Exelon NASDAQ: EXC reported third-quarter 2026 adjusted operating earnings of $0.87 per share, compared with $0.86 per share a year earlier, and narrowed its full-year guidance to $2.85 to $2.91 per share. The utility said it is targeting results at the midpoint of that range or better and reiterated its expectation for annualized adjusted operating earnings growth near the upper end of its 5% to 7% range from 2025 through 2029.
President and Chief Executive Officer Calvin Butler said the company’s results reflected continued execution on reliability, cost management and infrastructure investment. He pointed to final 2025 reliability benchmarking results that ranked Exelon’s four operating companies first, second, fifth and sixth among U.S. utility peers for electric reliability.
Butler said Exelon responded to roughly 31 significant weather events year to date, including three major summer storms in ComEd’s territory that each affected more than 400,000 customers. Across the company’s service areas, Exelon faced 57 confirmed tornadoes and two derechos. Grid investments helped avoid an estimated 6.6 million customer outages, he said, while 94% of affected customers had service restored within 48 hours.
Quarterly earnings drivers and capital plan
Chief Financial Officer Rob Kleczynski said the year-over-year earnings increase was driven primarily by $0.06 per share from approved distribution and transmission rates, net of depreciation; $0.01 from allowance for funds used during construction; $0.01 from weather; and $0.03 from lower costs. Those factors were largely offset by $0.07 related to storm activity and $0.04 of interest and tax expenses.
Kleczynski said the quarter was ahead of the company’s previous expectations, primarily because of favorable weather and the timing of operations and maintenance spending. Exelon’s fourth-quarter outlook assumes approved distribution and transmission rates, normal weather and storm activity, fair and reasonable regulatory outcomes, and the reversal of timing items.
The company continues to base its outlook on a $41.7 billion capital plan, which it said supports 7.9% rate-base growth through 2029. Transmission investment is expected to grow 16% as Exelon works to improve reliability and resilience, serve new customers and address grid constraints. Butler said no individual project represents more than 3% of the capital plan.
“Reliability, resilience, and grid modernization support the outlook,” Butler said. “Transmission and storage extend the runway, and we will add those investments only as approvals and cost recovery are secured.”
Transmission and storage opportunities
Exelon identified $12 billion to $17 billion of potential transmission investment opportunities over the next decade beyond its existing plan. Kleczynski said the opportunities are supported by aging infrastructure, changes in the generation mix, demand growth and the need for a more flexible grid. The company also cited about $1.2 billion of Exelon investment approved in PJM’s regional transmission expansion plan process last year.
The company also outlined a potential 1.5 gigawatts to 3.5 gigawatts of regulated battery-storage investments, representing approximately $3 billion to $7 billion of opportunities beyond its base plan. Exelon said the estimate reflects a portion of storage procurement targets being considered across its states, with utility-owned assets positioned as a complement to competitive development rather than a replacement for it.
Executive Vice President of Transmission and Development Carim Khouzami said transmission projects may take three to seven years to enter the investment plan and contribute to earnings once operational. Battery projects have shorter development timelines. He said Exelon’s proposed 500-megawatt New Jersey battery project could be operational in just under three years after approval.
The Atlantic City Electric project, which is being developed with Invenergy, would be the largest battery-storage installation in PJM, according to Exelon. The company expects more than $700 million of net customer benefits and said there would be no customer bill impact during the project’s first five years of operation. The New Jersey Board of Public Utilities is reviewing the proposal, with a final order expected late in the first quarter of 2027.
Exelon said New Jersey, Maryland and Delaware currently allow utility ownership of storage as a resiliency asset. Khouzami said the company is also evaluating projects and engaging with developers in other jurisdictions while advocating for legislative changes that would permit utility ownership.
Regulatory proceedings and supply concerns
Exelon reported several regulatory developments during the quarter. In Maryland, the Public Service Commission approved a $50.9 million revenue requirement increase in Pepco’s electric base-rate case, based on a 9.4% return on equity and a 50.5% equity ratio. New rates took effect Aug. 10.
BGE’s electric distribution rate case remains on schedule, with hearings set for November and a final order expected in January 2027. Delmarva Power’s Delaware electric base-rate case is expected to receive a final order in the third quarter of 2027, while interim rates equal to 75% of the company’s request are expected to begin in December, subject to refund.
In Illinois, ComEd reached a settlement in its annual reconciliation proceeding at a delivery adjustment amount of $205 million, with a final order expected by Dec. 20. An administrative law judge also recommended approval, with modifications, of ComEd’s grid plan. Exelon expects a commission order by Dec. 15. As filed, the company said the plan would provide $51.5 billion of customer benefits, compared with an estimated $15.3 billion cost.
Butler said Exelon continues to hold discussions with Pennsylvania officials, legislators and regulators concerning future rate-making. PECO Chief Executive Officer Mike Innocenzo said stakeholders have recognized the value of the utility’s infrastructure investments, though the company is still working through the timing and structure of a future rate filing.
Management also discussed concerns about electricity supply and affordability in PJM. Chief Legal Officer Colette Honorable said PJM projects an approximately 11.5-gigawatt capacity shortfall by 2030. She said Exelon supports retaining a capacity-market price cap in the short and medium term until improved processes are in place to lower customer costs.
Honorable noted that PJM submitted a revised reliability backstop procurement proposal focused on assigning large-load-related costs more directly to where they are caused, reducing collateral requirements to 40% from 50%, and applying exit fees to load-serving entities rather than transmission owners.
Financing and large-load development
Exelon said it completed all planned 2026 debt financing, reducing exposure to interest-rate volatility for the year. The company’s hedging strategy is designed to limit the earnings effect of a 50-basis-point increase in interest rates to roughly $0.01 per share.
The company has priced about 30% of its $3.4 billion planned equity needs through 2029 under forward contracts in its at-the-market program, including all $850 million of planned 2026 equity needs. Exelon expects to settle those 2026 needs by Dec. 15.
Kleczynski said Exelon expects average credit metrics of approximately 14% through 2029, about 200 basis points above Moody’s downgrade threshold and roughly 100 basis points above S&P Global Ratings’ threshold.
On large-load demand, Exelon said a small amount of its 11 gigawatts of high-probability load is included in the curre
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