Exelon(EXC) - 2025 FY - Earnings Call Transcript

Financial Data and Key Metrics Changes - Exelon achieved strong year-over-year growth in operating earnings, with annualized earnings growth expected to be between 5% to 7% through 2028 [16][17] - The company deployed $38 billion of capital over the next four years, growing its rate base nearly 7.5% [17] - Exelon's electric bills as a percentage of median income are 18% below the national average, and rates are 21% below the average of the 20 largest U.S. cities [40][34] Business Line Data and Key Metrics Changes - All operating companies achieved top quartile performance in outage frequency and duration, with BGE demonstrating best on record performance [18] - ComEd and Pepco Holdings ranked in the top decile for outage frequency management [18] - Exelon invested $7.5 billion in 2024 to meet energy and economic goals, with plans to invest $38 billion from 2025 to 2028 [21] Market Data and Key Metrics Changes - Exelon anticipates 17 gigawatts of incremental high-density load coming to its jurisdictions in the next decade [22] - The company identified over $1 billion in opportunities in MISO for supporting RTOs' SCENE interconnections [46] Company Strategy and Development Direction - The company is focused on affordability while prioritizing clean energy as a long-term goal [15] - Exelon aims to modernize its transmission system, addressing aging infrastructure and economic development needs [44] - The strategic plan emphasizes investment growth and operational excellence to enhance shareholder value [20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about transformative growth and the importance of maintaining affordability amid rising energy costs [15][16] - The company is committed to improving the quality of life in the communities it serves through workforce development and community engagement [25][26] Other Important Information - Exelon celebrated its 25th anniversary, highlighting its impact on customers and communities over the past quarter-century [23] - The company received recognition for its operational performance and commitment to diversity and inclusion [34] Q&A Session Questions and Answers Question: Has Exelon eliminated their spending on diversity, equity, and inclusion? - Management affirmed their commitment to diversity and inclusion, stating it helps improve service and reflects the communities served [33][35] Question: Will the company declare its opposition to the current administration's economic approach? - Management emphasized their history of working with policymakers across the political spectrum to advocate for beneficial laws and regulations [37][38] Question: How is Exelon managing affordability in light of persistent inflation? - Management highlighted that despite robust investments, electricity bills remain competitive, with efforts to keep bill growth in line with historical inflation [39][40] Question: Where do you see your growth opportunities going forward? - Management identified growth opportunities in the expansion and modernization of the transmission system, addressing aging infrastructure and new load connections [44][46]