The paragraph introduces Exelon's First Quarter Earnings Call for 2025, moderated by Lateef, the event specialist. Andrew Plenge, Vice President of Investor Relations, provides an overview of the call, mentioning that Calvin Butler, Exelon's President and CEO, and Jeanne Jones, the Chief Financial Officer, will lead the presentation. The presentation will include a Q&A session, and the earnings release materials contain forward-looking statements, along with references to non-GAAP measures. Calvin Butler then begins his remarks, noting that 2025 has started well for the company.

The company reported strong operating earnings growth in Q1 2024, surpassing expectations and aligning with 2025 earnings guidance. Despite challenges from high winds, reliability and safety performance remained strong, with ComEd and Pepco Holdings achieving top decile outage metrics. BGE and PECO were in the top quartile. Rate case activity was limited, with two ongoing cases proceeding as planned. The company is engaging in legislative and regulatory reforms to ensure energy reliability and affordability, crucial for economic and policy goals. Maryland recently passed significant energy bills promoting energy security, battery storage development, and a multi-year planning approach for improved transparency and stakeholder involvement.

The paragraph discusses ongoing efforts in energy policy, focusing on regional and federal initiatives. It highlights the progress made by PJM in addressing issues in its capacity market, the approval of solutions by FERC, and ongoing reliability initiatives. It also notes FERC's investigation into tariff fairness and praises FERC and PJM's leadership in resolving complex issues. The paragraph emphasizes the importance of continued progress in these policy areas to achieve energy security and economic development, expecting further updates as the year progresses. Additional details are available in the appendix.

The paragraph highlights the company's continued progress and opportunities in expanding its energy infrastructure, including a 17 gigawatt pipeline and studies on an additional 16 gigawatts of high-density load. It stresses the importance of collaboration among stakeholders to balance reliability, affordability, and cleaner energy goals. The company anticipates $10 billion to $15 billion in transmission opportunities and emphasizes the need for investment in high voltage networks. Leadership changes are also noted, with Carim Khouzami and Tamla Olivier taking key roles. Finally, the paragraph reiterates expectations for the company's four-year outlook.

The paragraph outlines Exelon's financial plan and performance updates. The company plans to invest $38 billion over four years, aiming for 7.4% growth, financed by a balanced mix of debt and equity, and expects 5% to 7% annual earnings growth through 2028. In the first quarter of 2025, Exelon earned $0.92 per share, up from $0.68 in the same period in 2024, mainly due to increased distribution and transmission rates, favorable weather, and tax repairs timing. However, results were partially offset by higher interest expenses due to increased debt and timing issues at ComEd. Jeanne Jones provides further details on financial performance and regulatory progress.

The paragraph outlines a company's financial outlook and operational updates. The company expects a revenue and operations and maintenance (O&M) timing reversal in the balance of the year, which positions them slightly ahead of previous forecasts. Second-quarter earnings are anticipated to be 14% of their full-year earnings guidance, aligning with previous seasonal patterns, targeting full-year earnings of $2.64 to $2.74 per share. They reaffirm a 5% to 7% annual earnings growth through 2028. The company has two active base rate cases at Pepco Holdings: one involving Delmarva Power for gas distribution reliability improvements, with a decision expected in early 2026, and another at Atlantic City Electric related to grid modernization in compliance with New Jersey's energy plan, with ongoing settlement discussions.

The paragraph outlines several regulatory and investment updates related to energy companies in Maryland and Illinois. Evidentiary hearings are scheduled for late July to early August, with an order expected by year-end. ACE plans to implement interim rates on August 21. In Maryland, the focus is on final reconciliations of past multi-year plans and preparing for future filings, supported by recent legislation encouraging multi-year investment plans. The companies aim to align with the state's energy goals by using forward-looking plans for reliability and resiliency. In Illinois, ComEd has filed for an annual adjustment under 2024 base distribution rates, requesting $268 million due to lower revenue requirements and successful performance metrics.

