Retirement Benefits (Exelon, Generation, ComEd, PECO and BGE)

Exelon sponsors defined benefit pension plans and other postretirement benefit plans for essentially all Generation, ComEd, PECO, BGE and BSC employees.

Defined Benefit Pension and Other Postretirement Benefits

During the first quarter of 2015, Exelon received an updated valuation of its pension and other postretirement benefit obligations to reflect actual census data as of January 1, 2015. This valuation resulted in an increase to the pension obligation of $45 million and an increase to the other postretirement benefit obligation of $57 million. Additionally, accumulated other comprehensive loss increased by approximately $27 million (after tax), regulatory assets increased by approximately $48 million, and regulatory liabilities decreased by approximately $11 million.

The majority of the 2015 pension benefit cost for Exelon-sponsored plans is calculated using an expected long-term rate of return on plan assets of 7.00% and a discount rate of 3.94%. The majority of the 2015 other postretirement benefit cost is calculated using an expected long-term rate of return on plan assets of 6.46% for funded plans and a discount rate of 3.92%. A portion of the net periodic benefit cost is capitalized within the Consolidated Balance Sheets. The following tables present the components of Exelon’s net periodic benefit costs, prior to any capitalization, for the three and nine months ended September 30, 2015 and 2014.



	Pension Benefits Three Months Ended September 30,						Other Postretirement Benefits Three Months Ended September 30,
	2015^(a)			2014^(a)			2015^(a)			2014^(a)
Service cost	$	82		$	74		$	30		$	27
Interest cost	178			189			42			42
Expected return on assets	(257		)	(251		)	(38		)	(39		)
Amortization of:
Prior service cost (benefit)	3			3			(43		)	(44		)
Actuarial loss	142			106			20			15
Net periodic benefit cost	$	148		$	121		$	11		$	1



	Pension Benefits Nine Months Ended September 30,						Other Postretirement Benefits Nine Months Ended September 30,
	2015^(b)			2014^(b)			2015^(b)			2014^(b)
Service cost	$	245		$	218		$	89		$	90
Interest cost	533			561			125			144
Expected return on assets	(770		)	(743		)	(113		)	(115		)
Amortization of:
Prior service cost (benefit)	10			10			(130		)	(79		)
Actuarial loss	427			316			60			35
Net periodic benefit cost	$	445		$	362		$	31		$	75

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(a)	For the three months ended September 30, 2015, the cost for pension benefits and other postretirement benefits related to CENG were $2 million and $3 million, respectively. For the three months ended September 30, 2014, the cost for pension benefits and other postretirement benefits related to CENG were $2 million and $3 million, respectively. CENG amounts are included in the tables above.


(b)	For the nine months ended September 30, 2015, the cost for pension benefits and other postretirement benefits related to CENG were $8 million and $8 million, respectively. For the period of April 1, 2014 to September 30, 2014, the cost for pension benefits and other postretirement benefits related to CENG were $5 million and $6 million, respectively. CENG amounts are included in the tables above.

The amounts below represent Generation’s, ComEd’s, PECO’s, BGE’s and BSC's allocated portion of the pension and postretirement benefit plan costs, which were included in Property, plant and equipment within the respective Consolidated Balance Sheets and Operating and maintenance expense within the Consolidated Statement of Operations and Comprehensive Income during the three and nine months ended September 30, 2015 and 2014.



	Three Months Ended September 30,				Nine Months Ended September 30,
Pension and Other Postretirement Benefit Costs	2015		2014		2015		2014
Generation^(a)	$	67	$	54	$	200	$	193
ComEd	52		33		155		129
PECO	10		7		29		28
BGE	16		17		49		50
BSC^(b)	14		11		43		37

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(a)	For the three and nine months ended September 30, 2015, the costs related to CENG were $5 million and $16 million, respectively. For the three months ended September 30, 2014, the costs related to CENG were $5 million. For the period of April 1, 2014 to September 30, 2014, the costs related to CENG were $11 million. CENG amounts are included in the table above.


(b)	These amounts primarily represent amounts billed to Exelon’s subsidiaries through intercompany allocations. These amounts are not included in the Generation, ComEd, PECO or BGE amounts above.

Defined Contribution Savings Plans

The Registrants participate in various 401(k) defined contribution savings plans that are sponsored by Exelon. The plans are qualified under applicable sections of the IRC and allow employees to contribute a portion of their pre-tax income in accordance with specified guidelines. All Registrants match a percentage of the employee contributions up to certain limits. The following table presents the matching contributions to the savings plans during the three and nine months ended September 30, 2015 and 2014:



	Three Months Ended September 30,				Nine Months Ended September 30,
Savings Plan Matching Contributions	2015		2014		2015		2014
Exelon^(a)	$	51	$	34	$	111	$	82
Generation^(a)	27		17		60		41
ComEd	10		8		23		20
PECO	3		2		7		6
BGE	5		3		10		7
BSC^(b)	6		4		11		8

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(a)	Includes $4 million and $8 million, respectively, related to CENG for the three and nine months ended September 30, 2015. Includes $1 million related to CENG for the three months ended September 30, 2014 and for the period from April 1, 2014 to September 30, 2014.


(b)	These amounts primarily represent amounts billed to Exelon’s subsidiaries through intercompany allocations. These costs are not included in the Generation, ComEd, PECO or BGE amounts above.