v3.26.3
Income Taxes (Tables)
 9 Months Ended
Sep. 30, 2026
Income Tax Disclosure [Abstract]  
Schedule of Effective Income Tax Rate Reconciliation
The effective income tax rate from continuing operations varies from the U.S. federal statutory rate principally due to the following:
Three Months Ended September 30, 2026(a)(b)
ExelonComEd
PECO(c)
BGE
U.S. Federal statutory rate$186 21.0 %$115 21.0 %$36 21.0 %$24 21.0 %
Increase (decrease) due to:
State income taxes, net of Federal income tax benefit
48 5.4 40 7.3 (2)(1.2)7 6.2 
Tax credits(1)(0.1)1 0.2 — — (1)(0.9)
Change in Unrecognized Tax Benefits
2 0.2 — — — — — — 
Nontaxable or nondeductible items
(10)(1.1)1 0.2 — — — — 
Other Adjustments
Plant Basis differences(36)(4.0)(6)(1.1)(24)(13.9)(2)(1.8)
Excess deferred tax
(35)(4.0)(10)(1.8)(2)(1.3)(5)(4.1)
Amortization of ITC, net deferred taxes
— — (1)(0.2)— — — — 
Effective Tax Rate
$154 17.4 %$140 25.6 %$8 4.6 %$23 20.4 %
Three Months Ended September 30, 2026(a)(b)
PHI
PEPCO(d)
DPLACE
U.S. Federal statutory rate$49 21.0 %$7 21.0 %$17 21.0 %$25 21.0 %
Increase (decrease) due to:
State income taxes, net of Federal income tax benefit
17 7.3 2 5.6 4 5.0 8 6.6 
Tax credits(1)(0.4)(1)(2.8)— — — — 
Change in Unrecognized Tax Benefits
— — — — — — — — 
Nontaxable or nondeductible items
— — — — — — — — 
Other Adjustments
Plant Basis differences(3)(1.3)(2)(5.6)— — — — 
Excess deferred tax
(16)(6.9)(10)(29.3)(2)(2.2)(1)(1.4)
Amortization of ITC, net deferred taxes
— — — — — — — — 
Effective Tax Rate
$46 19.7 %$(4)(11.1)%$19 23.8 %$32 26.2 %

Three Months Ended September 30, 2025(a)(b)
Exelon
ComEd(e)
PECO(c)
BGE
U.S. Federal statutory rate$217 21.0 %$96 21.0 %$54 21.0 %$22 21.0 %
Increase (decrease) due to:
State income taxes, net of Federal income tax benefit
58 5.6 34 7.5 (3)(1.2)7 6.7 
Tax credits(4)(0.4)(1)(0.2)— — — — 
Nontaxable or nondeductible items
4 0.4 1 0.2 — — — — 
Other Adjustments
Plant Basis differences(52)(5.0)(4)(0.9)(41)(15.8)(1)(1.0)
Excess deferred tax
(68)(6.6)(42)(9.2)(5)(2.0)(5)(4.8)
Amortization of ITC, net deferred taxes
— — (1)(0.2)— — — — 
Effective Tax Rate
$155 15.0 %$83 18.2 %$5 2.0 %$23 21.9 %
Three Months Ended September 30, 2025(a)(b)
PHIPEPCODPLACE
U.S. Federal statutory rate$78 21.0 %$41 21.0 %$15 21.0 %$23 21.0 %
Increase (decrease) due to:
State income taxes, net of Federal income tax benefit
25 6.6 13 6.6 5 6.9 8 7.2 
Tax credits(1)(0.3)— — (1)(1.4)(1)(0.9)
Nontaxable or nondeductible items
— — (1)(0.5)— — — — 
Other Adjustments
Plant Basis differences(2)(0.5)(2)(1.0)— — — — 
Excess deferred tax
(15)(4.2)(10)(5.3)(2)(2.9)(1)(1.2)
Amortization of ITC, net deferred taxes
— — — — — — — — 
Effective Tax Rate
$85 22.6 %$41 20.8 %$17 23.6 %$29 26.1 %
__________
(a)Positive amounts and percentages represent income tax expense. Negative amounts and percentages represent income tax benefit.
(b)The Registrants had no adjustments to the following disclosure categories: Foreign Tax Effects, Effects of Changes in Tax Law or Rates Enacted in the Current Period, Effects of Cross-Border Tax Laws, and Changes in Valuation Allowances.
(c)For PECO, the lower effective tax rate is primarily related to state income taxes, net of federal income tax benefit and plant basis differences attributable to tax repair deductions.
(d)For Pepco, the lower effective tax rate is primarily attributable to lower pre-tax earnings due to the unfavorable impacts of the Pepco Electric Base Rate Case’s disallowance of capitalized costs.
(e)For ComEd, the lower effective tax rate is primarily due to CEJA which resulted in the acceleration of certain income tax benefits being provided to customers.

