Exelon(US:EXC)2025-05-01 20:19Financial Performance - Exelon's net income attributable to common shareholders increased by $250 million to $908 million for the three months ended March 31, 2025, compared to $658 million in the same period of 2024[353]. - Diluted earnings per share rose to $0.90 in 2025 from $0.66 in 2024, reflecting a significant improvement in financial performance[353]. - Adjusted (non-GAAP) operating earnings for the same period increased to $932 million, or $0.92 per diluted share, compared to $685 million, or $0.68 per diluted share in 2024[355]. - ComEd's net income for the three months ended March 31, 2025, increased by $109 million to $302 million, primarily due to higher distribution and transmission rate base and increased return on regulatory assets[378]. - PECO's net income increased by $117 million to $266 million, attributed to increased revenues and a decrease in income tax expense[389]. - Net income for BGE decreased by $4 million to $260 million for the three months ended March 31, 2025, primarily due to increased operating expenses and interest expense[407]. - PHI's net income increased by $26 million to $194 million for the three months ended March 31, 2025, primarily due to favorable impacts from multi-year plans and higher transmission rates[422]. - Net income for Pepco rose by $22 million to $97 million, primarily due to favorable impacts from multi-year plans and higher transmission rates[424]. - DPL's net income increased by $3 million to $69 million, driven by favorable weather conditions and higher DSIC rates[435]. Revenue and Expenses - ComEd recorded a charge of $70 million for probable disallowance of certain capitalized construction costs due to a settlement with FERC[368]. - Operating revenues for BGE increased by $257 million to $1,554 million for the three months ended March 31, 2025, compared to $1,297 million in 2024[407]. - Operating revenues for Pepco increased by $100 million, reaching $859 million for the three months ended March 31, 2025, compared to $759 million in the same period of 2024[424]. - DPL's operating revenues increased by $57 million to $548 million for the three months ended March 31, 2025, compared to $491 million in 2024[435]. - ComEd's total operating expenses decreased by $190 million to $1,591 million, with a significant reduction in purchased power expense by $218 million[378]. - Operating and maintenance expenses for BGE increased by $41 million, driven by labor and regulatory required programs[416]. - Effective income tax rates for ComEd were 17.7% for Q1 2025, compared to 9.0% in Q1 2024[388]. - Effective income tax rates for BGE were 21.5% in 2025 compared to 8.3% in 2024[419]. - Effective income tax rates for Pepco were 20.5% for the three months ended March 31, 2025, compared to 15.7% in 2024[433]. Customer Metrics - As of March 31, 2025, the number of electric customers for PECO was 1,709,438, a slight decrease from 1,710,839 in 2024[393]. - The number of residential natural gas customers rose to 509,773 in 2025 from 508,429 in 2024, while small commercial and industrial customers decreased slightly to 44,869 from 45,038[395]. - The number of electric customers for BGE increased to 1,349,688 in 2025 from 1,341,840 in 2024[409]. - The number of electric customers in Maryland increased to 607,390, up from 602,098 in the previous year, with residential customers growing to 557,672[426]. - The total number of electric customers increased to 574,762 as of March 31, 2025, from 572,118 in 2024[456]. Regulatory and Legislative Developments - Exelon filed several distribution base rate cases in 2025, with requested revenue increases totaling $1.487 billion across various jurisdictions[361]. - The approved revenue requirement for ComEd's base rate case was $1.045 billion, effective January 1, 2024, with an approved return on equity of 8.905%[361]. - The Utility Registrants are evaluating opportunities under the $1.2 trillion Infrastructure Investment and Jobs Act, which includes funding for power and grid reliability[373]. - The IRS issued guidance that could result in a reduction of regulatory liabilities for the Registrants, potentially impacting deferred income taxes by approximately $1.2 billion to $1.7 billion[371]. - Exelon anticipates ongoing regulatory proceedings will impact future financial statements, emphasizing the importance of these developments for strategic planning[358]. Capital Expenditures and Financing - Capital expenditures for Exelon totaled $(179) million, with ComEd at $4 million, PECO at $(63) million, BGE at $(82) million, and other Registrants showing varying amounts for the three months ended March 31, 2025[469]. - Projected capital expenditures for Exelon in 2025 are estimated at $8.9 billion, with ComEd at $3.2 billion and PECO at $1.875 billion[483]. - The Registrants have access to credit facilities with aggregate bank commitments of $4.0 billion to support their financing needs[463]. - Changes in short-term borrowings for Exelon resulted in a net decrease of $(458) million, while long-term debt increased by $701 million during the same period[470]. - Exelon declared a quarterly dividend of $0.40 per share for both the first and second quarters of 2025[473]. - The Registrants issued approximately 4.0 million shares of Common stock at an average gross price of $43.42 per share, generating net proceeds of $173 million for general corporate purposes[479]. Pension and Hedging - Exelon's estimated annual qualified pension contributions will be $275 million in 2025[485]. - Exelon aims to achieve 100% funded status on an ABO basis for its pension plans over time[485]. - The Registrants utilize hedging programs to mitigate exposure to energy and natural gas price volatility[500]. - The total mark-to-market net liabilities associated with ComEd's floating-to-fixed energy swap contracts amounted to $151 million[507]. - Exelon and its subsidiaries may face increased pension contribution requirements if interest rates decline significantly[487]. Cash Flow and Liquidity - Cash flows from operating activities for the Registrants totaled $208 million for the three months ended March 31, 2025[466]. - Operating cash flow changes for the Registrants were consistent with operational results, with significant impacts noted for the three months ended March 31, 2025, and 2024[467]. - The Registrants believe their cash flows from operating activities and access to credit markets provide sufficient liquidity to support future cash requirements[477]. - Incremental collateral requirements for ComEd would be $13 million if it lost its investment grade credit rating, with available credit facility capacity of $638 million[481]. Ratings and Credit - S&P raised Exelon and PECO's long-term issuer credit rating from 'BBB+' to 'A-' and Exelon's senior unsecured debt rating from 'BBB' to 'BBB+'[493]. - The Registrants' outstanding debt is primarily fixed-rate, significantly reducing interest rate risk[505].