10-K – 2026-02-12 – exc-20251231.htm

energy efficiency and demand response programs spend for BGE, Pepco, DPL, and ACE of $85 million, $41 million, $16 million, and $55 million for the year ended December 31, 2025, respectively, and $127 million, $52 million, $21 million, and $37 million for the year ended December 31, 2024, respectively. PECO had no energy efficiency and demand response programs spend recorded to a regulatory asset for the years ended December 31, 2025 and 2024.
• Changes in working capital and other noncurrent assets and liabilities for the Utility Registrants and Exelon Corporate total $(1,017) million and $(807) million. The change in working capital and other noncurrent assets and liabilities for Exelon Corporate and the Utility Registrants is dependent upon the normal course of operations for all Registrants. For ComEd, it is also dependent upon whether the participating nuclear-powered generating facilities owe money to ComEd as a result of the established pricing for CMCs. For the year ended December 31, 2025, the established pricing resulted in nuclear-powered generating facilities owing payments to ComEd primarily due to $804 million of nuclear production tax credits, which is reported within the cash flows from operations as a change in Accounts receivable. This change is offset by an increase in the Carbon mitigation credit regulatory liability. See Note 2 — Regulatory Matters of the Combined Notes to Consolidated Financial Statements for additional information.
Cash Flows from Investing Activities
The following table provides a summary of the change in cash flows from investing activities for the years ended December 31, 2025 and 2024 by Registrant:

(Decrease) increase in cash flows from investing activities Exelon ComEd PECO BGE PHI Pepco DPL ACE
Capital expenditures $ (1,432) $ (704) $ (314) $ (237) $ (193) $ (28) $ 22  $ (17)

Proceeds from sales of assets (34) —  —  —  4  2  —  2 

Other investing activities (17) (1) (3) (3) —  —  —  — 
(Decrease) increase in cash flows from investing activities $ (1,483) $ (705) $ (317) $ (240) $ (189) $ (26) $ 22  $ (15)

Significant investing cash flow impacts for the Registrants for 2025 and 2024 were as follows:
• Variances in Capital expenditures are primarily due to the timing of cash expenditures for capital projects. See the "Credit Matters and Cash Requirements" section below for additional information on projected capital expenditure spending for the Registrants.
Cash Flows from Financing Activities
The following table provides a summary of the change in cash flows from financing activities for the years ended December 31, 2025 and 2024 by Registrant:

Increase (decrease) in cash flows from financing activities Exelon ComEd PECO BGE PHI Pepco DPL ACE
Changes in short-term borrowings, net $ (583) $ 530  $ (219) $ (14) $ (54) $ 35  $ (64) $ (25)
Long-term debt, net 1,347  175  125  (150) (17) —  (17) — 
Changes in intercompany money pool —  —  —  —  19  —  —  — 
Issuance of common stock 543  —  —  —  —  —  —  — 
Dividends paid on common stock (93) (37) (146) (25) —  32  18  (56)

Distributions to member —  —  —  —  (4) —  —  — 
Contributions from parent/member —  164  (18) 294  63  (67) (53) 13 

Other financing activities 8  6  (3) 1  13  10  (2) (1)
Increase (decrease) in cash flows from financing activities $ 1,222  $ 838  $ (261) $ 106  $ 20  $ 10  $ (118) $ (69)

Significant financing cash flow impacts for the Registrants for 2025 and 2024 were as follows:
• Changes in short-term borrowings, net , is driven by repayments on and issuances of notes due in less than 365 days. Refer to Note 14 — Debt and Credit Agreements of the Combined Notes to
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Consolidated Financial Statements for additional information on Short-term borrowings for the Registrants.
• Long-term debt, net, varies due to debt issuances and redemptions each year. Refer to the debt issuances and redemptions tables below for additional information for the Registrants.
• Changes in intercompany money pool are driven by short-term borrowing needs. Refer below for more information regarding the intercompany money pool.
• Issuance of common stock is driven by the issuance of Exelon common stock under the ATM program in 2025 compared to 2024. See Note 17 — Shareholders' Equity of the Combined Notes to Consolidated Financial Statements for additional information.
• Exelon’s ability to pay dividends on its Common stock depends on the receipt of dividends paid by its operating subsidiaries. The payments of dividends to Exelon by its subsidiaries in turn depend on their results of operations and cash flows and other items affecting Retained earnings. See Note 16 — Commitments and Contingencies of the Combined Notes to Consolidated Financial Statements for additional information on dividend restrictions. See below for quarterly dividends declared.
• Other financing activities primarily consists of debt issuance costs. See the debt issuances table below for additional information on the Registrants’ debt issuances.
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Debt Issuances and Redemptions
See Note 14 — Debt and Credit Agreements of the Combined Notes to Consolidated Financial Statements for additional information of the Registrants’ long-term debt. The Registrants' debt activities for 2025 and 2024 was as follows:
During 2025, the following long-term debt was issued:

Company Type Interest Rate Maturity Amount Use of Proceeds
Exelon Junior Subordinated Notes (a)
6.50% March 15, 2055 $1,000 Repay outstanding commercial paper obligations and for general corporate purposes.
Exelon Notes 5.125% March 15, 2031 500 Repay outstanding commercial paper obligations and for general corporate purposes.
Exelon Notes 5.875% March 15, 2055 500 Repay outstanding commercial paper obligations and for general corporate purposes.
Exelon Convertible Senior Notes 3.25% March 15, 2029 1,000 Repay or refinance debt and for general corporate purposes.
ComEd First Mortgage Bonds 5.95% June 1, 2055 725 Repay outstanding commercial paper obligations and for general corporate purposes.
PECO First Mortgage Bonds 4.875% September 15, 2035 525 Repay existing indebtedness, repay outstanding commercial paper obligations, and for general corporate purposes.
PECO First Mortgage Bonds 5.65% September 15, 2055 525 Repay existing indebtedness, repay outstanding commercial paper obligations, and for general corporate purposes.
BGE Notes 5.45% June 1, 2035 650 Repay outstanding commercial paper obligations and for general corporate purposes.
Pepco First Mortgage Bonds 5.78% September 17, 2055 75 Repay existing indebtedness and for general corporate purposes.
Pepco First Mortgage Bonds 5.48% March 26, 2040 200 Repay existing indebtedness and for general corporate purposes.
DPL First Mortgage Bonds 5.28% March 26, 2035 125 Repay existing indebtedness and for general corporate purposes.
ACE First Mortgage Bonds 5.28% March 26, 2035 100 Repay existing indebtedness and for general corporate purposes.
ACE First Mortgage Bonds 5.54% November 19, 2040 75 Repay existing indebtedness and for general corporate purposes.
ACE First Mortgage Bonds 5.81% November 19, 2055 75 Repay existing indebtedness and for general corporate purposes.

__________
(a) The Junior Subordinated Notes bear interest at 6.50% per annum, commencing February 19, 2025 to, but excluding March 15, 2035. Thereafter, the interest rate resets every five years on March 15 and will be set at a rate per annum equal to the Five-year U.S. Treasury Rate plus a spread of 1.975%.

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During 2024, the following long-term debt was issued:

Company Type Interest Rate Maturity Amount Use of Proceeds
Exelon Notes 5.15% March 15, 2029 $650 Repay existing indebtedness and for general corporate purposes.
Exelon Notes 5.45% March 15, 2034 650 Repay existing indebtedness and for general corporate purposes.
Exelon Notes 5.60% March 15, 2053 400 Repay existing indebtedness and for general corporate purposes.
ComEd First Mortgage Bonds 5.30% June 1, 2034 400 Repay outstanding commercial paper obligations and to fund other general corporate purposes.
ComEd First Mortgage Bonds 5.65% June 1, 2054 400 Repay outstanding commercial paper obligations and to fund other general corporate purposes.
PECO First Mortgage Bonds 5.25% September 15, 2054 575 Refinance existing indebtedness, refinance outstanding commercial paper obligations, and for general corporate purposes.
BGE Notes 5.30% June 1, 2034 400 Repay outstanding commercial paper obligations, repay existing indebtedness, and for general corporate purposes.
BGE Notes 5.65% June 1, 2054 400 Repay existing indebtedness and for general corporate purposes.
Pepco First Mortgage Bonds 5.20% March 15, 2034 375 Repay existing indebtedness and for general corporate purposes.
Pepco First Mortgage Bonds 5.50% March 15, 2054 300 Repay existing indebtedness and for general corporate purposes.
Pepco First Mortgage Bonds 5.24% March 20, 2034 100 Repay existing indebtedness and for general corporate purposes.
DPL First Mortgage Bonds 5.55% March 20, 2054 75 Repay existing indebtedness and for general corporate purposes.
DPL First Mortgage Bonds 5.55% March 20, 2054 75 Repay existing indebtedness and for general corporate purposes.
DPL First Mortgage Bonds 5.29% August 28, 2034 75 Repay existing indebtedness and for general corporate purposes.
DPL First Mortgage Bonds 5.49% August 28, 2039 100 Repay existing indebtedness and for general corporate purposes.

During 2025, the following long-term debt was retired and/or redeemed:

Company Type Interest Rate Maturity Amount
Exelon Senior Notes 3.95% June 15, 2025 $ 807 
Exelon Software Licensing Agreement 2.30% December 1, 2025 4 
PECO First Mortgage Bonds 3.15% October 15, 2025 350 
ACE Senior Notes 3.50% December 1, 2025 150 

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During 2024, the following long-term debt was retired and/or redeemed:

Company (a)
Type Interest Rate Maturity Amount
Exelon SMBC Term Loan Agreement SOFR plus 0.85% April 8, 2024 $ 500 
Exelon Software Licensing Agreement 3.62% December 1, 2025 1 
Exelon Software Licensing Agreement 3.95% May 1, 2024 2 
Exelon Software Licensing Agreement 2.30% December 1, 2025 4 
ComEd First Mortgage Bonds 3.10% November 1, 2024 250 
Pepco First Mortgage Bonds 3.60% March 15, 2024 400 
DPL (b)
Unsecured tax-exempt bonds 4.32% July 1, 2024 33 
ACE First Mortgage Bonds 3.38% September 1, 2024 150 

(a) Exelon repurchased a portion of its Senior unsecured notes during 2024. Refer to Note 14 — Debt and Credit Agreements of the Combined Notes to Consolidated Financial Statements for additional information.
(b) Variable interest on the DPL unsecured tax-exempt bonds reset on a weekly basis.

From time to time and as market conditions warrant, the Registrants may engage in long-term debt retirements via tender offers, open market repurchases or other viable options to reduce debt on their respective Balance sheets.
Dividends
Quarterly dividends declared by the Exelon Board of Directors during the year ended December 31, 2025 and for the first quarter of 2026 were as follows:

Period Declaration Date Shareholder of
Record Date Dividend Payable Date Cash per Share (a)

First Quarter 2025 February 12, 2025 February 24. 2025 March 14, 2025 $ 0.4000 
Second Quarter 2025 April 29, 2025 May 12, 2025 June 13, 2025 $ 0.4000 
Third Quarter 2025 July 29, 2025 August 11, 2025 September 15, 2025 $ 0.4000 
Fourth Quarter 2025 October 29, 2025 November 10, 2025 December 15, 2025 $ 0.4000 
First Quarter 2026 February 12, 2026 March 2, 2026 March 13, 2026 $ 0.4200 

___________
(a) Exelon's Board of Directors approved an updated dividend policy for 2026. The 2026 quarterly dividend will be $0.42 per share.
Credit Matters and Cash Requirements
The Registrants fund liquidity needs for capital expenditures, working capital, energy hedging, and other financial commitments through cash flows from operations, public debt offerings, commercial paper markets, and large diversified credit facilities. The credit facilities include $4 billion in aggregate total commitments of which $3.3 billion was available to support additional commercial paper as of December 31, 2025, and of which no financial institution has more than 6.2% of the aggregate commitments for the Registrants. During 2025, the Registrants had access to the commercial paper markets and availability under their revolving credit facilities to fund their short-term liquidity needs, when necessary. Exelon Corporate and the Utility Registrants each have a 5-year revolving credit facility. See Note 14 — Debt and Credit Agreements of the Combined Notes to Consolidated Financial Statements for additional information. The Registrants routinely review the sufficiency of their liquidity position, including appropriate sizing of credit facility commitments, by performing various stress test scenarios, such as commodity price movements, increases in margin-related transactions, changes in hedging levels, and the impacts of hypothetical credit downgrades. The Registrants closely monitor events in the financial markets and the financial institutions associated with the credit facilities, including monitoring credit ratings and outlooks, credit default swap levels, capital raising, and merger activity. See PART I, ITEM 1A. RISK FACTORS for additional information regarding the effects of uncertainty in the capital and credit markets.
The Registrants believe their cash flow from operating activities, access to credit markets, and their credit facilities provide sufficient liquidity to support the estimated future cash requirements discussed below.
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On August 4, 2022, Exelon executed an equity distribution agreement (“2022 Equity Distribution Agreement”), with certain sales agents and forward sellers and certain forward purchasers, establishing an ATM equity distribution program under which it may offer and sell shares of its Common stock, having an aggregate gross sales price of up to $1 billion through August 3, 2025. On May 2, 2025, Exelon executed an additional equity distribution agreement ("2025 Equity Distribution Agreement" and, together with the August 4, 2022 Equity Distribution Agreement, "Equity Distribution Agreements"), with certain sales agents and forward sellers and certain forward purchasers, establishing an ATM equity distribution program which it may offer and sell shares of its Common stock, having an aggregate gross sales price of up to $2.5 billion through May 2, 2028. The 2025 Equity Distribution Agreement replaced the 2022 Equity Distribution Agreement. Exelon has no obligation to offer or sell any shares of Common stock under the 2025 Equity Distribution Agreement and may, at any time, suspend or terminate offers and sales under the 2025 Equity Distribution Agreement. Exelon issued a total of 23.6 million shares of common stock with net proceeds of $979 million under these agreements in the years ended December 31, 2023 through December 31, 2025.
In addition, during the twelve months ended December 31, 2025, Exelon entered into various forward sale agreements under the 2025 ATM programs. The forward sale agreements require Exelon to, at its election prior to the maturity date, either (i) physically settle the transactions by issuing shares of its Common stock to the forward counterparties in exchange for net proceeds at the then-applicable forward sale price specified by the agreements or (ii) net settle the transactions in whole or in part through the delivery to the forward counterparties or receipt from the forward counterparties of cash or shares in accordance with the provisions of the agreements.
No amounts have been or will be recorded on Exelon's Balance sheets with respect to the equity offerings until the equity forward sale agreements have been settled. Each initial forward sale price is subject to adjustment on a daily basis based on a floating interest rate factor and will decrease by other fixed amounts specified in the agreements. Until settlement of the equity forward, earnings per share dilution resulting from the agreement, if any, will be determined under the treasury stock method. For the twelve months ended December 31, 2025, approximately 15.4 million shares under the forward sale agreements were not included in the calculation of diluted earnings per share because their effect would have been antidilutive.
Inclusive of the impact of the forward sale agreements, $1.5 billion of Common stock remained available for sale pursuant to the ATM program as of December 31, 2025.
See Note 17 — Shareholders' Equity of the Combined Notes to the Consolidated Financial Statements for additional information regarding ATM program terms, forward sale agreements, and share-level activity.
The following table presents the incremental collateral that each Utility Registrant would have been required to provide in the event each Utility Registrant lost its investment grade credit rating at December 31, 2025 and available credit facility capacity prior to any incremental collateral at December 31, 2025:

PJM Credit Policy Collateral Other Incremental Collateral Required (a)
Available Credit Facility Capacity Prior to Any Incremental Collateral
ComEd $ 27  $ —  $ 985 
PECO —  58  595 
BGE —  43  575 
Pepco 4  —  55 
DPL 1  14  139 
ACE —  —  92 
__________
(a) Represents incremental collateral related to natural gas procurement contracts.
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Capital Expenditures
As of December 31, 2025, estimates of future capital expenditures for plant additions and improvements were as follows:

(in millions) (a)
2026 Transmission
  2026 Distribution
      2026 Gas
      Total 2026
     Beyond 2026 (b)

Exelon N/A N/A N/A $ 9,950  $ 31,300 
ComEd 1,100  2,425  N/A 3,500  11,450 
PECO 450  1,375  400  2,225  7,075 
BGE 1,075  575  525  2,175  6,100 
PHI 725  1,250  50  2,050  6,650 
Pepco 325  650  N/A 975  2,925 
DPL 225  325  50  625  2,175 
ACE 175  275  N/A 450  1,550 

