PART I. FINANCIAL INFORMATION This section presents unaudited consolidated financial statements and notes for Exelon and its subsidiary registrants [ITEM 1. FINANCIAL STATEMENTS](index=11&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS) This section presents unaudited consolidated financial statements for Exelon and its subsidiaries, including detailed statements and comprehensive notes [Exelon Corporation Financial Statements](index=12&type=section&id=Exelon%20Corporation) This subsection provides Exelon Corporation's unaudited consolidated statements of operations, cash flows, and balance sheets Exelon Corporation - Consolidated Statement of Operations Highlights (Unaudited) | (In millions, except per share data) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | **Total operating revenues** | $5,427 | $5,361 | $12,141 | $11,403 | | **Operating income** | $927 | $913 | $2,463 | $2,026 | | **Net income attributable to common shareholders** | $391 | $448 | $1,300 | $1,106 | | **Diluted Earnings per share** | $0.39 | $0.45 | $1.29 | $1.10 | Exelon Corporation - Consolidated Cash Flow Highlights (Unaudited, Six Months Ended) | (In millions) | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | **Net cash flows provided by operating activities** | $2,711 | $2,454 | | **Net cash flows used in investing activities** | $(3,962) | $(3,467) | | **Net cash flows provided by financing activities** | $1,563 | $1,447 | Exelon Corporation - Consolidated Balance Sheet Highlights (Unaudited) | (In millions) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total current assets** | $8,676 | $8,384 | | **Total assets** | $111,147 | $107,784 | | **Total current liabilities** | $9,156 | $9,611 | | **Total liabilities** | $83,527 | $80,863 | | **Total shareholders' equity** | $27,620 | $26,921 | [Commonwealth Edison Company Financial Statements](index=17&type=section&id=Commonwealth%20Edison%20Company) This subsection presents Commonwealth Edison Company's unaudited consolidated statements of operations and cash flows ComEd - Consolidated Statement of Operations Highlights (Unaudited) | (In millions) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | **Total operating revenues** | $1,836 | $2,079 | $3,901 | $4,174 | | **Operating income** | $380 | $404 | $854 | $717 | | **Net income** | $228 | $270 | $530 | $463 | ComEd - Consolidated Cash Flow Highlights (Unaudited, Six Months Ended) | (In millions) | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | **Net cash flows provided by operating activities** | $1,041 | $1,302 | | **Net cash flows used in investing activities** | $(1,188) | $(1,100) | | **Net cash flows provided by (used in) financing activities** | $362 | $(45) | [PECO Energy Company Financial Statements](index=22&type=section&id=PECO%20Energy%20Company) This subsection details PECO Energy Company's unaudited consolidated statement of operations PECO - Consolidated Statement of Operations Highlights (Unaudited) | (In millions) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | **Total operating revenues** | $1,000 | $891 | $2,333 | $1,945 | | **Operating income** | $190 | $141 | $525 | $346 | | **Net income** | $136 | $90 | $402 | $239 | [Baltimore Gas and Electric Company Financial Statements](index=27&type=section&id=Baltimore%20Gas%20and%20Electric%20Company) This subsection provides Baltimore Gas and Electric Company's unaudited statement of operations BGE - Statement of Operations Highlights (Unaudited) | (In millions) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | **Total operating revenues** | $1,029 | $928 | $2,583 | $2,225 | | **Operating income** | $120 | $93 | $500 | $423 | | **Net income** | $55 | $44 | $315 | $308 | [Pepco Holdings LLC Financial Statements](index=32&type=section&id=Pepco%20Holdings%20LLC) This subsection presents Pepco Holdings LLC's unaudited consolidated statement of operations PHI - Consolidated Statement of Operations Highlights (Unaudited) | (In millions) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | **Total operating revenues** | $1,579 | $1,471 | $3,357 | $3,077 | | **Operating income** | $271 | $267 | $604 | $538 | | **Net income** | $143 | $158 | $337 | $326 | [Potomac Electric Power Company Financial Statements](index=37&type=section&id=Potomac%20Electric%20Power%20Company) This subsection details Potomac Electric Power Company's unaudited statement of operations Pepco - Statement of Operations Highlights (Unaudited) | (In millions) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | **Total operating revenues** | $776 | $700 | $1,635 | $1,459 | | **Operating income** | $151 | $166 | $315 | $285 | | **Net income** | $84 | $108 | $181 | $183 | [Delmarva Power & Light Company Financial Statements](index=42&type=section&id=Delmarva%20Power%20%26%20Light%20Company) This subsection provides Delmarva Power & Light Company's unaudited statement of operations DPL - Statement of Operations Highlights (Unaudited) | (In millions) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | **Total operating revenues** | $421 | $390 | $969 | $880 | | **Operating income** | $71 | $58 | $182 | $157 | | **Net income** | $39 | $34 | $108 | $101 | [Atlantic City Electric Company Financial Statements](index=47&type=section&id=Atlantic%20City%20Electric%20Company) This subsection presents Atlantic City Electric Company's unaudited consolidated statement of operations ACE - Consolidated Statement of Operations Highlights (Unaudited) | (In millions) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | **Total operating revenues** | $384 | $383 | $757 | $740 | | **Operating income** | $51 | $45 | $111 | $99 | | **Net income** | $24 | $21 | $56 | $50 | [Note 1. Significant Accounting Policies](index=52&type=section&id=1.%20Significant%20Accounting%20Policies) This note outlines significant accounting policies, company structure, and intercompany service arrangements - Exelon is a utility services holding company focused on energy transmission and distribution through its six main subsidiaries: ComEd, PECO, BGE, Pepco, DPL, and ACE[127](index=127&type=chunk) - The financial statements are presented on a combined basis for all registrants, with intercompany transactions eliminated. Support services like legal, HR, and IT are provided to subsidiaries at cost by Exelon's business services subsidiary, BSC, and PHI's subsidiary, PHISCO[129](index=129&type=chunk)[130](index=130&type=chunk) [Note 2. Regulatory Matters](index=53&type=section&id=2.