Slide 1: Summer 2020 Investor Meetings
Summer 2020 Investor Meetings
Slide 2: Cautionary Statements Regarding Forward-Looking Information
Cautionary Statements Regarding Forward-Looking Information This presentation contains certain written and oral forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to risks and uncertainties including among others those related to th
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). Exelon supplements the reporting of financial information determined in accordance with GAAP with certain non-GAAP financial measures, including:
Slide 4: Non-GAAP Financial Measures Continued
Non-GAAP Financial Measures Continued This information is intended to enhance an investor’s overall understanding of period over period financial results and provide an indication of Exelon’s baseline operating performance by excluding items that are considered by management to be not directly relat
Slide 5: Exelon: An Industry Leader
Exelon: An Industry Leader Nearly $26B $52M 210 TWh 31,600 In 2019, Exelon gave Megawatts of total Being invested in utilities Customer load approximately $52 power generation through 2023 served million to charitable capacity and community causes #1 Zero-carbon energy provider in America Nearly 251
Slide 6: Exelon is an Industry Leader
Exelon is an Industry Leader US Utility Customers (millions) 10.0 10.0 9.4 8.5 8.4 7.5 6.0 5.8 5.5 5.5 5.2 5.0 4.2 3.1 EXC PCG DUK SO SRE D FE XEL AEP NEE EIX ED PEG ETR Total Capital Expenditures 2020-2022 ($B)(1) 39.0 34.3 24.6 23.0 19.2 19.1 18.9 15.8 15.6 12.9 11.7 11.7 9.3 8.8 NEE DUK SO EXC(2)
Slide 7: Exelon is an Industry Leader (Cont’d)
Exelon is an Industry Leader (Cont’d) Total Generation Output (TWh)(1) 221.4 194.7 192.5 185.1 121.7 117.3 102.2 102.0 97.4 94.2 89.2 76.2 71.8 52.3 41.1 DUK EXC(3) SO NEE ETR DYN D AEP NRG CPN VST FE XEL PEG AEE Carbon Intensity (lb/MWh)(1) 1,520 1,557 1,563 1,619 1,376 1,425 1,238 945 1,034 641 79
Slide 8: The Exelon Value Proposition
The Exelon Value Proposition ▪ Regulated Utility Growth targeting utility EPS rising 6-8% annually from 2019- 2023 and rate base growth of 7.3%, representing an expanding majority of earnings ▪ ExGen’s free cash generation will support utility growth, ExGen debt reduction, and the external dividend
Slide 9: 2019 Accomplishments
2019 Accomplishments Maintain industry leading operational excellence • Best on record Customer Satisfaction at all utilities • ComEd had its best performance ever in both CAIDI and SAIFI; PHI continued to improve its reliability scores in 2019, setting best on record results in SAIFI • 2019 capacit
Slide 10: 2020 Business Priorities and Commitments
2020 Business Priorities and Commitments Maintain industry leading operational excellence Meet or exceed our financial commitments Effectively deploy ~$6.5B of utility capex Ensure timely recovery on investments to enable customer benefits Support Enactment of Clean Energy Policies Grow dividend at
Slide 11: COVID-19: Operational Excellence is Even More Critical
COVID-19: Operational Excellence is Even More Critical Maintaining our infrastructure is critical to ensuring hospitals, health care providers, grocery stores and medical and food production facilities can provide their services and goods Exelon Utilities: • Sustained first quartile reliability perf
Slide 12: COVID-19: Supporting our Customers and Communities
COVID-19: Supporting our Customers and Communities Suspending utility customer disconnections • Extending our customer support policies, which include suspending service disconnections, waiving new late fees, and reconnecting customers who were previously disconnected • Offering assistance programs
Slide 13: Actively Managing the Challenge of COVID-19
