Segment Information (All Registrants)

Operating segments for each of the Registrants are determined based on information used by the CODM in deciding how to evaluate performance and allocate resources at each of the Registrants.

Exelon has eleven reportable segments, which include Generation's five reportable segments consisting of the Mid-Atlantic, Midwest, New York, ERCOT and all other power regions referred to collectively as “Other Power Regions” and ComEd, PECO, BGE, and PHI's three reportable segments consisting of Pepco, DPL and ACE. ComEd, PECO, BGE, Pepco, DPL and ACE each represent a single reportable segment, and as such, no separate segment information is provided for these Registrants. Exelon, ComEd, PECO, BGE, Pepco, DPL and ACE's CODMs evaluate the performance of and allocate resources to ComEd, PECO, BGE, Pepco, DPL and ACE based on net income.

The basis for Generation's reportable segments is the integrated management of its electricity business that is located in different geographic regions, and largely representative of the footprints of ISO/RTO and/or NERC regions, which utilize multiple supply sources to provide electricity through various distribution channels (wholesale and retail). Generation's hedging strategies and risk metrics are also aligned to these same geographic regions. Descriptions of each of Generation’s five reportable segments are as follows:


•	Mid-Atlantic represents operations in the eastern half of PJM, which includes New Jersey, Maryland, Virginia, West Virginia, Delaware, the District of Columbia and parts of Pennsylvania and North Carolina.


•	Midwest represents operations in the western half of PJM and the United States footprint of MISO, excluding MISO’s Southern Region.


•	New York represents operations within ISO-NY.


•	ERCOT represents operations within Electric Reliability Council of Texas.


•	Other Power Regions:


•	New England represents the operations within ISO-NE.


•	South represents operations in the FRCC, MISO’s Southern Region, and the remaining portions of the SERC not included within MISO or PJM.


•	West represents operations in the WECC, which includes California ISO.


•	Canada represents operations across the entire country of Canada and includes AESO, OIESO and the Canadian portion of MISO.

The CODMs for Exelon and Generation evaluate the performance of Generation’s electric business activities and allocate resources based on RNF. Generation believes that RNF is a useful measurement of operational performance. RNF is not a presentation defined under GAAP and may not be comparable to other companies’ presentations or deemed more useful than the GAAP information provided elsewhere in this report. Generation’s operating revenues include all sales to third parties and affiliated sales to the Utility Registrants. Purchased power costs include all costs associated with the procurement and supply of electricity including capacity, energy and ancillary services. Fuel expense includes the fuel costs for Generation’s owned generation and fuel costs associated with tolling agreements. The results of Generation's other business activities are not regularly reviewed by the CODM and are therefore not classified as operating segments or included in the regional reportable segment amounts. These activities include natural gas, as well as other miscellaneous business activities that are not significant to Generation's overall operating revenues or results of operations. Further, Generation’s unrealized mark-to-market gains and losses on economic hedging activities and its amortization of certain intangible assets and liabilities relating to commodity contracts recorded at fair value from mergers and acquisitions are also excluded from the regional reportable segment amounts. Exelon and Generation do not use a measure of total assets in making decisions regarding allocating resources to or assessing the performance of these reportable segments.

During the first quarter of 2019, due to a change in economics in our New England region, Generation changed the way that information is reviewed by the CODM. The New England region is no longer regularly reviewed as a separate region by the CODM nor is it presented separately in any external information presented to third parties. Information for the New England region is reviewed by the CODM as part of Other Power Regions. Exelon and Generation retrospectively applied this change.

An analysis and reconciliation of the Registrants’ reportable segment information to the respective information in the consolidated financial statements for the three months ended March 31, 2019 and 2018 is as follows:

Three Months Ended March 31, 2019 and 2018



	Generation^(a)		ComEd		PECO		BGE		PHI		Other^(b)		Intersegment Eliminations			Exelon
Operating revenues^(c):
2019
Competitive businesses electric revenues	$	4,337	$	—	$	—	$	—	$	—	$	—	$	(315	)	$	4,022
Competitive businesses natural gas revenues	879		—		—		—		—		—		(1		)	878
Competitive businesses other revenues	80		—		—		—		—		—		(1		)	79
Rate-regulated electric revenues	—		1,408		620		658		1,153		—		(8		)	3,831
Rate-regulated natural gas revenues	—		—		280		318		71		—		(4		)	665
Shared service and other revenues	—		—		—		—		4		455		(457		)	2
Total operating revenues	$	5,296	$	1,408	$	900	$	976	$	1,228	$	455	$	(786	)	$	9,477