%20Regulatory%20Matters) This note details regulatory updates, including rate cases, transmission rates, and new energy legislation impacts Completed Distribution Base Rate Case Proceedings in 2025 | Registrant/Jurisdiction | Service | Requested Increase ($M) | Approved Increase ($M) | Approved ROE | | :--- | :--- | :--- | :--- | :--- | | ComEd - Illinois | Electric | $1,487 | $1,045 | 8.905% | | ComEd - Illinois | Electric | $624 | $623 | 9.89% | | PECO - Pennsylvania | Electric/Gas | $575 | $432 | N/A | | Pepco - Maryland | Electric | $111 | $45 | 9.50% | | DPL - Delaware | Electric | $39 | $28 | 9.60% | Pending Distribution Base Rate Case Proceedings | Registrant/Jurisdiction | Service | Requested Increase ($M) | Requested ROE | | :--- | :--- | :--- | :--- | | DPL - Delaware | Natural Gas | $40 | 10.65% | | ACE - New Jersey | Electric | $109 | 10.70% | 2025 Electric Transmission Formula Rate Updates (Effective June 1, 2025) | Registrant | Total Revenue Requirement Increase/(Decrease) ($M) | Allowed ROE | | :--- | :--- | :--- | | ComEd | $127 | 11.50% | | PECO | $22 | 10.35% | | BGE | $35 | 10.50% | | Pepco | $51 | 10.50% | | DPL | $23 | 10.50% | | ACE | $(57) | 10.50% | - On May 20, 2025, the Next Generation Energy Act was signed into law in Maryland, which prohibits utilities from filing for reconciliation of actual costs and revenues to amounts approved in multi-year plans after January 1, 2025. This led BGE and DPL to derecognize certain regulatory assets and liabilities[162](index=162&type=chunk) - A FERC audit of ComEd related to overhead cost allocation was settled and approved on April 4, 2025. This resulted in a **$70 million charge** for the probable disallowance of certain capitalized construction costs, which are not expected to be recovered in future rates[168](index=168&type=chunk) [Note 3. Revenue from Contracts with Customers](index=60&type=section&id=3.%20Revenue%20from%20Contracts%20with%20Customers) This note describes primary revenue sources and future revenues from unsatisfied performance obligations - The primary sources of revenue are regulated electric and gas tariff sales, distribution, and transmission services[178](index=178&type=chunk) Future Revenues from Unsatisfied Performance Obligations as of June 30, 2025 | Year | Exelon ($M) | PHI ($M) | Pepco ($M) | DPL ($M) | ACE ($M) | | :--- | :--- | :--- | :--- | :--- | :--- | | 2025 | 4 | 4 | 3 | 0 | 1 | | 2026 | 5 | 5 | 5 | 0 | 0 | | 2027 | 6 | 6 | 5 | 1 | 0 | | 2028 | 6 | 6 | 5 | 0 | 1 | | 2029 and thereafter | 102 | 102 | 80 | 11 | 11 | | **Total** | **$123** | **$123** | **$98** | **$12** | **$13** | [Note 4. Segment Information](index=61&type=section&id=4.%20Segment%20Information) This note provides financial information by reportable segment, including operating revenues and net income - Exelon has six reportable segments: ComEd, PECO, BGE, and PHI's three segments (Pepco, DPL, and ACE)[191](index=191&type=chunk) Exelon Operating Revenues by Segment (Six Months Ended June 30, 2025) | (In millions) | ComEd | PECO | BGE | PHI | Other | Intersegment Eliminations | Total | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Total operating revenues** | $3,901 | $2,333 | $2,583 | $3,357 | $934 | $(967) | $12,141 | Exelon Net Income by Segment (Six Months Ended June 30, 2025) | (In millions) | ComEd | PECO | BGE | PHI | Other | Total | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Net income (loss)** | $530 | $402 | $315 | $337 | $(284) | $1,300 | [Note 5. Accounts Receivable](index=71&type=section&id=5.%20Accounts%20Receivable) This note presents the allowance for credit losses on customer accounts receivable for Exelon and its subsidiaries Allowance for Credit Losses on Customer Accounts Receivable (Six Months Ended June 30, 2025) | (In millions) | Exelon | ComEd | PECO | BGE | PHI | | :--- | :--- | :--- | :--- | :--- | :--- | | **Balance at Dec 31, 2024** | $406 | $109 | $133 | $56 | $108 | | **Current period provision** | $142 | $29 | $46 | $26 | $41 | | **Write-offs, net** | $(83) | $(16) | $(25) | $(16) | $(26) | | **Balance at June 30, 2025** | $465 | $122 | $154 | $66 | $123 | [Note 6. Income Taxes](index=74&type=section&id=6.%20Income%20Taxes) This note reconciles the effective income tax rate and discusses tax legislation and private letter rulings Effective Income Tax Rate Reconciliation (Six Months Ended June 30, 2025) | | Exelon | ComEd | PECO | BGE | PHI | | :--- | :--- | :--- | :--- | :--- | :--- | | **U.S. Federal statutory rate** | 21.0% | 21.0% | 21.0% | 21.0% | 21.0% | | State income taxes, net | 5.5% | 7.6% | (2.8)% | 6.2% | 6.7% | | Plant basis differences | (4.3)% | (0.9)% | (12.8)% | (1.5)% | (0.7)% | | Excess deferred tax amortization | (6.5)% | (9.0)% | (1.5)% | (4.1)% | (4.1)% | | **Effective income tax rate** | **15.6%** | **18.1%** | **4.1%** | **21.3%** | **22.7%** | - The One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025, extends certain TCJA tax benefits and modifies IRA renewable energy credits, but is not expected to have a direct material impact on the Registrants' financial statements[259](index=259&type=chunk) - Utility Registrants (except PECO) have filed for Private Letter Rulings (PLRs) from the IRS regarding the allocation of Net Operating Loss Carryforward (NOLC) benefits for ratemaking. This could materially reduce regulatory liabilities for Excess Deferred Income Taxes (EDITs) and accumulated deferred income taxes in the rate base[263](index=263&type=chunk)[264](index=264&type=chunk) [Note 7. Retirement Benefits](index=77&type=section&id=7.%20Retirement%20Benefits) This note details the net periodic benefit cost for pension and other post-employment benefits Exelon Net Periodic Benefit Cost (Six Months Ended June 30) | (In millions) | 2025 | 2024 | | :--- | :--- | :--- | | **Pension Benefits** | $121 | $104 | | **OPEB** | $15 | $16 | [Note 8. Derivative Financial Instruments](index=78&type=section&id=8.%20Derivative%20Financial%20Instruments) This note describes derivative instrument use for commodity and interest rate risk management, and recent swap terminations - The Registrants use derivative instruments to manage commodity price and interest rate risk, not for speculation. Utility hedging programs for energy procurement are designed to have no direct earnings impact as costs are recovered from customers through regulatory mechanisms[279](index=279&type=chunk)[283](index=283&type=chunk) - In February 2025, Exelon terminated floating-to-fixed swaps with a notional value of **$765 million**, resulting in a cash receipt of **$16 million**. The accumulated AOCI gain of **$13 million** (net of tax) will be amortized into interest expense over 5 and 10 years[291](index=291&type=chunk) [Note 9. Debt and Credit Agreements](index=81&type=section&id=9.%20Debt%20and%20Credit%20Agreements) This note details long-term debt issuances and amendments to syndicated revolving credit facilities Long-Term Debt Issued (Six Months Ended June 30, 2025) | Company | Amount ($M) | Type | Interest Rate | Maturity | | :--- | :--- | :--- | :--- | :--- | | Exelon | $1,000 | Jr. Sub. Notes | 6.50% | 2055 | | Exelon | $500 | Notes | 5.125% | 2031 | | Exelon | $500 | Notes | 5.875% | 2055 | | ComEd | $725 | First Mortgage Bonds | 5.95% | 2055 | | BGE | $650 | Notes | 5.45% | 2035 | | Pepco | $200 | First Mortgage Bonds | 5.48% | 2040 | | DPL | $125 | First Mortgage Bonds | 5.28% | 2035 | | ACE | $100 | First Mortgage Bonds | 5.28% | 2035 | - On August 29, 2024, Exelon and its Utility Registrants amended and restated their syndicated revolving credit facilities, extending the maturity to August 29, 2029[302](index=302&type=chunk) [Note 10. Fair Value of Financial Assets and Liabilities](index=84&type=section&id=10.