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Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2017
Income Tax Disclosure [Abstract]  
ScheduleOfRemeasurementsOfDeferredIncomeTaxesDueToTaxReform [Table Text Block]
The one-time impacts recorded by the Registrants to remeasure their deferred income tax balances at the 21% corporate federal income tax rate as of December 31, 2017 are presented below:
 
 
 
 
 
 
 
 
 
 
 
Successor
 
 
 
 
 
 
 
Exelon(b)
 
Generation
 
ComEd
 
PECO
 
BGE
 
PHI
 
Pepco
 
DPL
 
ACE
Net Decrease to Deferred Income Tax Liability Balances

$8,624
 
$1,895
 
$2,819
 
$1,407
 
$1,120
 
$1,944
 
$968
 
$540
 
$456
 
 
 
 
 
 
 
 
 
 
 
Successor
 
 
 
 
 
 
 
Exelon
 
Generation
 
ComEd
 
PECO(c)
 
BGE
 
PHI
 
Pepco
 
DPL
 
ACE
Net Regulatory Liability Recorded(a)
$7,315
 
N/A
 
$2,818
 
$1,394
 
$1,124
 
$1,979
 
$976
 
$545
 
$458
 
 
 
 
 
 
 
 
 
 
 
Successor
 
 
 
 
 
 
 
Exelon(b)
 
Generation
 
ComEd
 
PECO
 
BGE
 
PHI
 
Pepco
 
DPL
 
ACE
Net Deferred Income Tax Benefit/(Expense) Recorded
$1,309
 
$1,895
 
$1
 
$13
 
$(4)
 
$(35)
 
$(8)
 
$(5)
 
$(2)
__________
(a)
Reflects the net regulatory liabilities recorded on a pre-tax basis before taking into consideration the income tax benefits associated with the ultimate settlement with customers.
(b)
Amounts do not sum across due to deferred tax adjustments recorded at the Exelon Corporation parent company, primarily related to certain employee compensation plans.
(c)
Given the regulatory treatment of income tax benefits related to electric and gas distribution repairs, PECO remains in an overall net regulatory asset position as of December 31, 2017 after recording the impacts related to the TCJA. Refer to Note 3 - Regulatory Matters for additional information.
ScheduleOfCategorizationOfNetRegulatoryLiabilitiesDueToTaxReform [Table Text Block]
The table below sets forth the Registrants’ estimated categorization of their net regulatory liabilities as of December 31, 2017. The amounts in the table below are shown on an after-tax basis reflecting future net cash outflows after taking into consideration the income tax benefits associated with the ultimate settlement with customers.
 
 
 
 
 
 
 
 
 
Successor
 
 
 
 
 
 
 
Exelon
 
ComEd
 
PECO(a)
 
BGE
 
PHI
 
PEPCO
 
DPL
 
ACE
Subject to IRS Normalization Rules
$3,040
 
$1,400
 
$533
 
$459
 
$648
 
$299
 
$195
 
$153
Subject to Rate Regulator Determination
1,694
 
573
 
43
 
324
 
754
 
391
 
194
 
170

Net Regulatory Liabilities
$4,734
 
$1,973
 
$576
 
$783
 
$1,402
 
$690
 
$389
 
$
323

_________
(a)
Given the regulatory treatment of income tax benefits related to electric and gas distribution repairs, PECO remains in an overall net regulatory asset position as of December 31, 2017 after recording the impacts related to the TCJA. As a result, the amount of customer benefits resulting from the TCJA subject to the discretion of PECO's rate regulators are lower relative to the other Utility Registrants. Refer to Note 3 - Regulatory Matters for additional information.
Schedule of Components of Income Tax Expense (Benefit)
Income tax expense (benefit) from continuing operations is comprised of the following components:
 
For the year ended December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
Successor
 
 
 
 
 
 
 
 Exelon
 
 Generation
 
ComEd
 
PECO
 
BGE
 
PHI
 
Pepco
 
DPL
 
ACE
Included in operations:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Federal
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Current
$
194

 
$
584

 
$
(191
)
 
$
71

 
$
74

 
$
(60
)
 
$
(20
)
 
$
(24
)
 
$
(12
)
Deferred
(469
)
 
(2,003
)
 
523

 
28

 
101

 
250

 
114

 
82

 
34

Investment tax credit amortization
(25
)
 
