Regulatory Matters (Tables)

9 Months Ended

Sep. 30, 2019

Regulated Operations [Abstract]

Public Utilities Distribution Rate Cases [Table Text Block]

The following tables show the completed and pending distribution base rate case proceedings in 2019.

Completed Distribution Base Rate Case Proceedings

Registrant/Jurisdiction	Filing Date	Requested Revenue Requirement (Decrease) Increase				Approved Revenue Requirement (Decrease) Increase				Approved ROE		Approval Date	Rate Effective Date
ComEd - Illinois (Electric)	April 16, 2018	$	(23	)		$	(24	)		8.69%		December 4, 2018	January 1, 2019
PECO - Pennsylvania (Electric)	March 29, 2018	$	82			$	25			N/A	(a)	December 20, 2018	January 1, 2019
BGE - Maryland (Natural Gas)	June 8, 2018 (amended October 12, 2018)	$	61			$	43			9.8%		January 4, 2019	January 4, 2019
ACE - New Jersey (Electric)	August 21, 2018 (amended November 19, 2018)	$	122		(b)	$	70		(b)	9.6%		March 13, 2019	April 1, 2019
Pepco - Maryland (Electric)	January 15, 2019 (amended May 16, 2019)	$	27			$	10			9.6%		August 12, 2019	August 13, 2019

__________

(a) The PECO rate case proceeding was resolved through a settlement agreement, which did not specify an approved ROE.

(b) Requested and approved increases are before New Jersey sales and use tax.

Pending Distribution Base Rate Case Proceedings

Registrant/Jurisdiction	Filing Date	Requested Revenue Requirement (Decrease) Increase			Requested ROE		Expected Approval Timing
ComEd - Illinois (Electric)(a)	April 8, 2019	$	(6	)	8.91	%	December 2019
BGE - Maryland (Electric)(b)	May 24, 2019 (amended October 4, 2019)	$	74		10.3	%	December 2019
BGE - Maryland (Natural Gas)(b)	May 24, 2019 (amended October 4, 2019)	$	59		10.3	%	December 2019
Pepco - District of Columbia (Electric)(c)	May 30, 2019 (amended September 16, 2019)	$	160		10.3	%	Fourth quarter of 2020

__________

(a) Reflects an increase of $57 million for the initial revenue requirement for 2019 and a decrease of $63 million related to the annual reconciliation for 2018. The revenue requirement for 2019 and annual reconciliation for 2018 provides for a weighted average debt and equity return on distribution rate base of 6.53%. See Note 4 — Regulatory Matters of the Exelon 2018 Form 10-K for additional information on ComEd's distribution formula rate filings.

(b) On October 25, 2019, BGE filed a settlement agreement with the MDPSC. The settlement provides for an increase to BGE’s annual electric and natural gas distribution rates of $18 million and $45 million, respectively.

(c)

Reflects a three-year cumulative multi-year plan and total requested revenue requirement increases of $84 million, $40 million and $36 million for years 2020, 2021, and 2022, respectively, to recover capital investments made in 2018 and 2019 and planned capital investments from 2020 to 2022.

Public Utilities Transmission Rate Filings [Table Text Block]

For 2019, the following total increases/(decreases) were included in ComEd’s, BGE’s, Pepco's, DPL's and ACE's electric transmission formula rate filings:

Registrant(a)	Initial Revenue Requirement Increase (Decrease)			Annual Reconciliation (Decrease) Increase			Total Revenue Requirement Increase (Decrease)				Allowed Return on Rate Base(c)		Allowed ROE(d)
ComEd	$	21		$	(16	)	$	5			8.21	%	11.50	%
BGE	(10		)	(23		)	(19		)	(b)	7.35	%	10.50	%
Pepco	15			11			26				7.75	%	10.50	%
DPL	17			(1		)	16				7.14	%	10.50	%
ACE	11			(2		)	9				7.79	%	10.50	%

__________

(a) All rates are effective June 2019, subject to review by the FERC and other parties, which is due by the fourth quarter of 2019.

(b) The change in BGE's transmission revenue requirement includes a FERC approved dedicated facilities charge of $14 million to recover the costs of providing transmission service to specifically designated load by BGE.

(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 transmission rate case, the rate of return on common equity is 11.50%, 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%. 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]

ComEd filed its annual energy efficiency formula rate update with the ICC on May 23, 2019. The filing establishes the revenue requirement used to set the rates that will take effect in January 2020 after the ICC’s review and approval. The revenue requirement requested is based on a reconciliation of the 2018 actual costs plus projected 2019 and 2020 expenditures.

Registrant	Initial Revenue Requirement Increase (Decrease)		Annual Reconciliation Increase (Decrease)			Total Revenue Requirement Increase (Decrease)			Requested Return on Rate Base		Requested ROE
ComEd	$	53	$	(2	)	$	51	(a)	6.53	%	8.91	%

__________

(a)

The requested revenue requirement increase provides for a weighted average debt and equity return on rate base of 6.53% inclusive of an allowed ROE of 8.91%. The ROE reflects the average rate on 30-year treasury notes plus 580 basis points. The ROE applicable to the 2018 reconciliation year is 10.91% and the return on rate base is 7.49%, which include the Performance Adjustment, which can either increase or decrease the ROE by up to a maximum of 200 basis points.

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
September 30, 2019	$	59	$	4	$	—	$	47	$	8	$	5	$	3	$	—
December 31, 2018	$	65	$	8	$	—	$	49	$	8	$	5	$	3	$	—

_________

(a) Reflects ComEd's unrecognized equity returns earned 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.