Exelon Corporation

Hello and welcome to Exelon's first quarter earnings call. My name is Michelle 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 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 the 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.

RYAN BROWN Great. Thank you, Michelle. Good morning, everyone. Thank you for joining us for the 2026 first 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 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 on 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 GAAP measures can be found in the appendix of our presentation in our earnings release. It's now my pleasure to turn the call over to Calvin Butler, Exelon's president and CEO.

Thank you, Ryan, and good morning, everyone. We appreciate you joining us for our first quarter earnings call. Our message today is straightforward. 2026 performance remains on track, both financially and operationally. And with a disciplined, adaptable platform, you can continue to depend on Exelon to navigate change and deliver on our commitments. This morning, we reported adjusted operating earnings of $0.91 per share, exceeding expectations without performance driven primarily by net favorable weather and timing related items. We are also affirming our 2026 operating earnings guidance of $2.81 to $2.91 per share. Reliability and operational performance continue to set the standard for the industry. Even as our system faced several high wind and storm events this spring, all utilities sustained top quartile and reliability performance with ComEd in top decile. Our men and women on the ground continue to deliver, responding safely, restoring service quickly, and keeping customers connected. This quarter also included several important regulatory and legislative developments, most notably in Pennsylvania and Maryland. At PECO, we made the decision to withdraw the recently filed electric and gas rate cases. This was a deliberate, timing-based decision grounded in customer affordability considerations and informed by stakeholder feedback. Importantly, this decision does not change our commitment to safety, reliability, or long-term infrastructure investment. It demonstrates our ability to adjust timing and reallocate capital. while maintaining the balance between near-term affordability and long-term system needs. Maintaining that balance requires difficult prioritization decisions and the strong ongoing stakeholder partnerships you've come to expect from Exelon. Looking ahead, we welcome continued close collaboration with all stakeholders across Pennsylvania as we reprioritize certain investments without compromising safety or reliability in the near term. Before I move on, I also want to highlight a recent leadership update at PICO. Dave Vajos, previously CEO of PICO, has transitioned into an advisory role reporting to me. Mike Inocenzo has stepped in as an interim president and CEO while continuing to serve as Exelon's chief operating officer. Mike previously served as president and CEO of PICO from 2018 to 2024. and brings deep operational experience, long-standing relationships across Pennsylvania, and a strong understanding of PECO's system, workforce, and stakeholders. This transition ensures continuity and stability at PECO as we remain focused on operational excellence, affordability, and reliable service for our customers. Turning to Maryland, the Utility Relief Act has passed the legislature and is awaiting Governor Moore's signature. We know the governor and state leaders share our focus on affordability. However, the legislation does not address the growing imbalance between energy demand and supply. Residential supply costs in the Mid-Atlantic have increased by up to 80% or more over the past five years. Without addressing supply constraints, affordability challenges will persist. Addressing this challenge requires a combination of incremental transmission investment, continued reforms at PJM, and critically, the addition of new generation. We're leaning into areas where we have a clear mandate today, like transmission, while also advancing solutions in areas where we currently cannot participate, including utility-owned generation. For example, HB 1561 in Maryland was designed to establish a clear path for utility-owned backstop generation, particularly storage and renewable resources. Given the structural imbalance between supply and demand in the state and Maryland's heavy reliance on imports from neighboring markets, this approach would have meaningfully enhanced energy security and resilience and ultimately avoid the risk of blackouts, which in 2024 PJM suggested could happen as soon as 2028 due to lack of supply. In short, affordability and reliability must go hand in hand. We remain committed to working constructively with stakeholders to deliver near-term customer relief while supporting the long-term investments required to keep energy safe, reliable, and affordable. As such, we have taken a hard look at our plan and made deliberate adjustments. Let me be clear. This is a different plan for a different moment. We are pulling back on certain projects, reprioritizing capital across our portfolio, and delivering $350 million of incremental O&M savings in 2027, tied to work we will no longer pursue. We are actively reshaping the business to best meet the needs of our customers while delivering on the Exelon promise to keep energy bills