Segment Information (Exelon, Generation, ComEd, PECO and BGE)

Operating segments for each of the Registrants are determined based on information used by the chief operating decision maker(s) (CODM) in deciding how to evaluate performance and allocate resources at each of the Registrants.

Exelon has nine reportable segments, ComEd, PECO, BGE and Generation’s six power marketing reportable segments consisting of the Mid-Atlantic, Midwest, New England, New York, ERCOT and all other regions not considered individually significant referred to collectively as “Other Regions”; including the South, West and Canada. ComEd, PECO and BGE each represent a single reportable segment; as such, no separate segment information is provided for these Registrants. Exelon’s CODM evaluates the performance of and allocates resources to ComEd, PECO and BGE based on net income and return on equity.

The CODMs for ComEd, PECO, and BGE evaluate performance and allocate resources for their respective companies based on net income and return on equity for ComEd, PECO, and BGE each as single integrated businesses.

The foundation of Generation’s six reportable segments is based on the geographic location of its assets, and is largely representative of the footprints of an ISO / RTO and/or NERC region. Descriptions of each of Generation’s six reportable segments are as follows:


•	Mid-Atlantic represents operations in the eastern half of PJM, which includes Pennsylvania, New Jersey, Maryland, Virginia, West Virginia, Delaware, the District of Columbia and parts of North Carolina.

•

Midwest represents operations in the western half of PJM, which includes portions of Illinois, Indiana, Ohio, Michigan, Kentucky and Tennessee, and the United States footprint of MISO excluding MISO’s Southern Region, which covers all or most of North Dakota, South Dakota, Nebraska, Minnesota, Iowa, Wisconsin, the remaining parts of Illinois, Indiana, Michigan and Ohio not covered by PJM, and parts of Montana, Missouri and Kentucky.


•	New England represents the operations within ISO-NE covering the states of Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island and Vermont.


•	New York represents operations within ISO-NY, which covers the state of New York in its entirety.


•	ERCOT represents operations within Electric Reliability Council of Texas, covering most of the state of Texas.


•	Other Regions not considered individually significant:

◦

South represents operations in the FRCC, MISO’s Southern Region, and the remaining portions of the SERC not included within MISO or PJM, which includes all or most of Florida, Arkansas, Louisiana, Mississippi, Alabama, Georgia, Tennessee, North Carolina, South Carolina and parts of Missouri, Kentucky and Texas. Generation’s South region also includes operations in the SPP, covering Kansas, Oklahoma, most of Nebraska and parts of New Mexico, Texas, Louisiana, Missouri, Mississippi and Arkansas.


◦	West represents operations in the WECC, which includes California ISO, and covers the states of California, Oregon, Washington, Arizona, Nevada, Utah, Idaho, Colorado, and parts of New Mexico, Wyoming and South Dakota.


◦	Canada represents operations across the entire country of Canada and includes the AESO, OIESO and the Canadian portion of MISO.

The CODMs for Exelon and Generation evaluate the performance of Generation’s power marketing activities and allocate resources based on revenue net of purchased power and fuel expense. Generation believes that revenue net of purchased power and fuel expense is a useful measurement of operational performance. Revenue net of purchased power and fuel expense is not a presentation defined under GAAP and may not be comparable to other companies’ presentations or deemed more useful than the GAAP information provided elsewhere in this report. Generation’s operating revenues include all sales to third parties and sales to its affiliates, ComEd, PECO and BGE. Purchased power costs include all costs associated with the procurement and supply of electricity including capacity, energy and ancillary services. Fuel expense includes the fuel costs for Generation’s own generation and fuel costs associated with tolling agreements. Generation's other business activities, including retail and wholesale gas, investments in gas and oil exploration and production activities, proprietary trading, distributed generation, heating, cooling, and cogeneration facilities, and home improvements, sales of electric and gas appliances, servicing of heating, air conditioning, plumbing, electrical, and indoor quality systems, and investments in energy-related proprietary technology are not allocated to regions. Further, Generation’s compensation under the reliability-must-run rate schedule, results of operations from the Brandon Shores, Wagner, and C.P. Crane Maryland generating stations, and other miscellaneous revenues, unrealized mark-to-market impact of economic hedging activities, and amortization of certain intangible assets relating to commodity contracts recorded at fair value are also not allocated to a region. Exelon and Generation do not use a measure of total assets in making decisions regarding allocating resources to or assessing the performance of these reportable segments.

