Regulatory Matters (Tables)

6 Months Ended

Jun. 30, 2020

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 2020.

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)(a)	April 8, 2019	$	(6	)	$	(17	)	8.91	%	December 4, 2019	January 1, 2020
DPL - Maryland (Electric)	December 5, 2019 (amended April 23, 2020)	17			12			9.60	%	July 14, 2020	July 16, 2020

__________

(a) Reflects an increase of $51 million for the initial revenue requirement for 2019 and a decrease of $68 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 6.51%, inclusive of an allowed ROE of 8.91%, reflecting the average rate on 30-year treasury notes plus 580 basis points.

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 16, 2020	$	(11	)	8.38	%	Fourth quarter of 2020
BGE - Maryland (Electric and Natural Gas)(b)	May 15, 2020	235			10.1	%	Fourth quarter of 2020
Pepco - District of Columbia (Electric)(c)	May 30, 2019 (amended June 1, 2020)	136			9.7	%	Fourth quarter of 2020
DPL - Delaware (Natural Gas)(d)	February 21, 2020 (amended March 17, 2020)	9			10.3	%	First quarter of 2021
DPL - Delaware (Electric)(e)	March 6, 2020 (amended April 16, 2020)	24			10.3	%	Second quarter of 2021

__________

(a) Reflects an increase of $51 million for the initial revenue requirement for 2020 and a decrease of $62 million related to the annual reconciliation for 2019. The revenue requirement for 2020 and annual reconciliation for 2019 provides for a weighted average debt and equity return on distribution rate base of 6.28%, inclusive of an allowed ROE of 8.38%, reflecting the average rate on 30-year treasury notes plus 580 basis points.

(b) Reflects a three-year cumulative multi-year plan for 2021 through 2023 and total requested revenue requirement increases in 2023 of $140 million related to electric distribution and $95 million related to natural gas distribution to recover capital investments made in late 2019 and planned capital investments from 2020 to 2023.

(c) Pepco filed the multi-year plan enhanced proposal as an alternative to address the impacts of COVID-19. Reflects a three-year cumulative multi-year plan and requested revenue requirement increases of $73 million and $63 million for 2022 and 2023, respectively, to recover capital investments made in 2018 and 2019 and planned capital investments from 2020 to 2022.

(d) The rates will go into effect on September 21, 2020, subject to refund.

(e)

The rates will go into effect on October 6, 2020, subject to refund.

Public Utilities Transmission Rate Filings [Table Text Block]

For 2020, the following total increases/(decreases) were included in ComEd’s, PECO'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			Total Revenue Requirement Increase (Decrease)(c)			Allowed Return on Rate Base(d)		Allowed ROE(e)
ComEd	$	18		$	(4	)	$	14		8.17	%	11.50	%
PECO(b)	5			(28		)	(23		)	7.47	%	10.35	%
BGE	16			(3		)	4			7.26	%	10.50	%
Pepco	2			(46		)	(44		)	7.81	%	10.50	%
DPL	(4		)	(40		)	(44		)	7.20	%	10.50	%
ACE	5			(25		)	(20		)	7.40	%	10.50	%

__________

(a) All rates are effective June 2020, subject to review by interested parties, which is anticipated to be completed by the fourth quarter of 2020 or first quarter of 2021 for ComEd, BGE, Pepco, DPL and ACE and second quarter of 2021 for PECO.

(b) PECO posted a revised filing to the PJM website on July 17, 2020 reflecting updates to the formula rate based on the FERC order dated July 9, 2020.

(c) The decrease in PECO's transmission revenue requirement relates to refunds from December 1, 2017, in accordance with the settlement agreement dated July 22, 2019. The change in BGE's transmission revenue requirement includes a $9 million reduction related to a FERC-approved dedicated facilities charge to recover the costs of providing transmission service to specifically designated load by BGE. ComEd, BGE, Pepco, DPL and ACE’s transmission revenue requirement include a decrease related to the April 24, 2020 settlement agreement related to excess deferred income taxes. Refer to Transmission-Related Income Tax Regulatory Assets below for additional information.

(d) Represents the weighted average debt and equity return on transmission rate bases.

(e)

As part of the FERC-approved settlements of ComEd’s 2007 and PECO's 2017 transmission rate cases, the rate of return on common equity is 11.50% and 10.35%, respectively, 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% and 55.75%, respectively. 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]

Energy Efficiency Formula Rate (Exelon and ComEd). ComEd filed its annual energy efficiency formula rate update with the ICC on May 21, 2020.  The filing establishes the revenue requirement used to set the rates that will take effect in January 2021 after the ICC’s review and approval. The revenue requirement requested is based on a reconciliation of the 2019 actual costs plus projected 2020 and 2021 expenditures.

Initial Revenue Requirement Increase		Annual Reconciliation Increase		Total Revenue Requirement Increase			Requested Return on Rate Base		Requested ROE
$	45	$	3	$	48	(a)	6.28	%	8.38	%

__________

(a)

The requested revenue requirement increase provides for a weighted average debt and equity return on rate base of 6.28% inclusive of an allowed ROE of 8.38%. The ROE reflects the average rate on 30-year treasury notes plus 580 basis points. The ROE applicable to the 2019 reconciliation year is 8.96% and the return on rate base is 6.56%, which includes a performance adjustment that can either increase or decrease the ROE.

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
June 30, 2020	$	57	$	1	$	—	$	49	$	7	$	4	$	3	$	—
December 31, 2019	63		3		—		53		7		4		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.