- Earnings call transcript Q3 2022

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

Operator

Good day and thank you for standing by. Welcome to the Q3 2022 Exelon Corporation Earnings Conference Call. At this time all participants are in a listen-only mode. After the speakers’ presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today’s conference is being recorded. like Mr. the now your over would today, speaker I to conference hand to And Vice of Plenge, Andy President Investor Relations. Sir, please go ahead.

Andy Plenge

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

Chris Crane

to Andy, Thanks, and everybody. good morning

to We’re with this glad morning. have you us

know, due plan you my Exelon year quarter. end health – we yesterday, reasons. to the at update you after As addressing from financial some end of the the as that at of of reviewing I know operational retirement call on the the the and all announced

Let the to Calvin Operating us my on me retirement. operating a Chief of been Board to development with first, Butler, platform. industry-leading a Exelon turn he though, President CEO part announcement. member the began our our Since of President become that comment, aspects the Calvin and and and through, Officer the of key has

and he leadership During time Exelon customer his industry-leading to to operating role, and BGE, became is companies increase that. of continue significantly In diversity after that operational made satisfaction management the excellence. roles responsibility. has well Corporation. most and Vice has Jeanne of strong the nuclear division. ComEd was CFO the background positions for various experienced XX a expanded with. She former for recently, across best-in-class, which push very with we’re align finance Exelon in been at drive the pleased Exelon he and for very the corporate now CFO, Utilities and Jeanne at years CEO model Jeanne with Senior President

$X.XX also financial and Nigro per of Joe GAAP quarter. executing Q&A performance and I $X.XX earnings the for solid investments per behalf earnings results. reported strong will would Jeanne like hear adjusted Calvin thank to for of The You’ll our share his launching on work we’re report making to of of the drive are to and spin. customers share. new Exelon continue update. both Happy and operations call. We momentarily operating me the from for the Jeanne And and the join the financial successfully for

We are will and midpoint color more that. of by Jeanne reaffirming range narrowing it provide the on $X.XX. our

more The next for settlements I’ll gas execute and operational which levels, in on Delmarva about Pennsylvania outcome high the quarter. commission this rates continue slide. on at Delaware construction and situation We We improve to speak [indiscernible]. rate had case a

also on multi-year the the first a Power key plan. settlement for filing We Delmarva reached with for settlement elements multiyear first

a We milestone expect performance rate and a multiyear final received December. a and on it gives construct, in making the on us final the That’s good ComEd plan foundation order In transition its September. build big order the mechanisms the in they’re Illinois, tracking to to upon. distribution

a of a XXXX allows. through a rate and with four-year a in our multiyear distribution choosing We rate our for multiyear and file forward-looking appreciate January plan customers transparency we is it As XXXX, the future beginning plan year right the test intend in structure January the predictability X, continuing choice that result, to end shareholders. the planning over

order case filed rate be with of final time our will Our multiyear by plant end the same at the as integrated XXXX. grid the

are lot this been good has operational year of outlook there year. investors very financial and close a our on We year. and this to track focused on know we’re progress strong So a

First, Act. I’ll We’ve update you on for transparency. always the strived Inflation Reduction

bill, quarter, result which last we’re the industry about the remain the impact. a XX, outcome potential we’ve we mitigates as optimistic will shortly. Regardless the been implement bit target impact to or tax growth more the to materially we Treasury higher XX cash Treasury, a of of the communicated Since of passing and guidelines working X% IRA. our reaffirming So annual that the I’ll annual talk that from way in with X%

higher of through mitigated the have the event In addition impact of growth emphasized to in impact is we our not potential reaffirming treasury Even regulations. the cash tax. the commitment,

beyond not the needs us to will We billion through equity original higher expect additional issue require that cash XXXX. $X commitment

as historic the We the this we legislation is beneficial to energy we this of side, forward positive year. the build customers as On that lead Inflation industry Act industry the the takes past very advantage transition. an for look moment our will Reduction

electrification, this and production accessible affordable and support the more already support We year make to and were see is renewables, Our distribution, grid Jobs investments customers. to Infrastructure over $XXX including significant more [indiscernible] electric of in for jurisdictions infrastructure and terms billion make. next driving will related for federal opportunities our ready increased alternative Legislation funding enacted demand alongside than XX vehicles. generate clean the connect Act the years, for provide energy we for fuel which

earnings to growth of about to X.X% our customers I’d to our expect four outlook. on communities our that of you in annual supports long-term Analyst rate. over drive will serve we years, the talk Finally, rate $XX like We told growth invest capital an million next Day, growth which the

of cases, range. our XXXX growth will X% see be lower annualized not is that maybe is path have above linear, years that achieving the We’ll covers more Jeanne the clearly range largely that other but when X% As to focus, target cadence Slide you than X. to that some rape we our know because that years of many commitment through and

