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Regulatory Matters (Tables)
 12 Months Ended
Dec. 31, 2023
Public Utilities, General Disclosures [Line Items]  
Public Utilities Distribution Rate Cases [Table Text Block]
The following tables show the completed and pending distribution base rate case proceedings in 2023.
Completed Distribution Base Rate Case Proceedings
Registrant/JurisdictionFiling DateServiceRequested Revenue Requirement Increase Approved Revenue Requirement Increase Approved ROEApproval DateRate Effective Date
ComEd - Illinois
April 15, 2022(a)
Electric$199 $199 7.85%November 17, 2022January 1, 2023
January 17, 2023(b)
Electric$1,487 $501 8.905%December 14, 2023January 1, 2024
April 21, 2023(c)
Electric$247 $259 8.91%November 30, 2023January 1, 2024
PECO - PennsylvaniaMarch 31, 2022Natural Gas$82 $55 
N/A(d)
October 27, 2022January 1, 2023
BGE - Maryland
May 15, 2020 (amended September 11, 2020)(e)
Electric$203 $140 9.50%December 16, 2020January 1, 2021
Natural Gas$108 $74 9.65%
February 17, 2023(f)
Electric$313 $179 9.50%December 14, 2023January 1, 2024
Natural Gas$289 $229 9.45%
Pepco - Maryland(g)
October 26, 2020 (amended March 31, 2021)Electric$104 $52 9.55%June 28, 2021June 28, 2021
DPL - Maryland(h)
May 19, 2022Electric$38 $29 9.60%December 14, 2022January 1, 2023
ACE - New Jersey(i)
February 15, 2023 (amended August 21, 2023)Electric$92 $45 9.60%November 17, 2023December 1, 2023
__________
(a)ComEd’s 2023 approved revenue requirement above reflects an increase of $144 million for the initial year revenue requirement for 2023 and an increase of $55 million related to the annual reconciliation for 2021. The revenue requirement for 2023 provides for a weighted average debt and equity return on distribution rate base of 5.94% inclusive of an allowed ROE of 7.85%, reflecting the monthly average yields for 30-year treasury bonds plus 580 basis points. The reconciliation revenue requirement for 2021 provides for a weighted average debt and equity return on distribution rate base of 5.91%, inclusive of an allowed ROE of 7.78%, reflecting the monthly yields on 30-year treasury bonds plus 580 basis points less a performance metrics penalty of 7 basis points. ComEd's last performance-based electric distribution formula rate update filing under EIMA was completed in 2022. See discussion of CEJA below for details on the transition away from the electric distribution formula rate.
(b)Reflects a four-year cumulative multi-year rate plan for January 1, 2024 to December 31, 2027. On December 14, 2023, the ICC approved year-over-year distribution revenue requirement increases in 2024-2027, with an amendatory order on January 10, 2024, of approximately $451 million effective January 1, 2024, $14 million effective January 1, 2025, $6 million effective January 1, 2026, and $30 million effective January 1, 2027, based on an ROE of 8.905%, an equity ratio of 50%, and year end 2022 rate base. The ICC rejected ComEd’s Grid Plan, requiring ComEd to file a revised Grid Plan by March 13, 2024, 90 days after the issuance of the December final order. The ICC also directed that the revised Grid Plan would be reviewed through further formal proceedings in that docket. On January 10, 2024, the ICC granted one portion of ComEd’s application for rehearing of the December 14, 2023 final order, and directing that a 150-day rehearing process reconsider the revenue requirements for the test years (2024-2027), absent an approved Grid Plan. On January 31,2024, the ICC further clarified the scope of the rehearing process. ComEd anticipates that the revenue requirements determined during the rehearing process will be further updated upon approval of a revised Grid Plan. On January 10, 2024, ComEd also filed with the Illinois appellate court an appeal of various aspects of the ICC’s final order on which rehearing was denied, including the 8.905% ROE, 50% equity ratio, and denial of any return on ComEd’s pension asset.
