false(800)(202)(410)(312)(202(610)(215)(202)(202)--12-31Q2201910 South Dearborn Street500 North Wakefield Drive2 Center Plaza440 South LaSalle Street500 North Wakefield Drive300 Exelon WayP.O. Box 8699701 Ninth Street, N.W.701 Ninth Street, N.W.P.O. Box 805379110 West Fayette Street2301 Market StreetChicagoNewarkBaltimoreChicagoNewarkKennett SquarePhiladelphiaWashington, District of ColumbiaWashington, District of Columbia60680-53791970221201-370860605-10281970219348-247319101-86992006820068ILDEMDILDEPAPA000110935700000081920000009466000002260600000278790001168165000007810000011359710000079732PANJMDILDEVAPAPADEDCVA483-3220872-2000234-5000394-4321872-2000765-5959841-4000872-2000872-2000Common stock, without par valueCommon stock, without par valueCumulative Preferred Security, Series D,Series A Junior Debt Subordinated Debentures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years5 years30 years3 years30 years3 years30 years3 years5 years5 years30 years3 years3 years3 years4 years4 years2 years2 years4 years1 yearsP8YP1YP87YP1YP6YP1YP13YP1YP37YP1YP15YP1YP13YP1YP13YP1YP87YP1Y79 years5 years5 years1 years50 years5 years5 years5 years79 years1 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
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the Quarterly Period Ended June 30, 2019
or
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Commission
File Number
 
Name of Registrant; State or Other Jurisdiction of Incorporation; Address of Principal Executive Offices; and Telephone Number
 
IRS Employer Identification Number
 
 
 
 
 
001-16169
 
EXELON CORPORATION
 
23-2990190
 
 
(a Pennsylvania corporation)
10 South Dearborn Street
P.O. Box 805379
Chicago, Illinois 60680-5379
(800) 483-3220
 
 
 
 
 
 
 
333-85496
 
EXELON GENERATION COMPANY, LLC
 
23-3064219
 
 
(a Pennsylvania limited liability company)
300 Exelon Way
Kennett Square, Pennsylvania 19348-2473
(610) 765-5959
 
 
 
 
 
 
 
001-1839
 
COMMONWEALTH EDISON COMPANY
 
36-0938600
 
 
(an Illinois corporation)
440 South LaSalle Street
Chicago, Illinois 60605-1028
(312) 394-4321
 
 
 
 
 
 
 
000-16844
 
PECO ENERGY COMPANY
 
23-0970240
 
 
(a Pennsylvania corporation)
P.O. Box 8699
2301 Market Street
Philadelphia, Pennsylvania 19101-8699
(215) 841-4000
 
 
 
 
 
 
 
001-1910
 
BALTIMORE GAS AND ELECTRIC COMPANY
 
52-0280210
 
 
(a Maryland corporation)
2 Center Plaza
110 West Fayette Street
Baltimore, Maryland 21201-3708
(410) 234-5000
 
 
 
 
 
 
 
001-31403
 
PEPCO HOLDINGS LLC
 
52-2297449
 
 
(a Delaware limited liability company)
701 Ninth Street, N.W.
Washington, District of Columbia 20068
(202) 872-2000
 
 
 
 
 
 
 
001-01072
 
POTOMAC ELECTRIC POWER COMPANY
 
53-0127880
 
 
(a District of Columbia and Virginia corporation)
701 Ninth Street, N.W.
Washington, District of Columbia 20068
(202) 872-2000
 
 
 
 
 
 
 
001-01405
 
DELMARVA POWER & LIGHT COMPANY
 
51-0084283
 
 
(a Delaware and Virginia corporation)
500 North Wakefield Drive
Newark, Delaware 19702
(202) 872-2000
 
 
 
 
 
 
 
001-03559
 
ATLANTIC CITY ELECTRIC COMPANY
 
21-0398280
 
 
(a New Jersey corporation)
500 North Wakefield Drive
Newark, Delaware 19702
(202) 872-2000
 
