EXELON CORPEXC

EXELON CORP Leases Disclosure

10-KFiled Feb 12, 20268 min read
Leases (All Registrants)
Lessee
The Registrants have operating and finance leases for which they are the lessees. The following tables outline the significant types of leases at each of the Registrants and other terms and conditions of the lease agreements as of December 31, 2025. Exelon, ComEd, PECO, and BGE did not have material finance leases in 2025, 2024, or 2023.
Exelon ComEdPECOBGE PHIPepcoDPLACE
Real estate●●●●●●●●
Vehicles and equipment●●●●●●
(in years)Exelon ComEdPECOBGEPHIPepcoDPLACE
Remaining lease terms1-801-271-91-801-71-71-71-7
Options to extend the term3-30N/AN/A3-53-3053-30N/A
Options to terminate within2-7N/AN/A2N/AN/AN/AN/A
The components of operating lease costs were as follows:
Exelon ComEdPECOBGEPHIPepcoDPLACE
For the year ended December 31, 2025
Operating lease costs$47 $— $— $7 $31 $12 $9 $6 
Variable lease costs7 — — — 1 — 1 — 
Total lease costs(a)
$54 $— $— $7 $32 $12 $10 $6 
For the year ended December 31, 2024
Operating lease costs$57 $— $— $8 $41 $10 $10 $5 
Variable lease costs9 — — — 3 1 1 1 
Total lease costs(a)
$66 $— $— $8 $44 $11 $11 $6 
For the year ended December 31, 2023
Operating lease costs$58 $1 $— $5 $43 $11 $11 $6 
Variable lease costs9 1 — — 3 1 1 1 
Total lease costs(a)
$67 $2 $— $5 $46 $12 $12 $7 
__________
(a)Excludes sublease income recorded at Exelon, PHI, and DPL of $4 million for the years ended December 31, 2025, 2024, and 2023.
The components of financing lease costs were as follows:
PHIPepcoDPLACE
For the year ended December 31, 2025
Amortization of ROU asset$21 $7 $8 $6 
Interest on lease liabilities6 2 2 2 
Total finance lease cost$27 $9 $10 $8 
For the year ended December 31, 2024
Amortization of ROU asset$18 $7 $7 $4 
Interest on lease liabilities6 2 2 2 
Total finance lease cost$24 $9 $9 $6 
For the year ended December 31, 2023
Amortization of ROU asset$16 $6 $6 $4 
Interest on lease liabilities6 2 2 1 
Total finance lease cost$22 $8 $8 $5 
The following tables provide additional information regarding the presentation of operating and finance lease ROU assets and lease liabilities within the Registrants’ Consolidated Balance Sheets:
Operating Leases
Exelon ComEdPECOBGE
PHI(a)
PepcoDPLACE
At December 31, 2025
Operating lease ROU assets
Other deferred debits and other assets$139 $— $1 $17 $54 $22 $23 $5 
Operating lease liabilities
Other current liabilities$19 $— $— $3 $10 $4 $5 $1 
Other deferred credits and other liabilities146 — 1 13 55 22 28 5 
Total operating lease liabilities$165 $— $1 $16 $65 $26 $33 $6 
At December 31, 2024
Operating lease ROU assets
Other deferred debits and other assets$224 $— $— $24 $127 $26 $27 $7 
Operating lease liabilities
Other current liabilities$38 $— $— $3 $30 $5 $6 $3 
Other deferred credits and other liabilities217 — — 16 116 25 32 5 
Total operating lease liabilities$255 $— $— $19 $146 $30 $38 $8 
__________
(a)On April 15, 2025, PHI purchased an office building and land in the District of Columbia for $177 million which it had been leasing. PHI's operating lease liability and operating lease ROU asset amounts for the office building and land were $64 million and $47 million, respectively, at the time of the purchase. In conjunction with the purchase, the lease has been terminated and the difference of $17 million between the operating lease liability and operating lease ROU asset were recorded as an adjustment to the carrying value of the purchased assets.

Finance Leases
PHIPepcoDPLACE
At December 31, 2025
Finance lease ROU assets
Plant, property and equipment, net$68 $23 $25 $20 
Finance lease liabilities
Long-term debt due within one year$19 $7 $7 $5 
Long-term debt53 18 20 15 
Total finance lease liabilities$72 $25 $27 $20 
At December 31, 2024
Finance lease ROU assets
Plant, property and equipment, net$72 $26 $26 $20 
Finance lease liabilities
Long-term debt due within one year$17 $6 $7 $4 
Long-term debt58 21 21 16 
Total finance lease liabilities$75 $27 $28 $20 
Future minimum lease payments for operating and finance leases as of December 31, 2025 were as follows:
Operating Leases
YearExelon ComEdPECOBGEPHIPepcoDPLACE
2026$26 $— $1 $4 $13 $5 $6 $2 
202724 — — 2 12 4 7 2 
202824 — — 3 11 4 6 1 
202924 — — 3 11 4 6 1 
203024 — — 3 11 4 6 1 
Remaining years91 — — 18 21 9 12 — 
Total213 — 1 33 79 30 43 7 
Interest48 — — 17 14 4 10 1 
Total operating lease liabilities$165 $— $1 $16 $65 $26 $33 $6 