(c)On November 30, 2023, the Delivery Reconciliation Amount for 2022 defined in Rider Delivery Service Pricing Reconciliation (Rider DSPR) was approved. The delivery reconciliation amount allows for the reconciliation of the revenue requirement in effect in the final years in which formula rates are determined and until such time as new rates are established under ComEd’s approved MRP. The 2023 filing reconciled the delivery service rates in effect in 2022 with the actual delivery service costs incurred in 2022. The reconciliation revenue requirement provides for a weighted average debt and equity return on distribution rate base of 6.48%, inclusive of an allowed ROE of 8.91%, reflecting the monthly yields on 30-year treasury bonds plus 580 basis points.
(d)The PECO electric and natural gas base rate case proceedings were resolved through settlement agreements, which did not specify an approved ROE.
(e)Reflects a three-year cumulative multi-year plan for 2021 through 2023. BGE proposed to use certain tax benefits to fully offset the increases in 2021 and 2022 and partially offset the increase in 2023. The MDPSC awarded BGE electric revenue requirement increases of $59 million, $39 million, and $42 million, before offsets, in 2021, 2022, and 2023, respectively, and natural gas revenue requirement increases of $53 million, $11 million, and $10 million, before offsets, in 2021, 2022, and 2023, respectively. However, the MDPSC utilized the tax benefits to fully offset the increases in 2021 and January 2022 such that customer rates remained unchanged. For the remainder of 2022, the MDPSC chose to offset only 25% of the cumulative 2021 and 2022 electric revenue requirement increases and 50% of the cumulative gas revenue requirement increases. In 2021, the MDPSC deferred a decision on whether to use certain tax benefits to offset the revenue requirement increases in 2023 and directed BGE to make another proposal at the end of 2022. In September 2022, BGE proposed that tax benefits not be used to offset the 2023 revenue requirement increases. On October 26, 2022, the MDPSC accepted BGE's recommendation to not use tax benefits to offset the 2023 revenue requirement increases.
(f)Reflects a three-year cumulative multi-year plan for January 1, 2024 through December 31, 2026. The MDPSC awarded BGE electric revenue requirement increases of $41 million, $113 million, and $25 million in 2024, 2025, and 2026, respectively, and natural gas revenue requirement increases of $126 million, $62 million, and $41 million in 2024, 2025, and 2026, respectively. Requested revenue requirement increases will be used to recover capital investments designed to increase the resilience of the electric and gas distribution systems and support Maryland's climate and regulatory initiatives. The MDPSC also approved a portion of the requested 2021 and 2022 reconciliation amounts, which will be recovered through separate electric and gas riders starting in 2024. As such, the reconciliation amounts are not included in the approved revenue requirement increases. The 2021 reconciliation amounts are $13 million and $7 million for electric and gas, respectively, and the 2022 reconciliation amounts are $39 million and $15 million for electric and gas, respectively.
(g)Reflects a three-year cumulative multi-year plan for April 1, 2021 through March 31, 2024. The MDPSC awarded Pepco electric incremental revenue requirement increases of $21 million, $16 million, and $15 million, before offsets, for the 12-month periods ending March 31, 2022, 2023, and 2024, respectively. Pepco proposed to utilize certain tax benefits to fully offset the increase through 2023 and partially offset customer rate increases in 2024. However, the MDPSC only utilized the acceleration of refunds for certain tax benefits to fully offset the increases such that customer rates remain unchanged through March 31, 2022. On February 23, 2022, the MDPSC chose to offset 25% of the cumulative revenue requirement increase through March 31, 2023. In 2021, the MDPSC deferred a decision on whether to use certain tax benefits to offset the revenue requirement increases for the 12-month period ending March 31, 2024. In December 2022 Pepco proposed that tax benefits not be used to offset the revenue requirement increases for this period. On January 25, 2023, the MDPSC accepted Pepco’s recommendations not to use tax benefits to offset revenue requirement increases for the 12-month period ending March 31, 2024.
(h)Reflects a three-year cumulative multi-year plan for January 1, 2023 through December 31, 2025. The MDPSC awarded DPL electric incremental revenue requirement increases of $17 million, $6 million, and $6 million for 2023, 2024, and 2025, respectively.
(i)Requested and approved increases are before New Jersey sales and use tax. The NJBPU awarded ACE electric revenue requirement increases of $36 million and $9 million effective December 1, 2023 and February 1, 2024, respectively.