 




Securities registered pursuant to Section 12(b) of the Act:
Title of each class
 
Trading Symbol(s)
 
Name of each exchange on which registered
EXELON CORPORATION:
 
 
 
 
 
 
Common Stock, without par value
 
EXC
 
New York Stock Exchange
and
Chicago Stock Exchange
Series A Junior Debt Subordinated Debentures
 
EXC22
 
New York Stock Exchange
 
 
 
 
 
 
 
PECO ENERGY COMPANY:
 
 
 
 
 
 
Trust Receipts of PECO Energy Capital Trust III, each representing a 7.38% Cumulative Preferred Security, Series D, $25 stated value, issued by PECO Energy Capital, L.P. and unconditionally guaranteed by PECO Energy Company
 
EXC/28
 
New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes  x  No  o
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).  Yes  x  No  o
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Exelon Corporation
Large Accelerated Filer
x
Accelerated Filer
Non-accelerated Filer
Smaller Reporting Company
Emerging Growth Company
Exelon Generation Company, LLC
Large Accelerated Filer
Accelerated Filer
Non-accelerated Filer
x
Smaller Reporting Company
Emerging Growth Company
Commonwealth Edison Company
Large Accelerated Filer
Accelerated Filer
Non-accelerated Filer
x
Smaller Reporting Company
Emerging Growth Company
PECO Energy Company
Large Accelerated Filer
Accelerated Filer
Non-accelerated Filer
x
Smaller Reporting Company
Emerging Growth Company
Baltimore Gas and Electric Company
Large Accelerated Filer
Accelerated Filer
Non-accelerated Filer
x
Smaller Reporting Company
Emerging Growth Company
Pepco Holdings LLC
Large Accelerated Filer
Accelerated Filer
Non-accelerated Filer
x
Smaller Reporting Company
Emerging Growth Company
Potomac Electric Power Company
Large Accelerated Filer
Accelerated Filer
Non-accelerated Filer
x
Smaller Reporting Company
Emerging Growth Company
Delmarva Power & Light Company
Large Accelerated Filer
Accelerated Filer
Non-accelerated Filer
x
Smaller Reporting Company
Emerging Growth Company
Atlantic City Electric Company
Large Accelerated Filer
Accelerated Filer
Non-accelerated Filer
x
Smaller Reporting Company
Emerging Growth Company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).  Yes    No  x
The number of shares outstanding of each registrant’s common stock as of June 30, 2019 was:
Exelon Corporation Common Stock, without par value
971,584,496
Exelon Generation Company, LLC
not applicable
Commonwealth Edison Company Common Stock, $12.50 par value
127,021,343
PECO Energy Company Common Stock, without par value
170,478,507
Baltimore Gas and Electric Company Common Stock, without par value
1,000
Pepco Holdings LLC
not applicable
Potomac Electric Power Company Common Stock, $0.01 par value
100
Delmarva Power & Light Company Common Stock, $2.25 par value
1,000
Atlantic City Electric Company Common Stock, $3.00 par value
8,546,017



TABLE OF CONTENTS

 
Page No.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

1


 
Page No.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

2


 
Page No.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

3

Table of Contents

GLOSSARY OF TERMS AND ABBREVIATIONS
Exelon Corporation and Related Entities
Exelon
 
Exelon Corporation
Generation
 
Exelon Generation Company, LLC
ComEd
 
Commonwealth Edison Company
PECO
 
PECO Energy Company
BGE
 
Baltimore Gas and Electric Company
Pepco Holdings or PHI
 
Pepco Holdings LLC (formerly Pepco Holdings, Inc.)
Pepco
 
Potomac Electric Power Company
DPL
 
Delmarva Power & Light Company
ACE
 
Atlantic City Electric Company
Registrants
 
Exelon, Generation, ComEd, PECO, BGE, PHI, Pepco, DPL and ACE, collectively
Utility Registrants
 
