EXC - Earnings call transcript Q3 2018

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning, ladies and gentlemen. Welcome to Exelon 2018 Third Quarter Earnings Conference Call. My name is Jerome and I will be facilitating the audio portion of today's interactive broadcast. All lines have been place on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. time, turn this to show At Mr. Instructions] I'd the like over [Operator Vice Corporate Eggers, President, Dan Senior Finance. is floor The yours.

Daniel Eggers

our questions conference reconciliations I'll over in adjusted Exelon's for GAAP operating for minutes earnings from non-GAAP results refer in management's Please the Chris today's Appendix discussions the factors the to now of call that issued results both could statements Thank comments morning filings which of the other you, to contained discussed We and President and other uncertainties. subject call. Exelon's our are the who earnings Chief joining team and presentation following We release thank along and turn call matters we'll forecast with this Exelon's risks and Exelon's you can Please Today's Leading answer Actual various cause Jerome. from in SEC and our to Good and this our and be They're our will remarks. morning factors also on today's measures. information earnings differ release senior measures. third expectations. references risk everyone, Exelon's Chief earnings which Executive on XX during Financial quarter discuss management Joe nearest prepared may presentation our Crane, found for made other Officer. site. today's estimates release are CEO. material section the to assumptions of members X-K Investor to differ and between forward-looking Crane, during Chris non-GAAP of today and and measures that The the based your other Officer; for call. contain available scheduled Exelon's the and Nigro, statements Web projections, today's factors forward-looking presentation, XXXX and to by earnings joined call. Relations to be call refer equivalent and

Chris Crane

five, and us another upper-end morning quarter for our well earnings you utilities slide lower with to we delivered everyone. The strong allows Flipping ROEs to range, guidance. with and the earned the year largely first raise Dan, Thanks, of strong end which at good full operations. Thank performed of our joining quartile us. again

As legality we stated of the Appeal And affirm in New million our strongly previously, focus the $XXX Federal ZEC. and continues cost of the million. Courts on savings an York additional identifying million line, that in than more gross $XXX the performance savings, demonstrates our value. to growing to are flow which Combined, will six-year our of $XXX this total bottom bringing Illinois

For we basis, a per and per above we the on are On $X.XX share $X.XX versus year. to our was of $X.XX range midpoint the are $X.XX per a quarter, guidance that last again at share at non-GAAP $X.XX basis, GAAP provided. share, operating

to scores legislators. in Turning across greater and in second ever, last our their higher to ultimately The infrastructure at satisfaction, leads perform slide to making and investments reliability, to which technology improve are customer levels metrics. continue six, and satisfaction key we continue operating our and utilities residential BG and PECO gas relations JV survey. the regulators strong supporting and electric power ranking placing over PECO our with residential electric highest its with improved receiving year the customer

service our of utilities priority is -- improve the which continued outage we've was discussed our XX.X metrics the in is duration is for remains since decile -- top for XX.X%. BGE is for have capacity its third of at decile levels. in customer the of Each the PHI achieved in Our top reliability quartile CAIDI CAIDI, in SAIFI, to duration. ComEd in our decile is satisfaction, is factor highest in service and ComEd ExGen, SAIFI, and the our strong. frequency top CAIDI. terawatt excuse outage metrics are quarter performed and beginning as or past top that which year. PHI in customer hours me, performance At and SAIFI outage and

nearly metric During performed years, factor, capacity hottest at in carbon. the we and of avoided tons XXX XX.X% summer fourth XX

Our Hollow into gas performed and Colorado offline and dispatch late economic our but fleet This have The blades XX.X%. replaced. below plan because hydro blades September. Hollow with defects. of primarily service turbine CCG's lower the in being some came account match performance back was been of well, Wolf Bend at result Wolf

over the as the returned in in service service to speak. a October, back part were time would we're the and been shut outages, well covered of are with have other summer our be took the the contingency next repairs Colorado down under of to the integral financial required performance units durability. the impact to of design the markets well of within very prior Bend remain a all that and We our down performing Texas have very One From plan. outage strategy. restart perspective, They spring. we process ran will It's of range warranty, normal shortly. from that being in plants for and advantage the The plants and an the pleased full outage their maintenance

