Exelon(EXC) - 2023 Q2 - Quarterly Report

Glossary of Terms and Abbreviations This section provides definitions for key terms and abbreviations used throughout the report Filing Format This section details the filing structure, identifying the registrants and their respective responsibilities - This is a combined Form 10-Q filed separately by Exelon Corporation and its subsidiaries (Commonwealth Edison Company, PECO Energy Company, Baltimore Gas and Electric Company, Pepco Holdings LLC, Potomac Electric Power Company, Delmarva Power & Light Company, and Atlantic City Electric Company) Each registrant is responsible only for information relating to itself[19] Cautionary Statements Regarding Forward-Looking Information This section warns investors about forward-looking statements, highlighting inherent risks and uncertainties - The report contains forward-looking statements subject to risks and uncertainties, and investors are cautioned not to place undue reliance on them Factors that could cause actual results to differ materially are discussed in the 2022 Form 10-K and this 10-Q[20][21][22] Where to Find More Information This section directs readers to official sources for additional company reports and information - Reports and other information filed electronically with the SEC are available on www.sec.gov and the Registrants' website at www.exeloncorp.com[24](index=24&type=chunk) Part I This part presents the unaudited consolidated financial statements and related disclosures for the company and its subsidiaries Item 1. Financial Statements This section presents Exelon Corporation's unaudited consolidated financial statements, including operations, cash flows, balance sheets, and equity, along with detailed utility registrant financials and comprehensive notes Exelon Corporation Consolidated Financial Statements Exelon Corporation reported mixed net income trends, with a three-month decrease and six-month increase, alongside rising operating revenues and a significant decrease in operating cash flows Operating Revenues, Income, and EPS (Millions, except per share data) | Metric | 3 Months Ended June 30, 2023 (Millions) | 3 Months Ended June 30, 2022 (Millions) | 6 Months Ended June 30, 2023 (Millions) | 6 Months Ended June 30, 2022 (Millions) | |:---|:---|:---|:---|:---| | Operating Revenues | | Electric operating revenues | $4,434 | $3,934 | $8,896 | $8,415 | | Natural gas operating revenues | $258 | $307 | $1,080 | $1,124 | | Revenues from alternative revenue programs | $126 | $(2) | $404 | $27 | | Total operating revenues | $4,818 | $4,239 | $10,380 | $9,566 | | Operating Income | $704 | $694 | $1,809 | $1,593 | | Net income attributable to common shareholders | $343 | $465 | $1,012 | $1,062 | | Diluted EPS from continuing operations | $0.34 | $0.47 | $1.02 | $0.96 | Balance Sheet Highlights (Millions) | Metric | June 30, 2023 (Millions) | December 31, 2022 (Millions) | |:---|:---|:---|\n| Total Assets | $98,080 | $95,349 | | Total Liabilities | $73,001 | $70,605 | | Total Shareholders' Equity | $25,079 | $24,744 | Cash Flow Highlights (Millions) | Metric | 6 Months Ended June 30, 2023 (Millions) | 6 Months Ended June 30, 2022 (Millions) | |:---|:---|:---|\n| Net cash flows provided by operating activities | $1,761 | $3,240 | | Net cash flows used in investing activities | $(3,675) | $(3,346) | | Net cash flows provided by financing activities | $1,859 | $323 | | Cash, restricted cash, and cash equivalents at end of period | $1,035 | $1,836 | Commonwealth Edison Company Consolidated Financial Statements ComEd reported increased net income for both periods, driven by electric operating revenues and alternative revenue programs, despite decreased operating cash flows, with financing activities providing substantial cash Operating Revenues and Net Income (Millions) | Metric | 3 Months Ended June 30, 2023 (Millions) | 3 Months Ended June 30, 2022 (Millions) | 6 Months Ended June 30, 2023 (Millions) | 6 Months Ended June 30, 2022 (Millions) | |:---|:---|:---|:---|:---|\n| Electric operating