Regulatory Matters (Tables)

12 Months Ended

Dec. 31, 2017

Public Utilities General Disclosures [Table Text Block]

For each of the following years, the ICC approved the following total increases/(decreases) in ComEd's electric distributions formula rate filings:



Annual Electric Distribution Filings	2017				2016				2015
ComEd's requested total revenue requirement increase (decrease)	$	96			$	138			$	(50	)

Final ICC Order
Initial revenue requirement increase	$	78			$	134			$	85
Annual reconciliation increase (decrease)	18				(7		)		(152		)
Total revenue requirement increase (decrease)	$	96			$	127		^(a)	$	(67	)

Allowed Return on Rate Base:
Initial revenue requirement	6.47		%		6.71		%		7.05		%
Annual reconciliation	6.45		%		6.69		%		7.02		%
Allowed ROE:
Initial revenue requirement	8.40		%		8.64		%		9.14		%
Annual reconciliation	8.34		%	^(b)	8.59		%	^(b)	9.09		%	^(b)

Effective date of rates	January 2018				January 2017				January 2016

__________


(a)	On March 22, 2017, the ICC issued an order approving ComEd's proposal to reduce the 2016 revenue requirement by $18 million, which was reflected in customer rates beginning in April 2017. This reduction is not reflected in the 2016 revenue requirement amounts above.


(b)	Includes a reduction of 6 basis points in 2017 and 5 basis points in 2016 and 2015 for a reliability performance metric penalty.

For each of the following years, the following total increases/(decreases) were included in ComEd’s, BGE’s, Pepco's, DPL's and ACE's electric transmission formula rate filings:



	ComEd									BGE
Annual Transmission Filings^(a)	2017			2016			2015			2017			2016			2015
Initial revenue requirement increase	$	44		$	90		$	68		$	31		$	12		$	—
Annual reconciliation increase (decrease)	(33		)	4			18			3			3			(3		)
Dedicated facilities (decrease) increase^(b)	—			—			—			(8		)	13			13
Total revenue requirement increase	$	11		$	94		$	86		$	26		$	28		$	10

Allowed return on rate base^(d)	8.43		%	8.47		%	8.61		%	7.47		%	8.09		%	8.46		%
Allowed ROE^(e)	11.50		%	11.50		%	11.50		%	10.50		%	10.50		%	11.30		%



	Pepco									DPL									ACE
Annual Transmission Filings^(a)	2017			2016			2015			2017			2016			2015			2017			2016			2015
Initial revenue requirement increase (decrease)	$	5		$	2		$	10		$	6		$	8		$	15		$	20		$	8		$	10
Annual reconciliation (decrease) increase	15			(10		)	(3		)	8			(10		)	(1		)	22			(14		)	2
MAPP abandonment recovery (decrease) increase^(c)	—			(15		)	(2		)	—			(12		)	(2		)	—			—			—
Total revenue requirement (decrease) increase	$	20		$	(23	)	$	5		$	14		$	(14	)	$	12		$	42		$	(6	)	$	12

Allowed return on rate base^(d)	7.92		%	7.88		%	8.36		%	7.16		%	7.21		%	7.80		%	8.02		%	7.83		%	8.51		%
Allowed ROE^(e)	10.50		%	10.50		%	11.30		%	10.50		%	10.50		%	11.30		%	10.50		%	10.50		%	11.30		%

__________


(a)	The time period for any challenges to the annual transmission formula rate update flings expired with no challenges submitted.


(b)	BGE's transmission revenues include a FERC approved dedicated facilities charge to recover the costs of providing transmission service to specifically designated load by BGE.


(c)	In 2012, PJM terminated the MAPP transmission line construction project planned for the Pepco and DPL service territories. Pursuant to a FERC approved settlement agreement, the abandonment costs associated with MAPP were being recovered in transmission rates over a three-year period that ended in May 2016.


(d)	Represents to the weighted average debt and equity return on transmission rate bases.

