EXC - Earnings call transcript Q2 2019

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Operator

Good morning and welcome to 2019 Second Quarter Exelon Earnings Call. My name is Laura, and I will be facilitating the audio portion of today’s interactive broadcast. After the speakers’ remarks, there will be a question-and-answer session. [Operator Instructions]

At this time, I’d like to turn the show over to Dan Eggers, Exelon’s Senior Vice President of Corporate Finance. sir. ahead, go Please

Daniel Eggers

Executive Good of quarter and remarks. questions Leading XXXX Chris will joined to and today Laura. Chief available Nigro, joining Officer. be senior Financial the you our management our following are They're Chief President Exelon's second earnings other Crane, your and morning, you, prepared Joe thank Exelon's members everyone, by for call Officer; Exelon's Thank answer conference who call. team

from morning, Exelon's along during can other this the earnings issued presentation, the assumptions during which release We the we today's will material our estimates various are and contain of with be Investor made both and to earnings discuss release which discussed and matters, statements Relations website. based on call comments subject found that section and on of The factors forward-looking in our statements could today's and uncertainties. forward-looking differ call. risks Actual results

in measures. non-GAAP nearest our to refer non-GAAP information appendix measures. We between the GAAP for other expectations. Today's and Please refer to earnings for equivalent and management's forecasts to includes filings cause other projections, may our call. factors of differ measures minutes presentation earnings today's risk contained Exelon's today’s reconciliations Please for the release and the from results the presentation X-K and SEC and that XX factors to discussions scheduled operating adjusted references and also of

now I'll over call Chris CEO. turn the Exelon's to Crane,

Christopher Crane

and today. morning, Thanks, us Dan, and thank you everyone, joining for good

developments minutes results a updates providing three over to to I'm a turn number in few going the businesses on financial the last quarter, key the our months. I Before of positive for some spend

safety grid to our utility at DC, reliability goals, remark. filing in filed forward with In we and move improvements modernization reliability. rate our system will investments multiyear details first Pepco, and The framework to regulatory Pepco service align First, and policy necessary case. cases strategy, DC, DC those across his territories. our reflecting to rate customer the including investments continue service we Joe BGE, and ComEd, the distribution plan provides on discuss further

Second, rate. we formula includes parties ROE XX order other settlement expect settlement a for final transmission inclusive filing and adder. and rate, in XXXX. week, original filed basis agreement at the The PECO’s of PECO XX.XX% FERC ROE last Pepco in made the point FERC from XXXX a a

in sustainability and Third, sustainability we our goals report, June, performance corporate priorities. annual issued and our marking

the generator addition, than at energy admitting Air the energy. that largest In Benchmarking the that lowest the emissions XX% next is Xx the rate of a of in we the zero Emissions U.S., Also rate Exelon is producing generator. emissions clean found report have cleanest that less nation's

including in state units time continued our these Fifth, forward TMI the the the remaining price for on then, state, Fourth, in approved the on support the carbon discussions to the to carbon this plants payments Since decision carbon-free in consideration We a trading. we ZEC Jersey the path a fall. to been nuclear appreciate nuclear there unable BPU reverse placing for interest Pennsylvania legislation produced regional of including close through have done state by units. get in are the sale. for New power

the the delay to FERC’s PJM adjust and operation an finally, until last issued FERC decision rules run We changes. we are reactors which the August. would Six, are the jeopardized The the in to agree on time state to impose with the commission’s have in finalized. also capacity PJM not nuclear delay to not directing auction United the auction provides uranium policymakers’ of pleased commercial And quotas States. Administration continued decided Trump to order the week,

raised also with want turned I the to you I have results, us address recently. matters, financial Before to two

a received decline of in the questions number prices. power a from our investors steep from we on First, impact business about

you disclosures but presents us, challenge know, our for hedging The are considerable time a a decline as estimate. point in

