EXC (EXC)

“Looking ahead to the third quarter, we expect earnings to be approximately 27% of the midpoint of our projected full-year earnings guidance range.”

“And, importantly, our $41 billion of capital between now and 2029 remains unchanged due to this update because we have not put in speculative projects.”

“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.”

“earning a consolidated operating ROE of between 9% and 10%”

“In 2026, we remain focused on deploying approximately $10 billion of capital for the benefit of customers, delivering operating earnings of $2.81 to $2.91 per share, earning a consolidated operating ROE of between 9% and 10%, and maintaining a strong and resilient balance sheet.”

“supported by 7.9% annualized rate base growth”

“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.”

“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.”

“This morning, we reported adjusted operating earnings of $0.43 per share, consistent with expectations, and are reaffirming our full-year guidance of $2.81 to $2.91 per share.”

“We expect to hear back from MISO in the fourth quarter.”

“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.”

“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.”

“Operationally, we continue to lead the industry, with all utilities projecting top-quartile reliability and ComEd and PHI projected in the top decile.”

“Evidentiary hearings were held last week, and a final order is expected in August.”

“DPL expects to be able to implement interim rates in effect in July.”

“Looking ahead to next quarter, we expect second quarter earnings to be approximately 15% of the midpoint of our projected full-year earnings guidance range, which contemplates normal weather and storm activity and anticipated revenue shaping and timing for the quarter.”

“You should expect Exelon Corporation to continue engaging competitively and with discipline in future transmission windows across PJM and other ISOs, including two additional bids expected later this month.”

“We are committed to our earnings results through 2029.”

“In combination with Q1 results, this would result in recognizing 47% of projected full-year earnings in the first half of the year, in line with seasonal shaping in prior years and allowing us to remain on track for full-year operating earnings of $2.81 to $2.91 per share, with the goal to be at the midpoint or better.”

“We remain committed to managing the portfolio as one Exelon Corporation and are leveraging our dedicated team to identify another $350 million of savings in 2027.”

“We are confident in our ability to drive expense growth well below inflation.”

“Despite the rebalance of capital, we are maintaining a revised annualized rate base growth of 7.9% over the next four years,”

“we are reaffirming our 2026 adjusted operating earnings guidance of $2.81 to $2.91 per share and our long-term operating earnings growth outlook from 2025 to 2029 near the top end of the 5% to 7% range.”

“We are also affirming our 2026 operating earnings guidance of $2.81 to $2.91 per share.”

“In 2026, we expect to deploy approximately $10 billion of capital for the benefit of our customers, earn a consolidated 9% to 10% ROE, and deliver operating earnings of $2.81 to $2.91 per share with a goal of achieving midpoint or better, while maintaining a strong and resilient balance sheet.”

“We continue to identify opportunities to mitigate risk in our plan and expect to maintain financial flexibility above our downgrade thresholds, targeting credit metrics of 14% over the planning period.”

“Through 2029, we expect to fund the revised $47.17 billion capital plan with about $21.8 billion of internally generated cash flow, $13.1 billion of debt at the utilities, and $3.4 billion of holding company debt.”

“We are committed to ensuring that we maintain financial flexibility and strong credit metrics over the guidance period, targeting approximately 14% at Moody's and S&P.”

“In addition to nearly flat expense growth from 2024 to 2026, we are now targeting no more than 2% adjusted O&M growth through 2029.”

“We now anticipate transmission rate base growing at 16% through 2029 and are maintaining our previous upside guidance of $12 billion to $17 billion, which does not include our recent competitive transmission bids in MISO or potential solar or storage opportunities.”

“Our revised four-year capital plan reflects these priorities by rebalancing investment, enabling us to invest nearly $10 billion in 2026 and a total of $41.7 billion over the next four years for the benefit of our customers.”

“delivering $350 million of incremental O&M savings in 2027 tied to work we will no longer pursue.”

“A final order is expected in August.”

“Looking ahead to the first quarter, we expect earnings to be approximately 31% of the midpoint of our projected full-year earnings guidance range, which is in line with historical averages.”

“We feel confident we can continue to keep our expense growth well below inflation levels, demonstrating nearly flat expense growth from 2024 to 2026 and targeting no more than 2.5% adjusted O&M growth through 2029.”

“we now have line of sight to an additional $12 billion to $17 billion transmission opportunities over the next decade that strengthen and lengthen our plan”

“our size, scale, and expertise in owning and operating 765 kV lines uniquely position us to capitalize on additional transmission opportunities that enable us to grow our transmission rate base CAGR by over 15% from 2025 through the end of the guidance period.”

“You should expect us to be active in future windows within PJM and other ISOs, leveraging our competitive advantages where appropriate.”

“For 2026, we are initiating operating earnings guidance of $2.81 to $2.91 per share.”

“We do believe we are going to get a lessons learned. I know the team has been talking to the commission and the new chair. We have worked with him as a former state senator. He understands the need for this. We do believe we will get a lessons learned, and I wish I could give you a timeline, but we do believe it will happen in 2026.”

“I think you can expect that, if not slightly better, but it is going to take some time for some of these, you know, transmission projects to close.”

“If you look at that and how much we are growing transmission over that period, that will get you to kind of the near top end, Nick.”

“We anticipate delivering operating earnings of $2 and 81 to $2.91 per share with the goal of being midpoint or better.”

“In 2026, we expect to deploy $10 billion in capital, earning a consolidated 9% to 10% operating ROE.”

“target credit metrics of 14% over the planning period provide 100 to 200 basis points of financial flexibility on average over our downgrade thresholds at S&P and Moody’s throughout our guidance period.”

“Specifically, our total equity needs of $3.4 billion over the four-year plan implies approximately $850 million of annualized equity needs, less than 2% of Exelon Corporation's annual market cap.”

