EXELON CORP — Call Transcript 2026

Hello, and welcome to Exelon's fourth quarter earnings call. My name is Gigi, 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 one one on your telephone keypad. If you would like to view the presentation in a 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 your 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. Great. Thank you, Gigi. Good morning, everybody. Thank you for joining us for our 2025 fourth quarter earnings call. Leading the call today are Calvin Butler, Exelon's President and Chief Executive Officer, and Jeanne Jones, Exelon's Chief Financial Officer. Other members of Exelon's senior management team are also with us today, and they'll 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 in the investor relations section of Exelon's website. I'd 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 2 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 and in our earnings release. With that, it's now my pleasure to turn the call over to Calvin Butler, Exelon's President and CEO. Thank you, Ryan, and congratulations on the new role, and good morning to everyone. We appreciate everyone joining us today for our fourth quarter earnings call. As we reflect on another successful year and celebrate the close of our 25th anniversary, we're proud to once again deliver exceptional results for our customers, employees, and investors. Across Exelon, our companies bring more than 800 years of collective experience. Even with that long view, this moment stands out. The industry is changing at a speed and scale rarely seen. With that comes both great responsibility and opportunity. I've never been more confident that Exelon has the people, the discipline, and the platform to continue to lead the energy transformation and meet this unprecedented demand. This is underscored by our recent results. As you saw from this morning's release, we delivered another strong year. For 2025, we reported adjusted operating earnings per share of $2.77, delivering above expectations. This continues our track record of exceeding the midpoint of guidance in each year as a standalone utility. Since 2021, we've achieved a 7.4% annual earnings growth rate and 8% rate base growth through 2025, highlighting our ability to navigate changes and consistently execute. This steady performance is a direct result of a continued focus on affordability and our ability to deliver investments that directly benefit our customers, providing above average performance at below average rates. It was also another exceptional year operation. Exelon continues to set the standard for the industry. Our utilities maintain top quartile reliability metrics once again, and we're ranked one, two, four, and seven amongst our peers based on 2024 benchmarking data. This level of performance is nothing new. In fact, we've delivered top quartile reliability for over a decade. It's who we are and centered to our mission. But don't get me wrong, consistency does not come easy. It's the direct result of a culture of continuous improvement, innovation, and a steadfast focus on targeted investments that maximize value for our customers. These investments not only prevent outages and deliver best-in-class service, but they directly benefit local economies, with every $1 million invested, creating 8 jobs or $1.6 million of economic output. I am truly humbled by the commitment and sacrifice of our employees that make this level of service possible. Recently, their dedication was on full display during Winter Storm Fern. Despite record low temperatures, our investments withstood heavy snow and icing across our territories, maintaining strong reliability with only minimal disruptions. Fewer than 1% of our customers experienced outages, even as the extreme weather impacted our regions. This reflects the tremendous work of our employees over the past decade to invest in the safety, reliability, and resiliency of our system. The performance is remarkable when accounting for the scale of the storm, as well as the demand put on the grid. Fern resulted in the PJM RTO experiencing 5 days in a row of peak load ranging from 135 GW-140 GW, reaching 97% of the all-time winter peak. Our investments, combined with our employees' around-the-clock dedication, kept nearly 11 million electric and gas customers safe and warm when they needed us most. I'd like to express my gratitude to all of our employees who have supported storm restoration efforts locally and afar. Thank you for all that you do. Over the last quarter, we also made significant progress on the regulatory front. As Jeanne will detail shortly, it's been an active few months. We've achieved several key milestones, including final settlements for the Atlantic City Electric and Delmarva Gas rate cases, reconciliation orders at ComEd and BGE, and the filing of ComEd's second multi-year grid plan. This progress is built on a foundation of hard-earned trust. We work collaboratively with stakeholders and our communities to ensure that our investments align with the specific goals and needs of the states we serve. Looking ahead, we now expect to invest $41.3 billion of capital to support our customers, with more than 70% of the plan over plan increase driven by transmission, where we continue to have a unique opportunity and significant momentum. Our size and scale, multi-state footprint, and operational expertise position our utilities to capitalize on the growing need for transmission investments in reliability and resiliency, accelerated by the pace of new business growth. This progress is further evidenced by our success in the recent PJM Reliability Window results, where $1.2 billion of incremental Exelon investment was recommended, including a jointly developed solution with NextEra. This comes on the heels of other recent large-scale transmission awards, including Brandon Shores, Tri-County, and the MISO Tranche 2.1 project. You should expect us to be active in future windows within PJM and other ISOs, leveraging our competitive advantages where appropriate. And we continue to see robust demand in our jurisdictions, with anticipated load growth exceeding 3% through 2029. This is further reinforced by our large load pipeline, which is now further supported by an increasing number of signed Transmission Security Agreements or TSAs. Overall, our pure transmission and distribution capital plan is unique and truly differentiated. It's highly diversified across seven regulatory jurisdictions, including FERC, with no one jurisdiction greater than 30% and no single project comprising more than 3% of the plan. It's also actionable. We have line of sight to each project that comprises the $41.3 billion, with a significant pipeline of incremental projects over the next 5-10 years and the size and scale to execute efficiently. With continued returns on equity in the 9%-10% range, we expect rate base growth of approximately 8% and annualized earnings growth of 5%-7% through 2029, with the expectation of being near the top end of that range. We will continue to fund investments in a balanced and disciplined manner that maintains a strong balance sheet. For 2026, we are initiating operating earnings guidance of $2.81-$2.91 per share. Our continued progress is clearly demonstrated by the scorecard on slide five, where we've once again met or exceeded every goal we set at the start of the year. At Exelon, commitments made are commitments met, that discipline and credibility define who we are and shape how our teams operate every day. In addition to strong operational and financial performance, we continue to lead on customer affordability, which remains a top priority. We continuously drive costs out of the business through efficiency and innovation, maintaining a track record of cost growth well below inflation. In the past year, we executed a $60 million customer relief fund to support low and moderate-income customers facing higher supply costs. We advanced innovative TSAs that prioritize large loads while ensuring existing customers remain protected. Our award-winning energy efficiency programs continue to deliver meaningful savings. We expanded connections of distributed resources, giving customers more ways to participate and save. We are steadfast in introducing innovative tools and processes to connect customers to low-income assistance. We continue to focus on actions like these that are directly within our control, in addition to delivering safe, reliable energy while keeping bills as low as possible. In the meantime, we are also actively partnering with federal, RTO, and state leaders to address high supply prices and emerging reliability risks. The supply challenge is real, but not insurmountable. We're encouraged by the growing national focus, including the recent announcement from the White House and our state governors, advancing policies to incent new generation and improve affordability. As we've said before, we firmly believe it's going to require an all-of-the-above strategy that includes utility-generated, demand-side, and merchant solutions. This was further supported by the study released last week by Charles River Associates. The report is an urgent call to action, highlighting the risk of the status quo and the cost and reliability benefits of utility-generated energy. Specifically, they note that utility-generated power could have saved total PJM customers $9.6 billion-$20 billion in the 2028, 2029 delivery year. While reducing the risk of potential future outages from energy shortages by approximately 85%. We are committed to continue to work with all stakeholders to advance policies that strengthen energy security as quickly and cost effectively as possible. Finally, I want to take a moment to reiterate why our platform and approach is best positioned for the years to come. As highlighted on slide 6, our foundation is based upon a customer focus and industry-leading operations. With our size and scale, constructive regulatory frameworks, and diversified footprint and capital plan, we have a disciplined and defensive foundation that is resilient. Yet, at the same time, we're well-positioned to capture credible, meaningful opportunities for sustainable growth. We're excited about where we're headed. Our platform is designed to deliver an attractive, risk-adjusted return and long-term value for all stakeholders. I'll now turn the call to Jeanne to dive deeper into our 2025 results and share more details on our updated long-term plan. Jeanne? Thank you, Calvin, and good morning, everyone. Today, I will cover our fourth quarter and full-year results, key regulatory developments, and updates to our financial disclosures, including 2026 guidance. Starting on slide 7, as Calvin noted, since becoming a standalone utility, we have continued to execute, and 2025 adds to that track record. In 2025, we delivered $2.73 per share on a GAAP basis and $2.77 per share on a non-GAAP basis for the full year, reflecting strong year-over-year growth. For the quarter, Exelon earned $0.58 on a GAAP basis and $0.59 on a non-GAAP basis. Full-year earnings above our guidance range primarily benefited from favorable weather and storm conditions and the resolution of certain regulatory proceedings. Throughout the year, we also managed costs well across the platform, ensuring we could accommodate a range of outcomes while monitoring regulatory activity and weather in the fourth quarter. Quarter-to-date and year-to-date drivers relative to prior year can be found on appendix slides 37 and 38. Turning to slide 8, we are initiating 2026 operating earnings guidance of $2.81-$2.91 per share. With much of our growth aligned with completed rate cases and continued strong cost management, the 2026 implied midpoint relative to the midpoint of our 2025 estimated guidance range is ahead of previous disclosures, reflecting midpoint-to-midpoint growth above 6%. Our performance in 2025 underscores our ability to deliver strong financial results amid uncertainty, all while operating at industry-leading levels and innovating to find new and creative ways to support our customers. We've executed operational efficiencies, capitalized on our growth opportunities, and identified more ways than ever to support our customers. We look forward to furthering this progress in 2026. Looking ahead to the first quarter, we expect earnings to be approximately 31% of the midpoint of our projected full-year earnings guidance range, which is in line with historical averages. This accounts for completed regulatory filings, anticipated revenue shaping, and O&M timing, as well as normal weather and storm conditions throughout the quarter. Turning to slide 9, we executed another busy regulatory calendar in 2025, marking significant milestones and reaching final resolution on open reconciliations and key rate cases, providing cost recovery for the next several years. Starting with Atlantic City Electric, in November, the New Jersey Board of Public Utilities approved a settlement supporting the recovery of $54 million associated with grid improvements and modernization investments in line with New Jersey's Energy Master Plan and the Clean Energy Act at a 9.6% ROE. New rates went into effect at the beginning of December 2025. Also in December, the Delaware Public Service Commission issued a final order on the Delmarva Power Gas rate case, approving a settlement that supports a $21.5 million revenue requirement and 9.6% ROE, recovering various reliability investments and LNG plant upgrades, which protect customers from price volatility during peak periods. Rates went into effect at the beginning of this year. In addition to closing out base rate case activity, we also received final orders in our open reconciliations at BGE and ComEd in December, now gaining clarity on the recovery of our investments from 2023 and 2024. While we were disappointed to receive about half of the BGE reconciliation, we realigned capital accordingly. Finally, moving to our core regulatory activity for 2026, the Pepco Maryland base rate case continues to progress according to the procedural schedule, with intervener testimony filed at the end of last month. A final order is expected in August this year. In December, Delmarva Power filed an electric base rate case in Delaware, requesting a net revenue increase of $44.6 million to support system reliability investments, storm remediation, and storm damage costs. DPL also requested to implement a bill stabilization adjustment, which will offer customers more predictability as seasonal temperatures grow increasingly volatile. DPL expects to be able to implement interim rates in effect on July 9th. Finally, on January 16th, ComEd filed its multi-year grid plan in Illinois, requesting an approval of an investment plan covering 2028 through 2031 in support of the priorities laid out in the state's CEJA and CRGA bills. A final order is expected in December, and the company expects to file its next rate filing in 2027. On slide 10, we provide updated utility CapEx and rate base