Exelon (EXC) 3 May 232023 Q1 Earnings call transcript

Hello and welcome to Exelon's First Quarter Earnings Call. My name is Gigi and I'll be your event specialist today. All lines have been placed on mute to prevent any background noise. Please note that today's webcast is being recorded.

During the presentation, we'll have a question-and-answer session. Instructions] [Operator

my President today's floor of now Andy over is to Vice Plenge, Investor pleasure is program turn to yours. It Relations. The

Gigi. you, Good everyone. Thank morning

be first with We of are remarks. today Exelon's to Other questions are Jones, Exelon's available Executive team for are Exelon's have Chief Butler, call. also you senior following and today and pleased our the management to Calvin and XXXX your with members Officer; prepared quarter President call Chief earnings Leading Officer. will us answer us our Jeanne Financial

You this section be Relations may have seen found presentation that with can we Investor issued the of our Exelon's morning, earnings release being release in today's website. our used for the along

we estimates during statements As contain forward-looking are call, that will discuss risks a earnings matters reminder, the and and today's to release subject various and uncertainties. that other

from actual factors this and result, call. could and results discussed a comments in assumptions on As forward-looking material today's differ statements based during made our

today's in from management's other other cause differ to find risk SEC results factors forecasts that can and and of discussions X-K projections, expectations. factors You for may filings Exelon's and

call. today's of release addition, the presentation the other Both non-GAAP our presentation appendix GAAP measures. GAAP equivalent earnings nearest minutes to reconciliations includes today’s measures. operating XX In adjusted earnings between for for contain and and information and the our references measures scheduled We've

Exelon's President my is now CEO. pleasure to Calvin turn and it Butler, over And call the to

and first Andy you, everyone. appreciate quarter our Thank morning, for We call. joining you good earnings us

in and results. to lead a transformation of entered first year excited after XX,XXX-plus our premier it operations the as of have separation, energy Our shows this employees T&D utility, team the full

our delivering are plan course. We on

GAAP the These strong to and messages. is This for $X.XX share the a four, largely our a on us of weather, to progressive, start of to growth despite $X.XX on earning which $X.XX per on results decoupled mild share per testament per mechanisms within in quarter, is covering slide I'll on by keep XXXX. non-GAAP our $X.XX track We making first basis. range basis guidance key offered earnings delivered a our in the rate deliver share impact stability jurisdictions. year-over-year the

performance best with our of our ComEd in on continuing operate had four record decile. the reliability we at to all Operationally, utilities, top

to underway align As new goals it is cases, three of investment, and a is with filings with fourth shared and pertains ensure requires grid our are as engaging initiated quarter resilient, the on since rate Building to our our fairly, call. integral we strategy. well we jurisdictions earnings stronger, are to this stakeholders in investment smarter, cleaner our it a number compensated

and Jersey XXth, reliability, Electric ACE’s to Smart base Meter in support maintain City will deployment, rate of which safety, shortly. February for Public includes the recovery our customers. to with service Board a Atlantic It also benefits Jeanne a that case highlight infrastructure host On of distribution filed investments New initial Utilities customer brings for

incorporate investments transformative DC's filed April Action second cases in enable energy energy policies by Now Solutions Both its XXth that multi-year filed jurisdictional plan Act policy, Pepco like February DC Maryland BGE its NYP be on guided NYP the whether Climate and the the or transformations on XXth. it DC Climate rate second Plan.

the details Public expects the will the Service for our open across to PECO Jeanne highlight cases rate with additional next steps shortly. take later rate NYP, calendar year Finally, provide on violate filing month. to our base and anticipated time this final regulatory second the Commission Maryland the

to new outgoing and chairs with pending in We the service begin the on Illinois in expected the appointees are and the in through jurisdictions, these new Now rate commissioners Maryland, and of or Maryland. we phase excited Illinois, cases, energy newest this transformation. of across our have in working appreciate several next working Pennsylvania, new place members commissioners including and

the in stakeholders, across transformation through which This approach through it transparency this of needs is bodies inevitable measured accomplished decades, and the building of priorities forward-looking be will and in reinforces of importance a shared collaboration. variety of regulatory legislative a supports over kind time. Given understanding continuity evolution and

by we we Lastly, ranges, customers XXXX and X% of making our continue reaffirm earning at on earnings are growth time. X% match to ROE behalf that existing during annual XXXX the XX% range expectations or with XXXX, X% be to growth to midpoint to our in to to XXXX annualized to better the underpinned investments the an consolidated of dividend and