Actively Managing the Challenge of COVID-19 Seeking Recovery for $250M in 2020 from Cost Reducing ExGen CapEx by COVID-19 Costs from Savings $125M Regulators ExGen outlook is projected to be ($0.10) per share from Q1 weather and from COVID-19 net of cost savings; Total ExGen free cash flow $100M low
Slide 14: Exelon Utilities Overview
Exelon Utilities Overview $40.8B $16.8B 25.6K mi2 Combined Service 2019 Rate Base In Revenue Territory 16,900 10M Employees Customers $26B 11,150 Being invested in the Transmission line miles utilities through 2023 (circuit) 14
Slide 15: Utility Operating Highlights
Utility Operating Highlights At CEG Merger (2012) 2015 YTD 2020 Operations Metric BGE ComEd PECO PHI BGE ComEd PECO PHI OSHA Recordable Rate Electric 2.5 Beta SAIFI (Outage Operations Frequency)(1) 2.5 Beta CAIDI (Outage Duration) Customer Satisfaction N/A Customer Service Level % of Calls Operation
Slide 16: Utility Investments Lead to Customer Benefits
Utility Investments Lead to Customer Benefits Over the last four years Exelon Utilities have invested $22 billion in resilience, reliability and infrastructure improvements and plan to invest $26 billion over the next four years. These investments have provided benefits to all of our 10 million util
Slide 17: COVID-19 Impacts on Electric Utilities
COVID-19 Impacts on Electric Utilities Revenue Decoupling Mitigates Load Fluctuations Customer Breakdown of 2019 Non-Decoupled Volumes(2) ACE Non-Decoupled 37,316 C&I Percent of Electric Volumes (GWh) Decoupled Residential PECO DPL DE DPL MD 61% Pepco BGE ~70% of Exelon’s utilities revenues are subj
Slide 18: Utility Highlights
Utility Highlights ComEd PECO BGE Pepco Delmarva ACE (1) 2019 Electric Customer Mix (Percent of Revenues) Commercial & Industrial (C&I) 34% 25% 29% 44% 25% 28% Residential 50% 64% 56% 45% 56% 53% Public Authorities/Other 16% 11% 15% 12% 19% 19% (1) 2019 Electric Customer Mix (Percent of Volumes) Com
Slide 19: Exelon Utilities’ Distribution Rate Case Updates
Exelon Utilities’ Distribution Rate Case Updates Rate Case Schedule and Key Terms Requested Revenue Expected Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec ROE / Requirement Order Equity Ratio (1,2) Pepco DC $135.9M 9.70% / Nov/Dec IT RT EH IB RB FO Electric 3-Year MYP 50.68% 2020 DPL MD (1) 10.30%
Slide 20: Exelon Utilities Trailing Twelve Month Earned ROEs
Exelon Utilities Trailing Twelve Month Earned ROEs* Exelon Utilities’ Consolidated Trailing Twelve Month Earned ROEs* 10.2% 10.2% 10.1% 10.0% 9.6% 9.6% 9.7% 9.4% 9.3% 9.4% Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Exelon Utilities’ Consolidated TTM Earned ROE* h
Slide 21: Our Capital Plan Drives Leading Rate Base Growth
Our Capital Plan Drives Leading Rate Base Growth Capital Expenditures ($M) Rate Base ($B)(1) 6,475 6,450 6,550 6,475 54.2 1,125 +7.3% 1,300 1,200 1,150 50.7 47.3 9.5 44.2 8.9 1,225 1,200 40.8 8.3 1,125 1,200 7.7 10.9 6.9 10.0 9.2 8.4 1,800 1,675 7.8 1,675 1,700 13.4 12.7 11.9 11.5 10.8 2,350 2,325 2
Slide 22: Mechanisms Cover Bulk of Rate Base Growth
Mechanisms Cover Bulk of Rate Base Growth Rate Base Growth Breakout 2020–2023 ($B) 3.5 13.4 Base Rate Case 1.0 Tracker/Formula Rate 2.5 4.6 3.4 1.2 2.2 3.1 1.0 2.1 8.7 3.4 1.3 2.1 2020E 2021E 2022E 2023E Total Of the ~$13.4B of rate base growth Exelon Utilities forecasts over the next 4 years, ~65%
Slide 23: Utility Adjusted Operating Earnings
Exelon Utilities Project EPS* Growth of 6-8% to 2023 Exelon Utilities Operating Earnings* $2.60 $2.60 $2.50 $2.50 $2.40 $2.30 Utility Adjusted Operating Earnings* $2.25 $2.30 $2.20 $2.20 $2.10 $2.10 $2.05 $2.00 $1.91 $1.95 $1.90 $1.80 $1.80 $1.75 $1.70 $0.00 2019A 2020E 2021E 2022E 2023E Rate base g
Slide 24: Exelon Generation Overview