%20Fair%20Value%20of%20Financial%20Assets%20and%20Liabilities) This note presents the fair value of long-term debt and financial instruments, categorized by hierarchy Fair Value of Long-Term Debt (including current portion) as of June 30, 2025 | (In millions) | Carrying Amount | Fair Value | | :--- | :--- | :--- | | **Exelon** | $47,345 | $42,715 | | **ComEd** | $12,750 | $11,157 | | **PECO** | $5,705 | $4,852 | | **BGE** | $6,040 | $5,435 | | **PHI** | $9,535 | $8,393 | - The report provides a detailed breakdown of assets and liabilities measured at fair value, categorized by the three-level hierarchy (Level 1, 2, and 3). Key items include cash equivalents, rabbi trust investments, and derivative instruments[317](index=317&type=chunk)[318](index=318&type=chunk) [Note 11. Commitments and Contingencies](index=91&type=section&id=11.%20Commitments%20and%20Contingencies) This note outlines PHI Merger obligations, environmental liabilities, and legal proceedings - As of June 30, 2025, Exelon and its subsidiaries had total remaining obligations of **$513 million** related to the PHI Merger commitments, extending through 2026[336](index=336&type=chunk) - The company has accrued **$382 million** for environmental investigation and remediation liabilities as of June 30, 2025, with **$317 million** related to former Manufactured Gas Plant (MGP) sites[348](index=348&type=chunk) - Pepco has entered into a consent decree to pay **$47 million** to resolve its liability for past and future costs related to the Anacostia River Interim Record of Decision (ROD). The first installment of **$12 million** was paid on April 9, 2025[353](index=353&type=chunk) - The three-year term of ComEd's Deferred Prosecution Agreement (DPA) with the U.S. Attorney's Office ended on July 17, 2023, and the pending charge was dismissed. Related shareholder derivative lawsuits are in the process of a proposed settlement[358](index=358&type=chunk)[360](index=360&type=chunk) [Note 12. Shareholders' Equity](index=98&type=section&id=12.%20Shareholders'%20Equity) This note discusses the ATM equity program, share issuances, and forward sale agreements - Exelon established a new At-the-Market (ATM) equity program on May 2, 2025, for up to **$2.5 billion**, replacing a previous **$1 billion** program[367](index=367&type=chunk) - In Q1 2025, Exelon issued approximately **4.0 million shares** for net proceeds of **$173 million**. It also entered into forward sale agreements for a total of **15.5 million shares** during the first half of 2025[368](index=368&type=chunk)[369](index=369&type=chunk)[372](index=372&type=chunk) - As of June 30, 2025, **$2.1 billion** of Common stock remained available for sale under the ATM program[374](index=374&type=chunk) [Note 13. Changes in Accumulated Other Comprehensive Income (Loss)](index=100&type=section&id=13.%20Changes%20in%20Accumulated%20Other%20Comprehensive%20Income) This note details changes in accumulated other comprehensive income, net of tax, for hedges and benefit items Exelon Changes in AOCI, Net of Tax (Six Months Ended June 30, 2025) | (In millions) | Cash Flow Hedges | Pension/OPEB Items | Total | | :--- | :--- | :--- | :--- | | **Balance at Dec 31, 2024** | $45 | $(765) | $(720) | | **Net current-period OCI** | $(14) | $16 | $2 | | **Balance at June 30, 2025** | $31 | $(749) | $(718) | [Note 14. Supplemental Financial Information](index=101&type=section&id=14.%20Supplemental%20Financial%20Information) This note provides supplemental financial information, including taxes other than income taxes Exelon - Taxes other than income taxes (Six Months Ended June 30) | (In millions) | 2025 | 2024 | | :--- | :--- | :--- | | **Utility taxes** | $496 | $447 | | **Property** | $222 | $212 | | **Payroll** | $67 | $67 | [Note 15. Related Party Transactions](index=105&type=section&id=15.%20Related%20Party%20Transactions) This note details service company costs incurred by subsidiaries from affiliates Service Company Costs (Six Months Ended June 30, 2025) | (In millions) | Operating & Maintenance from Affiliates | Capitalized Costs | | :--- | :--- | :--- | | **ComEd** | $200 | $124 | | **PECO** | $120 | $54 | | **BGE** | $125 | $65 | | **PHI** | $100 | $133 | [ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](index=108&type=section&id=ITEM%202.%20MANAGEMENT'S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) This section analyzes Exelon's financial condition, operational results, key business drivers, and liquidity across segments [Exelon Corporation](index=108&type=section&id=Exelon%20Corporation) This subsection analyzes Exelon Corporation's GAAP and adjusted operating earnings, highlighting net income and EPS drivers Exelon GAAP Results of Operations (Net Income) | (In millions) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | **Exelon** | $391 | $448 | $1,300 | $1,106 | | **ComEd** | $228 | $270 | $530 | $463 | | **PECO** | $136 | $90 | $402 | $239 | | **BGE** | $55 | $44 | $315 | $308 | | **PHI** | $143 | $158 | $337 | $326 | - For the six months ended June 30, 2025, Net income increased by **$194 million** to **$1.3 billion**, and diluted EPS increased to **$1.29** from **$1.10**, primarily driven by favorable rate increases across its utilities and timing of distribution earnings at ComEd[405](index=405&type=chunk) Reconciliation of GAAP Net Income to Adjusted (non-GAAP) Operating Earnings | (In millions) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Net income attributable to common shareholders (GAAP)** | $1,300 | $1,106 | | Adjustments (FERC audit, regulatory matters, etc.) | $24 | $50 | | **Adjusted (non-GAAP) operating earnings** | $1,324 | $1,156 | [Results of Operations By Registrant](index=115&type=section&id=Results%20of%20Operations%20By%20Registrant) This subsection details the financial performance and net income drivers for each of Exelon's subsidiary registrants - **ComEd:** Net income for the six months ended June 30, 2025 increased by **$67 million** to **$530 million**, primarily due to the timing of distribution earnings under its Multi-Year Rate Plan (MRP), higher rate base, and higher returns on regulatory assets[433](index=433&type=chunk) - **PECO:** Net income for the six months ended June 30, 2025 increased by **$163 million** to **$402 million**, driven by higher electric and gas distribution rates and less unfavorable weather compared to the prior year[448](index=448&type=chunk) - **BGE:** Net income for the six months ended June 30, 2025 increased by **$7 million** to **$315 million**, mainly due to favorable electric and gas distribution rates, partially offset by the derecognition of certain regulatory assets/liabilities following the Next Generation Energy Act[464](index=464&type=chunk) - **PHI:** Consolidated net income for the six months ended June 30, 