On the operational highlights, Slide X.

everything quartile frequency high safety, their all and again at PECO over Reliability ComEd notch, continue which affordability, Excuse ensure record for underpins and performance reliability of achieved and do. they to remains me. outage at and levels. outage best on remains We performance. receive jurisdictions are at clean, top duration our customers top we

had years. has XXXX, in a a than the third Reliability quarter when most XX% ComEd out it improvements through smart has set better an service reliable delivered is ever grid ComEd of XXXX. fact, on the XXX In over

of few my years. megawatts investment a greatly annual data A in customers grid seen on increased Our center testament growth last the stuff. in page I have third average in demand to – of prior benefited of The BGE approximately as Through about testament quarter the reliability ahead times in amount earlier from a have got nine increases. the the data the ComEd the the has reliability, aggregated each the additions center ComEd district to year, reliability and decade. new the XXX the

but safety continue the ComEd decile performance, that level other maintains utilities For outside of three [indiscernible]. fall to top

are an utility program safety lessons dedicated We three ComEd, with – to training to supervisors expect all the developed third on only incident, for satisfaction there’s customer and to and chance it educate practices help all the intense BGE, has standards top Through further PECO together, remain of in me, safety helps. quarter performance. expectation, Each utilities is the participating utilities. which going quartile implementing minimize personalized excuse through of learned highest quarters our performance and set which

remain top three in across we our response Lastly, performance decile odor gas utilities.

PHI one For less to the a all in responded gas third quarter in row, hour. reports odor than

Let me to financial provide the Jeanne turn update. to

Jeanne Jones

$X.XX third morning Chris trajectory earnings as then implications clarity good rate Today and And an our provide activity, case you, everyone. Thank quarter growth adjusted results, sheet our XXXX on upcoming further cover per in will completed balance noted, potential per the and Chris. of X, Slide quarter we corporate third Exelon’s the of third tax. continuing in earned show operating versus quarter-over-quarter earnings. minimum operations the XXXX. of our share $X.XX quarter On share

of year a operations. paid costs, an As corporate overhead roles costs and are certain be indicative to presented prior separation. adjustments previously our corporate generation reminder, overhead allocated are post by part These quarter for they as $X.XX Exelon’s per to required share for the accounting not discontinued third and reflects that of continuing operations by were generation

ROE, in ComEd’s was XXX. The on are cases incremental the rate, distribution interest at from by Excluding completed driven associated of higher of summer storm results impact distribution and debt higher and third this the share treasury ComEd. drivers expense relative $X.XX and primarily The was timing the quarter than of higher higher on per partially This Exelon $X.XX by absence company. earnings on with prior Year-to-date, quarter at were third XXXX. growth offset adjustment, year results the distribution holding detailed to and third XXXX. amortization quarter rates activity rate rates investments Appendix formula depreciation

costs year and the the to year Analyst earnings treasury with $X.XX $X.XX share at guidance in about XX% At ROE, by the XX% benefits businesses Delivering EPS share revised financing we share. XX% and per to Turning puts of continued the earn the at to the storms per told $X.XX of distribution absence management. XXXX of items corporate the end year-to-date quarter, partially third XX% midpoint the to the year, and expected earnings to $X.XX of by third higher of our narrowing first quarter. are which the range $X.XX of our slightly you on along or quarter. full disciplined first approach us our in quarter, come ahead XX% offset occurred one-time to the second of the Day, we our range, per quarter, in considers These in impact of guidance earnings higher cost are full from we full

commitments guidance range revised financial our be our on year-end. are delivering are and at within we will We confident

X. Slide to Moving

has quarter at point to Looking of improved increase with the to is the on third our X% earnings in the from a equity ROE half range. is our basis, basis year. trailing of offset half consolidated are timing from as expectations year the last utility as by line targeted of our within XX% The in quarter growth second returns X.X% XX-month XX and the the back of infusions first

expect remain on previous discussed ROE at As target XX% our to range we a in to trailing year-end. X% XX-month calls,

utilities, Our the sustain of customers. at focus to continues on our behalf make investment be delivering the we earned returns strong which