outlook through 2029. We plan to invest almost $10 billion in 2026 and a total of $41.3 billion over the next four years, an increase of $3.3 billion or 9% from the prior four-year planning period. Incremental investments reflect updates to align with recently approved rate cases and jurisdictional priorities, and an increase in transmission investments. Of the overall increase, approximately 70% or $2.3 billion, is attributable to incremental transmission investments, driven by the structural trends that underpin the energy transformation in our jurisdictions. Increased demand for high voltage investments and capacity expansion to support large load growth, evolving generation supply, and the reliability and resiliency needs of grid customers to withstand increasingly volatile weather. In fact, the majority of the additional transmissions relates to continued system performance and capacity expansion across our platform, supporting incremental data center load in addition to the gradual replacement of an aging network. Our plan also includes an additional year of investment of our two largest transmission projects, Brandon Shores and Tri-County, going into service in 2028 through 2030, along with the early spend of the MISO Tranche 2.1 project, which goes into service in 2034. Our annualized rate base growth of 7.9% over the next four years reflects an increase from the prior year plan, with a projected addition of nearly $23 billion in rate base from 2025-2029. Having executed within 2% of our capital plan since 2023, we are confident we will execute this next stage of growth, driving progress towards economic and energy goals, and always prioritizing our customer needs in everything that we do. Moving to slide 11, our size and scale, award-winning reliability, and expertise in owning and operating 765 kV lines, uniquely position us to capitalize on additional transition opportunities that enable us to grow our transmission rate base CAGR by over 15% from 2025 through the end of the guidance period. Coupled with our strength and execution, we now have line of sight to an additional $12 billion-$17 billion of transmission opportunities over the next decade that strengthen and lengthen our plan, of which over 60% includes projects associated with our existing infrastructure, supporting continued reliability, generator deactivations, and providing additional operational flexibility and efficiency. This upside also includes an estimated $1 billion of transmission associated with high density load projects with signed TFAs, where we now have a foundation for additional certainty in our pipeline as agreements are presented to customers coming out of our cluster study process. We also remain optimistic about the work associated with MISO Tranche 2.1, with over $1 billion of investment in our ComEd service territory, which is now awaiting a cost allocation filing at FERC. Beyond these opportunities, we anticipate additional investment required to support our state's public policy goals, particularly as our jurisdictions assess energy security and economic development needs. For example, achieving CEJA's goals and the growing economic development in Illinois will likely require billions in transmission investments. Finally, as we've discussed in prior quarters, success in winning competitively bid projects offer additional upsides. From our success in winning the Tri-County projects to the $1.2 billion in Exelon investment PJM has recommended in this recent window, our size, scale, and expertise positions us well to pursue competitive opportunities outside of our service territories, within and outside of PJM. Our ability to deploy almost $10 billion of capital annually over the next four years is only possible with a rigorous focus on cost management and delivering value through those investments, supporting customer rates, supporting customer bills at rates 19%-20% below national averages. This focus is saving our customers approximately $580 million in O&M annually, relative to what it would have been growing at a standard inflation level over the last decade. We feel confident we can continue to keep our expense growth well below inflation levels, demonstrating nearly flat expense growth from 2024-2026, and targeting no more than 2.5% adjusted O&M growth through 2029. As we talked about last year, our institutionalized team and a One Exelon culture are committed to delivering value. We have taken advantage of our focused operations, along with our size and scale, to continue to standardize and streamline our structure and operations. Driving out $580 million in annual O&M savings is no small task, but it's something our customers and shareholders have come to expect. Exelon's unique platforms and industry best practices enable us to build upon these savings with line of sight to additional opportunities. As investment needs grow to meet unprecedented load growth and reliability needs, our customers remain our top priority. Since 2021, Exelon's portion of the average customer bill 2% of median income has remained relatively flat, growing only 10 basis points while maintaining top quartile reliability, which saved customers $1 billion in avoided outage costs last year alone. We've reduced annual customer interruptions by nearly 2 million since 2021 and made significant economic impact in our community. Since 2021, we've employed 20,000 people, sustained 50,000 jobs, and have fostered nearly $60 billion in economic activity in our communities. Bringing value to our customers is foundational to what we do, and it's why we invest in the grid. That's why we've committed to keeping our O&M costs relatively flat from 2024-2026, and in partnership with our jurisdictions, have committed to support our customers through nation-leading programs and advocacy efforts. Conversely, the supply side of the average monthly residential bill in the Mid-Atlantic has increased up to 80% or more over the last five years. Customers are now paying more for less. Since July 2024, PJM customers have paid more than $32 billion as supply in the market declined 1.2 GW. That's why we continue to be at the forefront for advocating for our customers across federal, PJM, and state levels, ensuring that every dollar customers spend can be tied to additional value they receive. We are pleased that federal discussions propose the extension of the PJM capacity auction collar, saving customers tens of billions of dollars through 2030. But our advocacy efforts don't stop there. We are committed to advocating for other policies, such as interconnection queue and rate design reforms that protect customers and support economic development. Our first of its kind transmission service agreements filed at FERC do just that, providing a clear path to interconnection while protecting existing customers. We believe all solutions are required to support energy security and drive affordability. This includes encouraging state-procured solutions such as utility-generated power, which can bring certainty that the supply will be there, offer our states control, and ultimately benefit our customers. Turning to slide 14, with prudent O&M spending and $41.3 billion of projected capital spend, driving 7.9% rate base growth, along with earning ROEs of 9%-10%, we are projecting compounded annual earnings growth near the top end of 5%-7% from our 2025 guidance midpoint of $2.69 per share through 2029. We continue to build momentum across our jurisdictions as we make progress on Pepco and Delmarva rate cases, the ComEd growth plan, and as BGE prepares to file later this year. We look forward to working with our stakeholders to align on the investments that benefit our customers, enable us to maintain and improve upon our operational excellence, all at a fair return. Maintaining our commitment to transparency, we have provided assumptions associated with our expected annual growth in earnings through 2029 on appendix slide 23. As you can see, we expect to deliver the out years near the top end of the 5%-7% range, allowing for flexibility of rate case timing and keeping us on track to deliver near the top end of our 5%-7% annualized growth rate from 2025-2029. We also continue to project an annual dividend growth at 5% and anticipate paying out a dividend of $1.68 per share in 2026, in line with that growth. Finally, turning to slide 15, I will conclude with a review of our balance sheet and financing activity, where we've continued to de-risk and secure cost-effective capital to invest for the benefit of our customers. In December, Exelon Corporation issued $1 billion in convertible debt, pulling forward almost over half of our planned long-term corporate debt needs for 2026. Through 2029, we expect to fund the $41.3 billion capital plan, with $22 billion of internally generated cash flow, $13 billion of debt at the utilities, and $3 billion of total debt at the holding company, with the balance funded with a modest amount of equity. As a reminder, our policy is to fund incremental capital needs with approximately 40% of equity. Specifically, our total equity needs of $3.4 billion over the 4-year plan implies approximately $850 million of annualized equity needs, less than 2% of Exelon's annual market cap. We have already made progress on 20% of these equity needs, having priced $700 million in 2025 using forward contracts under our ATM. Our financial plan has been designed to accommodate the use of other fixed income securities that receive equity credit in place of senior debt at our holding company. Identifying opportunities to mitigate risk and maintaining a strong balance sheet continues to be core to our strategy. Ending 2025, our average credit metrics of 13.5% exceeded our downgrade threshold of 12% at Moody's by 150 basis points. With our balanced funding strategy in place, we target credit metrics of 14% over the planning period, providing 100-200 basis points of financial flexibility on average over our downgrade thresholds at S&P and Moody's throughout our guidance period. We also continue to advocate for language that incorporates all tax repairs for calculating the Corporate Alternative Minimum Tax, which is now reflected in our disclosures. As a reminder, without the implementation of tax repair deduction, our anticipated consolidated credit metrics would average over the plan closer to 13%. Supported by our history of execution, I want to close by reiterating our confidence, not only in the plan we have laid out, but also in the broader opportunity we have to deliver value for our customers and our shareholders for another 25 years and beyond. I'll now turn it back to Calvin for his closing remarks. Thank you, Jeanne. As we look ahead to 2026, our priorities are clear and aligned with what matters most to our customers, communities, policymakers, and investors. We have a track record of meeting our commitments, and we will continue to focus on what we do best: executing our capital plan efficiently and maintaining industry-leading operational performance to benefit our customers, driving affordability through disciplined cost management, prudent investment, and active stakeholder engagement, and pursuing growth and innovative customer solutions. We have the right people, platform, and strategy to continue delivering on these commitments. In 2026, we expect to deploy $10 billion in capital, earning a consolidated 9%-10% operating return on equity. We anticipate delivering operating earnings of $2.81-$2.91 per share, with the goal of being midpoint or better. And finally, we will execute a balanced funding strategy that maintains and strengthens our balance sheet. Serving approximately 11 million customers across some of the largest and most economically vital metropolitan areas in the country is a responsibility we do not take lightly. Our infrastructure is essential to the economic future of the regions we serve, and we honor that responsibility through disciplined execution, operational excellence, and a relentless focus on the people who depend on us every day. We are proud of our track record of execution. The sector continues to evolve at a breakneck pace, but Exelon remains steadfast in its priorities, consistently delivering as a proven leader. Gigi, we can now open it up for questions. Thank you. If you would like to ask a question, simply press star one one on your telephone keypad. Our first question comes from the line of Nicholas Campanella from Barclays. Good morning, Nick. Hey, Nick. Hey, good morning, everyone. Thanks for the updates. Appreciate it. So great to see the 5%-7% outlook refresh near the upper end here. I think just maybe could you comment quickly on, you know, the rate-based growth is near 8%. You do have financing lag against that, you know, which maybe would be greater than 1% financing lag between equity needs and debt funding. So just what's the tailwind to the plan to kind of keep you at the high end of the 5%-7% outlook? Yeah, I think I'll start with kind of, you know, what we've done, right? Which is, if you look back since 2021, we've had actual rate base growth of about 8% and earnings growth of 7.4%. So I think it's really just a continuation of that track record. But if you look at where rate base is at the end of 2029, and you kind of assume, you know, half equity, and then you look at our earned ROEs over the last four years, I think you can get, you know, to an EPS number that then, to your point, you got to back off financing costs. But I think if you look at kind of the equity needs, the sort of assume an average, you know, debt cost, but then I think what you might be missing is the AFUDC associated with transmission capital. And so if you look at that and how much we're growing transmission over that period, that'll get you to kind of the near top end, Nick. Okay, great. Great. And then I know that you probably are assuming a range of regulatory outcomes here, but maybe you can just kind of comment on, given so much focus on Pennsylvania, how you're thinking about regulatory strategy for 2026, whether you'd file in 2026 or wait until 2027, and then any kind of considerations there for the timing of rate cases and how that can kind of impact where you are within this 5%-7%? Thank you. Yeah, no problem, Nick. I will tell you this, is that we are constantly in conversations with all of our stakeholders, and that goes from the governors to the regulatory bodies, to talk about what makes sense to the jurisdictions and their our customers. And with affordability at front and center in all of our jurisdictions, we lean into that first. But we also recognize that we have to maintain a reliable and resilient grid. So to your point, we're looking at what we are going to do in Pennsylvania and what we're gonna do in Maryland. I think in our documents, we've already laid out that we're filing in Maryland this year, and we're considering what is the best approach to action in Pennsylvania. But we will keep you updated on that. Right now, please keep in mind, everything centers on affordability