If we to these deliberate response have the and levers we in prices thoughtful past, you persist, this and need them if up about energy markets. that can our move pull the be variety and of have make down we can we future and a decisions of if seen is

that We this challenges financial addressing plants backdrop, are plants. Against pursuing I the flow assure a not number can our space. free again cash unprofitable operate of or of you our market we many will also negative reforms

You've closed in seen us money losing the past. plants

not discipline continue reforms to if inactive. You that should are expect

is we reforms electrification, line significant in economic good and property Congress with We taxes. continue happen. in climate the States state to bottom value We'll system. birth security at preserving a goals, reliable need jobs work paying and level the this administration to to the through make level United the national meet the either increase the and market fuel nation's clean energy that The sustain if fundamental to want maintain and

we've received from from questions our Illinois about U.S. Office. the in Second, subpoena we had investors – Attorney's numerous the

provided providing cooperating the requested U.S. are by all Attorney's We or information and all fully office.

about legislation on not there Illinois a going whether number fall We efforts to of want on to legislative investigation may enacted. it simply session who and fall. energy can't is do clean we speculate in What we're this see comment this affect are know stakeholders the further

the Illinois, Illinois penetration, achieve policy, a on by Citizens the Utility the lacks be These states the Labor, many clean to XXXX. the stakeholders Jobs Clean in state clean want Coalition, include legislation Board, for XXX% Renewable energy greatly target priority will passing clean energy including the other Community. energy to progressive the stakeholders able renewable and so as behind expand

stakeholders General package benefits her or craft and with the and the the members the are legislation. to team Kathleen Board this of of legislation on legislative help the working Assembly

regulated and grow of are investment of invest the to to important the of The benefit that capital generation preserving remember we our great a on the into customers of our real a putting to communities. and our to remains effort growing business the utilities. while see focus It's majority we our the in opportunities coming continue pleat, from are value earnings bulk where

financial results Now a on GAAP a delivering year. last $X.XX range will these I'll year. On earnings we basis, we share his guidance. cover share On in to quarter at turn last X. We earned midpoint $X.XX remarks. versus good had $X.XX basis, versus $X.XX of Slide our non-GAAP the per earned per Joe drivers

of utility X, Slide mixed during quarter. to performance the Turning the operational was

safety at perform in and are levels and has focused duration with frequency decile. top or and outage Outage performance. three costs for we customer reliability the ComEd utilities operations quartile our top is We to ways the performance top our performance of continued priority to Safety performing on is safety metrics and quartile in of slipped. for culture improve four

So, of rate. on utilities side, top in performed level all customer operations our quartile for the call abandonment and service

to our improving J.D. the be are investments then the satisfaction satisfaction the scores residential reliability our making improve customers is experience. Our to customer Power ratings. This electrical could of recent and we customer due with relationship and seen in customer

ranked the BGE the and first performance mid to utility their our segment improved performance ever decile – quartile. the first ComEd East Large maintained rankings the region, ranking second east PECO, We in or rankings. and and ComEd Power excellent be in index. achieve in and first. quartile mid-size to satisfaction region PECO BGE ranked a in Delmarva the first improved and J.D. top maintained customer its

and - the plan well XX.X XX.X% capacity quarter Exelon of perform zero factor and gas Generation the match terawatts and capture produced of the electricity of emission was was dispatch And during XX% our had exceeding with solar XX%. of nuclear on plan Hydro a hours plan XX.X%. the power weaker and wind

