Related Party Transactions (Tables)

12 Months Ended

Dec. 31, 2018

The financial statements of PECO include related party transactions as presented in the tables below:



	For the Years Ended December 31,
	2018		2017			2016
Operating revenues from affiliates:
Generation ^(a)	$	2	$	1		$	3
BSC	3		5			3
ComEd	1		—			1
BGE	1		1			1
ACE	1		—			—
Total operating revenues from affiliates	$	8	$	7		$	8
Purchased power from affiliates
Generation^(b)	$	126	$	135		$	287
Operating and maintenance from affiliates:
BSC ^(c)	$	146	$	146		$	142
Generation	2		2			2
ComEd	7		—			1
BGE	1		1			1
Total operating and maintenance from affiliates	$	156	$	149		$	146
Interest expense to affiliates, net:
PECO Trust III	$	6	$	6		$	6
PECO Trust IV	6		6			6
Exelon Corporate	2		—			—
Generation	—		(1		)	—
Total interest expense to affiliates, net:	$	14	$	11		$	12
Capitalized costs
BSC ^(c)	$	64	$	59		$	57
Cash dividends paid to parent	$	306	$	288		$	277
Contributions from parent	$	89	$	16		$	18

PHI

The financial statements of PHI include related party transactions as presented in the tables below:



	Successor
	For the Year Ended December 31,		For the Year Ended December 31,		March 24, 2016 to December 31,
	2018		2017		2016
Operating revenues from affiliates:
BSC	$	12	$	48	$	44
PHISCO	1		2		—
Generation	2		—		1
Total operating revenues from affiliates	$	15	$	50	$	45
Purchased power from affiliates
Generation	$	355	$	463	$	486
Operating and maintenance from affiliates:
BSC ^(a)	$	147	$	145	$	86
Other	5		5		3
Total operating and maintenance from affiliates	$	152	$	150	$	89
Earnings (losses) in equity method investments:
Other	$	1	$	—	$	—
Capitalized costs:
BSC ^(a)	$	102	$	—	$	—
PHISCO ^(a)	79		—		—
Total capitalized costs	$	181	$	—	$	—
Cash dividends paid to parent	$	326	$	311	$	273
Contributions from parent	$	385	$	758	$	1,251



	December 31,
	2018		2017
Receivables from affiliates (current):
ComEd ^(a)	$	69	$	28
PECO ^(b)	30		26
BGE ^(c)	24		24
Pepco ^(d)	28		36
DPL ^(e)	7		12
ACE ^(f)	5		6
PHISCO ^(h)	—		1
Other	10		7
Total receivables from affiliates (current)	$	173	$	140
Intercompany money pool (current):
Exelon Corporate	$	100	$	—
PCI	—		54
Total intercompany money pool (current)	$	100	$	54
Payables to affiliates (current):
Exelon Corporate ⁽ⁱ⁾	$	17	$	21
BSC ^(h)	95		74
ComEd	19		12
PECO ^(b)	—		4
Other	8		12
Total payables to affiliates (current)	$	139	$	123
Other liabilities to affiliates (current):
ComEd ^(a)	$	14	$	—
Long-term debt to affiliates (noncurrent):
Exelon Corporate ^(k)	$	898	$	910
Payables to affiliates (noncurrent):
ComEd ^(j)	$	2,217	$	2,528
PECO ^(j)	389		537
Total payables to affiliates (noncurrent)	$	2,606	$	3,065

__________


(a)	Generation has an ICC-approved RFP contract with ComEd to provide a portion of ComEd’s electricity supply requirements. Generation also sells RECs and ZECs to ComEd.


(b)	Generation provides electric supply to PECO under contracts executed through PECO’s competitive procurement process. In addition, Generation has a ten-year agreement with PECO to sell solar AECs.


(c)	Generation provides a portion of BGE’s energy requirements under its MDPSC-approved market-based SOS and gas commodity programs.


(d)	Generation provides electric supply to Pepco under contracts executed through Pepco's competitive procurement process approved by the MDPSC and DCPSC.