ComEd, PECO, BGE, Pepco, DPL and ACE, collectively
ACE Funding or ATF
 
Atlantic City Electric Transition Funding LLC
Antelope Valley
 
Antelope Valley Solar Ranch One
BSC
 
Exelon Business Services Company, LLC
CENG
 
Constellation Energy Nuclear Group, LLC
Constellation
 
Constellation Energy Group, Inc.
EGR IV
 
ExGen Renewables IV, LLC
EGRP
 
ExGen Renewables Partners, LLC
Exelon Corporate
 
Exelon in its corporate capacity as a holding company
FitzPatrick
 
James A. FitzPatrick nuclear generating station
PCI
 
Potomac Capital Investment Corporation and its subsidiaries
Pepco Energy Services or PES
 
Pepco Energy Services, Inc. and its subsidiaries
PHI Corporate
 
PHI in its corporate capacity as a holding company
PHISCO
 
PHI Service Company
SolGen
 
SolGen, LLC
TMI
 
Three Mile Island nuclear facility

4

Table of Contents

GLOSSARY OF TERMS AND ABBREVIATIONS
Other Terms and Abbreviations
 
 
Note "—" of the 2018 Form 10-K
 
Reference to specific Combined Note to Consolidated Financial Statements within Exelon’s 2018 Annual Report on Form 10-K
AESO
 
Alberta Electric Systems Operator
AFUDC
 
Allowance for Funds Used During Construction
AMI
 
Advanced Metering Infrastructure
AOCI
 
Accumulated Other Comprehensive Income
ARC
 
Asset Retirement Cost
ARO
 
Asset Retirement Obligation
BGS
 
Basic Generation Service
CES
 
Clean Energy Standard
Clean Air Act
 
Clean Air Act of 1963, as amended
Clean Water Act
 
Federal Water Pollution Control Amendments of 1972, as amended
CODM
 
Chief operating decision maker(s)
D.C. Circuit Court
 
United States Court of Appeals for the District of Columbia Circuit
DC PLUG
 
District of Columbia Power Line Undergrounding Initiative
DCPSC
 
Public Service Commission of the District of Columbia
DOE
 
United States Department of Energy
DOEE
 
Department of Energy & Environment
DOJ
 
United States Department of Justice
DPSC
 
Delaware Public Service Commission
EDF
 
Electricite de France SA and its subsidiaries
EIMA
 
Energy Infrastructure Modernization Act (Illinois Senate Bill 1652 and Illinois House Bill 3036)
EPA
 
United States Environmental Protection Agency
EPSA
 
Electric Power Supply Association
ERCOT
 
Electric Reliability Council of Texas
FASB
 
Financial Accounting Standards Board
FEJA
 
Illinois Public Act 99-0906 or Future Energy Jobs Act
FERC
 
Federal Energy Regulatory Commission
FRCC
 
Florida Reliability Coordinating Council
GAAP
 
Generally Accepted Accounting Principles in the United States
GCR
 
Gas Cost Rate
GSA
 
Generation Supply Adjustment
ICC
 
Illinois Commerce Commission
ICE
 
Intercontinental Exchange
Illinois EPA
 
Illinois Environmental Protection Agency
IPA
 
Illinois Power Agency
IRC
 
Internal Revenue Code
IRS
 
Internal Revenue Service
ISO
 
Independent System Operator
ISO-NE
 
Independent System Operator New England Inc.

