Accounts Receivable (All Registrants)

6 Months Ended

Jun. 30, 2020

Loans, Notes, Trade and Other Receivables Disclosure [Text Block]

Accounts Receivable (All Registrants)

Allowance for Credit Losses on Accounts Receivable (All Registrants)

The following tables present the rollforward of Allowance for Credit Losses on Customer Accounts Receivable.



	Three Months Ended June 30, 2020
	Exelon		Generation		ComEd		PECO		BGE		PHI			Pepco			DPL		ACE
Balance as of March 31, 2020	$	278	$	81	$	71	$	66	$	18	$	42		$	15		$	13	$	14
Plus: Current Period Provision for Expected Credit Losses	51		9		7		10		6		19			8			5		6
Less: Write-offs, net of recoveries^(a)	12		1		6		5		1		(1		)	(1		)	—		—
Less: Sale of customer accounts receivable ^(b)	56		56		—		—		—		—			—			—		—
Balance as of June 30, 2020	$	261	$	33	$	72	$	71	$	23	$	62		$	24		$	18	$	20



	Six Months Ended June 30, 2020
	Exelon		Generation		ComEd		PECO		BGE		PHI		Pepco		DPL		ACE
Balance as of December 31, 2019	$	243	$	80	$	59	$	55	$	12	$	37	$	13	$	11	$	13
Plus: Current Period Provision for Expected Credit Losses	106		13		25		28		14		26		11		7		8
Less: Write-offs, net of recoveries^(a)	32		4		12		12		3		1		—		—		1
Less: Sale of customer accounts receivable ^(b)	56		56		—		—		—		—		—		—		—
Balance as of June 30, 2020	$	261	$	33	$	72	$	71	$	23	$	62	$	24	$	18	$	20

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(a)	Recoveries were not material to the Registrants.


(b)	See below for additional information on the sale of customer accounts receivable at Generation in the second quarter of 2020.

The following tables present the rollforward of Allowance for Credit Losses on Other Accounts Receivable.



	Three Months Ended June 30, 2020
	Exelon		Generation		ComEd		PECO		BGE		PHI		Pepco		DPL		ACE
Balance as of March 31, 2020	$	52	$	—	$	22	$	7	$	5	$	18	$	8	$	4	$	6
Plus: Current Period Provision for Expected Credit Losses	12		—		1		1		2		8		3		3		2
Less: Write-offs, net of recoveries^(a)	3		—		1		1		1		—		—		—		—
Balance as of June 30, 2020	$	61	$	—	$	22	$	7	$	6	$	26	$	11	$	7	$	8



	Six Months Ended June 30, 2020
	Exelon		Generation		ComEd		PECO		BGE		PHI		Pepco		DPL		ACE
Balance as of December 31, 2019	$	48	$	—	$	20	$	7	$	5	$	16	$	7	$	4	$	5
Plus: Current Period Provision for Expected Credit Losses	20		—		4		2		4		10		4		3		3
Less: Write-offs, net of recoveries^(a)	7		—		2		2		3		—		—		—		—
Balance as of June 30, 2020	$	61	$	—	$	22	$	7	$	6	$	26	$	11	$	7	$	8

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(a)	Recoveries were not material to the Registrants.

Unbilled Customer Revenue (All Registrants)

The following table provides additional information about unbilled customer revenues recorded in the Registrants' Consolidated Balance Sheets.



	Unbilled customer revenues^(a)
	Exelon		Generation		ComEd		PECO		BGE		PHI		Pepco		DPL		ACE
June 30, 2020	$	804	$	120	$	257	$	120	$	116	$	191	$	102	$	49	$	40
December 31, 2019	1,535		807		218		146		170		194		100		61		33

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(a)	Unbilled customer revenues are classified in customer accounts receivables, net in the Registrants' Consolidated Balance Sheets.

Sales of Customer Accounts Receivable (Exelon and Generation)

On April 8, 2020, NER, a bankruptcy remote, special purpose entity, which is wholly-owned by Generation, entered into a revolving accounts receivable financing arrangement with a number of financial institutions and a commercial paper conduit (the Purchasers) to sell certain customer accounts receivable (the Facility). The Facility, whose maximum capacity is $750 million, is scheduled to expire on April 7, 2021, unless renewed by the mutual consent of the parties in accordance with its terms. Under the Facility, NER may sell eligible short-term customer accounts receivable to the Purchasers in exchange for cash and subordinated interest. The transfers are reported as sales of receivables in Exelon’s and Generation’s consolidated financial statements. The subordinated interest in collections upon the receivables sold to the Purchasers is referred to as the DPP, which is reflected in Other current assets on Exelon’s and Generation’s Consolidated Balance Sheet.

On April 8, 2020, Generation derecognized and transferred approximately $1.2 billion of receivables at fair value to the Purchasers in exchange for approximately $500 million in cash purchase price and $650 million of DPP.

The following table summarizes the impact of the sale of certain receivables:



	As of June 30, 2020
Derecognized receivables transferred at fair value^(a)	$	1,135
Cash proceeds received	500
DPP	635

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(a)	Includes additional customer accounts receivable sold into the Facility of $2,032 million since the start of the financing agreement.



	Three and six months ended June 30, 2020
Loss on sale of receivables^(a)	$	15

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(a)	Reflected in Operating and maintenance expense on Exelon and Generation's Consolidated Statements of Operations and Income Statement.



	Six months ended June 30, 2020
Proceeds from new transfers	$	927
Cash collections received on DPP	1,102
Cash collections reinvested in the Facility	2,029

Generation’s risk of loss following the transfer of accounts receivable is limited to the DPP outstanding. Payment of DPP is not subject to significant risks other than delinquencies and credit losses on accounts receivable transferred, which have historically been and are expected to be immaterial. Generation continues to service the receivables sold in exchange for a servicing fee. Generation did not record a servicing asset or liability as the servicing fees were immaterial.

Generation reflected the cash proceeds received upon sale in Net cash provided by operating activities in the Consolidated Statements of Cash Flows. The collection and reinvestment of DPP is recognized in Net cash provided by investing activities of the Consolidated Statements of Cash Flows.

See Note 13 — Fair Value of Financial Assets and Liabilities and Note 16 — Variable Interest Entities for additional information.

Other Purchases and Sales of Customer and Other Accounts Receivables (All Registrants)

Generation is required, under supplier tariffs in ISO-NE, MISO, NYISO and PJM, to sell customer and other receivables to utility companies, which include the Utility Registrants. The Utility Registrants are required, under separate legislation and regulations in Illinois, Pennsylvania, Maryland, District of Columbia and New Jersey, to purchase certain receivables from alternative retail electric and, as applicable, natural gas suppliers that participate in the utilities' consolidated billing. The following tables present the total receivables purchased and sold.



	Six Months Ended June 30, 2020
	Exelon		Generation		ComEd		PECO		BGE		PHI		Pepco		DPL		ACE
Total Receivables Purchased	$	1,584	$	—	$	518	$	494	$	333	$	485	$	303	$	98	$	84
Total Receivables Sold	533		779		—		—		—		—		—		—		—

Related Party Transactions:
Receivables purchased from Generation	—		—		34		67		73		72		51		13		8
Receivables sold to the Utility Registrants	—		246		—		—		—		—		—		—		—