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Accounts Receivable (All Registrants)
 9 Months Ended
Sep. 30, 2021
Credit Loss [Abstract]  
Accounts Receivable (All Registrants) [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 September 30, 2021
ExelonGenerationComEdPECOBGEPHIPepcoDPLACE
Balance as of June 30, 2021$395 $75 $89 $111 $27 $93 $38 $19 $36 
Plus: Current period provision for expected credit losses(a)
47 10 11 1 7 18 5 3 10 
Less: Write-offs, net of recoveries(b)
33 1 12 11 3 6 2 4 — 
Balance as of September 30, 2021$409 $84 $88 $101 $31 $105 $41 $18 $46 
Three Months Ended September 30, 2020
ExelonGenerationComEdPECOBGEPHIPepcoDPLACE
Balance as of June 30, 2020$261 $33 $72 $71 $23 $62 $24 $18 $20 
Plus: Current period provision for expected credit losses(c)
114 1 37 27 14 35 11 7 17 
Less: Write-offs, net of recoveries(b)
17 1 4 2 2 8 — 3 5 
Balance as of September 30, 2020$358 $33 $105 $96 $35 $89 $35 $22 $32 
Nine Months Ended September 30, 2021
ExelonGenerationComEdPECOBGEPHIPepcoDPLACE
Balance as of December 31, 2020$366 $32 $97 $116 $35 $86 $32 $22 $32 
Plus: Current period provision for expected credit losses(d)
122 57 23 7 2 33 15 4 14 
Less: Write-offs, net of recoveries(b)
79 5 32 22 6 14 6 8 — 
Balance as of September 30, 2021$409 $84 $88 $101 $31 $105 $41 $18 $46 
Nine Months Ended September 30, 2020
ExelonGenerationComEdPECOBGEPHIPepcoDPLACE
Balance as of December 31, 2019$243 $80 $59 $55 $12 $37 $13 $11 $13 
Plus: Current period provision for expected credit losses(c)
222 13 62 56 28 63 24 14 25 
Less: Write-offs, net of recoveries(b)
51 4 16 15 5 11 2 3 6 
Less: Sale of customer accounts receivable(e)
56 56 — — — — — — — 
Balance as of September 30, 2020$358 $33 $105 $96 $35 $89 $35 $22 $32 
__________
(a)For ACE, the increase is primarily a result of increased aging of receivables and a slight decrease in the expected recovery rate.
(b)Recoveries were not material to the Registrants.
(c)For the Utility Registrants, the increase is primarily as a result of increased aging of receivables, the temporary suspension of customer disconnections for non-payment, temporary cessation of new late payment fees, and reconnections of service to customers previously disconnected due to COVID-19.
(d)For Generation, primarily relates to the impacts of the February 2021 extreme cold weather event. See Note 3 — Regulatory Matters for additional information. For PHI, Pepco, and ACE, the increase is primarily a result of increased aging of receivables and a slight decrease in the expected recovery rate.
(e)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 September 30, 2021
ExelonGenerationComEdPECOBGEPHIPepcoDPLACE
Balance as of June 30, 2021$72 $1 $18 $7 $8 $38 $16 $9 $13 
Plus: Current period provision for expected credit losses9 3 2 1 1 2 1 (1)2 
Less: Write-offs, net of recoveries(a)
4 — 1 1 1 — — — — 
Balance as of September 30, 2021$77 $4 $19 $7 $8 $40 $17 $8 $15 
Three Months Ended September 30, 2020
ExelonGenerationComEdPECOBGEPHIPepcoDPLACE
Balance as of June 30, 2020$61 $— $22 $7 $6 $26 $11 $7 $8 
Plus: Current period provision for expected credit losses15 — 5 1 3 6 2 1 3 
Less: Write-offs, net of recoveries(a)
1 — — 1 — — — — — 
Balance as of September 30, 2020$75 $— $27 $7 $9 $32 $13 $8 $11 
Nine Months Ended September 30, 2021
ExelonGenerationComEdPECOBGEPHIPepcoDPLACE
Balance as of December 31, 2020$71 $— $21 $8 $9 $33 $13 $9 $11 
Plus: Current period provision for expected credit losses15 4 — 2 2 7 4 (1)4 
Less: Write-offs, net of recoveries(a)
9 — 2 3 3 — — — — 
Balance as of September 30, 2021$77 $4 $19 $7 $8 $40 $17 $8 $15 
Nine Months Ended September 30, 2020
ExelonGenerationComEdPECOBGEPHIPepcoDPLACE
Balance as of December 31, 2019$48 $— $20 $7 $5 $16 $7 $4 $5 
Plus: Current period provision for expected credit losses36 — 9 3 7 17 6 4 7 
Less: Write-offs, net of recoveries(a)
9 — 2 3 3 1 — — 1 
Balance as of September 30, 2020$75 $— $27 $7 $9 $32 $13 $8 $11 
__________
(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 as of September 30, 2021 and December 31, 2020.