Turning were some our this rate quarter. developments X. in There case to Slide open important proceedings distribution

into multi-year file XXXX to a momentum jurisdictions when builds execution successful expect several plans. Our

for Power distribution was tracker Let of million into base settlement October revenues system settlement XX, developments Public which ROE Delaware in the transfer gas includes XXXX agreement rates, increase rate distribution cases. an highlighting Delmarva case. in for distribution X.X%. modification Commission On me Service the charge of by improvement distribution $X.X rate without rates, The key the the million a approved capital its of $XX.X from begin reflecting

As Power law, XX, allowable subject permitted August rates to full implemented by on refund. Delaware Delmarva

issued XX, January the the October order $XX.X for Commission X, GAAP approving annual on Utility million revenues distribution natural gas petition PECO’s joint Additionally, settlement an XXXX. beginning including Pennsylvania in an rate case of Public increase

this multi-year for Service its a pending a million Public on cases Commission, majority future Delmarva including Notably, electric in of rate ease Power distribution with reach benefits XXXX at our XXXX, key also testament to including of rate revenue into the the regulatory design, this is many reflecting of ability rate of a burden investments through Maryland beginning plan first increase final two elements the an ROE reached predictability, We The and transparency customer utilities. cumulative have of system orders. X.X%. of progressive $XX.X settlement settlement

We from expect commission final by a order the year-end.

XX Slides rate order found the Lastly, XXXX distribution expect ComEd’s formulary cases we XX quarter. on details on the More final a appendix. update on through final be can the in fourth of

have and the Throughout filings. working have in at order Details XX, tracking January of XXXX. proceeding. plus for shared includes Building state multi-year in order metrics modernized Pepco second XXXX. customer total the paves or improve system the with Turning BGE plan new and XXXX, served has multi-year investments across well. metrics in seven to XX for DC basis our the its the communities with performance in necessary minus continues filing Commission effective The we first performance the metrics the prepare a fourth multi-year at rate and half stakeholders of at Coast our way that for and ComEd filing call. on of Commerce distribution Pepco Illinois which will XXXX value rate Maryland on ComEd to XXXX. to enabled to the filing anticipate January filing reliability plans, momentum, our XXXX issued plan goals first jurisdictions quarter on XXXX ComEd’s be quarter, quarter first service. the The in plans points. September this been rate and East customers a On environmental performance approving They’ve supported second of

expected we of multi-year to quarter filing anticipate plan in first BGE the the Additionally, first with reconciliation XXXX. file

throughout is multi-year filed helps plan plan variances first reconciliation us of multi-year early the XXXX. an we that costs milestone as in important Our part the from

multi-year implemented plans. process this any variances opportunity also cost first future process provide will will our in Importantly, be understand to how potential reconciliation the for

their see, transparency jurisdictions constructive, chemical. we’ll and communities year, the we our As provide and on will our be plans our energy and and working you are busy are stakeholders. continue will front, we excited and but stability support regulatory the the regulators, for speeds multi-year Relationships be together next to customers across can with clean to

a affordability only align support and to pace plans legislation and Chris The the on of for federal As noted, great the economy. this that multi-year bolsters of provide energy year’s transformation the of our progress the structure transformation.

of base by the nearly our XXX% of As growth expect mechanisms, planning we by our a multi-year covered period. as recovery plan be reminder, the rate alternative end such will

Slide X. to Moving

through making earnings confident we XX% growth that $XX are behalf growth from As our base in Chris rate are of customers of billion of described, investments result annualized we will expected on and XXXX XXXX. X.X%

driven customers. due invest in model noted to the variability our of rate does of returns generates Pennsylvania, that which continued some support have We by business include the for timing year-over-year earnings strong largely our the cases, growth that to need benefit

ComEd, earnings provide on exposed In blocks more addition, our transition the the to a with information and at on set treasury for variability with equity. XXXX attempted XXXX investors building return to XX-year of additional making before We’ve to the growth traditionally trajectory. the year-over-year we’re rate