and maintaining a reliable system. Yeah, and to your point, Nick, the disclosure kind of accommodate a variety of scenarios. So looking at a variety of scenarios around rate case timing, we feel confident in that. You know, the 8% rate base growth, the earned ROEs, and the, you know, sort of manageable amount of equity, delivers that, you know, 5%-7% near the top end. Great. And then just, you know, Calvin, if I could squeeze one more in, you talked about in your prepared remarks, just supply being a real challenge. And I know this RBA process is in its early innings at PJM, and we've all seen the comments from the IPPs and what they're looking for, but just maybe what are the T&Ds advocating for here, and how do you see that process shaping up? Do you expect it to still be on time for, you know, a September auction? If you could comment at all there. Do you want to take it? Certainly. Good morning, Nick. Thank you for the question. We've really been focused on engaging, not only at PJM, but with our regulators. We were really pleased to see the administration's, to Calvin's point, the administration's focus on this issue. We do support the development of this reliability backstop option, and we really endeavored also to bring a bit of clarity to the discourse. That's why we enlisted Charles River Associates' support in helping us crystallize what we're dealing with. We need to focus on supply because we know it will lower customer electric costs. We know that we will also see improved reliability. To the point on costs, as Calvin mentioned, utility-generated power, which you know, is something we are very focused on, because if no one else is going to build, we know that supply costs are an ever-increasing portion of the customer bill. So we really have to be focused on driving more build. And as this report outlaid, utility-generated power could reduce PJM customer costs by between $9.6 billion and $20 billion in the 2028-2029 delivery year. So while we're focused on supporting the RBA, we also have to, in the near term, focus on extending the price cap, getting more supply on the grid, and as Calvin mentioned, improving reliability. We know that those things will bring greater price stability and ultimately help address affordability, which is an ever-growing concern in each of our jurisdictions. Thanks for the updates. Hey, Nick, I know she doesn't need an introduction, but that was Colette Honorable. All right. Perfect. Thank you very much. You're welcome. Thank you. Thank you. Our next question comes from the line of Shar Pourreza from Wells Fargo. Good morning, Shar. Hey, Shar. Morning, Calvin. Morning, guys. Just on Colette's, maybe a quick question for Colette. I mean, obviously, you know, there's a lot of affordability things out there, whether you're looking at Maryland, New Jersey, Pennsylvania, Delaware. We saw that in, obviously, Shapiro's budget speech. There's several bills out there in Pennsylvania, Maryland, and New Jersey on resource adequacy. I guess a little bit more specifically, Colette, how are the conversations going on the legislative fronts? Like, can you strike a middle ground in a state like Pennsylvania with the IPPs around a new generation PPA structure, which is currently being proposed under the House and Senate bills, or are the conversations just too wide apart right now? Thanks. Hey, Shar. So this is Calvin. I'll jump in at first- Hey, Calvin. Hey, and just say, first and foremost, man, we understand where Governor Shapiro is coming from because we're all frustrated with the affordability dilemma that's hitting all of our customers and his constituents. So at the forefront, we start from a foundation of alignment, that we all have to do something together. And you notice our approach has always been an all-of-the-above approach. How can we help deliver solutions that satisfy everyone? So to your direct question, is there an opportunity to have conversations and engage with you? Absolutely, because we have never said we are going to do this on our own, but we do believe it must involve everyone. And I think you, you talked about Shapiro, but listen, Governor Moore, in his State of the State, even talked about an all-of-the-above. It requires everyone to come together to solve this problem, and we are committed to that. So when you talk about the House and Senate bills, it's always in the details, but please know that we're showing up every day in the Capitol and with the government, the PSC, to talk about delivering solutions. And you notice from us, it's not one or done, it's everyone coming through, and it's an all-of-the-above approach. Colette, anything you'd like to add there? Thank you, Calvin. Good morning, Shar. I would add, it will, I hope, put in better context why we showed up as a company the way we did around co-location issues. Co-location can be a great solution. We knew when we saw this headed our way, that we needed to focus on affordability. Now, you see others jumping in with us, it's great to see, and we need these discussions because this is how we will solve the problem. We've been very active, to your question, Shar, not only in Pennsylvania, on the ground there, on the ground with the governor. As you know, we joined Governor Shapiro in the filing at FERC on extending the price cap. We'll continue to partner with him, his administration, and engage heavily in the legislature, not only in Pennsylvania, we're having these same discussions in Maryland, in Delaware, in New Jersey. And I think that, for instance, in the address by Governor Moore, you could see very clearly he has a view on what needs to happen. Take a look at New Jersey, with Governor Sherrill stepping in and really focusing in on the solutions that need to come about in PJM. This is heartening to see, and you will continue to find us engaging in each of our jurisdictions, to help solve this issue of affordability. Let me close by saying, we're bringing solutions. We've been focused, as you know, on our customer relief fund that we developed last year, and then we further supplemented it ahead of the winter season in anticipation of these issues. Then we will continue focusing on low-income discounts in our jurisdictions. We have those well underway, and as well as focusing on longer-term solutions such as utility-owned generation. So we are very active in our jurisdictions and will continue to be active. Thank you. Is it fair to just assume that there is some level of collaboration with the generators, or is that a bit too far apart? So I'm just trying to piece that out. At the right price, right? Like, I think it's we're always- Okay. Gonna be our customer advocates. So I think right now, what's the problem, right? Right now, our customers are paying more for less, and so we got to get to the right place where there's actual new generation at the right price. If they want to build it at the right price, wonderful, right? But at the end of the day, to collect on Calvin's comments, that the Charles River report was really helpful because it said, you know, if we had been doing this and we had the generation needed for 2029, that you know, cost would have been, you know, $10 billion-$20 billion lower. We can't go back in time and build that generation, but we can take action now, and that's what we're focused on, is getting the generation built at the right price. Got it. And then just a last question here, just to tease out, Nick's question around the CAGR. There's not a lot of delta between rate base growth and the EPS growth, so that sort of makes sense where you are. But I mean, Jeanne, clearly from the slides this morning, there's plenty of incremental upsides, whether you're looking at, you know, PJM, RTEP or MISO tranches, data center TSAs, resource adequacy. I guess, what's the correct podium to step function change the trajectory, which has been out there for some time? Is it as it could be as simple as we need a few more quarters to execute. I guess, how do we sort of think about the upsides that, that are evident on these slide decks, whether. And it will be incremental to rate base growth, it'll be incremental to EPS growth. I guess, what do you need to see the step function change that 5%-7%? Thanks. Yeah, no, good question, and I think, at the end, we feel like it is kind of progressing, right? So last rate base CAGR was 7.4%. We're sitting at 7.9% now. Off of that 7.4%, you know, we delivered above expectations through 2025. So I think we are seeing continued progress there. I think, you know, given the deconcentrated plan, in addition to progress, it's really executable. We, as I mentioned in my prepared remarks, we've delivered within our capital within 2% since separation. And you look at our rate base this year within 1%. That's no small task on $64 billion of rate base. So we feel not only is it really executable, we should feel confident in that growth, but it is continuing to progress. Like, we're not gonna be the flashy, right, it's gonna go up double digits, but it's gonna—it's going up and it's highly executable, defensible, and we're not gonna give you a number that I can't sit here and say that. So I think that's how we should think about it. Okay. Yeah, that's actually a perfect answer. Thanks, guys. Appreciate it. Congrats, Calvin. Bye. Thank you, Shar. Appreciate you. Thank you. One moment for our next question. Our next question comes from the line of Paul Zimbardo from Jefferies. Morning, Paul. Hi, good morning, team. Kudos. Nicely done. Thank you. To continue the theme a little bit from Nick and Shar, just almost asking in inverse. It seems like rate-based growth is pretty consistent with historical the 7.9%, and you did grow at 7.4%, despite some headwinds in Illinois and elsewhere, and of course, tailwinds, too. Why could you not grow at that kind of zip code, the same 7.5% growth rate? Again, you doing even better than the top end. Like, is it kind of the conservatism like you were mentioning or just getting more comfort? If you could elaborate a little bit more. Sure. I mean, I think, you know, we're always going to strive to exceed expectations, but I think, again, giving you a number you can count on. I think, you know, financing costs are increasing, right? So you've got to account for that. But, you know, we are investing more in transmission, and so that gives us confidence in the, you know, that we can continue with the strong earned ROEs that we've had. So I think, you know, I think it's defensible. It is growing, I think, you know, but you've got to think about giving a number that's defensible, that we can manage, but also accounts for the associated financing costs. But we're always going to strive to exceed your expectations, Paul. No, and you have been so. If you give a mouse a cookie, you always have to ask for more. But, the- I noticed that, Paul. Thank you. The last one I wanted to ask, just on the incremental financing cost. So you definitely made a lot of progress on the balance sheet. How should we think about financing incremental capital opportunities as they come? Should we be using kind of that 40% in this roll forward- Yeah. Or maybe a lower number? No, it's the 40%. We want to maintain and you know keep that cushion we've worked so hard to get on the balance sheet. So what that results in is about the $3.4 billion over the 4-year period. On an annual basis, it's less than 2% of market cap, very manageable. And as you probably saw, we've already made good progress on that. So we've priced $700 million of that $3.4 billion. So on an annual basis for 2026, you know, it's a small amount to do. And given our ATM and our trading activities, it's very manageable. But we're gonna stick with that 40%. Okay. Thank you very much, team. Thank you, Paul. Thank you. One moment for our next question. Our next question will be from the line of Steve Fleishman from Wolfe. Good morning, Steve. Hey, good morning. So just, maybe just on the with the move to, to more transmission, continuing that 9%-10% earned ROE range, are we seeing some kind of movement up within that range that helps kind of put all these pieces together on the, on the growth rate? Yeah, I think, you know, again- Yeah. Yeah, yeah. If we go back to, I think, since separation, 2022-2025, our average earned has been somewhere around 9.4. To your point, as we have been turning the ship towards transmission, I think you can expect that, if not slightly better, but it's going to take some time for some of these, you know, transmission projects to close. We've got some longer-dated ones, the big ones. Well, that's the direction we're headed. Okay. Okay, and then on the CAMT, that you mentioned, just when, when do you expect to actually have that, like, full clarity on that? Sometime this, sounds like sometime this year? Yes, yes. We are hopeful that we have a final, final resolution here in the near term. Okay. And then lastly, just tying up some loose state stuff that, are we still going to get a Maryland lessons learned at some point? Or, yeah, is there any chance they just say, kind of we're moved on to- No- I don't know. Yeah. Yeah. Steve, I hear in your voice my frustration, so thank you. It is, we do believe we're going to get a lessons learned, and I know the team has been talking to the commission and the new chair, who we've worked with as a former state senator, and he understands the need for this. So we do believe we'll get a lessons learned, and I wish I could give you a timeline, but we do believe it will happen in 2026. Okay. But you'll file BGE, you know, probably before you get it? Yes. Yes. Yes. Yeah. Okay. We're going to file the, probably the first half and, and, you know, would love to accommodate whatever's in there. But, but to Calvin's point, we've been, you know, transparent with the commission around, you know, the fact that the rates expire in 2027, is that we have to do something here. And then a last quick one. I know New Jersey is not your, one of your larger states, but just curious, your take so far under the new governor. Absolutely. Not to your point, not one of our largest, but it's very important. And Tyler Anthony, the CEO of Pepco Holdings, has spent time with the other EDCs, with Governor Sherrill. Mike Innocenzo, our Chief Operating Officer, spent time, and I'll let Mike elaborate further on New Jersey, if you would like to, Mike. Yeah, I would just say, you know, it's, you know, it's certainly got a lot of headlines during the election campaign, but if you look at the content of the executive orders, we think that they're very constructive. They're things that we can live with. And I would say behind the scenes, the conversations are focused on the right areas, which is, you know, if we're really going to go after affordability, we need to bring more supply in an affordable way and an efficient way. And we fully support those discussions. Great. Thank you. Thank you, Steve. Thank you. Thanks to all our participants for joining us today. This concludes our presentation. You may now disconnect. Have a good day.