record created our you why this in year earlier business as savings, cost we had efficiencies we've focus business services Turning the to business a driving team finding transformation the track company. slide of seven, and to is which know, strong on

his to in policy additional savings announcing part and we start now our that from to quarter more to it nuclear updates going of the programs. with at our will costs the reduction ZEC a are reach rate XXXX of remarks. line with bottom from which Joe's detail $XXX during million fleet, this run ExGen. effort that turn million I'll the $XXX As cover

to in rulings were happy In the ZEC recover early on XXXX. to the of hearings we're Public respectively. these Jersey, on the and Utilities resigning remains for As so are second plaintiffs Second of to York importantly in ZEC quarter the Illinois of The month. ZEC last I New these rehearing said tethered both effect implementation court denied policies. they attributes on his that the sources generation challenges of such programs not and performance information prefer an program well related utilities the the the based as doing stay The process finished court have with that take and has ZEC Seventh case of New that and market. the to environmental choose Board expectations are the track have The programs tariffs states a Court which consistent right on Illinois with charges. found Appeals in In dismiss the each program clean the implementation to our energy the

took module. Number construct. of PJM. We diverse market current important were in of proposals procurements see generation month the states expect that capacity step the federal policy the Exelon the major the continue proposals by order, empowering all a a the of On our the response zero a front, followed putting changes BPU approve state-led outside to to filed member PJM is including think financially June in in position prioritizing from carbon throughout later order we which We FERC's than coalition to is of this energy an the better fleet

gives a advocates, to but support of it energy the We public associations, other rights a followers environmental more coalition in consumer, of part ratepayer, the national attorney are coalition, power clean on PJM. groups, states their trade and generators pleased lot have includes advance Slide energy to generals, to detail XX renewable the goals. nuclear

for support markets plagued are list flexibility capacity be to market. November for protect early and and due FERC states proposal procurement for Our for the the meet resources comments capacity resources to it of conduct important the will ensure while to paying can they straight protecting to provide thrice and the a environmental would is for FERC reasons, looking to next fits an year states a public guidance policy with going goals, balance will give their to forward. issue X, order competitive the We consumers

still I'll to numbers. vast But resiliency As the to walk from the start on it that, over Joe orders waiting FERC we are you turn through now and for examination. with know,

Joe Nigro

Thank you, morning good and Chris, everyone.

weather Turning guidance $X.XX end $X.XX favorable another our the XX:XX:XX per Holding Atlantic less is City activity financially Generation share. $X.XX to earned earned share, eight, jurisdiction in Compared plan. combined we of PECO, operating at share. including expenses earnings to to slightly storm in of our behind $X.XX utilities plan, and per our our upper Company benefited $X.XX non-GAAP share from had which quarter the strong we Delmarva was and delivering reduced Delaware. a third Exelon's slide of range quarter per per adjusted non-decoupled which Electric

of year $X.XX XXXX. earnings gross from ERCOT margins XXXX, decommissioning deconsolidation compared addition quarter costs. third and slide down second rate of performance CCGT in the quarter, transition with as per share last of quarter cases, offset was higher with rates third from Illinois planned compared lower with one days, new nuclear quarter Generation in were by per the These partially to realized allocated $X.XX than higher collectively offset unplanned third with revenues our nuclear lot this show just outages ZEC utility fourth the [indiscernible] and that impacted trust by EGTP our were share driven of of fund. partially driven the in quarter and from realized tax from largely were higher up $X.XX as realized end associated discussed earnings On base, favorable reform. by The higher generation at last lower-than-expected the rate well share the ERCOT quarter $X.XX year weather. nine, the prices per walk. absence by share outage the as versus a full per Overall The quarter-over-quarter the contribution of completely year primarily we was gains savings by