Now over to Joe. I'll turn it

Joseph Nigro

Thank at and the disclosures. including financial second our utilities I'll XX-month ROEs good result, you, morning, our and cover our Chris, quarterly trailing Today, everyone. updates, quarter hedge

which Slide on holding is basis $X.XX than area timing to share. the on reverse BGE modestly plan due PECO in will course net partially Utility Philadelphia per earned by guidance a higher per O&M per offset $X.XX at weather expected the Turning expenses. share. over $X.XX about combined was itself of impacting our of utilities year. earnings share of our company which were a range milder We per to a of midpoint ComEd, and share to than This at share $X.XX PECO, non-GAAP X. the $X.XX delivered by per largely $X.XX and the Exelon GAAP basis,

our partially fleet performance trust of was result This per our load plan. constellation of due a a earned gains O&M, in These and extended funds. ExGen that decommissioning share factors favorable weather mild outage of Generation behind any strong offset by our volumes nuclear lower $X.XX to realized Salem. were

guidance the our and $X third reaffirming to $X.XX are $X.XX to earnings of for full-year adjusted quarter share operating We per share. per for we are $X.XX providing guidance guidance,

last relative This PHI weather second partially share was completed year. unfavorable higher to less earnings earnings of of the growth higher ComEd walk. and The associated quarter-over-quarter of our X, second lower increases driven than in was Slide quarter by the compared This second holdco with by year rate up per we share per quarter Utilities distribution rate revenues this Exelon primarily the On show transmission is with per at at quarter $X.XX XXXX. and $X.XX share $X.XX offset were XXXX. PECO.

York increase ZEC per was from and by ZEC by compared decrease offset program. of prices, ExGen with partially New realized share Jersey’s prices earnings last $X.XX the The were lower down higher energy year. driven revenue the started New ZEC in

Slide to X. Moving

Our PHI. across from remain utility the by utilities. DC had we Maryland some trailing across to months, earned utility exceed PHI Pepco offset ACE, the for settlement ROE quarter constructive rate and ROEs last to case The distribution targets the strong Pepco equity continue our XX% X% infusions X.X% compared and at help and consolidated ROE to we earned XX

XX.X% quarter. earned maintained in Exelon the Legacy strong Utilities a ROEs

Importantly utility PHI consolidated sustaining remain at the by ROEs We other growth on our our targets earnings XX.X%. at our our utilities focused maintaining meeting strong the were and utilities. performance earned ROEs across

a revenues included the and increase the BGE May of On $X.X need gas ongoing driven electric XX.X%. The for in $XXX respectively, requested based primarily distribution and a by system. increase $XX billion to and The on of almost modernize rate and rate gas XX. maintain million and Slide capital ROE million for to electric based is investments revenues. requested increase filed electric combined distribution gas and million rate for XX, $XX Turning

XXXX Columbia, May liability electrical three surcharges the in XXXX and XX, the period. revenues plan time the We On in the we the It currently quarter. also requesting into rates base. capital recover a multi-year reflects increase of over moving made during of via planned to period a fourth XXXX revenue investments filed an to District over rate million Pepco base investments years order into receive expect investments to recovered being in stride and $XX.X

commission that the and necessary The us to request reliability its customers. goals, support and system to modernize provides to energy the and to framework sustain allow continue with enable needed Pepco programs have investments first by the and satisfaction energy align tools goals among improved policy the our enhanced in quartile to district's resulted investments make grid, performance, the set

good Mechanisms and interconnection service The PJMs multi-year multi-year plan performance incentives provides on system underperformance. traditional of distributed of rate to with the costs The five with approach includes focused costs. a inclusion to with customer based by The the Incentive penalize filing the or or performance Performance utility plan customers resources. reliability, strengthen provide reduces recover making PJMs designed cases energy multi-year to and plan customers rape rate or caused administrative can frequent predictability general

by Pepco issued Law PSC Maryland's the his which July current is X.X% higher at than Chief Pepco distribution On $XX.X XX. and August points proposed basis rate Maryland revenue ROE. order in case. increase Chief the the Judge A million is in X, order ROE, allowed recommended XX The Maryland Utility final by expected Judge Public

be XX December Slide annual found appendix. on formula Finally, ComEd in to be to year. expected filing decided More these cases is the rate XX rate this of can update details in on