Speaker 6: Hello, and welcome to Exelon's fourth quarter earnings call. My name is Gigi, 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 one one on your telephone keypad. If you would like to view the presentation in a full screen view, click the full screen button by hovering your computer mouse cursor over the PowerPoint screen. Hello, and welcome to Exelon's fourth quarter earnings call. hello and welcome to exelon's fourth quarter earnings call My name is Gigi, and I'll be your event specialist today. my name is gigi and i'll be your event specialist today All lines have been placed on mute to prevent any background noise. all lines have been placed on mute to prevent any background noise Please note that today's webcast is being recorded. please note that today's webcast is being recorded During the presentation, we'll have a question-and-answer session. during the presentation we'll have a question-and-answer session You can ask questions by pressing star one one on your telephone keypad. you can ask questions by pressing star one one on your telephone keypad If you would like to view the presentation in a full screen view, click the full screen button by hovering your computer mouse cursor over the PowerPoint screen. if you would like to view the presentation in a 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 your 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. Press the escape key on your keyboard to return to your original view. press the escape key on your keyboard to return to your original view And finally, should you need technical assistance, as a best practice, we suggest you first refresh your browser. 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. 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. it is now my pleasure to turn today's program over to ryan brown vice president of investor relations The floor is yours. the floor is yours

Speaker 8: Great. Thank you, Gigi. Good morning, everybody. Thank you for joining us for our 2025 fourth quarter earnings call. Leading the call today are Calvin Butler, Exelon's President and Chief Executive Officer, and Jeanne Jones, Exelon's Chief Financial Officer. Other members of Exelon's senior management team are also with us today, and they'll 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 in the investor relations section of Exelon's website. I'd 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. Great. great Thank you, Gigi. thank you gigi Good morning, everybody. good morning everybody Thank you for joining us for our 2025 fourth quarter earnings call. thank you for joining us for our 2025 fourth quarter earnings call Leading the call today are Calvin Butler, Exelon's President and Chief Executive Officer, and Jeanne Jones, Exelon's Chief Financial Officer. leading the call today are calvin butler exelon's president and chief executive officer and jeanne jones exelon's chief financial officer Other members of Exelon's senior management team are also with us today, and they'll be available to answer your questions following our prepared remarks. other members of exelon's senior management team are also with us today and they'll 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 in the investor relations section of Exelon's website. today's presentation along with our earnings release and other financial information can be found in the investor relations section of exelon's website I'd 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. i'd 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 2 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 and in our earnings release. With that, it's now my pleasure to turn the call over to Calvin Butler, Exelon's President and CEO. You can find the cautionary statements on these risks on slide 2 of today's presentation or in our SEC filings. you can find the cautionary statements on these risks on slide 2 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. 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 and in our earnings release. reconciliations between these measures and the nearest equivalent gaap measures can be found in the appendix of our presentation and in our earnings release With that, it's now my pleasure to turn the call over to Calvin Butler, Exelon's President and CEO. with that it's now my pleasure to turn the call over to calvin butler exelon's president and ceo

Speaker 1: Thank you, Ryan, and congratulations on the new role, and good morning to everyone. We appreciate everyone joining us today for our fourth quarter earnings call. As we reflect on another successful year and celebrate the close of our 25th anniversary, we're proud to once again deliver exceptional results for our customers, employees, and investors. Across Exelon, our companies bring more than 800 years of collective experience. Even with that long view, this moment stands out. The industry is changing at a speed and scale rarely seen. With that comes both great responsibility and opportunity. I've never been more confident that Exelon has the people, the discipline, and the platform to continue to lead the energy transformation and meet this unprecedented demand. This is underscored by our recent results. As you saw from this morning's release, we delivered another strong year. Thank you, Ryan, and congratulations on the new role, and good morning to everyone. thank you ryan and congratulations on the new role and good morning to everyone We appreciate everyone joining us today for our fourth quarter earnings call. we appreciate everyone joining us today for our fourth quarter earnings call As we reflect on another successful year and celebrate the close of our 25th anniversary, we're proud to once again deliver exceptional results for our customers, employees, and investors. as we reflect on another successful year and celebrate the close of our 25th anniversary we're proud to once again deliver exceptional results for our customers employees and investors Across Exelon, our companies bring more than 800 years of collective experience. across exelon our companies bring more than 800 years of collective experience Even with that long view, this moment stands out. even with that long view this moment stands out The industry is changing at a speed and scale rarely seen. the industry is changing at a speed and scale rarely seen With that comes both great responsibility and opportunity. with that comes both great responsibility and opportunity I've never been more confident that Exelon has the people, the discipline, and the platform to continue to lead the energy transformation and meet this unprecedented demand. i've never been more confident that exelon has the people the discipline and the platform to continue to lead the energy transformation and meet this unprecedented demand This is underscored by our recent results. this is underscored by our recent results As you saw from this morning's release, we delivered another strong year. as you saw from this morning's release we delivered another strong year For 2025, we reported adjusted operating earnings per share of $2.77, delivering above expectations. This continues our track record of exceeding the midpoint of guidance in each year as a standalone utility. Since 2021, we've achieved a 7.4% annual earnings growth rate and 8% rate base growth through 2025, highlighting our ability to navigate changes and consistently execute. This steady performance is a direct result of a continued focus on affordability and our ability to deliver investments that directly benefit our customers, providing above average performance at below average rates. It was also another exceptional year operation. Exelon continues to set the standard for the industry. Our utilities maintain top quartile reliability metrics once again, and we're ranked one, two, four, and seven amongst our peers based on 2024 benchmarking data. For 2025, we reported adjusted operating earnings per share of $2.77, delivering above expectations. for 2025 we reported adjusted operating earnings per share of $2.77 delivering above expectations This continues our track record of exceeding the midpoint of guidance in each year as a standalone utility. this continues our track record of exceeding the midpoint of guidance in each year as a standalone utility Since 2021, we've achieved a 7.4% annual earnings growth rate and 8% rate base growth through 2025, highlighting our ability to navigate changes and consistently execute. since 2021 we've achieved a 7.4% annual earnings growth rate and 8% rate base growth through 2025 highlighting our ability to navigate changes and consistently execute This steady performance is a direct result of a continued focus on affordability and our ability to deliver investments that directly benefit our customers, providing above average performance at below average rates. this steady performance is a direct result of a continued focus on affordability and our ability to deliver investments that directly benefit our customers providing above average performance at below average rates It was also another exceptional year operation. it was also another exceptional year operation Exelon continues to set the standard for the industry. exelon continues to set the standard for the industry Our utilities maintain top quartile reliability metrics once again, and we're ranked one, two, four, and seven amongst our peers based on 2024 benchmarking data. our utilities maintain top quartile reliability metrics once again and we're ranked one two four and seven amongst our peers based on 2024 benchmarking data This level of performance is nothing new. In fact, we've delivered top quartile reliability for over a decade. It's who we are and centered to our mission. But don't get me wrong, consistency does not come easy. It's the direct result of a culture of continuous improvement, innovation, and a steadfast focus on targeted investments that maximize value for our customers. These investments not only prevent outages and deliver best-in-class service, but they directly benefit local economies, with every $1 million invested, creating 8 jobs or $1.6 million of economic output. I am truly humbled by the commitment and sacrifice of our employees that make this level of service possible. Recently, their dedication was on full display during Winter Storm Fern. Despite record low temperatures, our investments withstood heavy snow and icing across our territories, maintaining strong reliability with only minimal disruptions. This level of performance is nothing new. this level of performance is nothing new In fact, we've delivered top quartile reliability for over a decade. in fact we've delivered top quartile reliability for over a decade It's who we are and centered to our mission. it's who we are and centered to our mission But don't get me wrong, consistency does not come easy. but don't get me wrong consistency does not come easy It's the direct result of a culture of continuous improvement, innovation, and a steadfast focus on targeted investments that maximize value for our customers. it's the direct result of a culture of continuous improvement innovation and a steadfast focus on targeted investments that maximize value for our customers These investments not only prevent outages and deliver best-in-class service, but they directly benefit local economies, with every $1 million invested, creating 8 jobs or $1.6 million of economic output. these investments not only prevent outages and deliver best-in-class service but they directly benefit local economies with every $1 million invested creating 8 jobs or $1.6 million of economic output I am truly humbled by the commitment and sacrifice of our employees that make this level of service possible. i am truly humbled by the commitment and sacrifice of our employees that make this level of service possible Recently, their dedication was on full display during Winter Storm Fern. recently their dedication was on full display during winter storm fern Despite record low temperatures, our investments withstood heavy snow and icing across our territories, maintaining strong reliability with only minimal disruptions. despite record low temperatures our investments withstood heavy snow and icing across our territories maintaining strong reliability with only minimal disruptions Fewer than 1% of our customers experienced outages, even as the extreme weather impacted our regions. This reflects the tremendous work of our employees over the past decade to invest in the safety, reliability, and resiliency of our system. The performance is remarkable when accounting for the scale of the storm, as well as the demand put on the grid. Fern resulted in the PJM RTO experiencing 5 days in a row of peak load ranging from 135 GW-140 GW, reaching 97% of the all-time winter peak. Our investments, combined with our employees' around-the-clock dedication, kept nearly 11 million electric and gas customers safe and warm when they needed us most. I'd like to express my gratitude to all of our employees who have supported storm restoration efforts locally and afar. Thank you for all that you do. Fewer than 1% of our customers experienced outages, even as the extreme weather impacted our regions. fewer than 1% of our customers experienced outages even as the extreme weather impacted our regions This reflects the tremendous work of our employees over the past decade to invest in the safety, reliability, and resiliency of our system. this reflects the tremendous work of our employees over the past decade to invest in the safety reliability and resiliency of our system The performance is remarkable when accounting for the scale of the storm, as well as the demand put on the grid. the performance is remarkable when accounting for the scale of the storm as well as the demand put on the grid Fern resulted in the PJM RTO experiencing 5 days in a row of peak load ranging from 135 GW-140 GW, reaching 97% of the all-time winter peak. fern resulted in the pjm rto experiencing 5 days in a row of peak load ranging from 135 gw-140 gw reaching 97% of the all-time winter peak Our investments, combined with our employees' around-the-clock dedication, kept nearly 11 million electric and gas customers safe and warm when they needed us most. our investments combined with our employees' around-the-clock dedication kept nearly 11 million electric and gas customers safe and warm when they needed us most I'd like to express my gratitude to all of our employees who have supported storm restoration efforts locally and afar. i'd like to express my gratitude to all of our employees who have supported storm restoration efforts locally and afar Thank you for all that you do. thank you for all that you do Over the last quarter, we also made significant progress on the regulatory front. As Jeanne will detail shortly, it's been an active few months. We've achieved several key milestones, including final settlements for the Atlantic City Electric and Delmarva Gas rate cases, reconciliation orders at ComEd and BGE, and the filing of ComEd's second multi-year grid plan. This progress is built on a foundation of hard-earned trust. We work collaboratively with stakeholders and our communities to ensure that our investments align with the specific goals and needs of the states we serve. Looking ahead, we now expect to invest $41.3 billion of capital to support our customers, with more than 70% of the plan over plan increase driven by transmission, where we continue to have a unique opportunity and significant momentum. Over the last quarter, we also made significant progress on the regulatory front. over the last quarter we also made significant progress on the regulatory front As Jeanne will detail shortly, it's been an active few months. as jeanne will detail shortly it's been an active few months We've achieved several key milestones, including final settlements for the Atlantic City Electric and Delmarva Gas rate cases, reconciliation orders at ComEd and BGE, and the filing of ComEd's second multi-year grid plan. we've achieved several key milestones including final settlements for the atlantic city electric and delmarva gas rate cases reconciliation orders at comed and bge and the filing of comed's second multi-year grid plan This progress is built on a foundation of hard-earned trust. this progress is built on a foundation of hard-earned trust We work collaboratively with stakeholders and our communities to ensure that our investments align with the specific goals and needs of the states we serve. we work collaboratively with stakeholders and our communities to ensure that