2025 increased by **$11 million** to **$337 million**, reflecting mixed results across its subsidiaries. Favorable distribution rates at Pepco and higher DISC rates at DPL were partially offset by lower impacts from Maryland multi-year plan reconciliations and higher interest expense[478](index=478&type=chunk) [Liquidity and Capital Resources](index=137&type=section&id=Liquidity%20and%20Capital%20Resources) This subsection discusses Registrants' funding strategies, cash flow changes, capital expenditures, and dividend policy - The Registrants fund their capital-intensive businesses through a combination of internally generated cash, capital market offerings, and bank borrowings. As of June 30, 2025, they had access to credit facilities with aggregate commitments of **$4.0 billion**[526](index=526&type=chunk) Change in Cash Flows from Operating Activities (Six Months Ended June 30, 2025 vs 2024) | (In millions) | Exelon | ComEd | PECO | BGE | PHI | | :--- | :--- | :--- | :--- | :--- | :--- | | **Increase (decrease)** | $257 | $(261) | $266 | $164 | $164 | Estimated Capital Expenditures for 2025 | (In millions) | Total | | :--- | :--- | | **Exelon** | $8,875 | | **ComEd** | $3,200 | | **PECO** | $1,875 | | **BGE** | $1,850 | | **PHI** | $2,150 | - Exelon's Board of Directors approved a quarterly dividend of **$0.40 per share** for 2025[536](index=536&type=chunk) [ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](index=146&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) This section details Registrants' market risks, including commodity, credit, and interest rate risks, and their management - The company's primary market risks include commodity price fluctuations, counterparty credit risk, and interest rate risk. These are managed through comprehensive risk management policies and hedging strategies[568](index=568&type=chunk)[569](index=569&type=chunk) - Due to operating under cost-based rate regulation, hedging programs for energy procurement have no direct earnings impact as costs are fully recovered from customers through approved regulatory mechanisms[568](index=568&type=chunk) [ITEM 4. CONTROLS AND PROCEDURES](index=147&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) This section confirms effective disclosure controls and procedures, with no material changes to internal financial controls - As of June 30, 2025, the principal executive and financial officers of each Registrant concluded that their disclosure controls and procedures were effective[577](index=577&type=chunk) - There were no changes in internal control over financial reporting during the second quarter of 2025 that materially affected, or are reasonably likely to materially affect, any of the Registrants' internal control over financial reporting[577](index=577&type=chunk) PART II. OTHER INFORMATION This section provides additional information, including legal proceedings, risk factors, and exhibits [ITEM 1. LEGAL PROCEEDINGS](index=147&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) This section incorporates by reference material lawsuits and regulatory proceedings from the 2024 Form 10-K and Notes 2 and 11 - Information regarding material lawsuits and regulatory proceedings is incorporated by reference from the 2024 Form 10-K and Notes 2 (Regulatory Matters) and 11 (Commitments and Contingencies) of this report[579](index=579&type=chunk) [ITEM 1A. RISK FACTORS](index=147&type=section&id=ITEM%201A.%20RISK%20FACTORS) The Registrants' risk factors as of June 30, 2025, remain consistent with those described in the 2024 Form 10-K - As of June 30, 2025, the Registrants' risk factors were consistent with those described in the 2024 Form 10-K[580](index=580&type=chunk) [ITEM 5. OTHER INFORMATION](index=148&type=section&id=ITEM%205.%20OTHER%20INFORMATION) No officers or directors adopted, modified, or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements in Q2 2025 - No officers or directors adopted, modified, or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during the second quarter of 2025[581](index=581&type=chunk) [ITEM 6. EXHIBITS](index=148&type=section&id=ITEM%206.%20EXHIBITS) This section lists exhibits filed with Form 10-Q, including security holder instruments, officer certifications, and Inline XBRL data - The report includes exhibits such as supplemental indentures, officer certifications (Rule 13a-14(a) and Section 1350), and Inline XBRL data files[583](index=583&type=chunk)[584](index=584&type=chunk)[585](index=585&type=chunk)

Core Insights - Exelon Corporation's second-quarter 2025 earnings of 39 cents per share exceeded the Zacks Consensus Estimate of 37 cents by 5.4% but decreased 17% from the previous year's 47 cents due to lower utility earnings and increased costs [1][2][9] - Total revenues for Exelon were reported at $5.42 billion, falling short of the Zacks Consensus Estimate of $5.53 billion by 1.9%, but representing a 1.2% increase from the year-ago figure of $5.36 billion [3][9] - The company reaffirmed its 2025 EPS guidance in the range of $2.64-$2.74 per share and plans to invest $38 billion in infrastructure through 2028 [11][9] Financial Performance - Exelon's total operating expenses rose nearly 1% year over year to $4.5 billion, while operating income increased by 1.5% to $0.92 billion [5] - Interest expenses reached $531 million, marking a nearly 9.9% increase from the previous year's quarter [5] - Adjusted net income for the quarter was $392 million, down from $472 million in the year-ago quarter [5] Segment Performance - Commonwealth Edison Company (ComEd) reported adjusted earnings of $228 million, a decline of 20% year over year due to timing of distribution earnings and lower transmission peak load [6] - PECO Energy Company (PECO) saw adjusted operating earnings increase by 46.2% year over year to $136 million, driven by higher electric and gas distribution rates [7] - Baltimore Gas and Electric Company (BGE) reported adjusted earnings of $55 million, up 22.2% year over year due to higher distribution rates [8] Customer and Delivery Metrics - Exelon served more customers compared to the previous year, with total electric deliveries reaching 41,684 gigawatt hours in the first half of 2025, an increase of 1.7% from the year-ago period [4]