	Generation^(a)		ComEd		PECO			BGE		PHI		Other^(b)			Intersegment Eliminations			Exelon
2018
Competitive businesses electric revenues	$	4,509	$	—	$	—		$	—	$	—	$	—		$	(391	)	$	4,118
Competitive businesses natural gas revenues	955		—		—			—		—		—			(8		)	947
Competitive businesses other revenues	48		—		—			—		—		—			—			48
Rate-regulated electric revenues	—		1,512		634			658		1,169		—			(18		)	3,955
Rate-regulated natural gas revenues	—		—		232			319		78		—			(4		)	625
Shared service and other revenues	—		—		—			—		4		451			(455		)	—
Total operating revenues	$	5,512	$	1,512	$	866		$	977	$	1,251	$	451		$	(876	)	$	9,693
Intersegment revenues^(d):
2019	$	317	$	4	$	1		$	6	$	4	$	453		$	(785	)	$	—
2018	400		14		2			6		4		450			(876		)	—
Depreciation and amortization:
2019	$	405	$	251	$	81		$	136	$	180	$	22		$	—		$	1,075
2018	448		228		75			134		183		23			—			1,091
Operating expenses:
2019	$	4,963	$	1,135	$	678		$	756	$	1,054	$	459		$	(783	)	$	8,262
2018	5,218		1,223		724			800		1,125		444			(886		)	8,648
Interest expense, net:
2019	$	111	$	87	$	33		$	29	$	65	$	78		$	—		$	403
2018	101		89		33			25		63		60			—			371
Income (loss) before income taxes:
2019	$	652	$	197	$	193		$	196	$	122	$	(78	)	$	—		$	1,282
2018	202		211		111			156		74		(52		)	—			702
Income Taxes:
2019	$	224	$	40	$	25		$	36	$	5	$	(20	)	$	—		$	310
2018	9		46		(2		)	28		9		(31		)	—			59
Net income (loss):
2019	$	422	$	157	$	168		$	160	$	117	$	(58	)	$	—		$	966
2018	186		165		113			128		65		(21		)	—			636
Capital Expenditures
2019	$	511	$	503	$	222		$	258	$	358	$	21		$	—		$	1,873
2018	628		531		217			224		258		22			—			1,880
Total assets:
March 31, 2019	$	48,682	$	31,582	$	10,956		$	9,967	$	22,294	$	8,325		$	(10,213	)	$	121,593
December 31, 2018	47,556		31,213		10,642			9,716		21,984		8,355			(9,800		)	119,666

__________

(a)

Intersegment revenues for Generation in 2019 include revenue from sales to PECO of $45 million, sales to BGE of $76 million, sales to Pepco of $70 million, sales to DPL of $23 million and sales to ACE of $8 million in the Mid-Atlantic region, and sales to ComEd of $94 million in the Midwest region, which eliminate upon consolidation. Intersegment revenues for Generation in 2018 include revenue from sales to PECO of $37 million, sales to BGE of $65 million, sales to Pepco of $52 million, sales to DPL of $46 million and sales to ACE of $6 million in the Mid-Atlantic region, and sales to ComEd of $194 million in the Midwest region, which eliminate upon consolidation.


(b)	Other primarily includes Exelon’s corporate operations, shared service entities and other financing and investment activities.


(c)	Includes gross utility tax receipts from customers. The offsetting remittance of utility taxes to the governing bodies is recorded in expenses in the Registrants’ Consolidated Statements of Operations and Comprehensive Income. See Note 17 — Supplemental Financial Information for additional information on total utility taxes.

(d)

Intersegment revenues exclude sales to unconsolidated affiliates. The intersegment profit associated with Generation’s 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 accounting guidance. For Exelon, these amounts are included in Operating revenues in the Consolidated Statements of Operations and Comprehensive Income.

PHI:



	Pepco		DPL		ACE		Other^(b)			Intersegment Eliminations			PHI
Operating revenues^(a):
2019
Rate-regulated electric revenues	$	575	$	310	$	273	$	—		$	(5	)	$	1,153
Rate-regulated natural gas revenues	—		70		—		—			1			71
Shared service and other revenues	—		—		—		106			(102		)	4
Total operating revenues	$	575	$	380	$	273	$	106		$	(106	)	$	1,228
2018
Rate-regulated electric revenues	$	557	$	306	$	310	$	—		$	(4	)	$	1,169
Rate-regulated natural gas revenues	—		78		—		—			—			78
Shared service and other revenues	—		—		—		113			(109		)	4
Total operating revenues	$	557	$	384	$	310	$	113		$	(113	)	$	1,251
Intersegment revenues:
2019	$	2	$	2	$	1	$	105		$	(106	)	$	4
2018	2		2		1		112			(113		)	4
Depreciation and amortization:
2019	$	94	$	46	$	31	$	10		$	(1	)	$	180
2018	96		45		33		9			—			183
Operating expenses:
2019	$	491	$	308	$	252	$	108		$	(105	)	$	1,054
2018	501		335		287		114			(112		)	1,125
Interest expense, net:
2019	$	34	$	15	$	14	$	3		$	(1	)	$	65
2018	31		13		16		2			1			63
Income (loss) before income taxes:
2019	$	57	$	60	$	10	$	113		$	(118	)	$	122
2018	33		38		8		64			(69		)	74
Income Taxes:
2019	$	2	$	7	$	—	$	(4	)	$	—		$	5
2018	2		7		1		(1		)	—			9
Net income (loss):
2019	$	55	$	53	$	10	$	(5	)	$	4		$	117
2018	31		31		7		(8		)	4			65
Capital Expenditures
2019	$	144	$	78	$	128	$	8		$	—		$	358
2018	127		65		63		3			—			258
Total assets:
March 31, 2019	$	8,420	$	4,660	$	3,783	$	10,909		$	(5,478	)	$	22,294
December 31, 2018	8,299		4,588		3,699		10,819			(5,421		)	21,984