___________
(a) Numbers rounded to the nearest $25M and may not sum due to rounding.
(b) Includes estimated capital expenditures for the Utility Registrants from 2027 to 2029.
Projected capital expenditures and other investments are subject to periodic review and revision to reflect changes in economic conditions and other factors. Projected capital expenditures at the Utility Registrants are for continuing projects to maintain and improve operations, including enhancing reliability and adding capacity to the transmission and distribution systems. The Utility Registrants anticipate that they will fund their capital expenditures with a combination of internally generated funds and borrowings and additional capital contributions from parent.
Retirement Benefits
Management considers various factors when making pension funding decisions, including actuarially determined minimum contribution requirements under ERISA, contributions required to avoid benefit restrictions and at-risk status as defined by the Pension Protection Act of 2006 (the Act), management of the pension obligation, and regulatory implications. The Act requires the attainment of certain funding levels to avoid benefit restrictions (such as an inability to pay lump sums or to accrue benefits prospectively), and at-risk status (which triggers higher minimum contribution requirements and participant notification). The projected contributions below reflect a funding strategy to make annual contributions with the objective of achieving 100% funded status on an ABO basis over time. This funding strategy helps minimize volatility of future period required pension contributions. Exelon’s estimated annual qualified pension contributions will be $325 million in 2026. Unlike the qualified pension plans, Exelon’s non-qualified pension plans are not funded, given that they are not subject to statutory minimum contribution requirements.
While OPEB plans are also not subject to statutory minimum contribution requirements, Exelon does fund certain of its plans. For Exelon's funded OPEB plans, contributions generally equal accounting costs, however, Exelon’s management has historically considered several factors in determining the level of contributions to its OPEB plans, including liabilities management, levels of benefit claims paid, and regulatory implications (amounts deemed prudent to meet regulatory expectations and best assure continued rate recovery). The amounts below include benefit payments related to unfunded plans.
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The following table provides all Registrants' planned contributions to the qualified pension plans, planned benefit payments to non-qualified pension plans, and planned contributions to OPEB plans in 2026:

Qualified Pension Plans Non-Qualified Pension Plans OPEB
Exelon $ 325  $ 19  $ 48 
ComEd 217  3  22 
PECO 9  1  4 
BGE 32  2  14 

PHI 48  7  6 
Pepco 1  —  6 
DPL 1  —  — 
ACE 14  —  — 

To the extent interest rates decline significantly or the pension and OPEB plans earn less than the expected asset returns, annual pension contribution requirements in future years could increase. Conversely, to the extent interest rates increase significantly or the pension and OPEB plans earn greater than the expected asset returns, annual pension and OPEB contribution requirements in future years could decrease. Additionally, expected contributions could change if Exelon changes its pension or OPEB funding strategy.
See Note 12 — Retirement Benefits of the Combined Notes to Consolidated Financial Statements for additional information on pension and OPEB contributions.
Cash Requirements for Other Financial Commitments
The following tables summarize the Registrants' future estimated cash payments as of December 31, 2025 under existing financial commitments:
Exelon

2026 Beyond 2026 Total Time Period
Long-term debt and finance leases (a)
$ 1,665  $ 47,763  $ 49,428  2026 - 2055
Interest payments on long-term debt (b)
1,932  31,796  33,728  2026 - 2055
Operating leases 26  187  213  2026 - 2099
Fuel purchase agreements (c)
321  1,293  1,614  2026 - 2039

Electric supply procurement 4,259  2,733  6,992  2026 - 2029
Long-term renewable energy and REC commitments 290  7,716  8,006  2026 - 2044

ZEC commitments 156  62  218  2026 - 2027
Pension contributions (d)
325  1,625  1,950  2026 - 2031
Other purchase obligations (e)
9,526  5,303  14,829  2026 - 2035
Total cash requirements $ 18,500  $ 98,478  $ 116,978 

__________
(a) Includes amounts from ComEd and PECO financing trusts.
(b) Interest payments are estimated based on final maturity dates of debt securities outstanding as of December 31, 2025 and do not reflect anticipated future refinancing, early redemptions, or debt issuances. Variable rate interest obligations are estimated based on rates as of December 31, 2025. Includes estimated interest payments due to ComEd and PECO financing trusts.
(c) Represents commitments to purchase natural gas and related transportation, storage capacity, and services.
(d) These amounts represent Exelon’s expected contributions to its qualified pension plans. Qualified pension contributions for years after 2031 are not included.
(e) Represents the future estimated value at December 31, 2025 of the cash flows associated with all contracts, both cancellable and non-cancellable, entered into between the Registrants and third-parties for the provision of services and materials, entered into in the normal course of business, and not specifically reflected elsewhere in this table. These estimates are subject to significant variability from period to period.

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ComEd

2026 Beyond 2026 Total Time Period
Long-term debt (a)
$ 500  $ 12,592  $ 13,092  2026 - 2055
Interest payments on long-term debt (b)
507  9,880  10,387  2026 - 2055

Electric supply procurement 286  273  559  2026 - 2028
Long-term renewable energy and REC commitments 268  7,606  7,874  2026 - 2044

ZEC commitments 156  62  218  2026 - 2027
Other purchase obligations (c)
2,093  1,076  3,169  2026 - 2034
Total cash requirements $ 3,810  $ 31,489  $ 35,299 

__________
(a) Includes amounts from ComEd financing trust.
(b) Interest payments are estimated based on final maturity dates of debt securities outstanding as of December 31, 2025 and do not reflect anticipated future refinancing, early redemptions, or debt issuances. Includes estimated interest payments due to the ComEd financing trust.
(c) Represents the future estimated value, as of December 31, 2025, of the cash flows associated with all contracts, both cancellable and non-cancellable, entered into between ComEd and third-parties for the provision of services and materials, entered into in the normal course of business, and not specifically reflected elsewhere in this table. These estimates are subject to significant variability from period to period.

PECO

2026 Beyond 2026 Total Time Period
Long-term debt (a)
$ —  $ 6,659  $ 6,659  2026 - 2055
Interest payments on long-term debt (b)
266  5,895  6,161  2026 - 2055
Operating leases 1  —  1  2026 - 2035
Fuel purchase agreements (c)
156  578  734  2026 - 2039
Electric supply procurement 767  177  944  2026 - 2027
Other purchase obligations (d)
1,774  632  2,406  2026 - 2035
Total cash requirements $ 2,964  $ 13,941  $ 16,905 

__________
(a) Includes amounts from PECO financing trusts.
(b) Interest payments are estimated based on final maturity dates of debt securities outstanding as of December 31, 2025 and do not reflect anticipated future refinancing, early redemptions, or debt issuances. Includes estimated interest payments due to the PECO financing trusts.
(c) Represents commitments to purchase natural gas and related transportation, storage capacity, and services.
(d) Represents the future estimated value, as of December 31, 2025, of the cash flows associated with all contracts, both cancellable and non-cancellable, entered into between PECO and third-parties for the provision of services and materials, entered into in the normal course of business, and not specifically reflected elsewhere in this table. These estimates are subject to significant variability from period to period.
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BGE

2026 Beyond 2026 Total Time Period
Long-term debt $ 350  $ 5,750  $ 6,100  2026 - 2054
Interest payments on long-term debt (a)
241  4,749  4,990  2026 - 2054
Operating leases 4  29  33  2026 - 2099
Fuel purchase agreements (b)
130  506  636  2026 - 2039
Electric supply procurement 1,396  961  2,357  2026 - 2028
Other purchase obligations (c)
2,363  945  3,308  2026 - 2033
Total cash requirements $ 4,484  $ 12,940  $ 17,424 

__________
(a) Interest payments are estimated based on final maturity dates of debt securities outstanding as of December 31, 2025 and do not reflect anticipated future refinancing, early redemptions, or debt issuances.
(b) Represents commitments to purchase natural gas and related transportation, storage capacity, and services.
(c) Represents the future estimated value, as of December 31, 2025, of the cash flows associated with all contracts, both cancellable and non-cancellable, entered into between BGE and third-parties for the provision of services and materials, entered into in the normal course of business, and not specifically reflected elsewhere in this table. These estimates are subject to significant variability from period to period.

PHI

2026 Beyond 2026 Total Time Period
Long-term debt and finance leases $ 64  $ 9,225  $ 9,289  2026 - 2055
Interest payments on long-term debt (a)
389  6,408  6,797  2026 - 2055

Operating leases 13  66  79  2026 - 2032
Fuel purchase agreements (b)
35  209  244  2026 - 2031
Electric supply procurement 1,810  1,322  3,132  2026 - 2029
Long-term renewable energy commitments 22  110  132  2026 - 2033
Other purchase obligations (c)
1,749  1,534  3,283  2026 - 2033

Total cash requirements $ 4,082  $ 18,874  $ 22,956 

__________
(a) Interest payments are estimated based on final maturity dates of debt securities outstanding as of December 31, 2025 and do not reflect anticipated future refinancing, early redemptions, or debt issuances. Variable rate interest obligations are estimated based on rates as of December 31, 2025.
(b) Represents commitments to purchase natural gas and related transportation, storage capacity, and services.
(c) Represents the future estimated value, as of December 31, 2025, of the cash flows associated with all contracts, both cancellable and non-cancellable, entered into between Pepco, DPL, ACE, and PHISCO and third-parties for the provision of services and materials, entered into in the normal course of business, and not specifically reflected elsewhere in this table. These estimates are subject to significant variability from period to period.
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Pepco

2026 Beyond 2026 Total Time Period
Long-term debt and finance leases $ 6  $ 4,694  $ 4,700  2026 - 2055
Interest payments on long-term debt (a)
205  3,553  3,758  2026 - 2055

Operating leases 5  25  30  2026 - 2032
Electric supply procurement 936  711  1,647  2026 - 2029
Other purchase obligations (b)
1,032  836  1,868  2026 - 2033

Total cash requirements $ 2,184  $ 9,819  $ 12,003 

__________ 
(a) Interest payments are estimated based on final maturity dates of debt securities outstanding as of December 31, 2025 and do not reflect anticipated future refinancing, early redemptions, or debt issuances.
(b) Represents the future estimated value, as of December 31, 2025, of the cash flows associated with all contracts, both cancellable and non-cancellable, entered into between Pepco and third-parties for the provision of services and materials, entered into in the normal course of business, and not specifically reflected elsewhere in this table. These estimates are subject to significant variability from period to period.

DPL

2026 Beyond 2026 Total Time Period
Long-term debt and finance leases $ 53  $ 2,308  $ 2,361  2026 - 2054
Interest payments on long-term debt (a)
100  1,695  1,795  2026 - 2054

Operating leases 6  37  43  2025 - 2031
Fuel purchase agreements (b)
35  209  244  2026 - 2031
Electric supply procurement 474  307  781  2026 - 2028
Long-term renewable energy commitments 22  110  132  2026 - 2033
Other purchase obligations (c)
401  231  632  2026 - 2031
Total cash requirements $ 1,091  $ 4,897  $ 5,988 

__________
(a) Interest payments are estimated based on final maturity dates of debt securities outstanding as of December 31, 2025 and do not reflect anticipated future refinancing, early redemptions, or debt issuances. Variable rate interest obligations are estimated based on rates as of December 31, 2025.
(b) Represents commitments to purchase natural gas and related transportation, storage capacity, and services.
(c) Represents the future estimated value, as of December 31, 2025, of the cash flows associated with all contracts, both cancellable and non-cancellable, entered into between DPL and third-parties for the provision of services and materials, entered into in the normal course of business, and not specifically reflected elsewhere in this table. These estimates are subject to significant variability from period to period.
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ACE

2026 Beyond 2026 Total Time Period
Long-term debt and finance leases $ 5  $ 2,038  $ 2,043  2026 - 2055
Interest payments on long-term debt (a)
70  1,068  1,138  2026 - 2055

Operating leases 2  5  7  2026 - 2030
Electric supply procurement 400  304  704  2026 - 2028
Other purchase obligations (b)
255  428  683  2026 - 2030
Total cash requirements $ 732  $ 3,843  $ 4,575 

__________
(a) Interest payments are estimated based on final maturity dates of debt securities outstanding as of December 31, 2025 and do not reflect anticipated future refinancing, early redemptions, or debt issuances.
(b) Represents the future estimated value, as of December 31, 2025, of the cash flows associated with all contracts, both cancellable and non-cancellable, entered into between ACE and third-parties for the provision of services and materials, entered into in the normal course of business, and not specifically reflected elsewhere in this table. These estimates are subject to significant variability from period to period.
See Note 16 — Commitments and Contingencies and Note 2 — Regulatory Matters of the Combined Notes to Consolidated Financial Statements for additional information of the Registrants’ other commitments potentially triggered by future events. Additionally, see below for where to find additional information regarding the financial commitments in the tables above in the Combined Notes to the Consolidated Financial Statements:

Item Location within Notes to the Consolidated Financial Statements
Long-term debt Note 14 — Debt and Credit Agreements
Interest payments on long-term debt Note 14 — Debt and Credit Agreements
Finance leases Note 9 — Leases
Operating leases Note 9 — Leases

Long-term renewable energy and REC commitments Note 2 — Regulatory Matters
ZEC commitments Note 2 — Regulatory Matters

Pension contributions Note 12 — Retirement Benefits

Credit Facilities
Exelon Corporate, ComEd, and BGE meet their short-term liquidity requirements primarily through the issuance of commercial paper. PECO meets its short-term liquidity requirements primarily through the issuance of commercial paper and borrowings from the Exelon intercompany money pool. Pepco, DPL, and ACE meet their short-term liquidity requirements primarily through the issuance of commercial paper and borrowings from the PHI intercompany money pool. P HI Corporate meets its short-term liquidity requirements primarily through the issuance of short-term notes and the Exelon intercompany money pool. The Registrants may use their respective credit facilities for general corporate purposes, including meeting short-term funding requirements and the issuance of letters of credit.
See Note 14 — Debt and Credit Agreements of the Combined Notes to Consolidated Financial Statements for additional information on the Registrants’ credit facilities and short term borrowing activity.
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Capital Structure
As of December 31, 2025, the capital structures of the Registrants consisted of the following:

Exelon ComEd PECO BGE PHI Pepco DPL ACE
Long-term debt 62  % 45  % 45  % 48  % 41  % 48  % 48  % 48  %
Long-term debt to affiliates (a)
—  % 1  % 1  % —  % —  % —  % —  % —  %
Common equity 37  % 54  % 54  % 52  % —  % 49  % 49  % 48  %
Member’s equity —  % —  % —  % —  % 56  % —  % —  % —  %
Commercial paper and notes payable 1  % —  % —  % —  % 3  % 3  % 3  % 4  %

__________ 
(a) Includes approximately $390 million, $206 million, and $184 million owed to unconsolidated affiliates of Exelon, ComEd, and PECO respectively. These special purpose entities were created for the sole purposes of issuing mandatory redeemable trust preferred securities of ComEd and PECO.
Security Ratings
The Registrants’ access to the capital markets, including the commercial paper market, and their respective financing costs in those markets, may depend on the securities ratings of the entity that is accessing the capital markets.
The Registrants’ borrowings are not subject to default or prepayment as a result of a downgrading of securities, although such a downgrading of a Registrant’s securities could increase fees and interest charges under that Registrant’s credit agreements.
As part of the normal course of business, the Registrants enter into contracts that contain express provisions or otherwise permit the Registrants and their counterparties to demand adequate assurance of future performance when there are reasonable grounds for doing so. In accordance with the contracts and applicable contracts law, if the Registrants are downgraded by a credit rating agency, it is possible that a counterparty would attempt to rely on such a downgrade as a basis for making a demand for adequate assurance of future performance, which could include the posting of additional collateral. See Note 13 — Derivative Financial Instruments of the Combined Notes to Consolidated Financial Statements for additional information on collateral provisions.
The credit ratings for ComEd, BGE, PHI, Pepco, DPL, and ACE did not change for the year ended December 31, 2025. On January 17, 2025, Fitch Ratings affirmed and withdrew the long-term and short-term issuer default ratings along with individual securities ratings of the Registrants for commercial reasons. On February 7, 2025, S&P raised its long-term issuer credit rating for Exelon and PECO from 'BBB+' to 'A-', and raised its rating on Exelon’s senior unsecured debt from ‘BBB’ to 'BBB+'. S&P also affirmed its short-term issuer and commercial paper rating for Exelon and PECO of 'A-2'.

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Intercompany Money Pool
To provide an additional short-term borrowing option that will generally be more favorable to the borrowing participants than the cost of external financing, both Exelon and PHI operate an intercompany money pool. Maximum amounts contributed to and borrowed from the money pool by participant and the net contribution or borrowing as of December 31, 2025, are presented in the following tables.

