Retirement Benefits (All Registrants)

6 Months Ended

Jun. 30, 2019

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.

Effective January 1, 2019, Exelon merged the Exelon Corporation Cash Balance Pension Plan (CBPP) into the Exelon Corporation Retirement Program (ECRP). The merging of the plans is not changing the benefits offered to the plan participants and, thus, has no impact on Exelon's pension obligation. However, beginning in 2019, actuarial losses and gains related to the CBPP and ECRP are being amortized over participants’ average remaining service period of the merged ECRP rather than each individual plan.

Defined Benefit Pension and Other Postretirement Benefits

During the first quarter of 2019, Exelon received an updated valuation of its pension and OPEB to reflect actual census data as of January 1, 2019. This valuation resulted in an increase to the pension and OPEB obligations of $75 million and $36 million, respectively. Additionally, accumulated other comprehensive loss increased by $39 million (after-tax) and regulatory assets and liabilities increased by $53 million and decreased by $5 million, respectively.

The majority of the 2019 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 4.31%. The majority of the 2019 other postretirement benefit cost is calculated using an expected long-term rate of return on plan assets of 6.67% for funded plans and a discount rate of 4.30%.

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 six months ended June 30, 2019 and 2018.



	Pension Benefits Three Months Ended June 30,						Other Postretirement Benefits Three Months Ended June 30,
	2019			2018			2019			2018
Components of net periodic benefit cost:
Service cost	$	89		$	102		$	24		$	28
Interest cost	221			200			47			44
Expected return on assets	(306		)	(313		)	(38		)	(43		)
Amortization of:
Prior service benefit	—			—			(44		)	(47		)
Actuarial loss	103			157			10			16
Settlement charges	—			1			—			—
Net periodic benefit cost	$	107		$	147		$	(1	)	$	(2	)




	Pension Benefits Six Months Ended June 30,						Other Postretirement Benefits Six Months Ended June 30,
	2019			2018			2019			2018
Components of net periodic benefit cost:
Service cost	$	178		$	202		$	47		$	56
Interest cost	442			401			94			88
Expected return on assets	(612		)	(626		)	(77		)	(87		)
Amortization of:
Prior service cost (benefit)	—			1			(89		)	(93		)
Actuarial loss	206			314			23			33
Settlement charges	—			1			—			—
Net periodic benefit cost	$	214		$	293		$	(2	)	$	(3	)

The amounts below represent Exelon's, Generation's, ComEd's, PECO's, BGE's, PHI's, Pepco's, DPL's, and ACE's pension and postretirement benefit plan costs. For Exelon, the service cost component is included in Operating and maintenance expense and Property, plant and equipment, net, for the three and six months ended June 30, 2019 and 2018, while the non-service cost components are included in Other, net and Regulatory assets for the three and six months ended June 30, 2019 and 2018. 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 in their consolidated financial statements for the three and six months ended June 30, 2019 and 2018.



	Three Months Ended June 30,				Six Months Ended June 30,
Pension and Other Postretirement Benefit Costs	2019		2018		2019		2018
Exelon	$	106	$	145	$	212	$	290
Generation	31		51		62		100
ComEd	23		44		47		88
PECO	3		5		5		10
BGE	16		15		30		30
PHI	24		17		48		34
Pepco	6		3		12		8
DPL	4		2		8		3
ACE	4		3		8		6

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 six months ended June 30, 2019 and 2018, respectively.



	Three Months Ended June 30,				Six Months Ended June 30,
Savings Plan Matching Contributions	2019		2018		2019		2018
Exelon	$	33	$	50	$	64	$	82
Generation	14		28		28		43
ComEd	9		8		16		15
PECO	2		2		5		4
BGE	2		2		4		4
PHI	3		3		6		6
Pepco	1		1		2		2
DPL	1		1		1		1
ACE	—		—		1		1