our investments align with the specific goals and needs of the states we serve Looking ahead, we now expect to invest $41.3 billion of capital to support our customers, with more than 70% of the plan over plan increase driven by transmission, where we continue to have a unique opportunity and significant momentum. looking ahead we now expect to invest $41.3 billion of capital to support our customers with more than 70% of the plan over plan increase driven by transmission where we continue to have a unique opportunity and significant momentum Our size and scale, multi-state footprint, and operational expertise position our utilities to capitalize on the growing need for transmission investments in reliability and resiliency, accelerated by the pace of new business growth. This progress is further evidenced by our success in the recent PJM Reliability Window results, where $1.2 billion of incremental Exelon investment was recommended, including a jointly developed solution with NextEra. This comes on the heels of other recent large-scale transmission awards, including Brandon Shores, Tri-County, and the MISO Tranche 2.1 project. You should expect us to be active in future windows within PJM and other ISOs, leveraging our competitive advantages where appropriate. And we continue to see robust demand in our jurisdictions, with anticipated load growth exceeding 3% through 2029. Our size and scale, multi-state footprint, and operational expertise position our utilities to capitalize on the growing need for transmission investments in reliability and resiliency, accelerated by the pace of new business growth. our size and scale multi-state footprint and operational expertise position our utilities to capitalize on the growing need for transmission investments in reliability and resiliency accelerated by the pace of new business growth This progress is further evidenced by our success in the recent PJM Reliability Window results, where $1.2 billion of incremental Exelon investment was recommended, including a jointly developed solution with NextEra. this progress is further evidenced by our success in the recent pjm reliability window results where $1.2 billion of incremental exelon investment was recommended including a jointly developed solution with nextera This comes on the heels of other recent large-scale transmission awards, including Brandon Shores, Tri-County, and the MISO Tranche 2.1 project. this comes on the heels of other recent large-scale transmission awards including brandon shores tri-county and the miso tranche 2.1 project You should expect us to be active in future windows within PJM and other ISOs, leveraging our competitive advantages where appropriate. you should expect us to be active in future windows within pjm and other isos leveraging our competitive advantages where appropriate And we continue to see robust demand in our jurisdictions, with anticipated load growth exceeding 3% through 2029. and we continue to see robust demand in our jurisdictions with anticipated load growth exceeding 3% through 2029 This is further reinforced by our large load pipeline, which is now further supported by an increasing number of signed Transmission Security Agreements or TSAs. Overall, our pure transmission and distribution capital plan is unique and truly differentiated. It's highly diversified across seven regulatory jurisdictions, including FERC, with no one jurisdiction greater than 30% and no single project comprising more than 3% of the plan. It's also actionable. We have line of sight to each project that comprises the $41.3 billion, with a significant pipeline of incremental projects over the next 5-10 years and the size and scale to execute efficiently. This is further reinforced by our large load pipeline, which is now further supported by an increasing number of signed Transmission Security Agreements or TSAs. this is further reinforced by our large load pipeline which is now further supported by an increasing number of signed transmission security agreements or tsas Overall, our pure transmission and distribution capital plan is unique and truly differentiated. overall our pure transmission and distribution capital plan is unique and truly differentiated It's highly diversified across seven regulatory jurisdictions, including FERC, with no one jurisdiction greater than 30% and no single project comprising more than 3% of the plan. it's highly diversified across seven regulatory jurisdictions including ferc with no one jurisdiction greater than 30% and no single project comprising more than 3% of the plan It's also actionable. it's also actionable We have line of sight to each project that comprises the $41.3 billion, with a significant pipeline of incremental projects over the next 5- 10 years and the size and scale to execute efficiently. we have line of sight to each project that comprises the $41.3 billion with a significant pipeline of incremental projects over the next 5- 10 years and the size and scale to execute efficiently With continued returns on equity in the 9%-10% range, we expect rate base growth of approximately 8% and annualized earnings growth of 5%-7% through 2029, with the expectation of being near the top end of that range. We will continue to fund investments in a balanced and disciplined manner that maintains a strong balance sheet. For 2026, we are initiating operating earnings guidance of $2.81-$2.91 per share. Our continued progress is clearly demonstrated by the scorecard on slide five, where we've once again met or exceeded every goal we set at the start of the year. At Exelon, commitments made are commitments met, that discipline and credibility define who we are and shape how our teams operate every day. With continued returns on equity in the 9%-10% range, we expect rate base growth of approximately 8% and annualized earnings growth of 5%-7% through 2029, with the expectation of being near the top end of that range. with continued returns on equity in the 9%-10% range we expect rate base growth of approximately 8% and annualized earnings growth of 5%-7% through 2029 with the expectation of being near the top end of that range We will continue to fund investments in a balanced and disciplined manner that maintains a strong balance sheet. we will continue to fund investments in a balanced and disciplined manner that maintains a strong balance sheet For 2026, we are initiating operating earnings guidance of $2.81-$2.91 per share. for 2026 we are initiating operating earnings guidance of $2.81-$2.91 per share Our continued progress is clearly demonstrated by the scorecard on slide five, where we've once again met or exceeded every goal we set at the start of the year. our continued progress is clearly demonstrated by the scorecard on slide five where we've once again met or exceeded every goal we set at the start of the year At Exelon, commitments made are commitments met, that discipline and credibility define who we are and shape how our teams operate every day. at exelon commitments made are commitments met that discipline and credibility define who we are and shape how our teams operate every day In addition to strong operational and financial performance, we continue to lead on customer affordability, which remains a top priority. We continuously drive costs out of the business through efficiency and innovation, maintaining a track record of cost growth well below inflation. In the past year, we executed a $60 million customer relief fund to support low and moderate-income customers facing higher supply costs. We advanced innovative TSAs that prioritize large loads while ensuring existing customers remain protected. Our award-winning energy efficiency programs continue to deliver meaningful savings. We expanded connections of distributed resources, giving customers more ways to participate and save. We are steadfast in introducing innovative tools and processes to connect customers to low-income assistance. We continue to focus on actions like these that are directly within our control, in addition to delivering safe, reliable energy while keeping bills as low as possible. In addition to strong operational and financial performance, we continue to lead on customer affordability, which remains a top priority. in addition to strong operational and financial performance we continue to lead on customer affordability which remains a top priority We continuously drive costs out of the business through efficiency and innovation, maintaining a track record of cost growth well below inflation. we continuously drive costs out of the business through efficiency and innovation maintaining a track record of cost growth well below inflation In the past year, we executed a $60 million customer relief fund to support low and moderate-income customers facing higher supply costs. in the past year we executed a $60 million customer relief fund to support low and moderate-income customers facing higher supply costs We advanced innovative TSAs that prioritize large loads while ensuring existing customers remain protected. we advanced innovative tsas that prioritize large loads while ensuring existing customers remain protected Our award-winning energy efficiency programs continue to deliver meaningful savings. our award-winning energy efficiency programs continue to deliver meaningful savings We expanded connections of distributed resources, giving customers more ways to participate and save. we expanded connections of distributed resources giving customers more ways to participate and save We are steadfast in introducing innovative tools and processes to connect customers to low-income assistance. we are steadfast in introducing innovative tools and processes to connect customers to low-income assistance We continue to focus on actions like these that are directly within our control, in addition to delivering safe, reliable energy while keeping bills as low as possible. we continue to focus on actions like these that are directly within our control in addition to delivering safe reliable energy while keeping bills as low as possible In the meantime, we are also actively partnering with federal, RTO, and state leaders to address high supply prices and emerging reliability risks. The supply challenge is real, but not insurmountable. We're encouraged by the growing national focus, including the recent announcement from the White House and our state governors, advancing policies to incent new generation and improve affordability. As we've said before, we firmly believe it's going to require an all-of-the-above strategy that includes utility-generated, demand-side, and merchant solutions. This was further supported by the study released last week by Charles River Associates. The report is an urgent call to action, highlighting the risk of the status quo and the cost and reliability benefits of utility-generated energy. Specifically, they note that utility-generated power could have saved total PJM customers $9.6 billion-$20 billion in the 2028, 2029 delivery year. In the meantime, we are also actively partnering with federal, RTO, and state leaders to address high supply prices and emerging reliability risks. in the meantime we are also actively partnering with federal rto and state leaders to address high supply prices and emerging reliability risks The supply challenge is real, but not insurmountable. the supply challenge is real but not insurmountable We're encouraged by the growing national focus, including the recent announcement from the White House and our state governors, advancing policies to incent new generation and improve affordability. we're encouraged by the growing national focus including the recent announcement from the white house and our state governors advancing policies to incent new generation and improve affordability As we've said before, we firmly believe it's going to require an all-of-the-above strategy that includes utility-generated, demand-side, and merchant solutions. as we've said before we firmly believe it's going to require an all-of-the-above strategy that includes utility-generated demand-side and merchant solutions This was further supported by the study released last week by Charles River Associates. this was further supported by the study released last week by charles river associates The report is an urgent call to action, highlighting the risk of the status quo and the cost and reliability benefits of utility-generated energy. the report is an urgent call to action highlighting the risk of the status quo and the cost and reliability benefits of utility-generated energy Specifically, they note that utility-generated power could have saved total PJM customers $9.6 billion-$20 billion in the 2028, 2029 delivery year. specifically they note that utility-generated power could have saved total pjm customers $9.6 billion-$20 billion in the 2028 2029 delivery year While reducing the risk of potential future outages from energy shortages by approximately 85%. We are committed to continue to work with all stakeholders to advance policies that strengthen energy security as quickly and cost effectively as possible. Finally, I want to take a moment to reiterate why our platform and approach is best positioned for the years to come. As highlighted on slide 6, our foundation is based upon a customer focus and industry-leading operations. With our size and scale, constructive regulatory frameworks, and diversified footprint and capital plan, we have a disciplined and defensive foundation that is resilient. Yet, at the same time, we're well-positioned to capture credible, meaningful opportunities for sustainable growth. We're excited about where we're headed. Our platform is designed to deliver an attractive, risk-adjusted return and long-term value for all stakeholders. While reducing the risk of potential future outages from energy shortages by approximately 85%. while reducing the risk of potential future outages from energy shortages by approximately 85% We are committed to continue to work with all stakeholders to advance policies that strengthen energy security as quickly and cost effectively as possible. we are committed to continue to work with all stakeholders to advance policies that strengthen energy security as quickly and cost effectively as possible Finally, I want to take a moment to reiterate why our platform and approach is best positioned for the years to come. finally i want to take a moment to reiterate why our platform and approach is best positioned for the years to come As highlighted on slide 6, our foundation is based upon a customer focus and industry-leading operations. as highlighted on slide 6 our foundation is based upon a customer focus and industry-leading operations With our size and scale, constructive regulatory frameworks, and diversified footprint and capital plan, we have a disciplined and defensive foundation that is resilient. with our size and scale constructive regulatory frameworks and diversified footprint and capital plan we have a disciplined and defensive foundation that is resilient Yet, at the same time, we're well-positioned to capture credible, meaningful opportunities for sustainable growth. yet at the same time we're well-positioned to capture credible meaningful opportunities for sustainable growth We're excited about where we're headed. we're excited about where we're headed Our platform is designed to deliver an attractive, risk-adjusted return and long-term value for all stakeholders. our platform is designed to deliver an attractive risk-adjusted return and long-term value for all stakeholders I'll now turn the call to Jeanne to dive deeper into our 2025 results and share more details on our updated long-term plan. Jeanne? I'll now turn the call to Jeanne to dive deeper into our 2025 results and share more details on our updated long-term plan. i'll now turn the call to jeanne to dive deeper into our 2025 results and share more details on our updated long-term plan Jeanne? jeanne