(e)	Generation provides a portion of DPL's energy requirements under its MDPSC and DPSC approved market based SOS and gas commodity programs.


(f)	Generation provides electric supply to ACE under contracts executed through ACE's competitive procurement process.


(g)	Generation requires electricity for its own use at its generating stations. Generation purchases electricity and distribution and transmission services from PECO and BGE and only distribution and transmission services from ComEd for the delivery of electricity to its generating stations.


(h)	Generation receives a variety of corporate support services from BSC and PHISCO, including legal, human resources, financial, information technology and supply management services. All services are provided at cost, including applicable overhead. A portion of such services is capitalized.


(i)	The balance consists of interest owed to Exelon Corporation related to the senior unsecured notes, as well as, expense related to certain invoices Exelon Corporation processed on behalf of Generation.


(j)	Generation has long-term payables to ComEd and PECO as a result of the nuclear decommissioning contractual construct whereby, to the extent NDT funds are greater than the underlying ARO at the end of decommissioning, such amounts are due back to ComEd and PECO, as applicable, for payment to their respective customers. See Note 15—Asset Retirement Obligations for additional information.

(k)

In connection with the debt obligations assumed by Exelon as part of the Constellation merger, Exelon and subsidiaries of Generation (former Constellation subsidiaries) assumed intercompany loan agreements that mirror the terms and amounts of the third-party debt obligations of Exelon, resulting in intercompany notes payable included in Long-term Debt to affiliates in Generation’s Consolidated Balance Sheets and intercompany notes receivable at Exelon Corporate, which are eliminated in consolidation in Exelon’s Consolidated Balance Sheets.



	December 31,
	2018		2017
Prepaid voluntary employee beneficiary association trust ^(c)	$	5	$	2
Receivables from affiliates (current):
Voluntary employee beneficiary association trust	$	1	$	1
Generation	19		12
Total receivables from affiliates (current)	$	20	$	13
Receivables from affiliates (noncurrent):
Generation ^(d)	$	2,217	$	2,528
Payables to affiliates (current):
Generation ^(a)	$	55	$	28
BSC ^(b)	56		39
ComEd Financing III	4		4
Exelon Corporate	4		3
Total payables to affiliates (current)	$	119	$	74
Long-term debt to ComEd financing trust:
ComEd Financing III	$	205	$	205

__________


(a)	ComEd procures a portion of its electricity supply requirements from Generation under an ICC-approved RFP contract. ComEd also purchases RECs and ZECs from Generation.


(b)	ComEd receives a variety of corporate support services from BSC, including legal, human resources, financial, information technology and supply management services. All services are provided at cost, including applicable overhead. A portion of such services is capitalized.

(c)

The voluntary employee benefit association trusts covering active employees are included in corporate operations and are funded by the Registrants. A prepayment to the active welfare plans has accumulated due to actuarially determined contribution rates, which are the basis for ComEd’s contributions to the plans, being higher than actual claim expense incurred by the plans over time. The prepayment is included in other current assets.


(d)	ComEd has a long-term receivable from Generation as a result of the nuclear decommissioning contractual construct for generating facilities previously owned by ComEd. To the extent the assets associated with decommissioning are greater than the applicable ARO at the end of decommissioning, such amounts are due back to ComEd for payment to ComEd’s customers.



	December 31,
	2018		2017
Receivables from affiliates (current):
DPL	$	1	$	—
Payables to affiliates (current):
Exelon Corporation	$	1	$	—
Generation ^(b)	28		36
BSC ^(c)	19		11
PHISCO ^(c)	14		27
Total payables to affiliates (current)	$	62	$	74

__________


(a)	Pepco provides energy to Generation for Generation’s own use.


(b)	Pepco procures a portion of its electricity supply requirements from Generation under its MDPSC and DCPSC approved market based SOS commodity programs.


(c)	Pepco receives a variety of corporate support services from BSC and PHISCO, including legal, human resources, financial, information technology and supply management services. All services are provided at cost, including applicable overhead. A portion of such services is capitalized.