5

Table of Contents

GLOSSARY OF TERMS AND ABBREVIATIONS
Other Terms and Abbreviations
 
 
ISO-NY
 
Independent System Operator New York
LIBOR
 
London Interbank Offered Rate
MDE
 
Maryland Department of the Environment
MDPSC
 
Maryland Public Service Commission
MGP
 
Manufactured Gas Plant
MISO
 
Midcontinent Independent System Operator, Inc.
mmcf
 
Million Cubic Feet
MOPR
 
Minimum Offer Price Rule
MW
 
Megawatt
NAAQS
 
National Ambient Air Quality Standards
NDT
 
Nuclear Decommissioning Trust
NEIL
 
Nuclear Electric Insurance Limited
NERC
 
North American Electric Reliability Corporation
NJBPU
 
New Jersey Board of Public Utilities
Non-Regulatory Agreements Units
 
Nuclear generating units or portions thereof whose decommissioning-related activities are not subject to contractual elimination under regulatory accounting
NOSA
 
Nuclear Operating Services Agreement
NPNS
 
Normal Purchase Normal Sale scope exception
NRC
 
Nuclear Regulatory Commission
NYMEX
 
New York Mercantile Exchange
NYPSC
 
New York Public Service Commission
OCI
 
Other Comprehensive Income
OIESO
 
Ontario Independent Electricity System Operator
OPEB
 
Other Postretirement Employee Benefits
Oyster Creek
 
Oyster Creek Generating Station
PA DEP
 
Pennsylvania Department of Environmental Protection
PAPUC
 
Pennsylvania Public Utility Commission
PG&E
 
Pacific Gas and Electric Company
PJM
 
PJM Interconnection, LLC
POLR
 
Provider of Last Resort
PPA
 
Power Purchase Agreement
PPE
 
Property, plant and equipment
Price-Anderson Act
 
Price-Anderson Nuclear Industries Indemnity Act of 1957
PRP
 
Potentially Responsible Parties
PSDAR
 
Post-Shutdown Decommissioning Activities Report
PSEG
 
Public Service Enterprise Group Incorporated
REC
 
Renewable Energy Credit which is issued for each megawatt hour of generation from a qualified renewable energy source
RNF
 
Revenues Net of Purchased Power and Fuel Expense
Regulatory Agreement Units
 
Nuclear generating units or portions thereof whose decommissioning-related activities are subject to contractual elimination under regulatory accounting
Rider
 
Reconcilable Surcharge Recovery Mechanism

6

Table of Contents

GLOSSARY OF TERMS AND ABBREVIATIONS
Other Terms and Abbreviations
 
 
RMC
 
Risk Management Committee
ROE
 
Return on equity
ROU
 
Right-of-use
RSSA
 
Reliability Support Services Agreement
RTO
 
Regional Transmission Organization
SEC
 
United States Securities and Exchange Commission
SERC
 
SERC Reliability Corporation (formerly Southeast Electric Reliability Council)
SNF
 