Exelon Generation Overview #1 Lowest carbon intensity #1 among large power Retail electricity 210 TWh generators provider in the Customer load served 13,100 country Employees 97.9% Gas and Hydro Dispatch Match in 2019 31,600 MW 95.7% 97.9% Capacity Nuclear capacity Gas and hydro dispatch factor in 2
Slide 25: Constellation Overview
Constellation Overview 2,200 1.9M Employees Approximate number of #1 Retail #1 Retail electricity customers served provider in the U.S. 1.6 TCF and among the top 10 Gas delivered largest gas marketers in the U.S. In 2019, procured Served 2/3 48 11 million of the Fortune 100 Operate in 48 states RECs
Slide 26: Best in Class at Generation and Constellation
Best in Class at Generation and Constellation Generation Operational Metrics Constellation Metrics • Continued best in class performance across our Nuclear fleet:(1) 79% retail power 36% power new − Capacity factor of 95.7%(2,3) was the highest customer renewal customer win rate ever for Exelon (own
Slide 27: COVID-19 Impacts on Constellation
COVID-19 Impacts on Constellation Customer Breakdown of 2019 Load Served(1) Load Impacts and Sensitivities 210 TWh • Preliminary April data(2) suggests 10-15% C&I load reductions in PJM, with slightly lower reductions in Residential 70% Wholesale 30% ERCOT. Residential load up ~5-7% across most C&I
Slide 28: Exelon Generation: Gross Margin Update
Exelon Generation: Gross Margin* Update Change from March 31, 2020 December 31, 2019 Gross Margin Category ($M)(1) 2020 2021 2020 2021 Open Gross Margin*(2) $2,850 $3,350 $(750) $(100) (including South, West, New England, Canada hedged gross margin) Capacity and ZEC Revenues(2) $1,900 $1,850 - - (2,
Slide 29: Capacity Market: PJM
Capacity Market: PJM ComEd Cleared Volumes (MW) EMAAC Cleared Volumes (MW) 9,950 9,975 8,650 8,075 7,450 7,575 6,975 6,675 5,800 6,025 5,175 3,975 16/17 17/18 18/19 19/20 20/21 21/22 16/17 17/18 18/19 19/20 20/21 21/22 Auction Year Auction Year SWMAAC Cleared Volumes (MW) MAAC, BGE, and Rest of RTO
Slide 30: Driving Costs and Capital Out of the Generation Business
Driving Costs and Capital Out of the Generation Business Adjusted O&M* ($M) Capital Expenditures ($M)(1) 4,200 4,150 1,800 125 1,675 75 825 825 850 775 2020E 2021E 2020E 2021E Committed Growth Nuclear Fuel Base Continued focus on all O&M and capital costs at ExGen Note: All amounts rounded to the ne
Slide 31: Historical Nuclear Capital Investment
Historical Nuclear Capital Investment Nuclear Non-Fuel Capital Expenditures(1) ($M) Nuclear Baseline CAGR Cancelled Growth Fukushima Growth(4) Nuclear Baseline (excluding Fuel) (2,3) 975 -2.3% 50 925 825 850 150 775 250 25 175 650 50 25 675 175 175 25 100 25 600 575 50 75 525 650 700 675 575 575 600
Slide 32: Financial Overview
Financial Overview 32 = = Exelon.
Slide 33: Revising 2020 Adjusted Operating Earnings Guidance
Revising 2020 Adjusted Operating Earnings* Guidance $3.00 - $3.30(1) Guidance Assumptions $2.80 - $3.10(2) Stay-at-home orders and widespread business shut- downs from mid-March through mid-June. Load assumed to gradually recover over the subsequent months. ExGen $1.20 - $1.30 $1.10 - $1.20 Load • I
Slide 34: First Quarter Results
First Quarter Results Q1 2020 EPS Results(1) Q1 Highlights $0.87 • Offset earnings pressure from extremely warm winter $0.32 • All utilities had first quartile outage $0.60 frequency and duration performance ExGen $0.05 BGE $0.19 $0.19 • Top decile customer satisfaction for BGE, ComEd and PECO PECO
Slide 35: Strong Liquidity Position and Investment Grade Credit Ratings
Strong Liquidity Position and Investment Grade Credit Ratings Significant Capacity Under Exelon’s Primary Revolving Credit Facility (RCF) ($B) As of 4/30/20 Corporate ExGen PECO BGE ComEd PHI Total Primary Revolving Credit Facility(1) 0.6 5.3 0.6 0.6 1.0 0.9 9.0 Commercial Paper - - - (0.1) - (0.2)
Slide 36: Maintaining a Strong Investment Grade Credit Ratings and Liquidity Position