Financial Data and Key Metrics Changes - Exelon reported operating earnings of $0.39 per share in Q2 2025, down from $0.47 per share in the same period in 2024, reflecting a decrease of 8 cents per share [15] - The company remains on track to meet its full-year operating earnings guidance of $2.64 to $2.74 per share [6][17] - Year-to-date performance indicates strong financial results despite significant storm activity and customer relief efforts [16] Business Line Data and Key Metrics Changes - The decrease in earnings was primarily driven by higher distribution and transmission rates, offset by timing issues at ComEd and increased storm costs at PECO [15][16] - The company has a robust pipeline for large load, holding firm at over 17 gigawatts, with an additional 16 gigawatts expected to formalize by year-end [13] Market Data and Key Metrics Changes - The Illinois legislative session did not pass an energy omnibus bill, but discussions continue regarding energy efficiency, transmission, and resource planning [10] - The capacity auction results indicate that demand growth is outpacing new generation entry, highlighting the need for proactive state involvement in energy supply [11] Company Strategy and Development Direction - Exelon is focused on investing $38 billion through 2028, with an additional $10 billion to $15 billion in identified transmission work beyond that [14] - The company aims to grow earnings at an annualized rate of 5% to 7% through 2028, supported by a balanced capital strategy [14][21] - Exelon emphasizes the importance of state involvement in energy supply solutions, advocating for utility-owned generation to enhance reliability and affordability [26][59] Management's Comments on Operating Environment and Future Outlook - Management highlighted the need for certainty and control from states regarding energy supply, especially in light of rising costs and supply volatility [11][35] - The company is optimistic about future legislative actions that could enhance energy efficiency and reliability [10][12] - Management remains committed to delivering consistent growth and long-term value for communities and shareholders [27] Other Important Information - Exelon has successfully completed nearly 80% of its planned long-term debt financing needs for 2025, indicating strong investor confidence [20] - The company is actively pursuing regulatory approvals for various rate cases across its jurisdictions, with significant updates expected in the coming months [18][19] Q&A Session Summary Question: Which jurisdiction is most ripe for further action on utility-owned generation or energy efficiency? - Management indicated that Maryland has a definitive request for 3,000 MW of power, which will be evaluated by October, potentially triggering further action [37] Question: When could the $10 billion to $15 billion transmission opportunity move into the base plan? - Management stated that clarity on this would typically come in Q4, aligning with ongoing cluster studies and regulatory filings [44] Question: Is there a unique opportunity for ComEd related to quantum computing? - Management confirmed that the establishment of a quantum computing campus in Illinois has already attracted interest from other companies, indicating potential growth opportunities [50][51] Question: What are the thoughts on building regulated generation? - Management expressed a willingness to consider regulated generation as part of a portfolio approach, emphasizing the need for certainty and customer benefits [57][60] Question: How are data center discussions progressing? - Management noted significant activity in Illinois and other jurisdictions, with expectations for announcements following cluster studies in the third and fourth quarters [63][65] Question: What is the anticipated impact of capacity auction results on customer bills? - Management indicated that BGE customers could see a bill impact of approximately $1.50, with efforts ongoing to mitigate these increases [72][73]

Financial Data and Key Metrics Changes - Exelon reported operating earnings of $0.39 per share in Q2 2025, down from $0.47 per share in Q2 2024, reflecting a decrease of 8 cents per share [14] - The company remains on track to meet its full-year operating earnings guidance of $2.64 to $2.74 per share [6][17] - Year-to-date performance indicates strong financial results despite significant storm activity and customer relief efforts [16] Business Line Data and Key Metrics Changes - The decrease in earnings was primarily driven by higher distribution and transmission rates, offset by timing issues and costs related to the customer relief fund and storm impacts [14][15] - The company has maintained a robust pipeline for large load, holding firm at over 17 gigawatts, with an additional 16 gigawatts expected to formalize by year-end [12] Market Data and Key Metrics Changes - The Illinois legislative session concluded without passing an energy omnibus bill, but discussions continue regarding energy efficiency, transmission, and resource planning [9] - The volatility in supply costs and warnings from institutions like NERC and DOE highlight the need for proactive state involvement in energy solutions [10] Company Strategy and Development Direction - Exelon is focused on investing $38 billion through 2028, with an additional $10 billion to $15 billion identified for transmission work beyond that [13] - The company aims to grow earnings at an annualized rate of 5% to 7% through 2028, supported by a balanced capital strategy [13][21] - Exelon emphasizes the importance of customer-centric solutions, including utility-owned generation and energy efficiency programs to mitigate rising costs [26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate the evolving energy landscape and emphasized the importance of state engagement in energy solutions [10][26] - The management team highlighted the need for certainty and control from states regarding utility-owned generation and energy efficiency initiatives [36][58] Other Important Information - The company has successfully completed nearly 80% of its planned long-term debt financing needs for the year, indicating strong investor demand [20] - Exelon is advocating for legislative changes to lower energy costs for customers, including adjustments to the corporate alternative minimum tax [22] Q&A Session Summary Question: Which jurisdiction is most ripe for further action on utility-owned generation or energy efficiency? - Management indicated that various states, including Maryland and New Jersey, are exploring options for utility-owned generation and energy efficiency initiatives [34][36] Question: When can the $10 billion to $15 billion transmission opportunity be expected to move into the base plan? - The company plans to provide clarity on this in Q4, aligning it with ongoing cluster studies and regulatory filings [45][46] Question: Is there a unique opportunity for ComEd related to quantum computing? - Management confirmed that the establishment of a quantum computing campus in Illinois presents significant opportunities for ComEd, with interest from other companies wanting to locate nearby [51][52] Question: Will regulated generation fit into Exelon's model? - Management affirmed that regulated generation could fit into their model, emphasizing the need for certainty and customer benefits [58][60] Question: What is the timeline for large load projects in the pipeline? - Management outlined that 10% of the load is expected to be online by 2028, with further phases progressing thereafter [71] Question: What is the anticipated impact of PJM capacity auction results on customer bills? - Management indicated that BGE customers could see a bill increase of approximately $1.50, with efforts ongoing to mitigate these impacts [73][75]

