How is Exelon thinking about future PECO rate case filings given past events and recent constructive signals from PaPUC and the Governor? What would encourage a new filing?

Calvin Butler stated Exelon views Pennsylvania as a solid regulatory framework and has constructive conversations with the Governor's office. Mike Innocenzo (CEO of PECO) added that the focus is on investments providing customer value, transparency on ROE, and addressing affordability. They are working with stakeholders to ensure future filings are productive and address concerns. “we're seeing indicators that Pennsylvania is still a solid regulatory framework for us to operate, and they view PICO as an economic partner and job creator in the state.”

To what extent can Exelon tap into its identified $12 billion to $17 billion transmission opportunity, and what win rate should be expected for competitive transmission?

Gene Jones clarified the $12-17 billion is a broader opportunity beyond just competitive transmission, driven by existing infrastructure, data centers, and state policies. Karim Khouzami (EVP, Chief Strategy Officer) highlighted Exelon's active participation in PJM and MISO, recent filings for 2 MISO projects, and strong positioning due to operational excellence and experience with 765 kV lines. He expects continued success. “We're 1 of very few transmission operators that own and operate those types of lines today, and that's what increasingly more and more RTOs are seeking in their solutions.”

EXC

Exelon (EXC) Q2 FY26 earnings call: guidance and Q&A

Q: The data center pipeline is down from 43 GW to 36 GW. Is this a reclassification, attrition, or slower conversion due to PJM issues?

Gene Jones explained the reduction reflects filtering out speculative projects via Transmission Security Agreements (TSAs) and collateral requirements. The 36 GW pipeline includes 4 GW with signed TSAs backed by $1 billion collateral and 7 GW of high-probability projects predating TSAs. The $41 billion capital plan through 2029 remains unchanged as it never included speculative projects. “what this update reflects is we have now readed out speculative projects, and it gives us proactive insight into what is real.”

Earnings call· Jun 2026 (Q2 FY26)· Utilities· Jul 30, 2026

Source: earnings call transcript

Executive summary

Exelon Q2 FY26 — Strong Operational Performance Amidst Growing Grid Strain and Data Center Demand

Exelon delivered solid Q2 FY26 adjusted operating earnings, reaffirming its full-year guidance and demonstrating strong operational reliability despite severe weather events. The company is actively addressing growing grid strain and resource adequacy challenges, particularly in the PJM market, by advocating for an "all-of-the-above" approach including transmission, utility-owned generation, and battery storage solutions. Management emphasized disciplined capital deployment and proactive engagement with regulators to balance affordability with necessary infrastructure investments, while also filtering speculative large-load demand through new security agreements.

Highlights

Reported adjusted operating earnings of $0.43 per share, consistent with expectations.
Reaffirmed full-year guidance of $2.81 to $2.91 per share, with a goal to be at the midpoint or better.
All utilities projecting top quartile reliability, with ComEd and PHI projected in the top decile.
Completed approximately 86% of 2026 debt financing needs, significantly reducing interest rate exposure.
Priced approximately 37% of planned equity needs through 2029 via forward contracts under the ATM program.

Concerns

PJM's most recent capacity auction cleared at the FERC approved price cap but fell short on reliability by approximately 6.8 gigawatts.
Only about 525 megawatts of new generation or uprates cleared in the PJM capacity auction, indicating insufficient new supply.
July heatwave pushed PJM to its limits, with demand hitting a record peak of 168 gigawatts and power prices surging tenfold from $80 to $800 per megawatt hour.
BGE delayed its rate case filing and deferred select projects to manage customer impacts, stating critical work cannot be delayed further without consequences.

