EX-99.1

EX-99.1 2 d43411dex991.htm EX-99.1 EX-99.1

Exhibit 99.1


Contact:		Francis Idehen
		Investor Relations
		312-394-3967

		Paul Adams
		Corporate Communications
		410-470-4167

EXELON ANNOUNCES SECOND QUARTER 2015 RESULTS

CHICAGO (Jul. 29, 2015) — Exelon Corporation (NYSE: EXC) announced second quarter 2015 consolidated earnings as follows:


	Second Quarter
	2015		2014
Adjusted (non-GAAP) Operating Results:
Net Income ($ millions)	$	508	$	440
Diluted Earnings per Share	$	0.59	$	0.51

GAAP Results:
Net Income ($ millions)	$	638	$	522
Diluted Earnings per Share	$	0.74	$	0.60

“All of our businesses continue to deliver best in class operations, benefiting our customers and shareholders,” said Christopher M. Crane, Exelon’s president and CEO. “Exelon achieved earnings above our guidance range this quarter led by strong financial performance at Constellation. Based on our results through June, we are narrowing our full-year operating earnings guidance to $2.35 to $2.55 per share.”

Second Quarter Operating Results

As shown in the table above, Exelon’s Adjusted (non-GAAP) Operating Earnings increased to $0.59 per share in the second quarter of 2015 from $0.51 per share in the second quarter of 2014. Earnings in the second quarter of 2015 primarily reflected the following favorable factors:

•

Higher revenue net of purchased power and fuel at Generation as a result of a reduction in the number of nuclear outage days, favorability from portfolio management optimization activities, the Integrys acquisition, and the cancellation of the Department of Energy spent nuclear fuel disposal fees;

•

Higher realized NDT fund investment gains at Generation;

•

Lower uncollectible accounts expense at BGE.

These factors were partially offset by:

•

Higher storm costs at PECO;

•

Unfavorable weather at ComEd;

•

Higher interest expense due to higher outstanding debt; and

•

Higher income tax expenses due to decreased domestic production activities deduction at Generation and decreased electric tax repair deductions at PECO.

Adjusted (non-GAAP) Operating Earnings for the second quarter of 2015 do not include the following items (after tax) that were included in reported GAAP Net Income:


	(in millions)			(per diluted share)
Exelon Adjusted (non-GAAP) Operating Earnings	$	508		$	0.59
Mark-to-Market Impact of Economic Hedging Activities		143			0.16
Unrealized Losses Related to NDT Fund Investments		(56	)		(0.06	)
Amortization of Commodity Contract Intangibles		(9	)		(0.01	)
Merger and Integration Costs		(18	)		(0.02	)
Mark-to-Market Impact of PHI Merger Related Interest Rate Swaps		71			0.08
Long-Lived Asset Impairment		(15	)		(0.02	)
CENG Non-Controlling Interest		14			0.02

Exelon GAAP Net Income	$	638		$	0.74

Adjusted (non-GAAP) Operating Earnings for the second quarter of 2014 do not include the following items (after tax) that were included in reported GAAP Net Income:


	(in millions)			(per diluted share)
Exelon Adjusted (non-GAAP) Operating Earnings	$	440		$	0.51
Mark-to-Market Impact of Economic Hedging Activities		(8	)		(0.01	)
Unrealized Gains Related to NDT Fund Investments		76			0.09
Merger and Integration Costs		(31	)		(0.03	)
Amortization of Commodity Contract Intangibles		(23	)		(0.03	)
Long-Lived Asset Impairments		(68	)		(0.08	)
Gain on CENG Integration		159			0.18
CENG Non-Controlling Interest		(23	)		(0.03	)

Exelon GAAP Net Income	$	522		$	0.60

Second Quarter and Recent Highlights

•

Pepco Holdings, Inc. Merger: On May 15, 2015, the Maryland Public Service Commission (MDPSC) approved the merger after modifying a number of the conditions in the settlements, including provisions for rate credits, funding for energy efficiency programs, establishing a green sustainability fund, renewable generation development, ring-fencing, financial reporting conditions and increased penalties related to reliability commitments. On May 18, 2015, Exelon and PHI accepted and committed to fulfill the conditions. On June 2, 2015, the Delaware Public Service Commission (DPSC) issued an order approving the merger between Exelon and PHI. On June 11, 2015, the Maryland Office of People’s Counsel (OPC), the Sierra Club, and the Chesapeake Climate Action Network filed their Petitions for Judicial Review of the MDPSC’s approval of the merger with the Circuit Court for Queen Anne’s County. On July 1, 2015, Public Citizen, Inc. filed its Petition for Judicial Review with the Circuit Court for Queen Anne’s County. On July 10, 2015, Exelon and PHI filed responses to the Petitions for Review. On July 21, 2015, the OPC filed a motion to stay the MDPSC order approving the merger and to set a schedule for discovery and presentation of new evidence. Exelon and PHI intend to vigorously oppose the motion. The merger continues to be conditioned upon approval by the Public Service Commission of the District of Columbia. Exelon and PHI expect the merger to be completed in the third quarter of 2015.

•

Nuclear Operations: Generation’s nuclear fleet, including its owned output from the Salem Generating Station and 100 percent of the CENG units, produced 43,805 gigawatt-hours (GWh) in the second quarter of 2015, compared with 41,397 GWh in the second quarter of 2014. Excluding Salem, the Exelon-operated nuclear plants at ownership achieved a 93.1 percent capacity factor for the second quarter of 2015, compared with 91.8 percent for the second quarter of 2014. The number of planned refueling outage days totaled 71 in the second quarter of 2015, compared with 108 in the second quarter of 2014. There were 18 non-refueling outage days in the second quarter of 2015, compared with 44 days in the second quarter of 2014.

•

Fossil and Renewable Operations: The Dispatch Match rate for Generation’s gas and hydro fleet was 99.2 percent in the second quarter of 2015, compared with 99.2 percent in the second quarter of 2014. Energy Capture for the wind and solar fleet was 96.1 percent in the second quarter of 2015, compared with 94.7 percent in the second quarter of 2014. Energy Capture performance improvement was attributed to enhancing reliability, quality assurance, and quality control programs.

•

Financing Activities:

•

On June 1, 2015, Generation completed remarketing of $435 million in aggregate principal amount of its tax-exempt pollution control revenue bonds. The net proceeds of the sale of the bonds will be used for general corporate purposes.

•

On June 11, 2015, Exelon issued $4.2 billion in aggregate principal amount of Senior Notes, consisting of $550 million of 1.550% Notes due 2017, $900 million of 2.850% Notes due 2020, $1.25 billion of 3.950% Notes due 2025, $500 million of 4.950% Notes due 2035 and $1.0 billion of 5.100% Notes due 2045. The net proceeds of the issuance will be used to finance a portion of the pending acquisition of PHI and related costs and expenses and for general corporate purposes.

•

On July 14, 2015, Exelon completed the settlement of its June 2014 equity offering through the issuance of 57.5 million shares of Exelon common stock. Exelon received net cash proceeds of $1.87 billion, which was calculated based on a forward price of $32.48 per share as specified in the forward sale agreements. Exelon will use the net proceeds to fund the pending acquisition of PHI and related costs and expenses and for general corporate purposes.

•

Hedging Update: Exelon’s hedging program involves the hedging of commodity risk for Exelon’s expected generation, typically on a ratable basis over a three-year period. Expected generation is the volume of energy that best represents our commodity position in energy markets from owned or contracted for capacity based upon a simulated dispatch model that makes assumptions regarding future market conditions, which are calibrated to market quotes for power, fuel, load following products, and options. The proportion of expected generation hedged as of June 30, 2015, was 98 percent to 101 percent for 2015, 77 percent to 80 percent for 2016, and 46 percent to 49 percent for 2017. The primary objective of Exelon’s hedging program is to manage market risks and protect the value of its generation and its investment-grade balance sheet, while preserving its ability to participate in improving long-term market fundamentals.

Operating Company Results

Generation consists of the generation, physical delivery and marketing of power across multiple geographical regions through its customer-facing business, Constellation, which sells electricity and natural gas to both wholesale and retail customers. Generation also sells renewable energy and other energy-related products and services, and engages in natural gas and oil exploration and production activities (Upstream).

Generation’s second quarter 2015 GAAP Net Income was $398 million, compared with net income of $340 million in the second quarter of 2014. Adjusted (non-GAAP) Operating Earnings for the second quarter of 2015 and 2014 do not include various items (after tax) that were included in reported GAAP Net Income:


($ millions)	2Q15			2Q14
Generation Adjusted (non-GAAP) Operating Earnings	$	309		$	231
Mark-to-Market Impact of Economic Hedging Activities		145			(8	)
Unrealized (Losses) Gains Related to NDT Fund Investments		(56	)		76
Amortization of Commodity Contract Intangibles		(9	)		(23	)
Merger and Integration Costs		(5	)		(19	)
Long-Lived Asset Impairments		—			(53	)
Gain on CENG Integration		—			159
CENG Non-Controlling Interest		14			(23	)

Generation GAAP Net Income	$	398		$	340

Generation’s Adjusted (non-GAAP) Operating Earnings in the second quarter of 2015 increased $78 million compared with the same quarter in 2014. This increase primarily reflected higher revenue net of purchased power and fuel as a result of a reduction in the number of nuclear outage days, favorability from portfolio management optimization activities, the Integrys acquisition, and the cancellation of the DOE spent nuclear fuel disposal fee; as well as higher realized NDT fund gains. These increases were partially offset by increased interest and income tax expenses.

ComEd consists of electricity transmission and distribution operations in Northern Illinois.

ComEd’s second quarter 2015 GAAP Net Income was $99 million, compared with net income of $111 million in the second quarter of 2014. Adjusted (non-GAAP) Operating Earnings for the second quarter of 2015 do not include merger and integration costs that were included in reported GAAP Net Income:


($ millions)	2Q15			2Q14
ComEd Adjusted (non-GAAP) Operating Earnings	$	101		$	111
Merger and Integration Costs		(2	)		—

ComEd GAAP Net Income	$	99		$	111

ComEd’s Adjusted (non-GAAP) Operating Earnings in the second quarter of 2015 decreased $10 million from the same quarter in 2014 primarily as a result of unfavorable weather offset by increased electric distribution earnings, reflecting the impacts of increased capital investment, partially offset by lower allowed return on common equity due to a decrease in treasury rates.

For the second quarter of 2015, heating degree-days in the ComEd service territory were down 1.3 percent relative to the same period in 2014 and were 10.3 percent below normal. Cooling degree days were down 34.0 percent from prior year and 21.6 percent below normal. Total retail electric deliveries decreased 3.8 percent in the second quarter of 2015 compared with the same period in 2014.

Weather-normalized retail electric deliveries decreased 1.2 percent in the second quarter of 2015 compared with the same period in 2014.

PECO consists of electricity transmission and distribution operations and retail natural gas distribution operations in Southeastern Pennsylvania.

PECO’s second quarter 2015 GAAP Net Income was $70 million, compared with net income of $84 million in the second quarter of 2014. Adjusted (non-GAAP) Operating Earnings for the second quarter of 2015 do not include merger and integration costs that were included in reported GAAP Net Income:


($ millions)	2Q15			2Q14
PECO Adjusted (non-GAAP) Operating Earnings	$	71		$	84
Merger and Integration Costs		(1	)		—

PECO GAAP Net Income	$	70		$	84

PECO’s Adjusted (non-GAAP) Operating Earnings in the second quarter of 2015 decreased $13 million from the same quarter in 2014 primarily due to increased storm costs.

For the second quarter of 2015, heating degree-days in the PECO service territory were down 16.0 percent relative to the same period in 2014 and were 29.2 percent below normal. Cooling degree days were up 36.8 percent from the prior year and 47.4 percent above normal. Total retail electric deliveries were up 2.7 percent compared with the second quarter of 2014. Natural gas deliveries (including both retail and transportation segments) in the second quarter of 2015 were down 5.7 percent compared with the same period in 2014.

Weather-normalized retail electric and gas deliveries decreased 0.7 percent and increased 1.6 percent, respectively, in the second quarter of 2015 compared with the same period in 2014.

BGE consists of electricity transmission and distribution operations and retail natural gas distribution operations in Central Maryland.

