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Income Taxes (All Registrants)
 6 Months Ended
Jun. 30, 2021
Income Tax Disclosure [Abstract]  
Income Taxes (All Registrants) Income Taxes (All Registrants)
Rate Reconciliation
The effective income tax rate from continuing operations varies from the U.S. federal statutory rate principally due to the following:
Three Months Ended June 30, 2021
Exelon(a)
Generation(a)
ComEd(a)
PECO(a)
BGE(a)(b)
PHI(a)
Pepco(a)
DPL(a)
ACE(a)
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 benefit1.4(1.3)8.0(2.9)(12.5)2.4(2.1)7.08.1
Qualified NDT fund income17.985.2———————
Amortization of investment tax credit, including deferred taxes on basis difference—(1.8)(0.1)—(0.1)(0.1)—(0.2)(0.2)
Plant basis differences(3.1)—(0.7)(12.5)(2.3)(1.1)(1.5)(0.7)(0.6)
Production tax credits and other credits(1.9)(13.0)(0.8)—(3.6)(0.8)(0.7)(0.9)(0.6)
Noncontrolling interests(0.9)(4.2)———————
Excess deferred tax amortization(10.4)—(7.0)(3.3)(17.5)(22.3)(19.0)(21.9)(28.2)
Other(10.6)2.8(1.1)(0.4)(6.6)(1.3)(1.9)(1.1)(2.3)
Effective income tax rate13.4%88.7%19.3%1.9%(21.6)%(2.2)%(4.2)%3.2%(2.8)%
Three Months Ended June 30, 2020
Exelon(a)
Generation(a)
ComEd(c)
PECO(d)
BGE(d)
PHI(d)
Pepco(d)
DPL(e)
ACE(e)
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 benefit3.83.1(131.7)(9.7)3.8(25.8)2.16.77.2
Qualified NDT fund income18.817.3———————
Deferred Prosecution Agreement payments5.3—(288.3)——————
Amortization of investment tax credit, including deferred taxes on basis difference(0.6)(0.5)2.9—(0.2)(2.2)(0.1)0.50.3
Plant basis differences(1.6)—2.4(23.6)(13.4)(44.7)(3.9)(1.1)10.0
Production tax credits and other credits(1.4)(1.2)3.3—(1.0)(0.7)(0.1)0.1—
Noncontrolling interests0.10.1———————
Excess deferred tax amortization(15.5)—116.0(4.8)(137.9)(1,358.5)(89.0)284.0174.5
Tax Settlements(1.9)(1.8)———————
Other(f)
(0.4)0.3(32.3)(4.8)(1.7)168.0(2.7)(0.1)7.0
Effective income tax rate27.6%38.3%(306.7)%(21.9)%(129.4)%(1,242.9)%(72.7)%311.1%220.0%
__________
(a)Positive percentages represent income tax expense. Negative percentages represent income tax benefit.
(b)For BGE, the income tax benefit is primarily due to the Maryland multi-year plan which resulted in the acceleration of certain income tax benefits.
(c)ComEd recognized a loss before income taxes for the three months ended June 30, 2020. As a result, negative percentages represent income tax expense. The higher effective tax rate is primarily related to the nondeductible Deferred Prosecution Agreement payments.
(d)At PECO, BGE, PHI, and Pepco, negative percentages represent an income tax benefit. At PECO, the lower effective tax rate is primarily related to an increase in plant basis differences attributable to storm repairs. At BGE, PHI, and Pepco, the lower effective tax rate is primarily attributable to accelerated amortization of transmission related deferred income tax regulatory liabilities as a result of regulatory settlements.
(e)DPL and ACE recognized a loss before income taxes for the three months ended June 30, 2020. As a result, positive percentages represent an income tax benefit. At DPL and ACE, the higher effective tax rate is primarily attributable to accelerated amortization of transmission related deferred income tax regulatory liabilities as a result of regulatory settlements.
(f)For Exelon, "Other" is primarily driven by the reversal of the consolidating income tax adjustment recorded at Exelon Corporate in the first quarter of 2021 that was required pursuant to GAAP interim reporting guidance.
