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Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2020
Schedule of Components of Income Tax Expense (Benefit)
Income tax expense (benefit) from continuing operations is comprised of the following components:
For the Year Ended December 31, 2020
 ExelonGenerationComEdPECOBGEPHIPepcoDPLACE
Included in operations:
Federal
Current$26 $130 $(24)$(7)$4 $25 $40 $(13)$(4)
Deferred156 150 112 1 10 (129)(62)(20)(43)
Investment tax credit amortization(28)(25)(2)— — (1)— — — 
State
Current42 40 (27)— — (5)— — — 
Deferred177 (46)118 (24)27 33 15 8 6 
Total$373 $249 $177 $(30)$41 $(77)$(7)$(25)$(41)
For the Year Ended December 31, 2019
 ExelonGenerationComEdPECOBGEPHIPepcoDPLACE
Included in operations:
Federal
Current$85 $147 $59 $45 $(51)$43 $16 $29 $(3)
Deferred489 346 15 20 95 (34)(6)(21)(6)
Investment tax credit amortization(72)(69)(2)— — (1)— — — 
State
Current5 10 (5)— — 3 — — — 
Deferred267 82 96 — 35 27 6 14 9 
Total$774 $516 $163 $65 $79 $38 $16 $22 $— 
For the Year Ended December 31, 2018
 ExelonGenerationComEdPECOBGEPHIPepcoDPLACE
Included in operations:
Federal
Current$226 $337 $(63)$11 $(5)$(4)$28 $(3)$(14)
Deferred(99)(347)145 10 47 23 (22)13 18 
Investment tax credit amortization(24)(21)(2)— — (1)— — — 
State
Current(1)6 (29)1 — 7 — — — 
Deferred16 (83)117 (16)32 8 5 12 8 
Total$118 $(108)$168 $6 $74 $33 $11 $22 $12 
Effective Income Tax Rate Reconciliation
The effective income tax rate from continuing operations varies from the U.S. federal statutory rate principally due to the following:
For the Year Ended December 31, 2020(a)
ExelonGeneration
ComEd(b)
PECO(c)
BGE(d)
PHI(d)
Pepco(d)
DPL(d)
ACE(d)
U.S. federal statutory rate21.0 %21.0 %21.0 %21.0 %21.0 %21.0 %21.0 %21.0 %21.0 %
Increase (decrease) due to:
State income taxes, net of Federal income tax benefit 7.8 0.5 11.6 (4.5)5.5 5.1 4.5 6.6 7.0 
Qualified NDT fund income8.4 23.5 — — — — — — — 
Deferred Prosecution Agreement payments1.8 — 6.8 — — — — — — 
Amortization of investment tax credit, including deferred taxes on basis difference(1.1)(2.6)(0.3)— (0.1)(0.2)(0.1)(0.3)(0.5)
Plant basis differences(4.0)— (0.6)(18.7)(1.5)(1.6)(1.7)(0.4)(3.0)
Production tax credits and other credits(2.2)(5.4)(0.3)— (0.4)(0.3)(0.3)(0.3)(0.5)
Noncontrolling interests1.1 3.2 — — — — — — — 
Excess deferred tax amortization(13.6)— (11.2)(4.6)(13.9)(42.0)(25.4)(51.7)(82.1)
Tax settlements(3.7)(10.3)— — — — — — — 
Other0.5 (0.1)1.8 (0.4)(0.1)(0.4)(0.7)0.1 0.4 
Effective income tax rate16.0 %29.8 %28.8 %(7.2)%10.5 %(18.4)%(2.7)%(25.0)%(57.7)%
For the Year Ended December 31, 2019(a)
ExelonGenerationComEdPECOBGEPHIPepcoDPLACE
U.S. federal statutory rate21.0 %21.0 %21.0 %21.0 %21.0 %21.0 %21.0 %21.0 %21.0 %
Increase (decrease) due to:
State income taxes, net of Federal income tax benefit 5.4 3.8 8.5 — 6.4 4.7 2.0 6.8 7.0 
Qualified NDT fund income5.9 12.3 — — — — — — — 
Amortization of investment tax credit, including deferred taxes on basis difference(1.5)(3.0)(0.2)— (0.1)(0.2)(0.1)(0.2)(0.3)
Plant basis differences(1.4)— — (7.2)(1.2)(1.2)(1.8)(0.4)(0.7)
Production tax credits and other credits(3.1)(4.8)(1.2)— (1.3)(0.2)(0.1)— (0.1)
Noncontrolling interests(0.6)(1.2)— — — — — — — 
Excess deferred tax amortization(5.5)— (9.7)(2.8)(6.8)(17.5)(15.1)(14.2)(27.0)