“Through 2029, we expect to fund the $41.3 billion capital plan with $22 billion of internally generated cash flow, $13 billion of debt at the utilities, and $3 billion of total debt at the holding company, with the balance funded with a modest amount of equity.”

“We also continue to project an annual dividend growth at 5% and anticipate paying out a dividend of $1.68 per share in 2026 in line with that growth.”

“we expect to deliver the out years near the top end of the 5%–7% range, allowing for flexibility of rate case timing and keeping us on track to deliver near the top end of our 5% to 7% annualized growth rate from 2025 to 2029.”

“we are projecting compounded annual earnings growth near the top end of 5% to 7% from our 2025 guidance midpoint of $2.69 per share through 2029.”

“Our annualized rate base growth of 7.9% over the next four years reflects an increase from the prior year plan, with a projected addition of nearly $23 billion in rate base from 2025 to 2029.”

“A final order is expected in December, and the company expects to file its next rate filing in 2027.”

“With much of our growth aligned with completed rate cases and continued strong cost management, the 2026 implied midpoint relative to the midpoint of our 2025 estimated guidance range is ahead of previous disclosures, reflecting midpoint-to-midpoint growth above 6%.”

“With continued returns on equity in the 9% to 10% range, we expect rate base growth of approximately 8% and annualized earnings growth of 5% to 7% through 2029, with the expectation of being near the top end of that range.”

“We continue to see robust demand in our jurisdictions, with anticipated load growth exceeding 3% through 2029.”

“Looking ahead, we now expect to invest $41.3 billion of capital to support our customers, with more than 70% of the plan-over-plan increase driven by transmission”

“We are hopeful that we have final, final resolution here in the near term.”

“And by the spring, it will be PECO's largest customer on their site.”

“We look forward to closing out 2025 strong, earning an ROE aligned with allowed levels in the 9% to 10% range and delivering against our guidance of $2.64 to $2.74 per share, always with the goal of midpoint or better while maintaining a strong balance sheet.”

“As we close out the year in the fourth quarter, we remain on track to achieve operating earnings of $2.64 to $2.74 per share with the goal of delivering at midpoint or better.”

“We continue to reaffirm our operating earnings guidance for 2025 of $2.64 to $2.74 per share, and we look forward to closing out the year strong.”

“Per Statute, an order is expected from the Maryland Public Service Commission in August of 2026.”

“We'll know more about those proposals by the end of the year. And once we have certainty on those, those will come in, and we'll put them in the plan so that you don't have to speculate or probability weight some of them that once they're in, you know that we feel very certain about them.”

“And we do anticipate that, that will happen by the end of the year.”

“We think we'll have clarity there by the end of the year on some of that, roll that into the Q4 update.”

“An ALJ-proposed order is expected later today, and the ICC will issue a final order by December 20.”

“We continue to anticipate an order by the end of the year.”

“We anticipate an order in the first quarter of '26.”

“Our fourth quarter guidance assumes a reversal of timing, including O&M, distribution earnings at ComEd and PECO taxes; fair and reasonable outcomes for open rate case proceedings, including reconciliations at BGE, Pepco, Maryland and ComEd; and normal weather and storm activity.”

“We always aim to be at that 7% to 8% to drive the 5% to 7%. And I think this just positions us well to execute in the upper portion of that 7% to 8%.”

“For example, we continue to focus a dedicated team on pulling cost out of our business to keep cost growth below inflation.”

“Finally, we reaffirm our annualized operating earnings growth rate of 5% to 7% through 2028 with the expectation to be at the midpoint or better of that range.”

“With rate base growth of 7.4% through 2028 and a balanced financing plan, we expect to grow our earnings at an annualized rate of 5% to 7% with the expectation of always delivering at the midpoint or better of that range.”

“Yes. We want to stay on that path to 14%, as we mentioned. So this would be good momentum towards that 14% by the end of the planning period.”

“In line with our last earnings call, we continue to project 100 to 200 basis points of financial flexibility on average over the Moody's downgrade threshold of 12%, approaching 14% at the end of our guidance period.”

“With no project greater than 3% of our 4-year plan, we are focused on bringing all of our customers along at the appropriate pace while also ensuring we can earn a fair return of 9% to 10% on the equity capital provided by our investors.”

“As we look towards the end of the year, we remain on track for full year operating earnings of $2.64 to $2.74 per share, with the goal to be at midpoint or better.”

“This keeps us on track to deliver on our operating earnings guidance for 2025 of $2.64 to $2.74 per share.”

“So you see across our jurisdictions, we see anywhere from $1.5 to $4 increase going across the system.”

“But we anticipate the BGE bill impacts, and I'm looking at Tamla Olivier, the CEO of BGE, of roughly $1.5 going into our BGE customers.”

“The only thing I would add is timing, as Calvin, as you mentioned, so we've got active cluster studies going in Illinois. We've got active cluster studies going in the Mid-Atlantic. We expect results in the third, fourth quarter.”

“An order is expected by the end of the year.”

“Following intervenor testimony, the case will be open for rebuttal testimony in September before evidentiary hearings are held in November, an order is expected in the first quarter of 2026.”

“We continue to be well positioned to be assigned over $1 billion of transmission work associated with the MISO Tranche 2.1 set of projects.”

“But what we have outlined is as we think about those megawatts, we think about 10% of that load will be online by 2028, another 1/3 by 2030 and then 3/4 of it by 2034.”

“By putting our customers at the center of everything we do, we are confident we can earn a fair return on our investment and maintain a balanced funding strategy that enables delivery not only on 2025 guidance, but also on our long-term growth rate of 5% to 7%.”

“The expansive work needed across all aspects of the grid gives us strong confidence in our 4-year outlook and beyond, investing $38 billion through 2028 with an additional $10 billion to $15 billion of transmission work identified beyond that to support our jurisdictions and most importantly, our customers.”

“Yes, we have been using a rule of thumb of every new dollar is about 40% equity.”

