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Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
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, 2022
 ExelonComEdPECOBGEPHIPepcoDPLACE
Included in operations:
Federal
Current$(24)$29 $13 $(1)$16 $9 $(2)$6 
Deferred106 117 18 (3)(23)(2)2 (15)
Investment tax credit amortization(3)(1)— — (1)— — — 
State
Current(13)(6)(4)— 2 — — — 
Deferred283 125 52 12 15 (16)14 12 
Total$349 $264 $79 $8 $9 $(9)$14 $3 
For the Year Ended December 31, 2021
 ExelonComEdPECOBGEPHIPepcoDPLACE
Included in operations:
Federal
Current$(152)$(30)$1 $(18)$18 $22 $2 $1 
Deferred89 113 20 34 (52)(17)(14)(26)
Investment tax credit amortization(2)(1)— — (1)— — — 
State
Current(46)(41)— — — 1 1 — 
Deferred149 131 (9)(51)77 9 53 12 
Total$38 $172 $12 $(35)$42 $15 $42 $(13)
For the Year Ended December 31, 2020
 ExelonComEdPECOBGEPHIPepcoDPLACE
Included in operations:
Federal
Current$(180)$(24)$(7)$4 $25 $40 $(13)$(4)
Deferred10 112 1 10 (129)(62)(20)(43)
Investment tax credit amortization(3)(2)— — (1)— — — 
State
Current(37)(27)— — (5)— — — 
Deferred203 118 (24)27 33 15 8 6 
Total$(7)$177 $(30)$41 $(77)$(7)$(25)$(41)
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, 2022(a)
ExelonComEd
PECO(b)
BGE(b)
PHI(b)
Pepco(b)
DPL(b)
ACE(b)
U.S. federal statutory rate21.0 %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(c)
8.8 8.0 5.8 2.6 2.1 (4.1)6.5 6.9 
Plant basis differences(4.1)(0.6)(11.9)(1.0)(1.7)(2.7)(0.7)(0.7)
Excess deferred tax amortization(11.8)(5.6)(3.0)(19.8)(19.5)(16.8)(18.4)(24.5)
Amortization of investment tax credit, including deferred taxes on basis differences(0.1)(0.1)— (0.1)(0.1)— (0.2)(0.2)
Tax credits(d)
0.1 (0.3)— (0.7)(0.7)(0.7)(0.6)(0.5)
Other(e)
0.6 — 0.2 0.1 0.4 0.3 0.1 — 
Effective income tax rate14.5 %22.4 %12.1 %2.1 %1.5 %(3.0)%7.7 %2.0 %
For the Year Ended December 31, 2021(a)
ExelonComEd
PECO(f)
BGE(f)
PHI
Pepco(f)
DPL(f)
ACE(f)
U.S. federal statutory rate21.0 %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 benefit5.0 7.8 (1.4)(10.8)10.1 2.7 25.0 7.4 
Plant basis differences(5.4)(0.8)(13.6)(1.7)(1.1)(1.6)(0.8)(0.2)
Excess deferred tax amortization(17.2)(7.6)(3.8)(16.3)(22.4)(16.4)(20.0)(37.1)
Amortization of investment tax credit, including deferred taxes on basis differences(0.1)(0.1)— (0.1)(0.1)— (0.2)(0.2)
Tax credits(0.7)(0.5)— (0.9)(0.5)(0.5)(0.4)(0.5)
Other(0.3)(1.0)0.1 (0.6)— (0.4)0.1 (0.2)
Effective income tax rate2.3 %18.8 %2.3 %(9.4)%7.0 %4.8 %24.7 %(9.8)%
For the Year Ended December 31, 2020(a)
Exelon
ComEd(g)
PECO(g)
BGE(h)
PHI(h)
Pepco(h)
DPL(h)
ACE(h)
U.S. federal statutory rate21.0 %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 benefit11.9 11.6 (4.5)5.5 5.1 4.5 6.6 7.0 
Plant basis differences(8.6)(0.6)(18.7)(1.5)(1.6)(1.7)(0.4)(3.0)
Excess deferred tax amortization(29.1)(11.2)(4.6)(13.9)(42.0)(25.4)(51.7)(82.1)
Amortization of investment tax credit, including deferred taxes on basis differences(0.3)(0.3)— (0.1)(0.2)(0.1)(0.3)(0.5)
Tax credits(0.5)(0.3)— (0.4)(0.3)(0.3)(0.3)(0.5)
Deferred Prosecution Agreement payments3.8 6.8 — — — — — — 
Other1.2 1.8 (0.4)(0.1)(0.4)(0.7)0.1 0.4 
Effective income tax rate(0.6)%28.8 %(7.2)%10.5 %(18.4)%(2.7)%(25.0)%(57.7)%
__________
(a)Positive percentages represent income tax expense. Negative percentages represent income tax benefit.