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

results and reliability, leading utilities frequency both that industry are performance. terms that at you and of our five duration see Slide reviews achieved built the can with Beginning operate an record Our performance, operating best to for pursues highlighted outage our relentlessly PHI outage utilities as start the four outage is on on levels, XXXX. of best philosophy slide. next and outage first Exelon, on ComEd all performance system Both frequency duration. continue on in achieved record operating

are equitable our capturing continually one performance better system ensures an metric metrics. on outage customer each the the of our customer our Now on total transformations. are the time service stakeholders made, work our next customer the a consistent utilities we reliability and employees basis with our foundation This the average using investments great in that reliability have speaks refined territories. This support operations and outage is we to with of experience of discuss that a our now improving versus testament phase we resiliency and in as day. providing duration energy of focus value, each as every to put investments to and also their hard comprehensively effectiveness It

improved top from third quartile, is both is the the operating BGE As up to in levels, it last quartile pertains quartile now second safety, decile and from second top the quartile. PHI year, while at PECO

zero by are Now, culture. tolerance we have company, front made while safety have on progress safety we the encouraged focused a in the we the

decile than each of We its PHI performance targeted all quartile run class awareness our Gas all of performing ComEd, continues gas its in second perfect address a under XXXX. rating. hour, to using at training light are response order utilities to three as top of the responded less achieving such in performance. with training at owners world in ergonomics to areas move levels an utilities, out at driving

Lastly, I spend customer about to talking moment want a satisfaction.

quartile. XXXX quartile in As you can operating are after out four in of utilities top our second see, the the three closed four out

operating there a are trends. common areas address, unique While to few company has each

instance, whether continues for raised or rely around as be to For our outages cars. the grid, communicating the their customers charging bar They increasingly time. remotely access working on it with need to and real customers reliability information be

have and the such we they We on we and improving enhancements their to already at have made mobile investments the as apps, and communications. focused tools about are excited disposal, will continue invest

latest of those of slower to turnaround customer XXXX other the one of new is customer lower These investments technology enhance available area the that is to experiencing times. care relative meet our benchmark driver self-service Exelon. to for customer provide primary as perhaps not billing is services satisfaction us options around scores focus another options But unique through will to and and and more to needs upgrades Although, allow billing software.

continue recently, by bill of levels. will lives has supply pass-through That's energy While we overall customers a impacted businesses. why aspects have on more shown average the that signs for and their inflationary around costs in are environment maintaining abetting and to than many particularly rates us, costs been increased of focus

Again, years. of totaling rates cities are $X assistance XX% we as well, to in and maintain over own largest billion are to and in States, the we the as the to amounts below continue the the But to in two products our average our United value articulate efficiently customers increasing focus last cities as deliver connected have will on our rate receiving, we cost possible. have customers managing

impacts bill approach to and address cases. our also rate We

to of for expansion customer residential of programs. arrearage rate example, DC are proposed of and the top ComEd priority as XX% remains aid PECO's proposed Ensure XXXX is and industry just the Our deferral a is one leading us. increase satisfaction we XXXX management

an provide Jeanne? first for the quarter. update financial our will Jeanne Now, performance on

you, highlight serve and the also morning, Today cover will progress first which and updates I'll I case in and cleaner financial Thank better quarter and utilities on everyone. Calvin smarter, our ways grid are our stronger, to customers. all schedule, good a our XXXX rate advancing energy

adjusted earnings operating we on [ph]. plan slide Starting our show quarter-over-quarter six,

per $X.XX Exelon earned $X.XX quarter XXXX of of in Calvin of growth reflecting same versus period. in share the mentioned, per quarter over the the first XXXX, As first $X.XX share

rate completed treasury ComEd's $X.XX by transmission growth from investments Variance and of cases, uplift and with hourly. higher in primarily rates, rates distribution including [ph] associated higher was distribution impacting the driven

benefited $X.XX at sustained due winter, adjustment jurisdictions from of $.XX other and partially in These the the levels operations one-time rehearsal the items interest Pennsylvania of from company. were Illinois. the the non-decoupled to the impacting discontinued and temperatures our from well lower and $X.XX holding higher refund offset separation of earnings as items rates warmer the than higher of normal in including customer by throughout right to Delaware, due also debt as expense We the interest XXXX,

on projected earnings share midpoint was in Historically, guidance an operating quarter $X.XX approximate have reflects earned full quarter. contribution range. the in average earnings XX% the year of the of per we There first also our XX% of XXXX first

treasury we due to absence at PECO, XXXX, of rising to slightly are ahead separation. be pattern from rate relative rates one-time expected completion XXXX to item into Heading historical we income and the impacting as PHI the a cases of and of QX the