Speaker 3: Thank you, Calvin, and good morning, everyone. Today, I will cover our fourth quarter and full-year results, key regulatory developments, and updates to our financial disclosures, including 2026 guidance. Starting on slide 7, as Calvin noted, since becoming a standalone utility, we have continued to execute, and 2025 adds to that track record. In 2025, we delivered $2.73 per share on a GAAP basis and $2.77 per share on a non-GAAP basis for the full year, reflecting strong year-over-year growth. For the quarter, Exelon earned $0.58 on a GAAP basis and $0.59 on a non-GAAP basis. Full-year earnings above our guidance range primarily benefited from favorable weather and storm conditions and the resolution of certain regulatory proceedings. Thank you, Calvin, and good morning, everyone. thank you calvin and good morning everyone Today, I will cover our fourth quarter and full-year results, key regulatory developments, and updates to our financial disclosures, including 2026 guidance. today i will cover our fourth quarter and full-year results key regulatory developments and updates to our financial disclosures including 2026 guidance Starting on slide 7, as Calvin noted, since becoming a standalone utility, we have continued to execute, and 2025 adds to that track record. starting on slide 7 as calvin noted since becoming a standalone utility we have continued to execute and 2025 adds to that track record In 2025, we delivered $2.73 per share on a GAAP basis and $2.77 per share on a non-GAAP basis for the full year, reflecting strong year-over-year growth. in 2025 we delivered $2.73 per share on a gaap basis and $2.77 per share on a non-gaap basis for the full year reflecting strong year-over-year growth For the quarter, Exelon earned $0.58 on a GAAP basis and $0.59 on a non-GAAP basis. for the quarter exelon earned $0.58 on a gaap basis and $0.59 on a non-gaap basis Full-year earnings above our guidance range primarily benefited from favorable weather and storm conditions and the resolution of certain regulatory proceedings. full-year earnings above our guidance range primarily benefited from favorable weather and storm conditions and the resolution of certain regulatory proceedings Throughout the year, we also managed costs well across the platform, ensuring we could accommodate a range of outcomes while monitoring regulatory activity and weather in the fourth quarter. Quarter-to-date and year-to-date drivers relative to prior year can be found on appendix slides 37 and 38. Turning to slide 8, we are initiating 2026 operating earnings guidance of $2.81-$2.91 per share. With much of our growth aligned with completed rate cases and continued strong cost management, the 2026 implied midpoint relative to the midpoint of our 2025 estimated guidance range is ahead of previous disclosures, reflecting midpoint-to-midpoint growth above 6%. Our performance in 2025 underscores our ability to deliver strong financial results amid uncertainty, all while operating at industry-leading levels and innovating to find new and creative ways to support our customers. Throughout the year, we also managed costs well across the platform, ensuring we could accommodate a range of outcomes while monitoring regulatory activity and weather in the fourth quarter. throughout the year we also managed costs well across the platform ensuring we could accommodate a range of outcomes while monitoring regulatory activity and weather in the fourth quarter Quarter- to- date and year-to-date drivers relative to prior year can be found on appendix slides 37 and 38. quarter- to- date and year-to-date drivers relative to prior year can be found on appendix slides 37 and 38 Turning to slide 8, we are initiating 2026 operating earnings guidance of $2.81-$2.91 per share. turning to slide 8 we are initiating 2026 operating earnings guidance of $2.81-$2.91 per share With much of our growth aligned with completed rate cases and continued strong cost management, the 2026 implied midpoint relative to the midpoint of our 2025 estimated guidance range is ahead of previous disclosures, reflecting midpoint-to-midpoint growth above 6%. with much of our growth aligned with completed rate cases and continued strong cost management the 2026 implied midpoint relative to the midpoint of our 2025 estimated guidance range is ahead of previous disclosures reflecting midpoint-to-midpoint growth above 6% Our performance in 2025 underscores our ability to deliver strong financial results amid uncertainty, all while operating at industry-leading levels and innovating to find new and creative ways to support our customers. our performance in 2025 underscores our ability to deliver strong financial results amid uncertainty all while operating at industry-leading levels and innovating to find new and creative ways to support our customers We've executed operational efficiencies, capitalized on our growth opportunities, and identified more ways than ever to support our customers. We look forward to furthering this progress in 2026. Looking ahead to the first quarter, we expect earnings to be approximately 31% of the midpoint of our projected full-year earnings guidance range, which is in line with historical averages. This accounts for completed regulatory filings, anticipated revenue shaping, and O&M timing, as well as normal weather and storm conditions throughout the quarter. Turning to slide 9, we executed another busy regulatory calendar in 2025, marking significant milestones and reaching final resolution on open reconciliations and key rate cases, providing cost recovery for the next several years. We've executed operational efficiencies, capitalized on our growth opportunities, and identified more ways than ever to support our customers. we've executed operational efficiencies capitalized on our growth opportunities and identified more ways than ever to support our customers We look forward to furthering this progress in 2026. we look forward to furthering this progress in 2026 Looking ahead to the first quarter, we expect earnings to be approximately 31% of the midpoint of our projected full-year earnings guidance range, which is in line with historical averages. looking ahead to the first quarter we expect earnings to be approximately 31% of the midpoint of our projected full-year earnings guidance range which is in line with historical averages This accounts for completed regulatory filings, anticipated revenue shaping, and O&M timing, as well as normal weather and storm conditions throughout the quarter. this accounts for completed regulatory filings anticipated revenue shaping and o&m timing as well as normal weather and storm conditions throughout the quarter Turning to slide 9, we executed another busy regulatory calendar in 2025, marking significant milestones and reaching final resolution on open reconciliations and key rate cases, providing cost recovery for the next several years. turning to slide 9 we executed another busy regulatory calendar in 2025 marking significant milestones and reaching final resolution on open reconciliations and key rate cases providing cost recovery for the next several years Starting with Atlantic City Electric, in November, the New Jersey Board of Public Utilities approved a settlement supporting the recovery of $54 million associated with grid improvements and modernization investments in line with New Jersey's Energy Master Plan and the Clean Energy Act at a 9.6% ROE. New rates went into effect at the beginning of December 2025. Also in December, the Delaware Public Service Commission issued a final order on the Delmarva Power Gas rate case, approving a settlement that supports a $21.5 million revenue requirement and 9.6% ROE, recovering various reliability investments and LNG plant upgrades, which protect customers from price volatility during peak periods. Rates went into effect at the beginning of this year. Starting with Atlantic City Electric, in November, the New Jersey Board of Public Utilities approved a settlement supporting the recovery of $54 million associated with grid improvements and modernization investments in line with New Jersey's Energy Master Plan and the Clean Energy Act at a 9.6% ROE. starting with atlantic city electric in november the new jersey board of public utilities approved a settlement supporting the recovery of $54 million associated with grid improvements and modernization investments in line with new jersey's energy master plan and the clean energy act at a 9.6% roe New rates went into effect at the beginning of December 2025. new rates went into effect at the beginning of december 2025 Also in December, the Delaware Public Service Commission issued a final order on the Delmarva Power Gas rate case, approving a settlement that supports a $21.5 million revenue requirement and 9.6% ROE, recovering various reliability investments and LNG plant upgrades, which protect customers from price volatility during peak periods. also in december the delaware public service commission issued a final order on the delmarva power gas rate case approving a settlement that supports a $21.5 million revenue requirement and 9.6% roe recovering various reliability investments and lng plant upgrades which protect customers from price volatility during peak periods Rates went into effect at the beginning of this year. rates went into effect at the beginning of this year In addition to closing out base rate case activity, we also received final orders in our open reconciliations at BGE and ComEd in December, now gaining clarity on the recovery of our investments from 2023 and 2024. While we were disappointed to receive about half of the BGE reconciliation, we realigned capital accordingly. Finally, moving to our core regulatory activity for 2026, the Pepco Maryland base rate case continues to progress according to the procedural schedule, with intervener testimony filed at the end of last month. A final order is expected in August this year. In December, Delmarva Power filed an electric base rate case in Delaware, requesting a net revenue increase of $44.6 million to support system reliability investments, storm remediation, and storm damage costs. In addition to closing out base rate case activity, we also received final orders in our open reconciliations at BGE and ComEd in December, now gaining clarity on the recovery of our investments from 2023 and 2024. in addition to closing out base rate case activity we also received final orders in our open reconciliations at bge and comed in december now gaining clarity on the recovery of our investments from 2023 and 2024 While we were disappointed to receive about half of the BGE reconciliation, we realigned capital accordingly. while we were disappointed to receive about half of the bge reconciliation we realigned capital accordingly Finally, moving to our core regulatory activity for 2026, the Pepco Maryland base rate case continues to progress according to the procedural schedule, with intervener testimony filed at the end of last month. finally moving to our core regulatory activity for 2026 the pepco maryland base rate case continues to progress according to the procedural schedule with intervener testimony filed at the end of last month A final order is expected in August this year. a final order is expected in august this year In December, Delmarva Power filed an electric base rate case in Delaware, requesting a net revenue increase of $44.6 million to support system reliability investments, storm remediation, and storm damage costs. in december delmarva power filed an electric base rate case in delaware requesting a net revenue increase of $44.6 million to support system reliability investments storm remediation and storm damage costs DPL also requested to implement a bill stabilization adjustment, which will offer customers more predictability as seasonal temperatures grow increasingly volatile. DPL expects to be able to implement interim rates in effect on July 9th. Finally, on January 16th, ComEd filed its multi-year grid plan in Illinois, requesting an approval of an investment plan covering 2028 through 2031 in support of the priorities laid out in the state's CEJA and CRGA bills. A final order is expected in December, and the company expects to file its next rate filing in 2027. On slide 10, we provide updated utility CapEx and rate base outlook through 2029. We plan to invest almost $10 billion in 2026 and a total of $41.3 billion over the next four years, an increase of $3.3 billion or 9% from the prior four-year planning period. DPL also requested to implement a bill stabilization adjustment, which will offer customers more predictability as seasonal temperatures grow increasingly volatile. dpl also requested to implement a bill stabilization adjustment which will offer customers more predictability as seasonal temperatures grow increasingly volatile DPL expects to be able to implement interim rates in effect on July 9th. dpl expects to be able to implement interim rates in effect on july 9th Finally, on January 16th, ComEd filed its multi-year grid plan in Illinois, requesting an approval of an investment plan covering 2028 through 2031 in support of the priorities laid out in the state's CEJA and CRGA bills. finally on january 16th comed filed its multi-year grid plan in illinois requesting an approval of an investment plan covering 2028 through 2031 in support of the priorities laid out in the state's ceja and crga bills A final order is expected in December, and the company expects to file its next rate filing in 2027. a final order is expected in december and the company expects to file its next rate filing in 2027 On slide 10, we provide updated utility CapEx and rate base outlook through 2029. on slide 10 we provide updated utility capex and rate base outlook through 2029 We plan to invest almost $10 billion in 2026 and a total of $41.3 billion over the next four years, an increase of $3.3 billion or 9% from the prior four-year planning period. we plan to invest almost $10 billion in 2026 and a total of $41.3 billion over the next four years an increase of $3.3 billion or 9% from the prior four-year planning period Incremental investments reflect updates to align with recently approved rate cases and jurisdictional priorities, and an increase in transmission investments. Of the overall increase, approximately 70% or $2.3 billion, is attributable to incremental transmission investments, driven by the structural trends that underpin the energy transformation in our jurisdictions. Increased demand for high voltage investments and capacity expansion to support large load growth, evolving generation supply, and the reliability and resiliency needs of grid customers to withstand increasingly volatile weather. In fact, the majority of the additional transmissions relates to continued system performance and capacity expansion across our platform, supporting incremental data center load in addition to the gradual replacement of an aging network. Incremental investments reflect updates to align with recently approved rate cases and jurisdictional priorities, and an increase in transmission investments. incremental investments reflect updates to align with recently approved rate cases and jurisdictional priorities and an increase in transmission investments Of the overall increase, approximately 70% or $2.3 billion, is attributable to incremental transmission investments, driven by the structural trends that underpin the energy transformation in our jurisdictions. of the overall increase approximately 70% or $2.3 billion is attributable to incremental transmission investments driven by the structural trends that underpin the energy transformation in our jurisdictions Increased demand for high voltage investments and capacity expansion to support large load growth, evolving generation supply, and the reliability and resiliency needs of grid customers to withstand increasingly volatile weather. increased demand for high voltage investments and capacity expansion to support large load growth evolving generation supply and the reliability and resiliency needs of grid customers to withstand increasingly volatile weather In fact, the majority of the additional transmissions relates to continued system performance and capacity expansion across our platform, supporting incremental data center load in addition to the gradual replacement of an aging network. in fact the majority of the additional transmissions relates to continued system performance and capacity expansion across our platform supporting incremental data center load in addition to the gradual replacement of an aging network Our plan also includes an additional year of investment of our two largest transmission projects, Brandon Shores and Tri-County, going into service in 2028 through 2030, along with the early spend of the MISO Tranche 2.1 project, which goes into service in 2034. Our annualized rate base growth of 7.9% over the next four years reflects an increase from the prior year plan, with a projected addition of nearly $23 billion in rate base from 2025-2029. Having executed within 2% of our capital plan since 2023, we are confident we will execute this next stage of growth, driving progress towards economic and energy goals, and