(d)	PES performed underground transmission, distribution construction and maintenance services, including services that are treated as capital costs, for Pepco.

The financial statements of DPL include related party transactions as presented in the tables below:



	For the Years Ended December 31,
	2018		2017		2016
Operating revenues from affiliates:
BSC	$	1	$	—	$	—
PHISCO	4		6		5
ComEd	1		—		—
ACE	1		—		—
Other	1		2		2
Total operating revenues from affiliates	$	8	$	8	$	7
Purchased power from affiliates
Generation ^(a)	$	120	$	179	$	154
Operating and maintenance:
PHISCO ^{(b), (d)}	$	—	$	165	$	194
PES ^(c)	—		9		8
Total operating and maintenance	$	—	$	174	$	202
Operating and maintenance from affiliates:
BSC ^(b)	$	51	$	31	$	18
PHISCO ^{(b), (d)}	111		—		—
Other	—		1		1
Total operating and maintenance from affiliates	$	162	$	32	$	19
Capitalized costs:
BSC ^(b)	$	28	$	—	$	—
PHISCO ^(b)	25		—		—
Total capitalized costs	$	53	$	—	$	—
Cash dividends paid to parent	$	96	$	112	$	54
Contributions from parent	$	150	$	—	$	152



	December 31,
	2018		2017
Payables to affiliates (current):
Generation	$	40	$	54
BGE	—		1
BSC^(a)	41		24
Exelon Corporate	6		6
Other	7		5
Total payables to affiliates (current)	$	94	$	90

__________


(a)	PHI receives a variety of corporate support services from BSC and PHISCO, including legal, human resources, financial, information technology and supply management services. All services are provided at cost, including applicable overhead. A portion of such services is capitalized.



	December 31,
	2018		2017
Payables to affiliates (current):
Exelon Corporate	$	1	$	—
Generation ^(a)	7		12
BSC ^(b)	11		7
PHISCO ^(b)	12		27
Pepco	1		—
ACE	1		—
Total payables to affiliates (current)	$	33	$	46

The financial statements of ComEd include related party transactions as presented in the tables below:



	For the Years Ended December 31,
	2018		2017		2016
Operating revenues from affiliates
Generation	$	9	$	9	$	7
BSC	7		6		6
PECO	10		—		1
BGE	1		—		1
Total operating revenues from affiliates	$	27	$	15	$	15
Purchased power from affiliates
Generation ^(a)	$	529	$	108	$	47
Operating and maintenance from affiliates
BSC ^(b)	$	265	$	270	$	225
PECO	1		—		1
BGE	1		—		1
Total operating and maintenance from affiliates	$	267	$	270	$	227
Interest expense to affiliates, net:
ComEd Financing III	$	13	$	13	$	13
Capitalized costs
BSC ^(b)	$	135	$	118	$	112
Cash dividends paid to parent	$	459	$	422	$	369
Contributions from parent	$	500	$	651	$	315



	December 31,
	2018		2017
Prepaid voluntary employee beneficiary association trust ^(d)	$	1	$	—
Receivables from affiliates (noncurrent):
Generation ^(e)	$	389	$	537
Payables to affiliates (current):
Generation^(b)	$	30	$	22
BSC^(c)	26		29
Exelon Corporate	2		1
PECO Trust III	1		1
Total payables to affiliates (current)	$	59	$	53
Long-term debt to financing trusts:
PECO Trust III	$	81	$	81
PECO Trust IV	103		103
Total long-term debt to financing trusts	$	184	$	184

__________


(a)	PECO provides energy to Generation for Generation’s own use.


(b)	PECO purchases electric supply from Generation under contracts executed through its competitive procurement process. In addition, PECO has five-year and ten-year agreements with Generation to purchase non-solar and solar AECs, respectively.


(c)	PECO receives a variety of corporate support services from BSC, including legal, human resources, financial, information technology and supply management services. All services are provided at cost, including applicable overhead. A portion of such services is capitalized.