revenues | $1,781 | $1,387 | $3,293 | $3,075 | | Revenues from alternative revenue programs | $118 | $35 | $270 | $75 | | Total operating revenues | $1,901 | $1,425 | $3,568 | $3,158 | | Net income | $249 | $227 | $489 | $415 | Balance Sheet Highlights (Millions) | Metric | June 30, 2023 (Millions) | December 31, 2022 (Millions) | |:---|:---|:---|\n| Total Assets | $41,672 | $39,661 | | Total Liabilities | $27,820 | $26,297 | | Total Shareholders' Equity | $13,852 | $13,364 | Cash Flow Highlights (Millions) | Metric | 6 Months Ended June 30, 2023 (Millions) | 6 Months Ended June 30, 2022 (Millions) | |:---|:---|:---|\n| Net cash flows provided by operating activities | $304 | $588 | | Net cash flows used in investing activities | $(1,259) | $(1,193) | | Net cash flows provided by financing activities | $1,080 | $784 | | Cash, restricted cash, and cash equivalents at end of period | $636 | $563 | PECO Energy Company Consolidated Financial Statements PECO Energy Company experienced decreased net income for both periods despite increased operating revenues, primarily due to higher operating expenses, while operating cash flows increased and investing activities saw higher cash usage Operating Revenues and Net Income (Millions) | Metric | 3 Months Ended June 30, 2023 (Millions) | 3 Months Ended June 30, 2022 (Millions) | 6 Months Ended June 30, 2023 (Millions) | 6 Months Ended June 30, 2022 (Millions) | |:---|:---|:---|:---|:---|\n| Electric operating revenues | $723 | $707 | $1,521 | $1,441 | | Natural gas operating revenues | $108 | $108 | $425 | $414 | | Total operating revenues | $828 | $816 | $1,940 | $1,863 | | Net income | $97 | $133 | $263 | $339 | Balance Sheet Highlights (Millions) | Metric | June 30, 2023 (Millions) | December 31, 2022 (Millions) | |:---|:---|:---|\n| Total Assets | $15,207 | $14,502 | | Total Liabilities | $9,253 | $8,939 | | Total Shareholder's Equity | $5,954 | $5,563 | Cash Flow Highlights (Millions) | Metric | 6 Months Ended June 30, 2023 (Millions) | 6 Months Ended June 30, 2022 (Millions) | |:---|:---|:---|\n| Net cash flows provided by operating activities | $545 | $412 | | Net cash flows used in investing activities | $(932) | $(653) | | Net cash flows provided by financing activities | $410 | $229 | | Cash, restricted cash, and cash equivalents at end of period | $91 | $32 | Baltimore Gas and Electric Company Financial Statements BGE reported increased net income and total operating revenues for both periods, with decreased operating cash flows, increased capital expenditures, and reduced cash from financing activities due to short-term borrowing changes Operating Revenues and Net Income (Millions) | Metric | 3 Months Ended June 30, 2023 (Millions) | 3 Months Ended June 30, 2022 (Millions) | 6 Months Ended June 30, 2023 (Millions) | 6 Months Ended June 30, 2022 (Millions) | |:---|:---|:---|:---|:---|\n| Electric operating revenues | $670 | $642 | $1,449 | $1,377 | | Natural gas operating revenues | $121 | $161 | $530 | $585 | | Total operating revenues | $797 | $786 | $2,053 | $1,940 | | Net income | $42 | $37 | $241 | $234 | Balance Sheet Highlights (Millions) | Metric | June 30, 2023 (Millions) | December 31, 2022 (Millions) | |:---|:---|:---|\n| Total Assets | $13,488 | $13,350 | | Total Liabilities | $8,232 | $8,414 | | Total Shareholder's Equity | $5,256 | $4,936 | Cash Flow Highlights (Millions) | Metric | 6 Months Ended June 30, 2023 (Millions) | 6 Months Ended June 30, 2022 (Millions) | |:---|:---|:---|\n| Net cash flows provided by operating activities | $611 | $676 | | Net cash flows used in investing activities | $(652) | $(571) | | Net cash flows provided by financing activities | $64 | $399 | | Cash, restricted cash, and cash equivalents at end of period | $90 | $559 | Pepco Holdings LLC Consolidated Financial Statements PHI reported increased net income and total operating revenues for both periods, with decreased operating cash flows, significantly increased capital expenditures, and reduced cash from financing activities due to short-term borrowings