The paragraph is from an earnings call presentation by Exelon Corporation, with financial details available on their website and cautionary notes on risks in their SEC filings. The presentation includes non-GAAP financial measures with reconciliations available. Calvin Butler, President and CEO of Exelon, remarks on the company's successful year and its long history since the merger of Commonwealth Edison and Philadelphia Electric Company in 2000. He highlights the company's commitment to excellence and service, inspired by historical figures like Samuel Insull. Exelon's utilities achieved top quartile reliability, with three ranking in the top five and all four in the top eight among peers.

The paragraph highlights Exelon Corporation's strong financial performance in 2024, achieving earnings guidance despite significant challenges such as company separation and economic changes. It underscores the company's reliability and plans for further investment in energy transformation. This includes potential projects like the MISO Tranche 2.1 and investments in AI-powered data centers, projecting a $38 billion investment from 2025 to 2028. The focus is on maintaining growth while supporting customer needs and economic development.

The paragraph discusses a $3.5 billion capital growth, with over 80% attributed to transmission, highlighting its role in boosting local economies by creating over 70,000 jobs and sourcing $4 billion in supplier spending locally. The high-density load pipeline has grown significantly, with ComEd securing 15 major projects worth $17 billion and creating 1,000 jobs in Northern Illinois. This development leads to a 1%-2% load growth over four years, helping distribute grid costs over more usage. The funding strategy involves 40% equity and aims to improve credit metrics, as evidenced by Exelon Corporation's recent credit rating upgrade. With expected annual earnings growth of 5%-7% through 2028 and 2025 earnings guidance of $2.64-$2.74 per share, the dividend is raised to $1.60 per share, maintaining a 60% payout ratio. The paragraph concludes by stating that 2024 was a successful year.

The paragraph discusses the organization's successful execution of its plans, highlighting a $7.5 billion capital investment and a 9.1% return on equity despite challenges. The company focused on cost management, achieving $100 million in sustainable savings. Maintaining affordability and customer engagement are priorities through 2025. The organization, with its 20,000 employees, achieved significant service reliability despite severe weather challenges, with ComEd receiving the Reliability One Award for performance in the Midwest.

The paragraph discusses the strong performance of BGE, PECO, and Pepco Holdings in 2024, highlighting their top decile achievements for the fourth consecutive year and their focus on safety, with top quartile performance in serious injury rates. Despite challenges like a colder than normal winter and higher energy costs, customer satisfaction scores have been maintained, with measures to improve affordability being implemented, such as waiving late payment fees and suspending non-payment disconnects. Efforts are also being made to enhance customer support and encourage energy conservation. The company is committed to maintaining a reliable grid and looks forward to collaborating with stakeholders on customer solutions. The paragraph ends with a handover to Jean for a recap of financial performance and future plans.

The paragraph discusses Exelon Corporation's strong financial results for the fourth quarter and the full year, highlighting earnings of $2.45 per share on a GAAP basis and $2.50 per share on a non-GAAP basis, which were at the top of their guidance range. It mentions the positive impact of ComEd's rehearing order and cost management strategies that mitigated mild winter weather and higher storm activity. The future outlook for 2025 includes projected operating earnings of $2.64 to $2.74 per share, with expected earnings growth aligned with previous disclosures. The first quarter is expected to contribute significantly to full-year earnings due to new rates, cost shaping, and ComEd revenue timing, assuming normal weather conditions. The paragraph also notes the successful completion of a busy regulatory calendar in 2024.

The paragraph details recent regulatory decisions impacting the utility companies Pepco, PECO, and ComEd. The DC Public Service Commission approved Pepco's multiyear climate plan, allowing for a $123.4 million revenue increase and a 9.5% return on equity through 2026. The commission also initiated a review process for multiyear plans. PECO received a $354 million electric and a $78 million gas revenue increase from the Pennsylvania Public Utility Commission, with a one-time $64 million credit in 2025, to support service reliability and clean energy. ComEd's grid and rate plans were approved by the Illinois Commerce Commission, allowing for a $1 billion revenue increase from 2024 to 2027 to support investment in infrastructure and align with energy goals.