(21
)
 
(2
)
 
—

 
(1
)
 
(1
)
 
—

 
—

 
—

State
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Current
14

 
65

 
(49
)
 
14

 
(5
)
 
(4
)
 
(2
)
 
—

 
—

Deferred
161

 
—

 
136

 
(9
)
 
49

 
32

 
13

 
13

 
4

Total
$
(125
)
 
$
(1,375
)
 
$
417

 
$
104

 
$
218

 
$
217

 
$
105

 
$
71

 
$
26

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Successor
 
 
Predecessor
 
For the Year Ended December 31, 2016
 
March 24, 2016 to December 31, 2016
 
 
January 1, 2016 to March 23, 2016
 
Exelon
 
Generation
 
ComEd
 
PECO
 
BGE
 
Pepco
 
DPL
 
ACE
 
PHI
 
 
PHI
Included in operations:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Federal
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Current
$
60

 
$
513

 
$
(135
)
 
$
63

 
$
51

 
$
(118
)
 
$
(88
)
 
$
(26
)
 
$
(281
)
 
 
$
—

Deferred
607

 
(247
)
 
379

 
72

 
88

 
136

 
97

 
22

 
283

 
 
10

Investment tax credit amortization
(24
)
 
(20
)
 
(2
)
 
—

 
(1
)
 
—

 
—

 
—

 
(1
)
 
 
—

State
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Current
39

 
45

 
(4
)
 
9

 
5

 
7

 
1

 
—

 
(11
)
 
 
—

Deferred
79

 
(1
)
 
63

 
5

 
31

 
16

 
12

 
—

 
13

 
 
7

Total
$
761

 
$
290

 
$
301

 
$
149

 
$
174

 
$
41

 
$
22

 
$
(4
)
 
$
3

 
 
$
17

 
For the Year Ended December 31, 2015
 
 
 
 
 
 
 
 
 
 
 
Predecessor
 
 
 
 
 
 
 
 Exelon
 
 Generation
 
ComEd
 
PECO
 
BGE
 
PHI
 
Pepco
 
DPL
 
ACE
Included in operations:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Federal
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Current
$
407

 
$
546

 
$
(80
)
 
$
64

 
$
25

 
$
12

 
$
(54
)
 
$
(27
)
 
$
(2
)
Deferred
566

 
16

 
310

 
69

 
126

 
103

 
126

 
73

 
27

Investment tax credit amortization
(22
)
 
(19
)
 
(2
)
 
—

 
(1
)
 
(1
)
 
—

 
—

 
—

State
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Current
(86
)
 
(90
)
 
7

 
(10
)
 
—

 
17

 
6

 
2

 
3

Deferred
208

 
49

 
45

 
20

 
39

 
32

 
24

 
1

 
5

Total
$
1,073


$
502


$
280


$
143


$
189


$
163


$
102


$
49


$
33

The following tables represent the net interest and penalties receivable (payable), including interest and penalties related to tax positions reflected in the Registrants’ Consolidated Balance Sheets.
 
 
 
 
 
 
 
 
 
 
 
Successor
 
 
 
 
 
 
Net interest receivable (payable) as of
Exelon(a)
 
Generation
 
ComEd(a)
 
PECO
 
BGE
 
PHI
 
Pepco
 
DPL
 
ACE
December 31, 2017
$
233

 
$
(3
)
 
$
4

 
$
—

 
$
—

 
$
2

 
$
—

 
$
—

 
$
—

December 31, 2016
(507
)
 
46

 
(384
)
 
8

 
(1
)
 
2

 
1

 
—

 
1

 
 
 
 
 
 
 
 
 
 
 
Successor
 
 
 
 
 
 
Net penalties receivable (payable) as of
Exelon
 
Generation
 
ComEd
 
PECO
 
BGE
 
PHI
 
Pepco
 
DPL
 
ACE
December 31, 2017
$
(17
)
 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

December 31, 2016
(106
)
 
—

 
(86
)
 
—

 
—

 
—

 
—

 
—

 
—

__________
(a)
Change in balance attributable to Like-Kind Exchange interest payments, see Other Tax Matters for further discussion.
Effective Income Tax Rate Reconciliation
The effective income tax rate from continuing operations varies from the U.S. Federal statutory rate principally due to the following:
 
For the Year Ended December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
Successor
 
 
 