For the Year Ended December 31, 2025 As of December 31, 2025
Exelon Intercompany Money Pool Maximum Contributed Maximum Borrowed Contributed (Borrowed)
Exelon Corporate $ 578  $ —  $ 250 
PECO 336  (253) — 
BSC —  (413) (233)
PHI Corporate —  (85) (80)
PCI 63  —  63 

For the Year Ended December 31, 2025 As of December 31, 2025
PHI Intercompany Money Pool Maximum Contributed Maximum Borrowed Contributed (Borrowed)
Pepco $ 20  $ (35) $ — 
DPL 48  (1) — 
ACE —  (46) — 

Shelf Registration Statements
On February 13, 2025, Exelon and ComEd filed a combined shelf registration statement on Form S-3 registering $12.6 billion in aggregate amount of securities, which was declared effective by the SEC on April 8, 2025. The shelf registration statement may be used to issue Exelon debt and equity securities as well as ComEd debt securities through the expiration date of April 8, 2028. On February 21, 2024, PECO and BGE filed with the SEC a standalone automatically effective shelf registration statement, unlimited in amount, which can be used to issue PECO and BGE debt securities through the expiration date of February 20, 2027. The ability of Exelon, ComEd, PECO and BGE to sell securities off their corresponding registration statements will depend on a number of factors at the time of the proposed sale, including other required regulatory approvals, as applicable, the current financial condition of the Registrant, its securities ratings, and market conditions.
Pepco, DPL, and ACE periodically issue securities through the private placement markets. Pepco, DPL, and ACE's ability to access the private placement markets will depend on a number of factors at the time of the proposed sale, including other required regulatory approvals, as applicable, current financial condition, securities ratings, and market conditions.
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Regulatory Authorizations
The Utility Registrants are required to obtain short-term and long-term financing authority from Federal and State Commissions as follows:

At December 31, 2025
Short-term Financing Authority Remaining Long-term Financing Authority
Commission Expiration Date Amount Commission Expiration Date Amount
ComEd (a)(b)
FERC December 31, 2025 $ 2,500  ICC January 1, 2027, May 1, 2027 $ 1,593 
PECO (a)
FERC December 31, 2025 1,500  PAPUC December 31, 2027 1,850 
BGE (a)
FERC December 31, 2025 700  MDPSC N/A 1,850 
Pepco (a)(c)(d)
FERC December 31, 2025 500  MDPSC / DCPSC December 31, 2025 100 
DPL (a)(c)(e)
FERC December 31, 2025 500  MDPSC / DEPSC December 31, 2025 172 
ACE (f)
NJBPU January 1, 2028 350  NJBPU December 31, 2026 625 

__________
(a) On September 8, 2025, ComEd, PECO, BGE, Pepco, and DPL filed applications with the FERC for renewal of their short-term financing authority through December 31, 2027. On November 7, 2025, ComEd, PECO, BGE, Pepco, and DPL received approval for $2.5 billion, $1.5 billion, $900 million, $700 million, and $700 million, respectively, with an effective date of January 1, 2026.
(b) On December 18, 2025, ComEd received approval from the ICC for $2.8 billion in new long-term debt financing authority, with an effective date of January 1, 2026.
(c) The financing authority filed with MDPSC does not have an expiration date, while the financing authority filed with DCPSC and DEPSC have an expiration date of December 31, 2025.
(d) On September 3, 2025 and December 17, 2025, Pepco received approval from the MDPSC and DCPSC, respectively, for $1.1 billion in new long-term financing authority, with an effective date of January 1, 2026.
(e) On September 3, 2025, DPL received approval from the MDSPC and DEPSC, respectively, for $700 million in new long-term financing authority, with an effective date of January 1, 2026.
(f) On November 21, 2025, ACE received approval from the NJBPU to extend their $350 million short-term financing authority through January 1, 2028, with an effective date of November 28, 2025.

ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

The Registrants hold commodity and financial instruments that are exposed to the following market risks:
• Commodity price risk, which is discussed further below.
• Counterparty credit risk associated with non-performance by counterparties on executed derivative instruments and participation in all, or some of the established, wholesale spot energy markets that are administered by PJM. The credit policies of PJM may, under certain circumstances, require that losses arising from the default of one member on spot energy market transactions be shared by the remaining participants. See Note 13 — Derivative Financial Instruments of the Combined Notes to Consolidated Financial Statements for a detailed discussion of counterparty credit risk related to derivative instruments.
• Equity price and interest rate risk associated with Exelon’s pension and OPEB plan trusts. See Note 12 — Retirement Benefits of the Combined Notes to Consolidated Financial Statements for additional information.
• Interest rate risk associated with changes in interest rates for the Registrants’ outstanding long-term debt. This risk is significantly reduced as substantially all of the Registrants’ outstanding debt has fixed interest rates. There is inherent interest rate risk related to refinancing maturing debt by issuing new long-term debt. The Registrants use a combination of hybrid, convertible, fixed-rate and variable-rate debt to manage interest rate exposure. See Note 14 — Debt and Credit Agreements of the Combined Notes to Consolidated Financial Statements for additional information. In addition, Exelon Corporate may utilize interest rate derivatives to lock in rate levels in anticipation of future financings, which are typically designated as cash flow hedges. See Note 13 — Derivative Financial Instruments of the Combined Notes to Consolidated Financial Statements for additional information.
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The Utility Registrants operate primarily under cost-based rate regulation limiting exposure to the effects of market risk. Hedging programs are utilized to reduce exposure to energy and natural gas price volatility and have no direct earnings impacts as the costs are fully recovered through regulatory-approved recovery mechanisms.
Exelon manages these risks through risk management policies and objectives for risk assessment, control and valuation, counterparty credit approval, and the monitoring and reporting of risk exposures. Risk management issues are reported to Exelon’s Board of Directors, Exelon's Audit and Risk Committee, and/or the applicable Utility Board Registrant. The Registrants do not execute derivatives for speculative or proprietary trading purposes.
Commodity Price Risk (All Registrants)
Commodity price risk is associated with price movements resulting from changes in supply and demand, fuel costs, market liquidity, weather conditions, governmental regulatory and environmental policies, and other factors. To the extent the total amount of energy Exelon purchases differs from the amount of energy it has contracted to sell, Exelon is exposed to market fluctuations in commodity prices. Exelon seeks to mitigate its commodity price risk through the sale and purchase of electricity and natural gas.
ComEd entered into 20-year floating-to-fixed renewable energy swap contracts beginning in June 2012, which are considered an economic hedge and have changes in fair value recorded to an offsetting regulatory asset or liability. ComEd has block energy contracts to procure electric supply that are executed through a competitive procurement process, which are considered derivatives and qualify for NPNS, and as a result are accounted for on an accrual basis of accounting. PECO, BGE, Pepco, DPL, and ACE have contracts to procure electric supply that are executed through a competitive procurement process. PECO, BGE, Pepco, DPL, and ACE have certain full requirements contracts, which are considered derivatives and qualify for NPNS, and as a result are accounted for on an accrual basis of accounting. Other full requirements contracts are not derivatives.
PECO, BGE, and DPL also have executed derivative natural gas contracts, which qualify for NPNS, to hedge their long-term price risk in the natural gas market.
For additional information on these contracts, see Note 2 — Regulatory Matters and Note 13 — Derivative Financial Instruments of the Combined Notes to Consolidated Financial Statements.
The following table presents the maturity and source of fair value for Exelon's and ComEd's mark-to-market commodity contract net liabilities. These net liabilities are associated with ComEd's floating-to-fixed energy swap contracts with unaffiliated suppliers. The table provides two fundamental pieces of information. First, the table provides the source of fair value used in determining the carrying amount of Exelon's and ComEd's total mark-to-market liabilities. Second, the table shows the maturity, by year, of Exelon's and ComEd's commodity contract liabilities giving an indication of when these mark-to-market amounts will settle and require cash. See Note 15 — Fair Value of Financial Assets and Liabilities of the Combined Notes to Consolidated Financial Statements for additional information regarding fair value measurements and the fair value hierarchy.

Maturities Within Total Fair
Value
Commodity derivative contracts (a) :
2026 2027 2028 2029 2030 2031 and Beyond
Prices based on model or other valuation methods (Level 3) $ (24) $ (19) $ (20) $ (20) $ (20) $ (28) $ (131)
_________
(a) Represents ComEd's net liabilities associated with the floating-to-fixed energy swap contracts with unaffiliated suppliers.

Credit Risk (All Registrants)
Credit risk for the Utility Registrants is governed by credit and collection policies, which are aligned with state regulatory requirements. The Utility Registrants are currently obligated to provide service to all electric customers within their franchised territories. The Utility Registrants record an allowance for credit losses, based upon historical experience, current information, and forward-looking risk factors, to provide for the potential loss from nonpayment by these customers. The Utility Registrants will monitor nonpayment from customers and will make any necessary adjustments to the allowance for credit losses. See Note 1 — Significant Accounting Policies of
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the Combined Notes to Consolidated Financial Statements for the allowance for credit losses policy. The Utility Registrants did not have any customers representing over 10% of their revenues as of December 31, 2025. See Note 2 — Regulatory Matters of the Combined Notes to Consolidated Financial Statements for additional information.
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ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

Management’s Report on Internal Control Over Financial Reporting

The management of Exelon Corporation (Exelon) is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Exchange Act Rule 13a-15(f). Internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Exelon’s management conducted an assessment of the effectiveness of Exelon’s internal control over financial reporting as of December 31, 2025. In making this assessment, management used the criteria in Internal Control—Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on this assessment, Exelon’s management concluded that, as of December 31, 2025, Exelon’s internal control over financial reporting was effective.
The effectiveness of Exelon’s internal control over financial reporting as of December 31, 2025, has been audited by PricewaterhouseCoopers LLP, an independent registered public accounting firm, as stated in their report which appears herein.
February 12, 2026
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Management’s Report on Internal Control Over Financial Reporting
The management of Commonwealth Edison Company (ComEd) is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Exchange Act Rule 13a-15(f). Internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
ComEd’s management conducted an assessment of the effectiveness of ComEd’s internal control over financial reporting as of December 31, 2025. In making this assessment, management used the criteria in Internal Control—Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on this assessment, ComEd’s management concluded that, as of December 31, 2025, ComEd’s internal control over financial reporting was effective.
February 12, 2026
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Management’s Report on Internal Control Over Financial Reporting
The management of PECO Energy Company (PECO) is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Exchange Act Rule 13a-15(f). Internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
PECO’s management conducted an assessment of the effectiveness of PECO’s internal control over financial reporting as of December 31, 2025. In making this assessment, management used the criteria in Internal Control—Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on this assessment, PECO’s management concluded that, as of December 31, 2025, PECO’s internal control over financial reporting was effective.
February 12, 2026
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Management’s Report on Internal Control Over Financial Reporting
The management of Baltimore Gas and Electric Company (BGE) is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Exchange Act Rule 13a-15(f). Internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
BGE’s management conducted an assessment of the effectiveness of BGE’s internal control over financial reporting as of December 31, 2025. In making this assessment, management used the criteria in Internal Control—Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on this assessment, BGE’s management concluded that, as of December 31, 2025, BGE’s internal control over financial reporting was effective.
February 12, 2026
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Management’s Report on Internal Control Over Financial Reporting
 
The management of Pepco Holdings LLC (PHI) is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Exchange Act Rule 13a-15(f). Internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles.
 
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
 
PHI’s management conducted an assessment of the effectiveness of PHI’s internal control over financial reporting as of December 31, 2025. In making this assessment, management used the criteria in Internal Control—Integrated Framework (2013)  issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on this assessment, PHI’s management concluded that, as of December 31, 2025, PHI’s internal control over financial reporting was effective.
 
February 12, 2026

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Management’s Report on Internal Control Over Financial Reporting
The management of Potomac Electric Power Company (Pepco) is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Exchange Act Rule 13a-15(f). Internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Pepco’s management conducted an assessment of the effectiveness of Pepco’s internal control over financial reporting as of December 31, 2025. In making this assessment, management used the criteria in Internal Control—Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on this assessment, Pepco’s management concluded that, as of December 31, 2025, Pepco’s internal control over financial reporting was effective.
February 12, 2026

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Management’s Report on Internal Control Over Financial Reporting
The management of Delmarva Power & Light Company (DPL) is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Exchange Act Rule 13a-15(f). Internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
DPL’s management conducted an assessment of the effectiveness of DPL’s internal control over financial reporting as of December 31, 2025. In making this assessment, management used the criteria in Internal Control—Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on this assessment, DPL’s management concluded that, as of December 31, 2025, DPL’s internal control over financial reporting was effective.
February 12, 2026

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Management’s Report on Internal Control Over Financial Reporting
The management of Atlantic City Electric Company (ACE) is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Exchange Act Rule 13a-15(f). Internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
ACE’s management conducted an assessment of the effectiveness of ACE’s internal control over financial reporting as of December 31, 2025. In making this assessment, management used the criteria in Internal Control—Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on this assessment, ACE’s management concluded that, as of December 31, 2025, ACE’s internal control over financial reporting was effective.
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Report of Independent Registered Public Accounting Firm

To the Board of Directors and Shareholders of Exelon Corporation
Opinions on the Financial Statements and Internal Control over Financial Reporting
We have audited the consolidated financial statements, including the related notes, as listed in the index appearing under Item 15(a)(1)(i), and the financial statement schedules listed in the index appearing under Item 15(a)(1)(ii), of Exelon Corporation and its subsidiaries (the "Company") (collectively referred to as the "consolidated financial statements"). We also have audited the Company's internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025 in conformity with accounting principles generally accepted in the United States of America. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control - Integrated Framework (2013) issued by the COSO.
Basis for Opinions
The Company's management is responsible for these consolidated financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in Management’s Report on Internal Control over Financial Reporting appearing under Item 8. Our responsibility is to express opinions on the Company’s consolidated financial statements and on the Company's internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects.
Our audits of the consolidated financial statements included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.
Definition and Limitations of Internal Control over Financial Reporting
A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.
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Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Critical Audit Matters
The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that (i) relates to accounts or disclosures that are material to the consolidated financial statements and (ii) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.
Accounting for the Effects of Rate Regulation
As described in Notes 1 and 2 to the consolidated financial statements, the Company applies the authoritative guidance for accounting for certain types of regulation, which requires management to record in the consolidated financial statements the effects of cost-based rate regulation for entities with regulated operations that meet the following criteria, (i) rates are established or approved by a third-party regulator; (ii) rates are designed to recover the entity’s cost of providing services or products; and (iii) there is a reasonable expectation that rates designed to recover costs can be charged to and collected from customers. The Company accounts for its regulated operations in accordance with regulatory and legislative guidance from the regulatory authorities having jurisdiction under state public utility laws and the FERC under various Federal laws. Upon updates in material regulatory and legislative proceedings, where applicable, management will record new regulatory assets or liabilities and will assess whether it is probable that its currently recorded regulatory assets and liabilities will be recovered and settled, respectively, in future rates. As of December 31, 2025, there were $10.57 billion of regulatory assets and $12.14 billion of regulatory liabilities.
The principal considerations for our determination that performing procedures relating to the Company’s accounting for the effects of rate regulation is a critical audit matter are the high degree of audit effort to assess the impact of regulation on accounting for regulatory assets and liabilities and to evaluate the complex audit evidence related to whether the regulatory assets and liabilities will be recovered and settled.
Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to accounting for regulatory matters and evaluation of new and existing regulatory assets and liabilities. These procedures also included, among others, obtaining the Company’s correspondence with regulators, evaluating the reasonableness of management’s interpretation of regulatory guidance and proceedings and the related accounting implications, and recalculating regulatory assets and liabilities based on provisions outlined in rate orders and other correspondence with regulators.

/s/ PricewaterhouseCoopers LLP
Chicago, Illinois
February 12, 2026
We have served as the Company’s auditor since 2000.

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Report of Independent Registered Public Accounting Firm
To the Board of Directors and Shareholders of Commonwealth Edison Company
Opinion on the Financial Statements
We have audited the consolidated financial statements, including the related notes, as listed in the index appearing under Item 15(a)(2)(i), and the financial statement schedule listed in the index appearing under Item 15(a)(2)(ii), of Commonwealth Edison Company and its subsidiaries (the "Company") (collectively referred to as the "consolidated financial statements"). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s consolidated financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these consolidated financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion.
Critical Audit Matters
The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that (i) relates to accounts or disclosures that are material to the consolidated financial statements and (ii) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.
Accounting for the Effects of Rate Regulation
As described in Notes 1 and 2 to the consolidated financial statements, the Company applies the authoritative guidance for accounting for certain types of regulation, which requires management to record in the consolidated financial statements the effects of cost-based rate regulation for entities with regulated operations that meet the following criteria, (i) rates are established or approved by a third-party regulator; (ii) rates are designed to recover the entity’s cost of providing services or products; and (iii) there is a reasonable expectation that rates designed to recover costs can be charged to and collected from customers. The Company accounts for its regulated operations in accordance with regulatory and legislative guidance from the regulatory authorities having jurisdiction under state public utility laws and the FERC under various Federal laws. Upon updates in material regulatory and legislative proceedings, where applicable, management will record new regulatory assets or liabilities and will assess whether it is probable that its currently recorded regulatory assets and liabilities will be
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recovered and settled, respectively, in future rates. As of December 31, 2025, there were $3.28 billion of regulatory assets and $10.01 billion of regulatory liabilities.
The principal considerations for our determination that performing procedures relating to the Company’s accounting for the effects of rate regulation is a critical audit matter are the high degree of audit effort to assess the impact of regulation on accounting for regulatory assets and liabilities and to evaluate the complex audit evidence related to whether the regulatory assets and liabilities will be recovered and settled.
Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to accounting for regulatory matters and evaluation of new and existing regulatory assets and liabilities. These procedures also included, among others, obtaining the Company’s correspondence with regulators, evaluating the reasonableness of management’s interpretation of regulatory guidance and proceedings and the related accounting implications, and recalculating regulatory assets and liabilities based on provisions outlined in rate orders and other correspondence with regulators.