always prioritizing our customer needs in everything that we do. Our plan also includes an additional year of investment of our two largest transmission projects, Brandon Shores and Tri-County, going into service in 2028 through 2030, along with the early spend of the MISO Tranche 2.1 project, which goes into service in 2034. our plan also includes an additional year of investment of our two largest transmission projects brandon shores and tri-county going into service in 2028 through 2030 along with the early spend of the miso tranche 2.1 project which goes into service in 2034 Our annualized rate base growth of 7.9% over the next four years reflects an increase from the prior year plan, with a projected addition of nearly $23 billion in rate base from 2025 - 2029. our annualized rate base growth of 7.9% over the next four years reflects an increase from the prior year plan with a projected addition of nearly $23 billion in rate base from 2025 - 2029 Having executed within 2% of our capital plan since 2023, we are confident we will execute this next stage of growth, driving progress towards economic and energy goals, and always prioritizing our customer needs in everything that we do. having executed within 2% of our capital plan since 2023 we are confident we will execute this next stage of growth driving progress towards economic and energy goals and always prioritizing our customer needs in everything that we do Moving to slide 11, our size and scale, award-winning reliability, and expertise in owning and operating 765 kV lines, uniquely position us to capitalize on additional transition opportunities that enable us to grow our transmission rate base CAGR by over 15% from 2025 through the end of the guidance period. Coupled with our strength and execution, we now have line of sight to an additional $12 billion-$17 billion of transmission opportunities over the next decade that strengthen and lengthen our plan, of which over 60% includes projects associated with our existing infrastructure, supporting continued reliability, generator deactivations, and providing additional operational flexibility and efficiency. Moving to slide 11, our size and scale, award-winning reliability, and expertise in owning and operating 765 kV lines, uniquely position us to capitalize on additional transition opportunities that enable us to grow our transmission rate base CAGR by over 15% from 2025 through the end of the guidance period. moving to slide 11 our size and scale award-winning reliability and expertise in owning and operating 765 kv lines uniquely position us to capitalize on additional transition opportunities that enable us to grow our transmission rate base cagr by over 15% from 2025 through the end of the guidance period Coupled with our strength and execution, we now have line of sight to an additional $12 billion-$17 billion of transmission opportunities over the next decade that strengthen and lengthen our plan, of which over 60% includes projects associated with our existing infrastructure, supporting continued reliability, generator deactivations, and providing additional operational flexibility and efficiency. coupled with our strength and execution we now have line of sight to an additional $12 billion-$17 billion of transmission opportunities over the next decade that strengthen and lengthen our plan of which over 60% includes projects associated with our existing infrastructure supporting continued reliability generator deactivations and providing additional operational flexibility and efficiency This upside also includes an estimated $1 billion of transmission associated with high density load projects with signed TFAs, where we now have a foundation for additional certainty in our pipeline as agreements are presented to customers coming out of our cluster study process. We also remain optimistic about the work associated with MISO Tranche 2.1, with over $1 billion of investment in our ComEd service territory, which is now awaiting a cost allocation filing at FERC. Beyond these opportunities, we anticipate additional investment required to support our state's public policy goals, particularly as our jurisdictions assess energy security and economic development needs. For example, achieving CEJA's goals and the growing economic development in Illinois will likely require billions in transmission investments. Finally, as we've discussed in prior quarters, success in winning competitively bid projects offer additional upsides. This upside also includes an estimated $1 billion of transmission associated with high density load projects with signed TFAs, where we now have a foundation for additional certainty in our pipeline as agreements are presented to customers coming out of our cluster study process. this upside also includes an estimated $1 billion of transmission associated with high density load projects with signed tfas where we now have a foundation for additional certainty in our pipeline as agreements are presented to customers coming out of our cluster study process We also remain optimistic about the work associated with MISO Tranche 2.1, with over $1 billion of investment in our ComEd service territory, which is now awaiting a cost allocation filing at FERC. we also remain optimistic about the work associated with miso tranche 2.1 with over $1 billion of investment in our comed service territory which is now awaiting a cost allocation filing at ferc Beyond these opportunities, we anticipate additional investment required to support our state's public policy goals, particularly as our jurisdictions assess energy security and economic development needs. beyond these opportunities we anticipate additional investment required to support our state's public policy goals particularly as our jurisdictions assess energy security and economic development needs For example, achieving CEJA's goals and the growing economic development in Illinois will likely require billions in transmission investments. for example achieving ceja's goals and the growing economic development in illinois will likely require billions in transmission investments Finally, as we've discussed in prior quarters, success in winning competitively bid projects offer additional upsides. finally as we've discussed in prior quarters success in winning competitively bid projects offer additional upsides From our success in winning the Tri-County projects to the $1.2 billion in Exelon investment PJM has recommended in this recent window, our size, scale, and expertise positions us well to pursue competitive opportunities outside of our service territories, within and outside of PJM. Our ability to deploy almost $10 billion of capital annually over the next four years is only possible with a rigorous focus on cost management and delivering value through those investments, supporting customer rates, supporting customer bills at rates 19%-20% below national averages. This focus is saving our customers approximately $580 million in O&M annually, relative to what it would have been growing at a standard inflation level over the last decade. From our success in winning the Tri-County projects to the $1.2 billion in Exelon investment PJM has recommended in this recent window, our size, scale, and expertise positions us well to pursue competitive opportunities outside of our service territories, within and outside of PJM. from our success in winning the tri-county projects to the $1.2 billion in exelon investment pjm has recommended in this recent window our size scale and expertise positions us well to pursue competitive opportunities outside of our service territories within and outside of pjm Our ability to deploy almost $10 billion of capital annually over the next four years is only possible with a rigorous focus on cost management and delivering value through those investments, supporting customer rates, supporting customer bills at rates 19%-20% below national averages. our ability to deploy almost $10 billion of capital annually over the next four years is only possible with a rigorous focus on cost management and delivering value through those investments supporting customer rates supporting customer bills at rates 19%-20% below national averages This focus is saving our customers approximately $580 million in O&M annually, relative to what it would have been growing at a standard inflation level over the last decade. this focus is saving our customers approximately $580 million in o&m annually relative to what it would have been growing at a standard inflation level over the last decade We feel confident we can continue to keep our expense growth well below inflation levels, demonstrating nearly flat expense growth from 2024-2026, and targeting no more than 2.5% adjusted O&M growth through 2029. As we talked about last year, our institutionalized team and a One Exelon culture are committed to delivering value. We have taken advantage of our focused operations, along with our size and scale, to continue to standardize and streamline our structure and operations. Driving out $580 million in annual O&M savings is no small task, but it's something our customers and shareholders have come to expect. Exelon's unique platforms and industry best practices enable us to build upon these savings with line of sight to additional opportunities. We feel confident we can continue to keep our expense growth well below inflation levels, demonstrating nearly flat expense growth from 2024 - 2026, and targeting no more than 2.5% adjusted O&M growth through 2029. we feel confident we can continue to keep our expense growth well below inflation levels demonstrating nearly flat expense growth from 2024 - 2026 and targeting no more than 2.5% adjusted o&m growth through 2029 As we talked about last year, our institutionalized team and a One Exelon culture are committed to delivering value. as we talked about last year our institutionalized team and a one exelon culture are committed to delivering value We have taken advantage of our focused operations, along with our size and scale, to continue to standardize and streamline our structure and operations. we have taken advantage of our focused operations along with our size and scale to continue to standardize and streamline our structure and operations Driving out $580 million in annual O&M savings is no small task, but it's something our customers and shareholders have come to expect. driving out $580 million in annual o&m savings is no small task but it's something our customers and shareholders have come to expect Exelon's unique platforms and industry best practices enable us to build upon these savings with line of sight to additional opportunities. exelon's unique platforms and industry best practices enable us to build upon these savings with line of sight to additional opportunities As investment needs grow to meet unprecedented load growth and reliability needs, our customers remain our top priority. Since 2021, Exelon's portion of the average customer bill 2% of median income has remained relatively flat, growing only 10 basis points while maintaining top quartile reliability, which saved customers $1 billion in avoided outage costs last year alone. We've reduced annual customer interruptions by nearly 2 million since 2021 and made significant economic impact in our community. Since 2021, we've employed 20,000 people, sustained 50,000 jobs, and have fostered nearly $60 billion in economic activity in our communities. Bringing value to our customers is foundational to what we do, and it's why we invest in the grid. As investment needs grow to meet unprecedented load growth and reliability needs, our customers remain our top priority. as investment needs grow to meet unprecedented load growth and reliability needs our customers remain our top priority Since 2021, Exelon's portion of the average customer bill 2% of median income has remained relatively flat, growing only 10 basis points while maintaining top quartile reliability, which saved customers $1 billion in avoided outage costs last year alone. since 2021 exelon's portion of the average customer bill 2% of median income has remained relatively flat growing only 10 basis points while maintaining top quartile reliability which saved customers $1 billion in avoided outage costs last year alone We've reduced annual customer interruptions by nearly 2 million since 2021 and made significant economic impact in our community. we've reduced annual customer interruptions by nearly 2 million since 2021 and made significant economic impact in our community Since 2021, we've employed 20,000 people, sustained 50,000 jobs, and have fostered nearly $60 billion in economic activity in our communities. since 2021 we've employed 20,000 people sustained 50,000 jobs and have fostered nearly $60 billion in economic activity in our communities Bringing value to our customers is foundational to what we do, and it's why we invest in the grid. bringing value to our customers is foundational to what we do and it's why we invest in the grid That's why we've committed to keeping our O&M costs relatively flat from 2024-2026, and in partnership with our jurisdictions, have committed to support our customers through nation-leading programs and advocacy efforts. Conversely, the supply side of the average monthly residential bill in the Mid-Atlantic has increased up to 80% or more over the last five years. Customers are now paying more for less. Since July 2024, PJM customers have paid more than $32 billion as supply in the market declined 1.2 GW. That's why we continue to be at the forefront for advocating for our customers across federal, PJM, and state levels, ensuring that every dollar customers spend can be tied to additional value they receive. We are pleased that federal discussions propose the extension of the PJM capacity auction collar, saving customers tens of billions of dollars through 2030. That's why we've committed to keeping our O&M costs relatively flat from 2024 - 2026, and in partnership with our jurisdictions, have committed to support our customers through nation-leading programs and advocacy efforts. that's why we've committed to keeping our o&m costs relatively flat from 2024 - 2026 and in partnership with our jurisdictions have committed to support our customers through nation-leading programs and advocacy efforts Conversely, the supply side of the average monthly residential bill in the Mid-Atlantic has increased up to 80% or more over the last five years. conversely the supply side of the average monthly residential bill in the mid-atlantic has increased up to 80% or more over the last five years Customers are now paying more for less. customers are now paying more for less Since July 2024, PJM customers have paid more than $32 billion as supply in the market declined 1.2 GW. since july 2024 pjm customers have paid more than $32 billion as supply in the market declined 1.2 gw That's why we continue to be at the forefront for advocating for our customers across federal, PJM, and state levels, ensuring that every dollar customers spend can be tied to additional value they receive. that's why we continue to be at the forefront for advocating for our customers across federal pjm and state levels ensuring that every dollar customers spend can be tied to additional value they receive We are pleased that federal discussions propose the extension of the PJM capacity auction collar, saving customers tens of billions of dollars through 2030. we are pleased that federal discussions propose the extension of the pjm capacity auction collar saving customers tens of billions of dollars through 2030 But our advocacy efforts don't stop there. We are committed to advocating for other policies, such as interconnection queue and rate design reforms that protect customers and support economic development. Our first of its kind transmission service agreements filed at FERC do just that, providing a clear path to interconnection while protecting existing customers. We believe all solutions are required to support energy security and drive affordability. This includes encouraging state-procured solutions such as utility-generated power, which can bring certainty that the supply will be there, offer our states control, and ultimately benefit our customers. But our advocacy efforts don't stop there. but our advocacy efforts don't stop there We are committed to advocating for other policies, such as interconnection queue and rate design reforms that protect customers and support economic development. we are committed to advocating for other policies such as interconnection queue and rate design