BGE’s second quarter 2015 GAAP Net Income was $44 million, compared with net income of $16 million in the second quarter of 2014. Adjusted (non-GAAP) Operating Earnings for the second quarter of 2015 do not include merger and integration costs that were included in reported GAAP Net Income:


($ millions)	2Q15			2Q14
BGE Adjusted (non-GAAP) Operating Earnings	$	45		$	16
Merger and Integration Costs		(1	)		—

BGE GAAP Net Income	$	44		$	16

BGE’s Adjusted (non-GAAP) Operating Earnings in the second quarter of 2015 increased $29 million from the same quarter in 2014, primarily due to decreased uncollectible accounts expense and increased distribution revenues pursuant to increased rates effective in December 2014. Due to decoupling, BGE’s distribution revenues are not affected by actual weather.

Adjusted (non-GAAP) Operating Earnings

Adjusted (non-GAAP) operating earnings, which generally exclude significant one-time charges or credits that are not normally associated with ongoing operations, mark-to-market adjustments from economic hedging activities and unrealized gains and losses from NDT fund investments, are provided as a supplement to results reported in accordance with GAAP. Management uses such adjusted (non-GAAP) operating earnings measures internally to evaluate the company’s performance and manage its operations. Reconciliation of GAAP Net Income to adjusted (non-GAAP) operating earnings for historical periods is attached. Additional earnings release attachments, which include the reconciliation on page 8, are posted on Exelon’s Web site: www.exeloncorp.com and have been furnished to the Securities and Exchange Commission on Form 8-K on July 29, 2015.

Cautionary Statements Regarding Forward-Looking Information

This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, that are subject to risks and uncertainties. The factors that could cause actual results to differ materially from the forward-looking statements made by Exelon Corporation, Commonwealth Edison Company, PECO Energy Company, Baltimore Gas and Electric Company and Exelon Generation Company, LLC (Registrants) include those factors discussed herein, as well as the items discussed in (1) Exelon’s 2014 Annual Report on Form 10-K in (a) ITEM 1A. Risk Factors, (b) ITEM 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations and (c) ITEM 8. Financial Statements and Supplementary Data: Note 22; (2) Exelon’s Second Quarter 2015 Quarterly Report on Form 10-Q (to be filed on July 29, 2015) in (a) Part II, Other Information, ITEM 1A. Risk Factors; (b) Part 1, Financial Information, ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations and (c) Part I, Financial Information, ITEM 1. Financial Statements: Note 19; and (3) other factors discussed in filings with the SEC by the Registrants. Readers are cautioned not to place undue reliance on these forward-looking statements, which apply only as of the date of this press release. None of the Registrants undertakes any obligation to publicly release any revision to its forward-looking statements to reflect events or circumstances after the date of this press release.

# # #

Exelon Corporation (NYSE: EXC) is the nation’s leading competitive energy provider, with 2014 revenues of approximately $27.4 billion. Headquartered in Chicago, Exelon does business in 48 states, the District of Columbia and Canada. Exelon is one of the largest competitive U.S. power generators, with more than 32,000 megawatts of owned capacity comprising one of the nation’s cleanest and lowest-cost power generation fleets. The company’s Constellation business unit provides energy products and services to more than 2.5 million residential, public sector and business customers, including more than two-thirds of the Fortune 100. Exelon’s utilities deliver electricity and natural gas to more than 7.8 million customers in central Maryland (BGE), northern Illinois (ComEd) and southeastern Pennsylvania (PECO). Follow Exelon on Twitter @Exelon.

Earnings Release Attachments

Table of Contents


Consolidating Statements of Operations - Six Months Ended June 30, 2015 and 2014			2

Business Segment Comparative Statements of Operations - Generation and ComEd - Three and Six months ended June 30, 2015 and 2014			3

Business Segment Comparative Statements of Operations - PECO and BGE - Three and Six months ended June 30, 2015 and 2014			4

Business Segment Comparative Statements of Operations - Other - Three and Six months ended June 30, 2015 and 2014			5

Consolidated Balance Sheets - June 30, 2015 and December 31, 2014			6

Consolidated Statements of Cash Flows - Six Months Ended June 30, 2015 and 2014			7

Reconciliation of Adjusted (non-GAAP) Operating Earnings to GAAP Consolidated Statements of Operations - Exelon - Three Months Ended June 30, 2015 and 2014			8

Reconciliation of Adjusted (non-GAAP) Operating Earnings to GAAP Consolidated Statements of Operations - Exelon - Six Months Ended June 30, 2015 and 2014			9

Reconciliation of Adjusted (non-GAAP) Operating Earnings to GAAP Earnings By Business Segment - Three Months Ended June 30, 2015 and 2014			11

Reconciliation of Adjusted (non-GAAP) Operating Earnings to GAAP Earnings By Business Segment - Six Months Ended June 30, 2015 and 2014			13

Reconciliation of Adjusted (non-GAAP) Operating Earnings to GAAP Consolidated Statements of Operations - Generation - Three and Six months ended June 30, 2015 and 2014			15

Reconciliation of Adjusted (non-GAAP) Operating Earnings to GAAP Consolidated Statements of Operations - ComEd - Three and Six months ended June 30, 2015 and 2014			17

Reconciliation of Adjusted (non-GAAP) Operating Earnings to GAAP Consolidated Statements of Operations - PECO - Three and Six months ended June 30, 2015 and 2014			18

Reconciliation of Adjusted (non-GAAP) Operating Earnings to GAAP Consolidated Statements of Operations - BGE - Three and Six months ended June 30, 2015 and 2014			19

Reconciliation of Adjusted (non-GAAP) Operating Earnings to GAAP Consolidated Statements of Operations - Other - Three and Six months ended June 30, 2015 and 2014			20

Exelon Generation Statistics - Three Months Ended June 30, 2015, March 31, 2015, December 31, 2014, September 30, 2014 and June 30, 2014			21

Exelon Generation Statistics - Six Months Ended June 30, 2015 and 2014			22

ComEd Statistics - Three and Six months ended June 30, 2015 and 2014			23

PECO Statistics - Three and Six months ended June 30, 2015 and 2014			24

BGE Statistics - Three and Six months ended June 30, 2015 and 2014			26

EXELON CORPORATION

Consolidating Statements of Operations

(unaudited)

(in millions)


	Three Months Ended June 30, 2015
																Exelon
	Generation			ComEd			PECO			BGE			Other (a)			Consolidated
Operating revenues	$	4,232		$	1,148		$	661		$	628		$	(155	)	$	6,514
Operating expenses
Purchased power and fuel		1,849			275			237			239			(151	)		2,449
Operating and maintenance		1,308			384			192			149			9			2,042
Depreciation and amortization		255			177			69			87			14			602
Taxes other than income		124			69			39			54			8			294

Total operating expenses		3,536			905			537			529			(120	)		5,387
Gain on sale of assets		7			—			—			—			—			7

Operating income (loss)		703			243			124			99			(35	)		1,134

Other income and (deductions)
Interest expense, net		(99	)		(81	)		(28	)		(24	)		77			(155	)
Other, net		(31	)		5			1			4			4			(17	)

Total other income and (deductions)		(130	)		(76	)		(27	)		(20	)		81			(172	)

Income before income taxes		573			167			97			79			46			962
Income taxes		181			68			27			32			19			327
Equity in losses of unconsolidated affiliates		(2	)		—			—			—			—			(2	)

Net income		390			99			70			47			27			633

Net (loss) income attributable to noncontrolling interests and preference stock dividends		(8	)		—			—			3			—			(5	)

Net income attributable to common shareholders	$	398		$	99		$	70		$	44		$	27		$	638


	Three Months Ended June 30, 2014
																Exelon
	Generation			ComEd			PECO			BGE			Other (a)			Consolidated
Operating revenues	$	3,789		$	1,128		$	656		$	653		$	(202	)	$	6,024
Operating expenses
Purchased power and fuel		1,835			269			241			268			(201	)		2,412
Operating and maintenance		1,413			355			184			188			26			2,166
Depreciation and amortization		254			174			59			89			14			590
Taxes other than income		118			72			38			53			7			288

Total operating expenses		3,620			870			522			598			(154	)		5,456
Equity in (losses) earnings of unconsolidated affiliates		(1	)		—			—			—			1			—
Gain on sale of assets		12			—			—			—			1			13
Gain on consolidation and acquisition of businesses		261			—			—			—			—			261

Operating income (loss)		441			258			134			55			(46	)		842

Other income and (deductions)
Interest expense, net		(86	)		(80	)		(28	)		(27	)		(17	)		(238	)
Other, net		216			5			1			5			3			230

Total other income and (deductions)		130			(75	)		(27	)		(22	)		(14	)		(8	)

Income (loss) before income taxes		571			183			107			33			(60	)		834
Income taxes		199			72			23			14			(31	)		277

Net income (loss)		372			111			84			19			(29	)		557

Net income attributable to noncontrolling interests, preferred security dividends and preference stock dividends		32			—			—			3			—			35

Net income (loss) attributable to common shareholders	$	340		$	111		$	84		$	16		$	(29	)	$	522

(a)	Other primarily includes eliminating and consolidating adjustments, Exelon’s corporate operations, shared service entities and other financing and investment activities.

EXELON CORPORATION

Consolidating Statements of Operations

(unaudited)

(in millions)


	Six Months Ended June 30, 2015 (a)
	Generation			ComEd			PECO			BGE			Other (b)			Exelon Consolidated
Operating revenues	$	10,074		$	2,333		$	1,646		$	1,664		$	(372	)	$	15,345
Operating expenses
Purchased power and fuel		5,282			601			675			726			(365	)		6,919
Operating and maintenance		2,619			762			414			331			(3	)		4,123
Depreciation and amortization		509			352			131			192			28			1,212
Taxes other than income		246			146			80			111			15			598

Total operating expenses		8,656			1,861			1,300			1,360			(325	)		12,852
Gain on sales of assets		6			—			1			—			1			8

Operating income (loss)		1,424			472			347			304			(46	)		2,501

Other income and (deductions)
Interest expense, net		(201	)		(165	)		(56	)		(50	)		(29	)		(501	)
Other, net		62			9			3			8			(18	)		64

Total other income and (deductions)		(139	)		(156	)		(53	)		(42	)		(47	)		(437	)

Income (loss) before income taxes		1,285			316			294			262			(93	)		2,064
Income taxes		407			127			85			105			(34	)		690
Equity in (losses) earnings of unconsolidated affiliates		(3	)		—			—			—			1			(2	)

Net income (loss)		875			189			209			157			(58	)		1,372

Net income attributable to noncontrolling interests and preference stock dividends		34			—			—			6			1			41

Net income (loss) attributable to common shareholders	$	841		$	189		$	209		$	151		$	(59	)	$	1,331


	Six Months Ended June 30, 2014 (a)
	Generation			ComEd			PECO			BGE			Other (b)			Exelon Consolidated
Operating revenues	$	8,179		$	2,262		$	1,649		$	1,707		$	(536	)	$	13,261
Operating expenses
Purchased power and fuel		5,191			589			705			797			(530	)		6,752
Operating and maintenance		2,499			681			464			376			4			4,024
Depreciation and amortization		466			347			117			197			27			1,154
Taxes other than income		223			149			80			113			15			580

Total operating expenses		8,379			1,766			1,366			1,483			(484	)		12,510
Equity in losses of unconsolidated affiliates		(20	)		—			—			—			—			(20	)
Gain on sales of assets		18			—			—			—			—			18
Gain on consolidation and acquisition of businesses		261			—			—			—			—			261

Operating income (loss)		59			496			283			224			(52	)		1,010

Other income and (deductions)
Interest expense, net		(172	)		(160	)		(56	)		(55	)		(22	)		(465	)
Other, net		300			10			3			9			8			330

Total other income and (deductions)		128			(150	)		(53	)		(46	)		(14	)		(135	)

Income (loss) before income taxes		187			346			230			178			(66	)		875
Income taxes		(1	)		137			57			72			(41	)		224

Net income (loss)		188			209			173			106			(25	)		651

Net income attributable to preference stock dividends		33			—			—			6			—			39

Net income (loss) attributable to common shareholders	$	155		$	209		$	173		$	100		$	(25	)	$	612

(a)	In 2014, includes the results of operations of Constellation Energy Nuclear Group, LLC (CENG) beginning April 1, 2014, the date the nuclear operating services agreement was executed. In 2015, includes the results of operations of CENG on a fully consolidated basis.

(b)	Other primarily includes eliminating and consolidating adjustments, Exelon’s corporate operations, shared service entities and other financing and investment activities.