/s/ PricewaterhouseCoopers LLP
Chicago, Illinois
February 12, 2026

We have served as the Company's auditor since 2000.

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Report of Independent Registered Public Accounting Firm
To the Board of Directors and Shareholders of PECO Energy Company
Opinion on the Financial Statements
We have audited the consolidated financial statements, including the related notes, as listed in the index appearing under Item 15(a)(3)(i), and the financial statement schedule listed in the index appearing under Item 15(a)(3)(ii), of PECO Energy Company and its subsidiaries (the "Company") (collectively referred to as the "consolidated financial statements"). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s consolidated financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these consolidated financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion.
Critical Audit Matters
The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that (i) relates to accounts or disclosures that are material to the consolidated financial statements and (ii) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.
Accounting for the Effects of Rate Regulation
As described in Notes 1 and 2 to the consolidated financial statements, the Company applies the authoritative guidance for accounting for certain types of regulation, which requires management to record in the consolidated financial statements the effects of cost-based rate regulation for entities with regulated operations that meet the following criteria, (i) rates are established or approved by a third-party regulator; (ii) rates are designed to recover the entity’s cost of providing services or products; and (iii) there is a reasonable expectation that rates designed to recover costs can be charged to and collected from customers. The Company accounts for its regulated operations in accordance with regulatory and legislative guidance from the regulatory authorities having jurisdiction under state public utility laws and the FERC under various Federal laws. Upon updates in material regulatory and legislative proceedings, where applicable, management will record new regulatory assets or liabilities and will assess whether it is probable that its currently recorded regulatory assets and liabilities will be
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recovered and settled, respectively, in future rates. As of December 31, 2025, there were $1.35 billion of regulatory assets and $589 million of regulatory liabilities.
The principal considerations for our determination that performing procedures relating to the Company’s accounting for the effects of rate regulation is a critical audit matter are the high degree of audit effort to assess the impact of regulation on accounting for regulatory assets and liabilities and to evaluate the complex audit evidence related to whether the regulatory assets and liabilities will be recovered and settled.
Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to accounting for regulatory matters and evaluation of new and existing regulatory assets and liabilities. These procedures also included, among others, obtaining the Company’s correspondence with regulators, evaluating the reasonableness of management’s interpretation of regulatory guidance and proceedings and the related accounting implications, and recalculating regulatory assets and liabilities based on provisions outlined in rate orders and other correspondence with regulators.

/s/ PricewaterhouseCoopers LLP
Philadelphia, Pennsylvania
February 12, 2026

We have served as the Company's auditor since 1932.

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Report of Independent Registered Public Accounting Firm
To the Board of Directors and Shareholder of Baltimore Gas and Electric Company
Opinion on the Financial Statements
We have audited the financial statements, including the related notes, as listed in the index appearing under Item 15(a)(4)(i), and the financial statement schedule listed in the index appearing under Item 15(a)(4)(ii), of Baltimore Gas and Electric Company (the "Company") (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
Critical Audit Matters
The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that (i) relates to accounts or disclosures that are material to the financial statements and (ii) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.
Accounting for the Effects of Rate Regulation
As described in Notes 1 and 2 to the financial statements, the Company applies the authoritative guidance for accounting for certain types of regulation, which requires management to record in the financial statements the effects of cost-based rate regulation for entities with regulated operations that meet the following criteria, (i) rates are established or approved by a third-party regulator; (ii) rates are designed to recover the entity’s cost of providing services or products; and (iii) there is a reasonable expectation that rates designed to recover costs can be charged to and collected from customers. The Company accounts for its regulated operations in accordance with regulatory and legislative guidance from the regulatory authorities having jurisdiction under state public utility laws and the FERC under various Federal laws. Upon updates in material regulatory and legislative proceedings, where applicable, management will record new regulatory assets or liabilities and will assess whether it is probable that its currently recorded regulatory assets and liabilities will be recovered and settled,
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respectively, in future rates. As of December 31, 2025, there were $979 million of regulatory assets and $626 million of regulatory liabilities.
The principal considerations for our determination that performing procedures relating to the Company’s accounting for the effects of rate regulation is a critical audit matter are the high degree of audit effort to assess the impact of regulation on accounting for regulatory assets and liabilities and to evaluate the complex audit evidence related to whether the regulatory assets and liabilities will be recovered and settled.
Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the financial statements. These procedures included testing the effectiveness of controls relating to accounting for regulatory matters and evaluation of new and existing regulatory assets and liabilities. These procedures also included, among others, obtaining the Company’s correspondence with regulators, evaluating the reasonableness of management’s interpretation of regulatory guidance and proceedings and the related accounting implications, and recalculating regulatory assets and liabilities based on provisions outlined in rate orders and other correspondence with regulators.

/s/ PricewaterhouseCoopers LLP
Baltimore, Maryland
February 12, 2026
We have served as the Company’s auditor since at least 1993. We have not been able to determine the specific year we began serving as auditor of the Company.

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Report of Independent Registered Public Accounting Firm
To the Board of Directors and Member of Pepco Holdings LLC
Opinion on the Financial Statements
We have audited the consolidated financial statements, including the related notes, as listed in the index appearing under Item 15(a)(5)(i), and the financial statement schedule listed in the index appearing under Item 15(a)(5)(ii), of Pepco Holdings LLC and its subsidiaries (the "Company") (collectively referred to as the "consolidated financial statements"). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s consolidated financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these consolidated financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion.
Critical Audit Matters
The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that (i) relates to accounts or disclosures that are material to the consolidated financial statements and (ii) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.
Accounting for the Effects of Rate Regulation
As described in Notes 1 and 2 to the consolidated financial statements, the Company applies the authoritative guidance for accounting for certain types of regulation, which requires management to record in the consolidated financial statements the effects of cost-based rate regulation for entities with regulated operations that meet the following criteria, (i) rates are established or approved by a third-party regulator; (ii) rates are designed to recover the entity’s cost of providing services or products; and (iii) there is a reasonable expectation that rates designed to recover costs can be charged to and collected from customers. The Company accounts for its regulated operations in accordance with regulatory and legislative guidance from the regulatory authorities having jurisdiction under state public utility laws and the FERC under various Federal laws. Upon updates in material regulatory and legislative proceedings, where applicable, management will record new regulatory assets or liabilities and will assess whether it is probable that its currently recorded regulatory assets and liabilities will be
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recovered and settled, respectively, in future rates. As of December 31, 2025, there were $1.91 billion of regulatory assets and $825 million of regulatory liabilities.
The principal considerations for our determination that performing procedures relating to the Company’s accounting for the effects of rate regulation is a critical audit matter are the high degree of audit effort to assess the impact of regulation on accounting for regulatory assets and liabilities and to evaluate the complex audit evidence related to whether the regulatory assets and liabilities will be recovered and settled.
Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to accounting for regulatory matters and evaluation of new and existing regulatory assets and liabilities. These procedures also included, among others, obtaining the Company’s correspondence with regulators, evaluating the reasonableness of management’s interpretation of regulatory guidance and proceedings and the related accounting implications, and recalculating regulatory assets and liabilities based on provisions outlined in rate orders and other correspondence with regulators.

/s/ PricewaterhouseCoopers LLP
Philadelphia, Pennsylvania
February 12, 2026

We have served as the Company's auditor since 2001.

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Report of Independent Registered Public Accounting Firm
To the Board of Directors and Shareholder of Potomac Electric Power Company
Opinion on the Financial Statements
We have audited the financial statements, including the related notes, as listed in the index appearing under Item 15(a)(6)(i), and the financial statement schedule listed in the index appearing under Item 15(a)(6)(ii), of Potomac Electric Power Company (the "Company") (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
Critical Audit Matters
The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that (i) relates to accounts or disclosures that are material to the financial statements and (ii) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.
Accounting for the Effects of Rate Regulation
As described in Notes 1 and 2 to the financial statements, the Company applies the authoritative guidance for accounting for certain types of regulation, which requires management to record in the financial statements the effects of cost-based rate regulation for entities with regulated operations that meet the following criteria, (i) rates are established or approved by a third-party regulator; (ii) rates are designed to recover the entity’s cost of providing services or products; and (iii) there is a reasonable expectation that rates designed to recover costs can be charged to and collected from customers. The Company accounts for its regulated operations in accordance with regulatory and legislative guidance from the regulatory authorities having jurisdiction under state public utility laws and the FERC under various Federal laws. Upon updates in material regulatory and legislative proceedings, where applicable, management will record new regulatory assets or liabilities and will assess whether it is probable that its currently recorded regulatory assets and liabilities will be recovered and settled,
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respectively, in future rates. As of December 31, 2025, there were $587 million of regulatory assets and $281 million of regulatory liabilities.
The principal considerations for our determination that performing procedures relating to the Company’s accounting for the effects of rate regulation is a critical audit matter are the high degree of audit effort to assess the impact of regulation on accounting for regulatory assets and liabilities and to evaluate the complex audit evidence related to whether the regulatory assets and liabilities will be recovered and settled.
Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the financial statements. These procedures included testing the effectiveness of controls relating to accounting for regulatory matters and evaluation of new and existing regulatory assets and liabilities. These procedures also included, among others, obtaining the Company’s correspondence with regulators, evaluating the reasonableness of management’s interpretation of regulatory guidance and proceedings and the related accounting implications, and recalculating regulatory assets and liabilities based on provisions outlined in rate orders and other correspondence with regulators.

/s/ PricewaterhouseCoopers LLP
Philadelphia, Pennsylvania
February 12, 2026

We have served as the Company's auditor since at least 1993. We have not been able to determine the specific year we began serving as auditor of the Company.

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Report of Independent Registered Public Accounting Firm
To the Board of Directors and Shareholder of Delmarva Power & Light Company
Opinion on the Financial Statements
We have audited the financial statements, including the related notes, as listed in the index appearing under Item 15(a)(7)(i), and the financial statement schedule listed in the index appearing under Item 15(a)(7)(ii), of Delmarva Power & Light Company (the "Company") (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
Critical Audit Matters
The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that (i) relates to accounts or disclosures that are material to the financial statements and (ii) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.
Accounting for the Effects of Rate Regulation
As described in Notes 1 and 2 to the financial statements, the Company applies the authoritative guidance for accounting for certain types of regulation, which requires management to record in the financial statements the effects of cost-based rate regulation for entities with regulated operations that meet the following criteria, (i) rates are established or approved by a third-party regulator; (ii) rates are designed to recover the entity’s cost of providing services or products; and (iii) there is a reasonable expectation that rates designed to recover costs can be charged to and collected from customers. The Company accounts for its regulated operations in accordance with regulatory and legislative guidance from the regulatory authorities having jurisdiction under state public utility laws and the FERC under various Federal laws. Upon updates in material regulatory and legislative proceedings, where applicable, management will record new regulatory assets or liabilities and will assess whether it is probable that its currently recorded regulatory assets and liabilities will be recovered and settled,
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respectively, in future rates. As of December 31, 2025, there were $286 million of regulatory assets and $358 million of regulatory liabilities.
The principal considerations for our determination that performing procedures relating to the Company’s accounting for the effects of rate regulation is a critical audit matter are the high degree of audit effort to assess the impact of regulation on accounting for regulatory assets and liabilities and to evaluate the complex audit evidence related to whether the regulatory assets and liabilities will be recovered and settled.
Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the financial statements. These procedures included testing the effectiveness of controls relating to accounting for regulatory matters and evaluation of new and existing regulatory assets and liabilities. These procedures also included, among others, obtaining the Company’s correspondence with regulators, evaluating the reasonableness of management’s interpretation of regulatory guidance and proceedings and the related accounting implications, and recalculating regulatory assets and liabilities based on provisions outlined in rate orders and other correspondence with regulators.

/s/ PricewaterhouseCoopers LLP
Philadelphia, Pennsylvania
February 12, 2026

We have served as the Company's auditor since at least 1993. We have not been able to determine the specific year we began serving as auditor of the Company.

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Report of Independent Registered Public Accounting Firm
To the Board of Directors and Shareholder of Atlantic City Electric Company
Opinion on the Financial Statements
We have audited the consolidated financial statements, including the related notes, as listed in the index appearing under Item 15(a)(8)(i), and the financial statement schedule listed in the index appearing under Item 15(a)(8)(ii), of Atlantic City Electric Company and its subsidiary (the "Company") (collectively referred to as the "consolidated financial statements"). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s consolidated financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these consolidated financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion.
Critical Audit Matters
The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that (i) relates to accounts or disclosures that are material to the consolidated financial statements and (ii) involved our especially challenging, subjective, or complex judgments.
The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.
Accounting for the Effects of Rate Regulation
As described in Notes 1 and 2 to the consolidated financial statements, the Company applies the authoritative guidance for accounting for certain types of regulation, which requires management to record in the consolidated financial statements the effects of cost-based rate regulation for entities with regulated operations that meet the following criteria, (i) rates are established or approved by a third-party regulator; (ii) rates are designed to recover the entity’s cost of providing services or products; and (iii) there is a reasonable expectation that rates designed to recover costs can be charged to and collected from customers. The Company accounts for its regulated operations in accordance with regulatory and legislative guidance from the regulatory authorities having jurisdiction under state public utility laws and the FERC under various Federal laws. Upon updates in material regulatory and legislative proceedings, where applicable, management will record new regulatory assets or liabilities and will assess whether it is probable that its currently recorded regulatory assets and liabilities will be
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recovered and settled, respectively, in future rates. As of December 31, 2025, there were $652 million of regulatory assets and $185 million of regulatory liabilities.
The principal considerations for our determination that performing procedures relating to the Company’s accounting for the effects of rate regulation is a critical audit matter are the high degree of audit effort to assess the impact of regulation on accounting for regulatory assets and liabilities and to evaluate the complex audit evidence related to whether the regulatory assets and liabilities will be recovered and settled.
Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to accounting for regulatory matters and evaluation of new and existing regulatory assets and liabilities. These procedures also included, among others, obtaining the Company’s correspondence with regulators, evaluating the reasonableness of management’s interpretation of regulatory guidance and proceedings and the related accounting implications, and recalculating regulatory assets and liabilities based on provisions outlined in rate orders and other correspondence with regulators.

/s/ PricewaterhouseCoopers LLP
Philadelphia, Pennsylvania
February 12, 2026

We have served as the Company's auditor since 1998.