Six Months Ended June 30, 2021
Exelon(a)
Generation(b)
ComEd(a)
PECO(a)(d)
BGE(a)(c)
PHI(a)
Pepco(a)
DPL(a)
ACE(a)
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(12.6)5.37.4(2.1)(10.5)4.21.56.67.8
Qualified NDT fund income56.2(18.3)———————
Amortization of investment tax credit, including deferred taxes on basis difference(2.5)0.7(0.1)—(0.1)(0.1)—(0.2)(0.2)
Plant basis differences(15.7)—(0.6)(11.3)(1.6)(1.3)(1.8)(0.7)(0.7)
Production tax credits and other credits(11.0)2.9(0.5)—(0.9)(0.5)(0.5)(0.4)(0.5)
Noncontrolling interests(2.5)0.8———————
Excess deferred tax amortization(50.9)—(7.0)(3.3)(15.9)(20.8)(17.2)(19.7)(28.3)
Other(e)
38.5(3.9)(2.3)(0.1)(1.0)(0.7)(0.8)(0.1)(1.1)
Effective income tax rate20.5%8.5%17.9%4.2%(9.0)%1.8%2.2%6.5%(2.0)%

Six Months Ended June 30, 2020
Exelon(a)
Generation(a)
ComEd(a)(g)
PECO(a)(d)
BGE(a)(h)
PHI(a)(h)
Pepco(a)(h)
DPL(a)(h)
ACE(i)
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 benefit6.77.219.1(1.6)5.64.33.76.512.4
Qualified NDT fund income(5.7)(16.0)———————
Deferred Prosecution Agreement payments4.8—22.2——————
Amortization of investment tax credit, including deferred taxes on basis difference(1.0)(2.3)(0.4)—(0.1)(0.2)(0.1)(0.3)7.2
Plant basis differences(3.7)—(1.4)(11.0)(2.0)(3.5)(2.7)(0.6)146.2
Production tax credits and other credits(2.2)(5.5)(0.4)—(0.2)(0.1)(0.1)—0.7
Noncontrolling interests1.13.2———————
Excess deferred tax amortization(20.9)—(20.2)(3.3)(16.1)(80.3)(41.6)(72.9)2,613.8
Tax Settlements(f)
(9.3)(26.1)———————
Other0.7(0.3)3.5(0.3)(0.6)(1.5)(1.3)0.8398.7
Effective income tax rate(8.5)%(18.8)%43.4%4.8%7.6%(60.3)%(21.1)%(45.5)%3,200.0%
__________
(a)Positive percentages represent income tax expense. Negative percentages represent income tax benefit.
(b)Generation recognized a loss before income taxes for the six months ended June 30, 2021. As a result, positive percentages represent an income tax benefit for the period presented.
(c)For BGE, the income tax benefit is primarily due to the Maryland multi-year plan which resulted in the acceleration of certain income tax benefits.
(d)For PECO, the lower effective tax rate is primarily attributable to plant basis differences attributable to tax repairs.
(e)For Exelon, "Other" is primarily driven by the consolidating income tax adjustment recorded at Exelon Corporate in the first quarter of 2021 that was required pursuant to GAAP interim reporting guidance. This incremental expense will reverse by year-end and will not have an impact on annual results.
(f)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.
(g)At ComEd, the higher effective tax rate is primarily related to the nondeductible Deferred Prosecution Agreement payments.
(h)At BGE, PHI, Pepco, and DPL, the lower effective tax rate is primarily attributable to accelerated amortization of transmission related deferred income tax regulatory liabilities as a result of regulatory settlements.
(i)ACE recognized a loss before income taxes for the six months ended June 30, 2020. As a result, a positive percentage at ACE represents an income tax benefit for the period presented. At ACE, the higher effective tax rate is primarily attributable to accelerated amortization of transmission related deferred income tax regulatory liabilities as a result of regulatory settlements.

Unrecognized Tax Benefits
PHI and ACE have the following unrecognized tax benefits as of June 30, 2021 and December 31, 2020. Exelon's, Generation's, ComEd's, PECO's, BGE's, Pepco's, and DPL's amounts are not material.
PHIACE
June 30, 2021$54 $16 
December 31, 202052 15 
Reasonably possible the total amount of unrecognized tax benefits could significantly increase or decrease within 12 months after the reporting date
As of June 30, 2021, ACE has approximately $14 million of unrecognized state tax benefits that could significantly decrease within the 12 months after the reporting date based on the outcome of pending court cases involving other taxpayers. The unrecognized tax benefit, if recognized, may be included in future base rates and that portion would have no impact to the effective tax rate.