(e)

As part of the FERC-approved settlement of ComEd’s 2007 transmission rate case, the rate of return on common equity is 11.50%, inclusive of a 50-basis-point incentive adder for being a member of a RTO, and the common equity component of the ratio used to calculate the weighted average debt and equity return for the transmission formula rate is currently capped at 55%. As part of the FERC-approved settlement of the ROE complaint against BGE, Pepco, DPL and ACE, the rate of return on common equity is 10.50%, inclusive of a 50-basis-point incentive adder for being a member of a RTO.

The following table illustrates our authorized amounts capitalized for ratemaking purposes related to earnings on shareholders’ investment that are not recognized for financial reporting purposes on our Consolidated Balance Sheets. These amounts will be recognized as revenues in our Consolidated Statements of Operations and Comprehensive Income in the periods they are billable to our customers.



									Successor
	Exelon		ComEd^(a)		PECO		BGE^(b)		PHI		Pepco^(c)		DPL^(c)		ACE
December 31, 2017	$	69	$	6	$	—	$	53	$	10	$	6	$	4	$	—

December 31, 2016	$	72	$	5	$	—	$	57	$	10	$	6	$	4	$	—

__________


(a)	Reflects ComEd's unrecognized equity returns earned for ratemaking purposes on its under-recovered distribution services costs regulatory assets.


(b)	BGE's authorized amounts capitalized for ratemaking purposes primarily relate to earnings on shareholders' investment on its AMI programs


(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. The earnings on energy efficiency are on Pepco DC and DPL DE programs only.

Schedule of Revenue Requirement Increases (Decreases) [Table Text Block]

For each of the following years, the ICC approved the following total increases/(decreases) in ComEd's requested energy efficiency revenue requirement:



Annual Energy Efficiency Filings	Initial				2017
ComEd's requested total revenue requirement (decrease) increase	$	(7	)	^(a)	$	12

Allowed Return on Rate Base:
Initial revenue requirement	6.47		%		6.47		%
Allowed ROE:
Initial revenue requirement	8.40		%		8.40		%

Effective date of rates ^(b)	October 2017				January 2018

__________


(a)	Reflects higher projected PJM capacity revenues compared to projected energy efficiency costs.


(b)	An ICC order on the annual reconciliation of any differences between the revenue requirement in effect and the revenue requirement based on actual costs for 2017 and 2018 is expected in December 2018 and December 2019, respectively.

Schedule of Regulatory Asset Impairments [Table Text Block]

As a result, Exelon, ComEd, BGE, PHI, Pepco, DPL and ACE recorded the following charges to Income tax expense within their Consolidated Statements of Operations and Comprehensive Income in the fourth quarter 2017, reducing their associated transmission-related income tax regulatory assets.



	For the year ended December 31, 2017
Exelon^(a)	$	35
ComEd	3
BGE	5
PHI^(a)	27
Pepco	14
DPL	6
ACE	7

__________

(a) Exelon reflects the consolidated regulatory asset impairments of ComEd, BGE, Pepco, DPL and ACE, and PHI reflects the consolidated regulatory asset impairments of Pepco, DPL and ACE.

Regulatory Construction Commitment

The Utility Registrants will work with PJM to continue to evaluate the scope and timing of any required construction projects. The Utility Registrants' estimated commitments are as follows:



	Total		2018		2019		2020		2021		2022
ComEd	$	164	$	36	$	60	$	44	$	24	$	—
PECO	53		16		19		10		5		3
BGE	118		35		35		35		13		—
Pepco	86		5		11		27		33		10
DPL	27		19		2		1		2		3
ACE	121		68		20		6		21		6

