Supplemental Financial Information (All Registrants)

Supplemental Statement of Operations Information

The following tables provide additional information about the Registrants’ Consolidated Statements of Operations and Comprehensive Income for the three and nine months ended September 30, 2017 and 2016.



	Three Months Ended September 30, 2017
													Successor
	Exelon			Generation			ComEd		PECO		BGE		PHI		Pepco		DPL		ACE
Other, Net
Decommissioning-related activities:
Net realized income on decommissioning trust funds^(a)
Regulatory agreement units	$	159		$	159		$	—	$	—	$	—	$	—	$	—	$	—	$	—
Non-regulatory agreement units	59			59			—		—		—		—		—		—		—
Net unrealized gains on decommissioning trust funds
Regulatory agreement units	44			44			—		—		—		—		—		—		—
Non-regulatory agreement units	111			111			—		—		—		—		—		—		—
Net unrealized losses on pledged assets
Zion Station decommissioning	(4		)	(4		)	—		—		—		—		—		—		—
Regulatory offset to decommissioning trust fund-related activities^(b)	(161		)	(161		)	—		—		—		—		—		—		—
Total decommissioning-related activities	208			208			—		—		—		—		—		—		—
Investment income	2			1			—		—		—		1		1		—		—
Interest income related to uncertain income tax positions	4			—			—		—		—		—		—		—		—
AFUDC — Equity	17			—			2		2		4		9		6		2		1
Other	6			—			3		—		—		3		—		2		—
Other, net	$	237		$	209		$	5	$	2	$	4	$	13	$	7	$	4	$	1



	Nine Months Ended September 30, 2017
													Successor
	Exelon			Generation			ComEd		PECO		BGE		PHI		Pepco		DPL		ACE
Other, Net
Decommissioning-related activities:
Net realized income on decommissioning trust funds^(a)
Regulatory agreement units	$	439		$	439		$	—	$	—	$	—	$	—	$	—	$	—	$	—
Non-regulatory agreement units	165			165			—		—		—		—		—		—		—
Net unrealized gains on decommissioning trust funds
Regulatory agreement units	253			253			—		—		—		—		—		—		—
Non-regulatory agreement units	347			347			—		—		—		—		—		—		—
Net unrealized losses on pledged assets
Zion Station decommissioning	(5		)	(5		)	—		—		—		—		—		—		—
Regulatory offset to decommissioning trust fund-related activities^(b)	(558		)	(558		)	—		—		—		—		—		—		—
Total decommissioning-related activities	641			641			—		—		—		—		—		—		—
Investment income	6			4			—		—		—		2		1		—		—
Interest income related to uncertain income tax positions	3			—			—		—		—		—		—		—		—
Benefit related to uncertain income tax positions^(c)	2			—			—		—		—		—		—		—		—
AFUDC — Equity	51			—			6		6		12		27		17		5		5
Other	22			3			8		—		—		11		4		5		1
Other, net	$	725		$	648		$	14	$	6	$	12	$	40	$	22	$	10	$	6



	Three Months Ended September 30, 2016
															Successor
	Exelon			Generation			ComEd			PECO			BGE		PHI		Pepco		DPL		ACE
Other, Net
Decommissioning-related activities:
Net realized income on decommissioning trust funds^(a)
Regulatory agreement units	$	57		$	57		$	—		$	—		$	—	$	—	$	—	$	—	$	—
Non-regulatory agreement units	35			35			—			—			—		—		—		—		—
Net unrealized gains on decommissioning trust funds
Regulatory agreement units	155			155			—			—			—		—		—		—		—
Non-regulatory agreement units	116			116			—			—			—		—		—		—		—
Net unrealized losses on pledged assets
Zion Station decommissioning	(5		)	(5		)	—			—			—		—		—		—		—
Regulatory offset to decommissioning trust fund-related activities^(b)	(168		)	(168		)	—			—			—		—		—		—		—
Total decommissioning-related activities	190			190			—			—			—		—		—		—		—
Investment income (expense)	2			1			—			(1		)	—		—		—		—		—
Interest income related to uncertain income tax positions	8			—			—			—			—		—		—		—		—
Penalty related to uncertain income tax positions^(c)	(106		)	—			(86		)	—			—		—		—		—		—
AFUDC — Equity	19			—			5			2			5		7		5		1		1
Other	7			(6		)	1			1			—		12		7		2		1
Other, net	$	120		$	185		$	(80	)	$	2		$	5	$	19	$	12	$	3	$	2



