Exelon Corporation · NASDAQ:EXC
Exelon — Non-Deal Roadshow (2024)
64 slides from Exelon's roadshow presentation, 2024
Slide 1: Winter 2024 Investor Meetings
Winter 2024 Investor Meetings
Slide 2: Cautionary Statements Regarding Forward-Looking Information
Cautionary Statements Regarding Forward-Looking Information This presentation contains certain forward-looking statements within the meaning of federal securities laws that are subject to risks and uncertainties. Words such as “could,” “may,” “expects,” “anticipates,” “will,” “targets,” “goals,” “pr
Slide 3: Non-GAAP Financial Measures
Non-GAAP Financial Measures Exelon reports its financial results in accordance with accounting principles generally accepted in the United States (GAAP). Historical results were revised from amounts previously reported to reflect only Exelon continuing operations. Exelon supplements the reporting of
Slide 4: Who is Exelon?
Who is Exelon? 6 T&D-only utilities 4.1 million 1.3 million 1.7 million 0.6 million Operate within seven regulatory jurisdictions Electric customers Electric customers Electric customers Electric customers 4 major metro areas served 2023 Rate Base: $20.3B 0.7 million 0.6 million 0.1 million Chicago,
Slide 5: Premier Utility by Scope and Scale
Premier Utility by Scope and Scale Largest Utility by Customers(1) 10.7 10.2 10.1 8.9 8.6 7.0 6.2 6.0 5.9 5.6 5.3 5.1 4.2 3.2 EXC Peer A Peer B Peer C Peer D Peer E Peer F Peer G Peer H Peer I Peer J Peer K Peer L Peer M Among the Largest Regulated Utilities by Rate Base(2) $106 $76 $71 $63 $60 $57
Slide 6: Delivering Sustainable Value as the Premier T&D Utility
Delivering Sustainable Value as the Premier T&D Utility SUSTAINABLE VALUE INDUSTRY-LEADING PLATFORM ✓ Size and Scale: Largest T&D utility in the country serving 10+ million customers ✓ Strong Growth Outlook: ~$34.5B of T&D capital from 2024-2027 to meet customer needs, resulting in expected rate bas
Slide 7: Diverse, Fully Regulated T&D Utility
Diverse, Fully Regulated T&D Utility Servicing Large Urban Areas Across Fully Regulated, Transmission and Distribution Seven Regulatory Jurisdictions FERC Transmission IL 21% Electric 28% Distribution Gas Delivery 65% 12% ~$60B(1) ~$60B(1) 3% Other(2) 3% 20% DE MD 4% NJ 21% 5% Electric DC Transmissi
Slide 8: Best-in-Class Operations
Best-in-Class Operations Industry-Leading T&D Operator Delivering a World-Class Customer Experience Top Quartile(1) Top Quartile(1) 1.00 8.15 0.98 8.09 0.92 8.09 0.88 7.92 7.92 7.85 0.76 0.74 0.71 7.74 Better 0.55 0.55 0.51 7.72 7.71 7.69 Better Peer G Exelon Peer G Peer F Peer I Peer E Peer F Peer
Slide 9: Safely Powering Reliability and Resilience
Safely Powering Reliability and Resilience Grid Resilience and Innovation Partnerships (GRIP) • In 2023, U.S. Department of Energy (DOE) selected ComEd and Grid Modernization Drives PECO to receive $150 million in total in federal funding to enhance Consistent Reliability Performance(1) the power gr
Slide 10: Advancing Clean Energy Choices and Driving Customer Value
Advancing Clean Energy Choices and Driving Customer Value Energy Efficiency Consistently Delivering Strong • Offer nationally recognized energy efficiency portfolios, including Customer Satisfaction Scores(2) incentives and behavioral programs across all our jurisdictions, saving ~25.5M MWh in 2023
Slide 11: Alternative Regulatory Mechanisms Across Variety of Jurisdictions