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Exelon Corporation and Subsidiary Companies
Consolidated Statements of Operations and Comprehensive Income

For the Years Ended December 31,
(In millions, except per share data) 2025 2024 2023
Operating revenues
Electric operating revenues $ 22,655   $ 21,338   $ 19,267  
Natural gas operating revenues 2,349   1,782   1,764  
Revenues from alternative revenue programs ( 746 ) ( 92 ) 696  

Total operating revenues 24,258   23,028   21,727  
Operating expenses
Purchased power 7,944   8,214   7,648  
Purchased fuel 723   469   593  

Operating and maintenance 5,177   4,940   4,559  
Depreciation and amortization 3,640   3,594   3,506  
Taxes other than income taxes 1,629   1,504   1,408  
Total operating expenses 19,113   18,721   17,714  

Gain on sale of assets 3   12   10  

Operating income 5,148   4,319   4,023  
Other income and (deductions)
Interest expense, net ( 2,102 ) ( 1,889 ) ( 1,704 )
Interest expense to affiliates ( 25 ) ( 25 ) ( 25 )
Other, net 270   262   408  
Total other income and (deductions) ( 1,857 ) ( 1,652 ) ( 1,321 )
Income before income taxes 3,291   2,667   2,702  
Income taxes 523   207   374  

Net income attributable to common shareholders $ 2,768   $ 2,460   $ 2,328  

Comprehensive income, net of income taxes
Net income $ 2,768   $ 2,460   $ 2,328  
Other comprehensive (loss) income, net of income taxes
Pension and non-pension postretirement benefit plans:

Actuarial losses reclassified to periodic benefit cost 22   28   26  

Pension and non-pension postretirement benefit plans valuation adjustments ( 52 ) ( 70 ) ( 109 )
Unrealized (loss) gain on cash flow hedges ( 12 ) 48   ( 5 )

Other comprehensive (loss) income ( 42 ) 6   ( 88 )

Comprehensive income attributable to common shareholders $ 2,726   $ 2,466   $ 2,240  

Average shares of common stock outstanding:
Basic 1,011   1,003   996  
Assumed exercise and/or distributions of stock-based awards (a)
1   —   1  
Diluted 1,012   1,003   997  

Earnings per average common share
Basic $ 2.74   $ 2.45   $ 2.34  
Diluted $ 2.73   $ 2.45   $ 2.34  

__________
(a) The dilutive effects of stock-based compensation awards are calculated using the treasury stock method for all periods presented.
See the Combined Notes to Consolidated Financial Statements

116

Table of Contents

Exelon Corporation and Subsidiary Companies
Consolidated Statements of Cash Flows
For the Years Ended December 31,
(In millions) 2025 2024 2023
Cash flows from operating activities
Net income $ 2,768   $ 2,460   $ 2,328  
Adjustments to reconcile net income to net cash flows provided by operating activities:
Depreciation, amortization, and accretion 3,643   3,596   3,506  

Gain on sales of assets ( 3 ) ( 12 ) ( 10 )

Deferred income taxes and amortization of investment tax credits 391   128   319  
Net fair value changes related to derivatives —   —   22  

Other non-cash operating activities 1,331   592   ( 335 )
Changes in assets and liabilities:
Accounts receivable ( 1,691 ) ( 644 ) ( 37 )
Inventories ( 22 ) ( 56 ) ( 45 )
Accounts payable and accrued expenses 260   ( 37 ) ( 191 )

Collateral (paid) received, net ( 10 ) 33   ( 146 )
Income taxes 121   ( 4 ) 48  
Regulatory assets and liabilities, net 156   ( 50 ) ( 439 )
Pension and non-pension postretirement benefit contributions ( 342 ) ( 180 ) ( 129 )
Other assets and liabilities ( 348 ) ( 257 ) ( 188 )
Net cash flows provided by operating activities 6,254   5,569   4,703  
Cash flows from investing activities
Capital expenditures ( 8,529 ) ( 7,097 ) ( 7,408 )

Proceeds from sales of assets 4   38   25  

Other investing activities —   17   8  
Net cash flows used in investing activities ( 8,525 ) ( 7,042 ) ( 7,375 )
Cash flows from financing activities

Changes in short-term borrowings ( 747 ) ( 265 ) ( 313 )
Proceeds from short-term borrowings with maturities greater than 90 days —   150   400  
Repayments on short-term borrowings with maturities greater than 90 days ( 500 ) ( 549 ) ( 150 )
Issuance of long-term debt 6,075   4,974   5,825  
Retirement of long-term debt ( 1,311 ) ( 1,557 ) ( 1,713 )

Issuance of common stock 691   148   140  

Dividends paid on common stock ( 1,617 ) ( 1,524 ) ( 1,433 )
Proceeds from employee stock plans 36   43   41  

Other financing activities ( 94 ) ( 109 ) ( 114 )
Net cash flows provided by financing activities 2,533   1,311   2,683  
Increase (decrease) in cash, restricted cash, and cash equivalents 262   ( 162 ) 11  
Cash, restricted cash, and cash equivalents at beginning of period 939   1,101   1,090  
Cash, restricted cash, and cash equivalents at end of period $ 1,201   $ 939   $ 1,101  

Supplemental cash flow information
Increase (decrease) in capital expenditures not paid $ 553   $ 301   $ ( 215 )

Increase (decrease) in PP&E related to ARO update 13   16   ( 13 )

See the Combined Notes to Consolidated Financial Statements

117

Table of Contents

Exelon Corporation and Subsidiary Companies
Consolidated Balance Sheets
December 31,
(In millions) 2025 2024
ASSETS
Current assets
Cash and cash equivalents $ 626   $ 357  
Restricted cash and cash equivalents 525   541  
Accounts receivable
Customer accounts receivable 3,732 3,144
Customer allowance for credit losses ( 435 ) ( 406 )
Customer accounts receivable, net 3,297   2,738  
Other accounts receivable 1,879 1,123
Other allowance for credit losses ( 94 ) ( 107 )
Other accounts receivable, net 1,785   1,016  

Inventories, net
Fossil fuel 88   72  
Materials and supplies 780   781  
Regulatory assets 1,359   1,940  
Prepaid renewable energy credits 563   494  

Other 523   445  

Total current assets 9,546   8,384  
Property, plant, and equipment (net of accumulated depreciation and amortization of $ 20,080 and $ 18,445 as of December 31, 2025 and 2024, respectively)
84,318   78,182  
Deferred debits and other assets
Regulatory assets 9,214   8,710  
Goodwill 6,630   6,630  
Receivable related to Regulatory Agreement Units 4,755   4,026  
Investments 312   290  

Other 1,795   1,562  

Total deferred debits and other assets 22,706   21,218  
Total assets $ 116,570   $ 107,784  

See the Combined Notes to Consolidated Financial Statements

118

Table of Contents

Exelon Corporation and Subsidiary Companies
Consolidated Balance Sheets

December 31,
(In millions) 2025 2024
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Short-term borrowings $ 612   $ 1,859  
Long-term debt due within one year 1,665   1,453  
Accounts payable 3,721   2,994  
Accrued expenses 1,582   1,468  
Payables to affiliates 5   5  
Customer deposits 533   446  
Regulatory liabilities 1,128   411  
Mark-to-market derivative liabilities 30   29  
Unamortized energy contract liabilities 5   5  
Renewable energy credit obligations 473   429  

Other 577   512  

Total current liabilities 10,331   9,611  
Long-term debt 47,413   42,947  
Long-term debt to financing trusts 390   390  
Deferred credits and other liabilities
Deferred income taxes and unamortized investment tax credits 13,715   12,793  
Regulatory liabilities 11,016   10,198  
Pension obligations 1,749   1,745  
Non-pension postretirement benefit obligations 546   472  
Asset retirement obligations 321   301  
Mark-to-market derivative liabilities 106   103  
Unamortized energy contract liabilities 16   21  
Other 2,169   2,282  

Total deferred credits and other liabilities 29,638   27,915  
Total liabilities 87,772   80,863  
Commitments and contingencies
Shareholders’ equity
Common stock ( No par value, 2,000 shares authorized, 1,023 shares and 1,005 shares outstanding as of December 31, 2025 and 2024, respectively)
22,106   21,338  
Treasury stock, at cost ( 2 shares as of December 31, 2025 and 2024)
( 123 ) ( 123 )
Retained earnings 7,577   6,426  
Accumulated other comprehensive loss, net ( 762 ) ( 720 )
Total shareholders’ equity 28,798   26,921  

Total liabilities and shareholders' equity $ 116,570   $ 107,784  

See the Combined Notes to Consolidated Financial Statements

119

Table of Contents

Exelon Corporation and Subsidiary Companies
Consolidated Statements of Changes in Equity

(In millions, shares in thousands) Issued
Shares Common
Stock Treasury
Stock Retained
Earnings Accumulated
Other
Comprehensive
Loss, net Total Equity
Balance at December 31, 2022 995,830   $ 20,908   $ ( 123 ) $ 4,597   $ ( 638 ) $ 24,744  
Net income —  —  —  2,328   —  2,328  
Long-term incentive plan activity 659   19   —  —  —  19  
Employee stock purchase plan activity 1,173   47   —  —  —  47  

Issuance of common stock 3,587   140   —  —  —  140  
Common stock dividends
($ 1.44 /common share)
—  —  —  ( 1,435 ) —  ( 1,435 )

Other comprehensive loss, net of income taxes —  —  —  —  ( 88 ) ( 88 )
Balance at December 31, 2023 1,001,249   $ 21,114   $ ( 123 ) $ 5,490   $ ( 726 ) $ 25,755  
Net income —  —  —  2,460   —  2,460  
Long-term incentive plan activity 464   26   —  —  —  26  
Employee stock purchase plan activity 1,344   50   —  —  —  50  

Issuance of common stock 3,989   148   —  —  —  148  
Common stock dividends
($ 1.52 /common share)
—  —  —  ( 1,524 ) —  ( 1,524 )

Other comprehensive income, net of income taxes —  —  —  —  6   6  
Balance at December 31, 2024 1,007,046   $ 21,338   $ ( 123 ) $ 6,426   $ ( 720 ) $ 26,921  
Net income —  —  —  2,768   —  2,768  
Long-term incentive plan activity 323   34   —  —  —  34  
Employee stock purchase plan activity 931   43   —  —  —  43  

Issuance of common stock 16,101   691   —  —  —  691  
Common stock dividends
($ 1.60 /common share)
—  —  —  ( 1,617 ) —  ( 1,617 )
Other comprehensive loss, net of income taxes —  —  —  —  ( 42 ) ( 42 )
Balance at December 31, 2025 1,024,401   $ 22,106   $ ( 123 ) $ 7,577   $ ( 762 ) $ 28,798  

See the Combined Notes to Consolidated Financial Statements

120

Table of Contents

Commonwealth Edison Company and Subsidiary Companies
Consolidated Statements of Operations and Comprehensive Income

For the Years Ended December 31,
(In millions) 2025 2024 2023
Operating revenues
Electric operating revenues $ 7,842   $ 8,362   $ 7,272  
Revenues from alternative revenue programs ( 596 ) ( 151 ) 556  
Operating revenues from affiliates 21   8   16  
Total operating revenues 7,267   8,219   7,844  
Operating expenses
Purchased power 1,782   3,042   2,816  

Operating and maintenance 1,306   1,284   1,096  
Operating and maintenance from affiliates 404   419   354  
Depreciation and amortization 1,560   1,514   1,403  
Taxes other than income taxes 409   376   369  
Total operating expenses 5,461   6,635   6,038  
Gain on sale of assets —   5   —  
Operating income 1,806   1,589   1,806  
Other income and (deductions)
Interest expense, net ( 517 ) ( 487 ) ( 464 )
Interest expense to affiliates, net ( 13 ) ( 14 ) ( 13 )
Other, net 132   94   75  
Total other income and (deductions) ( 398 ) ( 407 ) ( 402 )
Income before income taxes 1,408   1,182   1,404  
Income taxes 261   116   314  
Net income $ 1,147   $ 1,066   $ 1,090  

Comprehensive income $ 1,147   $ 1,066   $ 1,090  

See the Combined Notes to Consolidated Financial Statements

121

Table of Contents

Commonwealth Edison Company and Subsidiary Companies
Consolidated Statements of Cash Flows

For the Years Ended December 31,
(In millions) 2025 2024 2023
Cash flows from operating activities
Net income $ 1,147   $ 1,066   $ 1,090  
Adjustments to reconcile net income to net cash flows provided by operating activities:
Depreciation and amortization 1,560   1,514   1,403  
Gain on sales of assets —   ( 5 ) —  

Deferred income taxes and amortization of investment tax credits 39   ( 19 ) 196  

Other non-cash operating activities 740   232   ( 536 )
Changes in assets and liabilities:
Accounts receivable ( 1,026 ) ( 185 ) ( 138 )
Receivables from and payables to affiliates, net 3   4   ( 2 )
Inventories 17   ( 15 ) ( 82 )
Accounts payable and accrued expenses 77   ( 115 ) ( 87 )
Collateral (paid) received, net ( 36 ) 30   69  
Income taxes ( 1 ) ( 114 ) 106  
Regulatory assets and liabilities, net 506   246   ( 60 )
Pension and non-pension postretirement benefit contributions ( 209 ) ( 25 ) ( 41 )
Other assets and liabilities ( 152 ) 99   ( 70 )
Net cash flows provided by operating activities 2,665   2,713   1,848  
Cash flows from investing activities
Capital expenditures ( 2,899 ) ( 2,195 ) ( 2,576 )

Other investing activities 6   7   8  
Net cash flows used in investing activities ( 2,893 ) ( 2,188 ) ( 2,568 )
Cash flows from financing activities
Changes in short-term borrowings ( 36 ) ( 166 ) ( 225 )
Proceeds from short-term borrowings with maturities greater than 90 days —   —   400  
Repayments on short-term borrowings with maturities greater than 90 days —   ( 400 ) ( 150 )
Issuance of long-term debt 725   800   975  
Retirement of long-term debt —   ( 250 ) —  
Dividends paid on common stock ( 813 ) ( 776 ) ( 746 )
Contributions from parent 391   227   655  
Other financing activities ( 8 ) ( 14 ) ( 14 )
Net cash flows provided by (used in) financing activities 259   ( 579 ) 895  
Increase (decrease) in cash, restricted cash, and cash equivalents 31   ( 54 ) 175  
Cash, restricted cash, and cash equivalents at beginning of period 632   686   511  
Cash, restricted cash, and cash equivalents at end of period $ 663   $ 632   $ 686  

Supplemental cash flow information
Increase (decrease) in capital expenditures not paid $ 233   $ ( 17 ) $ ( 10 )

See the Combined Notes to Consolidated Financial Statements

122

Table of Contents

Commonwealth Edison Company and Subsidiary Companies
Consolidated Balance Sheets

December 31,
(In millions) 2025 2024
ASSETS
Current assets
Cash and cash equivalents $ 159   $ 105  
Restricted cash and cash equivalents 454   486  
Accounts receivable
Customer accounts receivable 1,058 994
Customer allowance for credit losses ( 115 ) ( 109 )
Customer accounts receivable, net 943   885  
Other accounts receivable 1,155 290
Other allowance for credit losses ( 23 ) ( 34 )
Other accounts receivable, net 1,132   256  
Receivables from affiliates 5   4  
Inventories, net 268   292  

Regulatory assets 595   1,159  
Other 217   141  
Total current assets 3,773   3,328  
Property, plant, and equipment (net of accumulated depreciation and amortization of $ 8,291 and $ 7,619 as of December 31, 2025 and 2024, respectively)
32,255   30,211  
Deferred debits and other assets
Regulatory assets 2,687   2,562  
Goodwill 2,625   2,625  

Receivable related to Regulatory Agreement Units 4,313   3,780  
Investments 6   6  
Prepaid pension asset 1,284   1,165  
Other 1,342   1,073  
Total deferred debits and other assets 12,257   11,211  
Total assets $ 48,285   $ 44,750  

See the Combined Notes to Consolidated Financial Statements

123

Table of Contents

Commonwealth Edison Company and Subsidiary Companies
Consolidated Balance Sheets

December 31,
(In millions) 2025 2024
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Short-term borrowings $ —   $ 36  
Long-term debt due within one year 500   —  
Accounts payable 1,033   748  
Accrued expenses 474   463  
Payables to affiliates 81   77  
Customer deposits 192   134  
Regulatory liabilities 846   197  
Mark-to-market derivative liabilities 25   29  

Other 288   270  
Total current liabilities 3,439   1,954  
Long-term debt 12,253   12,030  
Long-term debt to financing trust 206   206  
Deferred credits and other liabilities
Deferred income taxes and unamortized investment tax credits 5,828   5,601  
Regulatory liabilities 9,163   8,421  
Asset retirement obligations 193   167  
Non-pension postretirement benefit obligations 151   156  
Mark-to-market derivative liabilities 106   103  
Other 1,341   1,232  
Total deferred credits and other liabilities 16,782   15,680  
Total liabilities 32,680   29,870  
Commitments and contingencies
Shareholders’ equity
Common stock ($ 12.50 par value, 250 shares authorized, 127 shares outstanding as of December 31, 2025 and 2024)
1,588   1,588  
Other paid-in capital 11,019   10,628  
Retained earnings 2,998   2,664  
Total shareholders’ equity 15,605   14,880  
Total liabilities and shareholders’ equity $ 48,285   $ 44,750  

See the Combined Notes to Consolidated Financial Statements

124

Table of Contents

Commonwealth Edison Company and Subsidiary Companies
Consolidated Statements of Changes in Shareholders’ Equity

(In millions) Common
Stock Other
Paid-In
Capital Retained
Earnings Total
Shareholders’
Equity
Balance at December 31, 2022 $ 1,588   $ 9,746   $ 2,030   $ 13,364  
Net income —  —  1,090   1,090  

Common stock dividends —  —  ( 746 ) ( 746 )
Contributions from parent —  655   —  655  

Balance at December 31, 2023 $ 1,588   $ 10,401   $ 2,374   $ 14,363  
Net income —  —  1,066   1,066  

Common stock dividends —  —  ( 776 ) ( 776 )
Contributions from parent —  227   —  227  

Balance at December 31, 2024 $ 1,588   $ 10,628   $ 2,664   $ 14,880  
Net income —  —  1,147   1,147  