Turning XX. to Slide

benefit quarter We the utilities our are capital deployment we capital the to $X.X during robust our customers. and of of the invested program continuing at second billion

our million year. plan capital billion $X.X to expect exceed $XXX by in We this

our had weather, storm-related favorable so we some able plus gas We investments advantage BG&E, additional in to have fund take the business been work. at of

As increasing reliability mentioned, investments our which Chris and results are in resiliency, these a customer experience. improving infrastructure, better

that projects bring two these about in and and Northern efforts customers operations DC Illinois. our to will talk to like of I'd part are improved Today

Transportation PLUG of project District's $XXX DC and A power first District The partnership of of Columbia more project the Undergrounding million between a vulnerable lines. focused PLUG. on multi-year DC distribution underground placements or the initiative is Department Pepco is

the underground during of phase. duration The resilient electric of placement underground of will distribution Over during and the XX outages. the initiative, electric course weather these where frequency lines to up system feeders severe make reducing with replaced the first six the events, more

The installed of indoor Itasca the million three XX and switchgear circuit Substation, XXXkV featured terminal new ComEd second power $XX building, is this an at distribution transformers equipment, breakers. expansion project including the associated projects medium

substation expanded the several centers Development data provides technology The new our three customers in with discussions XX,XXX Illinois. after ComEd's investment bring additional airport. Itasca/Elk power Greater years of to homes. equivalent of Grove support jobs Economic the corridor near efforts capacity to continuing of O'Hare team, area Northern in will It These Chicago part the in chose

margin On strategy Slide as company. our XX, hedging updates and a gross current we provide generation

about a curves Before to forward during want the gross the in second in particularly discussing power minute the spend quarter, talking drop illiquid margin the update, I'd June.

declined XXXX and in in Prices XXXX PJM sharpen.

approximately nearly and in XXXX. close prices XX% $X XX% megawatt XXXX XXXX fell to prices power PJM Hub hour than respectively. around-the-clock more megawatt $X.XX or West $X.XX and have XX% I approximately – hour per hour $X or per in XXXX megawatt XX% in approximately to Now per fell and

Jim but summer the of before. combination then at prices, cascaded following. high weighed we gas Lower which can in forward seen reflected a have we the Q&A, start during think prices, declines cover on mild these level thing crop some to to out a which detailed natural curve, more

plants of participants last support sold to anticipation the over changes based put likely targeted prices. including to years Some newbuild value retirement plants economic market the likely hedging looking down options activity on power driving retire written for few revenue less in of or and selling market

XXXX Despite environment. the update. gross last margin total mild to our and low is price weather flat

During business in business. the quarter, power and in million we executed $XXX new non-power $XX million

the of our for load and hedged well-balanced highly year on rest to matching are the We Generation strategy.

XXXX Hub, primarily New $XXX Open gross and million respectively is due NiHub. York XXXX prices million margin Zone at respectable. and A to lower and $XXX million total million margin down declined West $XXX In our $XXX gross PJM and energy PJM

Mark-to-market we're of $XXX million up million $XXX and hedges respectively.

our of declines. impact the As position mitigated, hedge price part the of

of business million $XX XXXX. in exited also power XXXX We new and both

continue We during and our hedges ratable of remain protecting for added than quarter. our behind ratable across a the amount to regions less hedging

the XXXX hedges. ended to to gross XX% We in quarter considering behind XX% X% ratable commodity and when XXXX behind in XX%

positive to We to in a hold Our length our sheet. margin Generation load providing the a advantage, strategy to vehicle this matching Generation and competitive strategy open with output a contributing comfortable market continued given bring market manner. strength remain remains balance disciplined the of our

a XXXX our consolidated we onto moving our committed Even window Slide at strong to XX credit debt grade levers, available, Finally, maintaining balance within June voted we the sheet our confident marks in will have given in we disclosure investment XX. are that pricing We to metrics ratings. XXXX. remained that after stay

corporate ranges consolidated above Our above metrics targeted credit S&P thresholds. our remain and meaningfully

