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 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, ComEd, PECO and BGE's CODMs evaluate the performance of and allocate resources to ComEd, PECO and BGE based on net income and return on equity.

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:

•

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 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 (RNF) 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 affiliated sales to 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 unrealized mark-to-market impact of economic hedging activities, amortization of certain intangible assets relating to commodity contracts recorded at fair value from mergers and acquisitions and other miscellaneous revenues 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 is as follows:

Three Months Ended June 30, 2015 and 2014



	Generation^(a)		ComEd		PECO		BGE		Other^(b)			Intersegment Eliminations			Exelon
Total revenues^(c):
2015	$	4,232	$	1,148	$	661	$	628	$	340		$	(495	)	$	6,514
2014	3,789		1,128		656		653		329			(531		)	6,024
Intersegment revenues^(d):
2015	$	152	$	1	$	—	$	1	$	340		$	(493	)	$	1
2014	201		—		—		2		328			(531		)	—
Net income (loss):
2015	$	390	$	99	$	70	$	47	$	28		$	(1	)	$	633
2014	372		111		84		19		(29		)	—			557
Total assets:
June 30, 2015	$	45,125	$	25,961	$	10,126	$	8,017	$	14,526		$	(11,542	)	$	92,213
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 June 30, 2015 include revenue from sales to PECO of $49 million and sales to BGE of $97 million in the Mid-Atlantic region, and sales to ComEd of $6 million in the Midwest. For the three months ended June 30, 2014, intersegment revenues for Generation include revenue from sales to PECO of $49 million and sales to BGE of $87 million in the Mid-Atlantic region, and sales to ComEd of $65 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 June 30, 2015 and 2014, utility taxes of $24 million and $21 million, respectively, are included in revenues and expenses for Generation. For the three months ended June 30, 2015 and 2014, utility taxes of $55 million and $56 million, respectively, are included in revenues and expenses for ComEd. For the three months ended June 30, 2015 and 2014, utility taxes of $32 million and $30 million, respectively, are included in revenues and expenses for PECO. For the three months ended June 30, 2015 and 2014, utility taxes of $21 million and $19 million, respectively, are included in revenues and expenses for BGE.

(d)

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:



	Three Months Ended June 30, 2015							Three Months Ended June 30, 2014
	Revenues from External Customers^(a)		Intersegment Revenues			Total Revenues		Revenues from External Customers^(a)		Intersegment Revenues			Total Revenues
Mid-Atlantic	$	1,336	$	10		$	1,346	$	1,272	$	5		$	1,277
Midwest	1,205		1			1,206		981		—			981
New England	366		1			367		211		1			212
New York	222		(4		)	218		194		—			194
ERCOT	194		(2		)	192		198		(1		)	197
Other Power Regions^(b)	294		(5		)	289		314		(6		)	308
Total Revenues for Reportable Segments	3,617		1			3,618		3,170		(1		)	3,169
Other^(c)	615		(1		)	614		619		1			620
Total Generation Consolidated Operating Revenues	$	4,232	$	—		$	4,232	$	3,789	$	—		$	3,789

__________


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


(b)	Other Power Regions includes the South, West and Canada.

(c)

Other represents activities not allocated to a region. See text above for a description of included activities. Also includes a $17 million decrease to revenues and an $88 million decrease to revenues for the amortization of intangible assets related to commodity contracts for the three months ended June 30, 2015 and 2014, respectively, unrealized mark-to-market gains of $25 million and losses of $83 million for the three months ended June 30, 2015 and 2014, respectively, and the elimination of intersegment revenues.

Generation total revenues net of purchased power and fuel expense:



	Three Months Ended June 30, 2015							Three Months Ended June 30, 2014
	RNF from External Customers^(a)		Intersegment RNF			Total RNF		RNF from External Customers^(a)			Intersegment RNF			Total RNF
Mid-Atlantic	$	875	$	14		$	889	$	906		$	14		$	920
Midwest	745		(2		)	743		604			1			605
New England	94		(6		)	88		88			(24		)	64
New York	139		5			144		142			6			148
ERCOT	91		(21		)	70		117			(58		)	59
Other Power Regions^(b)	134		(72		)	62		157			(82		)	75
Total Revenues net of purchased power and fuel for Reportable Segments	2,078		(82		)	1,996		2,014			(143		)	1,871
Other^(c)	305		82			387		(60		)	143			83
Total Generation Revenues net of purchased power and fuel expense	$	2,383	$	—		$	2,383	$	1,954		$	—		$	1,954

__________


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


(b)	Other Power Regions includes the South, West and Canada.

(c)

Other represents activities not allocated to a region. See text above for a description of included activities. Also includes a $14 million decrease to RNF and a $50 million decrease to RNF for the amortization of intangible assets related to commodity contracts for the three months ended June 30, 2015 and 2014, respectively, unrealized mark-to-market gains of $235 million and losses of $14 million for the three months ended June 30, 2015 and 2014, respectively, and the elimination of intersegment revenues.