Core Insights - Exelon reported revenue of $5.43 billion for the quarter ended June 2025, reflecting a 1.2% increase year-over-year, but fell short of the Zacks Consensus Estimate by 1.91% [1] - The company's EPS was $0.39, down from $0.47 in the same quarter last year, but exceeded the consensus estimate of $0.37 by 5.41% [1] Revenue Performance - PECO's operating revenues were $1 billion, surpassing the average estimate of $984.62 million, marking a 12.2% year-over-year increase [4] - ComEd's operating revenues were $1.84 billion, below the average estimate of $2.05 billion, showing an 11.7% decline year-over-year [4] - BGE's operating revenues reached $1.03 billion, exceeding the average estimate of $999.01 million, with a 10.9% year-over-year increase [4] - PHI's operating revenues were $1.58 billion, above the average estimate of $1.51 billion, reflecting a 7.3% year-over-year increase [4] Electric and Natural Gas Revenues - ComEd's electric revenues were $2.06 billion, slightly above the average estimate of $2.05 billion, with a year-over-year decrease of 3% [4] - ACE's electric revenues were $397 million, exceeding the average estimate of $376.69 million, showing a 1.7% decline year-over-year [4] - DPL's electric revenues reached $387 million, surpassing the average estimate of $380.36 million, with a 7.2% year-over-year increase [4] - Pepco's electric revenues were $791 million, above the average estimate of $728.13 million, reflecting a 14.5% year-over-year increase [4] - PECO's natural gas revenues were $120 million, below the average estimate of $136.18 million, but showed a 29% year-over-year increase [4] - BGE's electric revenues were $853 million, slightly above the average estimate of $829.28 million, with a 6.6% year-over-year increase [4] - PECO's electric revenues were $872 million, below the average estimate of $886.01 million, with a 10% year-over-year increase [4] - BGE's natural gas revenues were $184 million, below the average estimate of $195.24 million, reflecting a 22.7% year-over-year increase [4] Stock Performance - Exelon's shares returned +3.1% over the past month, outperforming the Zacks S&P 500 composite's +2.7% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Financial Performance - Q2 2025 GAAP earnings were $039 per share, compared to $045 per share in Q2 2024[10] - Adjusted Operating Earnings* for Q2 2025 were $039 per share, versus $047 per share in Q2 2024[10] - Exelon is affirming its 2025 EPS* guidance of $264 - $274 per share, based on expected average outstanding shares of 1014 million[10, 11] - The company reaffirms its 2024-2028 EPS* CAGR of 5-7%, expecting to be at the midpoint or better[10] Rate Base and Capital Investment - Exelon anticipates a 74% rate base growth resulting from $38 billion of capital investment, with a potential $10-15 billion transmission opportunity beyond the plan[10] - The company has priced all $700 million of 2025's annualized equity need and ~$157 million (~22%) of 2026's annualized equity need to support the capital investment plan through 2028[10] Regulatory and Operational Updates - Base rate cases are on track, with orders expected in the next 6-9 months[10] - Exelon has a large load pipeline of 17+ GW as of Q4 2024, with an additional 16 GW undergoing analysis and design in Q2 2025[10] - Filed base distribution rate cases for 2025 account for ~5% of Exelon's consolidated rate base[17] Balance Sheet and Credit Metrics - Exelon maintains a strong balance sheet providing strategic and financial flexibility[18] - The company's average credit metrics since separation are ~13% [20] - Exelon established a $25 billion ATM program on May 2, 2025, effective through May 2, 2028[23] Transmission Opportunities - Exelon sees $10-15 billion of identified transmission opportunity beyond the plan[35]

Core Viewpoint - Exelon reported quarterly earnings of $0.39 per share, exceeding the Zacks Consensus Estimate of $0.37 per share, but down from $0.47 per share a year ago, indicating a mixed performance in earnings despite a positive surprise [1][2]. Financial Performance - The company achieved revenues of $5.43 billion for the quarter ended June 2025, which was 1.91% below the Zacks Consensus Estimate, but slightly up from $5.36 billion year-over-year [2]. - Over the last four quarters, Exelon has surpassed consensus EPS estimates four times and topped revenue estimates three times [2]. Stock Performance - Exelon shares have increased approximately 17.6% since the beginning of the year, outperforming the S&P 500's gain of 8.2% [3]. - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6]. Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.69 on revenues of $6.18 billion, and for the current fiscal year, it is $2.69 on revenues of $24.17 billion [7]. - The outlook for the Utility - Electric Power industry, where Exelon operates, is favorable, ranking in the top 34% of over 250 Zacks industries, suggesting potential for outperformance [8].

[Exelon Reports Second Quarter 2025 Results](index=1&type=section&id=Exelon%20Reports%20Second%20Quarter%202025%20Results) Exelon reported Q2 2025 results, detailing financial performance, operating company contributions, and recent corporate developments [Financial Highlights & Guidance](index=1&type=section&id=Earnings%20Release%20Highlights) Exelon reported a decrease in both GAAP and Adjusted (non-GAAP) operating earnings for Q2 2025, yet reaffirmed its full-year 2025 guidance and long-term growth targets Q2 2025 Earnings and Full-Year Guidance | Metric | Q2 2025 | Q2 2024 | Change | Full Year 2025 Guidance | | :--- | :--- | :--- | :--- | :--- | | GAAP Net Income per Share | $0.39 | $0.45 | -13.3% | N/A | | Adjusted (non-GAAP) Operating EPS | $0.39 | $0.47 | -17.0% | $2.64 - $2.74 (Affirmed) | - The company reaffirmed its long-term operating EPS compounded annual growth target of **5-7%** from 2024 to 2028[4](index=4&type=chunk) - Exelon has successfully executed approximately **80%** of its planned debt financings for 2025 and priced **100%** of its **$700 million** annualized equity financing need for 2025[4](index=4&type=chunk) [Consolidated Performance Analysis](index=2&type=section&id=Consolidated%20Performance%20Analysis) Exelon's Q2 2025 consolidated earnings were negatively impacted by distribution timing, increased storm costs, and higher interest expenses, partially offset by rate increases - Utility earnings decreased primarily due to distribution earnings timing and lower transmission peak load at ComEd, increased storm costs at PECO, and lower Maryland multi-year plan reconciliations with higher credit loss/interest expense at PHI[9](index=9&type=chunk) - These negative impacts were partially offset by distribution and transmission rate increases at PECO, BGE, ComEd, and PHI[9](index=9&type=chunk) - Exelon holding company costs increased due to a one-time charitable contribution to the Customer