Alternative Regulatory Mechanisms Across Variety of Jurisdictions 2024-2027E Rate Base Growth of $18.5B(1) 2023 Rate Base Composition 21% BGE PECO 20% 18% 17% 23% 26% PHI 37% ComEd 40% Multi-Year Plan Tracker Mechanisms Transmission Formula Fully Projected Future Test Year Exelon projects ~$18.5B of
Slide 12: Exelon is an Industry Leader in Sustainability
Exelon is an Industry Leader in Sustainability Environmental Social Governance NET-ZERO CLIMATE GOAL DIVERSITY, EQUITY & INCLUSION (DEI) (1) STRONG CORPORATE GOVERNANCE • No owned generation supply • Executive Committee is 64% women and ACROSS THE ORGANIZATION • Targeting a reduction of our operatio
Slide 13: Path to Clean: Reaching a Net-Zero Footprint
Path to Clean: Reaching a Net-Zero Footprint The Path to Meeting Exelon’s Scope 1 and 2, Operations-Driven Driving Scope 3 Customer Emissions Reductions by Emissions Reduction Goals Supporting Clean Energy Goals in Our Communities Cut operations- 790 EMPOWERING Efficient grid Leak detection Thousand
Slide 14: Financial Outlook
Financial Outlook 14
Slide 15: Customer Needs and Industry Trends Continue to Support Investment Growth
Customer Needs and Industry Trends Continue to Support Investment Growth Transmission Continues to Represent an Increasing Area of 4-year capital investment(1) profile drives benefits for our Investment Need Across Our Jurisdictions customers... $34.5 $31.3B $26.0B $26.7B $29.0B $3.9B ~19.5 GW $9.7B
Slide 16: Delivering a Premium Customer Experience at Competitive Rates
Delivering a Premium Customer Experience at Competitive Rates Managing Costs Below the Rate of Inflation Exelon’s Investment in Grid Modernization has Enabled ~40% Improvement in Reliability and Created Customer Value… $ in millions Adjusted O&M ($M)*(1) 2016 +36% ~2.0% +41% 2023 0.78 2.4% 71 Better
Slide 17: Long-Term Earnings Growth Supports Sustainable Dividend
Long-Term Earnings* Growth Supports Sustainable Dividend Targeting 5-7% Adjusted Operating • Plan reflects prudent and Projected Dividend Payout(4) Earnings* CAGR from 2023-2027(1)(5) balanced response to Expect ~60% dividend payout ratio rejection of first ComEd resulting in dividend growing in-lin
Slide 18: Maintaining a Strong Balance Sheet is a Top Financial Priority
Maintaining a Strong Balance Sheet is a Top Financial Priority • Continue to maintain consistent cushion over our downgrade thresholds, S&P FFO / Debt %* and Moody’s CFO (Pre-WC) / Debt %* managing risks while funding growth in a balanced, ratable fashion – Illustrates low-risk attributes of platfor
Slide 19: Appendix
Appendix 19
Slide 20: 2024 Business Priorities and Commitments
2024 Business Priorities and Commitments Renewed Commitment Industry-Leading ❖ Maintain industry-leading operational excellence Platform ❖ Achieve constructive rate case outcomes for customers Financial Operational and shareholders Discipline Sustainable Excellence Value ❖ Deploy $7.4B of capex for
Slide 21: 2024 Adjusted Operating Earnings Guidance
2024 Adjusted Operating Earnings* Guidance Adjusted Operating Earnings* Guidance(1) Key Year-over-Year Drivers Incremental investments in utility infrastructure $2.40 - $2.50(3) $2.30 - $2.42(2) ComEd MYP rate order Incremental debt at Corporate net of other financing costs Key ComEd Assumptions • A
Slide 22: Path to 5-7% Annualized Earnings Growth
