Release Date: October 30, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Exelon Corp (EXC, Financial) reported GAAP earnings of $0.70 per share and operating earnings of $0.71 per share, exceeding expectations from the previous quarter.
- The company achieved top quartile performance in key indicators such as safety, reliability, and customer satisfaction, despite significant storm activity.
- Exelon Corp (EXC) made substantial progress on its regulatory calendar, including settlements in PECO gas and electric rate cases and advancements in the District of Columbia's economic development efforts.
- The company is on track to achieve its operating earnings guidance of $2.40 to $2.50 per share for 2024, with a long-term annualized operating earnings per share growth range of 5% to 7% through 2027.
- Exelon Corp (EXC) successfully completed all planned long-term debt financing needs for the year, maintaining a strong balance sheet and investor confidence.
Negative Points
- Exelon Corp (EXC) faced significant storm activity in July, which impacted operations and required extensive mutual assistance.
- The company is dealing with heightened interest expenses, which offset some of the gains from higher distribution and transmission rates.
- There are ongoing concerns about resource adequacy and reliability in the PJM region, with discussions on potential legislative changes needed to address these issues.
- Exelon Corp (EXC) is navigating complex regulatory environments across multiple jurisdictions, which could impact future investment plans and rate base growth.
- The company is facing challenges related to the tax treatment of network load and the need for clarity from regulatory bodies to proceed with confidence.
Q & A Highlights
Q: Is Exelon still aiming for the midpoint or above in their 2024 earnings guidance?
A: Jeanne Jones, CFO, confirmed that Exelon continues to aim for the midpoint or better in their earnings guidance for 2024, consistent with their long-term guidance strategy.
Q: How is Exelon addressing the capacity market issues in PJM, and what strategic initiatives are being considered?
A: Calvin Butler, CEO, emphasized the need for reform in PJM's capacity market, supporting PJM's leadership in proposing interconnection and capacity market reforms. Exelon is actively engaging with governors and regulatory bodies to address these issues, focusing on reliable and affordable energy.
Q: How would Exelon's plans change if multiyear rate plans were not implemented in Maryland?
A: Calvin Butler, CEO, stated that while multiyear plans are preferred for transparency and affordability, Exelon is prepared to revert to traditional rate-making if necessary, reallocating capital across jurisdictions to continue moving forward.
Q: What are the key themes driving the need for increased transmission investment at Exelon?
A: Jeanne Jones, CFO, highlighted three main themes: core reliability and resiliency work, changing generation mix with new and retiring generation, and net new load growth, particularly from data centers, which necessitate significant transmission investments.
Q: How is Exelon addressing the regulatory and cost allocation issues related to co-located loads?
A: Calvin Butler, CEO, explained that Exelon is advocating for clarity in cost allocation for co-located loads to ensure they pay their fair share for grid services. Exelon has filed with FERC to seek guidance on these issues, emphasizing the need for transparency and reliability.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