The paragraph discusses various investment and rate case activities of Pepco Holdings and its subsidiaries. Nearly 90% of their rate base has established mechanisms extending through 2026 or 2027, allowing a focus on strategic planning for electrification and reliable generation. Currently, there are two open base rate cases: Delmarva Power seeks to recover costs for gas distribution and infrastructure upgrades with interim rates expected in April, while Atlantic City Electric seeks a $108.9 million increase for grid modernization work, with interim rates expected in August. In Maryland, efforts are ongoing to finalize reconciliations from the first BGE and Pepco Maryland multiyear plans, while preparing for future rate case filings. The company supports multiyear plans as an effective rate structure and is refining them based on stakeholder feedback. It plans to spend approximately $9.1 billion in 2025 and a total of $38 billion over the next four years on utility capital expenditures and rate-based outlook through 2028.

The paragraph discusses a $3.5 billion increase in transmission capital investment over a four-year period, driven by the need to support energy transformation, high-density load growth, and grid reliability. Over $1 billion of this is allocated to ComEd, due to commitments from data centers and other load-intensive customers. The investments are focused on expanding capacity, including two major projects: one related to the Brandon Shores coal plant retirement and another in the Tri-County area to address load growth. These projects will be completed between 2028 and 2030. Despite increased spending on long-term transmission projects, the annual rate base growth remains consistent at 7.4%, with nearly $20 billion projected from 2024 to 2028. The investments aim to support economic and energy goals by enhancing grid safety, security, and resilience.

Exelon Corporation is strategically positioned to capitalize on significant transmission investment opportunities, driven by the increasing demand for high-density load and reliability. With an existing network of 11,000 miles, Exelon plans to invest $12.6 billion in transmission and sees an additional $10 billion to $15 billion opportunity within the next decade. This includes investments to support new high-density loads and projects in collaboration with regional operators like PJM and MISO. Exelon also aims to participate in competitive processes for MISO's $6 billion work. These investments are essential to meet policy goals, support economic growth in Illinois, and modernize infrastructure to enhance reliability, resilience, and security.

In 2019, PJM identified aging transmission infrastructure, highlighting the need for investment beyond a four-year plan to maintain service reliability, resiliency, and affordability. Exelon is positioned to effectively manage this with planned capital investments of $38 billion over four years and a focus on operational excellence, saving customers by limiting expense growth. In 2024, Exelon achieved $100 million in sustainable savings and continues to streamline operations, benefiting from its unified corporate structure. This approach has enhanced reliability by 35% since 2016 through cross-company collaboration and best practice identification.

The article highlights the company's strong performance with industry-leading reliability metrics and bills that are 19% to 21% below US averages. It projects significant capital spending of $38 billion, which is expected to drive a 7.4% rate base growth and generate compounded annual earnings growth of 5% to 7% from 2024 to 2028, with a midpoint earnings guidance of $2.45 per share in 2024. The company plans to maintain a roughly 60% dividend payout, expecting to grow dividends at a lower rate to reinvest in customer efficiency. For 2025, the dividend is expected to be $1.60 per share, marking a 5.2% annual increase. Additionally, the company emphasizes strong balance sheet management, reflecting improved credit metrics and a recent upgrade to a BBB+ rating from S&P, which entailed a revised 13% downgrade threshold.

The paragraph outlines a financial strategy for a company's investment and funding over the next few years, aiming for a 14% metric by the end of their forecast. It mentions the inclusion of repairs in the corporate alternative minimum tax regulations and anticipates a metric increase if not allowed. The $38 billion capital plan involves funding from $20 billion in internally generated cash flow, $12 billion in utility debt, $3 billion in holding company debt, and a modest equity component. Equity needs are projected at $2.8 billion over four years. The plan also includes using securities with equity credit to replace senior debt, enhancing financial flexibility while maintaining a 5%-7% annualized earnings growth through 2028. The overall strategy is confident in delivering long-term value to customers and shareholders.

The paragraph discusses Exelon Corporation's commitment to focusing on an equitable energy transition and addressing the challenges of significant load growth. The company aims to improve energy supply by working with stakeholders and policymakers at various levels. Exelon is actively engaging in solutions to manage higher energy prices, exploring complementary approaches beyond traditional markets like PJM. The text highlights the importance of involving state policies to enhance supply and demand-side solutions, as reflected in their engagement with numerous legislative initiatives across their jurisdictions.