Schedule of Regulatory Assets



									Successor
December 31, 2016	Exelon		ComEd		PECO		BGE		PHI		Pepco		DPL		ACE
Regulatory assets
Pension and other postretirement benefits	$	4,162	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Deferred income taxes	2,016		75		1,583		98		260		171		38		51
AMI programs	701		164		49		230		258		174		84		—
Electric distribution formula rate	188		188		—		—		—		—		—		—
Debt costs	124		42		1		7		81		17		9		6
Fair value of long-term debt	812		—		—		—		671		—		—		—
Fair value of PHI's unamortized energy contracts	1,085		—		—		—		1,085		—		—		—
Asset retirement obligations	111		76		23		12		—		—		—		—
MGP remediation costs	305		278		26		1		—		—		—		—
Under-recovered uncollectible accounts	56		56		—		—		—		—		—		—
Renewable energy	260		258		—		—		2		—		—		2
Energy and transmission programs	89		23		—		38		28		6		5		17
Deferred storm costs	36		—		—		1		35		12		5		18
Electric generation-related regulatory asset	10		—		—		10		—		—		—		—
Rate stabilization deferral	7		—		—		7		—		—		—		—
Energy efficiency and demand response programs	621		—		1		285		335		250		85		—
Merger integration costs	25		—		—		10		15		11		4		—
Under-recovered revenue decoupling	27		—		—		3		24		21		3		—
COPCO acquisition adjustment	8		—		—		—		8		—		8		—
Workers compensation and long-term disability costs	34		—		—		—		34		34		—		—
Vacation accrual	31		—		7		—		24		—		14		10
Securitized stranded costs	138		—		—		—		138		—		—		138
CAP arrearage	11		—		11		—		—		—		—		—
Removal costs	477		—		—		—		477		134		88		255
Other	54		7		9		10		29		22		5		4
Total regulatory assets	11,388		1,167		1,710		712		3,504		852		348		501
Less: current portion	1,342		190		29		208		653		162		59		96
Total noncurrent regulatory assets	$	10,046	$	977	$	1,681	$	504	$	2,851	$	690	$	289	$	405



									Successor
December 31, 2016	Exelon		ComEd		PECO		BGE		PHI		Pepco		DPL		ACE
Regulatory liabilities
Other postretirement benefits	$	47	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Nuclear decommissioning	2,607		2,169		438		—		—		—		—		—
Removal costs	1,601		1,324		—		141		136		18		118		—
Deferred rent	39		—		—		—		39		—		—		—
Energy efficiency and demand response programs	185		141		41		—		3		3		—		—
DLC program costs	8		—		8		—		—		—		—		—
Electric distribution tax repairs	76		—		76		—		—		—		—		—
Gas distribution tax repairs	20		—		20		—		—		—		—		—
Energy and transmission programs	134		60		56		—		18		8		5		5
Other	72		4		5		19		41		2		17		20
Total regulatory liabilities	4,789		3,698		644		160		237		31		140		25
Less: current portion	602		329		127		50		79		11		43		25
Total noncurrent regulatory liabilities	$	4,187	$	3,369	$	517	$	110	$	158	$	20	$	97	$	—

The following tables provide information about the regulatory assets and liabilities of Exelon, ComEd, PECO, BGE, PHI, Pepco, DPL and ACE as of December 31, 2017 and December 31, 2016:



									Successor
December 31, 2017	Exelon		ComEd		PECO		BGE		PHI		Pepco		DPL		ACE
Regulatory assets
Pension and other postretirement benefits	$	3,848	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Deferred income taxes	306		—		297		—		9		9		—		—
AMI programs	640		155		36		214		235		158		77		—
Electric distribution formula rate	244		244		—		—		—		—		—		—
Energy efficiency costs	166		166		—		—		—		—		—		—
Debt costs	116		37		1		11		73		15		8		5
Fair value of long-term debt	758		—		—		—		619		—		—		—
Fair value of PHI's unamortized energy contracts	750		—		—		—		750		—		—		—
Asset retirement obligations	109		73		22		14		—		—		—		—
MGP remediation costs	295		273		22		—		—		—		—		—
Under-recovered uncollectible accounts	61		61		—		—		—		—		—		—
Renewable energy	258		256		—		—		2		—		1		1
Energy and transmission programs	82		6		1		23		52		11		15		26
Deferred storm costs	27		—		—		—		27		7		5		15
Energy efficiency and demand response programs	596		—		1		285		310		229		81		—
Merger integration costs	45		—		—		6		39		20		10		9
Under-recovered revenue decoupling	55		—		—		14		41		38		3		—
COPCO acquisition adjustment	5		—		—		—		5		—		5		—
Workers compensation and long-term disability costs	35		—		—		—		35		35		—		—
Vacation accrual	19		—		6		—		13		—		8		5
Securitized stranded costs	79		—		—		—		79		—		—		79
CAP arrearage	8		—		8		—		—		—		—		—
Removal costs	529		—		—		—		529		150		93		286
DC PLUG charge	190		—		—		—		190		190		—		—
Other	67		8		16		4		39		29		8		4
Total regulatory assets	9,288		1,279		410		571		3,047		891		314		430
Less: current portion	1,267		225		29		174		554		213		69		71
Total noncurrent regulatory assets	$	8,021	$	1,054	$	381	$	397	$	2,493	$	678	$	245	$	359