and distributions Operating Revenues and Net Income (Millions) | Metric | 3 Months Ended June 30, 2023 (Millions) | 3 Months Ended June 30, 2022 (Millions) | 6 Months Ended June 30, 2023 (Millions) | 6 Months Ended June 30, 2022 (Millions) | |:---|:---|:---|:---|:---|\n| Electric operating revenues | $1,265 | $1,199 | $2,637 | $2,522 | | Natural gas operating revenues | $29 | $37 | $126 | $120 | | Total operating revenues | $1,305 | $1,221 | $2,841 | $2,626 | | Net income | $103 | $100 | $258 | $230 | Balance Sheet Highlights (Millions) | Metric | June 30, 2023 (Millions) | December 31, 2022 (Millions) | |:---|:---|:---|\n| Total Assets | $26,241 | $26,082 | | Total Liabilities | $14,560 | $14,852 | | Total Member's Equity | $11,681 | $11,230 | Cash Flow Highlights (Millions) | Metric | 6 Months Ended June 30, 2023 (Millions) | 6 Months Ended June 30, 2022 (Millions) | |:---|:---|:---|\n| Net cash flows provided by operating activities | $528 | $790 | | Net cash flows used in investing activities | $(1,014) | $(773) | | Net cash flows provided by financing activities | $249 | $389 | | Cash, restricted cash, and cash equivalents at end of period | $136 | $619 | Potomac Electric Power Company Financial Statements Pepco reported a three-month net income decrease but a six-month increase, despite growing electric operating revenues, with increased operating cash flows, higher capital expenditures, and reduced cash from financing activities Operating Revenues and Net Income (Millions) | Metric | 3 Months Ended June 30, 2023 (Millions) | 3 Months Ended June 30, 2022 (Millions) | 6 Months Ended June 30, 2023 (Millions) | 6 Months Ended June 30, 2022 (Millions) | |:---|:---|:---|:---|:---|\n| Electric operating revenues | $633 | $580 | $1,302 | $1,200 | | Revenues from alternative revenue programs | $7 | $(1) | $46 | $(7) | | Total operating revenues | $642 | $581 | $1,351 | $1,195 | | Net income | $64 | $70 | $130 | $116 | Balance Sheet Highlights (Millions) | Metric | June 30, 2023 (Millions) | December 31, 2022 (Millions) | |:---|:---|:---|\n| Total Assets | $10,838 | $10,657 | | Total Liabilities | $6,799 | $6,875 | | Total Shareholder's Equity | $4,039 | $3,782 | Cash Flow Highlights (Millions) | Metric | 6 Months Ended June 30, 2023 (Millions) | 6 Months Ended June 30, 2022 (Millions) | |:---|:---|:---|\n| Net cash flows provided by operating activities | $306 | $241 | | Net cash flows used in investing activities | $(475) | $(400) | | Net cash flows provided by financing activities | $112 | $222 | | Cash, restricted cash, and cash equivalents at end of period | $42 | $131 | Delmarva Power & Light Company Financial Statements DPL reported increased net income and total operating revenues for both periods, with significantly decreased operating cash flows, increased capital expenditures, and reduced cash from financing activities due to short-term borrowings Operating Revenues and Net Income (Millions) | Metric | 3 Months Ended June 30, 2023 (Millions) | 3 Months Ended June 30, 2022 (Millions) | 6 Months Ended June 30, 2023 (Millions) | 6 Months Ended June 30, 2022 (Millions) | |:---|:---|:---|:---|:---|\n| Electric operating revenues | $315 | $295 | $682 | $643 | | Natural gas operating revenues | $29 | $37 | $126 | $120 | | Total operating revenues | $349 | $332 | $823 | $763 | | Net income | $25 | $21 | $85 | $77 | Balance Sheet Highlights (Millions) | Metric | June 30, 2023 (Millions) | December 31, 2022 (Millions) | |:---|:---|:---|\n| Total Assets | $5,823 | $5,802 | | Total Liabilities | $3,749 | $3,852 | | Total Shareholder's Equity | $2,074 | $1,950 | Cash Flow Highlights (Millions) | Metric | 6 Months Ended June 30, 2023 (Millions) | 6 Months Ended June 30, 2022 (Millions) | |:---|:---|:---|\n| Net cash flows provided by operating activities | $181 | $383 | | Net cash flows used in investing activities | $(360) | $(265) | | Net cash flows provided by financing activities | $45 | $60 | | Cash, restricted cash, and cash equivalents at end of period | $18 | $249 | Atlantic City Electric