EXELON CORPORATION

Business Segment Comparative Statements of Operations

(unaudited)

(in millions)


	Generation
	Three Months Ended June 30,									Six Months Ended June 30,
	2015			2014			Variance			2015 (a)			2014 (a)			Variance
Operating revenues	$	4,232		$	3,789		$	443		$	10,074		$	8,179		$	1,895
Operating expenses
Purchased power and fuel		1,849			1,835			14			5,282			5,191			91
Operating and maintenance		1,308			1,413			(105	)		2,619			2,499			120
Depreciation and amortization		255			254			1			509			466			43
Taxes other than income		124			118			6			246			223			23

Total operating expenses		3,536			3,620			(84	)		8,656			8,379			277
Equity in losses of unconsolidated affiliates		—			(1	)		1			—			(20	)		20
Gain on sales of assets		7			12			(5	)		6			18			(12	)
Gain on consolidation and acquisition of businesses		—			261			(261	)		—			261			(261	)

Operating income		703			441			262			1,424			59			1,365

Other income and (deductions)
Interest expense		(99	)		(86	)		(13	)		(201	)		(172	)		(29	)
Other, net		(31	)		216			(247	)		62			300			(238	)

Total other income and (deductions)		(130	)		130			(260	)		(139	)		128			(267	)

Income before income taxes		573			571			2			1,285			187			1,098
Income taxes		181			199			(18	)		407			(1	)		408
Equity in losses of unconsolidated affiliates		(2	)		—			(2	)		(3	)		—			(3	)

Net income		390			372			18			875			188			687

Net (loss) income attributable to noncontrolling interests		(8	)		32			(40	)		34			33			1

Net income attributable to membership interest	$	398		$	340		$	58		$	841		$	155		$	686


	ComEd
	Three Months Ended June 30,									Six Months Ended June 30,
	2015			2014			Variance			2015			2014			Variance
Operating revenues	$	1,148		$	1,128		$	20		$	2,333		$	2,262		$	71
Operating expenses
Purchased power		275			269			6			601			589			12
Operating and maintenance		384			355			29			762			681			81
Depreciation and amortization		177			174			3			352			347			5
Taxes other than income		69			72			(3	)		146			149			(3	)

Total operating expenses		905			870			35			1,861			1,766			95

Operating income		243			258			(15	)		472			496			(24	)

Other income and (deductions)
Interest expense, net		(81	)		(80	)		(1	)		(165	)		(160	)		(5	)
Other, net		5			5			—			9			10			(1	)

Total other income and (deductions)		(76	)		(75	)		(1	)		(156	)		(150	)		(6	)

Income before income taxes		167			183			(16	)		316			346			(30	)
Income taxes		68			72			(4	)		127			137			(10	)

Net income	$	99		$	111		$	(12	)	$	189		$	209		$	(20	)

(a)	Includes the results of operations of CENG beginning April 1, 2014, the date the nuclear operating services agreement was executed.

EXELON CORPORATION

Business Segment Comparative Statements of Operations

(unaudited)

(in millions)


	PECO
	Three Months Ended June 30,									Six Months Ended June 30,
	2015			2014			Variance			2015			2014			Variance
Operating revenues	$	661		$	656		$	5		$	1,646		$	1,649		$	(3	)
Operating expenses
Purchased power and fuel		237			241			(4	)		675			705			(30	)
Operating and maintenance		192			184			8			414			464			(50	)
Depreciation and amortization		69			59			10			131			117			14
Taxes other than income		39			38			1			80			80			—

Total operating expenses		537			522			15			1,300			1,366			(66	)

Gain on sales of assets		—			—			—			1			—			1

Operating income		124			134			(10	)		347			283			64

Other income and (deductions)
Interest expense, net		(28	)		(28	)		—			(56	)		(56	)		—
Other, net		1			1			—			3			3			—

Total other income and (deductions)		(27	)		(27	)		—			(53	)		(53	)		—

Income before income taxes		97			107			(10	)		294			230			64
Income taxes		27			23			4			85			57			28

Net income attributable to common shareholder	$	70		$	84		$	(14	)	$	209		$	173		$	36


	BGE
	Three Months Ended June 30,									Six Months Ended June 30,
	2015			2014			Variance			2015			2014			Variance
Operating revenues	$	628		$	653		$	(25	)	$	1,664		$	1,707		$	(43	)
Operating expenses
Purchased power and fuel		239			268			(29	)		726			797			(71	)
Operating and maintenance		149			188			(39	)		331			376			(45	)
Depreciation and amortization		87			89			(2	)		192			197			(5	)
Taxes other than income		54			53			1			111			113			(2	)

Total operating expenses		529			598			(69	)		1,360			1,483			(123	)

Operating income		99			55			44			304			224			80

Other income and (deductions)
Interest expense, net		(24	)		(27	)		3			(50	)		(55	)		5
Other, net		4			5			(1	)		8			9			(1	)

Total other income and (deductions)		(20	)		(22	)		2			(42	)		(46	)		4

Income before income taxes		79			33			46			262			178			84
Income taxes		32			14			18			105			72			33

Net income		47			19			28			157			106			51
Preference stock dividends		3			3			—			6			6			—

Net income attributable to common shareholders	$	44		$	16		$	28		$	151		$	100		$	51

EXELON CORPORATION

Business Segment Comparative Statements of Operations

(unaudited)

(in millions)


	Other (a)
	Three Months Ended June 30,									Six Months Ended June 30,
	2015			2014			Variance			2015			2014			Variance
Operating revenues	$	(155	)	$	(202	)	$	47		$	(372	)	$	(536	)	$	164
Operating expenses
Purchased power and fuel		(151	)		(201	)		50			(365	)		(530	)		165
Operating and maintenance		9			26			(17	)		(3	)		4			(7	)
Depreciation and amortization		14			14			—			28			27			1
Taxes other than income		8			7			1			15			15			—

Total operating expenses		(120	)		(154	)		34			(325	)		(484	)		159
Equity in earnings of unconsolidated affiliates		—			1			(1	)		—			—			—
Gain on sales of assets		—			1			(1	)		1			—			1

Operating loss		(35	)		(46	)		11			(46	)		(52	)		6

Other income and (deductions)
Interest expense		77			(17	)		94			(29	)		(22	)		(7	)
Other, net		4			3			1			(18	)		8			(26	)

Total other income and (deductions)		81			(14	)		95			(47	)		(14	)		(33	)

Net income (loss) before income taxes		46			(60	)		106			(93	)		(66	)		(27	)
Income taxes		19			(31	)		50			(34	)		(41	)		7
Equity in earnings of unconsolidated affiliates		—			—			—			1			—			1

Net income (loss)		27			(29	)		56			(58	)		(25	)		(33	)
Net income attributable to noncontrolling interests and preference stock dividends		—			—			—			1			—			1

Net income (loss) attributable to common shareholders	$	27		$	(29	)	$	56		$	(59	)	$	(25	)	$	(34	)

(a)	Other primarily includes eliminating and consolidating adjustments, Exelon’s corporate operations, shared service entities and other financing and investment activities.

EXELON CORPORATION

Consolidated Balance Sheets

(in millions)


	June 30, 2015			December 31, 2014
	(unaudited)
Assets
Current assets
Cash and cash equivalents	$	6,014		$	1,878
Restricted cash and cash equivalents		274			271
Accounts receivable, net
Customer		3,227			3,482
Other		1,304			1,227
Mark-to-market derivative assets		1,405			1,279
Unamortized energy contract assets		156			254
Inventories, net
Fossil fuel and emission allowances		364			579
Materials and supplies		1,068			1,024
Deferred income taxes		173			244
Regulatory assets		785			847
Assets held for sale		1			147
Other		654			865

Total current assets		15,425			12,097

Property, plant and equipment, net		53,935			52,087
Deferred debits and other assets
Regulatory assets		5,976			6,076
Nuclear decommissioning trust funds		10,607			10,537
Investments		607			544
Goodwill		2,672			2,672
Mark-to-market derivative assets		811			773
Deferred income taxes		2			—
Unamortized energy contracts assets		526			549
Pledged assets for Zion Station decommissioning		264			319
Other		1,388			1,160

Total deferred debits and other assets		22,853			22,630

Total assets	$	92,213		$	86,814

Liabilities and shareholders’ equity
Current liabilities
Short-term borrowings	$	543		$	460
Long-term debt due within one year		226			1,802
Accounts payable		2,727			3,048
Accrued expenses		1,366			1,539
Payables to affiliates		8			8
Regulatory liabilities		409			310
Mark-to-market derivative liabilities		165			234
Unamortized energy contract liabilities		141			238
Other		941			1,123

Total current liabilities		6,526			8,762

Long-term debt		25,220			19,362
Long-term debt to financing trusts		648			648
Deferred credits and other liabilities
Deferred income taxes and unamortized investment tax credits		13,309			13,019
Asset retirement obligations		7,550			7,295
Pension obligations		3,134			3,366
Non-pension postretirement benefit obligations		1,850			1,742
Spent nuclear fuel obligation		1,021			1,021
Regulatory liabilities		4,462			4,550
Mark-to-market derivative liabilities		595			403
Unamortized energy contract liabilities		166			211
Payable for Zion Station decommissioning		135			155
Other		2,528			2,147

Total deferred credits and other liabilities		34,750			33,909

Total liabilities		67,144			62,681

Commitments and contingencies
Shareholders’ equity
Common stock		16,755			16,709
Treasury stock, at cost		(2,327	)		(2,327	)
Retained earnings		11,704			10,910
Accumulated other comprehensive loss, net		(2,626	)		(2,684	)

Total shareholders’ equity		23,506			22,608
BGE preference stock not subject to mandatory redemption		193			193
Noncontrolling interest		1,370			1,332

Total equity		25,069			24,133

Total liabilities and shareholders’ equity	$	92,213		$	86,814

EXELON CORPORATION

Consolidated Statements of Cash Flows

(unaudited)

(in millions)


	Six Months Ended June 30,
	2015			2014
Cash flows from operating activities
Net income	$	1,372		$	651
Adjustments to reconcile net income to net cash flows provided by operating activities:
Depreciation, amortization, depletion and accretion, including nuclear fuel and energy contract amortization		1,957			1,925
Impairment of long-lived assets		24			112
Gain on consolidation and acquisition of businesses		—			(268	)
Gain on sales of assets		(8	)		(18	)
Deferred income taxes and amortization of investment tax credits		211			133
Net fair value changes related to derivatives		(507	)		751
Net realized and unrealized gains on nuclear decommissioning trust fund investments		(2	)		(168	)
Other non-cash operating activities		579			473
Changes in assets and liabilities:
Accounts receivable		253			48
Inventories		159			(150	)
Accounts payable, accrued expenses and other current liabilities		(668	)		(358	)
Option premiums received, net		22			21
Counterparty collateral received (posted), net		417			(606	)
Income taxes		247			(16	)
Pension and non-pension postretirement benefit contributions		(301	)		(499	)
Other assets and liabilities		214			(280	)

Net cash flows provided by operating activities		3,969			1,751

Cash flows from investing activities
Capital expenditures		(3,460	)		(2,501	)
Proceeds from nuclear decommissioning trust fund sales		3,314			4,219
Investment in nuclear decommissioning trust funds		(3,437	)		(4,238	)
Acquisition of businesses		(28	)		(66	)
Proceeds from sale of long-lived assets		145			32
Proceeds from termination of direct financing lease investment		—			335
Cash and restricted cash acquired from consolidations and acquisitions		—			129
Change in restricted cash		(3	)		(40	)
Other investing activities		(77	)		(57	)

Net cash flows used in investing activities		(3,546	)		(2,187	)

Cash flows from financing activities
Changes in short-term borrowings		94			293
Issuance of long-term debt		5,907			2,100
Retirement of long-term debt		(1,708	)		(1,191	)
Distributions to noncontrolling interest of consolidated VIE		—			(415	)
Dividends paid on common stock		(537	)		(533	)
Proceeds from employee stock plans		16			18
Other financing activities		(59	)		(83	)

Net cash flows provided by financing activities		3,713			189

Increase (decrease) in cash and cash equivalents		4,136			(247	)
Cash and cash equivalents at beginning of period		1,878			1,609

Cash and cash equivalents at end of period	$	6,014		$	1,362

EXELON CORPORATION

Reconciliation of Adjusted (non-GAAP) Operating Earnings to

GAAP Consolidated Statements of Operations

(unaudited)

(in millions, except per share data)