Day in XXXX implied at from defined as through X% As gray share chart, of $X.XX XXXX. per represent disclosed the the Analyst CAGR pass arrows guidance the X% to mid-point

year-over-year growth expected its to starting percentages each XX-year have rate. the range drivers, already ComEd year year. exposure the XX% the XXXX, Getting illustrates [indiscernible] mentioned relative growth we prior to to the in While with from the treasury

to be for help a to hard Although its we date. between normal technology modestly in weather scale. some mechanism processes the will offset and we distribution earnings challenges inflation, DC XXXX expected current and is factor decoupled GAAP positively leveraging upside improvement rate of costs and per which we market under as size recovery its and monitor year in in initiatives, through rate assuming and cases. result, financing which have higher establish are productivity system normalization transmission a will our for good plan. will and imply year be from and new companies, investments Maryland remains benefiting PECO’s its need see fully weather. and to rates, all precedent store investments provides recovery the tracker, also earnings impact are to on working PECO’s Reconciliation multi-year ROE, forward Like we a charge distribution through cost should cycle lower distribution be to by year-over-year existing Weather People in impacted two made future we’ll from by exposed which face XXXX, the move. in electric to should

costs we continue see rate well as the at from at the separation the Lastly, refinance utilities to our will needs increased investment corporate, floating rates. we as higher current remaining financing of our

As costs. reduce we corporate do we utilities, our to have continue center to challenge the

range of lower next phase of as to below XX. For In on allow our in which the electric the us existing plan, be of stakeholders filing all expected these rate the we rate impacting growing in the to is an our be the Then electric case energy to for in of clean with PECO we generally its these the X% X% next X% multi-year and for be year-over-year of outlook September range PECO put expect end rest its across horizon. the through reasons, in the rate with X% XXXX of XXXX to cycle X% range on investments, expect as X% above planning of XXXX distribution of and enter growth. base expected is XXXX to align squarely XXXX, XXXX. growth transition. combination in utilities years upper year an end based expected our third be with growth the the BGE to The to the PECO we line to for basis in annualized should us the range three-year

earnings quarter call. a initiate expect plans us You our do roll guidance and rate board CapEx, base we financing as and of fourth XXXX provide to on can normally

committed and a battered priority. a Turning to a balance top ratings XX. credit continue Slide be sheet to maintaining to strong Exelon remains

regardless of the tax. S&P filing. year outcome balance strong minimum the per remains written metric Our corporate Inflation tax is on the long-term our as tax million Moody’s, corporate credit the X-K corporate and approximately sheet as August is consolidated in Act, of in If the both for is outlook exposure posted Reduction minimum enacted $XXX

announced from to can in equity thresholds the and $X this the horizon impact expect cushion XX% working average without billion sheet we be as are for remain that with we cash commitment with noted, impact the over be to our planning targeted We our balance incremental need on a the expect optimistic if XXXX. our range industry previously downgrade and observe to unmitigated, above XX% XXXX Even through mitigated. Chris beyond

reminder, a million August in in through remaining the $XXX offering the $XXX As we million over lease equity issued and a XXXX XXXX through onetime period.

balance a close to commitment we is billion strong driving regardless in This by XXXX sheet. will turn to XXXX XXXX from of earnings Chris to Thank and the balance growth ensure XX% to corporate needed back of can priority sheet his I customers. estimated whether strong minimum investments for behalf tax confidence closing XXXX our make is want capital the now investing an call on of remains $XX a the a to mitigated. I top remarks. reiterating our to case the you. Our from

Chris Crane

Jeanne. Thanks,

Moving economy and years. country. way exposure of in the that which significant making the the energy legislation unparalleled more jurisdictions, an IRA the any cities some and delivery the more and serve Exelon largest a I’d resilient energy our in the federal this placing industry. gas to of value to IIJA is provide in been momentum We The XX. support for the transition to country the in Slide customers electric the proposition model to excellence emphasize including of leading passed utility and to year, like the cleaner, have offers opportunity.

live consistently in environmental the customers earned path strong with and communities commitments performance. governance by goal operation providing well steady And of is to our our advocacy to to values have and we our support our as trust top-notch model. – through reliably path our clean We commissions as for a

the decades. years in totals to very support for investments our And XXXX. earlier, X.X% communities, continue – to X% that XXXX. in dividend and our resilience the XXXX only total the and growth base result to will None through tremendous we balance beginning up $XX our yield million That projected very there make through the As We $XX we X% and that expect of transition for proposition billion offers continue offered proposition rate customer demand strong will [indiscernible] and the our proposition. capital dividend my need than X% to more which, I of the in of is a X.X% result, from So risk XX.X% X% low annual stages few growth and the investments of X% on as represent to rate hold and a take a matching said X.X% growth brings customer announcement. to to with to the demand feel the we growth from the – the come commitments, with retirement to sheet combining confident strong offer growth a me to have return keep

Calvin release And a the of end at I in and as role assume will the I’ll noted of Exelon the Board. mentioned, member CEO As yesterday, of retire the the year.