XX, $X.XX share from the $X.XX range our guidance to slide $X.XX per raising share. end we to $X.XX to XXXX Turning to lower of EPS are per

generation the as range, including have are results at headwind and up with We both our strong operational of half storms. the businesses overcome into utilities are that pushing winter challenging upper unexpected particularly us we the the pleased

during fall's favorable Electric, At effective for improves City settlement interim from at Moving to significantly benefits rates with quarter. slide as are effect quarter last Maryland and we XX-month which rates the ROE earned cases PHI weather during final fall's rate weather of Delmarva effective case as rate as the higher better DC the the respectively. positive distribution last outcomes ROE in September came earnings last saw and that and as Delaware from favorable settlement Electric case at quarter, higher ROEs XX, earned first during with ROE. improved Delmarva, August took Pepco's June reflects trailing rate the Delmarva's Atlantic quarter. recent driving include operation Pepco X, well well

utilities PHI from our we continue next quarter As of FAS out should trailing discussed for have of XXX XX-month ROEs the the charges calculation. as to of previously the fourth drop improve all quarter XXXX

modestly remained For the legacy were quarter. our Exelon ROEs over utilities, last dipped from earned XX%

for Exelon our Our outlook earnings overall XX% at utilities were for that earned earned X% and than modestly within our ROEs of ROE target XXXX well beyond. last higher underlies to X.X% quarter

overall are have for improvement We rest performance to closer continued utilities. PHI the plans but our pleased with of bring our utility to

an The benefits front. on electric for the revenues net revenue Turning all over $XX October $XX rate tax customers annual regulatory to million for million in the million recommended approved. base saving increase. in Judges settlement slide case presiding Law deal the electric distribution increase XX, for by of XX, provides offset PECO's be Administrative we remain distribution busy with parties On $XX

A reform We on Delmarva fourth On deduction we provided the $X case based the expected on quarter. of a April $XX.X million including revenue quarter. the order backed commission June Delaware, reached settlement electric on August final order after of rate Delmarva for for million tax was Delaware for settlement benefits August the benefits XX in is that $X.X million X, to agreement firm X, XX September entered which the will approved August settlement decrease fourth pending gas order to distribution distribution customers. under case. base May revenue including the receive revenue customers. DC in decrease The in provides capture in XX. tax into final A reached case expect the incorporating On an in that received

cases also number of have in We rate progress. still

expect XXXX. BG&E rate spending January We gas of in order an case for

currently its As $XX.X to case request for investments with $XX.X in the include XXXX into revenues rate. gas revenue a engine surcharge and infrastructure the since base increase reminder, the moving million recovered that million being STRIDE

hard distribution utilities August and We in are detail we on the expect Board of performance to ROE helping for XXst seeking quarter. in Atlantic system Electric doing improve Commerce an on revenue to the base in on of turn source from XXXX. of scheduled formula half of teams support in regulatory for case a our Illinois a and increase an allocated receive utility reliability customers work we the Jersey the Public standard the expect a that Commission and their that filed lot $XXX are More City order the The rate XX million rate the the finally, regulatory levels on earned through across be New cases lift levels. found the second of And fourth of and Utilities rate XX to appendix. Exelon with case slide backdrop order

to billion ability year-to-date. in meet at $X.X billion remain the to the XXXX. XX, billion quarter in $X.X budget and capital third our confident during utilities invested Turning our around for We we capital slide $X.X

would utility investors. portfolio within quarter to two This feature and I our like projects

schedule The ComRD than per Meter of meters day just million $XX in ComEd the first to on budget. smart million Smart ahead of installed seven three Installation that more seven to over original than this average in which million context, more installed is smart program the years over completion the our X,XXX To year $XXX put help meters ComED and early is X program. years, span. under

them offerings. our smart and that about as of will save ComEd on better fact, workers further installation consumption allow XX,XXX can customers over In allow meters money The this one to informed program. the service it help ComEd improved part energy installed will be personally System to their of meters of

primarily The $X.X Infrastructure avoided smart Program. In tried Act and over the is such operational savings, Energy installation addition, million operations, part meter truck billion the meter annual in efficiencies we $XXX field in of from program reading increased rolls. Modernization as

for project Pennsville, XXX XX I and and for project Jersey. consisting in to included also equipment additional Atlantic upgrading New kV expansion XX line Construction highlight Electrics expanding $XX capacity entailed by of for upgrades Churchtown reliability regional second The City Expansion million XXX The projects kV, This customers. to customers new installation is want Substation equipment our up the our which X.X and capacity. benefits transmission miles structures. stated transmission and has transmission improves of congestion reliability our of by kV replacing expansion reducing

