Exelon Corporation

Hello, and welcome to Exelon's fourth 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 Ryan Brown, Vice President of Investor Relations. The floor is yours.

Great. Thank you, Gigi. Good morning, everybody. Thank you for joining us for our 2025 Fourth 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'll 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. I'd 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 GAAP measures can be found in the appendix of our presentation and in our earnings release. With that, it's now my pleasure to turn the call over to Calvin Butler, Excellence President and CEO.

Thank you, Ryan, and congratulations on the new role, and good morning to everyone. We appreciate everyone joining us today for our fourth quarter earnings and celebrate the close of our 25th anniversary, we're proud to once again deliver exceptional results for our customers, employees, and investors. Across Exelon, our companies bring more than 800 years of collective experience. Even with that long queue, this moment stands out. The industry is changing at a speed and scale rarely seen. With that comes both great responsibility and opportunity. I've never been more confident that Exelon has the people, the discipline, and the platform to continue to lead the energy transformation and meet this unprecedented demand. This is underscored by our recent results. As you saw from this morning's release, we delivered another strong year. For 2025, we reported adjusted operating earnings per share of $2.77, delivering above expectations. And since 2021, we've achieved a 7.4% annual earnings growth rate and 8% rate-based growth through 2025, highlighting our ability to navigate changes and consistently execute. at below average rates. It was also another exceptional year operation. Exelon continues to set the standard for the industry. Our utilities maintain top quartile reliability metrics once again, and we're ranked one, two, four, and seven amongst our peers based on 2024 benchmarking data. This level of performance is nothing new. In fact, we've delivered top quartile reliability for over a decade. It's who we are and center to our mission. But don't get me wrong, consistency does not come easy. It's the direct result of a culture of continuous improvement, innovation, and a steadfast focus on targeted investments that maximize value for our customers. These investments not only prevent outages and deliver best-in-class service, but they directly benefit local economies, with every $1 million invested creating eight jobs, or $1.6 million, economic output I am truly humbled by the commitment and sacrifice of our employees that make this level of service possible recently their dedication was on full display during winter storm firm despite record low temperatures our investments withstood heavy snow and icing across our territories maintaining strong reliability with only minimal disruptions fewer than 1% of our customers weather impacted our regions. This reflects the tremendous work of our employees over the past decade to invest in the safety, reliability, and resiliency of our system. The performance is remarkable when accounting for the scale of the storm, as well as the demand put on the grid. Fern resulted in the PJM RTO experiencing five days in a row of peak load ranging from 135 to 140 gigawatts, reaching 97 percent of the all-time winter peak our investments combined with our employees around the clock dedication kept nearly 11 million electric and gas customers safe and warm when they needed us most i'd like to express my gratitude to all of our employees who have supported storm restoration efforts locally and afar thank you for all that you do over the last As Gene will detail shortly, it's been an active few months. We've achieved several key milestones, including final settlements for the Atlantic City Electric and Delmarva gas rate cases, reconciliation orders at ComEd and BGE, and the filing of ComEd's second multi-year grid plan. This progress is built on a foundation of hard-earned trust. We work collaboratively with stakeholders and our communities to ensure that our investments aligned with the specific goals and needs of the states we serve. Looking ahead, we now expect to invest $41.3 billion of capital to support our customers with more than 70% of the plan-over-plan increase driven by transmission, where we continue to have a unique opportunity and significant momentum. our utilities to capitalize on the growing need for transmission investments in reliability and resiliency, accelerated by the pace of new business growth. This progress is further evidenced by our success in the recent PJM reliability window results, where $1.2 billion of incremental Exelon investment was recommended, including a jointly developed solution with NextEra. This comes on the heels of other recent large-scale transmission awards, including Brandon Shores, Tri-County, and the MISO Tranche 2.1 project. You should expect us to be active in future windows within PJM and other ISOs, leveraging our competitive advantages where appropriate. And we continue to see robust demand in our jurisdictions, with anticipated load growth exceeding 3% through 2029. This is further reinforced by our large load pipeline, which is now further supported by an increasing number of signed transmission security agreements, or TSAs. Overall, our pure transmission and distribution capital plan is unique and truly differentiated. It's highly diversified across seven regulatory jurisdictions, including FERC, with no one jurisdiction greater than 30% and no single project comprising more than 3% of the plan. It's also actionable. We have line of sight to each project that comprises the $41.3 billion with a significant pipeline of incremental projects over the next 5 to 10 years and the size and scale to execute efficiently. With continued returns on equity in the 9% to 10% range, we expect rate-based growth of approximately 8% and annualized earnings growth of 5% to 7% through 2029. We will continue to fund investments in a balanced and disciplined manner that maintains a strong balance sheet. And for 2026, we are initiating operating earnings guidance of $2.81 to $2.91 per share. Our continued progress is clearly demonstrated by the scorecard on slide five, where we once again met or exceeded every goal we set at the start of the year. At Exelon, Commitments made are commitments meant. That discipline and credibility define who we are and shape how our teams operate every day. In addition to strong operational and financial performance, we continue to lead on customer affordability, which remains a top priority. We continuously drive costs out of the business through efficiency and innovation, maintaining a track record of cost growth well below inflation. In the past year, we executed a $60 million customer relief fund to support low- and moderate-income customers facing higher supply costs. We advanced innovative TSAs that prioritize large loads while ensuring existing customers remain protected. Our award-winning energy efficiency programs continue to deliver meaningful savings. We expanded connections of distributed resources, giving customers more ways to participate and save. and we are steadfast in introducing innovative tools and processes to connect customers to low-income assistance. We continue to focus on actions like these that are directly within our control, in addition to delivering safe, reliable energy while keeping bills as low as possible. In the meantime, we are also actively partnering with federal, RTO, and state leaders to address high supply prices and emerging reliability risks. The supply challenge is real, but not insurmountable. We're encouraged by the growing national focus, including the recent announcement from the White House and our state governors advancing policies to incent new generation and improve affordability. As we've said before, we firmly believe it's going to require an all-of-the-above strategy that includes utility-generated demand-side and merchant solutions. This was further supported by the study released last week by Charles Rivers Associates. The report is an urgent call to action, highlighting the risk of the status quo and the cost and reliability benefits of utility generated energy. Specifically, they note that utility generated power could have saved total PJM customers $9.6 to $20 billion in the 2028-2029 delivery year. while reducing the risk of potential future outages from energy shortages by approximately 85%. We are committed to continue to work with all stakeholders to advance policies that strengthen energy security as quickly and cost-effectively as possible. Finally, I want to take a moment to reiterate why our platform and approach is best positioned for the years to come. As highlighted on slide 6, Our foundation is based upon a customer focus and industry-leading operations. With our size and scale, constructive regulatory frameworks, and diversified footprint and capital plan, we have a disciplined and defensive foundation that is resilient. Yet, at the same time, we're well-positioned to capture credible, meaningful opportunities for sustainable growth. We're excited about where we're headed. Our platform is designed to deliver an attractive risk-adjusted return and long-term value for all stakeholders. I'll now turn the call to Jean to dive deeper into our 2025 results and share more details on our updated long-term plan. Jean?