the Being its of there. to output We last won’t and Exelon safely will this Jeanne levels our you and these prices, look top issue you job serve seeing the able issues, members Calvin an of require that Because treatment and me health. significant but I forward focus join that be and need always operations customers. on to hip this senior economy, been spine recently mix, made for XX of to on decision our notch a years regulatory building my – have for company the the commodity I team our over has to asset of industry-leading other Regardless focused running part at has honor.

the diverse go get us platform to that have we and what employees, to will done talented the us to where built approaches all I want are of have amazing need thank we get tomorrow. an to they decades. recognize We where and our experience over today innovative

the team I to the transformation, trust being rise this leadership and Calvin team in being to of have in part ways. of world the all challenges energy in While his Exelon latest the I’ll many industry miss

thank your now and for you questions. we’ll always, As take time support and

Operator

first will Our Instructions] Ross come of question UBS. [Operator you. from Fowler Thank

Your line open. is

Ross Fowler

Good works Good really spine out issue, the hope wishes as okay. you Jeanne. Chris, morning, sincerely deal morning, Chris. best with everything

– which on to X to look just communicating. just to this let’s back – go XXX, back of you’re guidance, Slide Jeanne saying about the and If the that. So Slide is of my think range. X% maybe at midpoint be then kind year about for XXXX should And the go what is X% that to I thinking base in XXXX, you’re below

So, maybe the X%, I [ph] X% really growth this if I’m or that correctly, that, sort of base thinking growing if XXXX. that about take about XXXX, saying XXX XXXX of then here given of thinking midpoint at directly what saying you’re But That’s and think about into swinglines I XXXX XXXX and around if the math off X%. you’re X% will I’m XXXX. for above

XXXX XXXX. that off to a CAGR to the kind fair back think this? by four-year that midpoint X% get about get You time to Is got of to we out way

Jeanne Jones

yes. Yes,

shareholders You’re it And reiterate just [ph] from represent year. the the growth I’ll thinking about year-over-year that right. prior

way you the building on do what And is year, every a of it for is the to narrow give below number you blocks tried specific through not based So outcome sort the CAGR but line. right. we’ve then the walked

through see you XXXX. puts the us the those commitment squarely years, growth XXXX X% combination over X% So can of to in

Ross Fowler

you maybe if to about point Is mitigation is timing million estimated tax what’s have Or the first that, that just unmitigated. the that’s $XXX $XXX is make said the all? to equity what at here with that regardless mitigate Perfect. at those April? pretty of And some maybe since treasury in then cash really firm this change look treasury of And Great. Okay. payment then rules? need rules? tax getting preliminary does at a on Is every an million? impact, really of QX equity happens the need corporation going you And that

Jeanne Jones

Yes. Sure.

I questions So, there. three think

and working the the on there think when mitigation, industry EEI is regulation. about First, we with

anything would you allows that deductions mitigation be previously I So look certain we say, we’ve right, that’s the regulations whether had. factors, we is there But that through put in will on to on that that the way if of the as can, conservative certainly regulations most basis impact. unmitigated it’s basis a right, mitigate points end. combination internally a our internally to written but the XX slide are also a But points the meaningful for we would or that can do what the those XX we know,

was points to I question, second basis points your we mitigate think regulations are. the a the go we but I’m if it’s it third XX basis forgetting, question that $XXX are do or still the if to million XX away committed

we’re to announced. billion So, than not – $X we any expect don’t more we do the

and As of timing the remaining million we’ve done the you XXXX. know, already $XXX and execute between XXXX regulation. then the $XXX million The will

Ross Fowler

Yes.

part of Yes, timing. the second question, second Yes. the question. The

Jeanne Jones

Yes.

quarter. be helpful that to that we our of better, that. make would would through working And still that, through that. is There sort control. the would have the payment we the obviously signaled still be be Obviously, by sooner it helpful, and So when the obviously can’t should we’ve them really treasury be first that first working But next we are but year, know obviously. we’re helpful, more would

Ross Fowler

great. Okay, jump back Thank in Thanks. queue. you. I’ll the

Operator

Thank our you. for next question. One please moment

Our Paul America. from Zimbardo of Bank next question come of will

Unidentified Analyst

and the here. Thanks used? – being them, respect way commentary I to and of specific the interpret actually mean to the to to lines, fair you Julien as here. repeat Chris does good the If within your we squarely but don’t squarely that with X% just best X%? call much, I question about quickly this to Is too ask morning. to at that for may, wishes midpoint last It’s within effectively time equate language a Hey you my

Jeanne Jones

Yes.

reaffirming sort the XXXX. the right? look I is seem you are XXXX growth, you X% that given you range, we we’ve year-over-year look at what to drivers at to of X% confidently to below think But tried with where our solidly through we it But if it. always in within and be haven’t that the do you show we

Unidentified Analyst

Okay. Fair enough.