well are ExGen, ahead of of we at to debt Looking Xx. EBITDA target our

and basis. on debt expect Xx to at a we to EBITDA X.Xx XXXX, For be recourse

closing will the to call I turn his that, Chris for back remarks. now With

Christopher Crane

Joe. Thanks

clean XX, current are action on headwinds power the energy. things effectively, them or markets more accomplishing our the necessary. policies creating we we this are capital In advocating thoughtful head We're recognize utilities $X for industry-leading including year, meet to us. that committed maintaining meantime, for prepared to the Slide operations, if to financial our do take billion across and of Turning we support than and commitments in leading deploying thorough

to remains value proposition. we're one the and strategy Our right committed our

a earnings to X% targeting XXXX. We X.X% grow the X% growth a growth in utilities continued rate-based through to

growing that Genco equity continue cash that one use needs the and of free paydown to dividend. part the utilities We debt the incremental fund from to flow

strategy optimize pair to to load by fleet, continue seeking – it maximizing ExGen compensation to assets generation our where will we're value reduction and match our closing uneconomic the or debt plants of the value sense like Generation selling the and business doing zero-emitting TMI We accelerating plans generation through makes through constellation. with

the grade proposition remain annually our strategy our grow We of businesses XXXX. and We underpinning value your dividend strong is value to will X% investment through ongoing The optimizing of and credit sustain Exelon. effective. support committed will we this earning metrics

Operator, call to now up questions. open the we can

Operator

comes ISI. Greg Evercore Gordon [Operator Instructions] question of Your from first line of the

Gregory Gordon

Hey, morning. good

Christopher Crane

Hey, Greg.

Gregory Gordon

So that don't the two questions. I question or one I'm you high anyway. maybe comfortable in you're to going weed’s maybe one too level anything delving want ask then And and to not but into, deeply

track credit beginning cash You targets mentioned to generate flow the on the concept full of have levers for free stay year the us to at that on the and despite curves. forward in you metric that laid of the out order fall the you

won’t bad you the how covered a that is about look, this company good us can the in some time ever in detail but before, power stock and little been those this And cash it please? the long aren't nothing should or and bit in talked are time. looks as situation as as I've of positive. persist? run long for a you more And moment, a We've flow options you What plants for covered tell

Christopher Crane

let I'll list as on meeting got quite watch what out laid it, now. the We've of the been right we markets. a Joe Yes. through bit it about go we've talking

So Joe?

Joseph Nigro

Greg. morning, one them. Greg, you Yes. Good mentioned of

think economics. run we're in that proven not to financial our through are discipline power our with going I in we've perpetuity plants time that

our that that to the and efficiencies business drive us business across as do at services costs generation company. business ways Obviously, we Exelon as continue well would and would the So at our be look to streamline lever. and that you've in first continue would to our seen be continue to

obviously to a we small growth We the ExGen but at that. then at sales. on We were have look would of disposal, necessary, our financing. that At our alternative a in amount at at asset and business. forms if take time, have capital hard look look I there And speculate won't do what this opportunity of

saying. financing, project about think they're know, you When you

it, look a So you is over time when our I this financials. estimate at think point in

As disclosure the I if these period credit would and if down. continued, you like said, we've our we And look this to or said; up the we've had with levers. to, we out. allocate We're comfortable, the seen move we ways laid at metrics through in continue markets capital

Gregory Gordon

with to you're units cognizant cognizant the very I'm large And account those Yes, plants in those PJM certain broad the plants. whether a coalition energy Omnibus an we the control as and are takes back get having Can you nuclear to dialogue around think session state that regard some strategy of that into need state other market of reforms I'm and veto you the that of how implications of constituencies Illinois. that with state in and that that tell of policymakers also understand the us lack in necessarily actions legislators and take the market? the contemplates into is, the

