Retirement Benefits (All Registrants)

Exelon sponsors defined benefit pension plans and other postretirement benefit plans for essentially all current employees. Substantially all non-union employees and electing union employees hired on or after January 1, 2001 participate in cash balance pension plans. Effective January 1, 2009, substantially all newly-hired union-represented employees participate in cash balance pension plans. Effective February 1, 2018, most newly-hired Generation and BSC non-represented employees are not eligible for pension benefits and will instead be eligible to receive an enhanced non-discretionary employer contribution in an Exelon defined contribution savings plan. Effective January 1, 2018, most newly-hired non-represented employees are not eligible for OPEB benefits and employees represented by Local 614 are not eligible for retiree health care benefits.

During the first quarter of 2017, in connection with the acquisition of FitzPatrick, Exelon established a new qualified pension plan and a new OPEB plan and recorded a provisional obligation for Fitzpatrick employees based on information available at the merger date of $38 million and $11 million, respectively. As permitted by business combinations authoritative guidance, during the third quarter of 2017, Exelon updated those obligations based on a final valuation for FitzPatrick employees as of the merger date of March 31, 2017. The updated obligations for pension and OPEB were $16 million and $17 million, respectively. See Note 4 — Mergers, Acquisitions and Dispositions for additional information of the acquisition of FitzPatrick.

Defined Benefit Pension and Other Postretirement Benefits

During the first quarter of 2018, Exelon received an updated valuation of its pension and OPEB to reflect actual census data as of January 1, 2018. This valuation resulted in an increase to the pension and OPEB obligations of $23 million and $14 million, respectively. Additionally, accumulated other comprehensive loss decreased by $18 million (after-tax) and regulatory assets and liabilities increased by $61 million and $1 million, respectively.

The majority of the 2018 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 3.62%. The majority of the 2018 other postretirement benefit cost is calculated using an expected long-term rate of return on plan assets of 6.60% for funded plans and a discount rate of 3.61%.

A portion of the net periodic benefit cost for all plans is capitalized within the Consolidated Balance Sheets. The following table presents the components of Exelon's net periodic benefit costs, prior to capitalization, for the three and nine months ended September 30, 2018 and 2017.



	Pension Benefits Three Months Ended September 30,						Other Postretirement Benefits Three Months Ended September 30,
	2018			2017^(a)			2018			2017^(a)
Components of net periodic benefit cost:
Service cost	$	100		$	98		$	28		$	26
Interest cost	201			211			43			45
Expected return on assets	(312		)	(300		)	(43		)	(39		)
Amortization of:
Prior service cost (benefit)	—			(1		)	(47		)	(47		)
Actuarial loss	158			152			18			15
Settlement charges	—			1			—			—
Net periodic benefit cost	$	147		$	161		$	(1	)	$	—



	Pension Benefits Nine Months Ended September 30,						Other Postretirement Benefits Nine Months Ended September 30,
	2018			2017^(a)			2018			2017^(a)
Components of net periodic benefit cost:
Service cost	$	303		$	290		$	84		$	79
Interest cost	602			632			131			136
Expected return on assets	(939		)	(898		)	(130		)	(121		)
Amortization of:
Prior service cost (benefit)	1			—			(140		)	(140		)
Actuarial loss	472			455			50			46
Settlement charges	1			3			—			—
Net periodic benefit cost	$	440		$	482		$	(5	)	$	—

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(a)	FitzPatrick net benefit costs are included for the period after the acquisition date of March 31, 2017.

The amounts below represent Exelon's, Generation's, ComEd's, PECO's, BGE's, BSC's, PHI's, Pepco's, DPL's, ACE's, and PHISCO's allocated portion of the pension and postretirement benefit plan costs. As a result of new pension guidance effective on January 1, 2018, certain balances have been reclassified on Exelon’s Consolidated Statements of Operations and Comprehensive Income for the three and nine months ended September 30, 2017. The amounts below represent the Registrants’ as well as BSC's and PHISCO's pension and postretirement benefit plan net periodic benefit costs. For Exelon, the service cost component is included in Operating and maintenance expense and Property, plant and equipment, net, for the three and nine months ended September 30, 2018 and 2017, while the non-service cost components are included in Other, net and Regulatory assets for the three and nine months ended September 30, 2018 and in Other, net and Property, plant and equipment, net, for the three and nine months ended September 30, 2017. For the Registrants other than Exelon, the service cost and non-service cost components are included in Operating and maintenance expense and Property, plant and equipment, net on their consolidated financial statements for the three and nine months ended September 30, 2018 and 2017.



	Three Months Ended September 30,				Nine Months Ended September 30,
Pension and Other Postretirement Benefit Costs	2018		2017		2018		2017
Exelon^(a)(b)	$	145	$	161	$	435	$	482
Generation^(b)	50		57		151		170
ComEd	45		44		133		131
PECO	5		7		14		21
BGE	15		16		44		48
BSC^(c)	13		13		42		40
PHI^(a)	17		24		51		72
Pepco	3		6		10		19
DPL	2		3		5		10
ACE	3		3		10		10
PHISCO^(d)	9		12		26		33

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(a)	Exelon reflects the consolidated pension and other postretirement benefit costs of Generation, ComEd, PECO, BGE, BSC, and PHI. PHI reflects the consolidated pension and other postretirement benefit costs of Pepco, DPL, ACE, and PHISCO.


(b)	FitzPatrick net benefit costs are included for the period after the acquisition date of March 31, 2017.


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


(d)	These amounts represent amounts billed to Pepco, DPL and ACE through intercompany allocations. These amounts are not included in Pepco, DPL or ACE 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 and/or after-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, 2018 and 2017, respectively.



	Three Months Ended September 30,				Nine Months Ended September 30,
Savings Plan Matching Contributions	2018		2017		2018		2017
Exelon^(a)(b)	$	44	$	34	$	126	$	97
Generation^(b)	23		14		65		42
ComEd	8		9		23		24
PECO	2		3		7		7
BGE	2		3		5		7
BSC^(c)	5		2		16		7
PHI^(a)	4		3		10		10
Pepco	1		1		2		3
DPL	1		1		2		2
ACE	1		—		2		1
PHISCO^(d)	1		1		4		4

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(a)	Exelon reflects the consolidated savings plan matching contributions of Generation, ComEd, PECO, BGE, BSC, and PHI. PHI reflects the consolidated savings plan matching contributions of Pepco, DPL, ACE, and PHISCO.


(b)	FitzPatrick net benefit costs are included for the period after the acquisition date of March 31, 2017.


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


(d)	These amounts represent amounts billed to Pepco and DPL through intercompany allocations. These amounts are not included in Pepco or DPL amounts above.