also at also seeing PECO weather were DPL the seeing and unfavorable Delaware. impact are we However, we of --

some due balance tempered at we to ComEd. carrying of timing credit While expectations mitigation still the of and carbon the upside, of recognition earnings the costs weather related to ahead PHI that by delivered

quarter our midpoint earnings The timing projected the XX% the delivering approximately Looking in full in expected last of the of we year achieving half the line earnings with approximately how factoring some first puts performed guidance second of and XX% projected XXXX. year range. our is year half in will first year, for for to contribution of result combination XX% expected relatives first full ahead XXXX after quarter, EPS to the of through QX earnings XXXX. half the PHI This results in at of year-over-year QX items, moderate of next full in

practice, impact base our of benefit as customers mitigation credit With this cost associated we of carrying approach in management, on $X.XX X% balance. in within the increase per On by cost XXXX. expected offset our affirm first platform, goal full at weather a In the to with midpoint share our be guidance PECO, would year the full quarter third expect better favorable or the line levers across utilities expect to O&M until of protected of the past returns $X.XX a our in deliver basis, we that to combination to at for to we and of earnings continued quarter $X.XX with remain not year the and targeted is to the the asset achieve capital full regulatory track unfavorable earnings with rate of the carbon year XXXX always XX% range earned and year-end, and recall, to our the visit deploy we guidance range. experience depreciation disciplined operating

the of the of XXXX and at growth XXXX the with reaffirming midpoint XXXX, EPS respectively, target from compounded through we to better XXXX range. fully guidance midpoint expectation are growth annual regulated be that Lastly, and for operating XX%

Turning seven. to slide

front there the earnings mentioned, been Calvin call. the regulatory important since some As developments on last have

Let in two of you electric progress. cases rate me by start reminding distribution

for Power updated effect request revenue test XXth subject in July has a $XX.X case, Delmarva its Delaware proposed an a increase First, to on both going into million full electric refund. based distribution period rates rate on revised

a expect the of in XXXX. second We decision quarter

will distribution previously, held XXth. is December the in discussed as electric than hearing say we rate in A due key order plan the as milestone. Commission in case Additionally, May August next to XXnd, staff January, on later and testimony [indiscernible] its expect multi-year late be ComEd Illinois no ComEd intervening Commerce expected from the final filed evidentiary and

filed experience increase in reconciliation effective as rates rate the January in its earnings. their depressed also of at the starting $XXX ComEd which the XXXX you'll seeking impact recovery increase US reflected from Xst, formula levels XXXX. XXXX Treasury of A during COVID-XX was is million driver to recall pandemic, yields key

by reconciliation in order on statute First is the expected December XXth.

the cases call, there filed. earnings were were Since last three numerous

XX.X%. $XXX case Energy Smart increase First deliver deployment RV including highlight the City investments The of on Public filed XXth, which reliable, EV of for through Electric filing a million, to Program February enhance Jersey later service based revenue a programs, New presentation. Board Program, safe, Atlantic key the Electric Utilities supports company's and Smart distribution the in seeking with sustainable an rate of reflecting of energy Vehicle and the will and customers I Network critical

the of XXXX these customers to the experience efforts electric energy frequency with the record. most sustained lowest in Because on reliable grid, eight service modernize ever of energy outages

permitted implement is and to expected November refund, full ACE first may As final New XXth, Law, rates subject order by Jersey in quarter of XXXX. on a the proposed

vehicle Next, BGE multi-year building and will natural million which Covering on $XX support Service into billion BGE we an XXXX, annually through Public into filed programs. nearly preview the plan gas our the as the year how efficiency plan invest total XXth, quarter XXXX indicated details local fourth its nearly $X.X nearly electric and estimated in jobs inject with earnings a the by on will in second and Maryland in billion provided February study grid Commission call. economy Caldwell performed the electric XX,XXX University. and [ph] $XXX investments These system multi-year

BGE's maintenance designed is the goal XXXX. and customers' programs by XXXX to projects Importantly, the state more of on the needs, foundation proposed than for order Maryland plan and meeting lay XXX continue its December, emissions and in includes plan reach net-zero of expected infrastructure to

multi-year in on provide costs As XXXX on CF under order also noticed, of that we proposed parallel an XXXX with the $XX the second reconciliation plan. million requested of commission the order recovery totaling and the