“And I think if you look back in the last couple of updates, we've typically updated about 8% to 10% every 4 years. And I think transmission has gone up about 30%. So you can expect that transmission will continue to be a big part of our roll forward going forward.”

“We continue to project 100 to 200 basis points of financial flexibility on average over the Moody's downgrade threshold of 12%, approaching 14% at the end of our guidance period with a focus on ways in which we can protect and strengthen our balance sheet to ensure we support all opportunities to invest to meet our customer needs.”

“Finally, we have reaffirmed our annualized earnings growth rate of 5% to 7% through 2028 with the expectation to be at the midpoint or better of that range.”

“By earning a fair return on equity of 9% to 10% on a rate base growing at 7.4% through 2028 and financing that with a balanced capital strategy, we expect to grow our earnings at an annualized rate of 5% to 7%, with the expectation of delivering at the midpoint or better of that range.”

“earning a consolidated ROE of 9% to 10%, maintaining a strong balance sheet and reported earnings within our guidance range of $2.64 to $2.74 per share.”

“allowing us to remain on track for full year operating earnings of $2.64 to $2.74 per share with the goal to be at the midpoint or better.”

“keeps us on track to deliver on our 2025 operating earnings guidance range”

“we anticipated by the end of the second quarter that we will have a decision on the lessons learned”

“With our size, scale, and deconcentrated investment plan and the culture of cost discipline, we expect to be able to manage any tariff-related impacts highlighting the value of Exelon's platform.”

“We expect the revenue shaping and O&M timing to reverse in the balance of the year.”

“I am very comfortable that we will meet the budget for future NYPs.”

“we are reaffirming our annualized earnings growth rate of 5% to 7% through 2028 with the expectation to be at the midpoint or better of that range.”

“We reaffirm our plan to invest $38 billion over the next four years for the benefit of our customers that will drive 7.4% rate based growth and be financed with a balanced mix of debt and equity.”

“as we think about the 16 gigs that we have on the slide, we think about 10% of the load will be on by 2028, another a third of it by 2030, we have three-fourth of it by 2034, and then the remainder beyond that.”

“of the $38 billion, $5 billion related to new business and that's at least a $900 million increase from our last four-year period and we expect that to continue.”

“So we can expect to continue to see more incremental capital necessary to accommodate the new load.”

“we have estimated the impact to be around 1.5% of our four-year capital and O&M investment plan before any mitigating efforts with the majority impacting capital.”

“we project to continue to have 100 basis points to 200 basis points of financial flexibility on average over the plan for our consolidated corporate metrics above the Moody's downgrade threshold of 12% approaching 14% at the end of our guidance period.”

“By earning a fair return on that investment plan, we expect to deliver annualized earnings growth of 5% to 7% through 2028, generating consistent growth and long-term value.”

“We will execute on our financial plan deploying $9.1 billion this year to support our customers that will earn a consolidated 9% to 10% operating return on equity from fair rate case outcomes that align with our stakeholders on how we invest customer dollars.”

“For 2025, we anticipate paying out a dividend of $1.60 per share representing 5.2% growth over last year.”

“We plan to spend approximately $9.1 billion in 2025 and a total of $38 billion over the next four years.”

“ACE has requested an increase of $108.9 million with the expectation of implementing interim rates on August 21st subject to refund.”

“And we are increasing our dividend to $1.60 per share, keeping our payout ratio in line with the 60% we have communicated as part of our capital allocation policy.”

“With these investments delivering 5% to 7% annualized growth, and a dividend yield of around 4%, we offer an extremely attractive risk-adjusted return of 9% to 11% which translates to consistent growth long-term value.”

“In addition to other credit-supported internal levers, these instruments provide a more efficient means of building additional financial flexibility while ensuring we deliver at the midpoint or better of our 5% to 7% annualized earning growth rate range through 2028.”

“Keeping us on track to deliver at midpoint or better of our 5% to 7% annualized growth rate from 2025 to 2028.”

“And we feel confident we can continue to keep our expense growth similarly limited over a planning horizon with an institutionalized team and culture committed to delivering value even when our jurisdictions look to expand ways in which we can support them.”

“Now you look forward, our gross end net load is growing somewhere between 1% to 2%.”

“Specifically, we expect 40% of our incremental capital will be funded with equity, bringing our total equity needs to $2.8 billion over the four-year plan.”

“From a financing perspective, we expect the $38 billion capital plan to be supported by $20 billion of internally generated cash flow, $12 billion of debt at the utilities, and $3 billion of debt at the holding company, with the balance funded with a modest amount of equity.”

“Implemented in a way that mitigates the cash impact, we would expect an increase of approximately fifty basis points to our consolidated metrics on average over the plan.”

“With most investment plans and recovery mechanisms established over the next two to three years, our balanced funding strategy in place we anticipate our metrics approaching 14% by the end of our forecast.”

“We also continue to project an approximate 60% dividend payout of operating earnings with the dividend now projected to grow in the lower end of our long-term earnings target as we retain more of our capital to invest more efficiently for our customers.”

“As you can see on the slide, after 2024, we expect to deliver each year within the 5% to 7% range.”

“As a reminder, the Brandon Shores project is expected to go into service in 2028, while the Tri-County will go into service at various points in 2029 and 2030.”

“As we continue to allocate relatively more spend to longer-dated transmission projects, our annualized rate base growth of 7.4% over the next four years remains fairly consistent plan over plan.”

“With continued returns on equity in the 9% to 10% range, we expect annualized earnings growth of 5% to 7% through 2028 with the expectation of being at the midpoint or better of that range.”

“and we are seeing 1% to 2% load growth over our four-year period.”

“MISO Tranche 2.1 work that are not currently in our guidance but which will require an additional $10 billion to $15 billion of investment to serve our customers in the coming five to ten years.”

“We now expect to invest $38 billion from 2025 to 2028 to support customer needs.”

“Which we are optimistic will result in at least $1 billion of spend in our ComEd service territory through PJM's supplemental spending process.”

