Exelon(US:EXC)2024-08-01 17:43Financial Data and Key Metrics Changes - Exelon reported adjusted operating earnings of $0.47 per share for Q2 2024, an increase from $0.41 per share in Q2 2023, driven by higher distribution and transmission rates and favorable weather conditions [4][13][14] - The company reaffirmed its full-year operating earnings guidance of $2.40 to $2.50 per share for 2024, with a long-term annualized growth rate of 5% to 7% through 2027 [4][14][25] Business Line Data and Key Metrics Changes - ComEd and PECO Holdings achieved top decile reliability performance despite increased storm activity, with ComEd experiencing four times the storm activity compared to the previous year [9][10] - Customer satisfaction scores remained consistent, with ComEd and PECO in the top quartile, while Pepco Holdings and BGE made progress in improving their performance [11][12] Market Data and Key Metrics Changes - The company noted a significant increase in demand for data centers, with over 5 gigawatts in the engineering phase in Illinois and an additional 13 gigawatts in prospects [47] - Exelon is actively engaged in discussions with state policymakers to attract data centers, with supportive legislation already passed in several jurisdictions [46][47] Company Strategy and Development Direction - Exelon plans to invest $34.5 billion to grow its rate base at 7.5%, aiming for annualized earnings growth of 5% to 7% [4][14] - The company is focused on modernizing the grid and ensuring reliable service while balancing affordability for customers [27][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting regulatory requirements and emphasized the importance of aligning rate-making processes with new energy demands [9][34] - The company is committed to addressing resource adequacy issues and ensuring reliable power supply amidst increasing demand from AI-driven data centers and electrification trends [33][36] Other Important Information - Exelon successfully raised $1.6 billion for ComEd and BGE in Q2 2024, completing 90% of its planned long-term debt financing needs for the year [25][26] - The company highlighted two major projects aimed at supporting economic development and meeting load growth demands in Illinois and Maryland [20][23] Q&A Session Summary Question: Conversations on resource adequacy with state policymakers - Management indicated ongoing discussions with stakeholders regarding resource adequacy and the need for infrastructure investments [32][34] Question: State support for attracting data centers - Management noted strong momentum and supportive legislation in states like Illinois and Pennsylvania to attract data centers [45][46] Question: Impact of PJM auction on customer bills - Management projected double-digit increases in customer bills in some jurisdictions, particularly BGE, due to capacity constraints [64] Question: Legislative priorities regarding co-location study - Management emphasized the importance of public engagement in the legislative process to ensure all customers have a voice [66]