	Three Months Ended June 30, 2015									Three Months Ended June 30, 2014
							Adjusted									Adjusted
	GAAP (a)			Adjustments			Non-GAAP			GAAP (a)			Adjustments			Non-GAAP
Operating revenues	$	6,514		$	(7	)(b),(c)	$	6,507		$	6,024		$	170	(b),(c)	$	6,194
Operating expenses
Purchased power and fuel		2,449			214	(b),(c)		2,663			2,412			108	(b),(c)		2,520
Operating and maintenance		2,042			(41	)(d),(e)		2,001			2,166			(137	)(d),(e)		2,029
Depreciation and amortization		602			—			602			590			—			590
Taxes other than income		294			—			294			288			—			288

Total operating expenses		5,387			173			5,560			5,456			(29	)		5,427
Gain on sale of assets		7			—			7			13			—			13
Gain on consolidation and acquisition of businesses		—			—			—			261			(261	)(i)		—

Operating income		1,134			(180	)		954			842			(62	)		780

Other income and (deductions)
Interest expense		(155	)		(104	)(d),(f)		(259	)		(238	)		8	(d)		(230	)
Other, net		(17	)		127	(g)		110			230			(162	)(g)		68

Total other income and (deductions)		(172	)		23			(149	)		(8	)		(154	)		(162	)

Income before income taxes		962			(157	)		805			834			(216	)		618
Income taxes		327			(41	(b),(c),(d), )(e),(f),(g)		286			277			(111	(b),(c),(d), )(e),(i),(g)		166
Equity in losses of unconsolidated affiliates		(2	)		—			(2	)		—			—			—

Net income		633			(116	)		517			557			(105	)		452
Net income (loss) attributable to noncontrolling interests and preference stock dividends		(5	)		14	(h)		9			35			(23	)(h)		12

Net income attributable to common shareholders	$	638		$	(130	)	$	508		$	522		$	(82	)	$	440

Effective tax rate		34.0	%					35.5	%		33.2	%					26.9	%
Earnings per average common share
Basic	$	0.74		$	(0.15	)	$	0.59		$	0.61		$	(0.10	)	$	0.51
Diluted	$	0.74		$	(0.15	)	$	0.59		$	0.60		$	(0.09	)	$	0.51

Average common shares outstanding
Basic		863						863			860						860
Diluted		866						866			864						864
Effect of adjustments on earnings per average diluted common share recorded in accordance with GAAP:
Mark-to-market impact of economic hedging activities (b)				$	(0.16	)							$	0.01
Amortization of commodity contract intangibles (c)					0.01									0.03
Merger and integration costs (d)					0.02									0.03
Long-lived asset impairment (e)					0.02									0.08
Mark-to-market impact of PHI merger related interest rate swaps (f)					(0.08	)								—
Unrealized losses (gains) related to NDT fund investments (g)					0.06									(0.09	)
CENG Non-controlling interest (h)					(0.02	)								0.03
Gain on CENG integration (i)					—									(0.18	)

Total adjustments				$	(0.15	)							$	(0.09	)

(a)	Results reported in accordance with accounting principles generally accepted in the United States (GAAP).

(b)	Adjustment to exclude the mark-to-market impact of Exelon’s economic hedging activities, net of intercompany eliminations.

(c)	Adjustment to exclude the non-cash amortization of intangible assets, net, related to commodity contracts recorded at fair value, if and when applicable, related to the Constellation merger, the CENG integration and the Integrys acquisition.

(d)

Adjustment to exclude certain costs associated with the Constellation merger, pending PHI acquisition, and at Generation, the CENG integration and Integrys acquisition, including, if and when applicable, professional fees, employee-related expenses, integration activities, upfront credit facilities fees, merger commitments, and certain pre-acquisition contingencies.

(e)	Adjustment to exclude a 2015 and 2014 charge to earnings related to the impairment of investments in long-term leases and a 2014 charge to earnings related to the impairment of certain wind generating assets.

(f)	Adjustment to exclude the mark-to-market impact of Exelon Corporate’s forward-starting interest rate swaps related to financing for the pending PHI acquisition.

(g)	Adjustment to exclude the unrealized gains and losses on NDT fund investments to the extent not offset by contractual accounting as described in the notes to the consolidated financial statements.

(h)

Adjustment to account for Generation’s non-controlling interest related to CENG exclusion items, primarily related to the impact of unrealized gains and losses on NDT fund investments in 2015, and in 2014 the impact of unrealized gains and losses on NDT fund investments, certain merger and acquisition costs, and non-cash amortization of intangible assets, net, related to commodity contracts.

(i)	Adjustment to exclude the gain recorded upon consolidation of CENG resulting from the difference in the fair value of CENG’s net assets and the equity method investment previously recorded on Generation’s and Exelon’s books and the settlement of pre-existing commitments between Generation and CENG.

EXELON CORPORATION

Reconciliation of Adjusted (non-GAAP) Operating Earnings to

GAAP Consolidated Statements of Operations

(unaudited)

(in millions, except per share data)


	Six Months Ended June 30, 2015									Six Months Ended June 30, 2014
							Adjusted									Adjusted
	GAAP (a)			Adjustments			Non-GAAP			GAAP (a)			Adjustments			Non-GAAP
Operating revenues	$	15,345		$	(201	)(b),(c)	$	15,144		$	13,261		$	1,020	(b),(c),(d)	$	14,281
Operating expenses
Purchased power and fuel		6,919			220	(b),(c)		7,139			6,752			187	(b),(c)		6,939
Operating and maintenance		4,123			(53	)(d),(e),(f)		4,070			4,024			(149	)(d),(f)		3,875
Depreciation and amortization		1,212			—			1,212			1,154			—			1,154
Taxes other than income		598			—			598			580			—			580

Total operating expenses		12,852			167			13,019			12,510			38			12,548
Equity in losses of unconsolidated affiliates		—			—			—			(20	)		12	(c),(d)		(8	)
Gain on sales of assets		8			—			8			18			—			18
Gain on consolidation of CENG		—			—			—			261			(261	)(j)		—

Operating income		2,501			(368	)		2,133			1,010			733			1,743

Other income and (deductions)
Interest expense, net		(501	)		(15	)(d),(g)		(516	)		(465	)		8	(d)		(457	)
Other, net		64			78	(h)		142			330			(205	)(h),(k)		125

Total other income and (deductions)		(437	)		63			(374	)		(135	)		(197	)		(332	)

Income before income taxes		2,064			(305	)		1,759			875			536			1,411
						(b),(c),(d),
						(e),(f),(g),									(b),(c),(d),
Income taxes		690			(104	)(h)		586			224			201	(f),(h),(j),(k)		425
Equity in losses of unconsolidated affiliates		(2	)		—			(2	)		—			—			—

Net income		1,372			(201	)		1,171			651			335			986
Net income attributable to noncontrolling interests, preferred security dividends and redemption and preference stock dividends		41			7	(i)		48			39			(23	)(i)		16

Net income attributable to common shareholders	$	1,331		$	(208	)	$	1,123		$	612		$	358		$	970

Effective tax rate		33.4	%					33.3	%		25.6	%					30.1	%
Earnings per average common share
Basic	$	1.54		$	(0.24	)	$	1.30		$	0.71		$	0.42		$	1.13
Diluted	$	1.54		$	(0.24	)	$	1.30		$	0.71		$	0.41		$	1.12

Average common shares outstanding
Basic		862						862			860						860
Diluted		866						866			863						863
Effect of adjustments on earnings per average diluted common share recorded in accordance with GAAP:
Mark-to-market impact of economic hedging activities (b)				$	(0.27	)							$	0.52
Amortization of commodity contract intangibles (c)					(0.02	)								0.06
Merger and integration costs (d)					0.04									0.04
Long-lived asset impairment (e)					0.02									0.08
Midwest Generation bankruptcy recoveries (f)					(0.01	)								—
Mark-to-market impact of PHI merger related interest rate swaps (g)					(0.03	)								—
Unrealized gains related to NDT fund investments (h)					0.04									(0.10	)
CENG Non-controlling interest (i)					(0.01	)								0.03
Gain on CENG integration (j)					—									(0.18	)
Tax settlement (k)					—									(0.04	)

Total adjustments				$	(0.24	)								0.41

Note: For the six months ended June 30, 2014, includes the results of operations of CENG beginning April 1, 2014, the date the nuclear operating services agreement was executed.

(a)	Results reported in accordance with GAAP.

(b)	Adjustment to exclude the mark-to-market impact of Exelon’s economic hedging activities, net of intercompany eliminations.

(c)	Adjustment to exclude the non-cash amortization of intangible assets, net, related to commodity contracts recorded at fair value, if and when applicable, related to the Constellation merger, the CENG integration and the Integrys acquisition.

(d)

(e)	Adjustment to exclude a 2015 and 2014 charge to earnings related to the impairment of investments in long-term leases and a 2014 charge to earnings related to the impairment of certain wind generating assets.

(f)	Adjustment to reflect a benefit related to the favorable settlement of a long-term railcar lease agreement pursuant to the Midwest Generation bankruptcy.

(g)	Adjustment to exclude the mark-to-market impact of Exelon Corporate’s forward-starting interest rate swaps related to financing for the pending PHI acquisition.

(h)	Adjustment to exclude the unrealized gains on NDT fund investments to the extent not offset by contractual accounting as described in the notes to the consolidated financial statements.

(i)

(j)	Adjustment to exclude the gain recorded upon consolidation of CENG resulting from the difference in the fair value of CENG’s net assets and the equity method investment previously recorded on Generation’s and Exelon’s books and the settlement of pre-existing commitments between Generation and CENG.

(k)	Adjustment to reflect a benefit related to favorable settlements in 2014 of certain income tax positions on Constellation’s 2009-2012 tax returns.

EXELON CORPORATION

Reconciliation of Adjusted (non-GAAP) Operating

Earnings to GAAP Earnings (in millions)

Three Months Ended June 30, 2015 and 2014

(unaudited)


	Exelon
	Earnings per
	Diluted
	Share			Generation			ComEd			PECO			BGE			Other (a)			Exelon
2014 GAAP Earnings (Loss)	$	0.60		$	340		$	111		$	84		$	16		$	(29	)	$	522
2014 Adjusted (non-GAAP) Operating (Earnings) Loss Adjustments:
Mark-to-Market Impact of Economic Hedging Activities		0.01			8			—			—			—			—			8
Unrealized Gains Related to NDT Fund Investments (1)		(0.09	)		(76	)		—			—			—			—			(76	)
Merger and Integration Costs (2)		0.03			19			—			—			—			12			31
Amortization of Commodity Contract Intangibles (3)		0.03			23			—			—			—			—			23
Long-Lived Asset Impairment (4)		0.08			53			—			—			—			15			68
Gain on CENG Integration (5)		(0.18	)		(159	)		—			—			—			—			(159	)
CENG Non-Controlling Interest (6)		0.03			23			—			—						—			23

2014 Adjusted (non-GAAP) Operating Earnings (Loss)		0.51			231			111			84			16			(2	)		440
Year Over Year Effects on Earnings:
Generation Energy Margins, Excluding Mark-to-Market:
Nuclear Volume (8)		0.07			57			—			—			—			—			57
Nuclear Fuel Cost (9)		—			2			—			—			—			—			2
Capacity Pricing (10)		0.01			10			—			—			—			—			10
Market and Portfolio Conditions (11)		0.02			19			—			—			—			—			19
ComEd, PECO and BGE Margins:
Weather		—			—			(8	)		8			—	(b)		—			—
Load		—			—			(3	)		1			—	(b)		—			(2	)
Other Energy Delivery (12)		0.02			—			20			(4	)		2			—			18
Operating and Maintenance Expense:
Labor, Contracting and Materials (13)		(0.02	)		(12	)		(12	)		6			2			—			(16	)
Planned Nuclear Refueling Outages (14)		0.01			12			—			—			—			—			12
Pension and Non-Pension Postretirement Benefits (15)		(0.02	)		(7	)		(5	)		(1	)		—			(2	)		(15	)
Other Operating and Maintenance (16)		0.05			14			2			(10	)		23			7			36
Depreciation and Amortization Expense (17)		(0.01	)		(1	)		(2	)		(6	)		1			(1	)		(9	)
Interest Expense, Net (18)		(0.03	)		(14	)		(1	)		—			1			(8	)		(22	)
Income Taxes (19)		(0.05	)		(29	)		(3	)		(6	)		1			(9	)		(46	)
Equity in Earnings of Unconsolidated Affiliates		—			(1	)		—			—			—			—			(1	)
CENG Non-Controlling Interest (20)		—			2			—			—			—			—			2
Other (21)		0.03			26			2			(1	)		(1	)		(3	)		23

2015 Adjusted (non-GAAP) Operating Earnings (Loss)		0.59			309			101			71			45			(18	)		508
2015 Adjusted (non-GAAP) Operating Earnings (Loss) Adjustments:
Mark-to-Market Impact of Economic Hedging Activities		0.16			145			—			—			—			(2	)		143
Unrealized Losses Related to NDT Fund Investments (1)		(0.06	)		(56	)		—			—			—			—			(56	)
Merger and Integration Costs (2)		(0.02	)		(5	)		(2	)		(1	)		(1	)		(9	)		(18	)
Amortization of Commodity Contract Intangibles (3)		(0.01	)		(9	)		—			—			—			—			(9	)
Long-Lived Asset Impairment (4)		(0.02	)		—			—			—						(15	)		(15	)
Mark-to-Market Impact of PHI Merger Related Interest Rate Swaps (7)		0.08			—			—			—			—			71			71
CENG Non-Controlling Interest (6)		0.02			14			—			—			—			—			14

2015 GAAP Earnings	$	0.74		$	398		$	99		$	70		$	44		$	27		$	638

Notes:

(a)	Other primarily includes eliminating and consolidating adjustments, Exelon’s corporate operations, shared service entities and other financing and investment activities.