Spent Nuclear Fuel
SOS
 
Standard Offer Service
TCJA
 
Tax Cuts and Jobs Act
Transition Bonds
 
Transition Bonds issued by ACE Funding
Upstream
 
Natural gas exploration and production activities
VIE
 
Variable Interest Entity
WECC
 
Western Electric Coordinating Council
ZEC
 
Zero Emission Credit, or Zero Emission Certificate
ZES
 
Zero Emission Standard

7

Table of Contents

FILING FORMAT
This combined Form 10-Q is being filed separately by Exelon Corporation, Exelon Generation Company, LLC, 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 (Registrants). Information contained herein relating to any individual Registrant is filed by such Registrant on its own behalf. No Registrant makes any representation as to information relating to any other Registrant.
CAUTIONARY STATEMENTS REGARDING FORWARD-LOOKING INFORMATION
This Report contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to risks and uncertainties. The factors that could cause actual results to differ materially from the forward-looking statements made by the Registrants include those factors discussed herein, as well as the items discussed in (1) the Registrants' combined 2018 Annual Report on Form 10-K in (a) ITEM 1A. Risk Factors, (b) ITEM 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations and (c) ITEM 8. Financial Statements and Supplementary Data: Note 22, Commitments and Contingencies; (2) this Quarterly Report on Form 10-Q in (a) Part II, Other Information, ITEM 1A. Risk Factors; (b) Part 1, Financial Information, ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations and (c) Part I, Financial Information, ITEM 1. Financial Statements: Note 16, Commitments and Contingencies; and (3) other factors discussed in filings with the SEC by the Registrants. Readers are cautioned not to place undue reliance on these forward-looking statements, which apply only as of the date of this Report. None of the Registrants undertakes any obligation to publicly release any revision to its forward-looking statements to reflect events or circumstances after the date of this Report.
WHERE TO FIND MORE INFORMATION
The SEC maintains an Internet site at www.sec.gov that contains reports, proxy and information statements, and other information that the Registrants file electronically with the SEC. These documents are also available to the public from commercial document retrieval services and the Registrants' website at www.exeloncorp.com. Information contained on the Registrants' website shall not be deemed incorporated into, or to be a part of, this Report.

8

Table of Contents




PART I. FINANCIAL INFORMATION
Item 1. Financial Statements

9

Table of Contents


EXELON CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(Unaudited)
 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
(In millions, except per share data)
2019
 
2018
 
2019
 
2018
Operating revenues
 
 
 
 
 
 
 
Competitive businesses revenues
$
3,959

 
$
4,305

 
$
8,938

 
$
9,417

Rate-regulated utility revenues
3,743

 
3,797

 
8,247

 
8,368

Revenues from alternative revenue programs
(13
)
 
(26
)
 
(19
)
 
(16
)
Total operating revenues
7,689

 
8,076

 
17,166

 
17,769

Operating expenses
 
 
 
 
 
 
 
Competitive businesses purchased power and fuel
2,289

 
2,277

 
5,493

 
5,566

Rate-regulated utility purchased power and fuel
936

 
1,038

 
2,285

 
2,476

Operating and maintenance
2,159

 
2,307

 
4,347

 
4,691

Depreciation and amortization
1,079

 
1,088

 
2,154

 
2,179

Taxes other than income
418

 
428

 
863

 
874

Total operating expenses
6,881


7,138


15,142


15,786

Gain on sales of assets and businesses
33

 
4

 
36

 
60

Operating income
841


942


2,060


2,043

Other income and (deductions)
 
 
 
 

 

Interest expense, net
(403
)
 
(367
)
 
(800
)
 
(732
)
Interest expense to affiliates
(6
)
 
(6
)
 
(13
)
 
(13
)
Other, net
212

 
44

 
679

 
17

Total other income and (deductions)
(197
)

(329
)

(134
)

(728
)
Income before income taxes
644

 
613

 
1,926

 
1,315

Income taxes
144

 
66

 
454

 
125

Equity in losses of unconsolidated affiliates
(6
)
 
(5
)
 
(12
)
 
(11
)
Net income
494


542


1,460


1,179

Net income attributable to noncontrolling interests
10

 
3

 
69

 
54

Net income attributable to common shareholders
$
484


$
539


$
1,391


$
1,125

Comprehensive income, net of income taxes
 
 
 
 
 
 
 
Net income
$
494

 
$
542

 
$
1,460

 
$
1,179

Other comprehensive (loss) income, net of income taxes
 
 
 
 
 
 
 
Pension and non-pension postretirement benefit plans:
 
 
 
 
 
 
 
Prior service benefit reclassified to periodic benefit cost
(16
)
 
(17
)
 
(32
)
 
(33
)
Actuarial loss reclassified to periodic benefit cost
36

 
61

 
74

 
123

Pension and non-pension postretirement benefit plan valuation adjustment

 
(1
)
 
(39
)
 
18

Unrealized gain on cash flow hedges

 
4

 

 
12

Unrealized (loss) gain on investments in unconsolidated affiliates
(2
)
 
2

 
(4
)
 
3

Unrealized gain (loss) on foreign currency translation
3

 
(5
)
 
