EXELON CORP

Exelon Corporation is a utility services holding company that, through its six regulated utility subsidiaries — Commonwealth Edison Company (ComEd), PECO Energy Company (PECO), Baltimore Gas and Electric Company (BGE), Potomac Electric Power Company (Pepco), Delmarva Power & Light Company (DPL), and Atlantic City Electric Company (ACE) — is engaged in the purchase, transmission, distribution, and sale of electricity and natural gas to retail customers. The company operates exclusively in the regulated electric and natural gas utility industry across Illinois, Pennsylvania, Maryland, Delaware, New Jersey, the District of Columbia, and Virginia. The filing does not disclose an overall market size or growth rate for the industry, nor does it name specific structural forces shaping competition beyond the regulatory frameworks governing each jurisdiction.

The filing does not name any primary competitors or provide market share data. Exelon's stated competitive advantages are rooted in its regulated utility model: each utility subsidiary operates as a regulated monopoly within its service territory, with rates and returns set by state public utility commissions and the Federal Energy Regulatory Commission (FERC). The company emphasizes its ability to earn a return on and of its invested capital through formula-rate mechanisms, multi-year rate plans, and cost-recovery riders, which collectively provide a degree of earnings stability and predictability.

Exelon generates revenue exclusively through regulated utility operations, consisting of the transmission and distribution of electricity and the distribution and transportation of natural gas. Revenue is derived from rates approved by state and federal regulators, with the majority of revenue coming from electric operations. The company's customer segments include residential, small commercial and industrial, large commercial and industrial, public authorities and electric railroads, and other customers. The filing describes no recurring versus transactional income split, nor any platform or ecosystem dynamics.

Exelon's operations are organized into six reportable segments, each corresponding to a utility subsidiary. For the year ended December 31, 2025, ComEd reported total electric revenue of $7,486 million ¹ and total gas revenue of $0 million ²; PECO reported total electric revenue of $3,268 million ³ and total gas revenue of $1,003 million ⁴; BGE reported total electric revenue of $3,448 million ⁵ and total gas revenue of $1,142 million ⁶; and Pepco Holdings (comprising Pepco, DPL, and ACE) reported total electric revenue of $4,397 million ⁷ and total gas revenue of $282 million ⁸. The filing does not disclose segment-level margins or profitability figures.

The filing does not provide a separate product and service line breakdown beyond the electric and gas revenue categories already described for each segment.

During 2025, Exelon and its subsidiaries were active in multiple regulatory proceedings. ComEd received an order from the Illinois Commerce Commission on December 19, 2024, in its 2023 Electric Distribution Base Rate Case, approving a $351 million ⁹ annual rate increase, with a multi-year plan providing for annual increases of $50 million ¹⁰ in 2025, $50 million ¹¹ in 2026, and $50 million ¹² in 2027. PECO received an order on December 12, 2024, in its Pennsylvania 2024 Electric Distribution Base Rate Case, approving a $127 million ¹³ annual increase, and in its Pennsylvania 2024 Natural Gas Distribution Base Rate Case, approving a $28 million ¹⁴ annual increase. BGE received an order on December 14, 2023, in its Maryland 2023 Electric Distribution Base Rate Case, approving a $148 million ¹⁵ annual increase, and in its Maryland 2023 Gas Distribution Base Rate Case, approving a $62 million ¹⁶ annual increase. Pepco received an order on November 26, 2024, in its District of Columbia 2023 Electric Distribution Base Rate Case, approving a $19 million ¹⁷ annual increase, and on June 10, 2024, in its Pepco Maryland 2023 Electric Distribution Base Rate Case, approving a $58 million ¹⁸ annual increase. DPL received an order on December 17, 2025, in its Delaware 2024 Natural Gas Distribution Base Rate Case, approving a $5 million ¹⁹ annual increase. ACE received an order on November 21, 2025, in its New Jersey 2024 Electric Distribution Base Rate Case, approving a $27 million ²⁰ annual increase. Additionally, on December 22, 2025, the Maryland Public Service Commission approved BGE's request to defer storm costs of $44 million ²¹ and conduit costs of $6 million ²² as regulatory assets. The filing does not disclose any share repurchases, debt redemptions, or new debt facilities during the period.

