Earnings Release Highlights

GAAP net income of $0.64 per share and Adjusted (non-GAAP) operating earnings of $0.64 per share for the fourth quarter of 2024, resulting in full-year GAAP net income of $2.45 per share and Adjusted (non-GAAP) operating earnings of $2.50 per share
Introducing 2025 Adjusted (non-GAAP) operating earnings guidance range of $2.64-$2.74 per share
Declaring quarterly dividend of $0.40 per share for the first quarter of 2025, implying an expected total 2025 dividend that represents an approximate 60% payout of Adjusted (non-GAAP) operating earnings per share
Projecting to invest $38 billion of capital expenditures over the next four years, an increase of 10% versus the prior plan to support customer needs and grid reliability, resulting in expected rate base growth of 7.4% and operating EPS compounded annual growth of 5-7% from 2024 to 2028
Updating 4-year financing plan to include $1.4 billion of additional equity to fund approximately 40% of $3.5 billion of incremental capital expenditures, in line with a balanced funding strategy and resulting in implied total annual equity needs of $700 million per year from 2025 through 2028
All utilities sustained top quartile or better performance in reliability and safety, and all gas utilities sustained top decile performance in gas odor response
Close to 90% of Exelon's rate base is now covered by established mechanisms outlining cost recovery through 2026 or 2027, with final orders issued in the fourth quarter for Pepco's multi-year rate plan in DC, PECO's electric and gas rate cases, and ComEd's Refiled Grid Plan

Exelon Corporation (NASDAQ:EXC) today reported its financial results for the fourth quarter and full year 2024.

"I am pleased to announce Exelon has delivered against our financial goals for the third straight year since becoming a transmission and delivery-only company, and we delivered top quartile performance across all our local energy companies, with ComEd and Pepco Holdings in the top decile," said Exelon President and Chief Executive Officer Calvin Butler. "Our commitment to our customers, grid reliability, community investment and being an economic engine in the regions we serve has positioned us as a leader in the energy transformation. As we celebrate Exelon's 25th anniversary in 2025, we are excited to continue our journey of innovation and excellence, ensuring that we meet and exceed the evolving needs of our customers and communities."

"Exelon's financial performance in 2024 exceeded expectations, with earnings of $0.64 per share (GAAP and non-GAAP) in the last quarter of 2024 and full-earnings of $2.45 per share on a GAAP basis and $2.50 per share on a non-GAAP basis," said Exelon Chief Financial Officer Jeanne Jones. "With growth in our four-year capital plan driven by investment needs across our regions, we continue to expect 5-7% annualized earning growth through 2028. Our focus on industry-leading operations, cost management, a broad suite of customer saving solutions, and advocacy for fair and equitable energy policies will ensure our customers are receiving premium value for the investments we make."

Fourth Quarter 2024

Exelon's GAAP net income for the fourth quarter of 2024 increased to $0.64 per share from $0.62 per share in the fourth quarter of 2023. Adjusted (non-GAAP) operating earnings for the fourth quarter of 2024 increased to $0.64 per share from $0.60 per share in the fourth quarter of 2023. For the reconciliations of GAAP net income to Adjusted (non-GAAP) operating earnings, refer to the tables beginning on page 5.

GAAP net income and Adjusted (non-GAAP) operating earnings in the fourth quarter of 2024 primarily reflect:

Higher utility earnings primarily due to distribution rates at BGE, distribution and transmission rate increases at PHI, a tax repairs deduction at PECO, lower contracting costs at PHI, lower storm costs at PECO and PHI, and a higher distribution rate base as well as a higher return on regulatory assets primarily due to an increase in asset balances at ComEd. This was partially offset by MYP reconciliation impacts at BGE; timing of distribution earnings, lower allowed ROE, the absence of a return on the pension asset within distribution earnings, and lower carrying costs related to the CMC regulatory asset at ComEd; and higher depreciation and amortization and interest expense at BGE and PHI. Note that rate increases are associated with updated recovery rates for costs and investments to serve customers.
Lower costs at the Exelon holding company primarily due an absence of realized losses from hedging activity.

Full Year 2024

Exelon's GAAP net income for 2024 increased to $2.45 per share from $2.34 per share in 2023. Adjusted (non-GAAP) operating earnings for 2024 increased to $2.50 per share from $2.38 per share in 2023.