Path to 5-7% Annualized Earnings* Growth 2024 2025 2026 2027 YoY YoY YoY YoY OpCo Drivers(1) Drivers(1) Drivers(1) Drivers(1) EPS EPS EPS EPS BGE(2) Gas and electric MYP 2 year 1 Gas and electric MYP 2 year 2 Gas and electric MYP 2 year 3 Gas and electric MYP 3 year 1 rates and annual transmission r
Slide 23: Exelon's Annual Earned Operating ROEs
Exelon’s Annual Earned Operating ROEs* 9.6% 10.0% 9.5% 9.4% 9.2% 9.4% 9.3% 8.7% 2016 2017 2018 2019 2020 2021 2022 2023 Delivered 2023 operating ROE* within our 9-10% targeted range Note: Represents the twelve-month periods December 31, 2016-2023 for Exelon’s utilities (excludes Corp). Earned operat
Slide 24: ComEd Overview
ComEd Overview Key State Policies & Goals Rate Recovery Overview Climate & Equitable Jobs Act (CEJA) Distribution • Electric rates reflect a four-year cumulative multi- Transition to Clean Energy year plan (MYP) for 2024 to 2027 with an allowed Path to 100% clean energy by 2045 & ROE of 8.905%(3) en
Slide 25: PECO Overview
PECO Overview Key State Policies & Goals Rate Recovery Overview Alternative Energy Portfolio Distribution Standards • Electric and gas rates based on fully projected future Requirement that a percentage of electricity test year. Rates went into effect in 2022 and 2023, delivered each year comes from
Slide 26: BGE Overview
BGE Overview Key State Policies & Goals Rate Recovery Overview Climate Solutions Now Act (CSNA) Distribution Targets 60% reduction in greenhouse gas emissions by • Electric and gas rates reflect a three-year cumulative 2031 and net-zero greenhouse gas emissions by 2045 multi-year plan (MYP) for 2024
Slide 27: PHI Overview
PHI Overview Territory Overview Key District/State Policies & Goals ACE D.C. Climate Commitment Act Promotes a wide range of policies that support the DC Climate Main City Electric Customers Action Plan, including carbon neutrality by 2045 Atlantic City, NJ 0.6 Million Delaware Climate Change Soluti
Slide 28: PHI Rate Recovery Overview
PHI Rate Recovery Overview Pepco MD Pepco DC DPL MD DPL DE ACE Distribution Distribution Distribution Distribution Distribution • Electric rates reflect a three-year • 2024 Electric rates reflect a • Electric rates reflect a three-year • Gas rate based on partially • Electric rates based on partiall
Slide 29: Utility Capex and Rate Base vs. Previous Disclosures
Utility Capex and Rate Base vs. Previous Disclosures Q4 2022 Capital Expenditures ($M) Q4 2023 Capital Expenditures ($M) 8,200 8,350 9,225 9,225 7,550 8,650 7,150 7,175 975 1,000 975 975 975 7,325 7,425 975 900 925 1,825 1,800 1,600 925 1,000 2,450 2,875 2,725 1,450 1,450 1,225 1,625 4,775 4,825 4,9
Slide 30: ComEd Capital Expenditure Forecast
ComEd Capital Expenditure Forecast Rate Base Q4 2022 Capital Expenditures ($M) Q4 2023 Capital Expenditures ($M) 2023: 37% of Total Exelon Rate Base 3,150 3,150 3,100 2,925 2,850 650 2,625 900 7% 2,550 2,550 575 1,150 375 875 475 525 2,150 21% 550 $20.3B 2,350 2,450 2,250 2,250 2,075 2,025 1,975 2,0
Slide 31: PECO Capital Expenditure Forecast
PECO Capital Expenditure Forecast Q4 2022 Capital Expenditures ($M) Q4 2023 Capital Expenditures ($M) Rate Base 2023: 20% of Total Exelon Rate Base 1,925 1,900 1,825 1,700 375 1,600 1,650 375 1,575 375 1,400 400 1,375 375 350 200 26% 375 125 250 75 325 75 325 50 50 75 100 $11.1B 1,300 1,350 1,275 1,
Slide 32: BGE Capital Expenditure Forecast