both in $XX update, of up slide margin XX, result was primarily to power. total XXXX as relative last XXXX, and to Turning our higher a gross and our flat XXXX million in

prices For West weakening XXXX spikes. to lower was the mark-to-market price hedging by is Total margin primarily of open million margin New offset gross up spread. due Zone ERCOT and higher Hub $XXX higher offset by NI due A our to PJM spark York and gross Hub,

the on prices Similar toXXXX, open higher hedging margin For to $XXX respectively XXXX York spark A up higher XXXX in due and Hub gambled XXXX and prices. prices. mark-to-market up $XXX was XXXX, million a ERCOT with gross and In Zone also million PJM West New of margin XXXX, was is spreads. Hub and and higher open stronger our NI gross

our executed both year. the $XX million a when concentration. with our million Business XXXX ratable ratable XXXX quarter of we XXXX We and X% Business XXXX $XX in of New non-Power line program behind to in and hedges executed have perspective, XX% X% ratable in hedging also and each From XXXX ended we commodity hedging where New cross increased in and behind considering to in XX% Power

cost is we Exelon our another Generation over previous annual expect at other more on our be Turning for to our continues work savings continual to of of in next which teams to to over mentioned, are efforts as practices, With have by $XXX OEM a part guidance, $XXX we would ramp customers the will evaluate while these savings of we our we rate looking over technology. cost savings embrace Exelon to portraying incremental $XXX our XXXX, million with ways efficient and years. from incremental If expect reductions due as of being savings ExGen, XX, slide Chris the reduced in announcing I'm we flowing in round better up Jack culture transformation cultural bottom our primarily relative discipline program, of will work business $XXX since direct this evasion Generation efficiencies we stewardship. cost and updates to gross These $XX our day we all look XXXX the shared bottom run XXXX, hard every lower will Business million. flow line. Company [indiscernible] and reliability Exelon two new even and our Utility, line with which company chart. of costs left through $XX employees, BSC, of values. operations since and Exelon from all the at savings at with show These part which Generation our benefit efforts the the It's include half to XX/XX in the from the and are about commitments the gross the million efficiently, our consistent BSC half we with BSC is and to amounts the that come Exelon to million excellence. ExGen Utility through leading. through run The time, to O&M from our and million operational Services great community When been number costs or savings roughly safety, hearing savings between to has more we of million $XX of [indiscernible] the nuclear now

sheet. our placed improvements balance in ratings positive, index and to remain corporate end slide balance S&P strong watch of earnings strength our credit investment our recognizing that to our overall XX, for grade And ratings. on since credit has committed one sheet the Turning to call we last ExGen

consolidating ranges S&P remain target to our meaningfully credit corporate metrics, above and our Turning thresholds. metrics the above

We X.X our is are debt we leverage target is to which basis, year-end are forecasting which times below times. X.X a On ExGen's long debt-to-EBITDA term at well be recourse range. below times, of target X.X XXXX at our

time We reduction at you. call GenCo. so to debt-to-EBITDA turn will level, ExGen us our and over Chris. the sheet to balance focus both X.X will now I HoldCo look the times debt manage at the continue Thank for back to for on

Chris Crane

Thanks, Joe.

we financially slide a have strong XX, have as shown quarter to you, Turning and operationally. we

hard the all due day. We fronts. of get and both our This continue to on employees stronger dedication to is every work of

course are finding important the cost We operate to incremental to and ways and efficiently discussed. ZEC had as also wins programs, savings preserve of more providing

