Exelon(US:EXC)2025-11-04 18:15Financial Performance - Exelon's net income attributable to common shareholders increased by $168 million to $875 million for the three months ended September 30, 2025, compared to $707 million in 2024, with diluted earnings per share rising to $0.86 from $0.70[422] - For the nine months ended September 30, 2025, net income attributable to common shareholders rose by $361 million to $2,174 million, up from $1,813 million in 2024, with diluted earnings per share increasing to $2.15 from $1.81[423] - Adjusted (non-GAAP) operating earnings for the three months ended September 30, 2025, were $874 million, or $0.86 per diluted share, compared to $708 million, or $0.71 per diluted share in 2024[425] - The company reported a favorable variance in net income across its subsidiaries, with PECO showing a significant increase of $133 million in net income for the three months ended September 30, 2025, compared to 2024[421] - ComEd's operating revenues for Q3 2025 were $2,275 million, an increase of $46 million compared to Q3 2024, while net income rose by $13 million to $373 million[452] - For the nine months ended September 30, 2025, ComEd's net income increased by $80 million to $903 million, driven by higher distribution and transmission rate base and higher return on regulatory assets[453] Revenue and Rate Changes - The favorable impacts on earnings were primarily due to rate increases at ComEd, PECO, BGE, and PHI, along with lower storm costs at PECO and higher returns on regulatory assets at ComEd[422] - Exelon is currently involved in several distribution base rate case proceedings, with requested revenue increases totaling $1,487 million for ComEd in Illinois and $464 million for PECO in Pennsylvania[431] - The approved revenue requirement for ComEd in Illinois was $1,045 million, effective January 1, 2024, while PECO's approved revenue requirement was $354 million, effective January 1, 2025[431] - Distribution revenue increased by $85 million in Q3 2025 compared to Q3 2024, primarily due to higher fully recoverable costs and higher rate base[454] - Operating revenues for PECO increased by $150 million (14.6%) for the three months ended September 30, 2025, and by $538 million (18.1%) for the nine months compared to the same periods in 2024[467] - Operating revenues for Pepco increased by $131 million to $992 million for the three months ended September 30, 2025, and by $306 million to $2,626 million for the nine months ended September 30, 2025, compared to the same periods in 2024[509] Expenses and Cost Management - The total operating expenses for Q3 2025 were $1,717 million, a decrease of $14 million compared to Q3 2024, with purchased power costs decreasing by $29 million[452] - Purchased power expense decreased by $29 million (6.1%) for the three months and by $460 million (29.5%) for the nine months ended September 30, 2025, compared to the same periods in 2024[460] - Interest expense, net increased by $7 million (12.1%) for the three months and by $21 million (12.6%) for the nine months ended September 30, 2025, compared to the same periods in 2024[464] - Operating and maintenance expenses for the three months ended September 30, 2025, increased by $14 million, while for the nine months, they increased by $74 million compared to the same periods in 2024[517] - Depreciation and amortization expenses increased by $6 million for the three months and $18 million for the nine months ended September 30, 2025, primarily due to ongoing capital expenditures[519] Customer and Delivery Metrics - Total electric retail deliveries decreased by 1.9% for the three months ended September 30, 2025, and remained consistent for the nine months compared to the same periods in 2024[473] - The number of electric customers increased to 1,707,802 as of September 30, 2025, from 1,698,203 in 2024, reflecting a growth of 0.5%[473] - Natural gas deliveries for residential customers decreased by 12.5% to 2,064 mmcf in Q3 2025 compared to Q3 2024, while small commercial and industrial deliveries increased by 16.0% to 2,243 mmcf[476] - The number of natural gas customers for PECO increased to 555,395 in Q3 2025, up from 551,808 in Q3 2024[476] - The number of total electric customers increased to 561,443 as of September 30, 2025, from 556,125 in 2024[530] Regulatory and Legislative Developments - Exelon anticipates continued regulatory proceedings that will impact future financial statements and earnings potential[428] - The MDPSC distributed approximately $49 million in bill credits to BGE, $21 million to Pepco, and $8 million to DPL as part of the Legislative Energy Relief Refund program[447] - The Next Generation Energy Act allows for multi-year rate plans, with BGE derecognizing regulatory assets of $10 million and liabilities of $3 million in Q2 2025[445] Capital and Financing Activities - Exelon reported an increase in cash flows from operating activities of $867 million for the nine months ended September 30, 2025, compared to $24 million in the same period of 2024[559] - Capital expenditures for Exelon totaled $(934) million for the nine months ended September 30, 2025, compared to $(351) million in 2024[561] - Exelon issued approximately 4.0 million shares of Common stock at an average net price of $42.98 per share during the first quarter of 2025, raising net proceeds of $173 million[572] - On September 19, 2025, ComEd filed for $2.8 billion in new long-term debt financing authority, expecting approval by December 31, 2025[597] - PECO and BGE filed applications for new short-term financing authorities of $1.5 billion and $900 million, respectively, both expecting approval by December 31, 2025[598] Risk Management - Exelon operates under cost-based rate regulation, utilizing hedging programs to mitigate exposure to energy and natural gas price volatility[603] - Exelon manages market risks through comprehensive risk management policies, with issues reported to the Executive Committee and Audit and Risk Committee[604] - Interest rate risk is significantly reduced as most of the Registrants' outstanding debt has fixed interest rates, with a mix of fixed and variable-rate debt used for management[608]