Other(0.8)(1.2)0.8 — — 0.8 0.3 — 0.1 
Effective income tax rate19.4 %26.9 %19.2 %11.0 %18.0 %7.4 %6.2 %13.0 %— %
For the Year Ended December 31, 2018(a)
ExelonGenerationComEdPECOBGEPHI PepcoDPL ACE
U.S. federal statutory rate21.0 %21.0 %21.0 %21.0 %21.0 %21.0 %21.0 %21.0 %21.0 %
Increase (decrease) due to:
State income taxes, net of Federal income tax benefit 0.5 (16.6)8.3 (2.6)6.6 2.9 2.0 6.7 7.4 
Qualified NDT fund income (1.9)(11.8)— — — — — — — 
Amortization of investment tax credit, including deferred taxes on basis difference(1.2)(6.5)(0.2)(0.1)(0.1)(0.2)(0.1)(0.3)(0.4)
Plant basis differences(3.5)— (0.2)(14.1)(1.3)(1.6)(2.8)(0.3)(0.5)
Production tax credits and other credits(2.2)(13.5)— — — — — — — 
Noncontrolling interests(1.0)(6.1)— — — — — — — 
Excess deferred tax amortization(8.3)— (9.1)(3.2)(8.0)(14.8)(15.3)(12.0)(14.9)
Tax Cuts and Jobs Act of 20170.9 2.7 (0.1)— — 0.1 — — — 
Other1.0 1.3 0.5 0.3 0.9 0.4 0.3 0.4 1.2 
Effective income tax rate5.3 %(29.5)%20.2 %1.3 %19.1 %7.8 %5.1 %15.5 %13.8 %
__________
(a)Positive percentages represent income tax expense. Negative percentages represent income tax benefit.
(b)At ComEd, the higher effective tax rate is primarily related to the nondeductible Deferred Prosecution Agreement payments. See Note 19 — Commitments and Contingencies for additional information.
(c)At PECO, the negative effective tax rate is primarily related to an increase in plant basis differences attributable to tax repair deductions related to an increase in storms and qualifying projects.
(d)At BGE, the lower effective tax rate, and at PHI, Pepco, DPL, and ACE, the negative effective tax rate is primarily attributable to accelerated amortization of transmission related income tax regulatory liabilities as a result of regulatory settlements. See Note 3 — Regulatory Matters for additional information.
Tax Effects of Temporary Differences
The tax effects of temporary differences and carryforwards, which give rise to significant portions of the deferred tax assets (liabilities), as of December 31, 2020 and 2019 are presented below:
As of December 31, 2020
ExelonGenerationComEdPECOBGEPHIPepcoDPLACE
Plant basis differences$(13,868)$(2,592)$(4,432)$(2,131)$(1,711)$(2,822)$(1,259)$(806)$(725)
Accrual based contracts40 (37)— — — 77 — — — 
Derivatives and other financial instruments41 (41)84 — — 2 — — — 
Deferred pension and postretirement obligation1,559 (236)(288)(30)(33)(80)(74)(40)(7)
Nuclear decommissioning activities(742)(742)— — — — — — — 
Deferred debt refinancing costs169 16 (6)— (2)131 (3)(1)(1)
Regulatory assets and liabilities(1,107)— 87 (231)142 (41)38 67 46 
Tax loss carryforward286 55 — 47 57 90 4 49 38 
Tax credit carryforward841 838 — — — — — — — 
Investment in partnerships(835)(813)— — — — — — — 
Other, net1,070 347 223 104 29 220 107 18 27 
Deferred income tax liabilities (net)$(12,546)$(3,205)$(4,332)$(2,241)$(1,518)$(2,423)$(1,187)$(713)$(622)
Unamortized investment tax credits(a)
(464)(445)(9)(1)(3)(6)(2)(2)(3)
Total deferred income tax liabilities (net) and unamortized investment tax credits$(13,010)$(3,650)$(4,341)$(2,242)$(1,521)$(2,429)$(1,189)$(715)$(625)
__________
(a)Does not include unamortized investment tax credits reclassified to liabilities held for sale.