Relief Fund and higher interest expenses[9](index=9&type=chunk) [Operating Company Performance](index=2&type=section&id=Operating%20Company%20Results) Q2 2025 performance varied across Exelon's operating companies, with PECO and BGE showing increased net income due to higher rates, while ComEd and PHI experienced decreases [ComEd](index=2&type=section&id=ComEd) ComEd's Q2 2025 GAAP net income and Adjusted operating earnings decreased due to distribution earnings timing and lower transmission peak load, partially offset by investments ComEd Q2 Financial Results (in millions) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | GAAP Net Income | $228 | $270 | -15.6% | | Adjusted (non-GAAP) Operating Earnings | $228 | $285 | -20.0% | [PECO](index=2&type=section&id=PECO) PECO reported significant increases in Q2 2025 GAAP net income and Adjusted operating earnings, driven by higher electric and gas distribution rates, despite increased storm costs PECO Q2 Financial Results (in millions) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | GAAP Net Income | $136 | $90 | +51.1% | | Adjusted (non-GAAP) Operating Earnings | $136 | $93 | +46.2% | [BGE](index=4&type=section&id=BGE) BGE's Q2 2025 GAAP net income and Adjusted operating earnings increased due to updated distribution rates reflecting new investments, partially offset by regulatory asset derecognition BGE Q2 Financial Results (in millions) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | GAAP Net Income | $55 | $45 | +22.2% | | Adjusted (non-GAAP) Operating Earnings | $55 | $45 | +22.2% | [PHI](index=4&type=section&id=PHI) PHI experienced decreases in Q2 2025 GAAP net income and Adjusted operating earnings, mainly due to lower Maryland multi-year plan reconciliations, increased expenses, and storm costs PHI Q2 Financial Results (in millions) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | GAAP Net Income | $143 | $158 | -9.5% | | Adjusted (non-GAAP) Operating Earnings | $144 | $162 | -11.1% | [Recent Developments](index=4&type=section&id=Recent%20Developments%20and%20Second%20Quarter%20Highlights) Exelon declared a regular quarterly dividend and engaged in significant financing activities, with BGE and ComEd issuing new long-term debt to manage commercial paper and fund corporate purposes - On July 29, 2025, Exelon's Board of Directors declared a regular quarterly dividend of **$0.40 per share**[13](index=13&type=chunk) - There were no new rate case developments during the second quarter of 2025[13](index=13&type=chunk) Q2 2025 Financing Activities | Date | Issuer | Action | Amount (millions) | Details | | :--- | :--- | :--- | :--- | :--- | | May 16, 2025 | BGE | Issued 5.45% Notes due 2035 | $650 | To repay commercial paper and for general corporate purposes | | May 19, 2025 | ComEd | Issued 5.95% Series Bonds due 2055 | $725 | To repay commercial paper and for general corporate purposes | | July 1, 2025 | DPL | Reoffered 2020 Series A Bonds | $78.4 | Interest rate modified to 3.60%, maturity to 2031 | [Supplemental Information](index=5&type=section&id=Supplemental%20Information) This section provides additional financial details, including a reconciliation of GAAP to non-GAAP earnings and cautionary statements regarding forward-looking information [Adjusted (non-GAAP) Operating Earnings Reconciliation](index=5&type=section&id=Adjusted%20%28non-GAAP%29%20Operating%20Earnings%20Reconciliation) Exelon reconciles GAAP Net Income to Adjusted (non-GAAP) Operating Earnings, showing minor tax adjustments for Q2 2025 and adjustments for environmental liabilities, a FERC audit, and cost management for Q2 2024 Q2 2025 Reconciliation of GAAP to Non-GAAP Earnings (per share) | Item | Amount (per share) | | :--- | :--- | | 2025 GAAP Net Income | $0.39 | | Income Tax-Related Adjustments | $0.00 | | **2025 Adjusted (non-GAAP) Operating Earnings** | **$0.39** | Q2 2024 Reconciliation of GAAP to Non-GAAP Earnings (per share) | Item | Amount (per share) | | :--- | :--- | | 2024 GAAP Net Income | $0.45 | | Change in FERC Audit Liability | $0.01 | | Cost management charge | $0.01 | | Other minor adjustments | $0.00 | | **2024 Adjusted (non-GAAP) Operating Earnings** | **$0.47** | - Management believes Adjusted (non-GAAP) operating earnings represent earnings directly related to ongoing business operations and uses this measure for performance evaluation, resource allocation, and incentive compensation[19](index=19&type=chunk) [Cautionary Statements Regarding Forward-Looking Information](index=6&type=section&id=Cautionary%20Statements%20Regarding%20Forward-Looking%20Information) This section warns investors that forward-looking statements are subject to risks and uncertainties, including regulatory actions, environmental liabilities, cybersecurity threats, and extreme weather, which could cause actual results to differ - The press release contains forward-looking statements that are subject to risks and uncertainties[20](index=20&type=chunk) - Key risk factors include, but are not limited to: unfavorable legislative/regulatory actions, environmental liabilities, cybersecurity risks, extreme weather events, and instability in capital markets[20](index=20&type=chunk) - Investors are advised not to place undue reliance on these statements and are directed to the company's SEC filings (Form 10-K, 10-Q) for a more detailed discussion of risk factors[22](index=22&type=chunk)[23](index=23&type=chunk) [Earnings Release Attachments](index=8&type=section&id=Earnings%20Release%20Attachments) This section provides detailed financial statements, including the consolidating statement of operations, balance sheets, cash flows, detailed earnings reconciliation, and utility operating statistics [Consolidating Statement of Operations](index=9&type=section&id=Consolidating%20Statement%20of%20Operations) For Q2 2025, Exelon's consolidated operating revenues increased slightly to **$5.43 billion**, but higher operating and interest expenses led to a **12.7%** decrease in net income attributable to common shareholders Consolidated Statement of Operations Highlights (Three Months Ended June 30, in millions) | (in millions) | 2025 | 2024 | % Change | | :--- | :--- | :--- | :--- | | Operating Revenues | $5,427 | $5,361 | +1.2% | | Total Operating Expenses | $4,502 | $4,455 | +1.1% | | Operating Income | $927 | $913 | +1.5% | | Net Income Attributable to Common Shareholders | $391 | $448 | -12.7% | [Consolidated Balance Sheets](index=11&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2025, Exelon's total assets increased to **$111.1 billion**, driven by property, plant, and equipment, while total liabilities also grew due to increased long-term debt Consolidated Balance Sheet Highlights (in millions) | Account | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Total Current Assets | $8,676 | $8,384 | | Property, Plant, and Equipment, net | $80,609 | $78,182 | | **Total Assets** | **$111,147** | **$107,784** | | Total Current Liabilities | $9,156 | $9,611 | | Long-term