Pending Distribution Base Rate Case Proceedings
Registrant/JurisdictionFiling DateServiceRequested Revenue Requirement IncreaseRequested ROEExpected Approval Timing
Pepco - District of Columbia(a)
April 13, 2023Electric$191 10.50%Third quarter of 2024
Pepco - Maryland(b)
May 16, 2023 (amended January 26, 2024)Electric$188 10.50%Second quarter of 2024
DPL - Delaware(c)
December 15, 2022 (amended September 29, 2023)Electric$39 10.50%Second quarter of 2024
__________
(a)Reflects a three-year cumulative multi-year plan for January 1, 2024 through December 31, 2026 submitted to the DCPSC. Pepco requested total electric revenue requirement increases of $117 million, $37 million, and $37 million in 2024, 2025 and 2026, respectively. Requested revenue requirement increases will be used to recover capital investments designed to advance system-readiness and support the District of Columbia’s climate and clean energy goals.
(b)Reflects a three-year cumulative multi-year plan for April 1, 2024 through March 31, 2027 submitted to the MDPSC. Pepco requested total electric revenue requirement increases of $69 million, $54 million and $51 million effective April 1, 2024, April 1, 2025, and April 1, 2026, respectively through its rebuttal filing made on January 26, 2024. The plan contains a proposed nine-month extension period with a requested revenue requirement increase of $14 million effective April 1, 2027 through December 31, 2027. Requested revenue requirement increases will be used to recover capital investments designed to advance system-readiness and support Maryland's climate and clean energy goals. On August 7, 2023, the MDPSC issued an order approving a settlement agreement which allows Pepco to establish a revenue deferral mechanism to recover its full Commission-authorized year 1 increase between July 1, 2024 through March 31, 2025 and extend the procedural schedule to address intervenor resource constraints.
(c)The rates went into effect on July 15, 2023, subject to refund.
Public Utilities Transmission Rate Filings [Table Text Block]
For 2023, the following total increases/(decreases) were included in the Utility Registrants' electric transmission formula rate updates:
Registrant(a)
Initial Revenue Requirement IncreaseAnnual Reconciliation Increase (Decrease)Total Revenue Requirement Increase
Allowed Return on Rate Base(b)
Allowed ROE(c)
ComEd$20 $63 $83 8.09 %11.50 %
PECO$24 $23 $47 7.41 %10.35 %
BGE$19 $(12)$4 (d)7.34 %10.50 %
Pepco$37 $(5)$32 7.57 %10.50 %
DPL$32 $(3)$29 7.08 %10.50 %
ACE$41 $(12)$29 7.08 %10.50 %
__________
(a)All rates are effective June 1, 2023 - May 31, 2024, subject to review by interested parties pursuant to review protocols of each Utility Registrants' tariff.
(b)Represents the weighted average debt and equity return on transmission rate bases. For ComEd and PECO, the common equity component of the ratio used to calculate the weighted average debt and equity return on the transmission formula rate base is currently capped at 55% and 55.75%, respectively.
(c)The rate of return on common equity for each Utility Registrant includes a 50-basis-point incentive adder for being a member of a RTO.
(d)The increase in BGE's transmission revenue requirement includes a $3 million reduction related to a FERC-approved dedicated facilities charge to recover the costs of providing transmission service to specifically designated load by BGE.
Public Utilities Energy Efficiency Revenue [Table Text Block]
During 2023, the ICC approved the following total increases in ComEd's requested energy efficiency revenue requirement:
Filing DateRequested Revenue Requirement Increase
Approved Revenue Requirement Increase(a)
Approved ROEApproval DateRate Effective Date
May 26, 2023$118 $118 8.91 %November 30, 2023January 1, 2024
_________
(a)ComEd's 2024 approved revenue requirement above reflects an increase of $71 million for the initial year revenue requirement for 2024 and a increase of $47 million related to the annual reconciliation for 2022. The revenue requirement for 2024 provides for a weighted average debt and equity return on the energy efficiency regulatory asset and rate base of 6.48% inclusive of an allowed ROE of 8.91%, reflecting the monthly average yields for 30-year treasury bonds plus 580 basis points. The revenue requirement for the 2022 reconciliation year provides for a weighted average debt and equity return on the energy efficiency regulatory asset and rate base of 7.47% inclusive of an allowed ROE of 10.89%, which includes an upward performance adjustment that increased the ROE. The performance adjustment can either increase or decrease the ROE based upon the achievement of energy efficiency savings goals. See table below for ComEd's regulatory assets associated with its energy efficiency formula rate.