An analysis and reconciliation of the Registrants’ reportable segment information to the respective information in the consolidated financial statements for the years ended December 31, 2014, 2013, and 2012 is as follows:



	Generation ^(a)			ComEd		PECO		BGE ^(b)			Other ^(c)			Intersegment Eliminations			Exelon
Operating revenues^(d):
2014	$	17,393		$	4,564	3,094		$	3,165		$	1,285		$	(2,072	)	$	27,429
2013	15,630			4,464		3,100		3,065			1,241			(2,612		)	24,888
2012	14,437			5,443		3,186		2,091			1,396			(3,064		)	23,489
Intersegment revenues^(e):
2014	$	762		$	4	$	2	$	25		$	1,280		$	(2,067	)	$	6
2013	1,367			3		1		13			1,237			(2,607		)	14
2012	1,660			2		3		9			1,381			(3,049		)	6
Depreciation and amortization
2014	$	967		$	687	$	236	$	371		$	53		$	—		$	2,314
2013	856			669		228		348			52			—			2,153
2012	768			610		217		238			48			—			1,881
Operating expenses ^(d):
2014	$	16,923		$	3,586	$	2,522	$	2,726		$	1,353		$	(2,071	)	$	25,039
2013	13,976			3,510		2,434		2,616			1,324			(2,618		)	21,242
2012	13,226			4,557		2,563		2,053			1,662			(3,043		)	21,018
Equity in earnings (losses) of unconsolidated affiliates
2014	$	(20	)	$	—	$	—	$	—		$	—		$	—		$	(20	)
2013	10			—		—		—			—			—			10
2012	(91		)	—		—		—			—			—			(91		)
Interest expense, net:
2014	$	356		$	321	$	113	$	106		$	169		$	—		$	1,065
2013	357			579		115		122			183			—			1,356
2012	301			307		123		111			86			—			928
Income (loss) before income taxes:
2014	$	1,226		$	676	$	466	$	351		$	(227	)	$	(6	)	$	2,486
2013	1,675			401		557		344			(191		)	(13		)	2,773
2012	1,058			618		508		(54		)	(325		)	(7		)	1,798
Income taxes:
2014	$	207		$	268	$	114	$	140		$	(63	)	$	—		$	666
2013	615			152		162		134			(20		)	1			1,044
2012	500			239		127		(23		)	(215		)	(1		)	627
Net income (loss):
2014	$	1,019		$	408	$	352	$	211		$	(164	)	$	(6	)	$	1,820
2013	1,060			249		395		210			(171		)	(14		)	1,729
2012	558			379		381		(31		)	(110		)	(6		)	1,171
Capital expenditures:
2014	$	3,012		$	1,689	$	661	$	620		$	95		$	—		6,077
2013	2,752			1,433		537		587			86			—			5,395
2012	3,554			1,246		422		500			67			—			5,789
Total assets:
2014	$	45,348		$	25,392	$	9,943	$	8,078		$	9,794		$	(11,741	)	$	86,814
2013	41,232			24,118		9,617		7,861			8,317			(11,221		)	79,924

__________________________

(a)

Generation includes the six power marketing reportable segments shown below: Mid-Atlantic, Midwest, New England, New York, ERCOT and Other Regions. For the year ended December 31, 2014, intersegment revenues for Generation include revenue from sales to PECO of $198 million and sales to BGE of $387 million in the Mid-Atlantic region, and sales to ComEd of $176 million in the Midwest region, which eliminate upon consolidation. For the year ended December 31, 2013, intersegment revenues for Generation include revenue from sales to PECO of $405 million and sales to BGE of $455 million in the Mid-Atlantic region, and sales to ComEd of $506 million in the Midwest region, net of $7 million related to the unrealized mark-to-market losses related to the ComEd swap, which eliminate upon consolidation. For the year ended December 31, 2012, intersegment revenues for Generation include revenue from sales to PECO of $543 million and sales to BGE of $322 million in the Mid-Atlantic region, and sales to ComEd of $795 million in the Midwest region, net of $7 million related to the unrealized mark-to-market losses related to the ComEd swap, which eliminate upon consolidation.


(b)	Amounts represent activity recorded at BGE from March 12, 2012, the closing date of the merger, through December 31, 2014.


(c)	Other primarily includes Exelon’s corporate operations, shared service entities and other financing and investment activities.