I too much. don’t it mean the Sorry, word

sheet. $X any but You like can than hearing cumulatively, a more sound payment, can it elaborate related if then use the scenarios. sound I now current if other of the keep is a uncertainties outlay an regardless balance I’m sounds just payment tell equity as And flow then but of being it’s metrics might to billion it’s you’re follow-up, And the simply less nuance in that word. than almost correctly, may, as second the unknown, right doesn’t make that you various you talked on know about being $X cash on it you should Again, doesn’t we be the it here, as this bit, of if capital that similarly, cumulative there metrics? the of billion Or risk having also be intact? scenarios intact to I like offset to confident best a little depending that on reduction aware you is again. of the here

Jeanne Jones

Yes.

it think it’s – I thinking you’re I right. about think

and through EEI stay on sheet, to – can planning We above need we are absorb the that XX% we downgrade within unmitigated We without more don’t that then the we internally, the impact. threshold analyzing whether equity be price. or mentioned incremental over the after than balance our again, billion affirming it’s can XX% $X our unmitigated

Unidentified Analyst

clarification. you Thank Got the it. right. All for Fair enough.

Jeanne Jones

Thanks, Julien.

Operator

Thank next you. the moment for please One question.

Wolfe Research. from come Fleishman will question Steve next of Our

open. is line Your

Steve Fleishman

pretty Hi the stock help – seeing turnaround Chris, give but hope health I CEG, in it just you also of that right happens recognize I you make just with we’re and remarkable. and your better kind the gets a know different good more through morning. now nuclear wishes best to just want

So that. congrats on

Just on nonlinear Jeanne, the on on the growth. – I just first the guess, question

the gave you think each you and wasn’t – when range may the the very I from it year. did beginning guide Exelon, kind you in be to be of say linear new not of the that going did

big had Or would this PECO changes for you’re just consistent of cycle it this reflecting given been that incremental year, now rate you there information, the giving have is just the most that it the have are like So beginning where pretty part? occurred? this just at other if

Jeanne Jones

Yes.

XXXX, and X.X%, I of some how which is is But the might in this is think at fundamental growth rate it’s have $XX rate there. cases that we’re the what think of how trajectory which sort drives we’re Analyst And clarity fees on impact drives think I there’s years. Day nonlinearity. the we been those here that of case more provides the between – consistent growth. different and I that because takes and hopeful investing earnings what with the puts timing, thing rate consistent. the pretty some but visual said billion, variability XXXX And There

Steve Fleishman

Okay.

you the XX, kind we the there’s that do are lower get take of that do just should because by to Is you maybe how an estimates people should XX range. how question not of it’s when to is, Second some number though are And the you to each kind trying think X even taking, Slide estimate half that? and of kind what adding I take up. – those year from that of

Jeanne Jones

Yes.

years wouldn’t at how spend the we’re the I think [ph], the range. the here view and laughing you we’re of show combination combination I’m of squarely growth visual. in say, we laugh just because over then what you the is trying I to over we’ve what – here growth much that puts would versus us things the tilde to tilde other – show But and

of squarely to that’s confident the we’re want And through the reiterate in we’re what the we going to what range. billion, so $XX be investments

Steve Fleishman

minimum the Okay. included. the on focus is And with of going tax could one whether that I to and think get repairs treasury tax, alternative big the, just then the of issues back

tax could $XXX because are that get of would most it some that actually companies assuming repairs cover this you will would addressed this, million get If part fixed? of that as the –

Jeanne Jones

would. it Yes,

Steve Fleishman

okay. would, It

Jeanne Jones

It was substantially yes. mitigated,

Steve Fleishman

Okay.

Chris Crane

One thing Steve [indiscernible] with the IRS.

agreement to there So first to industry and are communicate a have we trying approach. on folks guarantees own the to our they their the march the big working quarter – here good the a faster. on But with really move are working be tech can’t necessity in

Steve Fleishman

you much. Great. Thank Okay. very

Jeanne Jones

Thanks Steve.