Maintaining a Strong Investment Grade Credit Ratings and Liquidity Position is a Top Financial Priority Credit Ratings by Operating Company Current Ratings(1) ExCorp ExGen ComEd PECO BGE ACE DPL Pepco Moody’s Baa2 Baa2 A1 Aa3 A3 A2 A2 A2 S&P BBB BBB+ A A A A A A Fitch BBB+ BBB A A+ A A- A A- Recent
Slide 37: Met 5% Annual Dividend Growth Commitment through 2020
Met 5% Annual Dividend Growth Commitment through 2020 Dividends per Share(1) Implied Exelon Utilities less HoldCo(2) Dividend Implied ExGen(2) Dividend 5% $1.53 $1.45 $1.38 $1.31 2017A 2018A 2019E 2020E Assuming a steady 70% payout ratio on Utility less HoldCo earnings, ExGen’s contribution to the E
Slide 38: Exelon Recognition and Partnerships
Exelon Recognition and Partnerships SUSTAINABILITY Sustainability DIVERSITY & INCLUSION Diversity and Inclusion Dow Jones Sustainability North America Index HeForShe Exelon named to Dow Jones Sustainability North America Index for the Exelon is a Thematic Champion in the United Nations HeForShe 14th
Slide 39: Exelon: A history of clean, affordable, reliable energy
Exelon: A history of clean, affordable, reliable energy 39
Slide 40: Exelon is Ideally Situated to Help Meet Climate Goals
Exelon is Ideally Situated to Help Meet Climate Goals Deliberately Built Clean Fleet Carbon Reduction Goals Exelon Generation is the largest zero-carbon generator Despite having the lowest carbon intensive – producing 1 out of every 9 zero-carbon MWhs in the generation, we have set a goal of an US –
Slide 41: Exelon Generation: Leader in Zero-Carbon Electricity Program
Exelon Generation: Leader in Zero-Carbon Electricity Program Exelon produces 12% or 1 out of every 9 MWhs of Clean Electricity in the United States Largest U.S. generator of zero-carbon electricity Lowest carbon intensity among major (almost 2 times more than next largest producer) investor-owned ge
Slide 42: Exelon is way ahead of the goals
Exelon is way ahead of the goals Transition Pathway Initiative(1) 0.700 0.600 0.500 0.400 t CO2e/MWh 0.300 0.200 0.100 0.000 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Below 2 Degrees 2 Degrees Paris Pledges Exelon (1) Source: Transition Pathway Initiat
Slide 43: Appendix
Appendix 43 = = Exelon.
Slide 44: 2020 Projected Sources and Uses of Cash
2020 Projected Sources and Uses of Cash Total Cash (1) All amounts rounded to the nearest ($M)(1) BGE ComEd PECO PHI ExGen Corp(9) Exelon Utilities Balance $25M. Figures may not sum due to rounding. Beginning Cash Balance* (2) 1,500 (2) Gross of posted counterparty Adjusted Cash Flow from Operations
Slide 45: Exelon Debt Maturity Profile
Exelon Debt Maturity Profile(1,2) As of 4/30/2020 LT Debt Balances (as of 4/30/20) (2) ($M) BGE 3.3B ComEd 9.7B PECO 3.6B PHI 6.7B 500 ExGen recourse(3) 5.0B 910 ExGen non-recourse 2.0B HoldCo 8.3B Consolidated 38.5B 1,512 1,023 500 1,225 1,200 850 500 600 2,150 650 1,189 175 1,550 1,430 1,400 1,250
Slide 46: Exelon Generation Disclosures
Exelon Generation Disclosures Data as of March 31, 2020 These disclosures were presented on May 8, 2020, and are not being updated at this time 46
Slide 47: Portfolio Management Strategy
Portfolio Management Strategy Align Hedging & Financials Portfolio Management Over Time Exercising Market Views Establishing Minimum Hedge Targets % Hedged High End of Profit % Hedged Low End of Profit Purely ratable Capital Credit Rating Structure Actual hedge % Capital & Market views on timing, pr
Slide 48: Components of Gross Margin Categories
Components of Gross Margin* Categories Gross margin* from Gross margin* linked to power production and sales other business activities Open Gross Capacity and ZEC MtM of “Power” New “Non Power” “Non Power” Margin* Revenues Hedges(2) Business Executed New Business •Generation Gross •Expected capacity