Unbilled customer revenues(a)
ExelonGenerationComEdPECOBGEPHIPepcoDPLACE
September 30, 2021$941 $359 $224 $113 $98 $147 $70 $34 $43 
December 31, 2020998 258 218 147 197 178 87 62 29 
__________
(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 had a maximum funding limit of $750 million and was scheduled to expire on April 7, 2021, unless renewed by the mutual consent of the parties in accordance with its terms. The Facility was renewed on March 29, 2021. The Facility term was extended through March 29, 2024, unless further renewed by the mutual consent of the parties, and the maximum funding limit was increased to $900 million. 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 in Exelon’s and Generation’s Consolidated Balance Sheets.
The Facility requires the balance of eligible receivables to be maintained at or above the balance of cash proceeds received from the Purchasers. To the extent the eligible receivables decrease below such balance, Generation is required to repay cash to the Purchasers. When eligible receivables exceed cash proceeds, Generation has the ability to increase the cash received up to the maximum funding limit. These cash inflows and outflows impact the DPP.
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.
During the first quarter of 2021, Generation received additional cash of $250 million from the Purchasers for the remaining available funding in the Facility.
Additionally, during the first quarter of 2021, Generation received cash of approximately $150 million from the Purchasers in connection with the increased funding limit at the time of the Facility renewal.
During the second quarter of 2021, Generation returned cash of $50 million to the Purchasers due to the eligible receivables decreasing temporarily. Subsequently, in the second quarter, Generation received cash of $50 million from the Purchasers as a result of an increase in the eligible receivable balance. The $50 million cash outflow and inflow is included in the Collection of DPP line within Cash flows from investing activities in Exelon’s and Generation’s Consolidated Statements of Cash Flows.
The following table summarizes the impact of the sale of certain receivables:
September 30, 2021December 31, 2020
Derecognized receivables transferred at fair value$1,401 $1,139 
Cash proceeds received900 500 
DPP501 639 
Three Months Ended September 30,Nine Months Ended September 30,
2021202020212020
Loss on sale of receivables(a)
$1 $8 $26 $23 
__________
(a)Reflected in Operating and maintenance expense in Exelon's and Generation's Consolidated Statements of Operations and Comprehensive Income.
Nine Months Ended September 30,
20212020
Proceeds from new transfers(a)
$4,440 $1,889 
Cash collections received on DPP and reinvested in the Facility(b)
2,652 2,518 
Cash collections reinvested in the Facility7,092 4,407 
__________
(a)Customer accounts receivable sold into the Facility were $7,373 million and $4,515 million for the nine months ended September 30, 2021 and September 30, 2020, respectively.
(b)Does not include the $400 million in cash proceeds received from the Purchasers in the first quarter of 2021.
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 recognizes 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 in the Consolidated Statements of Cash Flows.
See Note 14 — Fair Value of Financial Assets and Liabilities and Note 17 — 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, Delaware, 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.
Nine Months Ended September 30, 2021
ExelonGenerationComEdPECOBGEPHIPepcoDPLACE
Total receivables purchased$2,945 $— $810 $795 $531 $826 $504 $166 $156 
Total receivables sold100 117 — — — — — — — 
Related party transactions:
Receivables purchased from Generation— — — — 17 — — — — 
Receivables sold to the Utility Registrants— 17 — — — — — — — 
Nine Months Ended September 30, 2020
ExelonGenerationComEdPECOBGEPHIPepcoDPLACE
Total receivables purchased$2,698 $— $865 $786 $508 $787 $484 $160 $143 
Total receivables sold542 790 — — — — — — — 
Related party transactions:
Receivables purchased from Generation— — 34 67 75 72 51 13 8 
Receivables sold to the Utility Registrants— 248 — — — — — — —