Our value starting proposition our X% to at EPS XXXX. remains utilities growing unchanged. We're focused on growth X% through

continue flow from years needs equity We four the rate. growth faster of dividend incremental GenCo the cash at on down at to free HoldCo pay over GenCo funds the and utilities, the debt the next part use up the and

free We markets. states value will carbon formation while fair proper at stay fleet, focused generation and continue to on seeking market that allow reforms air ExGen the protect benefiting in compensation supporting and for to pollution, from carbon citizens resiliency efforts at regional by capacity our price in PJM FERC, from will optimizing supporting

it to credit We for call accelerate maximize uneconomic and value will continue questions. does and the to dividend matching we the to XXXX. our can generation close to sell strategies assets grow We reduction -- Thank and open make through sense sustain consistently plans, strong it load now X% take at investment-grade not metrics debt up Operator, our you. to were

Operator

line Greg your Evercore. from the [Operator of first Gordon comes line question Greg, now Instructions] open. is Your from

Greg Gordon

morning guys, questions. Good of Thanks. couple

Chris Crane

Good morning.

Greg Gordon

GenCo operational squishy quarter, comfortable that decent the at us look temporal some on talk a Can the the sort was it First, of little just not really and those utility us you they're and issues. through underlying that get but operations of side too, the around structural? and seems on good everything

Chris Crane

Are about around operational GenCo power… in you the the talking the issues

Greg Gordon

out higher and your numbers? be not Yes, I they're ability sort the and impact the to just get Texas, your to the interruption FDR of want that sure into in future we going can Massachusetts, run costs. to make comfortable

Chris Crane

assets. Texas the with out start me Let

GE is will we strong hours in numbers of I'll So, were so the were well, we difficulty with unit, and be had roll before first And we'll back going and independent responded Bend. and a said, that and fix. of stage solid Those at and assets two. GE that -- the borescoping responded together, at putting incredibly I three feel put there the We them was the Joe did on We that high had in We one continue other program operation. very fill many approximated some failure capacity phase replace fix us these let confident and forward. CTs was the we're it. Colorado could The to first and running, of the confirmed first already very in in us. the to rest inspection the new operate was operate in efficiencies design. phase the engineering They've serial expect the XHA.XXX, we after run by down, designed. on assets, up CT warranties assessments, behind on feel that the give assets the GE proactively out one blades. then with design, now as fourth aware we period able well the so those and them those GE start-up underway as that shut be on has factors us the

cover I'll the let the other issues, it. On FDRs and Joe

Joe Nigro

Yes.

So I as thing issues some think at drove the Greg, of first the Chris generation mentioned Exgen. is underperformance

in Texas, the they end at when that the and prices June was to there. impact at for the how difference there you with of quarter, addition where looked an In realized

lower into As know, we than prices were market you the when walked spot quarter. the

negative a On the orders transmission the were and at with that side, FERC, costs impact. XXX for had associated

you the favorability our transmission decommissioning at The one-time driven realized at on gains. are both Mystic those liquid generation and side. about occurrences on the lens Ercot, from performance the trust So talk when was similarly

items look that these you when are think I results. it see driving overall So from one-time you at our the lens,

Greg Gordon

declining million let cost a in more billion Exgen that impressive, on looking bit $X.XX an if change, Thanks. $XXX it's savings, one billion Great. from but $X.XXX really XXXX you cuts, the got XXXX, me, the by declined little in follow-up $XXX to you've and million. then margins costs gross and incremental And quite at one more

back-wardated job aren't would And "Well, getting cuts are I say, and that investors than doing skeptical you give but structure, these here, look not [ph] the so, power can confidence are hopefully argue leverage you better." that positive lower right-sizing at here guys and cost are that move cost earnings prices this as -- us through but and these and commodity Yeoman's operating prices some time temporary, we there's permanent are structural? capacity prices

Chris Crane

this in We a lacked we've years. liquidity talked about before that out market. the softer It's

the Our this back-wardated fundamentals not curve is prompt that years we'll as in. what still us come see tell

And and commodity be that. open managing that hedges margin cross the as using maintaining to manage so, book in manner to we're much able

We will look driving constantly at efficiencies.

a operate You inefficient. being with and can't or have company any entity the aspect company within

to in reduction but driving and customer. a we'll we is has them continue the of that on one benefits, multiple So, expense, focus serve efficiencies as

as issues, to Jim the As any cover want you more or that? on far market Joe, do

Jim McHugh

Yes.