GAAP net income and Adjusted (non-GAAP) operating earnings for the full year 2024 primarily reflect:

Higher utility earnings primarily due to distribution rates at BGE, distribution and transmission rate increases at PHI, less unfavorable weather at PECO, a higher return on regulatory assets primarily due to an increase in asset balances and higher transmission peak load at ComEd, lower contracting costs at PHI, a tax repairs deduction at PECO, and favorable impacts of the multi-year plan reconciliations at Pepco. This was partially offset by higher interest expense at PECO, BGE, and PHI; lower impacts of the MYP reconciliations at BGE; higher depreciation and amortization expense at PECO, BGE, and PHI; lower allowed ROE, the absence of a return on the pension asset within distribution earnings, and lower carrying costs related to the CMC regulatory asset at ComEd; and higher credit loss expense at PECO and BGE. Note that rate increases are associated with updated recovery rates for costs and investments to serve customers.
Higher costs at the Exelon holding company due to higher interest expense. This was partially offset by an absence of realized losses from hedging activity.

Operating Company Results¹

ComEd

ComEd's fourth quarter of 2024 GAAP net income decreased to $243 million from $268 million in the fourth quarter of 2023. ComEd's Adjusted (non-GAAP) operating earnings for the fourth quarter of 2024 decreased to $243 million from $269 million in the fourth quarter of 2023, primarily due to timing of distribution earnings, lower allowed distribution ROE, the absence of a return on the pension asset within distribution earnings, and lower carrying cost recovery related to the CMC regulatory asset, partially offset by higher distribution rate base, and higher return on regulatory assets primarily due to an increase in asset balances. Due to revenue decoupling, ComEd's distribution earnings are not intended to be affected by actual weather or customer usage patterns.

PECO

PECO's fourth quarter of 2024 GAAP net income increased to $195 million from $153 million in the fourth quarter of 2023. PECO's Adjusted (non-GAAP) operating earnings for the fourth quarter of 2024 increased to $196 million from $154 million in the fourth quarter of 2023, primarily due to higher tax repair deductions and lower storm costs.

BGE

BGE's fourth quarter of 2024 GAAP net income decreased to $175 million from $199 million in the fourth quarter of 2023. BGE's Adjusted (non-GAAP) operating earnings for the fourth quarter of 2024 decreased to $175 million from $199 million in the fourth quarter of 2023, primarily due to lower impacts of multi-year plans reconciliations, higher depreciation and amortization expense, and higher interest expense, partially offset by distribution rates. Due to revenue decoupling, BGE's distribution earnings are not intended to be affected by actual weather or customer usage patterns.

PHI

PHI's fourth quarter of 2024 GAAP net income increased to $138 million from $101 million in the fourth quarter of 2023. PHI's Adjusted (non-GAAP) operating earnings for the fourth quarter of 2024 increased to $132 million from $102 million in the fourth quarter of 2023, primarily due to distribution and transmission rate increases and a decrease in contracting and storm costs, partially offset by increases depreciation and amortization and interest expense. Due to revenue decoupling, PHI's distribution earnings related to Pepco Maryland, DPL Maryland, Pepco District of Columbia, and ACE are not intended to be affected by actual weather or customer usage patterns.

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¹Exelon's four business units include ComEd, which consists of electricity transmission and distribution operations in northern Illinois; PECO, which consists of electricity transmission and distribution operations and retail natural gas distribution operations in southeastern Pennsylvania; BGE, which consists of electricity transmission and distribution operations and retail natural gas distribution operations in central Maryland; and PHI, which consists of electricity transmission and distribution operations in the District of Columbia and portions of Maryland, Delaware, and New Jersey and retail natural gas distribution operations in northern Delaware.

Initiates Annual Guidance for 2025

Exelon introduced a guidance range for 2025 Adjusted (non-GAAP) operating earnings of $2.64-$2.74 per share. There are no adjustments between 2025 projected GAAP earnings and Adjusted (non-GAAP) operating earnings currently.