For the year ended December 31, 2025, Exelon reported total operating revenues of $24,726 million ²³, compared to $25,447 million ²⁴ in 2024 and $25,440 million ²⁵ in 2023. Net income attributable to common shareholders was $2,518 million ²⁶ in 2025, compared to $2,409 million ²⁷ in 2024 and $2,328 million ²⁸ in 2023. Diluted earnings per share were $2.57 ²⁹ in 2025, compared to $2.42 ³⁰ in 2024 and $2.33 ³¹ in 2023. Operating income was $4,430 million ³² in 2025, compared to $4,218 million ³³ in 2024 and $4,018 million ³⁴ in 2023. Net cash flows from operating activities were $7,205 million ³⁵ in 2025, compared to $6,826 million ³⁶ in 2024 and $6,495 million ³⁷ in 2023.

Exelon's primary growth vector is its capital investment program in regulated utility infrastructure, which is recovered through approved rate mechanisms. The filing states that the company expects to invest approximately $34.5 billion ³⁸ over the four-year period from 2026 through 2029 in its utility businesses, with approximately $8.5 billion ³⁹ planned for 2026. These investments are focused on transmission and distribution system reliability, resiliency, and modernization, including grid hardening, advanced metering infrastructure, and technology upgrades. The company expects to earn a return on these investments through formula-rate mechanisms and multi-year rate plans across its jurisdictions.

A second growth vector is the ongoing execution of multi-year rate plans and formula-rate mechanisms that provide annual rate increases. ComEd's multi-year plan provides for annual distribution rate increases of $50 million ⁴⁰ in 2026 and $50 million ⁴¹ in 2027. BGE's multi-year plan provides for annual distribution rate increases of $30 million ⁴² in 2025 and $30 million ⁴³ in 2026. Pepco's Maryland multi-year plan provides for annual distribution rate increases of $18 million ⁴⁴ in 2025, $18 million ⁴⁵ in 2026, and $18 million ⁴⁶ in 2027. These pre-approved rate trajectories support predictable revenue growth.

The filing does not discuss margin trajectory, cost structure evolution, or specific efficiency or restructuring targets.

The filing does not discuss supply chain posture, manufacturing capacity, technology infrastructure investments beyond the capital expenditure plan, or headcount or workforce strategy.

Capital expenditures are planned at approximately $8.5 billion ⁴⁷ for 2026 and approximately $34.5 billion ⁴⁸ over the 2026-2029 period. The filing does not disclose R&D spending levels, share repurchase authorization amounts, or dividend policy with exact figures.

The filing identifies several headwinds and constraints. The company's results are subject to the regulatory process, and there is no assurance that regulators will approve requested rate increases or allow full recovery of costs. The company faces exposure to credit losses from customers, with an allowance for credit losses of $1,065 million ⁴⁹ as of December 31, 2025. The company is also subject to the risk of work stoppages, as evidenced by a $27 million ⁵⁰ regulatory asset recorded at ACE related to a work stoppage. Additionally, the company faces risks related to the timing and amount of storm cost deferrals and recoveries, with $44 million ⁵¹ in deferred storm costs approved by the Maryland Public Service Commission in December 2025.

The filing does not discuss geographic or macro factors as constraints beyond the regulatory and credit risks already noted.

Exelon's most material risk is regulatory disallowance or delay in recovering its significant capital investments, as the company plans to invest approximately $34.5 billion ⁵² from 2026 through 2029, and any failure to obtain timely rate relief could impair returns. The company also faces credit risk from customers, with an allowance for credit losses of $1,065 million ⁵³ as of December 31, 2025, which could increase if economic conditions deteriorate. Operational risks include exposure to severe weather events, as evidenced by $44 million ⁵⁴ in deferred storm costs approved for recovery in Maryland, and work stoppages, with ACE recording a $27 million ⁵⁵ regulatory asset related to a work stoppage. Additionally, the company's utilities are subject to the risk of disallowance of costs in regulatory proceedings, such as the $48 million ⁵⁶ pre-tax impairment charge recorded by BGE in 2022 for an office building, which illustrates the potential for asset impairments if costs are deemed unrecoverable.

Management's message to shareholders, as conveyed through the filing's business description and MD&A, emphasizes the company's focus on executing its regulated utility investment strategy and achieving constructive regulatory outcomes. The tone is forward-looking and centered on the company's capital investment plan of approximately $34.5 billion ⁵⁷ over the 2026-2029 period and approximately $8.5 billion ⁵⁸ in 2026. The strategic priorities emphasized are: (1) investing in grid reliability, resiliency, and modernization to support the energy transition and customer expectations; (2) securing timely and adequate rate relief through regulatory proceedings to recover investments and earn a fair return; and (3) maintaining financial discipline and operational excellence to support the investment program and credit quality.