we're is, about price won't backwardation really the net like cleared years lead even $XX. the I believe have new of XX and would think I We've of between showing that to one stock the I prices delivered $XX, next XX the year north us years and backwardation subside. fuel in lowest would seen deal that XX some seeing over builds in of of the XX of add only curve retirements and the couple with next liquidity

temporal So the you great. to is know backwardation point seems your

Greg Gordon

strong much you aggressive around risk Okay. sheet and the capacity take that the therefore more final higher give your And ratings and is agencies those and to know so policy try power it get credit does question and/or into how more to prices? have then considering to you that is latitude balance finally balance less create hedge rating that coming spot does sheet the better given a management take and more are of

Joe Nigro

gas mentioned power and strength for as the more think when fact ratable given is carrying be overlay at and balance when sheet are aggressive. look it's able we're I when that position opening a in Joe. behind power The can't using Greg, of capacity that how we're are that short And you remarks with we that to in far XXXX very sheet a proxy long we as the my XXXX, the a answer we we plan do you have. and balance

regard the We that of leverage to we as the And and in the portfolio constructive power, as we is out years continue use Jim sheet what way mentioned challenge our in value going to that. ourselves continue think well. manage this we're the be allows to fair on balance relative in to to on us do

Greg Gordon

you, guys. Thank

Joe Nigro

Greg. Thanks,

Operator

Thank you, Greg.

next Your Dumoulin-Smith Julien line is from line of Julien, America. the from comes your question open. of now Bank

Julien Dumoulin-Smith

everyone. morning, good Hey,

Chris Crane

How you morning. Good are doing?

Julien Dumoulin-Smith

excellent. Good,

right, a little under increasing Obviously would relative then a further of litany well THI, but a I wanted as terms again a little So elaborate million still. earning discussion and bit there bulk is the in initial time, I I you're authorized does of level that wanted progress And of as could on clearly this. reductions to out accrued planning, with in to other programs. that that moving back of be in customers on say to the follow question of tandem utility little in bit you Illinois although more growing on over to elaborate the legislation of CapEx sort of play the if certainly smaller How the up utility $XXish activities, gather ROE, cost good obviously utilities. again your

little you've already to bit a your think elsewhere alluded utility across I system?

Chris Crane

Anne I'll take let that. Yes,

Anne Pramaggiore

Sure. Good morning, Julien. Yes, so a couple of questions. responses to your

move we'll there going million into with the blend LRP not do sitting moving to right obviously As as $XX forward, focus the we we next utilities and at of the iteration. that's and to we over it's is goal to flat-to-declining side O&M the that equation. at think look be And we're LRP about that now, forward time, but as that on certainly manage the our

to it doing we is what the utilities PHI the how at be annually got with utilities, We've us now do in rider Jersey Delaware of the reduce developing got to investment doing provision the we've DC. utilities you rates $XXX about multiyear about New reduce filing know plan the annually. close other the we're we We've we'll lag? that until and in on in shortly. to lag file thing stride to filing lag million -- sort right of doing We're make at rest looking disk ways think in helping ROEs Interim place at What we're riders. Jersey and and of at the been As Maryland, stay are filing, we're we'll the capital is that that at to that rate we're is rider mechanisms looking in we looking that to XXXX, first rider but our how we're and annually, invited IIT be and other looking New at DPL gap,

at for So provision we've commission look at that. to authority outright PECO the just got an

So forward. we'll looking that's going something at be

GAAP too, are So looking all number. trying the at that looking enough allowed the but ways currency at to also are Obviously, sort close biggest of on really those other that we're take we're lag. lags disallowances ROE looking in on to

the on going So that's ROE thinking about forward. we're how

going got question you billion that On the capital a the bit plus we've look $X at the a side, of future. for asked, year, - north that little we forward foreseeable

the got got XX:XX:XX right $X the the and modernization $XXX investment, billion utilities work about optimization the we've substation work programs continuing BG&E's that billion lot were a a work things. DaaS security close afford work, next got closer utilities. there. material We've in PECO over of and across rebuilds, got sort XX-kV program condition our period. conversions at refurbishments, voltage gas have million PHI's LRP LRP. got We've in ComEd, $X.X over to of We XX:XX:XX big that's at the

to ability a always, So give do. there's lot book-ended tight programs manage reduce affordability, why of of always we with look more customers work at to We questions that's O&M. tightly. and the those And stay usage efficiency we on energy to and

national We're of national side proportion pretty and we're on right the the our percentage when So on pretty at the of fit it always below other build of of affordability we're nicely, look you looking good, at and income. two four income national the or we're at the builds. average average utilities on a average to percentage