Ready grid, with to the to eight security me period by to slide filed to $XXX.X want XXth. enhance the the Pepco ambitious of where the planned further that XXXX multi-year most reliability, and DC's recover I that a April in of intended was carbon of to on is the of investments Service revenue Climate resiliency, moment neutral Columbia the district's capital highlight take increase goal Pepco XXXX, Public and goals requesting climate Pathway brings plan That to the one to over energy XXXX be million Commission nation. support are local the District to

allow investments load energy, be when also is the cleaner renewable such electric technologies will it. will customers like to vehicles, will they this integration done access solar. that service of customers and equipment they infrastructure Pepco ensure in enable energy help the Specifically, through as adopt more available manage to need and on They will and electric depend

many cables electric nearly high Pepco's focus Ready reliability. customers the newer at included miles of in maintenance are the proposed plan and Pepco's As one that communities quality so advancement multi-year experience cables plan, with programs central improving affordability and social more with involves XX replacing of power forefront a high all modern is aging equity service the the that Climate It of and Pathways of of service. customers and on

the to district, Management as assistance, average valuable Arrearage to these enhancing would programs to customer. XX,XXX which $XX on provided approximately any Residential include any in company the for enrollment income who affordability, of for $XXX as address customers Program expanding is measures Discount XXXX low reach further that hoping help DC Aid alone qualifies program commitment, filing extend customer part of plan Expansion the of the million in to the nearly well As proposes including several energy the program Pepco in per or [ph].

comprehensively DCPSC than in rate than local energy expected energy procedural next slide our plan work future, economy of XXXX, a resiliency, with further million by in foster service and on to directed and accommodating significant can keep appendix. investments. February, find the This full-time cleaner you and is requested All of proceeding phase X,XXX schedule. An security resources are XX on order from XX-month ongoing based to inject toward of transformation $XXX the affordable, multi-year reliability, Pepco's through is improve influx cases proposed support DC's through XX the jobs. more expectations more and a detail the line

nine. Moving to slide

the preparing During energy to talk in through serving Jersey how Atlantic of vital the billion City investments invest energy planned about for major and South meter the clean like Today, in $X.X program, smart initial for capital enhancing is also high I to of are the customers have to utilities. while transformation. experience are commitment our These infrastructure meet service for grid track benefit for the maintaining Network first the we customers would that continued to Exelon we Smart program Energy Electric last our standard XXXX. the in the on quarter, our customer deployment

smarter have operational provide all steadily grid. energy replaced of beginning make expected meters meters broad Smart fully power by benefits and are to installation, next real-time they systems per Smart Network and and resilient. and businesses, deliver and customer usage employees partners in a million to homes foundational contract our information their understand mid XX,XXX They in and better With upgrading is XXXX, enable to been efficient the ACE customers $XXX approximately more are to month, XXX,XXX September installed enhanced the of over meters expected a XXXX. years. operational, Energy to When XX and be

billing faster they ability as these restore the a more more save outage energy efficiently. and well information Most need and when And provide outages reduced notably, help tools customers money, benefits to as power provide include less use to that the detailed occur. for and capability estimated

by reduce loads, contracted major meter million stand to of and XXX,XXX store on costs. to other basis, net better solar, approximately operations which in To allow an perspective new experienced They of into benefits clean reading territory at annual also including penetration ACE's a XX% annual integration $X.X cost highest technologies, demand. all our relative jurisdictions truck save peak of has for and put XX% eliminate the expect in energy ACE of

Energy in This Smart a of utilities, benefits Jersey is resources this Network meter is a is cleaner Exelon ACE meet committed initiative. future goals. energy to customers expertise of Leveraging its from realize critical the South full its helping the its for the upgrade state sister The advancing collective using and step ensure climate all power platform. to

sheet. [ph] and on points on remember XXX As slide over XXX period balance the XX% guidance our calculation, a thresholds was strong at minimum mitigated consolidated cushion its earnings to the downgrade sheet of of our of being over on balance metrics repairs we above the alternative call, credit an tax in as last corporate not end our S&P period, a XX, to basis average If shown of our maintaining project guidance demonstrating corporate commitment through we inclusion Moody's lower on that to discussion XX% our XX%. for you anticipate

energy We treasury, remain And the encouraged will can its year-end. continue how are impact providers issue engagement before understanding they by optimistic like implementation guidance from the have await infrastructure to we in Exelon. they we which

a at any and positions our long-term financing us From completed $X.X billion over XX% unexpected well This planned approximately we market corporate financing entities. raised for of we in debt of $X balance perspective, the year. have billion and XXXX have needs. the successfully ComEd PHI the for Today volatility

balance you demand T&D which value continue investor to our make company strong our to is strength holding to utility risk progress of low our XXXX. a continue a there for as testament of guidance as offerings, on to see plan. we change with premier To sheet as proposition been We reiterate attributes. the to no equity million equity debt that and our in $XXX by our issue a has update needs, We'll