 
 
 
 
Exelon
 
Generation
 
ComEd
 
PECO
 
BGE
 
PHI
 
Pepco
 
DPL
 
ACE
U.S. Federal statutory rate
35.0
 %
 
35.0
 %
 
35.0
 %
 
35.0
 %
 
35.0
 %
 
35.0
 %
 
35.0
 %
 
35.0
 %
 
35.0
 %
Increase (decrease) due to:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
State income taxes, net of Federal income tax benefit
2.3

 
3.0

 
5.7

 
0.6

 
5.4

 
4.8

 
3.2

 
5.4

 
5.6

Qualified nuclear decommissioning trust fund income
3.8

 
10.0

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Amortization of investment tax credit, including deferred taxes on basis difference
(0.9
)
 
(2.2
)
 
(0.2
)
 
(0.1
)
 
(0.1
)
 
(0.2
)
 
(0.1
)
 
(0.2
)
 
(0.4
)
Plant basis differences(a)
(1.7
)
 
—

 
0.3

 
(13.8
)
 
0.1

 
1.1

 
(0.4
)
 
2.0

 
3.6

Production tax credits and other credits
(1.8
)
 
(4.8
)
 
—

 
—

 
—

 
—

 
—

 
—

 
—

Noncontrolling interests
0.1

 
0.3

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Like-kind exchange
(1.2
)
 
—

 
1.3

 
—

 
—

 
—

 
—

 
—

 
—

Merger expenses
(3.7
)
 
(1.3
)
 
—

 
—

 
—

 
(9.5
)
 
(6.3
)
 
(7.8
)
 
(19.8
)
FitzPatrick bargain purchase gain
(2.2
)
 
(5.7
)
 
—

 
—

 
—

 
—

 
—

 
—

 
—

Tax Cut and Jobs Act of 2017(b)
(33.1
)
 
(130.1
)
 
0.1

 
(2.3
)
 
0.9

 
6.4

 
2.7

 
2.5

 
1.6

Other
0.1

 
(0.4
)
 
0.2

 
(0.1
)
 
0.2

 
(0.1
)
 
(0.2
)
 
0.1

 
(0.4
)
Effective income tax rate
(3.3
)%
 
(96.2
)%
 
42.4
 %
 
19.3
 %
 
41.5
 %
 
37.5
 %
 
33.9
 %
 
37.0
 %
 
25.2
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Successor
 
 
Predecessor
 
For the Year Ended December 31, 2016
 
March 24, 2016 to December 31, 2016
 
 
January 1, 2016 to March 23, 2016
 
Exelon
 
Generation
 
ComEd
 
PECO
 
BGE
 
Pepco
 
DPL (c)
 
ACE (c)
 
PHI (c)
 
 
PHI
U.S. Federal statutory rate
35.0
 %
 
35.0
 %
 
35.0
 %
 
35.0
 %
 
35.0
 %
 
35.0
 %
 
35.0
 %
 
35.0
 %
 
35.0
 %
 
 
35.0
 %
Increase (decrease) due to:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

State income taxes, net of Federal income tax benefit (d)
3.3

 
3.3

 
5.6

 
1.3

 
5.0

 
15.7

 
52.7

 
6.2

 
5.8

 
 
11.9

Qualified nuclear decommissioning trust fund income
3.4

 
7.8

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
 
—

Amortization of investment tax credit, including deferred taxes on basis difference
(1.2
)
 
(2.3
)
 
(0.3
)
 
(0.1
)
 
(0.1
)
 
(0.2
)
 
(3.7
)
 
0.8

 
1.4

 
 
(0.9
)
Plant basis differences
(4.8
)
 
—

 
(0.6
)
 
(9.6
)
 
(2.7
)
 
(22.8
)
 
(25.5
)
 
10.3

 
39.0

 
 
(13.5
)
Production tax credits and other credits
(3.6
)
 
(8.2
)
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
 
—

Noncontrolling interests
(0.2
)
 
(0.3
)
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
 
—

Statute of limitations expiration
(0.4
)
 
(1.7
)
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
 
—

Penalties
1.9

 
—

 
4.5

 
—

 
—

 
—

 
—

 
—

 
(0.7
)
 
 
—

Merger Expenses
5.5

 
1.1

 
—

 
—

 
—

 
23.5

 
112.9

 
(44.9
)
 