Julien Dumoulin-Smith

A here your I the at in appreciate outside. follow I up clarification it. quick PJM, Got as comments a know

respect Just of b, an down timing quickly out but implementing just this real related, FERC, a, you you the to can? how getting then MOPR approval going actually do with see if

Kathleen Barrón

Hi, Julien, it's Kathleen. I that can take question.

you FERC in address X expectation November timeframe. January sometime on the hearing are into the five that As the the would know, the going commission paper comments with

that is looking guidance. think well the market I is the commission aware for

to to be energy FERC. said the on need coming As the they Chris to and out forward going going know what states are policies the of make rules rules importantly changes to accommodate need new what their to clean

guidance them provide January to look that to will we So in the timeframe.

the on to the and to that the clean leave based to wish to the make the us until and your and all give important you to carbon continue the to have state procurement generation an to of community to amount for to as stakeholder looking for them tariff auction in reduction order record states carve in support front from important support them that was change put the into August going question achieve MOPR, give is the specific help ability is supporters we will that react, As their of support next [indiscernible] states options of them states. overwhelming change know, led be forward they we're To FERC goals. just to going states of the to sometime procure that not directly out but to to

Julien Dumoulin-Smith

see sometime? out of don't an the getting with clarity states respect you issue to So

Kathleen Barrón

states to and structure, states need the to able structures, that need examine use structures, they'll some obviously including may different that have existing to some examine have be different new legislation. the need Obviously and will to structures through adopt may

the be moving is in there a a where premium So need legislation quickly. for a on will there states

time Now before to also change rules make sure in that that said, to the I it's being our the that have adequate think account effort and tariff. take incumbent they into

Julien Dumoulin-Smith

Great. Thank you.

Operator

Julien. you, Thank

your next Research. Your open. the line from Wolfe is line now comes Fleishman of question Steve from Steve

Steve Fleishman

ask your will I The cetera. just customers, obviously different of states PGM relative you. investors question. in actually from have stakeholders not et Thank standpoint one you a here

to just them of not should investor see it, the else, everyone of like an proposed you think changes see good do standpoint? being from standpoint you Just or from and would an as neutral we as how shareholders, investor kind for

Chris Crane

we're No, what clarity a be market positive We've on and will going be create will forward. is rewarding this what times the allocation capital lacked create to see we operating, be where putting more definitely this much allotment capital, to as a where what I operating. and we'll [indiscernible] - units will clarity, units won't we've the on we'll able programs, clarity, be clear be think

will the we but see So, definitely shareholder. benefit a benefit to which a as to the consumer, will to benefit which a be be this the markets

Steve Fleishman

Thank Okay. you.

Operator

you, Thank Steve.

from comes question now Weinstein Credit next is line of Suisse. your line the Michael, Michael from Your open.

Michael Weinstein

taking guys. my Thanks questions. Hi, for

Chris Crane

Hey, Michael.

Michael Weinstein

Hey, two quick questions.

for or think tightening the my and plans, the going FERC for The new uncertainty of capacity business. an new if to pulling a new is this just two. a some effect that potential I'll is it taking they're is first the energy group do market uncertainty that ask going this year now public one you surrounding out surrounding is service build have also And construction right announced on and rules or just opportunity question, delaying Constellation? retail the second Is over a next start enterprise

Chris Crane

the values new how of seen get market couple on review entry, market we've First then support what comes out economics resiliency question, new years, see have builds off economics and decline what are will the to of from driven asset different we the see in to needs the sources based to in get fixed the of view. you last unless we

we'll evolution response market see made the assets or So, be for supporting investments there will barely or need the a right a to before The is economics are real now. that in. demand opening assets market basic today. operating an to be to It's come

assets Just second you you capital? return a new or on would get you when not to invest recovery your why a going are So, into can…

Michael Weinstein

Okay, understood.