“Beyond the $12.6 billion transmission capital in our plan, we estimate $10 billion to $15 billion of transmission opportunity within our footprint in the next five to ten years.”

“We are on track to invest $7.4 billion of capital in 2024 for the benefit of our customers and earn a fair return on equity in our targeted 9% to 10% range, with our planned financings for the year already complete.”

“Currently, the project is on track to be placed in service nearly 2 years ahead of schedule in December.”

“And so I just – yes, that’s how we’re still thinking about it and what we’re still working towards the last 2 years, that’s what we’ve done and we’re working hard to make sure that we continue that trend.”

“With final orders anticipated to be issued for ComEd, PECO and Pepco DC by year-end, approximately 90% of our rate base will have established rates for known rate mechanisms in place through 2026 or 2027, allowing us to focus on planned execution and the strategic discussions required to support growing electrification needs and the necessary expansion of clean, reliable generation in our states.”

“We expect the commission to issue its final orders by the end of December.”

“Our fourth quarter guidance assumes a reversal of common distribution earnings timing, fair and reasonable outcomes for Pepco DC’s multiyear rate case as well as the BGE and ComEd reconciliations and normal weather and storm activity.”

“As we close out the year in the fourth quarter, we remain on track to achieve operating earnings of $2.40 to $2.50 per share.”

“In addition, we reaffirm our long-term annualized operating earnings per share guidance range of 5% to 7% through 2027 with the expectation to be at the midpoint or better of that growth range.”

“There has been no change in our guidance to issue a total of $1.6 billion of equity from 2024 to 2027 to fund our current $34.5 billion capital plan with the remaining balance expected to be issued ratably from 2025 to 2027, approximating $475 million on an annual basis.”

“It’s implemented in a way that mitigates the cash impact we’d expect an increase of approximately 50 basis points to our consolidated metrics on average over the plan, putting us at the higher end of our targeted 100 to 200 basis points of cushion over the planning period.”

“We continue to project a cushion of approximately 100 basis points on average over the planning period for our consolidated corporate credit metrics above the downgrade threshold of 12% specified by S&P and Moody’s, demonstrating our commitment to maintaining a strong balance sheet.”

“This is just one example of the $9.7 billion we have in our capital plan for electric transmission investment through 2027, and it highlights why transmission will continue to be an area of significant opportunity to support our customers going forward.”

“What’s not in our plan, you mentioned PJM’s window one this year. We think there’s opportunity there, probably more in the couple of hundred million size.”

“You can think of it in some of our jurisdictions, including BGE, it's going to be double-digit increases year-over-year.”

“Next, we are focused on executing on the financial guidance we laid out, including investing $7.4 billion of capital with a balanced funding strategy and earning a consolidated 9% to 10% return on equity allowing us to deliver in our earnings guidance range of $2.40 to $2.50 per share.”

“We continue to expect to issue approximately $150 million this year, and the balance rapidly over 2025 to 2027, approximating $475 million annually.”

“The cases are following the expected schedule with orders anticipated from the PAPUC before the end of 2024.”

“A final order is expected in December 2024 for rates that will go in effect by the start of 2025.”

“On a full year basis, we remain on track for operating earnings of $2.40 to $2.50 per share in 2024, and we reaffirm our long-term annualized operating earnings per share guidance range of 5% to 7% and through 2027 with the expectation to be at the midpoint or better of that growth range.”

“Our outlook for the second half of 2024 assumes fair and reasonable outcome for Pepco DC's multiyear plan rate case and the BGE and ComEd reconciliation, and it incorporates July weather and storm activity with the same geothermal conditions for the balance of the year.”

“Our revised Grid Plan process in Illinois is on track and approval by the end of the year is a top priority.”

“We expect to deliver within our guidance range of $2.40 to $2.50 with the goal of being at the midpoint or better, and we are reaffirming all of our long-term guidance.”

“There has been no change in our guidance to issue $1.6 billion of equity from 2024 to 2027 to fund our estimated $34.5 billion capital plan in a balanced manner.”

“As a reminder, we continue to project to have approximately 100 basis points of cushion on average for our consolidated corporate credit metrics above the downgrade thresholds of 12% specified by S&P and Moody's, demonstrating our commitment to maintaining a strong balance sheet.”

“That includes investing $34.5 billion to grow rate base at 7.5%, resulting in annualized earnings growth of 5% to 7%.”

“If implemented in a way that mitigates the cash impact, we'd expect an increase of approximately 50 basis points to our consolidated credit metrics on average over the plan, likely putting us in the higher end of our targeted 100 to 200 basis points of cushion.”

“I do believe it's a December event. We continue to work the process.”

“We are focused on delivering on all of our financial commitments for the year, investing $7.4 billion of capital expenditures while earning a consolidated ROE of 9% to 10% and delivering operating earnings per share of $2.40 to $2.50 per share.”

“We remain on track for full year operating earnings of $2.40 to $2.50 per share in 2024 with the goal of being at midpoint or better of that range.”

“We and I would tell you that we continue to see significant activity around high-density load growth in general. As we discussed in our -- as recently as our Q4 2023 earnings call, we have high probability of load growth, not only in Illinois, but Pennsylvania.”

“Specifically, we expect to issue $150 million of equity at the holding company in 2024 and the balance of approximately $475 million annually over 2025 through 2027.”

“As you heard on our last earnings call, we project to continue to have approximately 100 basis points of cushion on average for our consolidated corporate credit metrics above the threshold specified by the agencies.”

“As we look ahead to the next quarter, the relative EPS contribution is expected to be approximately 15% of the midpoint of our projected full year earnings guidance range, which contemplates the update to ComEd's revenue requirement approved by the Illinois Commerce Commission to go into effect in May bills.”

“we look forward to a final order, which the Commission has stated should be received by the end of the year for rates effective at the beginning of next year.”