back remarks. to turn and you, call Calvin I'll now Thank closing his for the

you, Jeanne. Thank

with XXXX our prepared our for T&D commitments premier reminder and as conclude the me of Let remarks utility. priorities

of can focus operations. core you hour on with day. safely our that reliably is Operating us count mission, to on and It and every starts every

coordination on requires stakeholders engage Secondly, have and we alignment, well our our that and four with as we our three of goals. proceedings lot you set of heard most for frameworks. given multi-year meet system energy efficient a means welcome a jurisdictional opportunities next Jeanne, effective the and set years, The full our the will case from the of to rate transformation to plan underway path to

focused we delivering this the ROEs to third, year, to And deploy in billion X% financially. are guidance XX% on to earnings share. We're range $X.X while before, maintaining on and looking $X.XX capital earned range our of ever more XXXX $X.XX of executing per than

financing continue progress the great We while on groundwork ensuring to we also balance for laying financing future needs, have plan for made is sheet year, our our focus and on strong.

focus on in to ensuring provide we are maximizing manner. we customs, Last, value we the an them serving and equitable continue our

energy example recent an we to I'll how are to with point affordable BGE's more of transformation, partnership support innovating of the City a As Baltimore.

mile take City and while for its share construction improving BGE advantage to XXX healthy all amount the the a BGE system of capital and responsibility Specifically, power. conduit infrastructure, the for ensuring provide will reducing efficiencies, improvements, maintenance affordable conduit contracting more City's and to paid reliable allowing

in vision in We of transformation progress stretch made our first thoughtful benefit to highlighted look technology over XX end months and beyond we of of in our our smart commitments in Indeed, our fill operations, program, ago. of planning such million talented our of XX of the June, to programs. the three that coordination. those from the XX that investment educate forward program development five direct additional future Jersey. utilities. reliable needed six on Network our training are meter than energy, And jobs And the to XXXX employees established Jeanne ACE's anticipation energy through the graduates expect six-year, that workforce by to providing like was of more In we graduates energy these building facilitating program to development as established cleaner, an will programs years will a this XXXX. Energy New our communities reinforcing job generations across deploying X.X greatly support meeting and Smart workforce investments the more continue more beyond than hire

delivering are on course. We

questions. your welcome we and you, Thank

you. Instructions] [Operator Thank

Guggenheim. line question Your the first Shar of comes Pourreza from to

morning, good guys. Hey,

Good morning, Shar.

morning. Good

Good morning.

So, hey, guys.

I night. Illinois. to outcome start the we Thanks. to saw XXXX guys of a taken steps even with trial a at legal since maybe you sort point, the read-throughs have could remaining improve, mean, any this or Realize high anything last lot construct ComEd of standpoint. for from but judicial we if or level Just obviously regulatory

Shar. Yeah. Thank you,

So and The by but Shar, the we as first that deferred regulators. XXXX government want investigation agreement with start, Justice the have our from into prosecution signed have conducted to done cooperated we know, more clear that. we than much you investigations fully resolved the Department's ComEd, the be in

changes our and that We contracting, my ensure leaders the that organization in the throughout does have made conduct on substantial day to the all lobbying the Illinois. trial who -- levels and compliance X,XXX the issue happen through lights employees every operations at office at not in again the from of to keep was and

of highest our behavior committed integrity the business. and are to ethical We for standards

We of responsibility XX do million privilege difficulty] have that not the well lightly. [technical customers, and over the we take and

result issues that forward. a to the ask other proceedings But about I'm of time spend come Jeanne ComEd, to Gil, to this. regulatory move we And have some of as through as walk Jeanne? your kind want talking I the legislative question, of going and CEO to have then

Calvin. morning, Thanks good Yeah. Shar. And

touch Qs our suit when agreement, continue the comes matters we And Department those. security next so And Q then, filed with Calvin suits. late just I'll surrounding the But the all comes FCC to out DoJ [ph]. a resolved these they as when for be outlined on that's to events leading mentioned, those. But suits the and there and and today. and XXXX, security XX-Ks there that and was be and just see out disclosed briefly through in our couple updated been prosecution have there's June. you'll a and And in this again, derivatives a were it Justice. suit that things did the matter legal will fraud status was we've the have So, investigation, The of deferred consumer checking later Q that, derivative court the

probable $XXX is be matter by have loss of a to development, on So million, this based booked that recent insurance. but in fully we expect recovered

from So that. there's or impact earnings no cash

perspective different little including There are types filed you were the claims three company I on receipt XXXX, a pending, that is in all lawsuits. that financial amount derivative in April this cash remind there one there's assert of couple would were May ones bit from and and resolved those similar and that recovered They those. But in of updates a suits any new no to a year. and

were And -- to fraud fully. dismissed, motion to continues we on the been just the then FCC investigation argued two late to our in then there And no cases three consumer have April. filed, case and remaining of lastly, which dismiss cooperate But continue update that.

that's play-by-play Q so, give those. again, just for update, kind of we a but a status And kind of the

to over to And so it turn multi-year I'll through maybe talk Gil the plan.