Christopher Crane

harm needs do want get in be state, economic administration prepared will an with set and XXX% she's let that As communications working have the the present not situation you balance who with able the the coalition. to them to for about election to significant drive way that Kathleen and the we legislative that a out to to we can imagine, cleaned that I'll by describe with the on coalition? are and the talk the you to But goals customers. governor the does our after XXXX

Kathleen Barrón

focused getting Greg. legislation in energy on morning, Illinois. are Good are that clean a number enacted stakeholders Yes. very There of

York, set just As across it's California, have states already energy New not clean you the a the targets. like And know, it's country. number states across country of XXX%

emphasis already sure a has And is aggressive in which lot state target. on country, Illinois, the has an cleanest equally so making Illinois of the that

the players. targets have the in focused set make version been question, renewable energy folks sure So justice the in on have of heavily focusing clean those have environmental previously. on developers very the goals addressing that on are community they that we that The environmental can flaws prior achieve states to

having as renewable clean ensuring But on heavily for also has a been to in in question capacity energy. to advocate this the well policy of incentivize state if because new as said, targets pay ambitious twice The going much consumer state. I very set more we're focused the for the development and forefront, is that

finally our of count for towards what on can community, energy our clean obligations things PJM. focused We both these new capacity And labor for very preservation the resources. mean construction policies then and

is focusing So this the as to is of this not that package the number we're important but allow to that's resources if on are that in together. done. can't that's foundational correlation the putting getting mentioned why communicate capacity come FRP going we Chris and these parties state, together There to end a for who be the count the it's possible – to the will help message policy

Gregory Gordon

update decline on business? the question years Thanks. final moved the volumes go. or that hedges how new And either into million or that a $XX lower There out my was sales because significantly you the retail margins actually, business our lower question numbers mark-to-market, was and in Is assuming on are executed Joe. to because you

James McHugh

Hi That now moved Greg. That's This the hedges. that of Jim into is executed mark-to-market Yes. is executed. just has McHugh. business

when that last all from that those two quarter, So lines net executed be numbers flat now. just would – it's together, you

Gregory Gordon

Thank you. Okay.

Operator

of Research. comes of question next Wolfe the Steve line Your from Fleishman

is line open. Your

Steven Fleishman

to the -ups both Yes, got Greg's question. I thanks.

just, in about if flavor could generally stay how you've a lot money offset much and the are just hey, be? know plants, certain past losing So shut talked the potential what shut prices plants if I all, potential Can have on we first offsets. low, of certain that this when and or plants fallen on give there prices actually any times you

Christopher Crane

the of in shut market If on plants the we you're of don't prices, the calculate being uneconomic market. down effect effect asking

effect asking got be flow, to cash we numbers negative haven't removing published now. the about those you're free If of the right

the the and financially market the trying evaluate, now, energy that and future Dresden, we've at, Byron, challenged. looking right are market in unit we're persists if capacity said Braidwood unit this aggregate, that publicly we're something then by to and It's challenge can a in between but you as see

to think PJM and fixing we've coalition with market hard state clear fair still we should and very for in you support, the on base-load the make some of a that it correct, that to capacity good got do path scarcity with reforms FERC level market. at a that at that working continue Now are

So, the and of challenges can into see future that you look sites, but short the they those three those happening, have. things

Steven Fleishman

Okay. not that including and point take forwards And we're then plants I losses guess just the if would current taking and down using we're just sit that there it that you basically is on forever.

Christopher Crane

Right.

Joseph Nigro

Correct.

Christopher Crane

That's right.

Steven Fleishman

Okay.