4

 
(6
)
Other comprehensive income
21


44


3


117

Comprehensive income
515


586


1,463


1,296

Comprehensive income attributable to noncontrolling interests
9

 
4

 
67

 
56

Comprehensive income attributable to common shareholders
$
506

 
$
582

 
$
1,396

 
$
1,240

 
 
 
 
 
 
 
 
Average shares of common stock outstanding:
 
 
 
 
 
 
 
Basic
972

 
967

 
972

 
967

Assumed exercise and/or distributions of stock-based awards
2

 
2

 
1

 
1

Diluted(a)
974

 
969

 
973

 
968

 
 
 
 
 
 
 
 
Earnings per average common share:
 
 
 
 
 
 
 
Basic
$
0.50

 
$
0.56

 
$
1.43

 
$
1.16

Diluted
$
0.50

 
$
0.56

 
$
1.43

 
$
1.16

__________
(a)
The number of stock options not included in the calculation of diluted common shares outstanding due to their antidilutive effect was immaterial for the three and six months ended June 30, 2019 and approximately 2 million and 5 million for the three and six months ended June 30, 2018, respectively.

See the Combined Notes to Consolidated Financial Statements
10

Table of Contents

EXELON CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
 
Six Months Ended
June 30,
(In millions)
2019
 
2018
Cash flows from operating activities
 
 
 
Net income
$
1,460

 
$
1,179

Adjustments to reconcile net income to net cash flows provided by operating activities:
 
 
 
Depreciation, amortization and accretion, including nuclear fuel and energy contract amortization
2,922

 
3,000

Impairment of long-lived assets
9

 
41

Gain on sales of assets and businesses
(33
)
 
(60
)
Deferred income taxes and amortization of investment tax credits
284

 
(2
)
Net fair value changes related to derivatives
107

 
151

Net realized and unrealized (gains) losses on NDT funds
(404
)
 
80

Other non-cash operating activities
277

 
479

Changes in assets and liabilities:
 
 
 
Accounts receivable
618

 
(105
)
Inventories
19

 
60

Accounts payable and accrued expenses
(924
)
 
(342
)
Option premiums received (paid), net
48

 
(36
)
Collateral (posted) received, net
(311
)
 
81

Income taxes
151

 
129

Pension and non-pension postretirement benefit contributions
(355
)
 
(345
)
Other assets and liabilities
(970
)
 
(441
)
Net cash flows provided by operating activities
2,898


3,869

Cash flows from investing activities
 
 
 
Capital expenditures
(3,572
)
 
(3,807
)
Proceeds from NDT fund sales
6,920

 
3,822

Investment in NDT funds
(6,847
)
 
(3,924
)
Acquisition of assets and businesses, net

 
(57
)
Proceeds from sales of assets and businesses
14

 
89

Other investing activities
26

 
31

Net cash flows used in investing activities
(3,459
)

(3,846
)
Cash flows from financing activities
 
 
 
Changes in short-term borrowings
470

 
200

Proceeds from short-term borrowings with maturities greater than 90 days

 
126

Repayments on short-term borrowings with maturities greater than 90 days
(125
)
 
(1
)
Issuance of long-term debt
850

 
1,488

Retirement of long-term debt
(574
)
 
(1,309
)
Dividends paid on common stock
(704
)
 
(666
)
Proceeds from employee stock plans
75

 
27

Other financing activities
(34
)
 
(50
)
Net cash flows used in financing activities
(42
)

(185
)
Decrease in cash, cash equivalents and restricted cash
(603
)
 
(162
)
Cash, cash equivalents and restricted cash at beginning of period
1,781

 
1,190

Cash, cash equivalents and restricted cash at end of period
$
1,178


$
1,028

 
 
 
 
Supplemental cash flow information
 
 
 
Decrease in capital expenditures not paid
$
(133
)
 