Yeah.

the parties, and of Illinois goals the our It Our an of process past JOBS transition energy equitable extensive proposed and goals stakeholder -- state. energy plan environmental is energy parties over orderly here grid modernization product the the of with and policy years. Climate multiple Equitable plan and multi-year couple Act rate support in in of alignment policy a XXX% with

case rate all know, proposed year, with working you this in we our look forward and openly January we continue to collaboratively. and filed of As parties

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

on So, and that appreciate question. Shar, course we're

a wind XXXX. by Calvin month, set just aggressive And gigs target offshore pretty Maryland, obviously lastly, Perfect. X.X last then,

What you I the see Delmarva, differently? this in guess As at I at point? as transmission Thanks guess look guys. put do we we incremental embed plan opportunities could today, plan at

question have passed, spillover what So can, in asking the could just if that offshore I Is Delmarva? that that a you're that's is Shar? legislation happening Maryland's that recently from along there,

we're thinking Perfect. opportunities, about And as yes, correct. transmission

Yeah.

that contingency transmission holistic system a first the transmission as and opportunity items. The But and conduct Shar, of PJM it use more and amend foremost, taking approach for that. present study open infrastructure, what's nice in you transmission. single and with the will know, participate avoiding I challenges, Exelon requires leveraging does it grid of of prioritize permitting to a systems legislation an -- will think any existing about access risks collective it, legislation,

Exelon all can goes how from So differentiate others. this itself to

know, megawatts you energy David we as anything And to me by that. capacity I to oversees add Velazquez of who a the reaching goal And X,XXX a think And XXXX. state I of there? of part offshore wind has transmission. have positioned next Dave, well our to be are

in do there. to direct for beginning the plan We in of for Shar, the there or included are solicitation PJM current on a transmission offshore just issue support opportunities the And to add. We've Yeah. reads not incremental that's kind PSE for the transmission that the that to anything July the potential JSC of opportunities there. wind. transmission XXXX, the think way needed the legislation by competitive will the

guys so Appreciate much. you it. Thank Terrific.

Thank Shar. you,

Thanks Shar.

Thank you. question. for our moment next One

next comes of Paul the line Our from of Bank America. Zimbardo from question

Thank Hi. you. team. Good morning

Good morning, Paul.

Great.

you script I the could which I it's you in mentioned broader you believe the for O&M realize weather. If where sounds unfavorable platform, PECO just were what offsets and the than discuss across the from and the expected to at segments Pepco, drivers you're savings you said weather? impacts think

add hit free feel on too. I'll Yeah. Calvin it. to And then

enter we a of combination conservative in So with start matter. $X.XX, think and did the a it's of this sort levers. what year when you I'll substantial And about to

may year year help beyond. you last -- at in some some end the we us we favorability XXXX and So derisking had to of weather the remember we and did storm and

year. the helpful that's heading into so And

really first you having Second, corporate that by rate think financing in sole our about other completed lies mitigated quarter. risk where if the we've exposure, interest in volatility

It on have So can locking And have you and sensitivities in that as exact, the in we business. leverage the do about, entity, right, see remember the well. on really would bottom line, no but corporate then the dollar down saved our at we talked more all across that in, that then hit areas that. exposure the be focused areas soldier to as you

it'll the platform. so And a be across combination

asset. credit on finally, rate you I then to full about In a the in favorable had On deposit penny relative addition a expectations. to had if see carbon of $X.XX reg mitigation do And to totality, PECO some depreciation we basis, $X.XX. at we about going year think we that, be as from favorability probably mentioned that the -- that's the

offsetting that the of all year range So the and line in of feeling and delivering $X.XX pure the at put or about good when midpoint you sites together, the better. rest

you there's I difficulty] the are into changing could rate Okay. opportunity, be? factored And saw items plan. much Thank the you. And could just confirming how to if quantify you. kind those of then Thank that Excellent. based, [technical offset topics. any

midway I your Hey, you please? repeating Shar, Paul. cut out you Would mind question. mean, through that

was the Act. and Infrastructure IIJ, Sure. I about the asking JOBS

that Just headline I the quarter. saw during

the opportunity Exelon. just there what federal for rate kind the If you be from today. incorporated And any offsets plan if of could quantify if to are based in could that's financing,