Joseph Nigro

Either down. we have a clear path units shut to securing will them or be the

We around will free earnings. years not damage flow the balance for negative cash or negative with sheet, sitting

Steven Fleishman

just – coalition, is see any Okay. kind suddenly came Or proposal? of public we'll is kind of any ago of the it to have and or few able just subpoena. process be to there there legislative continued going those this from Illinois these And talks? in then specific to talks question since you possible a be the just any weeks out if kind news been that Has can color about give

Joseph Nigro

was started of activity and trying of level that stakeholder in craft legislature. the no a of of intensity impact educate activity jury by that the on and advancing regularly, activity that we're a members the grand on months by doing the the continued unchanged. [indiscernible] for Kathleen clean energy Steve, we're We're among coalition has remains the and the to number subpoenas Chris referenced regard. meeting and legislation And or the of the package had outreach, dependency

Steven Fleishman

you. Thank Okay.

Operator

of next Chris the question line of Turner from JPMorgan. Your comes

is line open. Your

Christopher Turner

renewal, franchise could that if I just of was now. with that help Good you kind kind of of when us you're in thinking about Chicago, some et agreement terms wondering cetera expires, the morning. and your of right how background

Ann Berzin

as And the Ann. city is indication give they well. The year Hi, to XXXX. this renegotiate start. I'll needs of the end expiration the franchise by to the date guesses us maintain agreement. of end basically or want the December terminate Well, quote as to whether here Joe status But is make an to

have around we we'll by them, in the So to year, started but that. discussions discussions of with end know we're the

We vulnerable understand – to clean priorities priorities the I Chicago. more concerned ours. status in populations, and in both, city our But aligned of are think much what elements about are those particular forward all utilities. right their there, the going our want in of are are terms very are They focus with see those They energy now. at And all pricing. strong that's of strategic

Joseph Nigro

we've some during discussions to in these and the structured mayor. for been negotiations at We've forward. detail had negotiations exchange time. those those the transition new going Yes. point. in of have about, process And said, We slowdown the just have But negotiations how agreement Ann to supplement terms the a be what this would full in resumed

Christopher Turner

Okay. And of compensated that and right now is you there. be to need assets would changed your set anything if

Joseph Nigro

But the focus Yes, I'm done. that's again, getting the here franchise is correct. agreement

will hefty about, Our path going be know, down. expectation is think realistically don't is it as extent very we're a price talked to Ann that's and that Dan will that I with fully what municipalization negotiated come and to the will a address you go the tag issues

Christopher Turner

XXXX, you now right overall? just little least about then back bit the might and think here quarter more for expected. than O&M And modeling had of in I I half there, a we guess thinking fourth are the How quarter guidance third you Okay. headwind was put what balance at out which less I guess the look the like

Joseph Nigro

heard obviously third morning, it’s quarter my We and That's of you you the for You our guidance. earnings say that in heard me we're inclusive say good – gave with $X we my $X.XX. Joe, the to those range of numbers. reaffirmed comfortable remarks guidance, me in prepared

Christopher Turner

for think third fourth the help to quarter Anything about in Okay. could that or might non-recurring be one-time of or that you year-over-year? kind nature

Joseph Nigro

drivers the you as volumes continued talked we lower load talked of by unfavorable in about. the sits some to were weather about saw when mean second constellation the I and we Hi. the driven that Jim quarter

and to business continue execute with continue at and we We our utility business to constellation accordingly manage comfortable the guidance. new we're full-year

Christopher Turner

Okay, Joe. great. Thanks

Operator

comes next Suisse. Credit from of line question Your Michael the Weinstein from

Your line is open.

Michael Weinstein

ExGen assume from operating for retirement guidance. the just types What's plants years? I billion on What I of guess plants? follow-up that over going of where does guys. number? $X.X quick billion might uneconomic built go one to The the terms of guidance into or Generation flow those and $X.X be to in four Hi, next cash is that

Joseph Nigro

It's morning, Michael. Good Joe.

flow the those. when when plants look and Illinois there's said, power challenges prices are he you those in to Chris Braidwood forecast. mentioned, just running with continue And these Dresden, plants As that obviously Byron, you in mentioned financially the those extent, then cash at three inclusive

we won't we as economically. said that said continue our of from haven't We with but forecast XXXX coming free numbers still working run that flow $X.X out specifically, call to for perpetuity that, we're remarks, number. And quarter on generation in I provided off we XXXX my to billion Having a cash on in will. the fourth put plants those