as low as possible. This includes accelerating the use of new technologies, focusing investment on the highest impact opportunities, and maintaining disciplined cost control. Doing business as usual is not an option. The energy market has shifted dramatically, with significant load growth and a lack of supply to meet the evolving needs of our customers and communities at a reasonable price. While we remain confident in the value of our work and investments, This moment requires us to adapt, to be agile, and make changes thoughtfully and purposefully. Our core mission, commitment to safety, reliability, ethics, and compliance, and service to our customers are not changing. Now, Jean will walk through the details in a moment, but with these actions in place, we are reaffirming our 2026 Adjusted Operating Earnings Guidance of $2.81 to $2.91 per share. and our long-term operating earnings growth outlook from 2025 to 2029 near the top end of the 5% to 7% range. This is our platform at work. Size, scale diversification, and discipline translate directly into execution. As we adjust our plan to reflect current realities, we are also leaning into areas where we see strong visibility and clear need, most notably in transmission. Our scale, multi-state footprint, and deep operational expertise allows us to step forward where reliability and resiliency investments are increasingly needed, especially as load growth and system complexity continue to accelerate. We've seen that play out in recent periods through our success across multiple competitive and reliability-driven processes. That momentum continues. In February, we submitted competitive bids for two Illinois transmission opportunities within the MISO Tronch 2.1 window, representing approximately $1.9 billion of total transmission capital spend pursued jointly with Infinergy. While it's too early to comment on potential outcomes, these projects underscore our disciplined approach, deploying capital where RTOs have identified clear need, strong execution visibility, and attractive risk-adjusted returns. You should expect Exelon to continue engaging competitively and with discipline in future transmission windows across PJM and other ISOs, including two additional bids expected later this month. However, affordability and energy security cannot be solved by transmission alone. Additional generation is critical. We continue to work closely with federal officials, PJM, and state leaders to address elevated supply costs and emerging reliability challenges across the system. Let me reiterate, you cannot have a conversation about affordability without addressing the underlying shortage of generation. We support measures that bring new generation forward while avoiding market designs that result in unnecessary or excessive payments at the customer's expense. That's why we've been focused on ensuring our data center pipeline is increasingly backed by FERC approved transmission security agreements, which have now secured approximately $1 billion of collateral. Real affordability depends on careful design from load forecasting and cost allocation to how new resources are integrated into the market framework. There's more work ahead as implementation details continue to take shape, and our team remains closely engaged with PJM regulators and policymakers to ensure outcomes that protect customers and support a reliable, affordable system. As we said before, addressing these challenges will require an all-of-the-above approach, including utility-led solutions demand side alternatives, and merchant investment. While we do not control the supply side, we remain intensely focused on reducing the costs we can control and on actively advocating on behalf of our customers. In the past year alone, we've delivered approximately $1 billion in customer savings through a combination of actions, including our award-winning programs that connect customers to assistance, our industry-leading customer relief fund, a recently approved gas supply settlement, and disciplined cost management that kept costs nearly flat, driven by operational efficiencies. We're delivering this $1 billion. While delivering this $1 billion, we've also provided best in industry reliability. In contrast, over the last two years, customers have paid $32 billion to generators for capacity in PJM. while supply has declined by 1.2 gigawatts over that same period, meaning customers paid more and received less. The time for action is now. PJM has been warning about 2028 reliability risks since 2024. We're halfway there, and there's been no meaningful progress on new supply. While recent activity in the PJM interconnection queue is encouraging, It's not enough for projects to simply be in the queue. We need to ensure they are built and come online in time to meaningfully address the reliability need. Had utilities been allowed to build generation for the 28-29 planning year, we would be in a materially stronger position today. As we've highlighted before, Charles Rivers Associates estimated that utility-supported generation could have saved PJM customers between $9.6 and $20 billion in the 28-29 delivery year, while reducing outage risk from energy shortages by approximately 85%. Our customers simply cannot afford to wait any longer. With that, I'll turn it over to Jean to walk through our financial performance and provide additional details on our rate case activity. Jean?