Yeah.

go take please. from and I'll let there, then we'll Jeanne that

Thanks Yeah. Kelvin.

you. Thank

is process. competitive the $XXX a million for, it's So what really applied we've so

what of estimate hard in. we but So tell it's get, to that can portion we'll what is you haven't it I factored

that we'll as -- -- expecting to we're meaningful to rate And any if that you update reaffirming continue update there's needs, that impact to we're So then progresses. not everything. on base finance

just understanding, to partner utilities goes with us do add Exelon do factor jurisdictions. of energy as I And as the create it and we what the faster. this the for IIJA we've And also tremendous affordability specifically our we to how jurisdictions and said IRA drive and within opportunity before, would our Paul, transition

partnering working more our in increase in all we're looking really partner the importantly, and opportunities it communities for So investments, this endeavor. our hard to with and but we're

know you you are. both very Appreciate Yes. No, I it. much. Thank

Paul. Thanks

question. Thank you. One moment for our next

from from Steve line comes question the Fleishman Wolfe. next of Our

Steve. Hey,

Hey, good morning. Good morning, Calvin.

on just guess Illinois, framework. the we're the going the So soon the new I multi-year, recommendation get on to

like and issues I then be maybe those the Are ROEs any kind I -- should incentives, or guess are there structure things other base of variables. the for? key any rate capital are and we key other to things watching the and assume that in obviously, So monitor recommendations

because, I'm Thank Gil let been intimately that the he's in to Yeah. involved take Gil? you. process. going in

to in. think be I that interested are to be we captured. pretty the anticipate. much you've Those items going are Parties

then minimum think allowed that And I was under -- do still… the Okay. a Is structure bill. capital I there

of kind true. like It's Yeah.

… to XX%?

Yeah.

XX%. Harbor at

cost Okay. rates earning carrying on I carrying a not deferral, just yet or the CMC in is charge the the that other guess on? my -- you're this question, recovering that And CMC you're charge recovery

end zero XXXX of right. early That's which it was last customer It's this Yeah. at the year, year. in reset and part was earns deposit of rate, -- a then X% at

expectations is And asset and wind reg collected so for that by this outside be down relative to But to year. XXXX. expected May of

So it's earnings. years future this But not a it is helpful year.

outcome finally and issue tax, there? sense particularly there implementation there guess is has and just the Okay. the I guess -- IRA repair -- been on waiting? IRS I or developments any or sitting the And of kind the minimum on of any tax then of

status. Same Yeah.

So EI, how still, where and minimum in optimistically We sensitivity the metric and the be ongoing still year and alleviated from forecast like the year. about -- an impact give we'll the -- we'll per with isn't be, the that's it get it where guidance deduction of kind the our we Still, if if and and $XXX energy end on a in earnings Exelon. reflected credit is. all regulations of discussions you industry treasury of by us and alternative our so general, and repair providers million corporate

And would capital of some about the different utility industry recently dialogue given our I is nature business. further why say intensive the

to but the new just assumptions so or dialects, ongoing no changes And estimates.

you. Great. Okay. Thank

you. Thank

Thank you, Steve.

you. moment our next Thank One question. for

comes line of Morgan from on Stanley. Our next question Arcaro the David

Morning, Dave.

that it busy you have how year? had a such good for so in work perspectives dialogue going forward, especially -- it's be There's just Good with offer? you new any wondering to initial Thanks Hey, a was given Illinois. or morning. ICC might if much morning. regulatory that my the chair might taking I question. had And together

for you thank question. David, the Yeah.

commissioners leadership my was comments, in very the I all goals really and have state's a I forward, the in And instrumental very commission stakeholders so the think, and as Act. said we around process, directly as Chair has the used question, there Climate and creating Solinsky and and communications resignation Scott, comments But of December be former to Doug the your of heard a by has the for Pritzker first did as accept to And still Chair Gil nominated the you XXth. that know, the communication, moving derailing the to transition is to efforts. engaging drafting those the been Equitable been but forward. and are we on of who [ph] of alluded move expecting is and JOBS to date we're incoming have taking, that in earlier plan your part of nothing with multi-year final Jeanne, Governor are opening order process collaborative the

with getting chair, commissioners continues forward. and new couple process they're a along the So also new of to move that again,

Thanks. or wondering processes swing those the just and Great. to wanted -- check recovery big tend be also with -- Okay. those fit And I BGE they do costs just processes, do there in factors in pretty standardized to and terms was in ComEd I regulatory was they typically? reconciliations, are are smooth of I what

Yeah.