Guidance & targets

Category	Target	Timeline	Confidence
Adjusted Operating Earnings	$2.81 to $2.91 per share high materiality	FY26	High
Adjusted Operating Earnings Goal	at the midpoint or better high materiality	FY26	High
Annualized Earnings Growth Rate	near the top end of 5% to 7% high materiality	2025 through 2029 · FY29	High
Q3 Earnings as % of Full Year Guidance Midpoint	approximately 27% medium materiality	Q3 · FY26	Medium
Capital Deployment	approximately $10 billion high materiality	FY26	High
Consolidated Operating Return on Equity (ROE)	between 9% to 10% medium materiality	FY26	High

EXC operating KPIs by quarter

EXC operating KPIs stated on its earnings calls, by fiscal quarter
KPI	Dec 2024 Q4 FY24	Mar 2025 Q1 FY25	Dec 2025 Q4 FY25	Change vs prior quarter
Customers	10.7M+ And it was when Exelon was formed 25 years ago, creating the foundation for the network of wires and pipes that now delivers energy to more than 10.7 million customers today. Source: earnings call transcript	10.7M We are also constantly working to find the right rate-making mechanisms that allow us to fulfill our responsibility and privilege to serve the 10.7 million customers that count on us for their energy needs. Source: earnings call transcript	~11M Serving approximately 11 million customers across some of the largest and most economically vital metropolitan areas in the country is a responsibility we do not take lightly. Source: earnings call transcript	—

Operating figures the company stated on at least two of the calls shown, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.

Orderbook & backlog

Data Center Pipeline 36 GW Q2 FY26

down from 43 GW previously cited

Reflects filtering out speculative projects via Transmission Security Agreements (TSAs). Includes 4 GW with signed TSAs backed by $1 billion collateral and 7 GW of high-probability projects predating TSAs. The remaining 25 GW is under study.

Deals & partnerships

Invenergy Development of a 500-megawatt battery energy storage system

Atlantic City Electric partnered with Invenergy to advance a 500-megawatt battery energy storage system using 4-hour batteries in New Jersey.

Invenergy Submission of two additional MISO Tranche 2.1 competitive transmission bids

Exelon continues to leverage its scale, expertise, and strong development partnerships to pursue transmission opportunities. These bids are for the MARS and EASL projects in Iowa.

Capital programs

ComEd Grid Plan proceeding continues to move forward $15.3 billion

Start: 2028

Benefit:support reliability, accommodate significant load growth, advance Illinois' Energy policy framework

Proposed investment from 2028 through 2031. An order is expected by December 15.

Atlantic City Electric (ACE) 500 MW Battery Energy Storage System submitted in PJM Cycle 1; regulatory approval requested approximately $1 billion

Benefit:500 MW using 4-hour batteries; power approximately 400,000 homes; over $700 million in net benefits to customers

Partnered with Invenergy. Not currently reflected in the capital plan. ACE filed a request for regulatory approval on the cost recovery mechanism last week, with a final order anticipated in the first half of 2027.

Risks & headwinds

PJM market reliability shortfall most recent capacity auction

approximately 6.8 gigawatts

Mitigation:Exelon advocating for all-of-the-above approach including transmission, demand-side solutions, market resources, and utility-owned generation; advancing battery storage and VPPs.

Lack of new generation supply in PJM most recent capacity auction

only about 525 megawatts of new generation or uprates cleared

Mitigation:Exelon advocating for policies that attract new supply, including utility-owned generation where it makes sense.

Increased grid strain from extreme heat and weather events July 2026, YTD 2026

PJM demand hit a record peak of 168 gigawatts in July; ComEd experienced 16 major weather events so far this year

Mitigation:Disciplined investment in grid resilience; advocating for new supply and transmission expansion; deploying battery storage and VPPs.

Customer affordability challenges due to rising costs and market prices ongoing

PJM power prices surged tenfold from $80 to $800 per MWh in July; BGE delayed rate case filing and deferred projects to manage customer impacts

Mitigation:Managing expenses carefully, deploying capital for customer value, supporting assistance programs, structuring large load agreements with financial commitments, advocating for new supply to put downward pressure on long-term costs.