(89.0
)
 
 
11.1

Other (e)
(0.6
)
 
(1.5
)
 
0.1

 
(1.2
)
 
—

 
(1.8
)
 
(2.2
)
 
1.3

 
3.3

 
 
3.6

Effective income tax rate
38.3
 %
 
33.2
 %
 
44.3
 %
 
25.4
 %
 
37.2
 %

49.4
 %

169.2
 %

8.7
 %

(5.2
)%

 
47.2
 %

 
For the Year Ended December 31, 2015
 
 
 
 
 
 
 
 
 
 
 
Predecessor
 
 
 
 
 
 
 
Exelon
 
Generation
 
ComEd
 
PECO
 
BGE 
 
PHI
 
Pepco
 
DPL
 
ACE
U.S. Federal statutory rate
35.0
 %
 
35.0
 %
 
35.0
 %
 
35.0
 %
 
35.0
 %
 
35.0
 %
 
35.0
 %
 
35.0
 %
 
35.0
 %
Increase (decrease) due to:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
State income taxes, net of Federal income tax benefit
3.7

 
1.0

 
4.9

 
1.0

 
5.3

 
6.6

 
6.7

 
1.7

 
5.7

Qualified nuclear decommissioning trust fund loss
(0.4
)
 
(0.8
)
 
—

 
—

 
—

 
—

 
—

 
—

 
—

Domestic production activities deduction
(0.7
)
 
(1.3
)
 
—

 
—

 
—

 
—

 
—

 
—

 
—

Health care reform legislation
—

 
—

 
—

 
—

 
0.1

 
—

 
—

 
—

 
—

Amortization of investment tax credit, including deferred taxes on basis difference
(0.9
)
 
(1.5
)
 
(0.3
)
 
(0.1
)
 
(0.1
)
 
(0.2
)
 
(0.1
)
 
(0.4
)
 
(0.6
)
Plant basis differences
(1.5
)
 
—

 
(0.1
)
 
(8.7
)
 
(0.7
)
 
(4.3
)
 
(5.8
)
 
(2.3
)
 
(1.3
)
Production tax credits and other credits
(1.9
)
 
(3.4
)
 
—

 
—

 
—

 
—

 
—

 
—

 
—

Noncontrolling interests
0.3

 
0.5

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Statute of limitations expiration
(1.4
)
 
(2.4
)
 
—

 
—

 
—

 
—

 
—

 
—

 
—

Other (f)
—

 
—

 
0.2

 
0.2

 
—

 
(3.2
)
 
(0.5
)
 
5.2

 
6.4

Effective income tax rate
32.2
 %

27.1
 %

39.7
 %

27.4
 %

39.6
 %

33.9
 %

35.3
 %

39.2
 %

45.2
 %
__________
(a)
Includes the charges related to the transmission-related income tax regulatory asset for Exelon, ComEd, BGE, PHI, Pepco, DPL, and ACE of $35 million, $3 million, $5 million, $27 million, $14 million, $6 million, and $7 million, respectively (See Footnote 3 - Regulatory Matters).
(b)
Included are impacts for TJCA other than the corporate rate change, including revisions further limiting tax deductions for compensation of certain highest paid executives, the write-off of foreign tax credit carryforwards, and loss of a 2015 domestic production activities deduction due to an NOL carryback.
(c)
DPL and ACE recognized a loss before income taxes for the year ended December 31, 2016, and PHI recognized a loss before income taxes for the period of March 24, 2016, through December 31, 2016. As a result, positive percentages represent an income tax benefit for the periods presented.
(d)
Includes a remeasurement of uncertain state income tax positions for Pepco and DPL.
(e)
At PECO, includes a cumulative adjustment related to an anticipated gas repairs tax return accounting method change. The method change request was filed and accepted in 2017. No change to the results recorded as of December 31, 2016.
(f)
Includes impacts of the PHI Global Settlement for Pepco, DPL, ACE and
Tax Effects of Temporary Differences
rds
The tax effects of temporary differences and carryforwards, which give rise to significant portions of the deferred tax assets (liabilities), as of December 31, 2017 and 2016 are presented below:
Summary of Loss Carryforwards
 
As of December 31, 2017 (a)
 
 
 
 
 
 
 
 
 
 
 
Successor
 
 
 
 
 
 
 