Company Consolidated Financial Statements ACE reported increased net income and total operating revenues for both periods, with significantly decreased operating cash flows, increased capital expenditures, and increased cash from financing activities due to short-term borrowings and parent contributions Operating Revenues and Net Income (Millions) | Metric | 3 Months Ended June 30, 2023 (Millions) | 3 Months Ended June 30, 2022 (Millions) | 6 Months Ended June 30, 2023 (Millions) | 6 Months Ended June 30, 2022 (Millions) | |:---|:---|:---|:---|:---|\n| Electric operating revenues | $317 | $323 | $653 | $668 | | Revenues from alternative revenue programs | $(1) | $(15) | $16 | $(12) | | Total operating revenues | $317 | $309 | $670 | $658 | | Net income | $18 | $11 | $51 | $37 | Balance Sheet Highlights (Millions) | Metric | June 30, 2023 (Millions) | December 31, 2022 (Millions) | |:---|:---|:---|\n| Total Assets | $5,088 | $4,979 | | Total Liabilities | $3,257 | $3,226 | | Total Shareholder's Equity | $1,831 | $1,753 | Cash Flow Highlights (Millions) | Metric | 6 Months Ended June 30, 2023 (Millions) | 6 Months Ended June 30, 2022 (Millions) | |:---|:---|:---|\n| Net cash flows provided by operating activities | $41 | $221 | | Net cash flows used in investing activities | $(275) | $(179) | | Net cash flows provided by financing activities | $186 | $162 | | Cash and cash equivalents at end of period | $24 | $233 | 1. Significant Accounting Policies Exelon, a utility services holding company, completed the separation of its generation business (Constellation) in February 2022, with financial statements prepared as unaudited interim reports in accordance with GAAP and SEC regulations - Exelon Corporation is a utility services holding company engaged in energy transmission and distribution through ComEd, PECO, BGE, Pepco, DPL, and ACE[117] - On February 1, 2022, Exelon completed the separation of its generation business, creating two publicly traded companies: Exelon and Constellation Constellation now holds Generation and its subsidiaries[118][124] - The financial statements are unaudited and include all necessary adjustments for fair presentation in accordance with GAAP, with certain information condensed or omitted per SEC rules for Form 10-Q[122] 2. Discontinued Operations The February 2022 separation of Constellation is classified as discontinued operations, with no results for Q2/H1 2023, but significant revenues and net income in H1 2022, governed by ongoing separation agreements - The separation of Constellation (Generation) on February 1, 2022, is classified as discontinued operations due to its strategic impact on Exelon's financial results[128] - There were no results from discontinued operations for the three and six months ended June 30, 2023, and the three months ended June 30, 2022[129] Discontinued Operations (Constellation) - Six Months Ended June 30, 2022 | Metric | Amount (Millions) | |:---|:---|\n| Operating revenues | | Competitive business revenues | $1,855 | | Competitive business revenues from affiliates | $161 | | Total operating revenues | $2,016 | | Operating expenses | $1,647 | | Operating income | $379 | | Income before income taxes | $78 | | Income taxes | $(40) | | Equity in losses of unconsolidated affiliates | $(1) | | Net income | $117 | | Net income attributable to noncontrolling interests | $1 | | Net income from discontinued operations | $116 | - Exelon and Constellation entered into a Separation Agreement, Transition Services Agreement (TSA), and Tax Matters Agreement (TMA) to govern ongoing relationships post-separation[125][126] 3. Regulatory Matters Registrants are engaged in various rate and regulatory proceedings, with completed and pending distribution base rate cases, increased transmission formula rates, and ongoing Illinois regulatory matters and a FERC audit with potential material financial impacts Completed Distribution Base Rate Case Proceedings (2023) | Registrant/Jurisdiction | Service | Approved Revenue Requirement Increase (Millions) | Approved