																					Successor		Predecessor
	Nine Months Ended September 30, 2016																				March 24, 2016 to September 30, 2016		January 1, 2016 to March 23, 2016
	Exelon			Generation			ComEd			PECO			BGE		Pepco		DPL		ACE		PHI		PHI
Other, Net
Decommissioning-related activities:
Net realized income on decommissioning trust funds^(a)
Regulatory agreement units	$	181		$	181		$	—		$	—		$	—	$	—	$	—	$	—	$	—	$	—
Non-regulatory agreement units	95			95			—			—			—		—		—		—		—		—
Net unrealized gains on decommissioning trust funds
Regulatory agreement units	286			286			—			—			—		—		—		—		—		—
Non-regulatory agreement units	216			216			—			—			—		—		—		—		—		—
Net unrealized losses on pledged assets
Zion Station decommissioning	(2		)	(2		)	—			—			—		—		—		—		—		—
Regulatory offset to decommissioning trust fund-related activities^(b)	(380		)	(380		)	—			—			—		—		—		—		—		—
Total decommissioning-related activities	396			396			—			—			—		—		—		—		—		—
Investment income (expense)	14			6			—			(1		)	2		—		—		—		1		—
Long-term lease income	4			—			—			—			—		—		—		—		—		—
Interest income related to uncertain income tax positions	13			—			—			—			—		1		—		1		—		—
Penalty related to uncertain income tax positions^(c)	(106		)	—			(86		)	—			—		—		—		—		—		—
AFUDC — Equity	43			—			8			6			14		14		3		5		15		7
Loss on debt extinguishment	(3		)	(2		)	—			—			—		—		—		—		—		—
Other	16			(5		)	6			1			—		13		6		2		15		(11		)
Other, net	$	377		$	395		$	(72	)	$	6		$	16	$	28	$	9	$	8	$	31	$	(4	)

_________


(a)	Includes investment income and realized gains and losses on sales of investments of the trust funds.


(b)	Includes the elimination of NDT fund activity for the Regulatory Agreement Units, including the elimination of net income taxes related to all NDT fund activity for those units. See Note 16 — Asset Retirement Obligations of the Exelon 2016 Form 10-K for additional information regarding the accounting for nuclear decommissioning.


(c)	See Note 12 - Income Taxes for discussion of the penalty related to the Tax Court's decision on Exelon's like-kind exchange tax position.

The following utility taxes are included in revenues and expenses for the three and nine months ended September 30, 2017 and 2016. Generation’s utility tax expense represents gross receipts tax related to its retail operations, and the utility registrants' utility tax expense represents municipal and state utility taxes and gross receipts taxes related to their operating revenues. The offsetting collection of utility taxes from customers is recorded in revenues on the Registrants’ Consolidated Statements of Operations and Comprehensive Income.



	Three Months Ended September 30, 2017
											Successor
	Exelon		Generation		ComEd		PECO		BGE		PHI		Pepco		DPL		ACE
Utility taxes	$	245	$	35	$	65	$	35	$	22	$	88	$	83	$	5	$	—



	Nine Months Ended September 30, 2017
											Successor
	Exelon		Generation		ComEd		PECO		BGE		PHI		Pepco		DPL		ACE
Utility taxes	$	682	$	97	$	181	$	95	$	69	$	240	$	226	$	14	$	—



	Three Months Ended September 30, 2016
											Successor
	Exelon		Generation		ComEd		PECO		BGE		PHI		Pepco		DPL		ACE
Utility taxes	$	255	$	35	$	67	$	40	$	21	$	92	$	87	$	5	$	—



																	Successor		Predecessor
	Nine Months Ended September 30, 2016																March 24, 2016 to September 30, 2016		January 1, 2016 to March 23, 2016
	Exelon		Generation		ComEd		PECO		BGE		Pepco		DPL		ACE		PHI		PHI
Utility taxes	$	624	$	90	$	186	$	106	$	66	$	240	$	14	$	—	$	176	$	78

Supplemental Cash Flow Information

The following tables provide additional information regarding the Registrants’ Consolidated Statements of Cash Flows for the nine months ended September 30, 2017 and 2016.