Exelon
 
Generation
 
ComEd
 
PECO
 
BGE
 
PHI
 
Pepco
 
DPL
 
ACE
Plant basis differences
$
(12,490
)
 
$
(2,819
)
 
$
(3,825
)
 
$
(1,762
)
 
$
(1,368
)
 
$
(2,521
)
 
$
(1,152
)
 
$
(717
)
 
$
(607
)
Accrual based contracts
150

 
(66
)
 
—

 
—

 
—

 
216

 
—

 
—

 
—

Derivatives and other financial instruments
(85
)
 
(66
)
 
(2
)
 
—

 
—

 
3

 
—

 
—

 
—

Deferred pension and postretirement obligation
1,463

 
(205
)
 
(285
)
 
(15
)
 
(29
)
 
(130
)
 
(78
)
 
(51
)
 
(18
)
Nuclear decommissioning activities
(553
)
 
(553
)
 
—

 
—

 
—

 
—

 
—

 
—

 
—

Deferred debt refinancing costs
217

 
26

 
(8
)
 
(1
)
 
(3
)
 
203

 
(4
)
 
(2
)
 
(1
)
Regulatory assets and liabilities
(688
)
 
—

 
489

 
(90
)
 
136

 
(184
)
 
39

 
88

 
86

Tax loss carryforward
344

 
76

 
33

 
9

 
11

 
156

 
40

 
68

 
35

Tax credit carryforward
861

 
868

 
1

 
—

 
—

 
6

 
—

 
—

 
—

Investment in partnerships
(434
)
 
(416
)
 
—

 
—

 
—

 
—

 
—

 
—

 
—

Other, net
746

 
78

 
141

 
71

 
13

 
193

 
94

 
14

 
16

Deferred income tax liabilities (net)
$
(10,469
)
 
$
(3,077
)
 
$
(3,456
)
 
$
(1,788
)
 
$
(1,240
)

$
(2,058
)

$
(1,061
)

$
(600
)

$
(489
)
Unamortized investment tax credits
(732
)
 
(705
)
 
(13
)
 
(1
)
 
(4
)
 
(8
)
 
(2
)
 
(3
)
 
(4
)
Total deferred income tax liabilities (net) and
unamortized investment tax credits
$
(11,201
)
 
$
(3,782
)
 
$
(3,469
)
 
$
(1,789
)
 
$
(1,244
)

$
(2,066
)

$
(1,063
)

$
(603
)

$
(493
)
__________
(a) Includes remeasurement impacts related to the TCJA.
 
As of December 31, 2016
 
 
 
 
 
 
 
 
 
 
 
Successor
 
 
 
 
 
 
 
Exelon
 
Generation
 
ComEd
 
PECO
 
BGE
 
PHI
 
Pepco
 
DPL
 
ACE
Plant basis differences
$
(17,966
)
 
$
(4,192
)
 
$
(5,034
)
 
$
(3,095
)
 
$
(1,977
)
 
$
(3,586
)
 
$
(1,678
)
 
$
(973
)
 
$
(869
)
Accrual based contracts
434

 
(115
)
 
—

 
—

 
—

 
548

 
—

 
—

 
—

Derivatives and other financial instruments
(179
)
 
(162
)
 
(3
)
 
—

 
—

 
(1
)
 
—

 
—

 
—

Deferred pension and postretirement obligation
2,287

 
(316
)
 
(453
)
 
(18
)
 
(43
)
 
(111
)
 
(122
)
 
(74
)
 
(21
)
Nuclear decommissioning activities
(509
)
 
(509
)
 
—

 
—

 
—

 
—

 
—

 
—

 
—

Deferred debt refinancing costs
325

 
44

 
(13
)
 
(1
)
 
(3
)
 
293

 
(7
)
 
(4
)
 
(2
)
Regulatory assets and liabilities
(3,319
)
 
—

 
(226
)
 
10

 
(240
)
 
(1,205
)
 
(194
)
 
(75
)
 
(69
)
Tax loss carryforward
189

 
61

 
29

 
—

 
22

 
77

 
27

 
39

 
14

Tax credit carryforward
446

 
493

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Investment in partnerships
(650
)
 
(650
)
 
—

 
—

 
—

 
—

 
—

 
—

 
—

Other, net
1,485

 
403

 
351

 
99

 
27

 
225

 
66

 
34

 
34

Deferred income tax liabilities (net)
$
(17,457
)
 