(d)

For the years ended December 31, 2014, 2013 and 2012, utility taxes of $89 million, $79 million and $82 million, respectively, are included in revenues and expenses for Generation. For the years ended December 31, 2014, 2013 and 2012, utility taxes of $238 million, $241 million and $239 million, respectively, are included in revenues and expenses for ComEd. For the years ended December 31, 2014, 2013 and 2012, utility taxes of $128 million, $129 million and $141 million, respectively, are included in revenues and expenses for PECO. For the years ended December 31, 2014, December 31, 2013 and for the period of March 12, 2012 through December 31, 2012, utility taxes of $86 million, $82 million and $59 million are included in revenues and expenses for BGE, respectively.

(e)

Intersegment revenues exclude sales to unconsolidated affiliates. The intersegment profit associated with Generation’s sale of certain products and services by and between Exelon’s segments is not eliminated in consolidation due to the recognition of intersegment profit in accordance with regulatory accounting guidance. For Exelon, these amounts are included in operating revenues in the Consolidated Statements of Operations and Comprehensive Income.

Generation total revenues:

As of April 1, 2014, Generation total revenues and Generation total revenues net of purchased power and fuel expense includes 100% of the activity from CENG.



	2014							2013							2012
	Revenues from external customers ^(a)		Intersegment revenues			Total Revenues		Revenues from external customers ^(a)		Intersegment revenues			Total Revenues		Revenues from external customers ^(a)		Intersegment revenues			Total Revenues
Mid-Atlantic	$	5,265	$	(6	)	$	5,259	$	5,182	$	22		$	5,204	$	5,082	$	(44	)	$	5,038
Midwest	4,467		8			4,475		4,280		(10		)	4,270		4,824		24			4,848
New England	1,417		5			1,422		1,245		(8		)	1,237		1,048		45			1,093
New York	843		—			843		735		(21		)	714		582		(25		)	557
ERCOT	938		(3		)	935		1,222		(6		)	1,216		1,365		2			1,367
Other Regions ^(b)	1,319		(10		)	1,309		946		22			968		755		78			833
Total Revenues for Reportable Segments	$	14,249	$	(6	)	$	14,243	$	13,610	$	(1	)	$	13,609	$	13,656	$	80		$	13,736
Other ^(c)	3,144		6			3,150		2,020		1			2,021		781		(80		)	701
Total Generation Consolidated Operating Revenues	$	17,393	$	—		$	17,393	$	15,630	$	—		$	15,630	$	14,437	$	—		$	14,437

_______________________


(a)	Includes all electric sales to third parties and affiliated sales to ComEd, PECO and BGE.


(b)	Other regions include the South, West and Canada, which are not considered individually significant.


(c)	Other represents activities not allocated to a region. See text above for a description of included activities. Also includes amortization of intangible assets related to commodity contracts recorded at fair value of $289 million, $767 million, and $1,505 million for the years ended December 31, 2014, 2013, and 2012, respectively, and elimination of intersegment revenues.

Generation total revenues net of purchased power and fuel expense:



	2014									2013								2012
	RNF from external customers ^(a)			Intersegment RNF			Total RNF			RNF from external customers ^(a)		Intersegment RNF			Total RNF			RNF from external customers ^(a)		Intersegment RNF			Total RNF
Mid-Atlantic	$	3,466		$	(49	)	$	3,417		$	3,273	$	(3	)	$	3,270		$	3,477	$	(44	)	$	3,433
Midwest	2,580			14			2,594			2,585		1			2,586			2,974		24			2,998
New England	432			(81		)	351			217		(32		)	185			151		45			196
New York	457			26			483			14		(18		)	(4		)	101		(25		)	76
ERCOT	573			(256		)	317			604		(168		)	436			403		2			405
Other Regions ^(b)	611			(284		)	327			334		(133		)	201			53		78			131
Total Revenues net of purchased power and fuel expense for Reportable Segments	$	8,119		$	(630	)	$	7,489		$	7,027	$	(353	)	$	6,674		$	7,159	$	80		$	7,239
Other ^(c)	(651		)	630			(21		)	406		353			759			217		(80		)	137
Total Generation Revenues net of purchased power and fuel expense	$	7,468		$	—		$	7,468		$	7,433	$	—		$	7,433		$	7,376	$	—		$	7,376

____________________________


(a)	Includes purchases and sales from third parties and affiliated sales to ComEd, PECO and BGE.


(b)	Other regions include the South, West and Canada, which are not considered individually significant.

(c)

Other represents activities not allocated to a region. See text above for a description of included activities. Also includes amortization of intangible assets related to commodity contracts recorded at fair value of $124 million, $488 million, and $1,098 million, for the years ended December 31, 2014, 2013, and 2012, respectively, and the elimination of intersegment revenue net of purchased power and fuel expense.