“To reiterate our equity needs, there has been no change in our guidance to issue $1.6 billion over the 2024 to 2027 period to fund the estimated $34.5 billion capital plan in a balanced manner.”

“Lastly, we are reaffirming the fully regulated operating EPS compounded annual growth target of 5% to 7% from the 2023 guidance midpoint through 2027 with the expectation to be at the midpoint or better of that growth range.”

“Finally, we continue to reaffirm all of our long-term guidance, including an expected 5% to 7% annualized operating earnings growth going forward.”

“It's implemented in a way that mitigates the cash impact, we'd expect an increase of approximately 50 basis points to our consolidated credit metrics on average over the plan putting us more on the higher end of our targeted 100 to 200 basis points of cushion.”

“But this substandard performance even in the lower impact areas is not acceptable, and I expect us to do better in 2024.”

“What I can tell you with assurance is that this 5% to 7% earnings growth is premised on multiple outcomes.”

“With our dividend yield at 4.5% and a 5% to 7% annualized earnings growth rate that we have a strong conviction in achieving, we are offering investors total shareholder returns in the 9.5% to 11.5% range and extremely attracted risk-adjusted proposition.”

“I want to close by reiterating our confidence in investing an estimated $35 billion of capital across our diversified platform from 2024 to 2027, driving 5% to 7% earnings growth from 2023 to 2027 with an expectation of midpoint or better and maintaining a strong balance sheet while doing so.”

“Accordingly, we are confident that our earnings CAGR will be at midpoint or better of the 5% to 7% range over the 2023 to 2027 period and in future updates.”

“As we work with our jurisdictions and identify needs for further investment of utilities, we anticipate that any incremental capital investment will be funded by no more than approximately 40% equity.”

“And as mentioned, to fund the robust $3.2 billion of incremental capital opportunities while maintaining a strong balance sheet, our financing plan includes $1.3 billion of additional equity that we expect to issue over the 2025 through 2027 period.”

“From a financing perspective, we expect the $34.5 billion capital plan to be supported by $19 billion of internally generated cash flow. $10 billion of debt at the utilities and $3 billion of debt at the holding company with the balance funded with a modest amount of equity.”

“As we identify new investments in the plan, we are funding in a prudent manner by incorporating an incremental $1.3 billion of equity to ensure we maintain our previous commitment on pushing and keep us on a path to 13% to 14% consolidated credit metrics over time.”

“Similar to the first two years since operation, over the guidance period, we project to continue to have approximately 100 basis points of cushion on average for our consolidated corporate credit metrics above the threshold specified by the agencies.”

“Including an expectation to deliver every year after 2024 within the 5% to 7% range, if not above.”

“We also continue to project an approximate 60% dividend payout ratio of operating earnings, with the dividend growing in line with our long-term earnings target.”

“With $34.5 billion of projected capital spend driving 7.5% rate base growth and with continued focus on earning ROEs of 9% to 10%. We are initiating an annualized operating earnings growth target of 5% to 7% through 2027 from our 2023 guidance midpoint of $2.36 per share.”

“Our expectation is to limit the annualized O&M growth rate to approximately 2% over the long-term and maintain our competitive position with rates among those that are the lowest in the nation will improve our customers' experiences.”

“However, we expect to maintain an annualized growth rate of approximately 2% through 2027, a below inflation level that is expected to result in – to our customers over $400 million lower than they otherwise would have been.”

“Brand Insurance is expected to go into service in 2028, while the RTEP Window 3 project will be in service closer to 2030, providing line of sight to strong rate base growth beyond the current guidance window.”

“We plan to invest $7.4 billion in 2024 and a total of $34.5 billion over the next four years, an increase of $3.2 billion or over 10% from the prior planning period.”

“In addition, despite below average returns we are receiving at ComEd, we continue to expect to realize a consolidated ROE in the 9% to 10% range.”

“This increase in capital expenditures result in rate base growth of 7.5% from 2023 to 2027.”

“Additionally, I'd remind you that our plan continues to incorporate the assumption that the corporate alternative minimum tax will not allow for repairs. If implemented in a way that mitigates the cash impact, we'd expect an increase of approximately 50 basis points to our consolidated credit metrics average on average over the plan, which would provide incremental cushion.”

“Yes. No, everything we've given you assumes that we pay, the corporate alternative minimum tax. And so regardless of how that turns out, our commitment is to do the 425 million between now and 2025.”

“Third, we will finish out the year meeting our financial guidance, narrowing our guidance range to $2.32 to $2.40 per share demonstrates the confidence we have in executing despite the historically mild weather this year, and we remain on track to invest $7.2 billion of capital and earned consolidated ROE in the 9% to 10% range.”

“Lastly, there have been no changes in our guidance to issue $425 million of equity at the holding company by 2025.”

“As a reminder, we continue to project a 100 to 200 basis points of cushion on average of our guidance period for our consolidated corporate credit metrics above S&P and Moody's downgrade thresholds of 12%, demonstrating our commitment to maintaining a strong balance sheet.”

“During the third quarter, we continue to deploy capital for the benefit of our customers and are on track to invest $7.2 billion expected for 2023.”

“As a reminder, by next year, we expect to have a resolution on all 4 of the ongoing multiyear rate plans in Illinois, Maryland and D.C., which will support their respective clean energy and climate goals while balancing customer affordability and equity.”

“A final order is expected at the last scheduled ICC meeting of the year on December 14, but due no later than December 20.”

“The proceeding is expected to run its full course with the final order expected from the commission by December 14.”

“Briefs will be filed in April of '24, and and we expect a final order by June of 2024.”

“ACE anticipates final approval of the settlement from the BPU in the fourth quarter.”

“A final order is expected in the second quarter of 2024.”

“Through continued increase in rate base as we deploy capital for the benefit of our customers, along with managing work plans across the platform, we remain on track to deliver earnings within expectations.”