Chris Crane

-- a recovery into on new assets or when you are not return your going get capital. to

Michael Weinstein

Okay.

Jim McHugh

can here. speak Hi, Jim it's question. Michael, that I to

that noted, country, customers number two roll resi in as off. there they're that with alone. as think retail and and they books of a of business serve value will we're I the and contracts I to the acquire supply the for In think looking look into this they think the so going on always you number opportunities it's lot and business. to the of for you their announcements leaving We'll top coming folks for to or market, obviously one customer you the know customer C&I know if case,

of customers I developed think and years the is we We've capable been keep existing us, solutions retaining scale pretty those easily. we've and finding space lot and products for us. have acquisitions over scale, front in platform in that residential customers of very also growth both taking acquiring new that organic through having that just a and of customers are the so C&I of opportunities and new advantage success in for space, our we'll

Michael Weinstein

very Great. much. Thank you

Operator

Thank Michael. you,

Your line your next Bank. line as Jonathan, open. Deutsche from question comes from now Arnold Jonathan the is

Jonathan Arnold

guys. morning, Good

Chris Crane

Jon. Hi,

Jonathan Arnold

the today have state there which it heard of the But fair not state then different on around you up think talking I'm curious, leading Kathleen you potentially legislation, you're Jersey? comments the pick be would the discussion play what on that you your legislation know could depending and about said way legislate Illinois is say, New that answers in state and and to you to to I think Just about.

Kathleen Barrón

among Illinois, seeing that those for I with for us legislation will legislation a a and are our country growing here resources. a across just policymakers path uses sentiment to not de-carbonizing fastest and I carbon is groups that zero all the positive but the we cheapest environmental policy changes Jonathan. agree think is rules. be there adjust that correct, need assessment in You're And your to in

energy so the the at way We able including that's to allowing procure expected directly -- so be ambition. and And to keep energy going customers for allows clean would as would clean to we FERC able capacity to same to their type ours down policy that states ahead in increase all participate states would be do per time. that to a them act clean and a goals want the expect costs extent assets go achieve to in to of be

the need structure, legislation that to So the allow there kind to know the - to flow extent state and level Illinois. here we DPU would a procurement way the the that existing at there not given this BGS. And do in look that authority procurement tariff in would capacity FERC incremental a the that puts down through of the the law you is need New you BGS know of car would be not there to in that Jersey through state's the to structure written for

why the answer I think that's on which is in. So different you're depending said I jurisdiction

Jonathan Arnold

on was great. the waiting Okay, I see just provide states. to you individual if that

sequencing thank cost remind laid how the how just Can savings, to us Could I much XXXX out the QX you guess slide you unravel So you've obviously of one on is you. sort we're trying reductions? the as that be ask you've there timed follow-up the I quick is cost expect $XXX maybe last into of up and year announced numbers the XX. how ramp to what million flowing in was Exgen terms those of

Chris Crane

Yes, that is in a numbers.

looking for we're the now page it. think Joe's I got

Joe Nigro

were flowing platform ExGen at all is reductions into our… XXX the of taken year nuclear it the constellation in The last ExGen, across

Jonathan Arnold

And the it of it of across kind timing, there is to in… the going XXXX already period Joe, until or most

Joe Nigro

XXXX, run you'll year. get rate to

Jonathan Arnold

Okay. All that. right. Thanks for

Operator

I'll to Thank the of CEO call session you, Crane, webcast. That Exelon and concludes Jonathan. answer the Corporation. of Mr. back question Chris over today's hand

Chris Crane

but we'd to glad to plus discuss for Thanks quarter IR the All Hopefully, again strong of everybody employees Thanks. get XX,XXX covered and at the soon. for you another Any everything. team. for a myself, and joining. or the questions. talk be to hold we thanks delivering them, please Exelon continue to concerns, Thanks other

Operator

all concludes today's for you participating. you. And Thank webcast. that Thank

You may now disconnect.

Exelon (EXC) 1 Nov 182018 Q3 Earnings call transcript