(d)	The voluntary employee beneficiary association trusts covering active employees are included in corporate operations and are funded by the Registrants. A prepayment to the active welfare plans has accumulated due to actuarially determined contribution rates, which are the basis for PECO’s contributions to the plans, being higher than actual claim expense incurred by the plans over time.


(e)	PECO has a long-term receivable from Generation as a result of the nuclear decommissioning contractual construct, whereby, to the extent the assets associated with decommissioning are greater than the applicable ARO at the end of decommissioning, such amounts are due back to PECO for payment to PECO’s customers.

The financial statements of BGE include related party transactions as presented in the tables below:



	For the Years Ended December 31,
	2018		2017		2016
Operating revenues from affiliates:
Generation ^(a)	$	22	$	10	$	13
BSC	5		5		6
ComEd	1		—		1
PECO	1		1		1
Total operating revenues from affiliates	$	29	$	16	$	21
Purchased power from affiliates
Generation ^(b)	$	257	$	384	$	604
Operating and maintenance from affiliates:
BSC ^(c)	$	157	$	152	$	130
Generation	3		—		—
ComEd	1		—		1
PECO	1		1		1
Total operating and maintenance from affiliates	$	162	$	153	$	132
Interest expense to affiliates, net:
BGE Capital Trust II	$	—	$	10	$	16
Capitalized costs
BSC ^(c)	$	79	$	54	$	36
Cash dividends paid to parent	$	209	$	198	$	179
Contributions from parent	$	109	$	184	$	61



	December 31,
	2018		2017
Receivables from affiliates (current):
Other	$	1	$	1
Payables to affiliates (current):
Generation ^(b)	$	24	$	24
BSC ^(c)	38		25
Exelon Corporate	2		1
Other	1		2
Total payables to affiliates (current)	$	65	$	52

__________


(a)	BGE provides energy to Generation for Generation’s own use.


(b)	BGE procures a portion of its electricity and gas supply requirements from Generation under its MDPSC-approved market-based SOS and gas commodity programs.


(c)	BGE receives a variety of corporate support services from BSC, including legal, human resources, financial, information technology and supply management services. All services are provided at cost, including applicable overhead. A portion of such services is capitalized.

The financial statements of Generation include related party transactions as presented in the tables below:



	For the Years Ended December 31,
	2018			2017			2016
Operating revenues from affiliates:
ComEd ^(a)	$	523		$	121		$	47
PECO ^(b)	128			138			290
BGE ^(c)	260			388			608
Pepco ^(d)	206			255			295
DPL ^(e)	120			179			154
ACE^(f)	29			29			37
BSC	2			1			2
Other	—			4			6
Total operating revenues from affiliates	$	1,268		$	1,115		$	1,439
Purchased power and fuel from affiliates:
ComEd	$	(6	)	$	13		$	—
BGE	20			9			12
Other	—			(3		)	—
Total purchased power and fuel from affiliates	$	14		$	19		$	12
Operating and maintenance from affiliates:
ComEd ^(g)	$	7		$	7		$	7
PECO ^(g)	2			1			3
BGE ^(g)	2			1			1
Pepco	1			—			1
PHISCO	1			1			1
BSC ^(h)	652			689			650
Other	(4		)	(2		)	—
Total operating and maintenance from affiliates	$	661		$	697		$	663
Interest expense to affiliates, net:
Exelon Corporate ⁽ⁱ⁾	$	36		$	37		$	39
PCI	—			1			—
PECO	—			1			—
Total interest expense to affiliates, net:	$	36		$	39		$	39
Earnings (losses) in equity method investments
Qualifying facilities and domestic power projects	$	(30	)	$	(33	)	$	(25	)
Capitalized costs
BSC ^(h)	$	67		$	98		$	98
Cash distributions paid to member	$	1,001		$	659		$	922
Contributions from member	$	155		$	102		$	142



	December 31,
	2018		2017
Payables to affiliates (current):
ComEd Financing III	$	4	$	4
PECO Trust III	1		1
Total payables to affiliates (current)	$	5	$	5
Long-term debt to financing trusts:
ComEd Financing III	$	206	$	205
PECO Trust III	81		81
PECO Trust IV	103		103
Total long-term debt to financing trusts	$	390	$	389

__________

(a)

The intersegment profit associated with the 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 authoritative guidance. For Exelon, these amounts are included in operating revenues in the Consolidated Statements of Operations. See Note 4—Regulatory Matters for additional information.