$
(283
)
Increase in PPE related to ARO update
301

 
47


See the Combined Notes to Consolidated Financial Statements
11

Table of Contents

EXELON CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In millions)
June 30, 2019
 
December 31, 2018
ASSETS
 
 
 
Current assets
 
 
 
Cash and cash equivalents
$
735

 
$
1,349

Restricted cash and cash equivalents
252

 
247

Accounts receivable, net
 
 
 
Customer (net of allowance for uncollectible accounts of $257 and $283 as of June 30, 2019 and December 31, 2018, respectively)
4,125

 
4,607

Other (net of allowance for uncollectible accounts of $40 and $36 as of June 30, 2019 and December 31, 2018, respectively)
1,008

 
1,256

Mark-to-market derivative assets
526

 
804

Unamortized energy contract assets
47

 
48

Inventories, net
 
 
 
Fossil fuel and emission allowances
258

 
334

Materials and supplies
1,412

 
1,351

Regulatory assets
1,194

 
1,222

Assets held for sale
880

 
904

Other
1,218

 
1,238

Total current assets
11,655


13,360

Property, plant and equipment (net of accumulated depreciation and amortization of $24,266 and $22,902 as of June 30, 2019 and December 31, 2018, respectively)
78,030

 
76,707

Deferred debits and other assets
 
 
 
Regulatory assets
8,166

 
8,237

Nuclear decommissioning trust funds
12,513

 
11,661

Investments
618

 
625

Goodwill
6,677

 
6,677

Mark-to-market derivative assets
537

 
452

Unamortized energy contract assets
362

 
372

Other
3,038

 
1,575

Total deferred debits and other assets
31,911


29,599

Total assets(a)
$
121,596


$
119,666


See the Combined Notes to Consolidated Financial Statements
12

Table of Contents

EXELON CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In millions)
June 30, 2019
 
December 31, 2018
LIABILITIES AND SHAREHOLDERS’ EQUITY
 
 
 
Current liabilities
 
 
 
Short-term borrowings
$
1,059

 
$
714

Long-term debt due within one year
3,776

 
1,349

Accounts payable
3,248

 
3,800

Accrued expenses
1,706

 
2,112

Payables to affiliates
5

 
5

Regulatory liabilities
403

 
644

Mark-to-market derivative liabilities
163

 
475

Unamortized energy contract liabilities
145

 
149

Renewable energy credit obligation
298

 
344

Liabilities held for sale
764

 
777

Other
1,367

 
1,035

Total current liabilities
12,934

 
11,404

Long-term debt
31,909

 
34,075

Long-term debt to financing trusts
390

 
390

Deferred credits and other liabilities
 
 
 
Deferred income taxes and unamortized investment tax credits
11,826

 
11,330

Asset retirement obligations
10,023

 
9,679

Pension obligations
3,720

 
3,988

Non-pension postretirement benefit obligations
2,007

 
1,928

Spent nuclear fuel obligation
1,186

 
1,171

Regulatory liabilities
9,793

 
9,559

Mark-to-market derivative liabilities
450

 
479

Unamortized energy contract liabilities
398

 
463

Other
3,053

 
2,130

Total deferred credits and other liabilities
42,456

 
40,727

Total liabilities(a)
87,689


86,596

Commitments and contingencies

 

Shareholders’ equity
 
 
 
Common stock (No par value, 2,000 shares authorized, 972 shares and 968 shares outstanding at June 30, 2019 and December 31, 2018, respectively)
19,209

 
19,116

Treasury stock, at cost (2 shares at June 30, 2019 and December 31, 2018)
(123
)
 
(123
)
Retained earnings
15,452

 
14,766

Accumulated other comprehensive loss, net
(2,990
)
 
(2,995
)
Total shareholders’ equity
31,548


30,764

Noncontrolling interests
2,359

 
2,306

Total equity
33,907


33,070

Total liabilities and shareholders’ equity
$
121,596


$
119,666

__________
(a)
Exelon’s consolidated assets include $9,526 million and $9,667 million at June 30, 2019 and December 31, 2018, respectively, of certain VIEs that can only be used to settle the liabilities of the VIE. Exelon’s consolidated liabilities include $3,568 million and $3,548 million at June 30, 2019 and December 31, 2018, respectively, of certain VIEs for which the VIE creditors do not have recourse to Exelon. See Note 2Variable Interest Entities for additional information.

