EXELON CORP Q1 FY2025 earnings call

• Operating earnings of $0.92 per share in Q1 2025 represent strong growth over Q1 2024 and are ahead of expectations, keeping Exelon on track for 2025 guidance.
• Reliability and safety performance remains strong despite winter wind events; ComEd and Pepco Holdings are in top decile for outage metrics, BGE and PECO in top quartile.
• Relatively lower base rate case activity this year, with two open rate cases at Atlantic City Electric and Delmarva Power on track.
• Significant legislative and regulatory progress: Maryland passed energy bills on energy security and battery storage; PJM made progress on capacity market issues, and FERC approved solutions via 205 filings.
• A 17 GW pipeline of new business opportunity remains intact, with advanced studies on an additional 16 GW of high density load.
• Plan to invest $38 billion over four years, driving 7.4% rate-based growth, with 60% of $700 million annualized equity need priced.

Exelon reported adjusted operating earnings of $0.92 per share in the first quarter of 2025, up from $0.68 per share in the first quarter of 2024. ComEd and Pepco Holdings are projecting top decile outage frequency and duration performance, while BGE and PECO are in the top quartile. Revenue was impacted by timing at ComEd, weather at PECO, and O&M timing, but is expected to reverse later in the year. The company reaffirms full year operating earnings guidance of $2.64 to $2.74 per share.

• Reaffirms 2025 operating earnings guidance range of $2.64 to $2.74 per share, with the goal to be at the midpoint or better.
• Annualized earnings growth rate of 5% to 7% through 2028 is reaffirmed, with the expectation to be at the midpoint or better.
• Second quarter earnings are expected to be approximately 14% of the midpoint of the projected full year earnings guidance range, with 48% of projected full year earnings expected to be recognized in the first half of the year.

• Weather extremes and supply price volatility impacting customer affordability.
• Tariff policy impacts, with an estimated 1.5% impact on four-year capital and O&M investment plan before mitigation.
• Corporate alternative minimum tax implications, with favorable repairs addressing potentially increasing consolidated metrics by 50 basis points on average over the plan.
• Customer affordability challenges due to economic uncertainty, updated tariff policies, and federal budget reprioritization.

Q: Nick Campanella asked about Maryland legislation and its impact on BGE/Pepco reconciliations and the large load colocation issue.

A: Calvin Butler stated Exelon is prepared for reconciliations, Maryland's legislation provides clarity on NYP without reconciliations, addresses large load colocation, and includes provisions on battery storage. He expressed confidence in meeting objectives.

Q: James Kennedy inquired about Pennsylvania legislation supporting regulated generation and data center timeline conversion to capital plan.

A: Calvin Butler said Exelon supports customer-friendly legislation, and Jeanne Jones noted data center projects are distinct, with $38 billion plan including $5 billion for new business, and a collaborative approach to targeting data center needs.

Q: Julien Dumoulin-Smith asked about FERC timeline for the colocation issue and data center phase progression.

A: Colette Honorable stated there is a record before FERC for a quick decision, and Jeanne Jones clarified data center phases are distinct, with 16 GW of load having timelines for ramp-up by 2028, 2030, 2034, etc., and a collaborative partnership approach.

Q: David Arcaro asked about affordability and managing PJM capacity pricing increases.

A: Calvin Butler mentioned cold winter impacts on bills, with Exelon proactively assisting customers through suspended disconnections, payment plans, community forums, and connecting customers with state/local assistance.

Q: Bill Appicelli questioned Maryland lessons learned docket timeline and resource adequacy concerns.

A: Calvin Butler said the commission is expected to rule on lessons learned by the end of Q2, and Exelon supports a portfolio approach to resource adequacy, including energy efficiency, distributed resources, and demand response, with a focus on balanced and affordable solutions.