The paragraph outlines financial activities and strategies related to debt and equity for the company. It highlights the completion of nearly half of the planned long-term debt financing, raising $650 million for Pepco Holdings and $2 billion in corporate debt, including $1 billion in hybrid debt, benefiting from strong investor demand. The company continues to hedge against interest rate volatility and plans to meet 40% of its incremental capital investment needs through equity, totaling $2.8 billion over four years. They've already addressed 60% of their 2025 equity needs by issuing shares and setting up forward agreements. They anticipate maintaining a financial flexibility buffer above Moody's downgrade threshold through the plan period.

The paragraph discusses the company's advocacy for changes in the corporate alternative minimum tax to include repairs, which would lower energy costs for customers. Despite recent bipartisan legislative efforts, the plan currently assumes repairs won't be considered, although favorable changes could improve their metrics. Calvin Butler emphasizes their commitment to operational excellence and investment in reliable services, while balancing investor compensation and customer collaboration. They acknowledge economic challenges faced by customers, exacerbated by extreme weather, updated tariff policies, federal budget changes, and rising energy costs.

The paragraph discusses a company's strategic position in managing potential impacts from proposed tariff policies, citing that most supplies are sourced domestically and impact on investment plans is minimal. The company is taking steps such as leveraging inventory levels, cost discipline, and advocating for tax credits under the IRA law to mitigate these effects. Additionally, they are committed to customer support through initiatives like deferred payment plans and budget options. They focus on policy advocacy to acquire new power supply cost-effectively and emphasize efficient investment in the grid through forward-looking recovery mechanisms.

The paragraph discusses the financial strategies and achievements of a utility company, mentioning that over 98% of net profits have been reinvested back into the business over the past five years, supporting economic output and job creation. The company is focused on customer affordability and economic development, aiming to maintain a strong financial performance with a consolidated return on equity of 9% to 10% and reported earnings within a specific guidance range. They anticipate consistent growth and long-term value as they approach their 25th anniversary in 2025. During a questions session, an inquiry about new Maryland legislation affecting BGE or Pepco is raised, with the company expressing confidence in their solidified plans to address potential outcomes.

The paragraph discusses recent legislative developments in Maryland that align with the objectives of the organization. It highlights five key areas, including the approval of NYPs without reconciliations, provisions regarding large load colocation to prevent cost shifts, and a focus on affordability. It also mentions significant legislation promoting battery storage, with a directive for the Public Service Commission to solicit both distribution and transmission battery storage, indicating a commitment to advancing Maryland's energy infrastructure.

The paragraph discusses the recent appointment of two new commissioners in Maryland, highlighting their strong regulatory experience. The author expresses confidence in working with the state to address future needs despite legislative changes. Nick Campanella inquires about the possibility of resolving a colocation issue related to FERC 206 through settlement. Calvin Butler responds that they are open to discussions and committed to meeting customer expectations. He mentions the importance of the unified statement from transmission owners to FERC and reaffirms their principles and willingness to resolve issues equitably. Lastly, the conversation shifts to James Kennedy from Guggenheim Partners, who raises a question about potential legislation in Pennsylvania to support regulated generation.

The paragraph involves a discussion between Calvin Butler, James Kennedy, and Jeanne Jones about the company's approach to resource adequacy, affordability, and energy security for their customers. Calvin Butler highlights that the company supports any initiative that benefits customers, with active involvement in legislative and regulatory discussions. The focus is on creating a balanced and clear recovery process for investments. Jeanne Jones adds that while there isn't a standard rule for project phases converting into a capital plan, the company's aim is cost efficiency. The current plan includes $38 billion, with $5 billion for new business, reflecting a $900 million increase from the previous period. Looking ahead, $10 billion to $15 billion is projected beyond the current planning period, with at least $1 billion for new business.

The discussion focuses on investment plans, mentioning $5 billion in new business, a $900 million increase from the previous period, with expectations for continued growth. Julien Dumoulin-Smith of Jefferies inquires about data center probabilities and their relation to the FERC process. Jeanne Jones clarifies that the 80% and 50% probabilities are not dependent on the FERC process, highlighting their traditional customer base for front of the meter T&D projects. The company has announced 16 gigawatts for Q4 2024, with high probabilities, and has an additional 16 gigawatts planned for the future.