Capitalized Ratemaking Amounts Not Recognized [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 the Registrants' 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 the Utility Registrants' customers. PECO had no related amounts at December 31, 2023 and December 31, 2022
Exelon
ComEd(a)
BGE(b)
PHI
Pepco(c)
DPL(c)
ACE(d)
December 31, 2023$110 $32 $33 $45 $34 $1 $10 
December 31, 202257 8 28 21 18 2 1 
__________
(a)Reflects ComEd's unrecognized equity returns earned for ratemaking purposes on its energy efficiency and electric distribution formula rate regulatory assets.
(b)BGE's amount capitalized for ratemaking purposes primarily relates to earnings on shareholders' investment on their AMI programs and on investments in rate base included in the multi-year plan reconciliations.
(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, and for Pepco District of Columbia revenue decoupling program. The earnings on energy efficiency are on Pepco District of Columbia and DPL Delaware programs only.
(d)ACE's authorized amounts capitalized for ratemaking purposes primarily relate to earnings on shareholders' investment on AMI programs.
Regulatory assets 2022 [Member]  
Public Utilities, General Disclosures [Line Items]  
Schedule of Regulatory Assets
December 31, 2022ExelonComEdPECOBGEPHIPepcoDPLACE
Regulatory assets
AMI programs - deployment costs$122 $— $— $69 $53 $25 $22 $6 
AMI programs - legacy meters160 48 — 20 92 53 17 22 
Asset retirement obligations151 99 22 21 9 6 2 1 
Carbon mitigation credit843 843 — — — — — — 
COVID-1958 20 17 8 13 10 3 — 
DC PLUG charge37 — — — 37 37 — — 
Deferred income taxes606 — 595 — 11 11 — — 
Deferred storm costs90 — — 55 35 2 2 31 
Electric distribution formula rate annual reconciliations271 271 — — — — — — 
Electric distribution formula rate significant one-time events115 115 — — — — — — 
Electric energy and natural gas costs241 — 15 25 201 41 26 134 
Energy efficiency and demand response programs560 — — 286 274 187 74 13 
Energy efficiency costs1,434 1,434 — — — — — — 
Fair value of long-term debt521 — — — 414 — — — 
Fair value of PHI's unamortized energy contracts44 — — — 44 — — — 
MGP remediation costs318 293 13 12 — — — — 
Pension and OPEB1,867 — — — — — — — 
Pension and OPEB - merger related769 — — — — — — — 
Removal costs782 — — 171 611 144 109 359 
Renewable energy85 85 — — — — — — 
Transmission formula rate annual reconciliations37 — 16 — 21 3 5 13 
Under-recovered credit loss expense 71 38 — — 33 — — 33 
Under-recovered revenue decoupling106 — — 8 98 98 — — 
Universal service fund charge under-recovery - Electric19 — 19 — — — — — 
Other371 196 35 29 119 55 22 12 
Total regulatory assets9,678 3,442 732 704 2,065 672 282 624 
        Less: current portion1,641 775 80 177 455 235 80 130 
Total noncurrent regulatory assets$8,037 $2,667 $652 $527 $1,610 $437 $202 $494 
Regulatory assets 2023 [Member]  
Public Utilities, General Disclosures [Line Items]  
Schedule of Regulatory Assets
The following tables provide information about the regulatory assets and liabilities of the Registrants at December 31, 2023 and 2022:
December 31, 2023ExelonComEdPECOBGEPHIPepcoDPLACE
Regulatory assets
AMI programs - deployment costs$109 $— $— $49 $60 $18 $17 $25 
AMI programs - legacy meters127 28 — 12 87 41 14 32 
Asset retirement obligations159 104 22 23 10 6 2 2 
Carbon mitigation credit673 673 — — — — — — 