As of December 31, 2019
ExelonGenerationComEdPECOBGEPHIPepcoDPLACE
Plant basis differences$(13,413)$(2,814)$(4,197)$(1,978)$(1,578)$(2,681)$(1,204)$(753)$(687)
Accrual based contracts61 (43)— — — 104 — — — 
Derivatives and other financial instruments165 88 84 — — 2 — — — 
Deferred pension and postretirement obligation1,504 (220)(270)(28)(28)(89)(75)(42)(10)
Nuclear decommissioning activities(503)(503)— — — — — — — 
Deferred debt refinancing costs183 20 (7)— (3)142 (3)(2)(1)
Regulatory assets and liabilities(884)— 183 (169)157 (10)55 88 77 
Tax loss carryforward240 55 — 25 49 93 13 44 31 
Tax credit carryforward892 897 — — — — — — — 
Investment in partnerships(830)(808)— — — — — — — 
Other, net926 236 196 70 10 181 85 12 16 
Deferred income tax liabilities (net)$(11,659)$(3,092)$(4,011)$(2,080)$(1,393)$(2,258)$(1,129)$(653)$(574)
Unamortized investment tax credits(668)(648)(10)(1)(3)(7)(2)(2)(3)
Total deferred income tax liabilities (net) and
unamortized investment tax credits		$(12,327)$(3,740)$(4,021)$(2,081)$(1,396)$(2,265)$(1,131)$(655)$(577)
Summary of Loss Carryforwards
The following table provides Exelon’s, Generation’s, PECO’s, BGE’s, PHI’s, Pepco’s, DPL’s, and ACE’s carryforwards, which are presented on a post-apportioned basis, and any corresponding valuation allowances as of December 31, 2020. ComEd does not have net operating losses or credit carryforwards for the year ended December 31, 2020.
ExelonGenerationPECOBGEPHIPepcoDPLACE
Federal
Federal general business credits carryforwards and other carryforwards$858 $852 $— $— $— $— $— $— 
State
State net operating losses and other carryforwards5,202 1,118 616 902 1,436 63 728 531 
Deferred taxes on state tax attributes (net)324 76 49 59 98 4 49 38 
Valuation allowance on state tax attributes27 23 1 — — — — — 
Year in which net operating loss or credit carryforwards will begin to expire(a)
20342034203220332029202920322031
__________
(a)Generation's state net operating loss carryforwards will begin expiring in 2029. PECO's Pennsylvania charitable contribution carryforwards and BGE's Maryland charitable deduction and capital loss carryforwards will begin expiring in 2021. ACE's New Jersey tax credit carryforward has an indefinite carryforward period. These amounts are not material.
Reconciliation of Unrecognized Tax Benefits Excluding Amounts Pertaining to Examined Tax Returns Roll Forward The following table presents changes in unrecognized tax benefits, by Registrant.
ExelonGenerationComEdPECOBGEPHIPepcoDPLACE
Balance at January 1, 2018$743 $468 $2 $— $120 $125 $59 $21 $14 
Change to positions that only affect timing15 15 — — — — — — — 
Increases based on tax positions prior to 201830 21 — — — 8 7 1 — 
Decreases based on tax positions prior to 2018(a)
(251)(36)— — (120)(88)(66)(22)— 
Decrease from settlements with taxing authorities(53)(53)— — — — — — — 
Decreases from expiration of statute of limitations(7)(7)— — — — — — — 
Balance at December 31, 2018477 408 2 — — 45 — — 14 
Change to positions that only affect timing26 12 3 1 4 3 2 1 — 
Increases based on tax positions related to 20192 1 — — — — — — — 
Increases based on tax positions prior to 201934 19 3 2 3 — — — — 
Decreases based on tax positions prior to 2019(3)(3)— — — — — — — 
Decrease from settlements with taxing authorities(29)4 (2)— — — — — — 
Balance at December 31, 2019507 441 6 3 7 48 2 1 14 
Change to positions that only affect timing6 — 2 3 3 3 1 — 1 
Increases based on tax positions related to 20203 1 — — — — — — — 
Increases based on tax positions prior to 202026 23 1 — — 1 — — — 
Decreases based on tax positions prior to 2020(b)
(348)(346)— — — — — — — 
Decrease from settlements with taxing authorities(b)
(69)(69)— — — — — — — 
Balance at December 31, 2020$125 $50 $9 $6 $10 $52 $3 $1 $15 
__________
(a)Exelon, Generation, BGE, PHI, Pepco, and DPL decreased their unrecognized state tax benefits primarily due to the receipt of favorable guidance with respect to the deductibility of certain depreciable fixed assets. The recognition of the tax benefits related to BGE, PHI, Pepco, and DPL was offset by corresponding regulatory liabilities and that portion had no immediate impact to their effective tax rate.