BGE Capital Expenditure Forecast Rate Base Q4 2022 Capital Expenditures ($M) Q4 2023 Capital Expenditures ($M) 2023: 17% of Total Exelon Rate Base 2,050 2,075 1,950 525 550 1,675 525 1,600 1,550 1,475 525 1,350 1,325 500 31% 525 550 475 475 900 800 875 475 50% $9.7B 625 425 450 225 325 650 625 625 6
Slide 33: PHI Consolidated Capital Expenditure Forecast
PHI Consolidated Capital Expenditure Forecast Q4 2022 Capital Expenditures ($M) Q4 2023 Capital Expenditures ($M) Rate Base 2023: 26% of Total Exelon Rate Base 2,125 2,125 2,075 2,025 75 50 1,975 1,950 1,975 1,950 75 75 1,900 75 100 100 4% 100 125 650 700 625 550 625 600 525 575 550 29% $14.3B 1,375
Slide 34: ACE Capital Expenditure Forecast
ACE Capital Expenditure Forecast Q4 2022 Capital Expenditures ($M) Q4 2023 Capital Expenditures ($M) Rate Base 2023: 6% of Total Exelon Rate Base 525 525 450 475 475 425 425 450 425 225 250 175 150 200 200 100 150 200 39% $3.6B 61% 300 300 300 275 275 275 275 275 250 2023E 2024E 2025E 2026E 2023 202
Slide 35: DPL Capital Expenditure Forecast
DPL Capital Expenditure Forecast Q4 2022 Capital Expenditures ($M) Q4 2023 Capital Expenditures ($M) Rate Base 2023: 7% of Total Exelon Rate Base 600 625 625 600 575 600 575 575 75 50 575 75 100 75 75 15% 100 100 125 225 250 200 200 175 225 175 200 175 $3.9B 54% 31% 325 350 325 325 325 300 300 300 2
Slide 36: Pepco Capital Expenditure Forecast
Pepco Capital Expenditure Forecast Q4 2022 Capital Expenditures ($M) Q4 2023 Capital Expenditures ($M) Rate Base 2023: 12% of Total Exelon Rate Base 1,025 975 950 975 950 925 925 900 900 200 275 225 250 200 175 225 175 22% 250 $6.9B 750 775 750 775 775 750 725 725 650 78% 2023E 2024E 2025E 2026E 202
Slide 37: 2024 Financing Plan
2024 Financing Plan(1) OpCo Instrument Issuance ($M) Maturity ($M) Issued ($M) Remaining ($M) FMB $775 ($250) - - FMB $675 ($400) - - FMB $250 ($150) - - FMB $175 ($33) - - FMB $575 - - - Senior Notes $800 - - - Senior Notes $1,700 ($500)(2) - - Equity $150 - - - Capital plan financed with a balance
Slide 38: 2024-2027 Financing Plan
2024-2027 Financing Plan $ in billions ~$1.6 ~$13 ~($5) ~$5 ~$35 ~$19 Adjusted Cash Debt Maturity Debt Refinance Debt Issuance(2) Equity Issuance(3) Utility Investment from Operations*(1) 2024-2027 2024-2027 Significant increase in capital expenditures is being funded in a balanced manner over the n
Slide 39: Rate Case Details
Rate Case Details 39
Slide 40: Exelon Distribution Rate Case Updates
Exelon Distribution Rate Case Updates Revenue Approved/Requested Expected/Received Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Requirement ROE / Equity Ratio Order Date DPL DE (1,2) 10.50% / Electric FO $39.3M Q2 2024 50.50% (1,3) ComEd $838M Rehearing FR 8.905% / 50.0% Jun 2024 4-Year MYP (
Slide 41: Delmarva DE (Electric) Distribution Rate Case Filing
Delmarva DE (Electric) Distribution Rate Case Filing Rate Case Filing Details Notes Docket No. 22-0897 • Dec 15, 2022, Delmarva Power filed an application with the Delaware Public Service Commission (DPSC) seeking an increase in electric distribution rates Test Period July 1 – June 30 • Rate increas
Slide 42: ComEd Distribution Multi-Year Adjusted Rate Plan Filing
ComEd Distribution Multi-Year Adjusted Rate Plan Filing Multi-Year Adjusted Rate Plan Filing Details Notes (1) Docket No. 24-XXXX • At its March 7, 2024 Regular Open Meeting, the Commission voted to adopt an Interim Order on Scheduling expressing its intent to issue a final order on ComEd’s refiled