(b)	As approved by the Maryland PSC, BGE records a monthly adjustment to rates for residential and the majority of its commercial and industrial customers to eliminate the effect of abnormal weather and usage patterns per customer on distribution volumes.

(1)	Reflects the impact of unrealized gains and losses on NDT fund investments to the extent not offset by contractual accounting as described in the notes to the consolidated financial statements.

(2)

Reflects certain costs associated with mergers and acquisitions, including, if and when applicable, professional fees, employee-related expenses, integration activities, upfront credit facilities fees, merger commitments, and certain pre-acquisition contingencies related to the Constellation merger, CENG integration and the Integrys and pending PHI acquisitions.

(3)	Represents the non-cash amortization of intangible assets, net, related to commodity contracts recorded at fair value, if and when applicable, related to the Constellation merger, the CENG integration and the Integrys acquisition.

(4)	Reflects a 2014 charge primarily related to the impairment of certain wind generating assets and charges in 2014 and 2015 related to the impairment of investment in long-term leases.

(5)

Represents the gain recorded upon consolidation of CENG resulting from the difference in the fair value of CENG’s net assets as of April 1, 2014, and the equity method investment previously recorded on Generation’s and Exelon’s books and the settlement of pre-existing transactions between Generation and CENG.

(6)

Represents Generation’s non-controlling interest related to CENG exclusion items, primarily related to the impact of unrealized gains and losses on NDT fund investments in 2015, and in 2014 the impact of unrealized gains and losses on NDT fund investments, certain merger and acquisition costs, and non-cash amortization of intangible assets, net, related to commodity contracts.

(7)	Reflects the impact of mark-to-market activity on forward-starting interest rate swaps held at Exelon Corporate related to financing for the pending PHI acquisition, which were terminated on June 8, 2015.

(8)	Primarily reflects a reduction in the number of nuclear outage days in 2015, including Salem and the CENG plants.

(9)	Primarily reflects the cancellation of the DOE spent nuclear fuel disposal fee, partially offset by an increase in fuel cost due to increased generation.

(10)	Primarily reflects increased capacity prices for the Mid-West market, partially offset by a decrease in capacity prices for the Mid-Atlantic market and a reduction of capacity credits resulting from the sale of generating assets in 2014.

(11)	Primarily reflects the favorability from portfolio management optimization activities in the Mid-Atlantic and Midwest regions and the benefit from the Integrys acquisition, partially offset by lower margins resulting from the sale of generating assets in 2014.

(12)	At ComEd, primarily reflects increased distribution formula rate revenue due to increased capital investments and increased cost recovery of O&M expenses (offset below), partially offset by lower return on common equity due to a decrease in treasury rates.

(13)	Primarily reflects increased contracting costs related to preventative and corrective maintenance projects at ComEd, decreased meter reading contracting costs (offset below within depreciation and amortization) at PECO, and increased inflation across all operating companies.

(14)	Primarily reflects a reduction in the number of nuclear refueling outage days in 2015, excluding Salem.

(15)	Primarily reflects the unfavorable impact in 2015 of lower assumed pension and OPEB discount rates and an increase in the life expectancy assumption for plan participants.

(16)	Primarily reflects a reduction in the number of refueling outage days at Salem at Generation, increased storm costs as a result of a significant storm in 2015 at PECO, and a decrease in uncollectible accounts expense at BGE.

(17)	At PECO, primarily reflects the change in the under-recovered position of the Smart Meter program surcharge given lower meter reading costs (offset above).

(18)	At Generation, primarily reflects increased interest expense due to higher outstanding debt in 2015.

(19)	At Generation, primarily reflects a decrease in the domestic production activities deduction. At PECO, primarily reflects a decrease in electric tax repairs deduction taken in the second quarter of 2015.

(20)	Reflects Generation’s non-controlling interest related to the net impact of CENG’s operating revenue and expenses.

(21)	For Generation, primarily reflects higher realized NDT fund gains.

EXELON CORPORATION

Reconciliation of Adjusted (non-GAAP) Operating

Earnings to GAAP Earnings (in millions)

Six Months Ended June 30, 2015 and 2014

(unaudited)


	Exelon Earnings per Diluted Share			Generation			ComEd			PECO			BGE			Other (a)			Exelon
2014 GAAP Earnings (Loss)	$	0.71		$	155		$	209		$	173		$	100		$	(25	)	$	612

2014 Adjusted (non-GAAP) Operating (Earnings) Loss Adjustments:
Mark-to-Market Impact of Economic Hedging Activities		0.52			455			—			—			—			(4	)		451
Unrealized Gains Related to NDT Fund Investments (1)		(0.10	)		(84	)		—			—			—			—			(84	)
Amortization of Commodity Contract Intangibles (2)		0.06			54			—			—			—			—			54
Merger and Integration Costs (3)		0.04			28			—			—			—			12			40
Tax Settlements (4)		(0.04	)		(35	)		—			—			—			—			(35	)
Long-Lived Asset Impairment (5)		0.08			53			—			—			—			15			68
Gain on CENG Integration (6)		(0.18	)		(159	)		—			—						—			(159	)
CENG Non-Controlling Interest (7)		0.03			23			—			—						—			23

2014 Adjusted (non-GAAP) Operating Earnings (Loss)		1.12			490			209			173			100			(2	)		970

Year Over Year Effects on Earnings:
Generation Energy Margins, Excluding Mark-to-Market:
Nuclear Volume (10)		0.30			265			—			—			—			—			265
Nuclear Fuel Cost (11)		—			(1	)		—			—			—			—			(1	)
Capacity Pricing (12)		0.03			24			—			—			—			—			24
Market and Portfolio Conditions (13)		0.06			50			—			—			—			—			50
ComEd, PECO and BGE Margins:
Weather		—			—			(11	)		12			—	(b)		—			1
Load		—			—			(8	)		5			—	(b)		—			(3	)
Other Energy Delivery (14)		0.08			—			54			(2	)		17			1			70
Operating and Maintenance Expense:
Labor, Contracting and Materials (15)		(0.14	)		(98	)		(23	)		—			2			—			(119	)
Planned Nuclear Refueling Outages (16)		(0.02	)		(17	)		—			—			—			—			(17	)
Pension and Non-Pension Postretirement Benefits (17)		—			(2	)		—			—			1			(2	)		(3	)
Other Operating and Maintenance (18)		0.02			(21	)		(23	)		30			26			4			16
Depreciation and Amortization Expense (19)		(0.04	)		(26	)		(3	)		(8	)		3			(1	)		(35	)
Interest Expense, Net (20)		(0.05	)		(28	)		(3	)		—			2			(13	)		(42	)
Income Taxes (21)		(0.04	)		(24	)		(1	)		(1	)		—			(12	)		(38	)
Equity in Earnings of Unconsolidated Affiliates		—			3			—			—			—			—			3
CENG Non-Controlling Interest (22)		(0.02	)		(19	)		—			—			—			—			(19	)
Other (23)		—			16			1			1			2			(19	)		1

2015 Adjusted (non-GAAP) Operating Earnings (Loss)		1.30			612			192			210			153			(44	)		1,123

2015 Adjusted (non-GAAP) Operating Earnings (Loss) Adjustments:
Mark-to-Market Impact of Economic Hedging Activities		0.27			245			—			—			—			(2	)		243
Unrealized Losses Related to NDT Fund Investments (1)		(0.04	)		(32	)		—			—			—			—			(32	)
Amortization of Commodity Contract Intangibles (2)		0.02			15			—			—			—			—			15
Merger and Integration Costs (3)		(0.04	)		(12	)		(3	)		(1	)		(2	)		(19	)		(37	)
Long-Lived Asset Impairment (5)		(0.02	)		—			—			—			—			(15	)		(15	)
Mark-to-Market Impact of PHI Merger Related Interest Rate Swaps (8)		0.03			—			—			—			—			21			21
Midwest Generation Bankruptcy Recoveries (9)		0.01			6			—			—			—			—			6
CENG Non-Controlling Interest (7)		0.01			7			—			—			—			—			7

2015 GAAP Earnings (Loss)	$	1.54		$	841		$	189		$	209		$	151		$	(59	)	$	1,331

Note:

•

In 2015, each line item above includes 100% of CENG’s results of operations, however during the first quarter of 2014, CENG’s net results were included in equity in earnings (loss) on unconsolidated affiliates. Therefore, the results of operations from 2015 and 2014 for each line item above are not comparable for Generation and Exelon. The explanations below identify any other significant or unusual items affecting the results of operations.

(a)	Other primarily includes eliminating and consolidating adjustments, Exelon’s corporate operations, shared service entities and other financing and investment activities.

(b)	As approved by the Maryland PSC, BGE records a monthly adjustment to rates for residential and the majority of its commercial and industrial customers to eliminate the effect of abnormal weather and usage patterns per customer on distribution volumes.

(1)	Reflects the impact of unrealized gains on NDT fund investments to the extent not offset by contractual accounting as described in the notes to the consolidated financial statements.

(2)	Represents the non-cash amortization of intangible assets, net, related to commodity contracts recorded at fair value, if and when applicable, related to the Constellation merger, CENG Integration, and the Integrys acquisition.

(3)

(4)	Reflects a benefit related to the favorable settlement in 2014 of certain income tax positions on Constellation’s 2009-2012 pre-acquisition tax returns.

(5)	Reflects a 2014 charge primarily related to the impairment of certain wind generating assets and charges in 2014 and 2015 related to the impairment of investment in long-term leases.

(6)

(7)

(8)	Reflects the impact of mark-to-market activity on forward-starting interest rate swaps held at Exelon Corporate related to financing for the pending PHI acquisition, which were terminated on June 8, 2015.

(9)	Primarily reflects a benefit for the favorable settlement of a long-term railcar lease agreement pursuant to the Midwest Generation bankruptcy.

(10)	Primarily reflects the inclusion of CENG’s results for the first quarter of 2015 and a reduction in the number of nuclear generating outage days in 2015.

(11)	Primarily reflects the cancellation of the DOE spent nuclear disposal fee, substantially offset by the inclusion of CENG’s results in 2015 and an increase in fuel cost due to increased generation.

(12)	Primarily reflects the inclusion of CENG’s capacity credits and increased capacity prices for the Midwest market, partially offset by a decrease in capacity prices for the Mid-Atlantic market and the reduction of capacity credits resulting from the sale of generating assets in 2014.

(13)

Primarily reflects the benefit of lower cost to serve load (including the absence of higher procurement costs for replacement power in 2014), the benefit from the Integrys acquisition, favorability from portfolio management optimization activities in the Mid-Atlantic and Midwest regions, partially offset by lower margins resulting from the sale of generating assets in 2014, lower realized energy prices, and the absence of the 2014 fuel optimization opportunities in the South due to extreme cold weather.

(14)

For ComEd, primarily reflects increased distribution formula rate revenue (due to increased capital investments and increased cost recovery of O&M expenses (offset below), partially offset by lower return on common equity due to a decrease in treasury rates), and increased uncollectible accounts expense (offset below in operating and maintenance expense). For BGE, primarily reflects increased distribution revenue pursuant to increased rates effective in December 2014.