Michael Weinstein

mean I are? with where say it upside that there's be forward point this they either So way to at accurate would the curves

Christopher Crane

side you We’ll showing the our at the call because getting of update you give we're fourth and story mark-to-market. provide, quarter we one an like the you're numbers obviously, here in

this are levers and back in and margin call price the disclosures, can fourth to at our gross what disposal. what their quarter. the drops second point. the in we've but I you at Those disclosures discussed saw reflected they disclosed modeled quarter we've change our quarter by on driven see other quarter-over-quarter our You that's we also go this

Michael Weinstein

great. Thanks. Okay,

Operator

Citigroup. comes the of from question last Praful Mehta line Your of

is open. line Your

Praful Mehta

Hi much. guys. so Thanks

very was more rationalization you perspective, the this you've a it the But PJM markets, market like or the about So bit stays other maybe if about. way, going? PJM unsustainable. understand from regulation. little in helpful it power Because shutting just plants side to talked clearly, down it's do other form also happening to following get that see do other players of levers a talked up on Where see you just as you on

understand would wanted So you market to how the thought play out?

James McHugh

this start. Praful, Yes. Jim McHugh. is I'll

June as up think I already market's thing, about and on market the highlight the the XX one want Nighthawk the pricing. of this Joe's $X quarter from up the $X.XX the seen curve of perspective, point to a end markets forward all, first West about a since I Hub time. We've moved in the move point since to

seen in we've So so pickup prices a far.

I reform quarters willing enacted. to talked start think several is the pricing we've the over what on; be we're working on when Fast comes last side. to market it

bit scarcity on There in now long of is the run ORDC the PJM. but price a curve little then reserves relaxation. done Those formation Entergy pricing some being it's priority work lower PJM, and are and the and for the some baseload focus right And things. on in the

I as or happening five new fundamental four we both course next retirements of our and years over and think business analysis. build natural the have

run. carbon I be long think, So long the reforms a the have would a be around there continue in thing and formation bit in in and large come something but of be market if the solution by to then are with up that, would pricing able the That run, price will all another little market to working we're we on. would

that's XX, XX, two trading me Cal Nile thing prices two that's look about Cal these where Quarter $XX.XX mild very, cleared just which down at very to XX, Cal $XX quarter where interesting we've seen one weather. just The with cleared. you the area, that in

those trading already where It's I into think very slightly in us insight we weeks. traded. just to why quarter responded a think and the entire curve is mild forward me curve the So have couple some interesting gives last an prices it of on the higher note

Praful Mehta

one color. more strategic. helpful maybe just And super follow-up That's

maybe Do retail Is or these acquire do expand helpful more that that see on that you work? you mean think would to be more businesses? think does look you would If that you side the to the something retail profiles, business? retail

James McHugh

Yes.

retail perspective, well. are share, we're holding and our our customer So our retail I customer wholesale performed a load businesses strong win wholesale auctions doing our margins pretty well. are rates facing and facing hanging business businesses The market our are in, and from origination think have

I now for really think having while grown in as expanding best and the we've as what class talked about platform. it, far acquisitions a is

those our we a proposition of So there we just of and for will best opportunities to look book books it them. can take look We'll retail at certainly in would that into if class a love platform business, absorb acquire is take there we business. and hard value

Praful Mehta

helpful. guys. All right. Really you, Thank

Operator

go call sir. over like would Crane. Chris the back speaker turn I ahead, to to Please

Christopher Crane

and With the all shareholders. track today. call close communities, for our remain to on up We that, you participating our Thank commitments in customers, to meet call. we'll the

Operator

This concludes conference today's call.

all now You disconnect. may

Exelon (EXC) 1 Aug 192019 Q2 Earnings call transcript