Common stock dividends —  —  ( 813 ) ( 813 )
Contributions from parent —  391   —  391  

Balance at December 31, 2025 $ 1,588   $ 11,019   $ 2,998   $ 15,605  

See the Combined Notes to Consolidated Financial Statements

125

Table of Contents

PECO Energy Company and Subsidiary Companies
Consolidated Statements of Operations and Comprehensive Income

For the Years Ended December 31,
(In millions) 2025 2024 2023
Operating revenues
Electric operating revenues $ 3,818   $ 3,312   $ 3,202  
Natural gas operating revenues 854   645   690  
Revenues from alternative revenue programs —   6   ( 7 )
Operating revenues from affiliates 12   10   9  
Total operating revenues 4,684   3,973   3,894  
Operating expenses
Purchased power 1,436   1,265   1,270  
Purchased fuel 297   212   274  

Operating and maintenance 946   875   786  
Operating and maintenance from affiliates 249   245   217  
Depreciation and amortization 454   428   397  
Taxes other than income taxes 240   218   202  
Total operating expenses 3,622   3,243   3,146  
Gain on sale of assets —   4   —  
Operating income 1,062   734   748  
Other income and (deductions)
Interest expense, net ( 249 ) ( 221 ) ( 192 )
Interest expense to affiliates, net ( 11 ) ( 11 ) ( 9 )
Other, net 41   37   36  
Total other income and (deductions) ( 219 ) ( 195 ) ( 165 )
Income before income taxes 843   539   583  
Income taxes 29   ( 12 ) 20  

Net income $ 814   $ 551   $ 563  
Comprehensive income $ 814   $ 551   $ 563  

    
See the Combined Notes to Consolidated Financial Statements

126

Table of Contents

PECO Energy Company and Subsidiary Companies
Consolidated Statements of Cash Flows

For the Years Ended December 31,
(In millions) 2025 2024 2023
Cash flows from operating activities
Net income $ 814   $ 551   $ 563  
Adjustments to reconcile net income to net cash flows provided by
operating activities:
Depreciation and amortization 454   428   397  

Gain on sales of assets —   ( 4 ) —  
Deferred income taxes and amortization of investment tax
credits ( 69 ) ( 63 ) ( 43 )

Other non-cash operating activities 78   59   13  
Changes in assets and liabilities:
Accounts receivable ( 238 ) ( 210 ) 67  
Receivables from and payables to affiliates, net ( 6 ) 4   ( 1 )
Inventories ( 12 ) 1   34  
Accounts payable and accrued expenses 118   23   ( 78 )
Collateral received, net 6   —   —  
Income taxes 283   ( 76 ) 86  
Regulatory assets and liabilities, net ( 33 ) 27   ( 31 )
Pension and non-pension postretirement benefit contributions ( 13 ) ( 4 ) ( 1 )
Other assets and liabilities 21   18   13  
Net cash flows provided by operating activities 1,403   754   1,019  
Cash flows from investing activities
Capital expenditures ( 1,867 ) ( 1,553 ) ( 1,426 )

Other investing activities 3   6   2  
Net cash flows used in investing activities ( 1,864 ) ( 1,547 ) ( 1,424 )
Cash flows from financing activities

Change in short-term borrowings ( 192 ) 27   ( 74 )
Issuance of long-term debt 1,050   575   575  
Retirement of long-term debt ( 350 ) —   ( 50 )

Dividends paid on common stock ( 546 ) ( 400 ) ( 405 )
Contributions from parent 577   595   348  

Other financing activities ( 10 ) ( 7 ) ( 6 )
Net cash flows provided by financing activities 529   790   388  
Increase (decrease) in cash, restricted cash, and cash equivalents 68   ( 3 ) ( 17 )
Cash, restricted cash, and cash equivalents at beginning of period 48   51   68  
Cash, restricted cash, and cash equivalents at end of period $ 116   $ 48   $ 51  

Supplemental cash flow information
Increase (decrease) in capital expenditures not paid $ 94   $ 103   $ ( 56 )

See the Combined Notes to Consolidated Financial Statements

127

Table of Contents

PECO Energy Company and Subsidiary Companies
Consolidated Balance Sheets

December 31,
(In millions) 2025 2024
ASSETS
Current assets
Cash and cash equivalents $ 116   $ 48  

Accounts receivable
Customer accounts receivable 811 670
Customer allowance for credit losses ( 137 ) ( 133 )
Customer accounts receivable, net 674   537  
Other accounts receivable 144 145
Other allowance for credit losses ( 18 ) ( 18 )
Other accounts receivable, net 126   127  

Inventories, net
Fossil fuel 43   37  
Materials and supplies 83   79  

Prepaid renewable energy credits 55   51  
Regulatory assets 72   65  
Other 34   29  
Total current assets 1,203   973  
Property, plant, and equipment (net of accumulated depreciation and amortization of $ 4,131 and $ 4,042 as of December 31, 2025 and 2024, respectively)
15,922   14,392  
Deferred debits and other assets
Regulatory assets 1,275   1,003  

Receivable related to Regulatory Agreement Units 442   247  
Investments 45   41  
Prepaid pension asset 441   435  
Other 34   32  
Total deferred debits and other assets 2,237   1,758  
Total assets $ 19,362   $ 17,123  

See the Combined Notes to Consolidated Financial Statements

128

Table of Contents

PECO Energy Company and Subsidiary Companies
Consolidated Balance Sheets

December 31,
(In millions) 2025 2024
LIABILITIES AND SHAREHOLDER'S EQUITY
Current liabilities
Short-term borrowings $ —   $ 192  
Long-term debt due within one year —   350  
Accounts payable 811   639  
Accrued expenses 483   166  
Payables to affiliates 35   41  

Customer deposits 93   80  
Renewable energy credit obligations 56   52  
Regulatory liabilities 140   122  
Other 40   28  
Total current liabilities 1,658   1,670  
Long-term debt 6,396   5,354  
Long-term debt to financing trusts 184   184  
Deferred credits and other liabilities
Deferred income taxes and unamortized investment tax credits 2,594   2,433  
Regulatory liabilities 449   253  
Asset retirement obligations 26   27  
Non-pension postretirement benefit obligations 286   287  
Other 109   100  
Total deferred credits and other liabilities 3,464   3,100  
Total liabilities 11,702   10,308  
Commitments and contingencies

Shareholder's equity
Common stock ( No par value, 500 shares authorized, 170 shares outstanding as of December 31, 2025 and 2024)
5,222   4,645  
Retained earnings 2,438   2,170  

Total shareholder's equity 7,660   6,815  
Total liabilities and shareholder's equity $ 19,362   $ 17,123  

See the Combined Notes to Consolidated Financial Statements

129

Table of Contents

PECO Energy Company and Subsidiary Companies
Consolidated Statements of Changes in Shareholder's Equity

(In millions) Common
Stock Retained
Earnings Total
Shareholder's
Equity
Balance at December 31, 2022 $ 3,702   $ 1,861   $ 5,563  
Net income —  563   563  
Common stock dividends —  ( 405 ) ( 405 )
Contributions from parent 348   —  348  

Balance at December 31, 2023 $ 4,050   $ 2,019   $ 6,069  
Net income —  551   551  
Common stock dividends —  ( 400 ) ( 400 )
Contributions from parent 595   —  595  

Balance at December 31, 2024 $ 4,645   $ 2,170   $ 6,815  
Net income —  814   814  
Common stock dividends —  ( 546 ) ( 546 )

Contributions from parent 577   —  577  

Balance at December 31, 2025 $ 5,222   $ 2,438   $ 7,660  

 
See the Combined Notes to Consolidated Financial Statements

130

Table of Contents

Baltimore Gas and Electric Company
Statements of Operations and Comprehensive Income

For the Years Ended December 31,
(In millions) 2025 2024 2023
Operating revenues
Electric operating revenues $ 4,037   $ 3,407   $ 3,065  
Natural gas operating revenues 1,264   957   869  
Revenues from alternative revenue programs ( 87 ) 52   84  
Operating revenues from affiliates 8   10   9  
Total operating revenues 5,222   4,426   4,027  
Operating expenses
Purchased power 1,890   1,460   1,311  
Purchased fuel 331   191   220  

Operating and maintenance 815   790   520  
Operating and maintenance from affiliates 251   246   221  
Depreciation and amortization 632   638   654  
Taxes other than income taxes 370   345   319  
Total operating expenses 4,289   3,670   3,245  

Operating income 933   756   782  
Other income and (deductions)
Interest expense, net ( 247 ) ( 216 ) ( 182 )

Other, net 51   36   18  
Total other income and (deductions) ( 196 ) ( 180 ) ( 164 )
Income before income taxes 737   576   618  
Income taxes 159   49   133  
Net income $ 578   $ 527   $ 485  

Comprehensive income $ 578   $ 527   $ 485  

See the Combined Notes to Consolidated Financial Statements

131

Table of Contents

Baltimore Gas and Electric Company
Statements of Cash Flows

For the Years Ended December 31,
(In millions) 2025 2024 2023
Cash flows from operating activities
Net income $ 578   $ 527   $ 485  
Adjustments to reconcile net income to net cash flows provided by operating activities:
Depreciation and amortization 632   638   654  

Deferred income taxes and amortization of investment tax credits 86   5   66  
Other non-cash operating activities 170   38   ( 1 )
Changes in assets and liabilities:
Accounts receivable ( 244 ) ( 142 ) 89  
Receivables from and payables to affiliates, net ( 9 ) 14   ( 5 )
Inventories 3   ( 5 ) 47  
Accounts payable and accrued expenses ( 18 ) 35   ( 75 )
Collateral received (paid), net 4   ( 1 ) ( 22 )
Income taxes 169   ( 54 ) 37  
Regulatory assets and liabilities, net ( 97 ) ( 84 ) ( 292 )
Pension and non-pension postretirement benefit contributions ( 44 ) ( 37 ) ( 19 )
Other assets and liabilities ( 1 ) ( 39 ) ( 13 )
Net cash flows provided by operating activities 1,229   895   951  
Cash flows from investing activities
Capital expenditures ( 1,657 ) ( 1,420 ) ( 1,367 )

Other investing activities 9   12   7  
Net cash flows used in investing activities ( 1,648 ) ( 1,408 ) ( 1,360 )
Cash flows from financing activities
Changes in short-term borrowings ( 175 ) ( 161 ) ( 72 )
Issuance of long-term debt 650   800   700  
Retirement of long-term debt —   —   ( 300 )

Dividends paid on common stock ( 393 ) ( 368 ) ( 316 )
Contributions from parent 531   237   385  
Other financing activities ( 8 ) ( 9 ) ( 7 )
Net cash flows provided by financing activities 605   499   390  
Increase (decrease) in cash, restricted cash, and cash equivalents 186   ( 14 ) ( 19 )
Cash, restricted cash, and cash equivalents at beginning of period 34   48   67  
Cash, restricted cash, and cash equivalents at end of period $ 220   $ 34   $ 48  

Supplemental cash flow information
Increase (decrease) in capital expenditures not paid $ 153   $ 156   $ ( 44 )

See the Combined Notes to Consolidated Financial Statements

132

Table of Contents

Baltimore Gas and Electric Company
Balance Sheets

December 31,
(In millions) 2025 2024
ASSETS
Current assets
Cash and cash equivalents $ 217   $ 33  
Restricted cash and cash equivalents 3   1  
Accounts receivable
Customer accounts receivable 887 654
Customer allowance for credit losses ( 68 ) ( 56 )
Customer accounts receivable, net 819   598  
Other accounts receivable 100 113
Other allowance for credit losses ( 4 ) ( 6 )
Other accounts receivable, net 96   107  
Receivables from affiliates 1   —  
Inventories, net
Fossil fuel 36   29  
Materials and supplies 74   84  

Prepaid utility taxes 126   115  
Regulatory assets 175   207  
Prepaid renewable energy credits 189   157  
Other 14   17  
Total current assets 1,750   1,348  
Property, plant, and equipment (net of accumulated depreciation and amortization of $ 5,234 and $ 5,005 as of December 31, 2025 and 2024, respectively)
14,385   13,134  
Deferred debits and other assets
Regulatory assets 804   788  
Investments 10   10  
Prepaid pension asset 194   218  
Other 41   44  
Total deferred debits and other assets 1,049   1,060  
Total assets $ 17,184   $ 15,542  

See the Combined Notes to Consolidated Financial Statements

133

Table of Contents

Baltimore Gas and Electric Company
Balance Sheets

December 31,
(In millions) 2025 2024
LIABILITIES AND SHAREHOLDER'S EQUITY
Current liabilities
Short-term borrowings $ —   $ 175  
Long-term debt due within one year 350   —  
Accounts payable 640   515  
Accrued expenses 352   176  

Payables to affiliates 39   48  
Customer deposits 125   118  
Regulatory liabilities 31   12  
Renewable energy credit obligations 194   160  
Other 39   39  
Total current liabilities 1,770   1,243  
Long-term debt 5,691   5,395  
Deferred credits and other liabilities
Deferred income taxes and unamortized investment tax credits 2,242   2,099  
Regulatory liabilities 595   636  
Asset retirement obligations 36   36  
Non-pension postretirement benefit obligations 144   150  
Other 104   97  
Total deferred credits and other liabilities 3,121   3,018  
Total liabilities 10,582   9,656  
Commitments and contingencies
Shareholder's equity
Common stock ( No par value, 0 shares (a) authorized, 0 shares (a) outstanding as of December 31, 2025 and 2024)
4,014   3,483  
Retained earnings 2,588   2,403  

Total shareholder's equity 6,602   5,886  

Total liabilities and shareholder's equity $ 17,184   $ 15,542  

_____________
(a) In millions, shares round to zero. Number of shares is 1,500 authorized and 1,000 outstanding as of December 31, 2025 and 2024.

See the Combined Notes to Consolidated Financial Statements

134

Table of Contents

Baltimore Gas and Electric Company
Statements of Changes in Shareholder's Equity

(In millions) Common
Stock Retained
Earnings Total
Shareholder's
Equity
Balance at December 31, 2022 $ 2,861   $ 2,075   $ 4,936  
Net income —  485   485  

Common stock dividends —  ( 316 ) ( 316 )

Contributions from parent 385   —  385  

Balance at December 31, 2023 $ 3,246   $ 2,244   $ 5,490  
Net income —  527   527  

Common stock dividends —  ( 368 ) ( 368 )

Contributions from parent 237   —  237  

Balance at December 31, 2024 $ 3,483   $ 2,403   $ 5,886  
Net income —  578   578  
Common stock dividends —  ( 393 ) ( 393 )

Contributions from parent 531   —  531  

Balance at December 31, 2025 $ 4,014   $ 2,588   $ 6,602  

See the Combined Notes to Consolidated Financial Statements

135

Table of Contents

Pepco Holdings LLC and Subsidiary Companies
Consolidated Statements of Operations and Comprehensive Income

For the Years Ended December 31,
(In millions) 2025 2024 2023
Operating revenues
Electric operating revenues $ 6,957   $ 6,257   $ 5,748  
Natural gas operating revenues 231   180   205  
Revenues from alternative revenue programs ( 63 ) 1   64  
Operating revenues from affiliates 10   10   9  
Total operating revenues 7,135   6,448   6,026  
Operating expenses
Purchased power 2,836   2,447   2,250  
Purchased fuel 95   66   98  

Operating and maintenance 1,123   1,046   1,110  
Operating and maintenance from affiliates 204   204   179  
Depreciation and amortization 935   947   990  
Taxes other than income taxes 568   528   487  

Total operating expenses 5,761   5,238   5,114  

Gain (loss) on sales of assets 3   ( 1 ) 9  
Operating income 1,377   1,209   921  
Other income and (deductions)
Interest expense, net ( 408 ) ( 373 ) ( 323 )
Interest expense to affiliates, net ( 3 ) ( 3 ) —  
Other, net 72   97   108  
Total other income and (deductions) ( 339 ) ( 279 ) ( 215 )
Income before income taxes 1,038   930   706  
Income taxes 239   189   116  

Net income $ 799   $ 741   $ 590  

Comprehensive income $ 799   $ 741   $ 590  

See the Combined Notes to Consolidated Financial Statements

136

Table of Contents

Pepco Holdings LLC and Subsidiary Companies
Consolidated Statements of Cash Flows

For the Years Ended December 31,
(In millions) 2025 2024 2023
Cash flows from operating activities
Net income $ 799   $ 741   $ 590  

Adjustments to reconcile net income to net cash flows used in operating activities:
Depreciation, amortization, and accretion 937   947   990  

(Gain) loss on sales of assets ( 3 ) 1   ( 9 )
Deferred income taxes and amortization of investment tax credits 132   73   29  