The paragraph discusses a multi-faceted approach to addressing anticipated load growth in the energy sector. It emphasizes collaboration to ensure energy security and customer affordability, leveraging cost control, efficiency programs, and distributed resources. The company highlights its commitment to connecting customers with low-income energy assistance, aiming to enhance product value through innovation and employee engagement. The financial plan involves deploying $9.1 billion to support customers, expecting a 9%-10% operating return on equity, and meeting an earnings guidance of $2.64 to $2.74 per share. The company also plans to maintain a strong balance sheet to support grid expectations.

The paragraph discusses the alignment of Exelon Corporation's priorities with its core values, highlighting the company's industry leadership in customer service, reliability, and employee recognition. Calvin Butler emphasizes Exelon's commitment to fulfilling financial promises, illustrating strong alignment with stakeholders through investments that yield attractive, risk-adjusted returns of 9% to 11%, including annual growth and dividend yields. As the session opens for questions, Durgesh Chopra from Evercore inquires about Exelon's expectations for a reconciliation decision in Maryland and its potential impact on future rate cases and the company's financial plan. Calvin Butler indicates he will address the question, with potential input from colleagues Mike or Jean.

The paragraph discusses the progress of a collaborative process regarding cost reconciliation and structural issues. The speakers express confidence in the prudence of incurred costs and predict an outcome in the first half of the year. They emphasize that their structure provides predictability and cost savings for customers while ensuring financial returns for shareholders. They highlight the effectiveness of multiyear plans, which are aligned with state policy and help maintain competitive distribution rates. These plans are not unique to Maryland.

The paragraph discusses the use of sharing mechanisms by two-thirds of jurisdictions and the benefits of having a forward-looking plan for companies like Exelon Corporation, particularly in managing costs and ensuring affordability amid rising inflation. It also highlights the expectation of completing lessons learned by mid-year for better decision-making in future rates. Durgesh Chopra and Calvin Butler discuss focusing on a "two zero five" issue with FERC, with Colette Honorable noting ongoing discussions with stakeholders like PJM and the anticipation of a decision on this matter.

The paragraph discusses the leadership and efforts in addressing resource adequacy and energy security issues, acknowledging support from states, governors, and PJM's proposals and reforms. It highlights two approvals from FERC: one related to shovel-ready projects (docket ER25712) and another concerning surplus interconnection service (docket ER25778). This progress is seen as beneficial, and the organization plans to continue engaging with stakeholders to meet customer needs, focusing on energy security, affordability, and investor interests. The paragraph concludes with a Q&A session involving Nicholas Campanella from Barclays seeking clarification on growth projections for 2027 based on prior year midpoints.

In the paragraph, Jean discusses the growth plan from the 2024 midpoint of $2.45 through 2028, aiming for a 5% to 7% increase annually. Nicholas Campanella asks about legislative priorities in Maryland and expectations in Pennsylvania regarding energy solutions. Calvin Butler responds, mentioning the company's focus on over 45 legislative bills to ensure energy affordability, security, and adequate generation across jurisdictions. The legislation includes changes to regulatory and planning processes, such as distributed distribution planning and expedited review of clean energy generation. Butler encourages Kareem Kusami to elaborate on Maryland's legislative activities, which include tracking over 20 bills.

The paragraph discusses efforts in Maryland and Pennsylvania to address energy security and resource adequacy issues. Maryland is focused on reducing its reliance on imported power by incentivizing in-state generation across various fuel types, with the involvement of companies like BGE and Pepco Holdings. Similarly, Pennsylvania is actively engaged in addressing resource adequacy, with technical conferences led by the PUC and initiatives by Governor Shapiro to work with PJM and other stakeholders on potential alternatives to the capacity markets to ensure sufficient generation.

In this excerpt from a conversation, Nicholas Campanella and Calvin Butler discuss legislative matters concerning longer-term contracts and utility builds that may require legislative action. Julien Dumoulin-Smith from Jefferies then asks about the potential for settlements in ongoing initiatives related to teaching policy and colocation, hoping to avoid lengthy processes. He also inquires about industry trends involving data centers, particularly concerning deposits and their impact on rate base growth. Calvin Butler acknowledges Julien's questions, highlighting the focus on settlements at the FERC level and the industry developments around data centers.

The paragraph discusses two main points: the first is about ensuring customer interests in the context of data center growth and shared grid resources, emphasizing a resolution-focused approach. Jean elaborates on the second point, highlighting the role of "two o fives" in seeking clarity and certainty on network load amid differences, particularly concerning large loads. He stresses the importance of partnering with stakeholders to determine appropriate tariffs. Additionally, there is mention of significant deposits and load growth, exemplified by ComEd's consumer class showing a 4% annual growth under normalized weather conditions, indicating real progress.