Slide 49: ExGen Disclosures
ExGen Disclosures March 31, 2020 Gross Margin Category ($M)(1) 2020 2021 Open Gross Margin (including South, West, New England & Canada hedged GM)(2) $2,850 $3,350 Capacity and ZEC Revenues(2) $1,900 $1,850 (2,3) Mark-to-Market of Hedges $1,500 $450 Power New Business / To Go $300 $650 Non-Power Mar
Slide 50: ExGen Disclosures
ExGen Disclosures March 31, 2020 Generation and Hedges 2020 2021 (1) Expected Generation (GWh) 185,100 181,300 Midwest 97,100 95,500 Mid-Atlantic(2) 47,400 48,000 ERCOT 25,100 21,200 New York(2) 15,500 16,600 % of Expected Generation Hedged(3) 89%-92% 70%-73% Midwest 91%-94% 72%-75% Mid-Atlantic(2)
Slide 51: ExGen Hedged Gross Margin Sensitivities
ExGen Hedged Gross Margin* Sensitivities March 31, 2020 Gross Margin* Sensitivities (with existing hedges)(1,2) 2020 2021 Henry Hub Natural Gas ($/MMBtu) + $1/MMBtu $55 $350 - $1/MMBtu $(215) $(355) NiHub ATC Energy Price + $5/MWh $30 $110 - $5/MWh $(30) $(110) PJM-W ATC Energy Price + $5/MWh $5 $50
Slide 52: Additional ExGen Modeling Data
Additional ExGen Modeling Data Total Gross Margin Reconciliation (in $M)(1) 2020 2021 Revenue Net of Purchased Power and Fuel Expense*(2,3) $7,375 $7,225 Other Revenues(4) $(150) $(150) Direct cost of sales incurred to generate revenues for certain $(225) $(275) Constellation and Power businesses To
Slide 53: Appendix Reconciliation of Non-GAAP Measures
Appendix Reconciliation of Non-GAAP Measures 53
Slide 54: Q1 GAAP EPS Reconciliation
Q1 GAAP EPS Reconciliation Three Months Ended March 31, 2020 ComEd PECO BGE PHI ExGen Other Exelon 2020 GAAP Earnings (Loss) Per Share $0.17 $0.14 $0.19 $0.11 $0.05 ($0.06) $0.60 Mark-to-market impact of economic hedging activities - - - - (0.10) - (0.10) Unrealized losses related to NDT funds - - -
Slide 55: Projected GAAP to Operating Adjustments
Projected GAAP to Operating Adjustments • Exelon’s projected 2020 adjusted (non-GAAP) operating earnings excludes the earnings effects of the following: − Mark-to-market adjustments from economic hedging activities; − Unrealized gains and losses from NDT funds to the extent not offset by contractual
Slide 56: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations(1) (2) Exelon FFO/Debt = FFO (a) Adjusted Debt (b) Exelon FFO Calculation(2) GAAP Operating Income + Depreciation & Amortization = EBITDA - Interest Expense +/- Cash Taxes + Nuclear Fuel Amortization +/- Mark-to-Market Adjustments (Economic Hedges) +/- Other S&P Adju
Slide 57: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations(1) ExGen Debt/EBITDA = Net Debt (a) ExGen Debt/EBITDA = Net Debt (c) Operating EBITDA (b) Excluding Non-Recourse Operating EBITDA (d) ExGen Net Debt Calculation ExGen Net Debt Calculation Excluding Non-Recourse Long-Term Debt (including current maturities) Long-Term
Slide 58: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations Consolidated EU Operating TTM ROE Reconciliation ($M) Q1 2020 Q4 2019 Q3 2019 Q2 2019 Q1 2019 Net Income (GAAP) $2,060 $2,065 $2,037 $2,011 $1,967 Operating Exclusions $31 $30 $33 $31 $33 Adjusted Operating Earnings $2,091 $2,095 $2,070 $2,042 $1,999 Average Equity $
Slide 59: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations 2020 Adjusted Cash from Ops Calculation ($M)(1) BGE ComEd PECO PHI ExGen Other Exelon Net cash flows provided by operating activities (GAAP) $625 $1,325 $750 $975 $4,600 ($225) $8,050 Other cash from investing activities - - - - ($275) - ($275) Counterparty collatera
Slide 60: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations ExGen Adjusted O&M Reconciliation ($M)(1) 2020 2021 GAAP O&M $4,700 $4,750 Decommissioning(2) $75 $75 Direct cost of sales incurred to generate revenues for certain Constellation and Power businesses(3) ($225) ($275) O&M for managed plants that are partially owned ($