	Nine Months Ended September 30, 2017
											Successor
	Exelon		Generation		ComEd		PECO		BGE		PHI		Pepco		DPL		ACE
Depreciation, amortization and accretion
Property, plant and equipment^(a)	$	2,416	$	1,010	$	579	$	194	$	233	$	342	$	153	$	92	$	66
Amortization of regulatory assets^(a)	355		—		52		19		115		169		89		32		47
Amortization of intangible assets, net^(a)	43		36		—		—		—		—		—		—		—
Amortization of energy contract assets and liabilities^(b)	19		19		—		—		—		—		—		—		—
Nuclear fuel^(c)	816		816		—		—		—		—		—		—		—
ARO accretion^(d)	350		350		—		—		—		—		—		—		—
Total depreciation, amortization and accretion	$	3,999	$	2,231	$	631	$	213	$	348	$	511	$	242	$	124	$	113



																			Successor		Predecessor
	Nine Months Ended September 30, 2016																		March 24, 2016 to September 30, 2016		January 1, 2016 to March 23, 2016
	Exelon			Generation			ComEd		PECO		BGE		Pepco		DPL		ACE		PHI		PHI
Depreciation, amortization and accretion
Property, plant and equipment^(a)	$	2,490		$	1,297		$	524	$	181	$	223	$	128	$	82	$	61	$	215	$	94
Amortization of regulatory assets^(a)	293			—			49		20		84		93		38		69		140		58
Amortization of intangible assets, net^(a)	38			32			—		—		—		—		—		—		—		—
Amortization of energy contract assets and liabilities^(b)	(7		)	(7		)	—		—		—		—		—		—		—		—
Nuclear fuel^(c)	862			862			—		—		—		—		—		—		—		—
ARO accretion^(d)	333			332			1		—		—		—		—		—		—		—
Total depreciation, amortization and accretion	$	4,009		$	2,516		$	574	$	201	$	307	$	221	$	120	$	130	$	355	$	152

_________


(a)	Included in Depreciation and amortization on the Registrants' Consolidated Statements of Operations and Comprehensive Income.


(b)	Included in Operating revenues or Purchased power and fuel expense on the Registrants’ Consolidated Statements of Operations and Comprehensive Income.


(c)	Included in Purchased power and fuel expense on the Registrants’ Consolidated Statements of Operations and Comprehensive Income.


(d)	Included in Operating and maintenance expense on the Registrants’ Consolidated Statements of Operations and Comprehensive Income.



	Nine Months Ended September 30, 2017
																Successor
	Exelon			Generation			ComEd			PECO			BGE			PHI			Pepco			DPL			ACE
Other non-cash operating activities:
Pension and non-pension postretirement benefit costs	$	482		$	170		$	131		$	21		$	47		$	72		$	19		$	10		$	10
Loss from equity method investments	26			26			—			—			—			—			—			—			—
Provision for uncollectible accounts	103			31			25			17			4			26			11			1			14
Stock-based compensation costs	76			—			—			—			—			—			—			—			—
Other decommissioning-related activity^(a)	(213		)	(213		)	—			—			—			—			—			—			—
Energy-related options^(b)	15			15			—			—			—			—			—			—			—
Amortization of regulatory asset related to debt costs	7			—			3			1			—			3			1			1			1
Amortization of rate stabilization deferral	(7		)	—			—			—			7			(14		)	(12		)	(2		)	—
Amortization of debt fair value adjustment	(13		)	(9		)	—			—			—			(4		)	—			—			—
Discrete impacts from EIMA and FEJA^(c)	(61		)	—			(61		)	—			—			—			—			—			—
Amortization of debt costs	57			33			3			1			1			1			1			—			—
Provision for excess and obsolete inventory	52			50			1			—			—			1			—			1			—
Merger-related commitments^(d)	—			—			—			—			—			(8		)	(6		)	(2		)	—
Severance costs	33			25			—			—			—			3			—			—			—
Other	46			4			10			(2		)	(7		)	(14		)	(6		)	(3		)	(4		)
Total other non-cash operating activities	$	603		$	132		$	112		$	38		$	52		$	66		$	8		$	6		$	21
Non-cash investing and financing activities:
Change in capital expenditures not paid	$	(101	)	$	20		$	(79	)	$	(29	)	$	16		$	(6	)	$	7		$	14		$	(18	)
Fair value of pension obligation transferred in connection with the FitzPatrick acquisition	—			33			—			—			—			—			—			—			—
Change in PPE related to ARO update	(141		)	(141		)	—			—			—			—			—			—			—
Indemnification of like-kind exchange position^(g)	—			—			21			—			—			—			—			—			—
Non-cash financing of capital projects	16			16			—			—			—			—			—			—			—
Dividends on stock compensation	5			—			—			—			—			—			—			—			—
Dissolution of financing trust due to long-term debt retirement	8			—			—			—			8			—			—			—			—
Fair value adjustment of long-term debt due to retirement	(5		)	—			—			—			—			—			—			—			—



