“Finally, we reaffirm our expectation to deliver annualized earnings growth near the top end of 5% to 7% from 2025 through 2029, supported by 7.9% annualized rate base growth, disciplined cost management, and a balanced financing plan that maintains strong investment-grade credit metrics.”

In context

“Jeanne Jones (Chief Financial Officer): Thank you, Calvin, and good morning, everyone. Today, I will cover our second quarter financial results and key regulatory activity, discuss solutions we are advancing to support affordability and resource adequacy, and conclude with an update on our balance sheet and financing progress. Starting on Slide 5, we present our quarter-over-quarter adjusted operating earnings walk. Exelon earned $0.43 per share in the second quarter of 2026 compared to $0.39 per share in the same period in 2025. Results were higher by $0.04 per share year over year, primarily driven by $0.04 of distribution and transmission rates, net of depreciation and AFUDC, $0.04 related to last year’s Customer Relief Fund, and $0.01 of favorable weather at PECO. This was offset by $0.02 of higher credit loss expense at BGE and $0.02 of interest at corporate and PECO. Our second quarter performance is in line with the expectations we discussed on the first quarter call and continues to demonstrate the value of disciplined execution across the platform. We are delivering on customer-focused investments that support top-quartile reliability while managing costs and timing items within the full-year plan. Looking ahead to the third quarter, we expect earnings to be approximately 27% of the midpoint of our projected full-year earnings guidance range. This expectation contemplates the impact of weather, storms, and the PECO employee strike at the beginning of July, as well as normal weather and storm activity through the remainder of the quarter. As with historical practice, our quarterly shaping guidance also assumes anticipated revenue shaping and timing of costs across the utilities. Combined with results for the first half of the year, we anticipate the fourth quarter to benefit from the absence of one-time 2025 distribution and transmission rates, the unwinding of timing, and disciplined execution of bad debt and storm recovery efforts. We remain on track to deliver full-year operating earnings of $2.81 to $2.91 per share, with the goal of being at the midpoint or better. Finally, we reaffirm our expectation to deliver annualized earnings growth near the top end of 5% to 7% from 2025 through 2029, supported by 7.9% annualized rate base growth, disciplined cost management, and a balanced financing plan that maintains strong investment-grade credit metrics. Turning to Slide 6, I will review the open base rate cases and other regulatory activity across the platform. These proceedings reflect our continued focus on recovering prudent investments that support safe, reliable service while advancing proposals that are responsive to customer affordability and the policy priorities of our jurisdictions. Starting with Pepco Maryland, where a final order is expected next month for its traditional electric base rate case, this filing seeks recovery of critical investments that support reliability, accommodate growing customer needs, and strengthen the resiliency of the electric system, while also reflecting the impact of higher financing costs. Projects such as the White Flint Substation are tangible examples of work being done to increase capacity, reduce outage risk, and support long-term growth and economic development in the communities we serve. Also in Maryland, BGE filed an electric distribution rate case on July 2, seeking a $156.1 million revenue requirement increase to recover investments and costs necessary to maintain a safe and reliable grid under a historic test year. The filing also reflects revised financing and storm restoration costs and includes proposals to establish a storm recovery mechanism and provide customers with additional payment flexibility. A final order is anticipated in January 2027. In Delaware, Delmarva Power’s electric base rate case continues to progress. DPL is seeking a $45.4 million revenue requirement increase to support investments necessary to maintain safe and reliable service, including system upgrades and reliability investments across its service territory. The filing also includes proposals designed to support affordability, including a new income-based rate and a bad debt rider. As permitted by Delaware law, DPL implemented interim rates effective July 9, subject to refund. A final order is expected in the third quarter of 2027. Finally, at ComEd, the grid plan proceeding continues to move forward, with staff and intervenor rebuttal testimony filed earlier this month ahead of hearings in August. As a reminder, the plan proposes approximately $15.3 billion of investment through 2031 to support reliability, accommodate significant load growth, and advance the objectives of Illinois’ energy policy framework. An order is expected by December 15. Across these proceedings, our approach remains consistent. We are investing to support reliability, resiliency, and customer needs while remaining focused on affordability and cost discipline. While our base regulatory filings remain focused on maintaining safe, reliable, and affordable service, we continue to advance additional solutions to help address growing affordability and reliability challenges, particularly in light of supply constraints highlighted by the recent PJM auction. Turning to Slide 7, practical and deployable resources, such as storage and virtual power plants, can provide capacity, reduce congestion, and help manage price volatility while supporting each state’s energy goals. Today, roughly 10 gigawatts of solar and wind across PJM go unused on any given day. Storage can capture excess generation and shift it to peak-demand periods, turning surplus clean energy into reliable, high-value supply. Unlike many traditional solutions that can take five to 10 years or longer to develop, battery storage is a faster, scalable, and modular option that can often be deployed within approximately three years, even for large-scale batteries. In New Jersey, Atlantic City Electric, partnered with Invenergy, has advanced a 500-megawatt battery energy storage system using four-hour batteries to target roughly five peak-demand days a year in Pittsgrove. The project will be large enough to power approximately 400,000 homes and represents the single-largest battery storage installation in PJM. The Pittsgrove storage project was submitted in PJM Cycle 1 and represents approximately $1 billion in investment not currently reflected in our plan. Combined with anticipated PJM market revenues, all of which will be returned entirely to customers, federal tax credits, the mitigation of energy and capacity prices, and deferred transmission investment, customers will see over $700 million in net benefits after the project is placed into service, importantly, without seeing any customer bill impact until at least 2035. Atlantic City Electric filed a request last week for regulatory approval of the mechanism to recover project costs, with a final order anticipated in the first half of 2027. In addition, we are pursuing similar opportunities in Maryland, where BGE and Pepco have submitted battery storage projects as part of the state’s distributed connected storage solicitation, which are currently under commission review. Beyond storage, we are also advancing virtual power plant initiatives across our jurisdictions, which aggregate customer-sited resources to reduce peak demand, support grid reliability, and lower overall system costs. At ComEd, the approval to launch its first scheduled-dispatch VPP program is expected to increase the amount of battery storage available across Northern Illinois while providing compensation to participating customers. When paired with existing distributed generation rebates and incentives, the program creates a compelling customer value proposition while helping support the grid. Maryland also recently approved programs to allow a range of customer-sited assets to act as grid assets, and we continue to see momentum in New Jersey and Delaware as policymakers continue advancing distributed energy resource and VPP frameworks. Together with continued transmission and distribution investment, these solutions provide practical tools to address affordability, reliability, and resource adequacy needs across our jurisdictions. Turning to Slide 8, we continue to execute our financing plan in a balanced and disciplined manner. Maintaining a strong balance sheet is core to our strategy and essential to funding the investment needed to deliver safe, reliable, and affordable service for our customers. To date, we have completed approximately 86% of our 2026 debt financing needs, including all expected debt issuances at the holding company, Pepco Holdings, ComEd, and BGE, materially reducing our remaining exposure to interest rate volatility for the year. In addition, our pre-issuance hedging strategy continues to provide protection against future rate movements. We have already priced approximately 37% of our planned equity needs through 2029 via forward contracts under our ATM program, having priced all of our needs for 2026 and half of our needs for 2027. Our credit metric outlook also remains strong, with expected average credit metrics of approximately 14% through 2029, supporting the strategic and financial flexibility needed to advance our capital plan and capture additional customer-driven growth opportunities. We remain confident in our ability to deliver value for our customers and shareholders through disciplined execution, a strong balance sheet, and investments that support reliable, resilient, and affordable energy service. I will now turn the call back to Calvin for closing remarks.”