Other non-cash operating activities 241   188   110  
Changes in assets and liabilities:
Accounts receivable ( 204 ) ( 110 ) ( 79 )
Receivables from and payables to affiliates, net ( 1 ) 2   ( 8 )
Inventories ( 32 ) ( 37 ) ( 42 )
Accounts payable and accrued expenses 8   66   40  

Collateral received (paid), net 17   —   ( 196 )
Income taxes ( 7 ) ( 33 ) 65  
Regulatory assets and liabilities, net ( 192 ) ( 223 ) ( 61 )
Pension and non-pension postretirement benefit contributions ( 50 ) ( 86 ) ( 24 )
Other assets and liabilities ( 47 ) ( 119 ) ( 101 )
Net cash flows provided by operating activities 1,598   1,410   1,304  
Cash flows from investing activities
Capital expenditures ( 2,056 ) ( 1,863 ) ( 1,988 )
Proceeds from sales of long-lived assets 4   —   10  

Other investing activities —   —   8  
Net cash flows used in investing activities ( 2,052 ) ( 1,863 ) ( 1,970 )
Cash flows from financing activities
Changes in short-term borrowings 82   136   ( 20 )

Issuance of long-term debt 650   1,100   1,075  
Retirement of long-term debt ( 150 ) ( 583 ) ( 500 )
Change in Exelon intercompany money pool 17   ( 2 ) 21  

Distributions to member ( 710 ) ( 706 ) ( 513 )
Contributions from member 568   505   475  

Other financing activities ( 25 ) ( 38 ) ( 41 )
Net cash flows provided by financing activities 432   412   497  
Decrease in cash, restricted cash, and cash equivalents ( 22 ) ( 41 ) ( 169 )
Cash, restricted cash, and cash equivalents at beginning of period 163   204   373  
Cash, restricted cash, and cash equivalents at end of period $ 141   $ 163   $ 204  

Supplemental cash flow information
Increase (decrease) in capital expenditures not paid $ 79   $ 76   $ ( 109 )

See the Combined Notes to Consolidated Financial Statements

137

Table of Contents

Pepco Holdings LLC and Subsidiary Companies
Consolidated Balance Sheets

December 31,
(In millions) 2025 2024
ASSETS
Current assets
Cash and cash equivalents $ 103   $ 139  
Restricted cash and cash equivalents 38   24  
Accounts receivable
Customer accounts receivable 975 827
Customer allowance for credit losses ( 115 ) ( 108 )
Customer accounts receivable, net 860   719  
Other accounts receivable 292 284
Other allowance for credit losses ( 49 ) ( 49 )
Other accounts receivable, net 243   235  

Receivable from affiliates 14   8  

Inventories, net
Fossil fuel 9   7  
Materials and supplies 357   325  

Prepaid utility taxes 77   70  
Regulatory assets 352   323  

Prepaid renewable energy credits 201   194  
Other 34   36  
Total current assets 2,288   2,080  
Property, plant, and equipment (net of accumulated depreciation and amortization of $ 4,350 and $ 3,728 as of December 31, 2025 and 2024, respectively)
21,377   20,053  
Deferred debits and other assets
Regulatory assets 1,556   1,570  
Goodwill 4,005   4,005  
Investments 158   152  

Prepaid pension asset 199   252  

Other 132   185  
Total deferred debits and other assets 6,050   6,164  
Total assets $ 29,715   $ 28,297  

See the Combined Notes to Consolidated Financial Statements

138

Table of Contents

Pepco Holdings LLC and Subsidiary Companies
Consolidated Balance Sheets

December 31,
(In millions) 2025 2024
LIABILITIES AND MEMBER'S EQUITY
Current liabilities
Short-term borrowings $ 612   $ 530  
Long-term debt due within one year 64   290  
Accounts payable 816   721  
Accrued expenses 359   367  
Payables to affiliates 71   66  
Borrowings from Exelon intercompany money pool 80   63  
Customer deposits 123   113  
Regulatory liabilities 103   69  

Unamortized energy contract liabilities 5   5  

Renewable energy credit obligations 223   217  
Other 121   124  
Total current liabilities 2,577   2,565  
Long-term debt 9,526   8,834  
Deferred credits and other liabilities
Deferred income taxes and unamortized investment tax credits 3,391   3,190  
Regulatory liabilities 722   794  
Asset retirement obligations 62   67  
Non-pension postretirement benefit obligations 24   31  

Unamortized energy contract liabilities 16   21  
Other 418   473  
Total deferred credits and other liabilities 4,633   4,576  
Total liabilities 16,736   15,975  
Commitments and contingencies

Member's equity
Membership interest 13,130   12,562  

Undistributed losses ( 151 ) ( 240 )

Total member's equity 12,979   12,322  
Total liabilities and member's equity $ 29,715   $ 28,297  

See the Combined Notes to Consolidated Financial Statements

139

Table of Contents

Pepco Holdings LLC and Subsidiary Companies
Consolidated Statements of Changes in Member's Equity

(In millions) Membership Interest Undistributed (Losses)/Gains Total
Member's Equity
Balance at December 31, 2022 $ 11,582   $ ( 352 ) $ 11,230  
Net income —  590   590  
Distribution to member —  ( 513 ) ( 513 )
Contributions from member 475   —  475  
Balance at December 31, 2023 $ 12,057   $ ( 275 ) $ 11,782  
Net income —  741   741  
Distribution to member —  ( 706 ) ( 706 )
Contributions from member 505   —  505  
Balance at December 31, 2024 $ 12,562   $ ( 240 ) $ 12,322  
Net income —  799   799  
Distribution to member —  ( 710 ) ( 710 )
Contributions from member 568   —  568  
Balance at December 31, 2025 $ 13,130   $ ( 151 ) $ 12,979  

See the Combined Notes to Consolidated Financial Statements

140

Table of Contents

Potomac Electric Power Company
Statements of Operations and Comprehensive Income

For the Years Ended December 31,
(In millions) 2025 2024 2023
Operating revenues
Electric operating revenues $ 3,497   $ 3,017   $ 2,793  
Revenues from alternative revenue programs ( 49 ) 15   22  
Operating revenues from affiliates 6   7   9  
Total operating revenues 3,454   3,039   2,824  
Operating expenses
Purchased power 1,262   1,055   974  

Operating and maintenance 379   283   336  
Operating and maintenance from affiliates 246   251   236  
Depreciation and amortization 433   407   441  
Taxes other than income taxes 455   424   390  
Total operating expenses 2,775   2,420   2,377  

Gain (loss) on sales of assets 1   ( 1 ) 9  

Operating income 680   618   456  
Other income and (deductions)
Interest expense, net ( 214 ) ( 195 ) ( 165 )
Interest income from affiliates, net —   3   —  
Other, net 41   54   66  
Total other income and (deductions) ( 173 ) ( 138 ) ( 99 )
Income before income taxes 507   480   357  
Income taxes 106   90   51  

Net income $ 401   $ 390   $ 306  

Comprehensive income $ 401   $ 390   $ 306  

See the Combined Notes to Consolidated Financial Statements

141

Table of Contents

Potomac Electric Power Company
Statements of Cash Flows

For the Years Ended December 31,
(In millions) 2025 2024 2023
Cash flows from operating activities
Net income $ 401   $ 390   $ 306  
Adjustments to reconcile net income to net cash flows provided by operating activities:
Depreciation, amortization, and accretion 435   407   441  

(Gain) loss on sales of assets ( 1 ) 1   ( 9 )
Deferred income taxes and amortization of investment tax credits 51   24   ( 15 )
Other non-cash operating activities 111   33   53  
Changes in assets and liabilities:
Accounts receivable ( 121 ) ( 26 ) ( 29 )
Receivables from and payables to affiliates, net 4   6   ( 3 )
Inventories ( 4 ) ( 10 ) ( 24 )
Accounts payable and accrued expenses 1   67   6  
Collateral received (paid), net 12   —   ( 25 )
Income taxes ( 33 ) ( 30 ) 60  
Regulatory assets and liabilities, net ( 93 ) ( 85 ) ( 45 )
Pension and non-pension postretirement benefit contributions ( 9 ) ( 9 ) ( 12 )
Other assets and liabilities ( 29 ) ( 84 ) ( 5 )
Net cash flows provided by operating activities 725   684   699  
Cash flows from investing activities
Capital expenditures ( 957 ) ( 929 ) ( 957 )
Proceeds from sale of long-lived assets 2   —   10  

Other investing activities —   —   8  
Net cash flows used in investing activities ( 955 ) ( 929 ) ( 939 )
Cash flows from financing activities
Changes in short-term borrowings 103   68   ( 167 )
Issuance of long-term debt 275   675   350  
Retirement of long-term debt —   ( 400 ) —  
Dividends paid on common stock ( 327 ) ( 359 ) ( 252 )
Contributions from parent 193   260   308  
Other financing activities ( 10 ) ( 20 ) ( 26 )
Net cash flows provided by financing activities 234   224   213  
Increase (decrease) in cash, restricted cash, and cash equivalents 4   ( 21 ) ( 27 )
Cash, restricted cash, and cash equivalents at beginning of period 51   72   99  
Cash, restricted cash, and cash equivalents at end of period $ 55   $ 51   $ 72  

Supplemental cash flow information
Increase (decrease) in capital expenditures not paid $ 56   $ 30   $ ( 55 )

See the Combined Notes to Consolidated Financial Statements

142

Table of Contents

Potomac Electric Power Company
Balance Sheets

December 31,
(In millions) 2025 2024
ASSETS
Current assets
Cash and cash equivalents $ 22   $ 30  
Restricted cash and cash equivalents 33   21  
Accounts receivable
Customer accounts receivable 484 395
Customer allowance for credit losses ( 69 ) ( 59 )
Customer accounts receivable, net 415   336  
Other accounts receivable 154 142
Other allowance for credit losses ( 26 ) ( 27 )
Other accounts receivable, net 128   115  

Receivables from affiliates —   1  

Inventories, net 174   169  
Regulatory assets 182   157  
Prepaid renewable energy credits 171   165  
Other 59   55  
Total current assets 1,184   1,049  
Property, plant, and equipment (net of accumulated depreciation and amortization of $ 4,784 and $ 4,522 as of December 31, 2025 and 2024, respectively)
10,747   10,097  
Deferred debits and other assets
Regulatory assets 405   446  
Investments 141   135  

Prepaid pension asset 194   222  
Other 57   51  
Total deferred debits and other assets 797   854  
Total assets $ 12,728   $ 12,000  

See the Combined Notes to Consolidated Financial Statements

143

Table of Contents

Potomac Electric Power Company
Balance Sheets

December 31,
(In millions) 2025 2024
LIABILITIES AND SHAREHOLDER'S EQUITY
Current liabilities
Short-term borrowings $ 303   $ 200  
Long-term debt due within one year 6   6  
Accounts payable 418   360  
Accrued expenses 173   201  
Payables to affiliates 37   37  

Customer deposits 61   55  
Regulatory liabilities 13   17  
Merger related obligation 20   22  
Renewable energy credit obligations 174   169  
Other 64   51  
Total current liabilities 1,269   1,118  
Long-term debt 4,626   4,356  

Deferred credits and other liabilities
Deferred income taxes and unamortized investment tax credits 1,604   1,509  
Regulatory liabilities 268   310  
Asset retirement obligations 45   49  

Other 214   223  
Total deferred credits and other liabilities 2,131   2,091  
Total liabilities 8,026   7,565  
Commitments and contingencies
Shareholder's equity
Common stock ($ 0.01 par value, 200 shares authorized, 0 shares (a) outstanding as of December 31, 2025 and 2024)
3,528   3,335  

Retained earnings 1,174   1,100  

Total shareholder's equity 4,702   4,435  
Total liabilities and shareholder's equity $ 12,728   $ 12,000  

_____________
(a) In millions, shares round to zero. Number of shares is 100 outstanding as of December 31, 2025 and 2024.

See the Combined Notes to Consolidated Financial Statements

144

Table of Contents

Potomac Electric Power Company
Statements of Changes in Shareholder's Equity

(In millions) Common Stock Retained Earnings Total Shareholder's Equity
Balance at December 31, 2022 $ 2,767   $ 1,015   $ 3,782  
Net income —  306   306  
Common stock dividends —  ( 252 ) ( 252 )
Contributions from parent 308   —  308  
Balance at December 31, 2023 $ 3,075   $ 1,069   $ 4,144  
Net income —  390   390  
Common stock dividends —  ( 359 ) ( 359 )
Contributions from parent 260   —  260  
Balance at December 31, 2024 $ 3,335   $ 1,100   $ 4,435  
Net income —  401   401  
Common stock dividends —  ( 327 ) ( 327 )
Contributions from parent 193   —  193  
Balance at December 31, 2025 $ 3,528   $ 1,174   $ 4,702  

See the Combined Notes to Consolidated Financial Statements

145

Table of Contents

Delmarva Power & Light Company
Statements of Operations and Comprehensive Income

For the Years Ended December 31,
(In millions) 2025 2024 2023
Operating revenues
Electric operating revenues $ 1,747   $ 1,602   $ 1,460  
Natural gas operating revenues 231   180   205  
Revenues from alternative revenue programs ( 16 ) ( 2 ) 15  
Operating revenues from affiliates 9   7   8  
Total operating revenues 1,971   1,787   1,688  
Operating expenses
Purchased power 766   694   639  
Purchased fuel 95   66   98  

Operating and maintenance 213   196   193  
Operating and maintenance from affiliates 178   181   171  
Depreciation and amortization 252   245   244  
Taxes other than income taxes 88   79   75  
Total operating expenses 1,592   1,461   1,420  

Operating income 379   326   268  
Other income and (deductions)
Interest expense, net ( 102 ) ( 94 ) ( 74 )
Interest income from affiliates, net —   1   —  
Other, net 16   25   18  
Total other income and (deductions) ( 86 ) ( 68 ) ( 56 )
Income before income taxes 293   258   212  
Income taxes 69   49   35  
Net income $ 224   $ 209   $ 177  
Comprehensive income $ 224   $ 209   $ 177  

See the Combined Notes to Consolidated Financial Statements

146

Table of Contents

Delmarva Power & Light Company
Statements of Cash Flows

For the Years Ended December 31,
(In millions) 2025 2024 2023
Cash flows from operating activities
Net income $ 224   $ 209   $ 177  
Adjustments to reconcile net income to net cash flows provided by operating activities:
Depreciation and amortization 252   245   244  

Deferred income taxes and amortization of investment tax credits 32   16   4  
Other non-cash operating activities 57   40   13  
Changes in assets and liabilities:
Accounts receivable ( 70 ) ( 46 ) 6  
Receivables from and payables to affiliates, net ( 3 ) 2   2  
Inventories ( 14 ) ( 20 ) ( 5 )
Accounts payable and accrued expenses 20   22   ( 7 )
Collateral received (paid), net 2   2   ( 121 )
Income taxes 16   ( 24 ) 26  
Regulatory assets and liabilities, net ( 35 ) ( 51 ) 25  
Pension and non-pension postretirement benefit contributions ( 1 ) ( 3 ) ( 4 )
Other assets and liabilities 6   16   13  
Net cash flows provided by operating activities 486   408   373  
Cash flows from investing activities
Capital expenditures ( 534 ) ( 556 ) ( 562 )

Net cash flows used in investing activities ( 534 ) ( 556 ) ( 562 )
Cash flows from financing activities
Changes in short-term borrowings 17   81   ( 52 )
Issuance of long-term debt 125   175   650  
Retirement of long-term debt —   ( 33 ) ( 500 )
Dividends paid on common stock ( 202 ) ( 220 ) ( 133 )
Contributions from parent 107   160   99  
Other financing activities ( 10 ) ( 8 ) ( 11 )
Net cash flows provided by financing activities 37   155   53  
(Decrease) increase in cash, restricted cash, and cash equivalents ( 11 ) 7   ( 136 )
Cash, restricted cash, and cash equivalents at beginning of period 23   16   152  
Cash, restricted cash, and cash equivalents at end of period $ 12   $ 23   $ 16  

Supplemental cash flow information
Increase (decrease) in capital expenditures not paid $ 13   $ 41   $ ( 6 )

See the Combined Notes to Consolidated Financial Statements

147

Table of Contents

Delmarva Power & Light Company
Balance Sheets

December 31,
(In millions) 2025 2024
ASSETS
Current assets
Cash and cash equivalents $ 9   $ 21  
Restricted cash and cash equivalents 3   2  
Accounts receivable
Customer accounts receivable 253 210
Customer allowance for credit losses ( 19 ) ( 17 )
Customer accounts receivable, net 234   193  
Other accounts receivable 75 63
Other allowance for credit losses ( 10 ) ( 9 )
Other accounts receivable, net 65   54  
Receivables from affiliates 2   —  
Inventories, net
Fossil fuel 9   6  
Materials and supplies 107   95  
Prepaid utility taxes 29   26  
Regulatory assets 72   60  