“With one quarter remaining in the year, we are narrowing our 2023 EPS guidance range to $2.32 to $2.40 per share from $2.30 to $2.42 per share.”

“We expect to be at the midpoint or better of our 6% to 8% annualized earnings growth ranges and to grow the dividend in line with those earnings.”

“As a reminder, we expect to receive the final order in mid-December.”

“So we'll fund any new incremental capital with a mix of internal cash flows reinvesting back into the business that and to the extent necessary do what we need to do to make sure we maintain that cushion on the balance sheet but always also hit our earnings target of 6% to 8%.”

“We'll finance it in a way that maintains that cushion on the balance sheet that we target, but also ensures that we meet our 6% to 8% earnings growth.”

“So on the transmission projects, like, to give you a sense, we have brand insurers, which was the project we talked about by last quarter, which has an in-service date in the end of 2028.”

“offering a total shareholder return of 9% to 11%.”

“Lastly, we are reaffirming the fully regulated operating EPS compounded annual growth target of 6% to 8% from 2021 and 2022 guidance and plans through 2025 and 2026, respectively.”

“Specifically, PJM has recommended a suite of solutions that include a scope of work for Exelon that is estimated to cost approximately $850 million, with portions assigned to BGE and PECO, Pepco and Delmarva Power.”

“I figure typically like in the last couple of years, '27, '28, you spent somewhere around 40% to 50% of that expenditure. And then leading up to it starting next year, you'd slowly ramp into it. In the first 3 years, you'd spend somewhere again between 50% and 60% of the project.”

“No, great question, David. We expect to see them both fully through and recognizing that, as Carim mentioned, first time for the reconciliation process in Maryland. And it’s the next 3 years, we will see it through and let it play out.”

“Efficiently investing $7.2 billion of capital and earning ROEs in the 9% to 10% range will support meeting our 2023 earnings guidance range of $2.30 to $2.42 per share and keeping our balance sheet strong.”

“During the second quarter, we continued to invest capital for the benefit of our customers and are on track to meet our $7.2 billion guidance for 2023.”

“On a full year basis, we continue to reaffirm our 2023 EPS guidance range of $2.30 to $2.42 per share.”

“These results are right in line with what we expected this quarter, and we remain on track to earn within our guidance range of $2.30 to $2.42 per share for 2023.”

“But we expect orders for both companies by the end of the year.”

“As Calvin and Jeanne mentioned, we have more hearings at the end of August, early September with the final order expected in mid-December.”

“So, we will continue those practices that helped us heading into ‘23, and you can expect us to do that for future issuances as well.”

“In line with the last earnings call, there has been no change in our guidance to issue $425 million of equity at the holding company by ‘25.”

“Once it’s fully energized, which is expected by the second quarter of ‘24, the Civic substation will be PECO’s newest and most modern insulated substation.”

“As Calvin mentioned, by next year, we expect our resolution on all four of the ongoing multiyear rate plans in Illinois, Maryland and D.C. and a clear path forward to supporting clean energy and climate goals in an affordable and equitable manner.”

“Similarly, ACE revised their revenue request for a $93.6 million increase based on an updated test period, with the final order expected in the first quarter of ‘24.”

“A decision is expected in the second quarter of 2024.”

“In line with discussion on the first quarter earnings call, we expect the $0.07 of unfavorable weather experienced year-to-date to be offset with the combination of O&M levers across the platform, favorable depreciation at PECO and the full year earnings impact of the carrying costs associated with the CMC regulatory asset balance.”

“Our team’s commitment to leading the energy transformation is what makes us the premier transmission and distribution utility, one that lives by its values, supports its communities and offers a uniquely strong expected total shareholder return of 9% to 11%.”

“Lastly, we are reaffirming the fully regulated operating EPS compounded annual growth target of 68% from 2021’s and 2022 guidance midpoint through 2025 and 2026, respectively, with the expectation to be at the midpoint or better of that growth range.”

“We expect to be at the midpoint or better of our 2021 to 2025 and 2022 to 2026 6% to 8% annualized earnings growth ranges and to grow the dividend in line with those earnings.”

“Over the next 4 years, we anticipate investing over $31 billion to support the energy transformation, which is what’s driving that growth.”

“If we get the corporate alternative minimum tax mitigated, we would be closer the mid-higher, like that 13.5%, 14%.”

“We're looking to deploy $7.2 billion of capital this year, more than ever before, while maintaining earned ROEs in the 9% to 10% range and delivering on our 2023 earnings guidance range of $2.30 to $2.42 per share.”

“During the first quarter, we continued to invest capital for the benefit of our customers and are on track to meet our $7.2 billion commitment for 2023.”

“With this continued increase in rate base as we deploy capital for the benefit of our customers and our disciplined approach to cost management, we remain on track to deliver expected earned returns at the utilities within our 9% to 10% targeted range by year-end, and affirm our full year operating earnings guidance of $2.30 to $2.42 per share in 2023.”

“But that reg asset is expected to be collected and wind down by May of 2024.”

“As Jeanne mentioned before, the interveners are scheduled to file their testimony this month. Hearings will be in August and the order in December of this year.”

“And we expect to hire more than 15 additional graduates by the end of June, reinforcing our vision of facilitating an energy transformation that will stretch over generations of thoughtful planning and coordination.”

“To reiterate our equity needs, there has been no change in our guidance to issue $425 million of equity as a holding company by 2025.”

“all 568,000 meters are expected to be replaced by mid 2024.”

“order is expected on the proposed plan in December, 2023.”

“A final order in the ComEd will say [indiscernible] case is expected no later than December 20th.”

“In line with past practice, we would not expect to visit protected 2023 guidance until the third quarter and recall, our goal is always to achieve the midpoint or better of that range.”

“On a full year basis, we expect the $0.05 of unfavorable weather experience in the first quarter to be offset with a combination of O&M levers across the platform, favorable depreciation at Pepco, and the full year earnings impact of the carrying cost associated with the carbon mitigation credit regulatory asset balance.”