$
(4,943
)
 
$
(5,349
)
 
$
(3,005
)
 
$
(2,214
)

$
(3,760
)

$
(1,908
)

$
(1,053
)

$
(913
)
Unamortized investment tax credits
(658
)
 
(626
)
 
(15
)
 
(1
)
 
(5
)
 
(9
)
 
(2
)
 
(3
)
 
(4
)
Total deferred income tax liabilities (net) and
unamortized investment tax credits
$
(18,115
)
 
$
(5,569
)
 
$
(5,364
)
 
$
(3,006
)
 
$
(2,219
)

$
(3,769
)

$
(1,910
)

$
(1,056
)

$
(917
)
The following table provides the Registrants’ carryforwards and any corresponding valuation allowances as of December 31, 2017:
 
 
 
 
 
 
 
 
 
 
 
Successor
 
 
 
 
 
 
 
 
Exelon
 
Generation
 
ComEd
 
PECO
 
BGE
 
PHI
 
Pepco
 
DPL
 
ACE
 
Federal
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Federal net operating loss
$
624

(a)  

$
—

 
$
156

 
$
7

 
$
—

 
$
261

 
$
82

 
$
81

 
$
63

 
Deferred taxes on Federal net operating loss
131

 
—

 
33

 
1

 
—

 
55

 
17

 
17

 
13

 
Federal general business credits carryforwards
861

(b) 
868


1

 
—


1

 
5

 
—

 
—

 
—

 
State
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
State net operating losses
3,555

(c) 
1,479

(c) 
—

 
98

(e)  
177

(d) 
1,440

(f) 
347

(g) 
753

(h) 
299

(i) 
Deferred taxes on state tax attributes (net)
233

 
97

 
—

 
8

 
12

 
98

 
23

 
51

 
21

 
Valuation allowance on state tax attributes
29

 
23

 
—

 
—

 
1

 
5

 
—

 
—

 
—

 
__________
(a)
Exelon's federal net operating loss will begin expiring in 2034.
(b)
Exelon’s federal general business credit carryforwards will begin expiring in 2033.
(c)
Exelon’s and Generation's state net operating losses and credit carryforwards, which are presented on a post-apportioned basis, will begin expiring in 2018.
(d)
BGE's state net operating loss carryforwards, which are presented on a post-apportioned basis, will begin expiring in 2026.
(e)
PECO's state net operating loss carryforwards, which are presented on a post-apportioned basis, will begin expiring in 2031.
(f)
PHI's state net operating loss carryforwards, which are presented on a post-apportioned basis, will begin expiring in 2036.
(g)
Pepco's state net operating loss carryforwards, which are presented on a post-apportioned basis, will begin expiring in 2028.
(h)
DPL's state net operating loss carryforwards, which are presented on a post-apportioned basis, will begin expiring in 2027.
(i)
ACE's state net operating loss carryforwards, which are presented on a post-apportioned basis, will begin expiring in 2
Reconciliation of Unrecognized Tax Benefits Excluding Amounts Pertaining to Examined Tax Returns Foll Forward
The following tables provide a reconciliation of the Registrants’ unrecognized tax benefits as of December 31, 2017, 2016 and 2015: 
 
 
 
 
 
 
 
 
 
 
 
Successor
 
 
 
 
 
 
 
Exelon
 
Generation
 
ComEd
 
PECO
 
BGE
 
PHI
 
Pepco
 
DPL
 
ACE
Unrecognized tax benefits at January 1, 2017
$
916

 
$
490

 
$
(12
)
 
$
—

 
$
120

 
$
172

 
$
80

 
$
37

 
$
22

Increases based on tax positions related to 2017
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Decreases based on tax positions related to 2017
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Change to positions that only affect timing
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Increases based on tax positions prior to 2017
28

 
—

 
14

 
—

 
—

 
14

 
—

 
—

 
14

Decreases based on tax positions prior to 2017
(196
)
 
(17
)
 
—

 
—

 
—

 
(61
)
 
(21
)
 
(16
)
 
(22
)
Decrease from settlements with taxing authorities
(5
)
 
(5
)
 
—

 
—

 
—

 
—

 
—

 
—

 
—

Decreases from expiration of statute of limitations
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Unrecognized tax benefits at December 31, 2017
$
743