Debt | $45,527 | $42,947 | | **Total Liabilities** | **$83,527** | **$80,863** | | **Total Shareholders' Equity** | **$27,620** | **$26,921** | [Consolidated Statements of Cash Flows](index=13&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2025, net cash from operating activities increased to **$2.71 billion**, while net cash used in investing activities rose to **$3.96 billion** due to higher capital expenditures Consolidated Cash Flow Summary (Six Months Ended June 30, in millions) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net Cash from Operating Activities | $2,711 | $2,454 | | Net Cash used in Investing Activities | ($3,962) | ($3,467) | | Net Cash from Financing Activities | $1,563 | $1,447 | | **Increase in Cash** | **$312** | **$434** | [Detailed Earnings Reconciliation and Analysis](index=14&type=section&id=Reconciliation%20of%20GAAP%20Net%20Income%20to%20Adjusted%20%28non-GAAP%29%20Operating%20Earnings%20and%20Analysis%20of%20Earnings) The Q2 2025 decrease in adjusted operating EPS from **$0.47** to **$0.39** was primarily driven by higher operating and maintenance expenses and increased interest expense, partially offset by rate increases Key Drivers of YoY Change in Q2 Adjusted (non-GAAP) Operating EPS (per share) | Driver | Impact per Share | | :--- | :--- | | 2024 Adjusted (non-GAAP) Operating EPS | **$0.47** | | Distribution and transmission rates | +$0.14 | | Operating and maintenance expense | -$0.13 | | Interest expense and other | -$0.06 | | Weather & Load | -$0.02 | | Other minor factors | -$0.01 | | **2025 Adjusted (non-GAAP) Operating EPS** | **$0.39** | [Utility Operating Statistics](index=16&type=section&id=Statistics) This section presents detailed operational and financial statistics for each utility, including electric and natural gas deliveries, revenues by customer class, and weather impacts [ComEd Statistics](index=16&type=section&id=ComEd%20Statistics) ComEd's Q2 2025 total electric deliveries were flat, but total electric revenues decreased by **11.7%** to **$1.84 billion**, mainly due to lower large commercial & industrial customer revenue ComEd Q2 2025 Statistics | Metric | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Total Electric Deliveries (GWhs) | 20,370 | 20,368 | 0.0% | | Total Electric Revenues (millions) | $1,836 | $2,079 | -11.7% | [PECO Statistics](index=17&type=section&id=PECO%20Statistics) PECO's Q2 2025 total electric and natural gas revenues increased by **12.2%** to **$1.0 billion**, driven by higher rates, despite a **4.1%** decrease in electric deliveries PECO Q2 2025 Statistics | Metric | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Total Electric Deliveries (GWhs) | 8,339 | 8,695 | -4.1% | | Total Natural Gas Deliveries (mmcfs) | 13,407 | 12,963 | +3.4% | | Total Revenues (millions) | $1,000 | $891 | +12.2% | [BGE Statistics](index=19&type=section&id=BGE%20Statistics) BGE's Q2 2025 total electric and natural gas revenues grew by **10.9%** to **$1.03 billion**, supported by higher rates, despite a **3.0%** decrease in electric deliveries BGE Q2 2025 Statistics | Metric | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Total Electric Deliveries (GWhs) | 6,603 | 6,808 | -3.0% | | Total Natural Gas Deliveries (mmcfs) | 14,166 | 13,979 | +1.3% | | Total Revenues (millions) | $1,029 | $928 | +10.9% | [Pepco Statistics](index=22&type=section&id=Pepco%20Statistics) Pepco's Q2 2025 electric revenues increased by **10.9%** to **$776 million**, with electric deliveries growing by **1.7%**, reflecting the impact of higher rates and increased large commercial customer deliveries Pepco Q2 2025 Statistics | Metric | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Total Electric Deliveries (GWhs) | 5,666 | 5,572 | +1.7% | | Total Electric Revenues (millions) | $776 | $700 | +10.9% | [DPL Statistics](index=23&type=section&id=DPL%20Statistics) DPL's Q2 2025 total electric and natural gas revenues rose by **7.9%** to **$421 million**, driven by higher rates, despite nearly flat electric deliveries and a **3.2%** decrease in natural gas deliveries DPL Q2 2025 Statistics | Metric | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Total Electric Deliveries (GWhs) | 2,721 | 2,723 | -0.1% | | Total Natural Gas Deliveries (mmcfs) | 3,025 | 3,125 | -3.2% | | Total Revenues (millions) | $421 | $390 | +7.9% | [ACE Statistics](index=26&type=section&id=ACE%20Statistics) ACE's Q2 2025 total electric revenues were flat at **$384 million**, while electric deliveries decreased by **3.7%**, with rate adjustments offsetting the decline in residential customer deliveries ACE Q2 2025 Statistics | Metric | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Total Electric Deliveries (GWhs) | 2,067 | 2,146 | -3.7% | | Total Electric Revenues (millions) | $384 | $383 | +0.3% |

Core Viewpoint - Exelon Corporation (EXC) is set to release its second-quarter 2025 results on July 31, with expectations of a mixed performance in earnings and revenue [1][4]. Factors Impacting Q2 Performance - Exelon's earnings are anticipated to benefit from a reduction in volumetric risk, with approximately 78% of its distribution revenues decoupled [2]. - The implementation of new gas and electric rates in EXC's service areas is expected to positively influence its bottom line [2]. - Ongoing energy efficiency programs and increased demand from data centers are likely to contribute to the company's performance [3]. Q2 Expectations - The Zacks Consensus Estimate for Exelon's earnings is 43 cents per share, reflecting a year-over-year decrease of 8.5% [4]. - Revenue estimates are projected at $5.83 billion, indicating a year-over-year improvement of 8.7% [4][8]. Earnings Prediction Model - The current Earnings ESP for Exelon is -11.58%, suggesting that the company may not exceed earnings estimates this quarter [5][8]. - Exelon holds a Zacks Rank of 3, indicating a neutral outlook [6]. Industry Comparisons - Other companies in the industry, such as Eversource Energy (ES) and IDACORP (IDA), are expected to report earnings beats, with respective Earnings ESPs of +0.26% and +2.34% [7][9].

Company Overview - Exelon (EXC) is headquartered in Chicago and operates in the Utilities sector, with a stock price change of 13.18% since the beginning of the year [3]. Dividend Information - Exelon currently pays a dividend of $0.4 per share, resulting in a dividend yield of 3.76%, which is higher than the Utility - Electric Power industry's yield of 3.27% and the S&P 500's yield of 1.62% [3]. - The company's annualized dividend of $1.60 has increased by 5.3% from the previous year, with three dividend increases over the last five years, averaging an annual increase of 0.01% [4]. Earnings Growth - The Zacks Consensus Estimate for Exelon's earnings in 2025 is $2.70 per share, indicating a year-over-year earnings growth rate of 8% [5]. Investment Appeal - Exelon is considered an attractive dividend play and a compelling investment opportunity, currently holding a Zacks Rank of 2 (Buy) [7].