Slide 43: ComEd Distribution Multi-Year Rate Plan Rehearing
ComEd Distribution Multi-Year Rate Plan Rehearing Multi-Year Plan Rehearing Case Filing Details Notes Formal Case No. 23-0055 • At its January 10, 2024 Special Open Meeting, the Commission granted rehearing on the establishment of the forecasted rate base and O&M for each test year of the Multi- Tes
Slide 44: Pepco DC Distribution Rate Case Filing
Pepco DC Distribution Rate Case Filing Multi-Year Plan Case Filing Details Notes Formal Case No. 1176 • April 13, 2023, Pepco submitted its “Climate Ready Pathway DC” three-year multi-year plan (MYP) application to the Public Service Test Period January 1 – December 31 Commission of the District of
Slide 45: Pepco MD Distribution Rate Case Filing
Pepco MD Distribution Rate Case Filing Multi-Year Plan Case Filing Details Notes Formal Case No. 9702 • May 16, 2023, Pepco submitted its “Climate Ready Pathway MD” three-year multi-year plan (MYP) application with proposed 9-month Test Period April 1 – March 31 extension to the Maryland Public Serv
Slide 46: Utility Highlights
Utility Highlights (1) 2023 Electric Customer Mix (% of Volumes) Commercial & Industrial (C&I) 67% 60% 56% 64% 55% 54% Residential 32% 38% 43% 33% 45% 46% Public Authorities/Other 1% 2% 1% 3% 0% 1% (1) 2023 Gas Customer Mix (% of Volumes) Commercial & Industrial (C&I) - 26% 56% - 28% - Residential -
Slide 47: Approved Electric Distribution Rate Case Financials
Approved Electric Distribution Rate Case Financials Revenue Requirement Common Rate Approved Electric Distribution Rate Case Financials Allowed ROE Increase/(Decrease) Equity Ratio Effective Date (1,2) ComEd (Electric) $501.0M 8.905% 50.0% Jan 1, 2024 (3) PECO (Electric) $132.0M N/A N/A Jan 1, 2022
Slide 48: Approved Gas Distribution Rate Case Financials
Approved Gas Distribution Rate Case Financials Revenue Requirement Common Rate Approved Gas Distribution Rate Case Financials Allowed ROE Increase/(Decrease) Equity Ratio Effective Date PECO (Gas) $54.8M N/A N/A Jan 1, 2023 (1) BGE (Gas) $228.8M 9.45% 52.00% Jan 1, 2024 DPL DE (Gas) $7.6M 9.60% 49.9
Slide 49: Approved Electric Transmission Formula Rate Financials
Approved Electric Transmission Formula Rate Financials Revenue Requirement Common Rate Approved Electric Transmission Formula Rate Financials Allowed ROE(1) Increase/(Decrease) Equity Ratio Effective Date(2) ComEd $83M 11.50% 55.00% Jun 1, 2023 PECO $47M 10.35% 54.12% Jun 1, 2023 BGE $4M 10.50% 53.4
Slide 50: Commission Overview
Commission Overview Illinois Pennsylvania Maryland District of Columbia Delaware New Jersey (1) Commissioners Doug Scott (D) (2029) Stephen DeFrank (D) (2025) Fred Hoover (D) (2028) Dallas Winslow (R) (2025) Christine Guhl-Sadovy (D) Name Michael Carrigan (D) (2025) Kim Barrow, Vice Chair (D) (2028)
Slide 51: Tracker Recovery Mechanisms for Specified Investments / Programs
Tracker Recovery Mechanisms for Specified Investments / Programs • Distribution System Improvement Charge (DSIC) tracker provides a mechanism to begin recovering gas and electric infrastructure investments for Delaware reliability every six months • District of Columbia Power Line Undergrounding (DC
Slide 52: Revenue Decoupling Mitigates Load Fluctuation Impacts