 
$
468

 
$
2

 
$
—

 
$
120


$
125


$
59


$
21


$
14

 
 
 
 
 
 
 
 
 
 
 
Successor
 
 
 
 
 

 

Exelon
 
Generation
 
ComEd
 
PECO
 
BGE
 
PHI
 
Pepco
 
DPL
 
ACE
Unrecognized tax benefits at January 1, 2016
$
1,078

 
$
534

 
$
142

 
$
—

 
$
120

 
$
22

 
$
8

 
$
3

 
$
—

Merger balance transfer
22

 
5

 
—

 
—

 
—

 
(5
)
 
—

 
—

 
—

Increases based on tax positions related to 2016
108

 
10

 
—

 
—

 
—

 
59

 
21

 
16

 
22

Decreases based on tax positions related to 2016
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Change to positions that only affect timing
(332
)
 
(12
)
 
(154
)
 
—

 
—

 
—

 
—

 
—

 
—

Increases based on tax positions prior to 2016
88

 
—

 
—

 
—

 
—

 
96

 
51

 
18

 
—

Decreases based on tax positions prior to 2016
(21
)
 
(20
)
 
—

 
—

 
—

 
—

 
—

 
—

 
—

Decrease from settlements with taxing authorities
(27
)
 
(27
)
 
—

 
—

 
—

 
—

 
—

 
—

 
—

Decreases from expiration of statute of limitations
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Unrecognized tax benefits at December 31, 2016
$
916


$
490


$
(12
)

$
—


$
120


$
172


$
80


$
37


$
22

 
 
 
 
 
 
 
 
 
 
 
Predecessor
 
 
 
 
 
 
 
Exelon
 
Generation
 
ComEd
 
PECO
 
BGE
 
PHI
 
Pepco
 
DPL
 
ACE
Unrecognized tax benefits at January 1, 2015
$
1,829

 
$
1,357

 
$
149

 
$
44

 
$
—

 
$
702

 
$
—

 
$
—

 
$
—

Increases based on tax positions related to 2015
108

 
—

 
—

 
—

 
106

 
—

 
—

 
—

 
—

Decreases based on tax positions related to 2015
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Change to positions that only affect timing
(705
)
 
(659
)
 
(7
)
 
(44
)
 
—

 
(688
)
 
—

 
—

 
—

Increases based on tax positions prior to 2015
79

 
65

 
—

 
—

 
14

 
11

 
8

 
3

 
—

Decreases based on tax positions prior to 2015
(116
)
 
(112
)
 
—

 
—

 
—

 
—

 
—

 
—

 
—

Decreases from settlements with taxing authorities
(31
)
 
(31
)
 
—

 
—

 
—

 
—

 
—

 
—

 
—

Decreases from expiration of statute of limitations
(86
)
 
(86
)
 
—

 
—

 
—

 
(3
)
 
—

 
—

 
—

Unrecognized tax benefits at December 31, 2015
$
1,078

 
$
534

 
$
142

 
$
—

 
$
120


$
22


$
8


$
3


$
—
Interest Income and Interest Expense Disclosure [Table Text Block]
The following tables set forth the net interest and penalty expense, including interest and penalties related to tax positions, recognized in Interest expense, net and Other, net in Other income and deductions in the Registrants’ Consolidated Statements of Operations and Comprehensive Income.
Net interest expense (income) for the years ended
Exelon
 
Generation
 
ComEd
 
PECO
 
BGE
 
Pepco
 
DPL
 
ACE
December 31, 2017
$
37

 
$
(1
)
 
$
11

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

December 31, 2016
165

 
(13
)
 
117

 
—

 
—

 
6

 
—

 
(1
)
December 31, 2015
(13
)
 
(31
)
 
7

 
—

 
—

 
(4
)
 
—

 
—

Net penalty expense (income) for the years ended
Exelon
 
Generation
 
ComEd
 
PECO
 
BGE
 
Pepco
 
DPL
 
ACE
December 31, 2017
$
(2
)
 
$
—

 
$
—

$
—

$
—

 
$
—

 
$
—

 
$
—

 
$
—

December 31, 2016
106

 
—

 
86

 
—

 
—

 
—

 
—

 
—

December 31, 2015
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—
Summary of Open Tax Years by Jurisdiction
Description of tax years open to assessment by major jurisdiction