(b)For PECO, the lower effective tax rate is primarily related to plant basis differences attributable to tax repair deductions partially offset by higher state income taxes, net of federal income tax benefit, related to a one-time expense of $38 million attributable to the change in the Pennsylvania corporate income tax rate. For BGE, PHI, Pepco, DPL, and ACE, the lower effective tax rate is primarily related to the acceleration of certain income tax benefits due to distribution and transmission rate case settlements.
(c)For Exelon, the higher state income taxes, net of federal income tax benefit, is primarily due to the long-term marginal state income tax rate change of $67 million and the recognition of a valuation allowance of $40 million against the net deferred tax asset position for certain standalone state filing jurisdictions, partially offset by a one-time impact associated with a state tax benefit of $43 million and indemnification adjustments pursuant to the Tax Matters Agreement of $11 million as a result of the separation. For PECO, the higher state income taxes, net of federal income tax benefit, related to a one-time expense of $38 million attributable to the change in the Pennsylvania corporate income tax rate.
(d)For Exelon, reflects the income tax expense related to the write-off of federal tax credits subject to recapture of $15 million as a result of the separation.
(e)For Exelon, reflects the nondeductible transaction costs of approximately $12 million arising as part of the separation and indemnification adjustments pursuant to the Tax Matters Agreement of $9 million.
(f)For PECO, the lower effective tax rate is primarily related to plant basis differences attributable to tax repair deductions. 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. For Pepco, the lower effective tax rate is primarily related to the acceleration of certain income tax benefits due to distribution and transmission rate case settlements. For DPL, the higher effective tax rate is primarily related to a state income tax expense, net of federal income tax benefit, due to the recognition of a valuation allowance of approximately $31 million against a deferred tax asset associated with Delaware net operating loss carryforwards as a result of a change in Delaware tax law. For ACE, the income tax benefit is primarily due to a distribution rate case settlement which allows ACE to retain certain tax benefits.
(g)For ComEd, the higher effective tax rate is primarily related to the nondeductible DPA payments. For PECO, the negative effective tax rate is primarily related to an increase in plant basis differences attributable to tax repair deductions related to an increase in storms and qualifying projects in 2021.
(h)For BGE, PHI, Pepco, DPL, and ACE, the income tax benefit is primarily attributable to accelerated amortization of transmission related deferred income tax regulatory liabilities as a result of regulatory settlements. See Note 3 — Regulatory Matters for additional information.
Tax Effects of Temporary Differences
The tax effects of temporary differences and carryforwards, which give rise to significant portions of the deferred tax assets (liabilities), as of December 31, 2022 and 2021 are presented below:
As of December 31, 2022
ExelonComEdPECOBGEPHIPepcoDPLACE
Plant basis differences$(12,130)$(4,823)$(2,119)$(1,949)$(3,131)$(1,394)$(906)$(813)
Accrual based contracts10 — — — 10 — — — 
Derivatives and other financial instruments26 23 — — 2 — — — 
Deferred pension and postretirement obligation551 (300)(31)(31)(80)(76)(39)(3)
Deferred debt refinancing costs132 (5)— (2)111 (4)(2)(1)
Regulatory assets and liabilities(1,107)(131)(169)57 (50)7 43 11 
Tax loss carryforward, net of valuation allowances250 — 33 72 71 3 20 46 
Tax credit carryforward468 — — — — — — — 
Investment in partnerships(21)— — — — — — — 
Other, net591 223 73 23 182 83 16 28 
Deferred income tax liabilities (net)$(11,230)$(5,013)$(2,213)$(1,830)$(2,885)$(1,381)$(868)$(732)
Unamortized investment tax credits(14)(8)— (2)(4)(1)(1)(2)
Total deferred income tax liabilities (net) and unamortized investment tax credits$(11,244)$(5,021)$(2,213)$(1,832)$(2,889)$(1,382)$(869)$(734)
As of December 31, 2021
ExelonComEdPECOBGEPHIPepcoDPLACE
Plant basis differences$(11,606)$(4,648)$(2,271)$(1,826)$(2,976)$(1,321)$(853)$(777)
Accrual based contracts56 — — — 56 — — — 
Derivatives and other financial instruments63 61 — — 2 — — — 
Deferred pension and postretirement obligation641 (308)(32)(37)(90)(76)(40)(6)
Deferred debt refinancing costs146 (6)— (2)123 (2)(1)(1)
Regulatory assets and liabilities(1,130)8 (280)92 (53)24 55 31 
Tax loss carryforward, net of valuation allowances242 — 65 68 64 2 18 42 
Tax credit carryforward584 — — — — — — — 
Investment in partnerships(21)— — — — — — — 
Other, net449 216 97 21 212 99 19 34 
Deferred income tax liabilities (net)$(10,576)$(4,677)$(2,421)$(1,684)$(2,662)$(1,274)$(802)$(677)
Unamortized investment tax credits(15)(8)— (2)(5)(1)(1)(2)
Total deferred income tax liabilities (net) and
unamortized investment tax credits		$(10,591)$(4,685)$(2,421)$(1,686)$(2,667)$(1,275)$(803)$(679)
Summary of Loss Carryforwards
The following table provides Exelon’s, PECO’s, BGE’s, PHI’s, Pepco’s, DPL’s, and ACE’s carryforwards, of which the state related items are presented on a post-apportioned basis, as well as, any corresponding valuation allowances as of December 31, 2022. ComEd does not have net operating losses or credit carryforwards for the year ended December 31, 2022.
