A Cornerstone of The Exelon Promise, Transmission Security Agreements Shield Families and Small Businesses from Unfair Cost Shifts, Including Those Driven by Data Centers, Amid Power Generation Shortfalls

Exelon has secured more than $1 billion in customer protections through pioneering Transmission Security Agreements (TSAs), a major milestone in advancing the Exelon Promise to protect families and small businesses and keep bills as low as possible by ensuring large new power users cover their fair share of the costs of the transmission system used to serve customers.

As artificial intelligence, electrification, advanced manufacturing and economic development accelerate U.S. energy demand, limited electric supply is driving up costs. TSAs require large new energy users to commit to covering the cost of their projected transmission service needs so those costs aren’t passed on to families and small business customers.

"Customers are frustrated with the rising costs of energy, and so are we," said Calvin Butler, President and CEO of Exelon. "As electricity demand grows and supply struggles to keep pace, we’re focused on keeping customer bills as low as possible while ensuring the grid can support future economic growth. These agreements are a cornerstone of the Exelon Promise, putting customers first by making sure large new energy users contribute fairly to their infrastructure needs."

While Exelon’s utilities do not control most of a customer’s bill, the company is responsible for safely and reliably delivering electricity — and is focused on keeping those costs as low as possible.

TSAs require new large load customers, including data centers, to commit to revenue contributions for transmission service before significant system planning and investment occurs. These agreements, filed with and subject to review by the Federal Energy Regulatory Commission (FERC), help ensure families and small businesses are not burdened with costs from projects that are delayed, scaled back or do not move forward.

Recent action by FERC related to how large loads connect to the grid and are held accountable for costs reflects growing recognition of the need for approaches that balance timely infrastructure development with protections for existing customers. Exelon’s TSA framework aligns with these principles by helping ensure new demand is supported in a way that is fair to all customers.

TSAs are one component of the Exelon Promise, the company’s approach to keeping costs as low as possible, including providing direct customer relief, negotiating customer protections, identifying operational efficiencies and forging long-term solutions to address the root causes of rising energy costs. While additional power generation will be needed to help lower costs over time, Exelon is focused on putting these protections in place now.

"We need more generation on the system to help bring down energy costs," said Butler. "At the same time, we’re not waiting. We’re taking action now to protect families and small businesses by ensuring new large customers pay their fair share."

Exelon continues to work with regulators, customers, policymakers and other stakeholders to implement TSAs consistently across its footprint and support continued grid investment.

About Exelon

Exelon (NASDAQ:EXC) is a Fortune 200 company and one of the nation’s largest utility companies, serving almost 11 million customers through six fully regulated transmission and distribution utilities — Atlantic City Electric, BGE, ComEd, Delmarva Power, PECO, and Pepco. Exelon’s more than 20,000 employees dedicate their time and expertise to supporting our communities through reliable, affordable and efficient energy delivery, workforce development, equity, economic development and volunteerism. Follow @Exelon on X and LinkedIn.

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Amy Lupica

Corporate Communications

amy.lupica@exeloncorp.com