Operator

Thank you. One next question. our for moment

Our next Stanley. come will Arcaro, from question David Morgan

is open. line Your

David Arcaro

much end from best as Thanks taking and for Chris Hey, wishes questions good well. morning. my my

the within that anticipate As and to comment, you managing I over sense jurisdiction we get to period? forward. filing to are you that four-year in going work multi-year in comfortable confident a manageable going plan, wanted was under look how just parameters January, Do plan a at the are upcoming be

Gil Quiniones

Quiniones, Gil is ComEd. CEO This of

was that our state, us had the environmental we noted so the with will in parties plan details and in to of Climate remarks, you here have our the and will call. share from the will as energy Jobs such and We in earlier see relationship of of what earning constructive stakeholders be and squarely Equitable will generally next policies our our plans the a And this Act, other economic jurisdiction. is that goals align with

David Arcaro

electric Okay. planning if you’re term, there the ways trajectory? that for I out cost then Got the we was here, think longer and just it. around contributions, or are you’re opportunities? looking exploring shifting Thanks. as EPS wondering to EPS of PECO as opportunities earnings longer out there smooth growth it’s smooth out just about kind dynamic just saving term to whether Are expenses the And

Calvin Butler

Calvin. This morning. is Good

always at We’re operate of that And value operate manage our regulatory our with customers. business affordability that’s something regulators. in as relationship driving our to Pennsylvanian of as just responsibility in looking the and utility build to our we’ve And the that is that – previously, factor is of is our – the environment we within one our in one is earning delivering about earning on and talked and come fleet highest have all across our because highest relationship more the constructive country. highest costs remember, collaborative we’ve jurisdictions. efficiently to PECO a And ways the

operating to as will continue the question to we within across corporate as units platform, look as manage at yes. we answer directly, always the center; our at So well your so costs

David Arcaro

so Thanks Okay, much. great.

Operator

you. Thank next One second moment – question. a for just our

Tonet, question from next Our JPMorgan. will come Jeremy

open. line is Your

Jeremy Tonet

Hi, morning. good

Calvin Butler

morning Good Jeremy.

Jeremy Tonet

little to there? the you headwinds what as to the way far the was guess XX bit come into just drivers go to want say and to guidance baked the XX-year can anything to minimize against back, could want XX and I operate as else plan really you expectation see a Just for to XXXX

Jeanne Jones

Sure, yes.

So I’ll take that.

first the our Calvin think on and cost continued mentioned, is management. foremost focus I As

to that. continue we do So

is other thing think also looking we’re to manage volatility. the interest I rate

into like long-term you cost on average caps our that creation, before think issuance interest rates long-term to the when should about we our So the tools against there financing, hedging short-term also upside use benefit fall. rate the but dollar protect retain rates the got debt. We’ve

to X.XX think marked heading And XXXX. comment asked says we to in we So costs I XXXX you for X.XX the things the there. to rate can I we about where we’re then as addition into the of so that, doing in all it that control think marked footnote [ph],

Jeremy Tonet

maybe I Got historically opportunity how just applied if helpful. Illinois it. Thanks. you how and one if the have forward? do new to performance going And question scored could, think That’s metrics would about you here ComEd, the more it

Jeanne Jones

forward as under very the only the performing would Chris rate, and its I there enough, going now I somewhat it operations. categories one different also downside different there But cast is to have constructive What’s we piece it. say do you is rate. And we opportunity I better. years had they’re XXX in are that’s penalties – ComEd about best say, heard under the this consistent, Yes. don’t what so would path new of ever the has can formula you only formula the but back right? think say risk was as

so And about we’re excited that.

when the the And we smart investments. other there be at the the also the of look agreed ComEd formula required about that that rate that grid there at XX%. I the modernization where results around plan upfront think would And in reliability alignment and is meters. was you multi-year improve the thing

recognized ComEd like ability to which to perform the ability like the we get done. has we we So should align upfront well, and

Gil Quiniones

would mind those how developed. add in collaboration that in keep And done partnership and metrics They stakeholders. were I with performing were Jeremy,

step we they your which meeting plan. file as energy of investments that is value as regulators go you in of rate So with continue Gil process making that the regulatory customers transparency to your are first clean to that the started their environment. working leading in are goals of the I ensure think the the reliability, the That’s to to out. ComEd as resilience and and process pointed build constructive state we increased a in a the And multiyear

Jeremy Tonet

I’ll Got it. That’s leave it Thanks. there. helpful.

Jeanne Jones

Jeremy. Thanks,

Calvin Butler

you. Thank

Operator

Thank moment next you. our for One question.

from Michael come of Lapides will question last Goldman Our Sachs.

Your line is open.