Revenue Decoupling Mitigates Load Fluctuation Impacts Revenue Decoupling Mitigates Load Fluctuations Non-Decoupled Load Volumes (GWh)(3) 34,873 Non-Decoupled C&I PECO Decoupled Residential DPL DE DPL MD ACE 60% Pepco ~76% of BGE Exelon’s distribution revenues are decoupled from 7,568 volumetric risk
Slide 53: Exelon Debt Maturity Profile
Debt Balances (as of 12/31/23)(1,2) Exelon Debt Maturity Profile(1,2) BGE Short-Term Debt $0.3B Long-Term Debt(4) $4.6B Total Debt $4.9B As of 12/31/2023 ComEd $0.6B $11.7B $12.3B ($M) PECO $0.2B $5.3B $5.5B PHI $0.4B $8.6B $9.0B Corp $1.0B(3) $11.3B(4) $12.3B Exelon $2.5B $41.5B $44.0B 2,323 2,400
Slide 54: Q4 2023 QTD Adjusted Operating Earnings Waterfall
Q4 2023 QTD Adjusted Operating Earnings* Waterfall ($0.02) Interest Expense ($0.02) Realized Losses from Hedging Activity $0.01 Other $0.08 MYP Reconciliations $0.02 Distribution Rates(1) $0.04 Other(2) $0.01 ($0.03) $0.60 $0.08 $0.05 $0.20 $0.03 Distribution and Transmission Rates $0.43 $0.06 $0.01
Slide 55: Q4 2023 YTD Adjusted Operating Earnings Waterfall
Q4 2023 YTD Adjusted Operating Earnings* Waterfall $0.08 MYP Reconciliations $0.02 BSC Allocations Adjustment for $0.03 Distribution Rates Discontinued Operations(5) $0.12 Distribution and Transmission Rates(1) ($0.02) Interest Expense ($0.09) Interest Expense $0.03 CMC Carrying Costs(2) ($0.01) Sto
Slide 56: Exelon Adjusted Operating Earnings Sensitivities
Exelon Adjusted Operating Earnings* Sensitivities Interest Rate Sensitivity to +50bp 2024E 2025E (1) Cost of Debt $(0.00) $(0.01) Exelon Consolidated Effective Tax Rate(2) 8.9% 16.6% Exelon Consolidated Cash Tax Rate(3) 11.1% 10.0% (1) Reflects full year impact to a +50bp increase on Corporate debt
Slide 57: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures 57
Slide 58: Projected GAAP to Operating Adjustments
Projected GAAP to Operating Adjustments • There are no adjustments between 2024 projected GAAP earnings and adjusted (non-GAAP) operating earnings currently. 58
Slide 59: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations(1) (2) (3) S&P FFO/Debt = FFO (a) Moody’s CFO (Pre-WC)/Debt = CFO (Pre-WC) (c) Adjusted Debt (b) Adjusted Debt (d) S&P FFO Calculation(2) Moody’s CFO (Pre-WC) Calculation(3) GAAP Operating Income Cash Flow From Operations + Depreciation & Amortization +/- Working Cap
Slide 60: Q4 QTD GAAP EPS Reconciliation
Q4 QTD GAAP EPS Reconciliation Three Months Ended December 31, 2023 ComEd PECO BGE PHI Other Exelon 2023 GAAP Earnings (Loss) from Continuing Operations Per Share $0.27 $0.15 $0.20 $0.10 ($0.10) $0.62 Mark-to-Market Impact of Economic Hedging Activities - - - - (0.02) (0.02) 2023 Adjusted (non-GAAP)
Slide 61: Q4 YTD GAAP EPS Reconciliation
Q4 YTD GAAP EPS Reconciliation Twelve Months Ended December 31, 2023 ComEd PECO BGE PHI Other Exelon 2023 GAAP Earnings (Loss) from Continuing Operations Per Share $1.09 $0.56 $0.49 $0.59 ($0.40) $2.34 Change in Environmental Liabilities - - - 0.03 - 0.03 SEC Matter Loss Contingency - - - - 0.05 0.0
Slide 62: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations Exelon Operating TTM ROE Reconciliation ($M)(1) 2016 2017 2018 2019 2020 2021 2022 2023 Net Income (GAAP) $1,103 $1,704 $1,836 $2,065 $1,737 $2,225 $2,501 $2,740 Operating Exclusions $461 ($24) $32 $30 $246 $82 $96 $60 Adjusted Operating Earnings $1,564 $1,680 $1,869
Slide 63: Thank you
Thank you Please direct all questions to the Exelon Investor Relations team: InvestorRelations@ExelonCorp.com 312-394-2345
Slide 64: C\ exelon’
C\ exelon’