See the Combined Notes to Consolidated Financial Statements
13

Table of Contents

EXELON CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY
(Unaudited)
 
Six Months Ended June 30, 2019
(In millions, shares
in thousands)
Issued
Shares
 
Common
Stock
 
Treasury
Stock
 
Retained
Earnings
 
Accumulated
Other
Comprehensive
Loss, net
 
Noncontrolling
Interests
 
Total Shareholders'
Equity
Balance, December 31, 2018
970,020

 
$
19,116

 
$
(123
)
 
$
14,766

 
$
(2,995
)
 
$
2,306

 
$
33,070

Net income

 

 

 
907

 

 
59

 
966

Long-term incentive plan activity
2,446

 
(3
)
 

 

 

 

 
(3
)
Employee stock purchase plan issuances
320

 
51

 

 

 

 

 
51

Changes in equity of noncontrolling interests

 

 

 

 

 
(17
)
 
(17
)
Sale of noncontrolling interests

 
7

 

 

 

 

 
7

Common stock dividends
($0.36/common share)

 

 

 
(352
)
 

 

 
(352
)
Other comprehensive loss, net of income taxes

 

 

 

 
(17
)
 
(1
)
 
(18
)
Balance, March 31, 2019
972,786


$
19,171


$
(123
)

$
15,321


$
(3,012
)

$
2,347


$
33,704

Net income

 

 

 
484

 

 
10

 
494

Long-term incentive plan activity
320

 
14

 

 

 

 

 
14

Employee stock purchase plan issuances
311

 
24

 

 

 

 

 
24

Changes in equity of noncontrolling interests

 

 

 

 

 
3

 
3

Sale of noncontrolling interests

 

 

 

 

 

 

Common stock dividends
($0.36/common share)

 

 

 
(353
)
 

 

 
(353
)
Other comprehensive income (loss), net of income taxes

 

 

 

 
22

 
(1
)
 
21

Balance, June 30, 2019
973,417

 
$
19,209

 
$
(123
)
 
$
15,452

 
$
(2,990
)
 
$
2,359

 
$
33,907

 
Six Months Ended June 30, 2018
(In millions, shares
in thousands)
Issued
Shares
 
Common
Stock
 
Treasury
Stock
 
Retained
Earnings
 
Accumulated
Other
Comprehensive
Loss, net
 
Noncontrolling
Interests
 
Total Shareholders'
Equity
Balance, December 31, 2017
965,168

 
$
18,964

 
$
(123
)
 
$
14,081

 
$
(3,026
)
 
$
2,291

 
$
32,187

Net income

 

 

 
585

 

 
51

 
636

Long-term incentive plan activity
1,685

 
(3
)
 

 

 

 

 
(3
)
Employee stock purchase plan issuances
361

 
12

 

 

 

 

 
12

Changes in equity of noncontrolling interests

 

 

 

 

 
(9
)
 
(9
)
Common stock dividends
($0.35/common share)


 

 

 
(334
)
 

 

 
(334
)
Other comprehensive income, net of income taxes

 

 

 

 
71

 
1

 
72

Impact of adoption of Recognition and Measurement of Financial Assets and Liabilities standard

 

 

 
14

 
(10
)
 

 
4

Balance, March 31, 2018
967,214

 
$
18,973

 
$
(123
)
 
$
14,346

 
$
(2,965
)
 
$
2,334

 
$
32,565

Net income

 

 

 
539

 

 
3

 
542

Long-term incentive plan activity
183

 
20