The financial statements of Pepco include related party transactions as presented in the tables below:



	For the Years Ended December 31,
	2018		2017		2016
Operating revenues from affiliates:
Generation ^(a)	$	1	$	—	$	1
BSC	1		—		—
PHISCO	4		6		4
Total operating revenues from affiliates	$	6	$	6	$	5
Purchased power from affiliates
Generation ^(b)	$	206	$	255	$	295
Operating and maintenance:
PHISCO ^{(c), (e)}	$	—	$	219	$	263
PES ^(d)	—		29		39
Total operating and maintenance	$	—	$	248	$	302
Operating and maintenance from affiliates:
BSC ^(c)	$	89	$	53	$	31
PHISCO ^{(c), (e)}	137		5		4
Total operating and maintenance from affiliates	$	226	$	58	$	35
Capitalized costs:
BSC ^(c)	$	40	$	—	$	—
PHISCO ^(c)	32		—		—
Total capitalized costs	$	72	$	—	$	—
Cash dividends paid to parent	$	169	$	133	$	136
Contributions from parent	$	166	$	161	$	187

The financial statements of Exelon include related party transactions as presented in the tables below:



	For the Years Ended December 31,
	2018			2017			2016
Operating revenues from affiliates:
Generation ^(a)	(2		)	—
PECO ^(a)	—			1			1
BGE ^(a)	—			4			4
ACE ^(a)	—			—			—
Other	1			2			5
Total operating revenues from affiliates	$	(1	)	$	7		$	10
Interest expense to affiliates, net:
ComEd Financing III	$	13		$	14		$	13
PECO Trust III	6			6			6
PECO Trust IV	6			6			6
BGE Capital Trust II	—			10			16
Total interest expense to affiliates, net	$	25		$	36		$	41
Earnings (losses) in equity method investments:
Qualifying facilities and domestic power projects	$	(29	)	$	(33	)	$	(25	)
Other	1			1			1
Total losses in equity method investments	$	(28	)	$	(32	)	$	(24	)

ACE

The financial statements of ACE include related party transactions as presented in the tables below:



	For the Years Ended December 31,
	2018		2017		2016
Operating revenues from affiliates:
PHISCO	$	2	$	1	$	2
Other	1		1		1
Total operating revenues from affiliates	$	3	$	2	$	3
Purchased power from affiliates
Generation ^(a)	$	29	$	29	$	37
Operating and maintenance:
PHISCO ^{(b), (c)}	$	—	$	135	$	155
Operating and maintenance from affiliates:
BSC ^(b)	$	42	$	25	$	15
PHISCO ^{(b), (c)}	98		—		—
Other	2		3		3
Total operating and maintenance from affiliates	$	142	$	28	$	18
Capitalized costs:
BSC ^(b)	$	20	$	—	$	—
PHISCO ^(b)	21		—		—
Total capitalized costs	$	41	$	—	$	—
Cash dividends paid to parent	$	59	$	68	$	63
Contributions from parent	$	67	$	—	$	139



	December 31,
	2018		2017
Receivable from affiliate (current):
DPL	$	1	$	—
Payables to affiliates (current):
Generation ^(a)	$	5	$	6
BSC ^(b)	8		5
PHISCO ^(b)	13		18
Other	2		—
Total payables to affiliates (current)	$	28	$	29

__________


(a)	ACE purchases electric supply from Generation under contracts executed through its competitive procurement process.


(b)	ACE receives a variety of corporate support services from BSC and PHISCO, including legal, human resources, financial, information technology and supply management services. All services are provided at cost, including applicable overhead. A portion of such services is capitalized.


(c)	Due to the PHI entities' system conversion to Exelon's accounting systems on January 1, 2018, corporate support services received from PHISCO are reported in Operating and maintenance from affiliates in 2018.