Schedule of Regulatory Liabilities



									Successor
December 31, 2016	Exelon		ComEd		PECO		BGE		PHI		Pepco		DPL		ACE
Regulatory liabilities
Other postretirement benefits	$	47	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Nuclear decommissioning	2,607		2,169		438		—		—		—		—		—
Removal costs	1,601		1,324		—		141		136		18		118		—
Deferred rent	39		—		—		—		39		—		—		—
Energy efficiency and demand response programs	185		141		41		—		3		3		—		—
DLC program costs	8		—		8		—		—		—		—		—
Electric distribution tax repairs	76		—		76		—		—		—		—		—
Gas distribution tax repairs	20		—		20		—		—		—		—		—
Energy and transmission programs	134		60		56		—		18		8		5		5
Other	72		4		5		19		41		2		17		20
Total regulatory liabilities	4,789		3,698		644		160		237		31		140		25
Less: current portion	602		329		127		50		79		11		43		25
Total noncurrent regulatory liabilities	$	4,187	$	3,369	$	517	$	110	$	158	$	20	$	97	$	—



									Successor
December 31, 2017	Exelon		ComEd		PECO		BGE		PHI		Pepco		DPL		ACE
Regulatory liabilities
Other postretirement benefits	$	30	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Deferred income taxes	5,241		2,479		—		1,032		$	1,730	809		510		411
Nuclear decommissioning	3,064		2,528		536		—		—		—		—		—
Removal costs	1,573		1,338		—		105		130		20		110		—
Deferred rent	36		—		—		—		36		—		—		—
Energy efficiency and demand response programs	23		4		19		—		—		—		—		—
DLC program costs	7		—		7		—		—		—		—		—
Electric distribution tax repairs	35		—		35		—		—		—		—		—
Gas distribution tax repairs	9		—		9		—		—		—		—		—
Energy and transmission programs	111		47		60		—		4		—		1		3
Renewable portfolio standards costs	63		63		—		—		—		—		—		—
Zero emission credit costs	112		112		—		—		—		—		—		—
Over-recovered uncollectible accounts	2		—		—		—		2		—		—		2
Other	82		6		24		26		26		3		14		6
Total regulatory liabilities	10,388		6,577		690		1,163		1,928		832		635		422
Less: current portion	523		249		141		62		56		3		42		11
Total noncurrent regulatory liabilities	$	9,865	$	6,328	$	549	$	1,101	$	1,872	$	829	$	593	$	411

Purchase Of Receivables

The following tables provide information about the purchased receivables of those companies as of December 31, 2017 and December 31, 2016.



													Successor
As of December 31, 2017	Exelon			ComEd			PECO			BGE			PHI			Pepco			DPL			ACE
Purchased receivables	$	298		$	87		$	70		$	58		$	83		$	56		$	9		$	18
Allowance for uncollectible accounts ^(a)	(31		)	(14		)	(5		)	(3		)	(9		)	(5		)	(1		)	(3		)
Purchased receivables, net	$	267		$	73		$	65		$	55		$	74		$	51		$	8		$	15

													Successor
As of December 31, 2016	Exelon			ComEd			PECO			BGE			PHI			Pepco			DPL			ACE
Purchased receivables	$	313		$	87		$	72		$	59		$	95		$	63		$	10		$	22
Allowance for uncollectible accounts ^(a)	(37		)	(14		)	(6		)	(4		)	(13		)	(7		)	(2		)	(4		)
Purchased receivables, net	$	276		$	73		$	66		$	55		$	82		$	56		$	8		$	18

__________


(a)	For ComEd, BGE, Pepco and DPL, reflects the incremental allowance for uncollectible accounts recorded, which is in addition to the purchase discount. For ComEd, the incremental uncollectible accounts expense is recovered through its Purchase of Receivables with Consolidated Billing tariff.