																									Successor			Predecessor
	Nine Months Ended September 30, 2016																								March 24, 2016 to September 30, 2016			January 1, 2016 to March 23, 2016
	Exelon			Generation			ComEd			PECO			BGE			Pepco			DPL			ACE			PHI			PHI
Other non-cash operating activities:
Pension and non-pension postretirement benefit costs	$	458		$	163		$	124		$	25		$	50		$	24		$	13		$	11		$	58		$	23
Loss from equity method investments	15			16			—			—			—			—			—			—			—			—
Provision for uncollectible accounts	107			14			31			24			12			15			12			18			27			16
Stock-based compensation costs	88			—			—			—			—			—			—			—			—			3
Other decommissioning-related activity^(a)	(237		)	(237		)	—			—			—			—			—			—			—			—
Energy-related options^(b)	(20		)	(20		)	—			—			—			—			—			—			—			—
Amortization of regulatory asset related to debt costs	7			—			3			1			—			2			—			1			2			1
Amortization of rate stabilization deferral	62			—			—			—			62			3			3			—			—			5
Amortization of debt fair value adjustment	(9		)	(9		)	—			—			—			—			—			—			—			—
Discrete impacts from EIMA ^(c)	(36		)	—			(36		)	—			—			—			—			—			—			—
Amortization of debt costs	26			12			(3		)	2			3			—			—			—			—			—
Provision for excess and obsolete inventory	74			70			4			—			—			1			1			1			—			1
Merger-related commitments ^(d)(e)	508			3			—			—			—			125			73			110			308			—
Severance costs	130			57			—			—			—			—			—			—			53			—
Asset retirement costs	—			—			—			—			—			—			5			2			—			—
Lower of cost or net realizable value inventory adjustment	36			36			—			—			—			—			—			—			—			—
Other	15			24			(1		)	(3		)	(18		)	(2		)	(8		)	(5		)	(7		)	(3		)
Total other non-cash operating activities	$	1,224		$	129		$	122		$	49		$	109		$	168		$	99		$	138		$	441		$	46
Non-cash investing and financing activities:
Change in capital expenditures not paid	$	(338	)	$	(289	)	$	(42	)	$	(4	)	$	17		$	15		$	(10	)	$	2		$	(5	)	$	11
Fair value of net assets contributed to Generation in connection with the PHI Merger, net of cash^(d)(f)	—			119			—			—			—			—			—			—			—			—
Fair value of net assets distributed to Exelon in connection with the PHI Merger, net of cash^(d)(f)	—			—			—			—			—			—			—			—			129			—
Fair value of pension obligation transferred in connection with the PHI Merger	—			—			—			—			—			—			—			—			53			—
Assumption of member purchase liability	—			—			—			—			—			—			—			—			29			—
Assumption of merger commitment liability	—			—			—			—			—			33			—			—			33			—
Change in PPE related to ARO update	476			476			—			—			—			—			—			—			—			—
Indemnification of like-kind exchange position^(g)	—			—			157			—			—			—			—			—			—			—
Non-cash financing of capital projects	84			84			—			—			—			—			—			—			—			—
Dividends on stock compensation	2			—			—			—			—			—			—			—			—			—

_________

(a)

Includes the elimination of NDT fund activity for the Regulatory Agreement Units, including the elimination of operating revenues, ARO accretion, ARC amortization, investment income and income taxes related to all NDT fund activity for these units. See Note 16 - Asset Retirement Obligations of the Exelon 2016 Form 10-K for additional information regarding the accounting for nuclear decommissioning.