ROE | |:---|:---|:---|:---|\n| ComEd - Illinois | Electric | $199 | 7.85% | | PECO - Pennsylvania | Natural Gas | $55 | N/A | | BGE - Maryland | Electric | $42 (2023 portion) | 9.50% | | BGE - Maryland | Natural Gas | $10 (2023 portion) | 9.65% | | DPL - Maryland | Electric | $17 (2023 portion) | 9.60% | Pending Distribution Base Rate Case Proceedings (as of June 30, 2023) | Registrant/Jurisdiction | Service | Requested Revenue Requirement Increase (Millions) | Requested ROE | Expected Approval Timing | |:---|:---|:---|:---|:---|\n| ComEd - Illinois | Electric | $1,545 | 10.50% to 10.65% | Fourth quarter of 2023 | | ComEd - Illinois | Electric | $247 | 8.91% | Fourth quarter of 2023 | | BGE - Maryland | Electric | $313 | 10.40% | Fourth quarter of 2023 | | BGE - Maryland | Natural Gas | $289 | 10.40% | Fourth quarter of 2023 | | Pepco - District of Columbia | Electric | $191 | 10.50% | Second quarter of 2024 | | Pepco - Maryland | Electric | $214 | 10.50% | Second quarter of 2024 | | DPL - Delaware | Electric | $42 | 10.50% | Second quarter of 2024 | | ACE - New Jersey | Electric | $94 | 10.50% | First quarter of 2024 | 2023 Electric Transmission Formula Rate Updates (Effective June 1, 2023) | Registrant | Total Revenue Requirement Increase (Millions) | Allowed Return on Rate Base | Allowed ROE | |:---|:---|:---|:---|\n| ComEd | $83 | 8.09% | 11.50% | | PECO | $47 | 7.41% | 10.35% | | BGE | $4 | 7.34% | 10.50% | | Pepco | $32 | 7.57% | 10.50% | | DPL | $29 | 7.08% | 10.50% | | ACE | $29 | 7.08% | 10.50% | - ComEd's regulatory assets increased by $779 million, primarily due to a $252 million increase in Electric Distribution Formula Rate Annual Reconciliations, a $236 million increase in the Carbon Mitigation Credit (CMC) regulatory asset, and a $145 million increase in the Zero Emission Credit (ZEC) regulatory asset[176] - A FERC audit of ComEd's overhead cost allocation methodology concluded with a final report on July 27, 2023 ComEd disagrees with findings, and the final resolution could result in material future losses beyond current accruals[173][174] 4. Revenue from Contracts with Customers Registrants recognize revenue from regulated electric and gas tariff sales, distribution, and transmission services, with contract liabilities primarily from a communication infrastructure arrangement, and future revenues projected through 2027 and beyond - The Registrants' primary revenue sources are regulated electric and gas tariff sales, distribution, and transmission services[182] - Contract liabilities for PHI, Pepco, DPL, and ACE primarily relate to upfront consideration from a collaborative arrangement for communication infrastructure, with revenue recognized over 35 years[185] Transaction Price Allocated to Remaining Performance Obligations (Millions) | Year | Exelon | PHI | Pepco | DPL | ACE | |:---|:---|:---|:---|:---|:---|\n| 2023 | $7 | $7 | $5 | $1 | $1 | | 2024 | $6 | $6 | $5 | $0 | $1 | | 2025 | $5 | $5 | $5 | $0 | $0 | | 2026 | $5 | $5 | $5 | $0 | $0 | | 2027 and thereafter | $75 | $75 | $58 | $9 | $8 | | Total | $98 | $98 | $78 | $10 | $10 | 5. Segment Information Exelon operates through six reportable segments (ComEd, PECO, BGE, Pepco, DPL, ACE), evaluating performance by net income and disaggregating revenues by electric and natural gas sales across various customer groups, with intersegment eliminations applied at consolidated levels - Exelon has six reportable segments: ComEd, PECO, BGE, Pepco, DPL, and ACE Each represents a single reportable segment, and performance is evaluated based on net income[194] Exelon Consolidated Operating Revenues by Segment (Three Months Ended June 30, 2023) | Segment | Electric Revenues (Millions) | Natural Gas Revenues (Millions) | Shared Service and Other Revenues (Millions) | Total Operating Revenues (Millions) | |:---|:---|:---|:---|:---|\n| ComEd | $1,901 | $0 | $0 | $1,901 | | PECO | $719 | $109 | $0 | $828 | | BGE | $672 | $125 | $0 | $797 | | PHI | $1,274 | $29 | $2 | $1,305 | | Other | $0 | $0 | $434 | $434 | | Intersegment Eliminations | $(10) | $(1) | $(436) | $(447) | | Exelon Total | $4,556 | $262 | $0 | $4,818 | Exelon Consolidated Operating Revenues by Segment (Six Months Ended June 30, 2023) | Segment | Electric Revenues (Millions) | Natural Gas Revenues (Millions) | Shared Service and Other Revenues (Millions) | Total Operating Revenues (Millions) | |:---|:---|:---|:---|:---|\n| ComEd | $3,568 | $0 | $0 | $3,568 | | PECO | $1,514 | $426 | $0 | $1,940 | | BGE | $1,485 | $568 | $0 | $2,053 | | PHI | $2,711 | $126 | $4 | $2,841 | | Other | $0 | $0 | $871 | $871 | | Intersegment Eliminations | $(14) | $(4) | $(875) | $(893) | | Exelon Total | $9,264 | $1,116 | $0 | $10,380 | Exelon Total Assets by Segment (Millions) | Segment | June 30, 2023 | December 31, 2022 | |:---|:---|:---|\n| ComEd | $41,672 | $39,661 | | PECO | $15,207 | $14,502 | | BGE | $13,488 | $13,350 | | PHI | $26,241 | $26,082 | | Other | $5,922 | $6,014 | | Intersegment Eliminations | $(4,450) | $(4,260) | | Exelon Total | $98,080 | $95,349 | 6. Accounts Receivable Exelon's allowance for customer credit losses decreased to $323 million, while other accounts receivable allowance increased to $87 million, and unbilled customer revenues decreased to $789 million, with utility registrants purchasing $1,979 million in receivables from suppliers Allowance for Credit Losses on Customer Accounts Receivable (Millions) | Registrant | Balance at Dec 31, 2022 | Current Period Provision | Write-offs, net of recoveries | Balance at Jun 30, 2023 | |:---|:---|:---|:---|:---|\n| Exelon | $327 | $71 | $75 | $323 | | ComEd | $59 | $21 | $13 | $67 | | PECO | $105 | $18 | $22 | $101 | | BGE | $54 | $14 | $18 | $50 | | PHI | $109 | $18 | $22 | $105 | | Pepco | $47 | $13 | $10 | $50 | | DPL | $21 | $4 | $4 | $21 | | ACE | $41 | $1 | $8 | $34 | Allowance for Credit Losses on Other Accounts Receivable (Millions) | Registrant | Balance at Dec 31, 2022 | Current Period Provision | Write-offs, net of recoveries | Balance at Jun 30, 2023 | |:---|:---|:---|:---|:---|\n| Exelon | $82 | $15 | $10 | $87 | | ComEd | $17 | $3 | $2 | $18 | | PECO | $9 | $1 | $2 | $8 | | BGE | $10 | $2 | $4 | $8 | | PHI | $46 | $9 | $2 | $53 | | Pepco | $25 | $6 | $0 | $31 | | DPL | $7 | $2 | $0 | $9 | | ACE | $14 | $1 | $2 | $13 | Unbilled Customer Revenues (Millions) | Registrant | June 30, 2023 | December 31, 2022 | |:---|:---|:---|\n| Exelon | $789 | $912 | | ComEd | $329 | $223 | | PECO | $144 | $219 | | BGE | $116 | $247 | | PHI | $200 | $223 | | Pepco | $96 | $103 | | DPL | $37 | $74 | | ACE | $67 | $46 | Total Receivables Purchased (Six Months Ended June 30, 2023) (Millions) | Registrant | Total Receivables Purchased | |:---|:---|\n| Exelon | $1,979 | | ComEd | $445 | | PECO | $546 | | BGE | $420 | | PHI | $568 | | Pepco | $371 | | DPL | $107 | | ACE | $90 | 7. Income Taxes Exelon's effective income tax rate from continuing operations varied from the U.S. federal statutory rate, influenced by state taxes and deferred tax amortization, with unrecognized tax benefits reported by some registrants, and the new IRA corporate alternative minimum tax effective in 2023 Effective Income Tax Rate from Continuing Operations (Three Months Ended June 30) | Registrant | 2023 | 2022 | |:---|:---|:---|\n| Exelon | 17.5% | 9.0% | | ComEd | 22.2% | 22.5% | | PECO | 2.0% | 6.3% | | BGE | 22.2% | 2.6% | | PHI | 16.3% | 1.0% | | Pepco | 13.5% | (1.4%) | | DPL | 16.7% | 8.7% | | ACE | 25.0% | 0.0% | Effective Income Tax Rate from Continuing Operations (Six Months Ended June 30) | Registrant | 2023 | 2022 | |:---|:---|:---|\n| Exelon | 16.9% | 21.8% | | ComEd | 22.5% | 22.3% | | PECO | 1.9% | 6.6% | | BGE | 21.2% | 4.1% | | PHI | 17.3% | 3.4% | | Pepco | 14.5% | (2.7%) | | DPL | 16.7% | 7.2% | | ACE | 25.0% | 2.6% | Unrecognized Tax Benefits (Millions) | Registrant | June 30, 2023 | December 31, 2022 | |:---|:---|:---|\n| Exelon | $148 | $148 | | PHI | $59 | $59 | | ACE | $17 | $17 | - The Inflation Reduction Act (IRA) of 2022 implements a new corporate alternative minimum tax (CAMT) of 15.0% on modified GAAP net income, effective 2