(15)

Primarily reflects the inclusion of CENG’s results for the first quarter of 2015 at Generation, increased contracting costs related to other preventative and corrective maintenance projects at ComEd, decreased meter reading contracting costs (offset below within depreciation and amortization) partially offset by maintenance and vegetation management costs at PECO, and inflation across all operating companies.

(16)	Primarily reflects the impact of increased refueling outage costs at CENG plants in 2015.

(17)	Primarily reflects the unfavorable impact of lower assumed pension and OPEB discount rates for 2015 and an increase in the life expectancy assumption for plan participants in 2015, substantially offset by cost savings from plan design changes for certain OPEB plans effective April 2014 and forward.

(18)

For Generation, primarily reflects the inclusion of CENG’s results for the first quarter of 2015, partially offset by a reduction in the number of nuclear refueling outage days at Salem. For ComEd, primarily relates to increased uncollectible accounts expense (offset above, in other energy and delivery revenue). For PECO, reflects decreased storm costs, primarily as a result of the February 5, 2014 ice storm. For BGE, primarily reflects decreased storm costs and a decrease in uncollectible accounts expense.

(19)	Primarily reflects the inclusion of CENG’s results for the first quarter of 2015 at Generation and the change in the under-recovered position of the Smart Meter program surcharge given lower meter reading costs (offset above) at PECO.

(20)

At Generation, primarily reflects increased interest expense due to higher outstanding debt in 2015 and a 2014 interest benefit for the favorable settlement of certain income tax positions, partially offset by the inclusion of CENG’s results for the first quarter of 2015. At Corporate, primarily reflects increased interest expense for payments related to the mandatory convertible securities issued for the pending PHI acquisition.

(21)	At Generation, primarily reflects the absence of favorable settlements of certain income tax positions recorded in 2014 and a decrease in the domestic production activities deduction.

(22)	Reflects Generation’s non-controlling interest related to the net impact of CENG’s operating revenue and expenses.

(23)	For Generation, primarily reflects higher realized NDT fund gains, partially offset by the inclusion of CENG’s results for the first quarter of 2015. For Corporate, primarily reflects a loss on the termination of forward-starting interest rate swaps in the first quarter of 2015.

EXELON CORPORATION

Reconciliation of Adjusted (non-GAAP) Operating Earnings to

GAAP Consolidated Statements of Operations

(unaudited) (in millions)


	Generation
	Three Months Ended June 30, 2015									Three Months Ended June 30, 2014
	GAAP (a)			Adjustments			Adjusted Non-GAAP			GAAP (a)			Adjustments			Adjusted Non-GAAP
Operating revenues	$	4,232		$	(7	)(b),(c)	$	4,225		$	3,789		$	170	(b),(c)	$	3,959
Operating expenses
Purchased power and fuel		1,849			214	(b),(c)		2,063			1,835			108	(b),(c)		1,943
Operating and maintenance		1,308			(7	)(d)		1,301			1,413			(101	)(d),(h)		1,312
Depreciation and amortization		255			—			255			254			—			254
Taxes other than income		124			—			124			118			—			118

Total operating expenses		3,536			207			3,743			3,620			7			3,627
Equity in losses of unconsolidated affiliates		—			—			—			(1	)		—			(1	)
Gain on sale of assets		7			—			7			12			—			12
Gain on consolidation and acquisition of businesses		—			—			—			261			(261	)(i)		—

Operating income		703			(214	)		489			441			(98	)		343

Other income and (deductions)
Interest expense		(99	)		—			(99	)		(86	)		—			(86	)
Other, net		(31	)		127	(e)		96			216			(162	)(e)		54

Total other income and (deductions)		(130	)		127			(3	)		130			(162	)		(32	)

Income before income taxes		573			(87	)		486			571			(260	)		311
						(b),(c),(d),									(b),(c),(d),
Income taxes		181			(12	)(e)		169			199			(128	)(e),(h),(i)		71
Equity in losses of unconsolidated affiliates		(2	)		—			(2	)		—			—			—

Net income		390			(75	)		315			372			(132	)		240
Net (loss) income attributable to noncontrolling interests		(8	)		14	(f)		6			32			(23	)(f)		9

Net income attributable to membership interest	$	398		$	(89	)	$	309		$	340		$	(109	)	$	231


	Six Months Ended June 30, 2015									Six Months Ended June 30, 2014
	GAAP (a)			Adjustments			Adjusted Non-GAAP			GAAP (a)			Adjustments			Adjusted Non-GAAP
Operating revenues	$	10,074		$	(201	)(b),(c)	$	9,873		$	8,179		$	1,020	(b),(c),(d)	$	9,199
Operating expenses
Purchased power and fuel		5,282			220	(b),(c)		5,502			5,191			187	(b),(c)		5,378
Operating and maintenance		2,619			(8	)(d),(g)		2,611			2,499			(114	)(d),(h)		2,385
Depreciation and amortization		509			—			509			466			—			466
Taxes other than income		246			—			246			223			—			223

Total operating expenses		8,656			212			8,868			8,379			73			8,452
Equity in losses of unconsolidated affiliates		—			—			—			(20	)		12	(c),(d)		(8	)
Gain on sale of assets		6			—			6			18			—			18
Gain on consolidation and acquisition of businesses		—			—			—			261			(261	)(i)		—

Operating income		1,424			(413	)		1,011			59			698			757

Other income and (deductions)
Interest expense		(201	)		—			(201	)		(172	)		—			(172	)
Other, net		62			78	(e)		140			300			(205	)(e),(j)		95

Total other income and (deductions)		(139	)		78			(61	)		128			(205	)		(77	)

Income before income taxes		1,285			(335	)		950			187			493			680
															(b),(c),(d).
						(b),(c),(d),									(e),(h),(i),
Income taxes		407			(113	)(e),(g)		294			(1	)		181	(j)		180
Equity in loss of unconsolidated affiliates		(3	)		—			(3	)		—			—			—
Net income		875			(222	)		653			188			312			500

Net income attributable to noncontrolling interests		34			7	(f)		41			33			(23	)(f)		10

Net income attributable to membership interest	$	841		$	(229	)	$	612		$	155		$	335		$	490

Note: For the six months ended June 30, 2014, includes the results of operations of CENG beginning April 1, 2014, the date the nuclear operating services agreement was executed.

(a)	Results reported in accordance with GAAP.

(b)	Adjustment to exclude the mark-to-market impact of Exelon’s economic hedging activities, net of intercompany eliminations.

(c)	Adjustment to exclude the non-cash amortization of intangible assets, net, related to commodity contracts recorded at fair value, if and when applicable, related to the Constellation merger, the CENG integration and the Integrys acquisition.

(d)

Adjustment to exclude certain costs associated with the Constellation merger, pending PHI acquisition, the CENG integration and Integrys acquisition, including, if and when applicable, professional fees, employee-related expenses, integration activities, upfront credit facilities fees, merger commitments, and certain pre-acquisition contingencies.

(e)	Adjustment to exclude the unrealized gains on NDT fund investments to the extent not offset by contractual accounting as described in the notes to the consolidated financial statements.

(f)

(g)	Adjustment to reflect a benefit related to the favorable settlement of a long-term railcar lease agreement pursuant to the Midwest Generation bankruptcy.

(h)	Adjustment to exclude a 2014 charge to earnings related to the impairment of certain wind generating assets.

(i)	Adjustment to exclude the gain recorded upon consolidation of CENG resulting from the difference in the fair value of CENG’s net assets and the equity method investment previously recorded on Generation’s and Exelon’s books and the settlement of pre-existing commitments between Generation and CENG.

(j)	Adjustment to reflect a benefit related to favorable settlements in 2014 of certain income tax positions on Constellation’s 2009-2012 tax returns.

EXELON CORPORATION

Reconciliation of Adjusted (non-GAAP) Operating Earnings to

GAAP Consolidated Statements of Operations

(unaudited)

(in millions)


	ComEd
	Three Months Ended June 30, 2015									Three Months Ended June 30, 2014
	GAAP (a)			Adjustments			Adjusted Non-GAAP			GAAP (a)			Adjustments		Adjusted Non-GAAP
Operating revenues	$	1,148		$	—		$	1,148		$	1,128		$	—	$	1,128
Operating expenses
Purchased power		275			—			275			269			—		269
Operating and maintenance		384			(3	)(b)		381			355			—		355
Depreciation and amortization		177			—			177			174			—		174
Taxes other than income		69			—			69			72			—		72

Total operating expenses		905			(3	)		902			870			—		870

Operating income		243			3			246			258			—		258

Other income and (deductions)
Interest expense		(81	)		—			(81	)		(80	)		—		(80	)
Other, net		5			—			5			5			—		5

Total other income and (deductions)		(76	)		—			(76	)		(75	)		—		(75	)

Income before income taxes		167			3			170			183			—		183
Income taxes		68			1	(b)		69			72			—		72

Net income	$	99		$	2		$	101		$	111		$	—	$	111


	Six Months Ended June 30, 2015									Six Months Ended June 30, 2014
	GAAP (a)			Adjustments			Adjusted Non-GAAP			GAAP (a)			Adjustments		Adjusted Non-GAAP
Operating revenues	$	2,333		$	—		$	2,333		$	2,262		$	—	$	2,262
Operating expenses
Purchased power		601			—			601			589			—		589
Operating and maintenance		762			(5	)(b)		757			681			—		681
Depreciation and amortization		352			—			352			347			—		347
Taxes other than income		146			—			146			149			—		149

Total operating expenses		1,861			(5	)		1,856			1,766			—		1,766

Operating income		472			5			477			496			—		496

Other income and (deductions)
Interest expense, net		(165	)		—			(165	)		(160	)		—		(160	)
Other, net		9			—			9			10			—		10

Total other income and (deductions)		(156	)		—			(156	)		(150	)		—		(150	)

Income before income taxes		316			5			321			346			—		346
Income taxes		127			2	(b)		129			137			—		137

Net income	$	189		$	3		$	192		$	209		$	—	$	209

(a)	Results reported in accordance with GAAP.

(b)	Adjustment to exclude certain integration costs associated with the pending PHI acquisition.

EXELON CORPORATION

Reconciliation of Adjusted (non-GAAP) Operating Earnings to

GAAP Consolidated Statements of Operations

(unaudited)

(in millions)


	PECO
	Three Months Ended June 30, 2015									Three Months Ended June 30, 2014
	GAAP (a)			Adjustments			Adjusted Non-GAAP			GAAP (a)			Adjustments		Adjusted Non-GAAP
Operating revenues	$	661		$	—		$	661		$	656		$	—	$	656
Operating expenses
Purchased power and fuel		237			—			237			241			—		241
Operating and maintenance		192			(1	)(b)		191			184			—		184
Depreciation and amortization		69			—			69			59			—		59
Taxes other than income		39			—			39			38			—		38

Total operating expenses		537			(1	)		536			522			—		522

Operating income		124			1			125			134			—		134

Other income and (deductions)
Interest expense		(28	)		—			(28	)		(28	)		—		(28	)
Other, net		1			—			1			1			—		1

Total other income and (deductions)		(27	)		—			(27	)		(27	)		—		(27	)

Income before income taxes		97			1			98			107			—		107
Income taxes		27			—			27			23			—		23

Net income attributable to common shareholder	$	70		$	1		$	71		$	84		$	—	$	84


	Six Months Ended June 30, 2015									Six Months Ended June 30, 2014
	GAAP (a)			Adjustments			Adjusted Non-GAAP			GAAP (a)			Adjustments		Adjusted Non-GAAP
Operating revenues	$	1,646		$	—		$	1,646		$	1,649		$	—	$	1,649
Operating expenses
Purchased power and fuel		675			—			675			705			—		705
Operating and maintenance		414			(2	)(b)		412			464			—		464
Depreciation and amortization		131			—			131			117			—		117
Taxes other than income		80			—			80			80			—		80

Total operating expenses		1,300			(2	)		1,298			1,366			—		1,366

Gain on sales of assets		1			—			1			—			—		—

Operating income		347			2			349			283			—		283

Other income and (deductions)
Interest expense, net		(56	)		—			(56	)		(56	)		—		(56	)
Other, net		3			—			3			3			—		3

Total other income and (deductions)		(53	)		—			(53	)		(53	)		—		(53	)

Income before income taxes		294			2			296			230			—		230
Income taxes		85			1	(b)		86			57			—		57

Net income attributable to common shareholder	$	209		$	1		$	210		$	173		$	—	$	173

(a)	Results reported in accordance with GAAP.