“Pepco expects to file its second MYP, our final anticipated base rate filing for the year with the Maryland Public Service Commission later this month.”

“Lastly, we are reaffirming the fully regulated operating EPS compounded annual growth target of 68% from 2021 and 2022 guidance midpoint through 2025 and 2026, respectively, with the expectation to be at the midpoint for better of that growth range.”

“Our diverse deconcentrated capital expenditure plan and predictable investment recovery frameworks contribute to the compelling risk adjusted total shareholder return of 9% to 11% that we offer investors between our dividend and earnings growth through 2026.”

“Lastly, we continue to reaffirm our existing expectations to be at the midpoint or better of our 2021 to 2025 and 2022 to 2026, 6% to 8% annualized earnings growth ranges, with dividend growth to match underpinned by the investments we are making on behalf of customers and earning an annual consolidated ROE in the 9% to 10% range during that time.”

“as you remember on our last earnings call, we project 100 to 200 basis points of cushion on average over our guidance period for our consolidated corporate credit metrics above S&P and Moody's downgrade thresholds of 12% over the guidance period, demonstrating our commitment to maintaining a strong balance sheet.”

“We do think that there the potential for incremental opportunities on transmission there.”

“If the corporate alternative minimum tax was not mitigated through an inclusion of repairs in its calculation, we anticipate being at the lower end of that 13% to 14%.”

“No, I would anticipate on this - this would be fully litigated Steve, because, as we talked about, as I talked about in my comments, it’s been a very engaged stakeholder process.”

“So there is a tentative schedule set. And in May, we expect the testimony of the interveners to be submitted in August, evidentiary hearings will commence. And again, the – after that all the way to the required schedule is for the ICCR regulators to make their final determination before December 20 of this year.”

“We continue to affirm the remaining $425 million of our $1 billion equity commitment. We expect to issue this equity sometime between 2023 and 2025.”

“Additional details will be available once BGE makes its filing later this month, with a final order expected by December 2023.”

“An order is expected from the ICC no later than December 20, 2023.”

“In 2023, adjusted O&M at our utilities is projected to be $4.2 billion, representing a 1% or $50 million increase from 2022, a rate well below the expected inflation rate of 4% in 2023 and building on our efficiency efforts in 2022.”

“As a reminder, expected year-over-year growth in 2023 is slightly below the 6% to 8% range as PECO enters the second year with its current electric distribution rates and anticipates returning to normal weather and storm activity.”

“Relative to the midpoint of our 2022 estimated guidance range, the 5% year-over-year earnings growth is primarily driven by the continued increase in rate base as we deploy capital for the benefit of our customers as well as by increased revenues associated with completed rate cases.”

“We are reaffirming our 2021 to 2025 target of 6% to 8% annualized earnings growth with the expectation that we will reach midpoint or better of that compounded annual growth rate.”

“In terms of the financials, it is a 15-year agreement with an option to extend for another five years and the first 15 years, we have committed – proposed to commit $100 million in shareholder dollars and if extended, another $20 million.”

“But to your point, beyond 2023, we expect to be within or above the range.”

“And we know that’s what you expect from the premier, transmission and distribution company one that’s deploying $31 billion of capital for our customers with rate-based growth and ROEs resulting in 6% to 8% earnings and dividend growth and a total shareholder return of 9% to 11%.”

“Consistent with our earnings profile, our credit metrics are expected to strengthen over time as we step into new multiyear plans and finalize the reconciliation processes.”

“Without the ability to include certain deductions, we expect the cushion in our average credit metrics to be on the lower end of the 100 basis points to 200 basis points range.”

“Over our guidance period, we project 100 basis points to 200 basis points of cushion on average for our consolidated corporate credit metrics above Standard & Poor’s and Moody’s downgrade thresholds of 12%, demonstrating our commitment to maintaining a strong balance sheet.”

“We also continue to project an approximate 60% dividend pay-out ratio of operating earnings with a dividend growing in line with our long-term earnings.”

“BGE’s rate plan will cover electric and gas customer rates from 2024 through 2026 inclusive of a reconciliation on 2021 and 2022 cost from its original multi-year plan filing.”

“Based on energy forwards as of January 31, these credits are projected to protect ComEd customers from over $3 billion of additional energy charges between 2022 and 2027.”

“Looking forward, we remain focused on earning the allowed returns of the utilities, which we expect will keep Exelon in the 9% to 10% earned ROE range annually throughout the planning period, while investing to maintain reliability and keep pace with our jurisdictions energy transition.”

“Being slightly below the annualized earnings growth range is in line with the direction we provided on our third quarter call, but we do expect 2023 to be the exception. All other years are expected to grow within the range of 6% to 8%, if not above it.”

“I want to close by reiterating our confidence in investing an estimated $29 billion of capital from 2022 to 2025 driving 68% earnings growth from 2021 to 2025 and a strong balance sheet.”

“As Chris described, we are confident that $29 billion of investments we are making on behalf of our customers will result in expected rate base growth of 8.1% and 16% annualized earnings growth from 2021 through 2025.”

“We are delivering on our financial commitments and are confident we will be within our revised guidance range at year-end.”

“Regardless of the outcome of Treasury, we’re reaffirming our 6% to 8% annual growth target from 21 to 25, which I’ll talk bit more about shortly.”

“We are reaffirming the midpoint of our range and narrowing it by $0.06.”

“Even if unmitigated, as Chris noted, we expect to observe the cash impact on our balance sheet with cushion above our downgrade thresholds and we expect to be in our targeted 13% to 40% average range over the planning horizon without a need for incremental equity beyond the previously announced $1 billion commitment from 2022 through 2025.”

“In 2024, we expect to be in the range as we enter the next cycle of our BGE and PECO multi-year plan, which allow us to align with stakeholders for the next three-year phase of the clean energy transition.”