ExelonPECOBGEPHIPepcoDPLACE
Federal
Federal general business credits carryforwards(a)
$468 $— $— $— $— $— $— 
State
State net operating loss carryforwards4,991 970 1,142 1,501 50 768 651 
Deferred taxes on state tax attributes (net of federal taxes)307 37 72 104 3 52 46 
Valuation allowance on state tax attributes (net of federal taxes)(b)
57 4 — 33 — 32 — 
Year in which net operating loss or credit carryforwards will begin to expire(c)
2035203220332029N/A20322031
__________
(a)For Exelon, the federal general business credit carryforward will begin expiring in 2035.
(b)For Exelon, a full valuation allowance has been recorded against certain separate company state net operating loss carryforwards that are expected to expire before realization. For PECO, a valuation allowance has been recorded against certain Pennsylvania net operating losses that are expected to expire before realization. For DPL, a full valuation allowance has been recorded against Delaware net operating losses carryforwards due to a change in Delaware tax law.
(c)A portion of Exelon's, BGE's, Pepco's, and DPL's Maryland state net operating loss carryforward have an indefinite carryforward period.
Schedule of Unrecognized Tax Benefits Roll Forward
The following table presents changes in unrecognized tax benefits, for Exelon, PHI, and ACE. ComEd's, PECO's, BGE's, Pepco's, and DPL's amounts are not material.
Exelon(a)
PHIACE
Balance at January 1, 2020$95 $48 $14 
Change to positions that only affect timing6 3 1 
Increases based on tax positions related to 20203 — — 
Increases based on tax positions prior to 202026 1 — 
Decreases based on tax positions prior to 2020(5)— — 
Balance at December 31, 2020125 52 15 
Change to positions that only affect timing13 3 1 
Increases based on tax positions related to 20214 1 — 
Increases based on tax positions prior to 20214 — — 
Decreases based on tax positions prior to 2021(3)— — 
Balance at December 31, 2021143 56 16 
Change to positions that only affect timing(1)1 1 
Increases based on tax positions related to 20223 2 — 
Increases based on tax positions prior to 20223 — — 
Decreases based on tax positions prior to 2022— — — 
Balance at December 31, 2022$148 $59 $17 
______
(a)As of December 31, 2022, Exelon recorded a receivable of $50 million in noncurrent Other assets in the Consolidated Balance Sheet for Constellation’s share of unrecognized tax benefits for periods prior to the separation.
Summary of Positions for which Significant Change in Unrecognized Tax Benefits is Reasonably Possible
The following table presents Exelon's unrecognized tax benefits that, if recognized, would decrease the effective tax rate. The Utility Registrants' amounts are not material.
Exelon
December 31, 2022$90 
December 31, 202177 
December 31, 202073 
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. The Utility Registrants' amounts are not material.
Net interest and penalties receivable as ofExelon
December 31, 2022 (a) (b)
$45 
December 31, 2021 (c)
43 
__________
(a)As of December 31, 2022, the interest receivable balance is not expected to be settled in cash within the next twelve months and is therefore classified as a noncurrent receivable.
(b)As of December 31, 2022, Exelon recorded a receivable of $1 million in noncurrent Other assets in the Consolidated Balance Sheet for Constellation's share of net interest for periods prior to the separation.
(c)As of December 31, 2021, the interest receivable balance is not expected to be settled in cash within the next twelve months and is therefore classified as a noncurrent receivable. In December of 2021, Exelon received a refund of approximately $272 million related to an interest netting refund claim.
Long-Term Marginal State Income Tax Rate The impacts to ComEd, BGE, PHI, Pepco, DPL, and ACE for the years ended December 31, 2022, 2021, and 2020 were not material.
December 31, 2022Exelon
Increase to Deferred Income Tax Liability and Income Tax Expense, Net of Federal Taxes$67 
December 31, 2021
Increase to Deferred Income Tax Liability and Income Tax Expense, Net of Federal Taxes$27 
December 31, 2020
Increase to Deferred Income Tax Liability and Income Tax Expense, Net of Federal Taxes$66 
Allocation of Federal Tax Benefit Under Tax Sharing Agreement The following table presents the allocation of tax benefits from Exelon under the Tax Sharing Agreement, for the year ended December 31, 2022, 2021, and 2020.
ComEdPECOBGEPHIPepcoDPLACE
December 31, 2022(a)
$1 $47 $— $28 $23 $3 $2 
December 31, 2021(b)
1 19 — 17 16 — — 
December 31, 2020(c)
14 17 — 17 8 6 1 
__________
(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)BGE, 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.
(c)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.