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 power regions not considered individually significant and referred to collectively as “Other Power Regions”; which includes activities in 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 Power 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 owned 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, compressed natural gas fueling stations, energy efficiency and cogeneration projects, sales of electric and gas appliances, servicing of heating, air conditioning, plumbing, electrical, indoor quality systems and home improvements, and investments in energy-related proprietary technology are not allocated to regions. Further, Generation’s 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 from prior acquisitions 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 three months ended March 31, 2015 and 2014 is as follows:



	Generation^(a)			ComEd		PECO		BGE		Other^(b)			Intersegment Eliminations			Exelon
Total revenues^(c):
2015	$	5,840		$	1,185	$	985	$	1,036	$	318		$	(534	)	$	8,830
2014	4,390			1,134		993		1,054		290			(624		)	7,237
Intersegment revenues^(d):
2015	$	210		$	1	$	—	$	7	$	316		$	(533	)	$	1
2014	316			1		1		16		290			(623		)	1
Net income (loss):
2015	$	485		$	90	$	139	$	109	$	(84	)	$	(1	)	$	738
2014	(185		)	98		89		88		4			(1		)	93
Total assets:
March 31, 2015	$	45,318		$	25,731	$	10,169	$	8,130	$	10,457		$	(12,414	)	$	87,391
December 31, 2014	45,348			25,392		9,943		8,078		9,794			(11,741		)	86,814

__________

(a)

Generation includes the six power marketing reportable segments shown below: Mid-Atlantic, Midwest, New England, New York, ERCOT and Other Power Regions. Intersegment revenues for Generation for the three months ended March 31, 2015 include revenue from sales to PECO of $63 million and sales to BGE of $138 million in the Mid-Atlantic region, and sales to ComEd of $9 million in the Midwest. For the three months ended March 31, 2014, intersegment revenues for Generation include revenue from sales to PECO of $88 million and sales to BGE of $120 million in the Mid-Atlantic region, and sales to ComEd of $108 million in the Midwest region.


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

(c)

For the three months ended March 31, 2015 and 2014, utility taxes of $27 million and $24 million, respectively, are included in revenues and expenses for Generation. For the three months ended March 31, 2015 and 2014, utility taxes of $62 million and $63 million, respectively, are included in revenues and expenses for ComEd. For the three months ended March 31, 2015 and 2014, utility taxes of $35 million and $35 million, respectively, are included in revenues and expenses for PECO. For the three months ended March 31, 2015 and 2014, utility taxes of $52 million and $20 million, respectively, are included in revenues and expenses for BGE.

(d)

Intersegment revenues exclude sales to unconsolidated affiliates. The intersegment profit associated with the 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:



	Three Months Ended March 31, 2015							Three Months Ended March 31, 2014
	Revenues from external customers^(b)		Intersegment revenues			Total Revenues^(a)		Revenues from external customers^(b)		Intersegment revenues			Total Revenues
Mid-Atlantic	$	1,517	$	(4	)	$	1,513	$	1,441	$	(23	)	$	1,418
Midwest	1,275		1			1,276		1,258		12			1,270
New England	858		1			859		545		4			549
New York	310		—			310		190		(3		)	187
ERCOT	182		(2		)	180		243		—			243
Other Power Regions^(c)	212		2			214		334		7			341
Total Revenues for Reportable Segments	4,354		(2		)	4,352		4,011		(3		)	4,008
Other^(d)	1,486		2			1,488		379		3			382
Total Generation Consolidated Operating Revenues	$	5,840	$	—		$	5,840	$	4,390	$	—		$	4,390

__________


(a)	On April 1, 2014, Generation assumed operational control of CENG's nuclear fleet. As a result, the 2015 financial results include CENG's revenues on a fully consolidated basis.


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


(c)	Other Power Regions include the South, West and Canada, which are not considered individually significant.

(d)

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 $40 million increase to revenues and $93 million decrease to revenues, for the three months ended March 31, 2015 and 2014, respectively, unrealized mark-to-market gains of $154 million and losses of $760 million for the three months ended March 31, 2015 and 2014, respectively, and elimination of intersegment revenues.

Generation total revenues net of purchased power and fuel expense:



	Three Months Ended March 31, 2015								Three Months Ended March 31, 2014
	RNF from external customers^(b)			Intersegment RNF			Total RNF^(a)		RNF from external customers^(b)			Intersegment RNF			Total RNF
Mid-Atlantic	$	784		$	(2	)	$	782	$	784		$	(89	)	$	695
Midwest	701			(1		)	700		530			26			556
New England	177			(19		)	158		154			(18		)	136
New York	174			14			188		(29		)	8			(21		)
ERCOT	88			(33		)	55		155			(72		)	83
Other Power Regions^(c)	99			(53		)	46		150			(45		)	105
Total Revenues net of purchased power and fuel expense for Reportable Segments	2,023		—	(94		)	1,929		1,744			(190		)	1,554
Other^(d)	384			94			478		(711		)	190			(521		)
Total Generation Revenues net of purchased power and fuel expense	$	2,407	—	$	—		$	2,407	$	1,033		$	—		$	1,033

__________


(a)	On April 1, 2014, Generation assumed operational control of CENG's nuclear fleet. As a result, the 2015 financial results include CENG's revenue net of purchased power and fuel expense on a fully consolidated basis.


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


(c)	Other Power Regions include the South, West and Canada, which are not considered individually significant.

(d)

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 $38 million increase to RNF and $42 million decrease to RNF for the three months ended March 31, 2015 and 2014, respectively, unrealized mark-to-market gains of $162 million and losses of $730 million for the three months ended March 31, 2015 and 2014, respectively, and the elimination of intersegment revenue net of purchased power and fuel expense.