(b)	Adjustment to exclude certain integration costs associated with the pending PHI acquisition.

EXELON CORPORATION

Reconciliation of Adjusted (non-GAAP) Operating Earnings to

GAAP Consolidated Statements of Operations

(unaudited)

(in millions)


	BGE
	Three Months Ended June 30, 2015									Three Months Ended June 30, 2014
	GAAP (a)			Adjustments			Adjusted Non- GAAP			GAAP (a)			Adjustments		Adjusted Non-GAAP
Operating revenues	$	628		$	—		$	628		$	653		$	—	$	653
Operating expenses
Purchased power and fuel		239			—			239			268			—		268
Operating and maintenance		149			(2	)(b)		147			188			—		188
Depreciation and amortization		87			—			87			89			—		89
Taxes other than income		54			—			54			53			—		53

Total operating expenses		529			(2	)		527			598			—		598

Operating income		99			2			101			55			—		55

Other income and (deductions)
Interest expense		(24	)		—			(24	)		(27	)		—		(27	)
Other, net		4			—			4			5			—		5

Total other income and (deductions)		(20	)		—			(20	)		(22	)		—		(22	)

Income before income taxes		79			2			81			33			—		33
Income taxes		32			1	(b)		33			14			—		14

Net income		47			1			48			19			—		19
Preference stock dividends		3			—			3			3			—		3

Net income attributable to common shareholders	$	44		$	1		$	45		$	16		$	—	$	16


	Six Months Ended June 30, 2015									Six Months Ended June 30, 2014
	GAAP (a)			Adjustments			Adjusted Non- GAAP			GAAP (a)			Adjustments		Adjusted Non-GAAP
Operating revenues	$	1,664		$	—		$	1,664		$	1,707		$	—	$	1,707
Operating expenses
Purchased power and fuel		726			—			726			797			—		797
Operating and maintenance		331			(3	)(b)		328			376			—		376
Depreciation and amortization		192			—			192			197			—		197
Taxes other than income		111			—			111			113			—		113

Total operating expenses		1,360			(3	)		1,357			1,483			—		1,483

Operating income		304			3			307			224			—		224

Other income and (deductions)
Interest expense, net		(50	)		—			(50	)		(55	)		—		(55	)
Other, net		8			—			8			9			—		9

Total other income and (deductions)		(42	)		—			(42	)		(46	)		—		(46	)

Income before income taxes		262			3			265			178			—		178
Income taxes		105			1	(b)		106			72			—		72

Net income		157			2			159			106			—		106
Preference stock dividends		6			—			6			6			—		6

Net income attributable to common shareholders	$	151		$	2		$	153		$	100		$	—	$	100

(a)	Results reported in accordance with GAAP.

(b)	Adjustment to exclude certain integration costs associated with the pending PHI acquisition.

EXELON CORPORATION

Reconciliation of Adjusted (non-GAAP) Operating Earnings to

GAAP Consolidated Statements of Operations

(unaudited)

(in millions)


	Other (a)
	Three Months Ended June 30, 2015									Three Months Ended June 30, 2014
	GAAP (b)			Adjustments			Adjusted Non-GAAP			GAAP (b)			Adjustments			Adjusted Non-GAAP
Operating revenues	$	(155	)	$	—		$	(155	)	$	(202	)	$	—		$	(202	)
Operating expenses
Purchased power and fuel		(151	)		—			(151	)		(201	)		—			(201	)
Operating and maintenance		9			(28	)(c),(d)		(19	)		26			(36	)(c),(d)		(10	)
Depreciation and amortization		14			—			14			14			—			14
Taxes other than income		8			—			8			7			—			7

Total operating expenses		(120	)		(28	)		(148	)		(154	)		(36	)		(190	)
Equity in earnings of unconsolidated affiliates		—			—			—			1			—			1
Gain on sale of assets		—			—			—			1			—			1

Operating loss		(35	)		28			(7	)		(46	)		36			(10	)

Other income and (deductions)
Interest expense		77			(104	)(c),(e)		(27	)		(17	)		8	(c)		(9	)
Other, net		4			—			4			3			—			3

Total other income and (deductions)		81			(104	)		(23	)		(14	)		8			(6	)

Income (loss) before income taxes		46			(76	)		(30	)		(60	)		44			(16	)
Income taxes (benefit)		19			(31	)(c),(d),(e),(f)		(12	)		(31	)		17	(c),(d)		(14	)

Net income (loss)	$	27		$	(45	)	$	(18	)	$	(29	)	$	27		$	(2	)


	Six Months Ended June 30, 2015									Six Months Ended June 30, 2014
	GAAP (b)			Adjustments			Adjusted Non-GAAP			GAAP (b)			Adjustments			Adjusted Non-GAAP
Operating revenues	$	(372	)	$	—		$	(372	)	$	(536	)	$	—		$	(536	)
Operating expenses
Purchased power and fuel		(365	)		—			(365	)		(530	)		—			(530	)
Operating and maintenance		(3	)		(35	)(c),(d)		(38	)		4			(35	)(c),(d)		(31	)
Depreciation and amortization		28			—			28			27			—			27
Taxes other than income		15			—			15			15			—			15

Total operating expenses		(325	)		(35	)		(360	)		(484	)		(35	)		(519	)
Gain on sale of assets		1			—			1			—			—			—

Operating loss		(46	)		35			(11	)		(52	)		35			(17	)

Other income and (deductions)
Interest expense		(29	)		(15	)(c),(e)		(44	)		(22	)		8	(c)		(14	)
Other, net		(18	)		—			(18	)		8			—			8

Total other income and (deductions)		(47	)		(15	)		(62	)		(14	)		8			(6	)

Loss before income taxes		(93	)		20			(73	)		(66	)		43			(23	)
Income benefit		(34	)		5	(c),(d),(e),(f)		(29	)		(41	)		20	(c),(d),(f)		(21	)
Equity in earnings of unconsolidated affiliates		1			—			1			—			—			—

Net loss		(58	)		15			(43	)		(25	)		23			(2	)
Net income attributable to noncontrolling interests and preference stock dividends		1			—			1			—			—			—

Net loss attributable to common shareholders	$	(59	)	$	15		$	(44	)	$	(25	)	$	23		$	(2	)

(a)	Other primarily includes eliminating and consolidating adjustments, Exelon’s corporate operations, shared service entities and other financing and investment activities.

(b)	Results reported in accordance with GAAP.

(c)	Adjustment to exclude certain costs associated with the pending PHI acquisition including, if and when applicable, professional fees, employee-related expenses, integration activities, upfront credit facilities fees, merger commitments, and certain pre-acquisition contingencies.

(d)	Adjustment to exclude a charge to earnings related to the impairment of investment in long-term leases in both 2015 and 2014.

(e)	Adjustment to exclude the mark-to-market impact of Exelon Corporate’s forward-starting interest rate swaps related to financing for the pending PHI acquisition.

(f)	Adjustment to exclude the mark-to-market impact of Exelon’s economic hedging activities, net of intercompany eliminations.

EXELON CORPORATION

Exelon Generation Statistics


	Three Months Ended,
					December 31,		September 30,
	June 30, 2015		March 31, 2015		2014		2014		June 30, 2014
Supply Source (GWh)
Nuclear Generation
Mid-Atlantic (a)		15,619		15,718		15,768		15,993		14,912
Midwest		23,448		22,427		23,777		24,379		22,719
New York (a)		4,738		4,512		4,988		4,891		3,766

Total Nuclear Generation		43,805		42,657		44,533		45,263		41,397
Fossil and Renewables (a)
Mid-Atlantic		750		559		2,268		2,385		3,165
Midwest		363		432		424		212		319
New England		135		600		411		1,789		1,299
New York		1		1		1		1		1
ERCOT		872		1,422		1,624		2,331		1,553
Other Power Regions (b)		2,096		1,973		1,999		2,285		2,041

Total Fossil and Renewables		4,217		4,987		6,727		9,003		8,378
Purchased Power
Mid-Atlantic		1,384		1,824		929		1,110		810
Midwest		407		589		513		260		520
New England		5,742		6,408		4,763		3,231		2,290
ERCOT		2,903		2,244		1,966		2,184		2,518
Other Power Regions (b)		4,170		3,307		3,389		4,397		3,654

Total Purchased Power		14,606		14,372		11,560		11,182		9,792
Total Supply/Sales by Region (d)
Mid-Atlantic (c)		17,753		18,101		18,965		19,488		18,887
Midwest (c)		24,218		23,448		24,714		24,851		23,558
New England		5,877		7,008		5,174		5,020		3,589
New York		4,739		4,513		4,989		4,892		3,767
ERCOT		3,775		3,666		3,590		4,515		4,071
Other Power Regions (b)		6,266		5,280		5,388		6,682		5,695

Total Supply/Sales by Region		62,628		62,016		62,820		65,448		59,567


	Three Months Ended,
					December 31,		September 30,
	June 30, 2015		March 31, 2015		2014		2014		June 30, 2014
Outage Days (e)
Refueling		71		89		97		18		108
Non-refueling		18		32		8		20		44

Total Outage Days		89		121		105		38		152

(a)

Includes the proportionate share of output where Generation has an undivided ownership interest in jointly-owned generating plants and includes the total output of plants that are fully consolidated (e.g. CENG). Nuclear generation includes physical volumes of 3,743 GWh, 3,284 GWh, 3,902 GWh, 3,726 GWh, and 3,780 GWh in the Mid-Atlantic region and 4,738 GWh, 4,512 GWh, 4,988 GWh, 4,891 GWh, and 3,766 GWh in the New York region for the three months ended June 30, 2015, March 31, 2015, December 31, 2014, September 30, 2014, and June 30, 2014, respectively for CENG.

(b)	Other Power Regions includes South, West and Canada.

(c)	Includes affiliate sales to PECO and BGE in the Mid-Atlantic region and affiliate sales to ComEd in the Midwest region.

(d)	Total sales do not include physical trading volumes of 1,657 GWh, 1,808 GWh, 2,442 GWh, 3,006 GWh, and 2,629 GWh for the three months ended June 30, 2015, March 31, 2015, December 31, 2014, September 30, 2014, and June 30, 2014, respectively.

(e)	Outage days exclude Salem.

EXELON CORPORATION

Exelon Generation Statistics

Six Months Ended June 30, 2015 and 2014


	June 30, 2015		June 30, 2014
Supply Source (GWh)
Nuclear Generation
Mid-Atlantic (a)		31,337		27,048
Midwest		45,875		45,844
New York (a)		9,250		3,766

Total Nuclear Generation		86,462		76,658
Fossil and Renewables (a)
Mid-Atlantic		1,309		6,373
Midwest		795		736
New England		735		3,033
New York		2		2
ERCOT		2,294		3,208
Other Power Regions (c)		4,069		3,670

Total Fossil and Renewables		9,204		17,022
Purchased Power
Mid-Atlantic (b)		3,208		4,043
Midwest		996		1,231
New England		12,150		4,360
New York (b)		—		2,857
ERCOT		5,147		4,501
Other Power Regions (c)		7,477		7,009

Total Purchased Power		28,978		24,001
Total Supply/Sales by Region (e)
Mid-Atlantic (d)		35,854		37,464
Midwest (d)		47,666		47,811
New England		12,885		7,393
New York		9,252		6,625
ERCOT		7,441		7,709
Other Power Regions (c)		11,546		10,679

Total Supply/Sales by Region		124,644		117,681

(a)

Includes the proportionate share of output where Generation has an undivided ownership interest in jointly-owned generating plants and includes the total output of plants that are fully consolidated (e.g. CENG). Nuclear generation for the six months ended June 30, 2015 includes physical volumes of 7,027 GWh in the Mid-Atlantic region and 9,250 GWh in the New York region for CENG. Nuclear generation for the six months ended June 30, 2014 includes physical volumes of 3,780 GWh in the Mid-Atlantic region and 3,766 GWh in the New York region for CENG.

(b)	Purchased power includes physical volumes of 2,489 GWh in the Mid-Atlantic and 2,857 GWh in New York as a result of the PPA with CENG for the six months ended June 30, 2014, respectively. As of the integration date of April 1, 2014, CENG volumes are included in nuclear generation.