Finance Leases
YearPHIPepcoDPLACE
2026$21 $8 $8 $6 
202719 7 7 5 
202815 5 6 4 
202912 4 5 2 
20307 2 2 2 
Remaining years6 1 2 3 
Total80 27 30 22 
Interest8 2 3 2 
Total finance lease liabilities$72 $25 $27 $20 
The weighted average remaining lease terms, in years, for operating and finance leases were as follows:
Operating Leases
Exelon ComEdPECOBGEPHIPepcoDPLACE
At December 31, 20259.3—6.419.26.26.66.33.2
At December 31, 20248.21.75.317.45.37.16.93.1
Finance Leases
PHIPepcoDPLACE
At December 31, 20254.14.03.94.4
At December 31, 20244.44.44.24.5
The weighted average discount rates for operating and finance leases were as follows:
Operating Leases
ExelonComEdPECOBGEPHIPepcoDPLACE
At December 31, 20253.9 %— %4.4 %5.0 %4.2 %4.2 %4.2 %4.2 %
At December 31, 20244.0 %0.8 %2.8 %5.0 %4.2 %4.1 %4.1 %3.9 %
Finance Leases
PHIPepcoDPLACE
At December 31, 20253.8 %3.8 %3.6 %3.9 %
At December 31, 20243.4 %3.5 %3.1 %3.5 %
Cash paid for amounts included in the measurement of operating and finance lease liabilities were as follows:
Operating Cash Flows from Operating Leases
ExelonComEdPECOBGEPHIPepcoDPLACE
For the year ended December 31, 2025$35 $— $— $4 $22 $6 $7 $3 
For the year ended December 31, 202448 — — 4 35 7 7 3 
For the year ended December 31, 202365 2 — 15 37 7 9 3 
Financing Cash Flows from Finance Leases
PHIPepcoDPLACE
For the year ended December 31, 2025$20 $7 $8 $5 
For the year ended December 31, 202417 6 7 4 
For the year ended December 31, 202315 5 6 4 
ROU assets obtained in exchange for operating and finance lease obligations were as follows:
Operating Leases
ExelonComEdPECOBGEPHIPepcoDPLACE
For the year ended December 31, 2025$3 $— $— $— $3 $1 $2 $— 
For the year ended December 31, 20248 — — 1 5 1 2 2 
For the year ended December 31, 202335 — — 32 3 — 1 2 
Finance Leases
PHIPepcoDPLACE
For the year ended December 31, 2025$15 $4 $6 $5 
For the year ended December 31, 202415 7 4 4 
For the year ended December 31, 202311 5 3 3 
Lessor
The Registrants have operating leases for which they are the lessors. The following tables outline the significant types of leases at each of the Registrants and other terms and conditions of their lease agreements as of December 31, 2025. ACE did not have any operating leases for which they are the lessors for the years ended December 31, 2025, 2024, and 2023.
Exelon ComEdPECOBGEPHIPepcoDPL
Real estate●●●●●●●
(in years)Exelon ComEdPECOBGEPHIPepcoDPL
Remaining lease terms1-771-111-77171-716-7
Options to extend the term1-795-791-50N/AN/AN/AN/A
The components of lease income were as follows:
Exelon ComEdPECOBGEPHIPepcoDPL
For the year ended December 31, 2025
Operating lease income$5 $— $— $— $4 $— $4 
Variable lease income1 — — — 1 — 1 
For the year ended December 31, 2024
Operating lease income$4 $— $— $— $4 $— $3 
Variable lease income1 — — — 1 — 1 
For the year ended December 31, 2023
Operating lease income$5 $— $— $— $4 $— $3 
Variable lease income1 — — — 1 — 1 
Future minimum lease payments to be recovered under operating leases as of December 31, 2025 were as follows:
YearExelon ComEdPECOBGEPHIPepcoDPL
2026$7 $1 $1 $— $5 $— $4 
20277 — 2 — 5 — 4 
20286 — 1 — 5 — 5 
20296 — 1 — 4 — 5 
20305 — 1 — 4 — 4 
Remaining years17 — 7 1 9 — 9 
Total $48 $1 $13 $1 $32 $— $31 

About Leases Disclosures

Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.

Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.

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