Nine Months Ended September 30, 2026(a)(b)
ExelonComEd
PECO(c)
BGE
U.S. Federal statutory rate$525 21.0 %$271 21.0 %$124 21.0 %$118 21.0 %
Increase (decrease) due to:
State income taxes, net of Federal income tax benefit
142 5.7 95 7.4 (6)(1.0)34 6.0 
Tax credits(6)(0.2)(2)(0.2)— — (2)(0.4)
Change in Unrecognized Tax Benefits
(15)(0.6)(2)(0.2)— — (1)(0.2)
Nontaxable or nondeductible items
6 0.2 2 0.3 1 0.2 1 0.3 
Other Adjustments
Plant Basis differences(110)(4.4)(15)(1.2)(79)(13.3)(10)(1.8)
Excess deferred tax
(87)(3.5)(24)(1.9)(9)(1.7)(21)(3.7)
Amortization of ITC, net deferred taxes
(1)— (1)(0.1)— — — — 
Effective Tax Rate
$454 18.2 %$324 25.1 %$31 5.2 %$119 21.2 %
Nine Months Ended September 30, 2026(a)(b)
PHI
PEPCO(d)
DPLACE
U.S. Federal statutory rate$124 21.0 %$42 21.0 %$45 21.0 %$39 21.0 %
Increase (decrease) due to:
State income taxes, net of Federal income tax benefit
40 6.8 12 5.9 13 6.1 13 7.0 
Tax credits(2)(0.3)(1)(0.5)— — — — 
Change in Unrecognized Tax Benefits
— — — — — — — — 
Nontaxable or nondeductible items
1 0.2 — — — — — — 
Other Adjustments
Plant Basis differences(6)(1.0)(4)(2.0)(1)(0.5)— — 
Excess deferred tax
(32)(5.5)(20)(10.0)(8)(3.6)(4)(2.3)
Amortization of ITC, net deferred taxes
— — — — — — — — 
Effective Tax Rate
$125 21.2 %$29 14.4 %$49 23.0 %$48 25.7 %

Nine Months Ended September 30, 2025(a)(b)
Exelon
ComEd(e)
PECO(c)
BGE
U.S. Federal statutory rate$540 21.0 %$232 21.0 %$142 21.0 %$106 21.0 %
Increase (decrease) due to:
State income taxes, net of Federal income tax benefit
143 5.6 83 7.5 (15)(2.2)32 6.3 
Tax credits(11)(0.5)(5)(0.5)— — (2)(0.4)
Nontaxable or nondeductible items
9 0.4 1 0.1 1 0.1 — — 
Other Adjustments
Plant Basis differences(118)(4.6)(10)(0.9)(94)(13.9)(7)(1.4)
Excess deferred tax
(166)(6.5)(99)(8.9)(11)(1.6)(21)(4.2)
Amortization of ITC, net deferred taxes
(1)— (1)(0.1)— — — — 
Effective Tax Rate
$396 15.4 %$201 18.2 %$23 3.4 %$108 21.3 %

Nine Months Ended September 30, 2025(a)(b)
PHIPEPCODPLACE
U.S. Federal statutory rate$170 21.0 %$89 21.0 %$45 21.0 %$39 21.0 %
Increase (decrease) due to:
State income taxes, net of Federal income tax benefit
54 6.7 27 6.3 14 6.6 13 7.0 
Tax credits(3)(0.4)(1)(0.2)(1)(0.5)(1)(0.5)
Nontaxable or nondeductible items
1 0.1 — — — — — — 
Other Adjustments
Plant Basis differences(5)(0.6)(4)(0.9)(1)(0.5)— — 
Excess deferred tax
(33)(4.1)(22)(5.3)(8)(3.5)(3)(1.7)
Amortization of ITC, net deferred taxes
— — — — — — — — 
Effective Tax Rate
$184 22.7 %$89 20.9 %$49 23.1 %$48 25.8 %
__________
(a)Positive amounts and percentages represent income tax expense. Negative amounts and percentages represent income tax benefit.
(b)The Registrants had no adjustments to the following disclosure categories: Foreign Tax Effects, Effects of Changes in Tax Law or Rates Enacted in the Current Period, Effects of Cross-Border Tax Laws, and Changes in Valuation Allowances.
(c)For PECO, the lower effective tax rate is primarily related to plant basis differences attributable to tax repair deductions.
(d)For Pepco, the lower effective tax rate is primarily attributable to lower pre-tax earnings due to the unfavorable impacts of the Pepco Electric Base Rate Case’s disallowance of capitalized costs.
(e)For ComEd, the lower effective tax rate is primarily due to CEJA which resulted in the acceleration of certain income tax benefits.
State and Local Jurisdictions
The state and local jurisdictions that comprise the majority of the effect of the state and local income tax, net of federal income taxes category by Registrant are presented below:
20262025
ExelonIL, MDIL, MD
ComEdILIL
PECOPAPA
BGEMDMD
PHIMD, NJMD, NJ
PepcoMDMD
DPLDEDE
ACENJNJ
Schedule of Unrecognized Tax Benefits Roll Forward
Exelon, PHI and DPL have the following unrecognized tax benefits at September 30, 2026 and December 31, 2025. ComEd's, PECO's, BGE's, Pepco's, and ACE's amounts are not material.
Exelon(a)
PHIDPL
September 30, 2026$88 $54 $18 
December 31, 2025100 48 11 
__________
(a)At September 30, 2026 and December 31, 2025, Exelon's unrecognized tax benefits are inclusive of $20 million and $31 million, respectively, related to Constellation's share of unrecognized tax benefits for periods prior to the separation. Exelon reflected an offsetting receivable of $20 million and $31 million in Other deferred debits and other assets in the Consolidated Balance Sheet for these amounts.
Allocation of Federal Tax Benefit Under Tax Sharing Agreement
The following table presents the allocation of tax benefits from Exelon under the Tax Sharing Agreement, for the three and nine months ended September 30, 2026, and 2025.
ComEdPECOBGEPHIPepcoDPLACE
September 30, 2026$125 $27 $(3)$21 $8 $9 $3 
September 30, 202520 14 12 23 12 7 4