__________


(a)	Includes gross utility tax receipts from customers. The offsetting remittance of utility taxes to the governing bodies is recorded in expenses in the Registrants’ Consolidated Statements of Operations and Comprehensive Income. See Note 17 — Supplemental Financial Information for additional information on total utility taxes.


(b)	Other primarily includes PHI’s corporate operations, shared service entities and other financing and investment activities.

The following tables disaggregate the Registrants' revenue recognized from contracts with customers into categories that depict how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors. For Generation, the disaggregation of revenues reflects Generation’s two primary products of power sales and natural gas sales, with further disaggregation of power sales provided by geographic region. For the Utility Registrants, the disaggregation of revenues reflects the two primary utility services of rate-regulated electric sales and rate-regulated natural gas sales (where applicable), with further disaggregation of these tariff sales provided by major customer groups. Exelon’s disaggregated revenues are consistent with Generation and the Utility Registrants, but exclude any intercompany revenues.

Competitive Business Revenues (Generation):



	Three Months Ended March 31, 2019
	Revenues from external parties^(a)							Intersegment revenues			Total Revenues
	Contracts with customers		Other^(b)			Total		Intersegment revenues			Total Revenues
Mid-Atlantic	$	1,286	$	(24	)	$	1,262	$	(6	)	$	1,256
Midwest	1,055		59			1,114		(6		)	1,108
New York	409		(16		)	393		—			393
ERCOT	130		79			209		3			212
Other Power Regions	1,165		194			1,359		(6		)	1,353
Total Competitive Businesses Electric Revenues	4,045		292			4,337		(15		)	4,322
Competitive Businesses Natural Gas Revenues	584		295			879		15			894
Competitive Businesses Other Revenues^(c)	120		(40		)	80		—			80
Total Generation Consolidated Operating Revenues	$	4,749	$	547		$	5,296	$	—		$	5,296



	Three Months Ended March 31, 2018
	Revenues from external customers^(a)							Intersegment revenues			Total Revenues
	Contracts with customers		Other^(b)			Total		Intersegment revenues			Total Revenues
Mid-Atlantic	$	1,355	$	80		$	1,435	$	5		$	1,440
Midwest	1,273		71			1,344		2			1,346
New York	439		(29		)	410		(1		)	409
ERCOT	149		59			208		1			209
Other Power Regions	935		177			1,112		(32		)	1,080
Total Competitive Businesses Electric Revenues	4,151		358			4,509		(25		)	4,484
Competitive Businesses Natural Gas Revenues	522		433			955		25			980
Competitive Businesses Other Revenues^(c)	134		(86		)	48		—			48
Total Generation Consolidated Operating Revenues	$	4,807	$	705		$	5,512	$	—		$	5,512

__________


(a)	Includes all wholesale and retail electric sales to third parties and affiliated sales to the Utility Registrants.


(b)	Includes revenues from derivatives and leases.


(c)	Other represents activities not allocated to a region. See text above for a description of included activities. Includes unrealized mark-to-market losses of $52 million and $98 million in 2019 and 2018, respectively, and elimination of intersegment revenues.

Revenues net of purchased power and fuel expense (Generation):



	Three Months Ended March 31, 2019							Three Months Ended March 31, 2018
	RNF from external customers^(a)		Intersegment RNF			Total RNF		RNF from external customers^(a)			Intersegment RNF			Total RNF
Mid-Atlantic	$	679	$	4		$	683	$	836		$	14		$	850
Midwest	769		2			771		847			13			860
New York	262		3			265		282			1			283
ERCOT	98		(24		)	74		106			(70		)	36
Other Power Regions	174		(18		)	156		279			(43		)	236
Total Revenues net of purchased power and fuel for Reportable Segments	1,982		(33		)	1,949		2,350			(85		)	2,265
Other^(b)	109		33			142		(131		)	85			(46		)
Total Generation Revenues net of purchased power and fuel expense	$	2,091	$	—		$	2,091	$	2,219		$	—		$	2,219

__________


(a)	Includes purchases and sales from/to third parties and affiliated sales to the Utility Registrants.