Recent Developments and Fourth Quarter Highlights

Dividend: On February 12, 2025, Exelon's Board of Directors declared a regular quarterly dividend of $0.40 per share on Exelon's common stock. The dividend is payable on March 14, 2025, Exelon shareholders of record as of the close of business on February 24, 2025.
Rate Case Developments:
- ComEd Distribution Formula Rate Reconciliation: On October 31, 2024, the Illinois Commerce Commission (ICC) issued a final order under Rider Delivery Service Pricing Reconciliation. The ICC approved a total requested revenue requirement increase of $623 million, reflecting an ROE of 9.89%. The 2024 filing reconciled the delivery service rates in effect in 2023 with the actual delivery service costs incurred in 2023.
- ComEd Refiled Grid Plan and Multi-Year Rate Plan (MRP): On December 19, 2024, the ICC approved the Refiled Grid Plan and adjusted the approved MRP with rates effective on January 1, 2025. The final order is inclusive of rate increases of approximately $752 million in 2024, $80 million in 2025, $102 million in 2026, and $111 million in 2027, reflecting an ROE of 8.905%.
- Pepco District of Columbia Electric Distribution Base Rate Case: On November 26, 2024, the Public Service Commission of the District of Columbia (DCPSC) approved Pepco's multi-year plan for January 1, 2025 through December 31, 2026. The DCPSC awarded Pepco electric incremental revenue requirement increases of $99 million and $24 million for 2025 and 2026, respectively, reflecting an ROE of 9.5%.
- PECO Pennsylvania Electric Distribution Rate Cases: On December 12, 2024 the Pennsylvania Public Utility Commission (PAPUC) issued a final order approving a $354 million increase in PECO's annual electric rates. The rate increase was resolved through a settlement agreement, which did not specify an approved ROE. The rates are effective on January 1, 2025.
- PECO Pennsylvania Natural Gas Distribution Rate Case: On December 12, 2024 the PAPUC issued a final order approving a $78 million increase in PECO's annual natural gas rates. The rate increase was resolved through a settlement agreement, which did not specify an approved ROE. The rates are effective on January 1, 2025.
Financing Activities:
- There were no financing activities in the fourth quarter.

Adjusted (non-GAAP) Operating Earnings Reconciliation

Adjusted (non-GAAP) operating earnings for the fourth quarter of 2024 do not include the following items (after tax) that were included in reported GAAP net income:

(in millions, except per share amounts)	Exelon Earnings per Diluted Share			Exelon			ComEd		PECO		BGE		PHI
2024 GAAP net income	$	0.64		$	647		$	243	$	195	$	175	$	138
Environmental costs (net of taxes of $5)		(0.01	)		(12	)		—		—		—		(12	)
Asset retirement obligation (net of taxes of $3)		0.01			8			—		—		—		8
Cost management charge (net of taxes of $1, $0, and $1, respectively)		—			2			—		1		—		1
Income tax-related adjustments (entire amount represents tax expense)		—			(3	)		—		—		—		(3	)
2024 Adjusted (non-GAAP) operating earnings	$	0.64		$	642		$	243	$	196	$	175	$	132

Adjusted (non-GAAP) operating earnings for the fourth quarter of 2023 do not include the following items (after tax) that were included in reported GAAP net income:

(in millions, except per share amounts)	Exelon Earnings per Diluted Share			Exelon			ComEd		PECO		BGE		PHI
2023 GAAP net income	$	0.62		$	617		$	268	$	153	$	199	$	101
Mark-to-market impact of economic hedging activities (net of taxes of $6)		(0.02	)		(17	)		—		—		—		—
Separation costs (net of taxes of $1, $1, $0, $0, and $0, respectively)		—			3			1		1		1		1
2023 Adjusted (non-GAAP) operating earnings	$	0.60		$	603		$	269	$	154	$	199	$	102

Adjusted (non-GAAP) operating earnings for the full year of 2024 do not include the following items (after tax) that were included in reported GAAP net income:

(in millions, except per share amounts)	Exelon Earnings per Diluted Share			Exelon			ComEd		PECO		BGE		PHI
2024 GAAP net income	$	2.45		$	2,460		$	1,066	$	551	$	527	$	741
Environmental costs (net of taxes of $5)		(0.01	)		(13	)		—		—		—		(13	)
Asset retirement obligations (net of taxes of $3)		0.01			8			—		—		—		8
Change in FERC audit liability (net of taxes of $13)		0.04			42			40		—		—		—
Cost management charge (net of taxes of $4, $0, $2, $0, and $2, respectively)		0.01			13			—		5		1		6
Income tax-related adjustments (entire amount represents tax expense)		—			(3	)		—		—