“PECO’s earnings should be positively impacted by new GAAP rates, transmission and its distribution system improvement charge tracker, which provides a mechanism for recovery on distribution investments made between rate cases.”

“People will be in year two of its existing electric distribution rate per year cycle and as a result, is expected to have lower year-over-year earnings assuming normal weather.”

“As a reminder, we expect nearly 100% of our rate base growth will be covered by alternative recovery mechanisms, such as the multi-year plan by the end of our planning period.”

“Additionally, we anticipate filing the first multi-year plan reconciliation with BGE expected to file in the first quarter of 2023.”

“Lastly, we expect a final order on ComEd’s final distribution formulary update in the fourth quarter.”

“We expect a final order from the commission by year-end.”

“As discussed on previous calls, we expect a trailing 12-month ROE to remain in our 9% to 10% target range at year-end.”

“We expect that higher cash needs will not require us to issue additional equity beyond the original $1 billion commitment through 2025.”

“Our rate case will be filed at the same time as our multiyear integrated grid plant with the final order by the end of 2023.”

“As a result, we intend to file a multiyear distribution plan in January with a four-year rate structure beginning January 1, 2024, continuing through the end of 2026”

“We expect the final order in December.”

“Although current forward imply we should see some good upside to its ROE, we’ll need to monitor the impact through 2023, which remains fully exposed to market move.”

“So we're confident, we target 9% to 10%, for all of our utilities, we're confident at year end will be in that range, on average across the utilities.”

“As Chris mentioned, we continue to reaffirm our 2022 EPS guidance range of $2.18 to $2.32 per share.”

“The 15% passage as you mentioned, we wouldn't expect to update our financing plans by EI, our normal cadence is that we would do that on the Q4 call after the first of the year.”

“And we expect to pay out 60% of those operating earnings each year to our stakeholders and shareholders.”

“The net results in our operating, our opportunity to invest the $29 billion of capital over the next four years for our customers, with an annualized 6% to 8% operating earnings growth through 2025.”

“there is no change to our expectation and our consolidated corporate metrics will average 13% to 14%. At both S&P and Moody's over the 2022 to ‘24 period.”

“We will complete the remaining $500 million in 2023 to 2025.”

“we plan to issue $1 billion of equity in the holding company by 2025 as part of a balanced funding strategy.”

“As a reminder, we expect nearly 100% of our rate base growth will be covered by alternative mechanisms by the end of our planning periods.”

“Additionally, we expected decision on the PECO gas case in the fourth quarter this year, and our ComEd’s final formula rate filings in December.”

“Delmarva, Delaware has a gas case with rates going into effect on August 14, subject to refund and an expected decision in the first quarter of ‘23.”

“We expect an order by the end of the year.”

“Turning to slide 7, looking at our utility returns on a consolidated basis, we expect to be in our consolidated 9% to 10% target by year end.”

“Growth for the balance of the year will occur primarily in Q4, as we continue to realize the benefits of higher distribution and transmission revenue, including the net impact of higher Treasury's on ComEd.”

“ComEd proposes spending approximately $300 million from ’23 to ‘25.”

“We expect a final order by the end of the third quarter.”

“We're on track to limit the number of rate cases we have this year.”

“The reliability metrics, as outlined could add 60 basis points.”

“ComEd -- as Chris outlined, ComEd filed its last rate case under the formula rate this year. And they are preparing a meeting with stakeholders, including the Illinois Commerce Commission, for their first filing of whether it's a traditional future test year or whether they go into a 4-year multiplan -- year plan as outlined by the new energy law. The meetings with the stakeholders is critical in that as ComEd lays out its options. And as Chris outlined, they will be making that filing the first part, January - -first quarter of 2023, with an expected ruling from the commission by the end of the year.”

“We would expect that 1 month to effectively drag into the comparisons that you see in '23 next year because of the month of January of this year.”

“We've targeted a payout of 60% of those operating earnings each year back to the shareholders.”

“As a reminder, we expect nearly 100% of our rate base growth will be covered by alternative recovery mechanisms by the end of our planning period.”

“ComEd's residential customer rates next January are expected to be at least 10% below the average of rates in the 10 largest U.S. metropolitan areas.”

“We expect an order in the fourth quarter of 2022.”

“And right now, we're on track and we hope to improve on it, but I wouldn't commit to any significant improvement at this point.”

“As we've said in the past and will continue, we will meet or exceed our financial commitments, delivering earnings with our guidance range and maintaining a strong Balance Sheet.”

“We are delivering on our financial commitments and are confident, we will be within our revised range at year-end.”

“But for now, I think the right way to think about it, is this effectively will serve as a hedge for a significant portion of our generation.”

“But for discussing our gross margin update on Slide 13, I want to remind you that we expect to provide 2022 hedge disclosures at Analyst Day, which will be held closer to the completion of the separation.”

“As a reminder, we expect nearly 100% of our rate base growth will be covered by alternative mechanisms by the end of our planning period, a differentiator for our utilities when compared to peers.”

“We expect to receive a final order from the Illinois Commerce Commission by early December.”

“And we expect to receive an order in the fourth quarter.”

“We are narrowing our 2021 EPS guidance range to $2.70 to $2.90 per share, from $2.60 to $3 per share previously.”

“The remainder of the first quarter drag is expected to reverse in the fourth quarter, and is not expected to impact our full year results.”

“We continue to make progress on levers we identified to mitigate the Texas loss, and we expect it will take the full year to realize all of the savings.”

“We've asked for authorization from the commission by December 16th, on their scheduled meeting date.”

“The process for the NRC and New York PSC approvals are moving forward as expected, and remain on track.”

“Operations are expected to begin in 2022.”

“We've begun to fill the 650 vacant positions and we'll be investing more than $300 million in our plants over the next 5 years to catch up on what we've pulled back from -- during the unknown period.”

“It's possible this could get done by Thanksgiving.”