The paragraph discusses the impact of increasing energy load on service territories, highlighting the need for capital investment and the role of customer deposits in protecting existing customers. It mentions a decrease in the 2024 rate base by around $400 million, primarily due to these deposits. This decrease is seen as positive, indicating necessary investments to accommodate new load growth of 1-2%, driven by economic development. Calvin Butler adds that their projections only include load growth when developers take concrete actions like purchasing real estate, developing plans, or making deposits. Once these steps are taken, the load growth is integrated into their planning, resulting in the projected figures.

The paragraph discusses an optimistic forecast for future growth and investment, particularly in data centers. It mentions that despite the absence of major press releases, there are positive indicators such as deposits and data center project announcements. A slide in the appendix highlights recent data center developments, with over 200 online centers and a 24% compound annual growth rate in megawatts over recent years. This data suggests significant growth and assures that the future capital expenditure opportunities will occur alongside these developments, without causing a decline in performance.

The paragraph discusses a conversation regarding the optimistic pipeline of projects that are considered highly probable due to financial commitments. Emphasis is placed on maintaining affordability while catering to a large customer base. Julien Dumoulin-Smith and another participant discuss the Illinois grid plan related to accommodating large loads, specifically in terms of capital allocation. Jean responds by explaining that although over $400 million in capital was initially not approved, there is a potential for full reconciliation annually, assuming ComEd's forecasts are accurate. The focus is on the distribution side of the grid plan.

The paragraph discusses ComEd's increased capital expenditure plans for transmission projects, driven by high-density load demands and megawatts coming online in their service area. Jean explains that capital investment needs vary depending on the specific customer requirements and project locations. The focus is on efficiently meeting these needs by identifying optimal locations with existing capacity, although some projects require significant investment. The emphasis on transmission projects is highlighted, with 80% of a $3.5 billion four-year plan devoted to this. Additionally, Steve Fleishman inquires about expected clarity from FERC's new chair regarding policy on colocation, to which Calvin Butler responds that they are seeking clarity and are in discussions to achieve this.

The paragraph features a conversation among Steve, Colette Honorable, Calvin Butler, and Shar Pourreza during a discussion or meeting. Colette Honorable expresses interest in gaining clarity on certain decisions and emphasizes the desire to meet customer demands promptly. A decision regarding a pending matter referred to as "the two zero five" is expected by February 24th. Shar Pourreza, from Guggenheim Partners, inquires about the status of CMC (likely referring to Clean Energy Mechanisms) and the progress in discussions with the Illinois Power Agency (IPA) and other stakeholders. Jean responds by noting that Illinois is similar to other states concerning energy security and mentions that CMCs, though unique and in place until 2027, aren't perfect hedges.

The paragraph discusses the energy and capacity developments in Illinois, highlighting the state's unique role due to the Illinois Power Agency (IPA). It mentions that while Illinois has its approach to energy procurement, the focus remains on providing reliable, stable, and predictable energy prices. The text also discusses the need for solutions within the PJM Interconnection's capacity market and mentions that the Federal Energy Regulatory Commission (FERC) has approved certain solutions. Illinois is viewed as being proactive, like other states, in exploring various options for energy capacity and procurement. Towards the end, the text briefly shifts to an inquiry about the impact on bills for Atlantic City Electric customers if the artificial island initiative moves forward, asking whether any analysis has been conducted.

The paragraph discusses the process and considerations involved in connecting a data center (DC) to the Atlantic City Electric system. Jean emphasizes the importance of proper cost allocation, considering network load for such connections, and the support for economic development. Shar Pourreza inquires about the speed and capacity for connecting a DC, and Calvin responds that the ability to connect quickly depends on the location and load requirements. They aim to accelerate studies and find creative solutions to meet customer timelines, generally succeeding in meeting their needs. The conversation concludes with congratulations on good results.

In the closing remarks of a call, Calvin Butler from Exelon Corporation expresses gratitude to the company's employees for their hard work, which led to a successful 2024. He highlights the promising opportunities in the upcoming year to lead in energy transformation and provide long-term value for stakeholders. The call concludes with an invitation for future engagement and the operator thanking participants.

This summary was generated with AI and may contain some inaccuracies.