(b)Exelon's and Generation's unrecognized federal and state tax benefits decreased in the first quarter of 2020 by approximately $411 million due to the settlement of a federal refund claim with IRS Appeals. The recognition of these tax benefits resulted in an increase to Exelon's and Generation’s net income of $76 million and $73 million, respectively, in the first quarter of 2020, reflecting a decrease to Exelon's and Generation's income tax expense of $67 million.
Summary of Positions for which Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Table Text Block]
The following table presents Exelon's, Generation's, and PHI's unrecognized tax benefits that, if recognized, would decrease the effective tax rate. ComEd's, PECO's, BGE's, Pepco's, DPL's, and ACE's amounts are not material.
ExelonGeneration
PHI(a)
December 31, 2020$73 $39 $33 
December 31, 2019462 429 32 
December 31, 2018463 408 31 
__________
(a)PHI has $21 million of unrecognized state tax benefits that, if recognized, $14 million would be in the form of a net operating loss carryforward, which is expected to require a full valuation allowance based on present circumstances.
Long-Term Marginal State Income Tax Rate [Table Text Block]
Quarterly, Exelon reviews and updates its marginal state income tax rates for changes in state apportionment. The Registrants remeasure their existing deferred income tax balances to reflect the changes in marginal rates, which results in either an increase or a decrease to their net deferred income tax liability balances. Utility Registrants record corresponding regulatory liabilities or assets to the extent such amounts are probable of settlement or recovery through customer rates and an adjustment to income tax expense for all other amounts. The impacts to the Utility Registrants for the years ended December 31, 2020, 2019, and 2018 were not material.
December 31, 2020ExelonGeneration
Increase (decrease) to Deferred Income Tax Liability and Income Tax Expense, Net of Federal Taxes$66 $(26)
December 31, 2019
Increase to Deferred Income Tax Liability and Income Tax Expense, Net of Federal Taxes$23 $9 
December 31, 2018
Decrease to Deferred Income Tax Liability and Income Tax Expense, Net of Federal Taxes$(50)$(53)
Allocation of Federal Tax Benefit Under Tax Sharing Agreement [Table Text Block] [Table Text Block] The following table presents the allocation of tax benefits from Exelon under the Tax Sharing Agreement.
GenerationComEdPECOBGEPHIPepcoDPLACE
December 31, 2020(a)
$64 $14 $17 $— $17 $8 $6 $1 
December 31, 2019(b)
41 — 14 3 7 6 1 — 
December 31, 2018(c)
155 1 48 26 2 — — — 
__________
(a)BGE did not record an allocation of federal tax benefits from Exelon under the Tax Sharing Agreement as a result of a tax net operating loss.
(b)ACE did not record an allocation of federal tax benefits from Exelon under the Tax Sharing Agreement as a result of a tax net operating loss.
(c)Pepco, DPL, and ACE did not record an allocation of federal tax benefits from Exelon under the Tax Sharing Agreement as a result of a tax net operating loss.
Total amounts of interest and penalties recognized
The following table represents the net interest and penalties receivable (payable) related to tax positions reflected in Exelon's Consolidated Balance Sheets. Generation's and the Utility Registrants' amounts are not material.
Net interest and penalties receivable as ofExelon
December 31, 2020$314 
December 31, 2019318