Exelon management attributed the company's recent performance to distribution and transmission rate increases and the absence of prior-year customer relief costs, offset by higher credit loss expenses at BGE and increased interest costs.
The company highlighted that ComEd restored 90% of customers within 48 hours following the most severe storm activity in two decades, according to Exelon management.
The PJM market is currently facing this shortfall.
Exelon noted that capacity prices in the PJM market have cleared at the FERC-approved cap for three consecutive auctions, reflecting the scarcity. The company is adopting an 'all-of-the-above' strategy including transmission, storage, and utility-owned generation to mitigate this scarcity.
Management stated that without this strategy, scarcity in ComEd would have driven prices to $777 per megawatt-day. Exelon is also using Transmission Security Agreements (TSAs) to require financial collateral from data center requests, aiming to filter speculative demand.
Reaffirming its outlook, Exelon maintained full-year 2026 guidance of $2.81 to $2.91 per share, with a long-term annualized earnings growth target near the top end of 5% to 7% through 2029. The company's $41 billion capital plan through 2029 remains unchanged.
Management also identified $12 billion to $17 billion in incremental upside opportunities. Among projects, a 500-megawatt battery storage project in New Jersey, US, is expected to provide $700 million in net customer benefits, with a final regulatory order anticipated in early 2027.
BGE filed a new rate case seeking a $156.1 million increase to recover reliability investments and storm restoration costs. Exelon has completed 86% of its 2026 debt needs and 100% of its 2026 equity needs.
Exelon has an 11-gigawatt high-probability pipeline, consisting of 4 gigawatts with signed TSAs and 7 gigawatts of other advanced projects. Of this pipeline, 4 gigawatts are secured by $1 billion in collateral.
Addressing regulatory matters, Exelon management is working to address Pennsylvania Governor Shapiro's focus on transparency regarding Return on Equity (ROE) and customer value. The company argues that utility-owned assets provide lower-cost capital and greater certainty than pure market-based solutions.
