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, 2017 and 2016:



	Average Service Life (years)	2017		2016
Asset Category
Electric—transmission and distribution	5-90	$	49,506	$	45,698
Electric—generation	2-56	29,019		27,193
Gas—transportation and distribution	5-90	5,050		4,642
Common—electric and gas	5-75	1,447		1,312
Nuclear fuel ^(a)	1-8	6,420		6,546
Construction work in progress	N/A	2,825		4,306
Other property, plant and equipment ^(b)	2-50	999		1,027
Total property, plant and equipment		95,266		90,724
Less: accumulated depreciation ^(c)		21,064		19,169
Property, plant and equipment, net		$	74,202	$	71,555

__________


(a)	Includes nuclear fuel that is in the fabrication and installation phase of $1,196 million and $1,326 million at December 31, 2017 and 2016, respectively.

(b)

Includes Generation’s buildings under capital lease with a net carrying value of $7 million and $10 million at December 31, 2017 and 2016, respectively. The original cost basis of the buildings was $47 million and $52 million, and total accumulated amortization was $40 million and $42 million, as of December 31, 2017 and 2016, respectively. Also includes ComEd’s buildings under capital lease with a net carrying value at both December 31, 2017 and 2016, 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, 2017 and 2016. Includes land held for future use and non-utility property at ComEd, PECO, BGE, Pepco, DPL and ACE of $44 million, $21 million, $26 million, $59 million, $15 million and $27 million, respectively, at December 31, 2017. Includes the original cost and progress payments associated with Generation’s turbine equipment held for future use with a carrying value of $0 million and $17 million as of December 31, 2017 and 2016, respectively. Generation's turbine equipment was impaired by $11 million and the remaining $6 million was moved to the assets held for sale account at December 31, 2017.


(c)	Includes accumulated amortization of nuclear fuel in the reactor core at Generation of $3,159 million and $3,186 million as of December 31, 2017 and 2016, 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	2017			2016			2015
Electric—transmission and distribution	2.75	%		2.73	%		2.83	%
Electric—generation^(a)	4.36	%	^(a)	5.94	%	^(a)	3.47	%
Gas	2.10	%		2.17	%		2.17	%
Common—electric and gas	7.05	%		7.41	%		7.79	%

__________


(a)	See Note 8 — Early Nuclear Plant Retirements for additional information on the accelerated net depreciation and amortization of Clinton, Quad Cities and TMI.

Generation

The following table presents a summary of property, plant and equipment by asset category as of December 31, 2017 and 2016:



	Average Service Life (years)	2017		2016
Asset Category
Electric—generation	2-56	$	29,019	$	27,193
Nuclear fuel ^(a)	1-8	6,420		6,546
Construction work in progress	N/A	838		2,332
Other property, plant and equipment ^(b)	2-3	57		76
Total property, plant and equipment		36,334		36,147
Less: accumulated depreciation ^(c)		11,428		10,562
Property, plant and equipment, net		$	24,906	$	25,585

__________


(a)	Includes nuclear fuel that is in the fabrication and installation phase of $1,196 million and $1,326 million at December 31, 2017 and 2016, respectively.

(b)

Includes buildings under capital lease with a net carrying value of $7 million and $10 million at December 31, 2017 and 2016, respectively. The original cost basis of the buildings was $47 million and $52 million, and total accumulated amortization was $40 million and $42 million, as of December 31, 2017 and 2016, respectively. Includes the original cost and progress payments associated with Generation’s turbine equipment held for future use with a carrying value of $0 million and $17 million as of December 31, 2017 and 2016, respectively. Generation's turbine equipment was impaired by $11 million and the remaining $6 million was moved to the assets held for sale account at December 31, 2017.


(c)	Includes accumulated amortization of nuclear fuel in the reactor core of $3,159 million and $3,186 million as of December 31, 2017 and 2016, respectively.

The annual depreciation provisions as a percentage of average service life for electric generation assets were 4.36%, 5.94% and 3.47% for the years ended December 31, 2017, 2016 and 2015, respectively. See Note 8 — Early Nuclear Plant Retirements for additional information on the accelerated net depreciation and amortization of Clinton, Quad Cities and TMI.

License Renewals

Generation’s depreciation provisions are based on the estimated useful lives of its generating stations, which reflect the renewal of the licenses for all nuclear generating stations (except for Oyster Creek, Clinton and TMI) 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. Clinton depreciation provisions are based on 2027 which is the last year of the Illinois ZECs. In 2017, Oyster Creek and TMI depreciation provisions were based on their 2019 expected shutdown dates. Beginning February 2018, Oyster Creek depreciation provisions will be based on its announced shutdown date of 2018. See Note 3 — Regulatory Matters for additional information regarding license renewals and the Illinois ZECs. See Note 8 — 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, 2017 and 2016:



	Average Service Life (years)	2017		2016
Asset Category
Electric—transmission and distribution	5-80	$	24,423	$	22,636
Construction work in progress	N/A	517		569
Other property, plant and equipment ^{(a), (b)}	36-50	52		67
Total property, plant and equipment		24,992		23,272
Less: accumulated depreciation		4,269		3,937
Property, plant and equipment, net		$	20,723	$	19,335

__________


(a)	Includes buildings under capital lease with a net carrying value at both December 31, 2017 and 2016 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, 2017 and 2016.