Prepaid renewable energy credits 30   29  
Other 13   16  
Total current assets 573   502  
Property, plant, and equipment, (net of accumulated depreciation and amortization of $ 2,241 and $ 2,075 as of December 31, 2025 and 2024, respectively)
5,855   5,540  
Deferred debits and other assets
Regulatory assets 214   215  

Other 147   164  
Total deferred debits and other assets 361   379  
Total assets $ 6,789   $ 6,421  

See the Combined Notes to Consolidated Financial Statements

148

Table of Contents

Delmarva Power & Light Company
Balance Sheets

December 31,
(In millions) 2025 2024

LIABILITIES AND SHAREHOLDER'S EQUITY
Current liabilities
Short-term borrowings $ 161   $ 144  
Long-term debt due within one year 53   130  
Accounts payable 218   187  
Accrued expenses 70   55  
Payables to affiliates 25   26  
Customer deposits 36   34  
Regulatory liabilities 42   42  
Renewable energy credit obligations 49   48  
Other 22   22  
Total current liabilities 676   688  
Long-term debt 2,291   2,090  
Deferred credits and other liabilities
Deferred income taxes and unamortized investment tax credits 996   946  
Regulatory liabilities 316   325  
Asset retirement obligations 12   13  

Other 127   117  
Total deferred credits and other liabilities 1,451   1,401  
Total liabilities 4,418   4,179  
Commitments and contingencies
Shareholder's equity
Common stock ($ 2.25 par value, 0 shares (a) authorized, 0 shares (a) outstanding as of December 31, 2025 and 2024, respectively)
1,722   1,615  
Retained earnings 649   627  
Total shareholder's equity 2,371   2,242  
Total liabilities and shareholder's equity $ 6,789   $ 6,421  

_____________
(a) In millions, shares round to zero. Number of shares is 1,000 authorized and outstanding as of December 31, 2025 and 2024.
See the Combined Notes to Consolidated Financial Statements

149

Table of Contents

Delmarva Power & Light Company
Statements of Changes in Shareholder's Equity

(In millions) Common Stock Retained Earnings Total Shareholder's Equity
Balance at December 31, 2022 $ 1,356   $ 594   $ 1,950  
Net income —  177   177  
Common stock dividends —  ( 133 ) ( 133 )
Contributions from parent 99   —  99  
Balance at December 31, 2023 $ 1,455   $ 638   $ 2,093  
Net income —  209   209  
Common stock dividends —  ( 220 ) ( 220 )
Contributions from parent 160   —  160  
Balance at December 31, 2024 $ 1,615   $ 627   $ 2,242  
Net income —  224   224  
Common stock dividends —  ( 202 ) ( 202 )
Contributions from parent 107   —  107  
Balance at December 31, 2025 $ 1,722   $ 649   $ 2,371  

See the Combined Notes to Consolidated Financial Statements

150

Table of Contents

Atlantic City Electric Company and Subsidiary Company
Consolidated Statements of Operations and Comprehensive Income

For the Years Ended December 31,
(In millions) 2025 2024 2023
Operating revenues
Electric operating revenues $ 1,712   $ 1,638   $ 1,493  
Revenues from alternative revenue programs 2   ( 12 ) 27  
Operating revenues from affiliates 4   2   2  
Total operating revenues 1,718   1,628   1,522  
Operating expenses
Purchased power 808   698   637  

Operating and maintenance 173   206   233  
Operating and maintenance from affiliates 155   162   153  
Depreciation and amortization 248   278   283  
Taxes other than income taxes 9   9   8  
Total operating expenses 1,393   1,353   1,314  
Gain on sale of assets 2   —   —  

Operating income 327   275   208  
Other income and (deductions)
Interest expense, net ( 82 ) ( 74 ) ( 72 )
Interest expense to affiliates, net —   ( 5 ) —  
Other, net 10   14   20  
Total other income and (deductions) ( 72 ) ( 65 ) ( 52 )
Income before income taxes 255   210   156  
Income taxes 67   55   36  

Net income $ 188   $ 155   $ 120  
Comprehensive income $ 188   $ 155   $ 120  

See the Combined Notes to Consolidated Financial Statements

151

Table of Contents

Atlantic City Electric Company and Subsidiary Company
Consolidated Statements of Cash Flows

For the Years Ended December 31,
(In millions) 2025 2024 2023
Cash flows from operating activities
Net income $ 188   $ 155   $ 120  
Adjustments to reconcile net income to net cash flows provided by operating activities:
Depreciation and amortization 248   278   283  

Gain on sales of assets ( 2 ) —   —  
Deferred income taxes and amortization of investment tax credits 47   39   27  
Other non-cash operating activities 38   70   —  
Changes in assets and liabilities:
Accounts receivable ( 14 ) ( 35 ) ( 57 )
Receivables from and payables to affiliates, net ( 3 ) ( 8 ) ( 4 )
Inventories ( 13 ) ( 8 ) ( 12 )
Accounts payable and accrued expenses ( 8 ) ( 18 ) 27  
Collateral received (paid), net 5   —   ( 50 )
Income taxes 9   ( 5 ) —  
Regulatory assets and liabilities, net ( 62 ) ( 88 ) ( 47 )
Pension and non-pension postretirement benefit contributions ( 4 ) ( 9 ) ( 3 )
Other assets and liabilities ( 1 ) ( 44 ) ( 83 )
Net cash flows provided by operating activities 428   327   201  
Cash flows from investing activities
Capital expenditures ( 390 ) ( 373 ) ( 460 )
Proceeds from sale of long-lived assets 2   —   —  

Net cash flows used in investing activities ( 388 ) ( 373 ) ( 460 )
Cash flows from financing activities
Changes in short-term borrowings ( 38 ) ( 13 ) 199  

Issuance of long-term debt 250   250   75  
Retirement of long-term debt ( 150 ) ( 150 ) —  

Dividends paid on common stock ( 183 ) ( 127 ) ( 126 )
Contributions from parent 98   85   65  
Other financing activities ( 7 ) ( 6 ) ( 5 )
Net cash flows (used in) provided by financing activities ( 30 ) 39   208  
Increase (decrease) in cash, restricted cash, and cash equivalents 10   ( 7 ) ( 51 )
Cash, restricted cash, and cash equivalents at beginning of period 14   21   72  
Cash, restricted cash, and cash equivalents at end of period $ 24   $ 14   $ 21  

Supplemental cash flow information
Increase (decrease) in capital expenditures not paid $ 11   $ 4   $ ( 47 )

See the Combined Notes to Consolidated Financial Statements

152

Table of Contents

Atlantic City Electric Company and Subsidiary Company
Consolidated Balance Sheets

December 31,
(In millions) 2025 2024
ASSETS
Current assets
Cash and cash equivalents $ 22   $ 14  
Restricted cash and cash equivalents 2   —  
Accounts receivable
Customer accounts receivable 239 223
Customer allowance for credit losses ( 27 ) ( 32 )
Customer accounts receivable, net 212   191  
Other accounts receivable 64 79
Other allowance for credit losses ( 13 ) ( 13 )
Other accounts receivable, net 51   66  

Receivables from affiliates 12   7  

Inventories, net 76   62  

Regulatory assets 93   101  
Other 8   6  
Total current assets 476   447  
Property, plant, and equipment, (net of accumulated depreciation and amortization of $ 1,956 and $ 1,798 as of December 31, 2025 and 2024, respectively)
4,556   4,366  
Deferred debits and other assets
Regulatory assets 559   502  

Other 41   34  
Total deferred debits and other assets 600   536  
Total assets $ 5,632   $ 5,349  

See the Combined Notes to Consolidated Financial Statements

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Atlantic City Electric Company and Subsidiary Company
Consolidated Balance Sheets

December 31,
(In millions) 2025 2024
LIABILITIES AND SHAREHOLDER'S EQUITY
Current liabilities
Short-term borrowings $ 148   $ 186  
Long-term debt due within one year 5   154  
Accounts payable 168   163  
Accrued expenses 64   52  
Payables to affiliates 24   22  

Customer deposits 26   24  
Regulatory liabilities 48   10  

Other 13   10  
Total current liabilities 496   621  
Long-term debt 2,028   1,779  
Deferred credits and other liabilities
Deferred income taxes and unamortized investment tax credits 869   816  
Regulatory liabilities 137   146  

Other 74   62  
Total deferred credits and other liabilities 1,080   1,024  
Total liabilities 3,604   3,424  
Commitments and contingencies
Shareholder's equity
Common stock ($ 3.00 par value, 25 shares authorized, 9 shares outstanding as of December 31, 2025 and 2024)
2,013   1,915  
Retained earnings 15   10  

Total shareholder's equity 2,028   1,925  
Total liabilities and shareholder's equity $ 5,632   $ 5,349  

See the Combined Notes to Consolidated Financial Statements

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Atlantic City Electric Company and Subsidiary Company
Consolidated Statements of Changes in Shareholder's Equity

(In millions) Common Stock Retained Earnings (Deficit) Total Shareholder's Equity
Balance at December 31, 2022 $ 1,765   $ ( 12 ) $ 1,753  
Net income —  120   120  
Common stock dividends —  ( 126 ) ( 126 )
Contributions from parent 65   —  65  
Balance at December 31, 2023 $ 1,830   $ ( 18 ) $ 1,812  
Net income —  155   155  
Common stock dividends —  ( 127 ) ( 127 )
Contributions from parent 85   —  85  
Balance at December 31, 2024 $ 1,915   $ 10   $ 1,925  
Net income —  188   188  

Common stock dividends —  ( 183 ) ( 183 )
Contributions from parent 98   —  98  
Balance at December 31, 2025 $ 2,013   $ 15   $ 2,028  

See the Combined Notes to Consolidated Financial Statements

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Combined Notes to Consolidated Financial Statements
(Dollars in millions, except per share data unless otherwise noted)

Note 1 — Significant Accounting Policies

1. Significant Accounting Policies (All Registrants)
Description of Business (All Registrants)
Exelon is a utility services holding company engaged in the energy transmission and distribution businesses through ComEd, PECO, BGE, Pepco, DPL, and ACE.

Name of Registrant    Business    Service Territories
Commonwealth Edison Company Purchase and regulated retail sale of electricity Northern Illinois, including the City of Chicago
Transmission and distribution of electricity to retail customers
PECO Energy Company Purchase and regulated retail sale of electricity and natural gas Southeastern Pennsylvania, including the City of Philadelphia (electricity)
Transmission and distribution of electricity and distribution of natural gas to retail customers Pennsylvania counties surrounding the City of Philadelphia (natural gas)
Baltimore Gas and Electric Company Purchase and regulated retail sale of electricity and natural gas Central Maryland, including the City of Baltimore (electricity and natural gas)
Transmission and distribution of electricity and distribution of natural gas to retail customers
Pepco Holdings LLC Utility services holding company engaged, through its reportable segments Pepco, DPL, and ACE Service Territories of Pepco, DPL, and ACE

Potomac Electric Power Company    Purchase and regulated retail sale of electricity    District of Columbia, and major portions of Montgomery and Prince George’s Counties, Maryland.
Transmission and distribution of electricity to retail customers
Delmarva Power &  Light Company Purchase and regulated retail sale of electricity and natural gas Portions of Delaware and Maryland (electricity)
Transmission and distribution of electricity and distribution of natural gas to retail customers Portions of New Castle County, Delaware (natural gas)
Atlantic City Electric Company Purchase and regulated retail sale of electricity Portions of Southern New Jersey
Transmission and distribution of electricity to retail customers

Basis of Presentation (All Registrants)
This is a combined annual report of all Registrants. The Notes to the Consolidated Financial Statements apply to the Registrants as indicated parenthetically next to each corresponding disclosure. When appropriate, the Registrants are named specifically for their related activities and disclosures. Each of the Registrants' Consolidated Financial Statements includes the accounts of its subsidiaries. All intercompany transactions have been eliminated.
Through its business services subsidiary, BSC, Exelon provides its subsidiaries with a variety of support services at cost, including legal, human resources, financial, information technology, and supply management services. PHI also has a business services subsidiary, PHISCO, which provides a variety of support services at cost, including legal, finance, engineering, customer operations, transmission and distribution planning, asset management, system operations, and power procurement, to PHI operating Registrants. The costs of BSC and PHISCO are directly charged or allocated to the applicable subsidiaries. The results of Exelon’s corporate operations are presented as “Other” within the consolidated financial statements and include intercompany eliminations unless otherwise disclosed.
As of December 31, 2025, 2024, and 2023 , Exelon owned 100 % of PECO, BGE, and PHI and more than 99 % of ComEd. PHI owns 100 % of Pepco, DPL, and ACE.
The accompanying consolidated financial statements have been prepared in accordance with GAAP for annual financial statements and in accordance with the instructions to Form 10-K and Regulation S-X promulgated by the SEC.
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Combined Notes to Consolidated Financial Statements
(Dollars in millions, except per share data unless otherwise noted)

Note 1 — Significant Accounting Policies

Use of Estimates (All Registrants)
The preparation of financial statements of each of the Registrants in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Areas in which significant estimates have been made include, but are not limited to, the accounting for pension and OPEB, unbilled energy revenues, allowance for credit losses, inventory reserves, goodwill and long-lived asset impairment assessments, derivative instruments, unamortized energy contracts, fixed asset depreciation, capitalization of indirect construction costs, environmental costs and other loss contingencies, AROs, and income taxes. Actual results could differ from those estimates.
Regulatory Accounting (All Registrants)
For their regulated electric and gas operations, the Registrants reflect the effects of cost-based rate regulation in their financial statements, which is required for entities with regulated operations that meet the following criteria: (1) rates are established or approved by a third-party regulator; (2) rates are designed to recover the entities’ cost of providing services or products; and (3) there is a reasonable expectation that rates designed to recover costs can be charged to and collected from customers. The Registrants account for their regulated operations in accordance with regulatory and legislative guidance from the regulatory authorities having jurisdiction, principally the ICC, PAPUC, MDPSC, DCPSC, DEPSC, and NJBPU, under state public utility laws and the FERC under various Federal laws. Regulatory assets and liabilities are amortized and the related expense or revenue is recognized in the Consolidated Statements of Operations consistent with the recovery or refund included in customer rates. The Registrants' regulatory assets and liabilities as of the balance sheet date are probable of being recovered or settled in future rates. If a separable portion of the Registrants' business was no longer able to meet the criteria discussed above, the affected entities would be required to eliminate from their consolidated financial statements the effects of regulation for that portion, which could have a material impact on their financial statements. See Note 2 — Regulatory Matters for additional information.
With the exception of income tax-related regulatory assets and liabilities, the Registrants classify regulatory assets and liabilities with a recovery or settlement period greater than one year as both current and noncurrent in their Consolidated Balance Sheets, with the current portion representing the amount expected to be recovered from or refunded to customers over the next twelve-month period as of the balance sheet date. Income tax-related regulatory assets and liabilities are classified entirely as noncurrent in the Registrants’ Consolidated Balance Sheets to align with the classification of the related deferred income tax balances.
The Registrants treat the impacts of a final rate order received after the balance sheet date but prior to the issuance of the financial statements as a non-recognized subsequent event, as the receipt of a final rate order is a separate and distinct event that has future impacts on the parties affected by the order.
Revenues (All Registrants)
Operating Revenues. The Registrants’ operating revenues generally consist of revenues from contracts with customers involving the sale and delivery of power and natural gas and utility revenues from ARPs. The Registrants recognize revenue from contracts with customers to depict the transfer of goods or services to customers in an amount that the entities expect to be entitled to in exchange for those goods or services. The primary sources of revenue include regulated electric and natural gas tariff sales, distribution, and transmission services. At the end of each month, the Registrants accrue an estimate for the unbilled amount of energy delivered or services provided to customers.
ComEd records ARP revenue for its best estimate of the electric distribution, energy efficiency, distributed generation rebates, and transmission revenue impacts resulting from future changes in rates that ComEd believes are probable of approval by the ICC and FERC in accordance with its distribution multi-year rate plan, distribution revenue decoupling mechanisms, and formula rate mechanisms. BGE, Pepco, DPL, and ACE record ARP revenue for their best estimate of the electric and natural gas distribution revenue impacts resulting from future changes in rates that they believe are probable of approval by the MDPSC, DCPSC, and/or NJBPU in accordance with their revenue decoupling mechanisms. PECO, BGE, Pepco, DPL, and ACE record ARP revenue for their best estimate of the transmission revenue impacts resulting from future changes in rates that they believe are probable of approval by FERC in accordance with their formula rate mechanisms. The Registrants recognize all ARP revenues that will be collected within 24 months of the end of the annual period in which they are recorded. See Note 2 — Regulatory Matters for additional information.
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Combined Notes to Consolidated Financial Statements
(Dollars in millions, except per share data unless otherwise noted)

Note 1 — Significant Accounting Policies