(b)	Includes option premiums reclassified to realized at the settlement of the underlying contracts and recorded in Operating revenues.

(c)

Reflects the change in distribution rates pursuant to EIMA and FEJA, which allows for the recovery of distribution costs by a utility through a pre-established performance-based formula rate tariff. Beginning June 1, 2017, also reflects the change in energy efficiency rates pursuant to FEJA, which allows for the recovery of energy efficiency costs by a utility through a pre-established performance-based formula rate tariff. See Note 5 — Regulatory Matters for more information.


(d)	See Note 4 — Mergers, Acquisitions and Dispositions for additional information related to the merger with PHI.


(e)	Excludes $5 million of forgiveness of Accounts receivable related to merger commitments recorded in connection with the PHI Merger, the balance is included within Provision for uncollectible accounts.


(f)	Immediately following closing of the PHI Merger, the net assets associated with PHI's unregulated business interests were distributed by PHI to Exelon. Exelon contributed a portion of such net assets to Generation.


(g)	See Note 12— Income Taxes for discussion of the like-kind exchange tax position.

Supplemental Balance Sheet Information

The following tables provide additional information about assets and liabilities of the Registrants as of September 30, 2017 and December 31, 2016.



													Successor
September 30, 2017	Exelon			Generation			ComEd		PECO		BGE		PHI		Pepco		DPL		ACE
Property, plant and equipment:
Accumulated depreciation and amortization	$	20,591	^(a)	$	11,193	^(a)	$	4,191	$	3,366	$	3,351	$	448	$	3,171	$	1,231	$	1,060
Accounts receivable:
Allowance for uncollectible accounts	$	339		$	111		$	72	$	57	$	25	$	74	$	29	$	17	$	28



													Successor
December 31, 2016	Exelon			Generation			ComEd		PECO		BGE		PHI		Pepco		DPL		ACE
Property, plant and equipment:
Accumulated depreciation and amortization	$	19,169	^(b)	$	10,562	^(b)	$	3,937	$	3,253	$	3,254	$	195	$	3,050	$	1,175	$	1,016
Accounts receivable:
Allowance for uncollectible accounts	$	334		$	91		$	70	$	61	$	32	$	80	$	29	$	24	$	27

_________


(a)	Includes accumulated amortization of nuclear fuel in the reactor core of $3,303 million.


(b)	Includes accumulated amortization of nuclear fuel in the reactor core of $3,186 million.

PECO Installment Plan Receivables (Exelon and PECO)

PECO enters into payment agreements with certain delinquent customers, primarily residential, seeking to restore their service, as required by the PAPUC. Customers with past due balances that meet certain income criteria are provided the option to enter into an installment payment plan, some of which have terms greater than one year, to repay past due balances in addition to paying for their ongoing service on a current basis. The receivable balance for these payment agreement receivables is recorded in accounts receivable for the current portion and other deferred debits and other assets for the noncurrent portion. The net receivable balance for installment plans with terms greater than one year was $11 million and $9 million as of September 30, 2017 and December 31, 2016, respectively. The allowance for uncollectible accounts reserve methodology and assessment of the credit quality of the installment plan receivables are consistent with the customer accounts receivable methodology discussed in Note 1 — Significant Accounting Policies of the Exelon 2016 Form 10-K. The allowance for uncollectible accounts balance associated with these receivables at September 30, 2017 of $12 million consists of $3 million and $9 million for medium risk and high risk segments, respectively. The allowance for uncollectible accounts balance at December 31, 2016 of $13 million consists of $1 million, $3 million and $9 million for low risk, medium risk and high risk segments, respectively. The balance of the payment agreement is billed to the customer in equal monthly installments over the term of the agreement. Installment receivables outstanding as of September 30, 2017 and December 31, 2016 include balances not yet presented on the customer bill, accounts currently billed and an immaterial amount of past due receivables. When a customer defaults on its payment agreement, the terms of which are defined by plan type, the entire balance of the agreement becomes due and the balance is reclassified to current customer accounts receivable and reserved for in accordance with the methodology discussed in Note 1 — Significant Accounting Policies of the Exelon 2016 Form 10-K.