So the reconciliation the filed the XXXX they -- on under XXXX the is for rate. on -- ComEd, formula

been a this So XX years. for is reconciliation going that has on

rate. part up cash formula my as the think rates of I that collection one is just the in a on that that mentioned remarks, the treasury And So bit true prepared straightforward. is I the more of under little

then earnings, it in You rates you set up prior later. but on in you and treasuries year can recognize rate then based it true the

that it's on sort and been clear. in that So of sense going one's it's pretty standard the

in The first is though reconciliation Maryland. BGE one the under multi-year plan

a through through. the will time there's going so there we're it. framework And to first work be this But

if -- as going order the year this what a a you think think asset we or forward put setting come customers. where but you is right, of I here, of it's kind it's year, important into will can we put conversely, well. there's And of we'll I but so up in so receivable December if recoverable, a that liability And that really a know reg place to I mentioned, well, for important get and that variance what's this in terms you precedent what or get not. we okay, And do up can back say, that's

that it forward. is first think through in be going ComEd, it I been. helpful helpful has once time So We've will get the very going you seen through as

Got helpful. Thanks so Okay. it. much. That's

Thank you, Dave.

our question. Thank next for you. One moment

of one last coming be will the JP from question from line Jeremy the next Securities Tonet LLC. Our Morgan

Good morning, Jeremy.

Hi. morning. Hi, Thanks. good

Morning.

to dial if changes wanted policy there. in Maryland, are the and we more into Just kind little bit these out We've goals could. commission there of a seen

future of of BGE, impacts see the both and wondering, electric offsetting kind you or wondering thoughts gas the the and is that Just there just over gas that how updated how affecting time side, Exelon? or about

Yeah.

take have it the who's additional piece information. I the turn with me, has and I'll Carim the room, see over BGE. question. and But CEO he me And to of let Carim any great initial So if Khouzami then

position appointees. it is BGE So just as the the critical chair -- within said believe Maryland. Illinois process of infrastructure gas transition alike and Moore has are continue as well Having doing jurisdictional really taken is moving to having Governor with is well a to Maryl. what we within our a our industries and it's rivaling to Maryland, a of the California portfolio like we're long-term of the an Illinois, couple with throughout going state and goals of decarbonization of very decarbonization push the as a and commission electrification we Jeremy, forward. the business alignment The Moore of gas of aggressive Governor replacing there that, as Pepco as through transportation

greenhouse is that reduce gas approach and for to attacked we've continue in emissions effort. portfolio of And in system our as reliability customers critical because a We our affordability endeavors. the it

we have So state. with that communicated the

BGE further choose. just in Carim has been he and if conversations, a I'll step very those it let involved take

Thank good Calvin, morning. and you

hit you good all points. think I

goals would which utilities and session, economy other laid is of what Maryland Solutions key Climate all last the Act, the legislative the state and where through working us at right Now year an forth to the as table points of determine out highlight are the path BGE the of for a is they at we're One parties, Maryland will interested and achieve for groups that with going wide, to end now, in set working be issues forward. those year's concluding this with recommendations. other the number

as goals. state is to infrastructure. reliable, have do still of with are and that part includes kind to part We right of the number future. groups confidence talk most the the to of And be path the mentioned, being the see pathway is one and a get what will affordable, the we as that there we're the gas working As resilient for ways Maryland, through that Calvin of

illuminate in Got just liabilities change then, a non-GAAP And perk little to the as more reconciliations the audit color a were. on question the a it. and very items to I little just those color you bit was far what there. if helpful results as smaller in but environmental could GAAP hoping liability, in, there overall, That's bit just of pivoting on change

Sure.

Sure. Yeah.

a environmental the issue to update -- that's on where remediation liabilities, a the legacy PHI for continue is So we of estimates that.

there. we just the reserve slightly increased So

probable We on ComEd audit booked draft the just audit XXXX. about loss. and earlier year. a in ongoing $XX ComEd item, we And the On million this based of got began perk findings discussions, an had on

as carver the two. But from unusual ongoing. operating that's that's we the them of So out infrequent kind of nature And perspective. an

Got sense. there. That's it. makes helpful. I'll it leave That

you. Thank

Thank you, Jeremy.

this At time… you. Thank

last the question? that Is

like over turn to would conference back closing last remarks. question. the this was Calvin time, the to And at Yes, for Butler that I

with to you questions. that, the engagement great And you, to Gigi. And want and joining take concludes I appreciate a call. say for thank a moment day. Have us your today. just I Thank your it all

This for our all us our participants presentation. to joining concludes Thanks today.

disconnect. You now day. a Have good may