(c)	Other Power Regions includes South, West and Canada.

(d)	Includes affiliate sales to PECO and BGE in the Mid-Atlantic region and affiliate sales to ComEd in the Midwest region.

(e)	Total sales do not include physical proprietary trading volumes of 3,465 GWh and 5,123 GWh for the six months ended June 30, 2015 and 2014, respectively.

EXELON CORPORATION

ComEd Statistics

Three Months Ended June 30, 2015 and 2014


	Electric Deliveries (in GWhs)										Revenue (in millions)
	2015		2014		% Change			Weather- Normal % Change			2015		2014		% Change
Retail Deliveries and Sales^(a)
Residential		5,685		6,177		(8.0	)%		(1.8	)%	$	527	$	499		5.6	%
Small Commercial & Industrial		7,566		7,759		(2.5	)%		(1.3	)%		330		340		(2.9	)%
Large Commercial & Industrial		6,680		6,769		(1.3	)%		(0.5	)%		109		113		(3.5	)%
Public Authorities & Electric
Railroads		290		304		(4.6	)%		(4.5	)%		11		12		(8.3	)%

Total Retail		20,221		21,009		(3.8	)%		(1.2	)%		977		964		1.3	%

Other Revenue^(b)												171		164		4.3	%


Total Electric Revenue											$	1,148	$	1,128		1.8	%

Purchased Power											$	275	$	269		2.2	%


							% Change
Heating and Cooling Degree-Days	2015		2014		Normal		From 2014			From Normal
Heating Degree-Days		686		695		765		(1.3	)%		(10.3	)%
Cooling Degree-Days		171		259		218		(34.0	)%		(21.6	)%

Six Months Ended June 30, 2015 and 2014


	Electric Deliveries (in GWhs)										Revenue (in millions)
	2015		2014		% Change			Weather- Normal % Change			2015		2014		% Change
Retail Deliveries and Sales^(a)
Residential		12,682		13,587		(6.7	)%		(2.6	)%	$	1,096	$	1,007		8.8	%
Small Commercial & Industrial		15,727		16,090		(2.3	)%		(0.8	)%		667		684		(2.5	)%
Large Commercial & Industrial		13,557		13,864		(2.2	)%		(1.4	)%		218		229		(4.8	)%
Public Authorities & Electric
Railroads		669		701		(4.6	)%		(3.6	)%		23		24		(4.2	)%

Total Retail		42,635		44,242		(3.6	)%		(1.6	)%		2,004		1,944		3.1	%

Other Revenue^(b)												329		318		3.5	%

Total Electric Revenue											$	2,333	$	2,262		3.1	%

Purchased Power											$	601	$	589		2.0	%


							% Change
Heating and Cooling Degree-Days	2015		2014		Normal		From 2014			From Normal
Heating Degree-Days		4,318		4,569		3,929		(5.5	)%		9.9	%
Cooling Degree-Days		171		259		218		(34.0	)%		(21.6	)%

Number of Electric Customers							2015			2014
Residential								3,511,058			3,487,337
Small Commercial & Industrial								369,255			367,354
Large Commercial & Industrial								1,976			2,025
Public Authorities & Electric Railroads								4,833			4,827

Total								3,887,122			3,861,543

(a)

Reflects delivery volumes and revenues from customers purchasing electricity directly from ComEd and customers purchasing electricity from a competitive electric generation supplier, as all customers are assessed delivery charges. For customers purchasing electricity from ComEd, revenue also reflects the cost of energy and transmission.

(b)	Other revenue primarily includes transmission revenue from PJM. Other items include rental revenues, revenues related to late payment charges, revenues from other utilities for mutual assistance programs and recoveries of environmental costs associated with MGP sites.

EXELON CORPORATION

PECO Statistics

Three Months Ended June 30, 2015 and 2014


	Electric and Gas Deliveries										Revenue (in millions)
	2015		2014		% Change			Weather- Normal % Change			2015		2014		% Change
Electric (in GWhs)

Retail Deliveries and Sales (a)
Residential		3,021		2,801		7.9	%		(0.2	)%	$	365	$	338		8.0	%
Small Commercial & Industrial		1,925		1,947		(1.1	)%		(3.2	)%		102		101		1.0	%
Large Commercial & Industrial		3,784		3,741		1.1	%		0.4	%		54		54		—	%
Public Authorities & Electric Railroads		214		222		(3.6	)%		(3.6	)%		8		8		—	%

Total Retail		8,944		8,711		2.7	%		(0.7	)%		529		501		5.6	%


Other Revenue (b)												53		58		(8.6	)%

Total Electric Revenue												582		559		4.1	%


Gas (in mmcfs)
Retail Deliveries and Sales
Retail Sales (c)		7,233		7,424		(2.6	)%		7.5	%		72		88		(18.2	)%
Transportation and Other		5,431		6,005		(9.6	)%		(5.9	)%		7		9		(22.2	)%

Total Gas		12,664		13,429		(5.7	)%		1.6	%		79		97		(18.6	)%

Total Electric and Gas Revenues											$	661	$	656		0.8	%

Purchased Power and Fuel											$	237	$	241		(1.7	)%


							% Change
Heating and Cooling Degree-Days	2015		2014		Normal		From 2014			From Normal
Heating Degree-Days		330		393		466		(16.0	)%		(29.2	)%
Cooling Degree-Days		513		375		348		36.8	%		47.4	%

Six Months Ended June 30, 2015 and 2014


	Electric and Gas Deliveries										Revenue (in millions)
	2015		2014		% Change			Weather- Normal % Change			2015		2014		% Change
Electric (in GWhs)

Retail Deliveries and Sales (a)
Residential		6,989		6,649		5.1	%		0.7	%	$	815	$	782		4.2	%
Small Commercial & Industrial		4,087		4,002		2.1	%		0.3	%		217		212		2.4	%
Large Commercial & Industrial		7,517		7,518		—	%		(0.6	)%		108		117		(7.7	)%
Public Authorities & Electric Railroads		443		481		(7.9	)%		(7.9	)%		15		16		(6.3	)%

Total Retail		19,036		18,650		2.1	%		(0.1	)%		1,155		1,127		2.5	%


Other Revenue (b)												104		109		(4.6	)%

Total Electric Revenue												1,259		1,236		1.9	%

Gas (in mmcfs)
Retail Deliveries and Sales
Retail Sales (c)		42,095		40,594		3.7	%		3.9	%		368		390		(5.6	)%
Transportation and Other		14,128		14,374		(1.7	)%		(3.2	)%		19		23		(17.4	)%

Total Gas		56,223		54,968		2.3	%		1.9	%		387		413		(6.3	)%

Total Electric and Gas Revenues											$	1,646	$	1,649		(0.2	)%

Purchased Power and Fuel											$	675	$	705		(4.3	)%


							% Change
Heating and Cooling Degree-Days	2015		2014		Normal		From 2014			From Normal
Heating Degree-Days		3,264		3,237		2,943		0.8	%		10.9	%
Cooling Degree-Days		513		375		349		36.8	%		47.0	%


Number of Electric Customers	2015		2014		Number of Gas Customers	2015		2014
Residential		1,437,523		1,428,080	Residential		464,333		459,407
Small Commercial & Industrial		148,918		149,259	Commercial & Industrial		42,603		42,042

Large Commercial & Industrial		3,095		3,108	Total Retail		506,936		501,449
Public Authorities & Electric Railroads		9,803		9,712	Transportation		845		882

Total		1,599,339		1,590,159	Total		507,781		502,331

(a)

Reflects delivery volumes and revenue from customers purchasing electricity directly from PECO and customers purchasing electricity from a competitive electric generation supplier as all customers are assessed distribution charges. For customers purchasing electricity from PECO, revenue also reflects the cost of energy and transmission.

(b)	Other revenue includes transmission revenue from PJM and wholesale electric revenue.

(c)

Reflects delivery volumes and revenue from customers purchasing natural gas directly from PECO and customers purchasing natural gas from a competitive natural gas supplier as all customers are assessed distribution charges. For customers purchasing natural gas from PECO, revenue also reflects the cost of natural gas.

EXELON CORPORATION

BGE Statistics

Three Months Ended June 30, 2015 and 2014


	Electric and Gas Deliveries							Revenue (in millions)
	2015		2014		% Change			2015		2014		% Change
Electric (in GWhs)
Retail Deliveries and Sales (a)
Residential		2,635		2,639		(0.2	)%	$	303	$	293		3.4	%
Small Commercial & Industrial		780		704		10.8	%		61		64		(4.7	)%
Large Commercial & Industrial		3,467		3,593		(3.5	)%		109		120		(9.2	)%
Public Authorities & Electric Railroads		74		79		(6.3	)%		8		8		—	%

Total Retail		6,956		7,015		(0.8	)%		481		485		(0.8	)%

Other Revenue (b)									60		67		(10.4	)%

Total Electric Revenue									541		552		(2.0	)%


Gas (in mmcfs)
Retail Deliveries and Sales (c)
Retail Sales		13,885		14,834		(6.4	)%		85		92		(7.6	)%
Transportation and Other (d)		585		875		(33.1	)%		2		9		(77.8	)%

Total Gas		14,470		15,709		(7.9	)%		87		101		(13.9	)%

Total Electric and Gas Revenues								$	628	$	653		(3.8	)%

Purchased Power and Fuel								$	239	$	268		(10.8	)%


							% Change
Heating and Cooling Degree-Days	2015		2014		Normal		From 2014			From Normal
Heating Degree-Days		422		497		509		(15.1	)%		(17.1	)%
Cooling Degree-Days		317		233		253		36.1	%		25.3	%

Six Months Ended June 30, 2015 and 2014


	Electric and Gas Deliveries							Revenue (in millions)
	2015		2014		% Change			2015		2014		% Change
Electric (in GWhs)
Retail Deliveries and Sales (a)
Residential		6,808		6,732		1.1	%	$	752	$	729		3.2	%
Small Commercial & Industrial		1,625		1,538		5.7	%		137		136		0.7	%
Large Commercial & Industrial		6,906		7,062		(2.2	)%		229		243		(5.8	)%
Public Authorities & Electric Railroads		149		157		(5.1	)%		16		16		—	%

Total Retail		15,488		15,489		—	%		1,134		1,124		0.9	%

Other Revenue (b)									120		138		(13.0	)%

Total Electric Revenue									1,254		1,262		(0.6	)%

Gas (in mmcfs)
Retail Deliveries and Sales (c)
Retail Sales		60,762		61,222		(0.8	)%		384		377		1.9	%
Transportation and Other (d)		3,909		7,204		(45.7	)%		26		68		(61.8	)%

Total Gas		64,671		68,426		(5.5	)%		410		445		(7.9	)%

Total Electric and Gas Revenues								$	1,664	$	1,707		(2.5	)%

Purchased Power and Fuel								$	726	$	797		(8.9	)%


							% Change
Heating and Cooling Degree-Days	2015		2014		Normal		From 2014			From Normal
Heating Degree-Days		3,372		3,358		2,904		0.4	%		16.1	%
Cooling Degree-Days		317		233		256		36.1	%		23.8	%


Number of Electric Customers	2015		2014		Number of Gas Customers	2015		2014
Residential		1,132,325		1,123,804	Residential		614,168		612,202
Small Commercial & Industrial		112,951		112,827	Commercial & Industrial		44,004		44,019

Large Commercial & Industrial		11,820		11,660	Total Retail		658,172		656,221
Public Authorities & Electric Railroads		286		290	Transportation		—		—

Total		1,257,382		1,248,581	Total		658,172		656,221

(a)

Reflects delivery volumes and revenues from customers purchasing electricity directly from BGE and customers purchasing electricity from a competitive electric generation supplier as all customers are assessed distribution charges. For customers purchasing electricity from BGE, revenue also reflects the cost of energy and transmission.

(b)	Other revenue includes wholesale transmission revenue and late payment charges.

(c)

Reflects delivery volumes and revenues from customers purchasing natural gas directly from BGE and customers purchasing natural gas from a competitive natural gas supplier as all customers are assessed distribution charges. For customers purchasing natural gas from BGE, revenue also reflects the cost of natural gas.

(d)

Transportation and other gas revenue includes off-system revenue of 585 mmcfs ($3 million) and 875 mmcfs ($5 million) for the three months ended June 30, 2015 and 2014, respectively and 3,909 mmcfs ($25 million) and 7,204 mmcfs ($58 million) for the six months ended June 30, 2015 and 2014, respectively.