(b)

Other represents activities not allocated to a region. See text above for a description of included activities. Includes unrealized mark-to-market losses of $28 million and $266 million in 2019 and 2018, respectively, accelerated nuclear fuel amortization associated with announced early plant retirements as discussed in Note 8 — Early Plant Retirements of $5 million and $15 million decrease to RNF in 2019 and 2018, respectively, and the elimination of intersegment RNF.

Electric and Gas Revenue by Customer Class (Utility Registrants):



	Three Months Ended March 31, 2019
Revenues from contracts with customers	ComEd			PECO			BGE		PHI		Pepco		DPL		ACE
Rate-regulated electric revenues
Residential	$	710		$	409		$	385	$	579	$	256	$	185	$	138
Small commercial & industrial	360			96			70		120		38		48		34
Large commercial & industrial	132			48			110		267		204		24		39
Public authorities & electric railroads	13			7			7		14		8		3		3
Other^(a)	217			62			80		157		53		47		57
Total rate-regulated electric revenues^(b)	$	1,432		$	622		$	652	$	1,137	$	559	$	307	$	271
Rate-regulated natural gas revenues
Residential	$	—		$	198		$	219	$	44	$	—	$	44	$	—
Small commercial & industrial	—			72			35		19		—		19		—
Large commercial & industrial	—			1			50		1		—		1		—
Transportation	—			7			—		4		—		4		—
Other^(c)	—			2			4		3		—		3		—
Total rate-regulated natural gas revenues^(d)	$	—		$	280		$	308	$	71	$	—	$	71	$	—
Total rate-regulated revenues from contracts with customers	$	1,432		$	902		$	960	$	1,208	$	559	$	378	$	271

Other revenues
Revenues from alternative revenue programs	$	(28	)	$	(3	)	$	10	$	15	$	14	$	—	$	1
Other rate-regulated electric revenues^(e)	4			1			3		4		2		1		1
Other rate-regulated natural gas revenues^(e)	—			—			3		1		—		1		—
Total other revenues	$	(24	)	$	(2	)	$	16	$	20	$	16	$	2	$	2
Total rate-regulated revenues for reportable segments	$	1,408		$	900		$	976	$	1,228	$	575	$	380	$	273



	Three Months Ended March 31, 2018
Revenues from contracts with customers	ComEd		PECO			BGE			PHI		Pepco		DPL		ACE
Rate-regulated electric revenues
Residential	$	717	$	403		$	393		$	610	$	259	$	191	$	160
Small commercial & industrial	385		101			68			115		32		46		37
Large commercial & industrial	152		58			106			259		190		23		46
Public authorities & electric railroads	14		8			7			14		7		4		3
Other^(a)	230		62			78			156		49		41		66
Total rate-regulated electric revenues^(b)	$	1,498	$	632		$	652		$	1,154	$	537	$	305	$	312
Rate-regulated natural gas revenues
Residential	$	—	$	161		$	224		$	47	$	—	$	47	$	—
Small commercial & industrial	—		62			34			18		—		18		—
Large commercial & industrial	—		1			47			4		—		4		—
Transportation	—		6			—			5		—		5		—
Other^(c)	—		2			27			4		—		4		—
Total rate-regulated natural gas revenues^(d)	$	—	$	232		$	332		$	78	$	—	$	78	$	—
Total rate-regulated revenues from contracts with customers	$	1,498	$	864		$	984		$	1,232	$	537	$	383	$	312

Other revenues
Revenues from alternative revenue programs	$	5	$	(1	)	$	(13	)	$	18	$	19	$	1	$	(2	)
Other rate-regulated electric revenues^(e)	9		3			4			1		1		—		—
Other rate-regulated natural gas revenues^(e)	—		—			2			—		—		—		—
Total other revenues	$	14	$	2		$	(7	)	$	19	$	20	$	1	$	(2	)
Total rate-regulated revenues for reportable segments	$	1,512	$	866		$	977		$	1,251	$	557	$	384	$	310

__________


(a)	Includes revenues from transmission revenue from PJM, wholesale electric revenue and mutual assistance revenue.


(b)	Includes operating revenues from affiliates of $4 million, $1 million, $2 million, $3 million, $2 million, $2 million and $1 million at ComEd, PECO, BGE, PHI, Pepco, DPL and ACE, respectively, in 2019 and $14 million, $2 million, $2 million, $4 million $2 million, $2 million and 1 million at ComEd, PECO, BGE, PHI, Pepco, DPL and ACE, respectively, in 2018.


(c)	Includes revenues from off-system natural gas sales.


(d)	Includes operating revenues from affiliates of less than $1 million and $4 million at PECO and BGE, respectively, in 2019 and 2018.


(e)	Includes late payment charge revenues.