Michael Lapides

the but Like to transmission, customer kind do point of opportunity set, lie? in sets the corporate you you where wish think more in or Chris, sure at three whether Where a at much the benchmarking a Where not do think you physically. Thank five, yourselves do customer G&A, of or the Can efficient? you I’m you you get that. perspective? a you accounts corporate whether T&D, Meaning from and where you score quartile? When the and very wish question. term, you cost can still – is just center, year it’s distribution, to benchmark you three period service, may the directionally opportunity think do seven management over a greatest near well, obviously to best cost lot not benchmarking do first O&M

Jeanne Jones

Yes.

possible – cost look that it the and to lowest there’s operates drive board say We safety we while would want across opportunity at everywhere, reliability. I to right? it we think the and maintaining

everyone our is affordability. kind the what you about of think where it lever where O&M see metric I affordability driving a shows in because see we such think can is up when

it’s the metropolitan our are they’re so the gas look it’s XX median below you look we And electric, at at the cities. some we any states rates look When national of below on top when percent our whether average, we income, or are lowest rate gas of rates, you whether bills whether build metric, and in on average the the operate. our average side, XX% it’s

we our all continued up that you of I power whether corporate in across see that’s it’s areas, and best that, I But utilities, shows important can those history it that’s look where think metrics. center, discipline. think So financial the

Calvin Butler

continues continue side side to and and on the you of and to that. to the our that what I’m what and operating building keeping operational regulatory so commissions leadership would over teams other much compact. our of And that’s our that. to leadership to over And that be below corporate XXXX, go how that as dive and leadership, to And of will our team earlier, spending had we that continued jumps the met at the Chris’ back split split, they the protest and Michael, continue we one, split – always of ended maintain is in And ride our time, we that And our we year we I’ll and do to commitments you lot meet and that. that metrics And of Exelon corporate were as inflation the of business. that will said performance continue because when what and under I Constellation, one a go it challenge. to talent seen to and companies one bar O&M announced And to it you’ve the that raise after up a you to was we result has do of to let continue continue a center ours in. costs not commit and remain of add rate commitments, we our to services each I to focus to to commit of flat stepped your the the other the is

Michael Lapides

guess a opportunity performance follow-up of where up. I little more because of can you you the organization when cost a kind benchmark kind side to kind get granularity of for the one give follow-on I detail. And see the it. the sets kind of you the probing performance and if was on little Got cost within That’s

not value being that real curious fact via there’s of bit real the hidden you’re there’s lessor in And we’re markets, a formed The estate. of of all serve lot a thinking see have maybe starting little corporate the companies or that owner estate and the just given Recognize real necessarily that whether value is of that to estate. how you other of the combinations. and of years footprint that urban the company about years

year saw or like companies their ago. Midwest, and T&D in a we your seeing We’re so headquarters the Mid-Atlantic one PG&E neighbors of with

also improve curious Just bills. well cost as lower income how improve to both to set you’re statement looking but opportunity customer to that at the

Calvin Butler

Yes.

to We look have and that. continue we at

are across We our control our consolidating fleet. centers

look We hybrid we that supply as it office real environment going those And this that. going some space. to in of chain, continue at we costs part at of continue for areas, as drive work in how and drive what mean focus, turn of does we’ve And our estate is new opportunity portfolio out affordability over our and to to we’re to our business. a Chris. remain said, But look have to I’ll every to

Chris Crane

shared a I lot you’re benchmarking operator from. book nuclear data. think every how and of UCG, their to used cost data us we’ve their having operational got the and nuclear information

rates, And from level to and not the plant. facility so you’re disclosure of low we’ve continued stay every got it But we you know have to we national same very solid rates those. the every from get going is affordability benchmarks. like What

hard ourselves the against ourselves but with let finding has work with and So us. only willing us that to partners benchmarking not will them benchmark also team benchmark

utilities. we’re confidence that level get the of a far putting cost that have in very high the we the level that benchmark, down said of hole to to consumer of have the average cost supportability and total So below cost a transform the the of don’t just the or metrics it Jeanne in but detail

and depend indicators cheapest these our on to benchmark depend on providing price. with the we’re to at can continue ensure some have and best other we that service to we So drive own challenges the

Michael Lapides

Got it. Thank you.

Chris Crane

of looks the you you call of thank And call. you all. I’ll today. that’s to month. And close at with month, that, team The the the out. for joining this many that just seeing everything to I later I’d thank forward like end think So EEI

Operator

for all conference concludes This call. today’s you. participating. Thank you Thank

You may now disconnect, day. and pleasant have a

Exelon (EXC) 3 Nov 222022 Q3 Earnings call transcript