. Utility plant is generally subject to a first mortgage lien.

The following table presents the annual depreciation provisions as a percentage of average service life for each asset category.




Average Service Life Percentage by Asset Category	2016		2015		2014
Electric—transmission and distribution	2.52	%	2.48	%	2.42	%
Gas	2.57	%	2.55	%	2.48	%
Common—electric and gas	8.12	%	5.19	%	4.55	%

Pepco

The following table presents a summary of property, plant and equipment by asset category as of December 31, 2016 and 2015:



	Average Service Life (years)	2016			2015
Asset Category
Electric—transmission and distribution	5-86	$	8,018		$	7,682
Construction work in progress	N/A	537			318
Other property, plant and equipment^(a)	10-33	66			91
Total property, plant and equipment		8,621			8,091
Less: accumulated depreciation		3,050		—	2,929
Property, plant and equipment, net		$	5,571		$	5,162

_______________________


(a)	Represents plant held for future use and non-utility property. Utility plant is generally subject to a first mortgage lien.

The annual depreciation provisions as a percentage of average service life for electric transmission and distribution assets were 2.17%, 2.13% and 2.10% for the years ended December 31, 2016, 2015 and 2014, respectively.

DPL

The following table presents a summary of property, plant and equipment by asset category as of December 31, 2016 and 2015:



	Average Service life	2016			2015
Asset Category
Electric—transmission and distribution	5-68	$	3,574		$	3,431
Gas—distribution	5-75	580			547
Common—electric and gas	4-40	115			108
Construction work in progress	N/A	163			107
Other property, plant and equipment ^(a)	10-43	16			16
Total property, plant and equipment		4,448			4,209
Less: accumulated depreciation		1,175		—	1,139
Property, plant and equipment, net		$	3,273		$	3,070

_______________________


(a)	Represents plant held for future use and non-utility property. Utility plant is generally subject to a first mortgage lien.

The following table presents the annual depreciation provisions as a percentage of average service life for each asset category.



Average Service Life Percentage by Asset Category	2016		2015		2014
Electric—transmission and distribution	2.49	%	2.44	%	2.41	%
Gas	2.57	%	2.55	%	2.48	%
Common—electric and gas	4.99	%	4.24	%	4.08	%

ACE

The following table presents a summary of property, plant and equipment by asset category as of December 31, 2016 and 2015:



	Average Service Life (years)	2016			2015
Asset Category
Electric—transmission and distribution	5-55	$	3,341		$	3,105
Construction work in progress	N/A	169			158
Other property, plant and equipment ^(a)	13-15	27			28
Total property, plant and equipment		3,537			3,291
Less: accumulated depreciation		1,016		—	969
Property, plant and equipment, net		$	2,521		$	2,322

_______________________


(a)	Represents plant held for future use and non-utility property. Utility plant is generally subject to a first mortgage lien.

The annual depreciation provisions as a percentage of average service life for electric transmission and distribution assets were 2.45%, 2.46% and 2.48% for the years ended December 31, 2016, 2015 and 2014, respectively.

See Note 1—Significant Accounting Policies for further information regarding property, plant and equipment policies and accounting for capitalized software costs for the Registrants. See Note 14—Debt and Credit Agreements for further information regarding Exelon’s, ComEd’s, and PECO’s property, plant and equipment subject to mortgage liens.