Exelon Corporation

Hello and welcome to Exelon's third quarter earnings call. My name is Gigi and I'll be your event specialist today. All lines have been placed on mute to prevent any background noise. Please note that today's webcast is being recorded. During the presentation, we'll have a question and answer session. You can ask questions by pressing star 1 1 on your telephone keypad. If you would like to view the presentation in a full screen view, Click the full screen button by hovering your computer mouse cursor over the PowerPoint screen. Press the Escape key on your keyboard to return to your original view. And finally, should you need technical assistance, as a best practice, we suggest you first refresh your browser. If that does not resolve the issue, please click on the Help option in the upper right-hand corner of your screen for online troubleshooting. It is now my pleasure to turn today's program over to Andrew Plenge. Vice President of Investor Relations, the floor is yours.

Thank you, Gigi, and good morning, everyone. Thank you for joining us for our 2025 Third Quarter Earnings Call. Leading the call today are Calvin Butler, Exelon's President and Chief Executive Officer, and Jean Jones, Exelon's Chief Financial Officer. Other members of Exelon's Senior Management Team are also with us today, and they will be available to answer your questions following our prepared remarks. Today's presentation, along with our earnings release and other financial information, can be found in the Investor Relations section of Exelon's website. We would also like to remind you that today's presentation and the associated earnings release materials contain forward-looking statements which are subject to risks and uncertainties. You can find the cautionary statements on these risks on slide two of today's presentation or in our SEC filings. In addition, today's presentation includes references to adjusted operating earnings and other non-GAAP measures. Reconciliations between these measures and the nearest equivalent gap measures can be found in the appendix of our presentation and in our earnings release. It is now my pleasure to turn the call over to Calvin Butler, Excellence President and CEO.

Thank you, Andrew, and good morning, everyone. We are happy to have you with us today for our third quarter earnings call. As we reach the last months of 2025, the 25th year since Excellence founding, our employees continue to execute with excellence, serving our customers communities, and shareholders. We reported earnings of 86 cents, which was stronger than anticipated due to slightly warmer weather and a mild storm season, along with timing-related drivers. We continue to reaffirm our operating earnings guidance for 2025 of $2.64 to $2.74 per share, and we look forward to closing out the year strong. We also continue to deliver some of the best operational performance in the industry. In fact, We now have the final results of our reliability benchmarking for last year, and our four utility operating companies are ranked one, two, four, and seven out of our peer set, improving upon last year's already stellar one, three, five, and eight rankings. I could not be prouder of the way our employees show up every day whether it's selecting, planning, and operationalizing the right investments to avoid outages or being the fastest to get customers back online if the power does go out. This performance has real value, particularly when you consider that a typical major storm can cost hundreds of thousands of dollars for the average customer, depending on its size. Our operational North Star is to continuously improve upon this performance, offering above average performance at below average rates to the communities we have the privilege and honor of serving. Results like that show we're living up to that standard. As it pertains to rate cases, we remain on track for our gas distribution rate case at Delmarva Power and our Atlantic City electric rate case. We also filed a rate case at Petco Maryland with the decision required per statute by August of 2026. The filing supports the company's commitment to delivering safe, reliable, and resilient service while further preparing the local grid for future clean energy demands. Our filing also demonstrates true focus on customer value, reflecting strong O&M cost containment and robust projected benefits from specified reliability investments that significantly exceed their cost. Outside of rate cases, We have seen more progress in our states and at PJM when it comes to advancing solutions to meet the growing need for reliable and resilient power. Last week, Illinois passed the Clean and Reliable Grid Affordability Act, which directly supports resource adequacy by expanding the annual budget for energy efficiency, broadens the types of assets eligible for the distributed generation rebate, and creates an energy storage procurement plan. It also requires the Commission and other state agencies to develop four-year integrated resource plans and gives the ICC discretion to facilitate transmission projects that support state goals. This marks the next chapter in Illinois energy transition, and we look forward to working with policymakers on implementing this next set of programs. In Maryland, the commission initiated a request for merchant generator proposals for up to three gigawatts of new energy supply. The process attracted several submissions. Though the disclosed capacity levels have fallen short of their target, and we will learn in December which of those projects the Maryland Department of Natural Resource Power Plant Research Program might recommend. And PJM is working through its critical issue fast path process for options to better accommodate new large loads. assisting our states as they navigate unprecedented levels of growth. We are encouraged by the breadth and amount of engagement in that process, and we look forward to finding solutions that ensure customers can rely on cost-effective power supply. And as we have stated, these efforts are welcomed and necessary, but they are not enough. There is a significant anticipated shortfall in supply and hoping that markets alone will fill its will fill it puts too much risk on customers that increasingly depend on affordable supply to power their lives. All states need to leverage all available options to bring control, certainty, and customer benefits to securing power. These options help ensure that all customers continue to have reliable access to energy and that the states can participate more fully in the economic development opportunities from artificial intelligence and onshoring. The supply challenge is real, and we know utilities can be a key partner in helping the state solve it, whether it's supporting investments in the demand side like energy efficiency, distributed and community solar and storage, or even owning more traditional generation plants. We stand ready to work with our states as they seek opportunities to address growing energy security needs in a manner that fits their goals. The demand for power is not slowing down. Our large load pipeline now stands at over 19 gigawatts as we have finalized our cluster study approach and now account for our first transmission security agreement at PECO. The innovative TSA approach ensures we strike the right balance in prioritizing large loads while ensuring our existing customers are protected. Furthermore, we now have at least 27 gigawatts either waiting Signed TSAs are in active cluster studies, with many more behind those. Additional details on our large load outlook can be found in the appendix. Connecting new business is expected to be just one of the drivers of the anticipated growth in transmission investment in our next four-year plan. This new business will also drive broader needs for the grid, which get identified in reliability assessments like PJM's open windows. and it helps drive inter-RTO opportunities like MISO Tranche 2.1 segment running through ComEd's territory. We will be monitoring the recommendations coming out of PJM's latest open window over the next three months to determine if any of the solutions we have proposed, either individually or with partners, are selected. With no project greater than 3% of our four-year plan we are focused on bringing all of our customers along at the appropriate pace, while also ensuring we can earn a fair return of 9% to 10% on the equity capital provided by our investors. With rate-based growth of 7.4% through 2028 and a balanced financing plan, we expect to grow our earnings at an annualized rate of 5% to 7%, with the expectation of always delivering at the midpoint or better of that range. I will now ask Jean to cover more details on our regulatory updates and financial performance.