Regulatory delays and uncertainty impacting investment recovery ongoing

BGE delayed its filing, deferred select projects; ComEd grid plan order expected by Dec 15; DPL Delaware final order expected Q3 2027

Mitigation:Proactive engagement with regulators, balancing affordability with investment needs, highlighting long-term costs of deferred critical work.

What to watch in Q3 FY26

ComEd Grid Plan Regulatory Order

by December 15

Current Proceeding continues, staff and intermedial rebuttal testament filed

Target Order issued

Why it matters

This order will determine the scope and approval of $15.3 billion in investment for reliability and load growth in Illinois.

In order is expected by December 15.

Find out whether EXC delivers this. Inve re-checks your case every morning.

Q&A highlights

Does PJM's revised EDC proposal adequately address issues, and will Exelon intervene further with FERC or continue its own solutions like the 500 MW battery?

Calvin Butler applauded PJM's efforts but noted they might not resolve long-term affordability without more generation. Exelon will continue advocating for consumer protections and believes states should play a central role, with utility-owned generation as a cost-effective complement. Gene Jones confirmed the 500 MW battery is not a one-off and more solutions are being pursued.

“Ultimately, what we've always said and we're very consistent to really resolve long-term challenges on affordability, you need more generation to be brought online.”

asked by Shahriar Pourreza · answered by Calvin Butler

2 min read 6 chapters

Detailed narrative

Grid Reliability and Storm Response

Exelon's utilities demonstrated strong grid resilience, with all utilities projecting top quartile reliability and ComEd and PHI in the top decile. ComEd experienced 16 major weather events, more than two decades, including severe storms that impacted 530,000 customers, with 90% restored within 48 hours.

This performance reflects disciplined investment in grid infrastructure, leading to a decline of nearly 2 million in annual customer interruptions since 2021.

Regulatory Activity and Affordability

The company is actively engaged in several rate cases, including Pepco Maryland, DPL Delaware, ComEd's grid plan, and a new BGE filing. These filings aim to recover prudent investments for grid maintenance and reliability while balancing customer affordability. BGE delayed its filing and deferred select projects to manage customer impacts, emphasizing that long-term affordability depends on a strong, resilient system.

A final order for BGE is anticipated in January 2027.

PJM Market Strain and Resource Adequacy

The PJM market is under increasing strain, evidenced by a record demand peak of 168 GW in July, surging power prices, and a capacity auction that cleared at the FERC-approved price cap but still showed a 6.8 GW reliability shortfall.

Only 525 MW of new generation cleared, highlighting a significant gap between growing demand and new supply. Exelon advocates for an "all-of-the-above" approach, including transmission, demand-side solutions, market resources, and utility-owned generation.

Large Load Demand and Customer Protection

Exelon is proactively managing the influx of large load customers, particularly data centers, by structuring agreements that require real financial commitments and collateral for necessary infrastructure. This approach, reinforced by FERC's recent dockets, aims to protect existing customers from speculative requests and ensure actionable demand drives system investments.

The company's data center pipeline has been refined, filtering out speculative projects, with 4 GW backed by $1 billion in collateral.

Battery Storage and Virtual Power Plants

Exelon is advancing practical solutions like battery storage and virtual power plants (VPPs) to address capacity needs and manage price volatility. A significant 500 MW battery storage project in New Jersey, developed with Invenergy, is expected to provide over $700 million in net benefits to customers without bill impact until 2035.

VPP programs in ComEd and Maryland aggregate customer-sited resources to reduce peak demand and support grid reliability.

Balanced Financing and Credit Metrics

The company maintains a strong balance sheet and disciplined financing plan. Approximately 86% of 2026 debt financing needs are complete, and 37% of planned equity needs through 2029 have been priced via ATM forward contracts. Exelon expects strong average credit metrics of approximately 14% through 2029, supporting its capital plan and future growth opportunities.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.