(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 2.99%, 3.03% and 3.03% for the years ended December 31, 2017, 2016 and 2015, respectively.

PECO

The following table presents a summary of property, plant and equipment by asset category as of December 31, 2017 and 2016:



	Average Service Life (years)	2017		2016
Asset Category
Electric—transmission and distribution	5-65	$	7,975	$	7,591
Gas—transportation and distribution	5-70	2,504		2,348
Common—electric and gas	5-50	710		670
Construction work in progress	N/A	254		188
Other property, plant and equipment ^(a)	50	21		21
Total property, plant and equipment		11,464		10,818
Less: accumulated depreciation		3,411		3,253
Property, plant and equipment, net		$	8,053	$	7,565

__________


(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	2017		2016		2015
Electric—transmission and distribution	2.37	%	2.32	%	2.39	%
Gas	1.89	%	1.82	%	1.87	%
Common—electric and gas	5.47	%	5.11	%	5.16	%

BGE

The following table presents a summary of property, plant and equipment by asset category as of December 31, 2017 and 2016:



	Average Service Life (years)	2017		2016
Asset Category
Electric—transmission and distribution	5-90	$	7,464	$	7,067
Gas—distribution	5-90	2,379		2,170
Common—electric and gas	5-40	771		707
Construction work in progress	N/A	367		318
Other property, plant and equipment ^(a)	20	26		32
Total property, plant and equipment		11,007		10,294
Less: accumulated depreciation		3,405		3,254
Property, plant and equipment, net		$	7,602	$	7,040

__________


(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	2017		2016		2015
Electric—transmission and distribution	2.58	%	2.56	%	2.62	%
Gas	2.33	%	2.45	%	2.50	%
Common—electric and gas	8.64	%	9.45	%	10.35	%

PHI

The following table presents a summary of property, plant and equipment by asset category as of December 31, 2017 and 2016:



		Successor
	Average Service Life (years)	2017			2016
Asset Category
Electric—transmission and distribution	5-75	$	11,517		$	10,315
Gas—distribution	5-75	449			414
Common—electric and gas	5-75	82			65
Construction work in progress	N/A	835			892
Other property, plant and equipment ^(a)	3-43	102			107
Total property, plant and equipment		12,985			11,793
Less: accumulated depreciation		487		—	195
Property, plant and equipment, net		$	12,498		$	11,598

__________


(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	2017		2016		2015
Electric—transmission and distribution	2.63	%	2.52	%	2.48	%
Gas	2.07	%	2.57	%	2.55	%
Common—electric and gas	6.50	%	8.12	%	5.19	%

Pepco

The following table presents a summary of property, plant and equipment by asset category as of December 31, 2017 and 2016:



	Average Service Life (years)	2017			2016
Asset Category
Electric—transmission and distribution	5-75	$	8,646		$	8,018
Construction work in progress	N/A	473			537
Other property, plant and equipment^(a)	25-33	59			66
Total property, plant and equipment		9,178			8,621
Less: accumulated depreciation		3,177		—	3,050
Property, plant and equipment, net		$	6,001		$	5,571

__________


(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 2.35%, 2.17% and 2.13% for the years ended December 31, 2017, 2016 and 2015, respectively.

DPL

The following table presents a summary of property, plant and equipment by asset category as of December 31, 2017 and 2016:



	Average Service Life (years)	2017			2016
Asset Category
Electric—transmission and distribution	5-70	$	3,875		$	3,574
Gas—distribution	5-75	614			580
Common—electric and gas	5-75	117			115
Construction work in progress	N/A	205			163
Other property, plant and equipment ^(a)	10-43	15			16
Total property, plant and equipment		4,826			4,448
Less: accumulated depreciation		1,247		—	1,175
Property, plant and equipment, net		$	3,579		$	3,273

__________


(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	2017		2016		2015
Electric—transmission and distribution	2.75	%	2.49	%	2.44	%
Gas	2.07	%	2.57	%	2.55	%
Common—electric and gas	4.14	%	4.99	%	4.24	%

ACE

The following table presents a summary of property, plant and equipment by asset category as of December 31, 2017 and 2016:



	Average Service Life (years)	2017			2016
Asset Category
Electric—transmission and distribution	5-60	$	3,607		$	3,341
Construction work in progress	N/A	138			169
Other property, plant and equipment ^(a)	13-15	27			27
Total property, plant and equipment		3,772			3,537
Less: accumulated depreciation		1,066		—	1,016
Property, plant and equipment, net		$	2,706		$	2,521

__________


(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 2.46%, 2.45% and 2.46% for the years ended December 31, 2017, 2016 and 2015, 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 13 — Debt and Credit Agreements for further information regarding Exelon’s, ComEd’s and PECO’s property, plant and equipment subject to mortgage liens.