Slide 1: Earnings Conference Call Fourth Quarter 2023
February 21, 2024 Earnings Conference Call Fourth Quarter 2023
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: Key Messages
Key Messages • Earned $2.38 per share in 2023, in the upper half of guidance(1) – ~6% growth off 2022 guidance midpoint(2) Financial and • Issued $142M, or approximately one-third, of original $425M equity commitment to support investment Operational • Projecting 2024 dividend of $1.52 per share(3)
Slide 5: 2023 Commitments Met
2023 Commitments Met Priorities & Commitments Commitments Met Maintain industry-leading operational • Best-on-record SAIFI and SAIDI performance at ComEd and PHI excellence • ComEd received ReliabilityOne award for Most Reliable Utility in the United States Deploy $7.2B of capex for the benefit of •
Slide 6: Operating Highlights
Operating Highlights 2023 • Reliability remains consistently strong with all utilities Operations Metric BGE ComEd PECO PHI achieving top quartile performance ―ComEd and PHI achieved top decile SAIFI performance, Safety OSHA Recordable Rate(1) and BGE and PECO attained first quartile; ComEd and PHI
Slide 7: 2023 Financial Results
2023 Financial Results Fourth Quarter 2023 EPS Full Year 2023 EPS Results Results $2.34 $2.38 Adjusted operating earnings* drivers $0.49 $0.49 versus $2.36 per share midpoint of full $0.62 $0.60 year guidance(1): $0.56 $0.57 BGE MYP reconciliation $0.20 $0.20 ComEd ROE, primarily due to rise in $0.6
Slide 8: 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 9: ComEd MYRP Process Update
ComEd MYRP Process Update 1 Application for Filed Appeal with Motion for Clarification Rehearing 2 Revised File 2023 Expected Expected Rehearing Filed 3rd District Court Granted in Part Filed Grid Plan Filing DSPR Rehearing Order DSPR Order Dec 22, 2023 Jan 10, 2024 Jan 31, 2024 Feb 16, 2024 Mar 13,
Slide 10: 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 11: 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 12: 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 Grid Plan resulting in dividend growing in
Slide 13: 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 14: 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 15: 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 16: 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: ~$34.5B of T&D capital from 2024-2027 to meet customer needs, resulting in expected rate bas
Slide 17: Additional Disclosures
Additional Disclosures 17
Slide 18: Utility Capex and Rate Base vs. Previous Disclosures
Utility Capex and Rate Base vs. Previous Disclosures Q4 2022 Capital Expenditures ($M) Q4 2023 Capital Expenditures ($M) 8,200 8,350 9,225 9,225 7,550 8,650 7,150 7,175 975 1,000 975 975 975 7,325 7,425 975 900 925 1,825 1,800 1,600 925 1,000 2,450 2,875 2,725 1,450 1,450 1,225 1,625 4,775 4,825 4,9
Slide 19: ComEd Capital Expenditure Forecast
ComEd Capital Expenditure Forecast Rate Base Q4 2022 Capital Expenditures ($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 $20.3B 2,350 2,450 2,250 2,250 2,075 2,025 1,975 2,0
Slide 20: PECO Capital Expenditure Forecast
PECO Capital Expenditure Forecast Q4 2022 Capital Expenditures ($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 $11.1B 1,300 1,350 1,275 1,
Slide 21: BGE Capital Expenditure Forecast
BGE Capital Expenditure Forecast Rate Base Q4 2022 Capital Expenditures ($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% $9.7B 625 425 450 225 325 650 625 625 6
Slide 22: PHI Consolidated Capital Expenditure Forecast
PHI Consolidated Capital Expenditure Forecast Q4 2022 Capital Expenditures ($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% $14.3B 1,375
Slide 23: ACE Capital Expenditure Forecast
ACE Capital Expenditure Forecast Q4 2022 Capital Expenditures ($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% $3.6B 61% 300 300 300 275 275 275 275 275 250 2023E 2024E 2025E 2026E 2023 202
Slide 24: DPL Capital Expenditure Forecast
DPL Capital Expenditure Forecast Q4 2022 Capital Expenditures ($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 $3.9B 54% 31% 325 350 325 325 325 300 300 300 2
Slide 25: Pepco Capital Expenditure Forecast
Pepco Capital Expenditure Forecast Q4 2022 Capital Expenditures ($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 $6.9B 750 775 750 775 775 750 725 725 650 78% 2023E 2024E 2025E 2026E 202
Slide 26: 2024 Financing Plan
2024 Financing Plan(1) OpCo Instrument Issuance ($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 27: 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 28: 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 29: 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 30: 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 31: 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 32: 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 33: Rate Case Details
Rate Case Details 33
Slide 34: Exelon Distribution Rate Case Updates
Exelon Distribution Rate Case Updates Revenue Approved/Requested Expected/Received Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Requirement ROE / Equity Ratio Order Date DPL DE (1,2) 10.50% / EH SA FO $39.3M Q2 2024 Electric 50.50% (1,4) $501.0M ComEd(3) FO 8.905% / 50.0% Dec 2023 4-Year MYP
Slide 35: 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 36: ComEd Distribution Rate Case Filing
ComEd Distribution Rate Case Filing Multi-Year Plan Case Filing Details Notes Formal Case No. 23-0055 • January 17, 2023, ComEd filed with the Illinois Commerce Commission (ICC) (i) a Multi-Year Integrated Grid Plan, and (ii) a four-year multi-year plan (MYP) request seeking an increase in Test Peri
Slide 37: 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 38: ACE Distribution Rate Case Filing
ACE Distribution Rate Case Filing Rate Case Filing Details Notes Docket No. ER23020091 • February 15, 2023, ACE filed a distribution base rate case with the New Jersey Board of Public Utilities (NJBPU) to increase distribution base rates Test Period July 1 – June 30 • This rate increase will support
Slide 39: BGE Distribution Rate Case Filing
BGE Distribution Rate Case Filing Multi-Year Plan Case Filing Details Notes Formal Case No. 9692 • February 17, 2023, BGE filed a three-year multi-year plan (MYP) request with the Maryland Public Service Commission (MDPSC) Test Period January 1 – December 31 seeking an increase in electric and gas d
Slide 40: 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 41: 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 42: 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 43: 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 44: 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 45: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures 45
Slide 46: 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. 46
Slide 47: 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 48: 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 49: 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) $2.34 Change in Environmental Liabilities - - - 0.03 - 0.03 SEC Matter Loss Contingency - - - - 0.05 0.0
Slide 50: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations Exelon Operating TTM ROE Reconciliation ($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 51: Thank you
Thank you Please direct all questions to the Exelon Investor Relations team: InvestorRelations@ExelonCorp.com 312-394-2345
Slide 52: C\ exelon’
C\ exelon’