COVID-1941 11 11 6 13 10 3 — 
DC PLUG charge3 — — — 3 3 — — 
Deferred income taxes759 — 748 — 11 11 — — 
Deferred storm costs114 — — 84 30 9 2 19 
Electric distribution formula rate annual reconciliations787 787 — — — — — — 
Electric distribution formula rate significant one-time events89 89 — — — — — — 
Electric energy and natural gas costs98 — 1 25 72 11 2 59 
Energy efficiency and demand response programs631 — 23 316 292 187 73 32 
Energy efficiency costs1,691 1,691 — — — — — — 
Fair value of long-term debt486 — — — 385 — — — 
Fair value of PHI's unamortized energy contracts35 — — — 35 — — — 
MGP remediation costs315 286 15 14 — — — — 
Multi-year plan reconciliations112 — — 112 — — — — 
Pension and OPEB2,254 — — — — — — — 
Pension and OPEB - merger related637 — — — — — — — 
Removal costs827 — — 219 608 137 118 354 
Renewable energy134 134 — — — — — — 
Transmission formula rate annual reconciliations75 — 9 5 61 15 22 24 
Under-recovered credit loss expense112 78 — — 34 — — 34 
Under-recovered revenue decoupling176 — — 64 112 100 — 12 
Universal service fund charge under-recovery - Electric59 — 59 — — — — — 
Zero emission credit58 58 — — — — — — 
Other352 190 32 27 111 52 19 15 
Total regulatory assets10,913 4,129 920 956 1,924 600 272 608 
        Less: current portion2,215 1,335 127 229 337 150 54 125 
Total noncurrent regulatory assets$8,698 $2,794 $793 $727 $1,587 $450 $218 $483 
Regulatory liabilities 2022 [Member]  
Public Utilities, General Disclosures [Line Items]  
Schedule of Regulatory Liabilities
December 31, 2022ExelonComEdPECOBGEPHIPepcoDPLACE
Regulatory liabilities
Decommissioning the Regulatory Agreement Units$2,897 $2,660 $237 $— $— $— $— $— 
Dedicated facilities charge110 — — 110 — — — — 
Deferred income taxes3,546 2,010 — 682 854 402 304 148 
Electric energy and natural gas costs87 11 65 4 7 — 7 — 
Energy efficiency and demand response programs15 — 15 — — — — — 
Multi-year plan reconciliations14 — — — 14 14 — — 
Over-recovered revenue decoupling19 — — 4 15 — 6 9 
Removal costs1,750 1,604 — 35 111 20 91 — 
Renewable portfolio standards costs810 810 — — — — — — 
Stranded costs9 — — — 9 — — 9 
Transmission formula rate annual reconciliations31 3 — 18 10 9 1 — 
Other261 41 28 10 67 16 15 16 
Total regulatory liabilities9,549 7,139 345 863 1,087 461 424 182 
        Less: current portion437 226 75 47 76 6 44 26 
Total noncurrent regulatory liabilities$9,112 $6,913 $270 $816 $1,011 $455 $380 $156 
Regulatory liabilities 2023 [Member]  
Public Utilities, General Disclosures [Line Items]  
Schedule of Regulatory Liabilities
December 31, 2023ExelonComEdPECOBGEPHIPepcoDPLACE
Regulatory liabilities
Decommissioning the Regulatory Agreement Units$3,232 $2,954 $278 $— $— $— $— $— 
Dedicated facilities charge129 — — 129 — — — — 
Deferred income taxes3,284 1,900 — 634 750 338 274 138 
Electric energy and natural gas costs121 4 93 — 24 9 15 — 
Energy efficiency and demand response programs1 — 1 — — — — — 
Multi-year plan reconciliations23 — — — 23 16 7 — 
Over-recovered revenue decoupling2 — — — 2 — 2 — 
Removal costs1,845 1,701 — 28 116 20 96 — 
Renewable portfolio standards costs1,102 1,102 — — — — — — 
Other226 23 34 9 60 14 21 8 
Total regulatory liabilities9,965 7,684 406 800 975 397 415 146 
        Less: current portion389 191 92 27 71 15 50 6 
Total noncurrent regulatory liabilities$9,576 $7,493 $314 $773 $904 $382 $365 $140