The paragraph discusses the progress of a cluster study in the ComEd service territory and additional efforts on the East Coast, emphasizing that these initiatives are independent of any specific process. It outlines the phases of development, indicating that 70% is in Phase 1, 20% in Phase 2, and 10% in Phase 3, with confidence in handling an additional 16 gigawatts in Phase 1. The company is using a cluster study approach to provide better customer insights on time and cost. They plan to update stakeholders quarterly as they progress through phases. Julien Dumoulin-Smith asks about industry assistance and leadership at FERC, considering different settlement processes. Colette Honorable responds, greeting Julien and asking how he is doing.

The paragraph features a discussion primarily between Julien Dumoulin-Smith and Colette Honorable regarding the progress of a docket at FERC (Federal Energy Regulatory Commission). Colette mentions a strong consensus within the docket, with multiple filings from significant industry groups such as EEI, NERC, and the Independent Market Monitor, supporting a swift decision-making process by FERC. The goal is to achieve clarity on how to manage large energy loads, ensuring affordability and energy security. Colette emphasizes their readiness to engage in settlement discussions if deemed necessary by the commission, highlighting their previous constructive role in the matter. Julien confirms their desire for FERC to issue a decisive ruling promptly. The paragraph concludes with a transition to a question from David Arcaro of Morgan Stanley.

The paragraph discusses the timing and infrastructure challenges related to increasing data center loads. Jeanne Jones outlines a forecast showing incremental load addition from now until beyond 2034. She highlights the importance of clear communication with customers regarding timelines, noting that connecting new loads can take around 36 months or longer. Calvin Butler adds that restructuring their customer strategy organization has led to better collaboration with data center developers, helping meet their needs more efficiently. He cites a recent example of a successful meeting hosted in Chicago with key accounts to improve these partnerships.

The paragraph discusses the challenges of affordability in the context of increased energy costs, particularly due to weather, commodities, and legislative changes. With energy bills rising significantly, Calvin Butler highlights efforts to manage these costs for customers. This includes promoting energy efficiency, providing assistance through tools and extended payment plans, and suspending disconnections. The focus is on proactively addressing weather volatility and supply costs to alleviate financial burdens on consumers.

The paragraph discusses the company's efforts to support communities by connecting them with available state and local assistance programs. They emphasize the importance of these efforts, acknowledging the financial hardships some customers face and expressing commitment to minimize the impact of cost increases. The company is in discussions about partnerships that could extend the reach of allocated funds, like Maryland's $200 million from the Strategic Energy Infrastructure Fund, to help people pay bills. The paragraph also touches on the ongoing conversation regarding New York Projects (NYPs), with an acknowledgment of the legislative support for them and the discretion the company holds in continuing them.

The paragraph discusses a collaborative process involving various stakeholders to address resource adequacy concerns. It highlights a recent legislative session that is expected to lead to a decision soon, with broad participation and feedback from different parties, including the Office of People Counsel, industrials, and residential customers. The ongoing resource adequacy debate is noted, with a focus on an increasing load demand and a limited capacity queue. A technical conference by FERC is expected in June to address these concerns. The approach advocated is a portfolio one, considering multiple generation resources without limiting options, including delaying plant closures or allowing new gas infrastructure.

The paragraph discusses the need for a balanced approach in the energy industry, emphasizing the importance of affordability while meeting growing demands. Jeanne Jones and Calvin Butler highlight the need for a portfolio approach, incorporating energy efficiency, distributed resources, demand response, and collaboration with states. They stress updating outdated regulations to address modern energy challenges and highlight progress in regulatory bodies like FERC and PJM, as well as initiatives in Maryland to develop in-state energy generation.

The paragraph is the closing section of a conference call. Calvin Butler expresses gratitude to the participants for their interest and support of Exelon, emphasizing the importance of collaboration among stakeholders and the aim to provide valuable information. The operator ends the call, thanking participants and signaling the end of the presentation.

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