Six Months Ended June 30, 2015 and 2014




	Generation^(a)		ComEd		PECO		BGE		Other^(b)			Intersegment Eliminations			Exelon
Total revenues^(c):
2015	$	10,074	$	2,333	$	1,646	$	1,664	$	657		$	(1,029	)	$	15,345
2014	8,179		2,262		1,649		1,707		619			(1,155		)	13,261
Intersegment revenues^(d):
2015	$	362	$	2	$	1	$	8	$	656		$	(1,026	)	$	3
2014	517		1		1		18		618			(1,155		)	—
Net income (loss):
2015	$	875	$	189	$	209	$	157	$	(55	)	$	(3	)	$	1,372
2014	188		209		173		106		(25		)	—			651

__________

(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 six months ended June 30, 2015 include revenue from sales to PECO of $112 million and sales to BGE of $235 million in the Mid-Atlantic region, and sales to ComEd of $15 million in the Midwest. For the six months ended June 30, 2014, intersegment revenues for Generation include revenue from sales to PECO of $137 million and sales to BGE of $207 million in the Mid-Atlantic region, and sales to ComEd of $173 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 six months ended June 30, 2015 and 2014, utility taxes of $51 million and $45 million, respectively, are included in revenues and expenses for Generation. For the six months ended June 30, 2015 and 2014, utility taxes of $117 million and $119 million, respectively, are included in revenues and expenses for ComEd. For the six months ended June 30, 2015 and 2014, utility taxes of $67 million and $65 million, respectively, are included in revenues and expenses for PECO. For the six months ended June 30, 2015 and 2014, utility taxes of $44 million and $43 million, respectively, are included in revenues and expenses for BGE.

(d)

Generation total revenues:



	Six Months Ended June 30, 2015							Six Months Ended June 30, 2014
	Revenues from External Customers^(b)		Intersegment Revenues			Total Revenues		Revenues from External Customers^(b)		Intersegment Revenues			Total Revenues
Mid-Atlantic^(a)	$	2,853	$	6		$	2,859	$	2,713	$	(18	)	$	2,695
Midwest	2,480		2			2,482		2,239		12			2,251
New England	1,224		2			1,226		756		5			761
New York^(a)	532		(4		)	528		384		(3		)	381
ERCOT	376		(4		)	372		441		(1		)	440
Other Power Regions^(c)	506		(3		)	503		648		1			649
Total Revenues for Reportable Segments	7,971		(1		)	7,970		7,181		(4		)	7,177
Other^(d)	2,103		1			2,104		998		4			1,002
Total Generation Consolidated Operating Revenues	$	10,074	$	—		$	10,074	$	8,179	$	—		$	8,179

__________


(a)	On April 1, 2014, Generation assumed operational control of CENG's nuclear fleet. As a result, beginning on April 1, 2014, CENG's revenues are included 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 includes the South, West and Canada.

(d)

Other represents activities not allocated to a region. See text above for a description of included activities. Also includes a $22 million increase to revenues and a $180 million decrease to revenues for the amortization of intangible assets related to commodity contracts for the six months ended June 30, 2015 and 2014, respectively, unrealized mark-to-market gains of $179 million and losses of $843 million for the six months ended June 30, 2015 and 2014, respectively, and elimination of intersegment revenues.

Generation total revenues net of purchased power and fuel expense:



	Six Months Ended June 30, 2015								Six Months Ended June 30, 2014
	RNF from External Customers^(b)			Intersegment RNF			Total RNF		RNF from External Customers^(b)			Intersegment RNF			Total RNF
Mid-Atlantic^(a)	$	1,659		$	12		$	1,671	$	1,690		$	(75	)	$	1,615
Midwest	1,446			(3		)	1,443		1,134			27			1,161
New England	271			(25		)	246		242			(42		)	200
New York^(a)	313			19			332		113			14			127
ERCOT	179			(54		)	125		272			(130		)	142
Other Power Regions^(c)	233			(125		)	108		307			(127		)	180
Total Revenues net of purchased power and fuel expense for Reportable Segments	4,101		—	(176		)	3,925		3,758			(333		)	3,425
Other^(d)	691			176			867		(770		)	333			(437		)
Total Generation Revenues net of purchased power and fuel expense	$	4,792	—	$	—		$	4,792	$	2,988		$	—		$	2,988

__________


(a)	On April 1, 2014, Generation assumed operational control of CENG's nuclear fleet. As a result, starting on April 1, 2014, CENG's revenue net of purchased power and fuel expense are included 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 includes the South, West and Canada.

(d)

Other represents activities not allocated to a region. See text above for a description of included activities. Also includes a $24 million increase to RNF and a $92 million decrease to RNF for the amortization of intangible assets related to commodity contracts for the six months ended June 30, 2015 and 2014, respectively, unrealized mark-to-market gains of $397 million and losses of $744 million for the six months ended June 30, 2015 and 2014, respectively, and the elimination of intersegment revenue net of purchased power and fuel expense.