reforms that protect customers and support economic development Our first of its kind transmission service agreements filed at FERC do just that, providing a clear path to interconnection while protecting existing customers. our first of its kind transmission service agreements filed at ferc do just that providing a clear path to interconnection while protecting existing customers We believe all solutions are required to support energy security and drive affordability. we believe all solutions are required to support energy security and drive affordability This includes encouraging state-procured solutions such as utility-generated power, which can bring certainty that the supply will be there, offer our states control, and ultimately benefit our customers. this includes encouraging state-procured solutions such as utility-generated power which can bring certainty that the supply will be there offer our states control and ultimately benefit our customers Turning to slide 14, with prudent O&M spending and $41.3 billion of projected capital spend, driving 7.9% rate base growth, along with earning ROEs of 9%-10%, we are projecting compounded annual earnings growth near the top end of 5%-7% from our 2025 guidance midpoint of $2.69 per share through 2029. We continue to build momentum across our jurisdictions as we make progress on Pepco and Delmarva rate cases, the ComEd growth plan, and as BGE prepares to file later this year. We look forward to working with our stakeholders to align on the investments that benefit our customers, enable us to maintain and improve upon our operational excellence, all at a fair return. Turning to slide 14, with prudent O&M spending and $41.3 billion of projected capital spend, driving 7.9% rate base growth, along with earning ROEs of 9%-10%, we are projecting compounded annual earnings growth near the top end of 5%-7% from our 2025 guidance midpoint of $2.69 per share through 2029. turning to slide 14 with prudent o&m spending and $41.3 billion of projected capital spend driving 7.9% rate base growth along with earning roes of 9%-10% we are projecting compounded annual earnings growth near the top end of 5%-7% from our 2025 guidance midpoint of $2.69 per share through 2029 We continue to build momentum across our jurisdictions as we make progress on Pepco and Delmarva rate cases, the ComEd growth plan, and as BGE prepares to file later this year. we continue to build momentum across our jurisdictions as we make progress on pepco and delmarva rate cases the comed growth plan and as bge prepares to file later this year We look forward to working with our stakeholders to align on the investments that benefit our customers, enable us to maintain and improve upon our operational excellence, all at a fair return. we look forward to working with our stakeholders to align on the investments that benefit our customers enable us to maintain and improve upon our operational excellence all at a fair return Maintaining our commitment to transparency, we have provided assumptions associated with our expected annual growth in earnings through 2029 on appendix slide 23. As you can see, we expect to deliver the out years near the top end of the 5%-7% range, allowing for flexibility of rate case timing and keeping us on track to deliver near the top end of our 5%-7% annualized growth rate from 2025-2029. We also continue to project an annual dividend growth at 5% and anticipate paying out a dividend of $1.68 per share in 2026, in line with that growth. Finally, turning to slide 15, I will conclude with a review of our balance sheet and financing activity, where we've continued to de-risk and secure cost-effective capital to invest for the benefit of our customers. Maintaining our commitment to transparency, we have provided assumptions associated with our expected annual growth in earnings through 2029 on appendix slide 23. maintaining our commitment to transparency we have provided assumptions associated with our expected annual growth in earnings through 2029 on appendix slide 23 As you can see, we expect to deliver the out years near the top end of the 5%-7% range, allowing for flexibility of rate case timing and keeping us on track to deliver near the top end of our 5%-7% annualized growth rate from 2025 -2 029. as you can see we expect to deliver the out years near the top end of the 5%-7% range allowing for flexibility of rate case timing and keeping us on track to deliver near the top end of our 5%-7% annualized growth rate from 2025 -2 029 We also continue to project an annual dividend growth at 5% and anticipate paying out a dividend of $1.68 per share in 2026, in line with that growth. we also continue to project an annual dividend growth at 5% and anticipate paying out a dividend of $1.68 per share in 2026 in line with that growth Finally, turning to slide 15, I will conclude with a review of our balance sheet and financing activity, where we've continued to de-risk and secure cost-effective capital to invest for the benefit of our customers. finally turning to slide 15 i will conclude with a review of our balance sheet and financing activity where we've continued to de-risk and secure cost-effective capital to invest for the benefit of our customers In December, Exelon Corporation issued $1 billion in convertible debt, pulling forward almost over half of our planned long-term corporate debt needs for 2026. Through 2029, we expect to fund the $41.3 billion capital plan, with $22 billion of internally generated cash flow, $13 billion of debt at the utilities, and $3 billion of total debt at the holding company, with the balance funded with a modest amount of equity. As a reminder, our policy is to fund incremental capital needs with approximately 40% of equity. Specifically, our total equity needs of $3.4 billion over the 4-year plan implies approximately $850 million of annualized equity needs, less than 2% of Exelon's annual market cap. We have already made progress on 20% of these equity needs, having priced $700 million in 2025 using forward contracts under our ATM. In December, Exelon Corporation issued $1 billion in convertible debt, pulling forward almost over half of our planned long-term corporate debt needs for 2026. in december exelon corporation issued $1 billion in convertible debt pulling forward almost over half of our planned long-term corporate debt needs for 2026 Through 2029, we expect to fund the $41.3 billion capital plan, with $22 billion of internally generated cash flow, $13 billion of debt at the utilities, and $3 billion of total debt at the holding company, with the balance funded with a modest amount of equity. through 2029 we expect to fund the $41.3 billion capital plan with $22 billion of internally generated cash flow $13 billion of debt at the utilities and $3 billion of total debt at the holding company with the balance funded with a modest amount of equity As a reminder, our policy is to fund incremental capital needs with approximately 40% of equity. as a reminder our policy is to fund incremental capital needs with approximately 40% of equity Specifically, our total equity needs of $3.4 billion over the 4-year plan implies approximately $850 million of annualized equity needs, less than 2% of Exelon's annual market cap. specifically our total equity needs of $3.4 billion over the 4-year plan implies approximately $850 million of annualized equity needs less than 2% of exelon's annual market cap We have already made progress on 20% of these equity needs, having priced $700 million in 2025 using forward contracts under our ATM. we have already made progress on 20% of these equity needs having priced $700 million in 2025 using forward contracts under our atm Our financial plan has been designed to accommodate the use of other fixed income securities that receive equity credit in place of senior debt at our holding company. Identifying opportunities to mitigate risk and maintaining a strong balance sheet continues to be core to our strategy. Ending 2025, our average credit metrics of 13.5% exceeded our downgrade threshold of 12% at Moody's by 150 basis points. With our balanced funding strategy in place, we target credit metrics of 14% over the planning period, providing 100-200 basis points of financial flexibility on average over our downgrade thresholds at S&P and Moody's throughout our guidance period. We also continue to advocate for language that incorporates all tax repairs for calculating the Corporate Alternative Minimum Tax, which is now reflected in our disclosures. Our financial plan has been designed to accommodate the use of other fixed income securities that receive equity credit in place of senior debt at our holding company. our financial plan has been designed to accommodate the use of other fixed income securities that receive equity credit in place of senior debt at our holding company Identifying opportunities to mitigate risk and maintaining a strong balance sheet continues to be core to our strategy. identifying opportunities to mitigate risk and maintaining a strong balance sheet continues to be core to our strategy Ending 2025, our average credit metrics of 13.5% exceeded our downgrade threshold of 12% at Moody's by 150 basis points. ending 2025 our average credit metrics of 13.5% exceeded our downgrade threshold of 12% at moody's by 150 basis points With our balanced funding strategy in place, we target credit metrics of 14% over the planning period, providing 100-200 basis points of financial flexibility on average over our downgrade thresholds at S&P and Moody's throughout our guidance period. with our balanced funding strategy in place we target credit metrics of 14% over the planning period providing 100-200 basis points of financial flexibility on average over our downgrade thresholds at s&p and moody's throughout our guidance period We also continue to advocate for language that incorporates all tax repairs for calculating the Corporate Alternative Minimum Tax, which is now reflected in our disclosures. we also continue to advocate for language that incorporates all tax repairs for calculating the corporate alternative minimum tax which is now reflected in our disclosures As a reminder, without the implementation of tax repair deduction, our anticipated consolidated credit metrics would average over the plan closer to 13%. Supported by our history of execution, I want to close by reiterating our confidence, not only in the plan we have laid out, but also in the broader opportunity we have to deliver value for our customers and our shareholders for another 25 years and beyond. I'll now turn it back to Calvin for his closing remarks. As a reminder, without the implementation of tax repair deduction, our anticipated consolidated credit metrics would average over the plan closer to 13%. as a reminder without the implementation of tax repair deduction our anticipated consolidated credit metrics would average over the plan closer to 13% Supported by our history of execution, I want to close by reiterating our confidence, not only in the plan we have laid out, but also in the broader opportunity we have to deliver value for our customers and our shareholders for another 25 years and beyond. supported by our history of execution i want to close by reiterating our confidence not only in the plan we have laid out but also in the broader opportunity we have to deliver value for our customers and our shareholders for another 25 years and beyond I'll now turn it back to Calvin for his closing remarks. i'll now turn it back to calvin for his closing remarks

Speaker 1: Thank you, Jeanne. As we look ahead to 2026, our priorities are clear and aligned with what matters most to our customers, communities, policymakers, and investors. We have a track record of meeting our commitments, and we will continue to focus on what we do best: executing our capital plan efficiently and maintaining industry-leading operational performance to benefit our customers, driving affordability through disciplined cost management, prudent investment, and active stakeholder engagement, and pursuing growth and innovative customer solutions. We have the right people, platform, and strategy to continue delivering on these commitments. In 2026, we expect to deploy $10 billion in capital, earning a consolidated 9%-10% operating return on equity. We anticipate delivering operating earnings of $2.81-$2.91 per share, with the goal of being midpoint or better. Thank you, Jeanne. thank you jeanne As we look ahead to 2026, our priorities are clear and aligned with what matters most to our customers, communities, policymakers, and investors. as we look ahead to 2026 our priorities are clear and aligned with what matters most to our customers communities policymakers and investors We have a track record of meeting our commitments, and we will continue to focus on what we do best: executing our capital plan efficiently and maintaining industry-leading operational performance to benefit our customers, driving affordability through disciplined cost management, prudent investment, and active stakeholder engagement, and pursuing growth and innovative customer solutions. we have a track record of meeting our commitments and we will continue to focus on what we do best executing our capital plan efficiently and maintaining industry-leading operational performance to benefit our customers driving affordability through disciplined cost management prudent investment and active stakeholder engagement and pursuing growth and innovative customer solutions We have the right people, platform, and strategy to continue delivering on these commitments. we have the right people platform and strategy to continue delivering on these commitments In 2026, we expect to deploy $10 billion in capital, earning a consolidated 9%-10% operating return on equity. in 2026 we expect to deploy $10 billion in capital earning a consolidated 9%-10% operating return on equity We anticipate delivering operating earnings of $2.81-$2.91 per share, with the goal of being midpoint or better. we anticipate delivering operating earnings of $2.81-$2.91 per share with the goal of being midpoint or better And finally, we will execute a balanced funding strategy that maintains and strengthens our balance sheet. Serving approximately 11 million customers across some of the largest and most economically vital metropolitan areas in the country is a responsibility we do not take lightly. Our infrastructure is essential to the economic future of the regions we serve, and we honor that responsibility through disciplined execution, operational excellence, and a relentless focus on the people who depend on us every day. We are proud of our track record of execution. The sector continues to evolve at a breakneck pace, but Exelon remains steadfast in its priorities, consistently delivering as a proven leader. Gigi, we can now open it up for questions. And finally, we will execute a balanced funding strategy that maintains and strengthens our balance sheet. and finally we will execute a balanced funding strategy that maintains and strengthens our balance sheet Serving approximately 11 million customers across some of the largest and most economically vital metropolitan areas in the country is a responsibility we do not take lightly. serving approximately 11 million customers across some of the largest and most economically vital metropolitan areas in the country is a responsibility we do not take lightly Our infrastructure is essential to the economic future of the regions we serve, and we honor that responsibility through disciplined execution, operational excellence, and a relentless focus on the people who depend on us every day. our infrastructure is essential to the economic future of the regions we serve and we honor that responsibility through disciplined execution operational excellence and a relentless focus on the people who depend on us every day We are proud of our track record of execution. we are proud of our track record of execution The sector continues to evolve at a breakneck pace, but Exelon remains steadfast in its priorities, consistently delivering as a proven leader. the sector continues to evolve at a breakneck pace but exelon remains steadfast in its priorities consistently delivering as a proven leader Gigi, we can now open it up for questions. gigi we can now open it up for questions

Speaker 6: Thank you. If you would like to ask a question, simply press star one one on your telephone keypad. Our first question comes from the line of Nicholas Campanella from Barclays. Thank you. thank you If you would like to ask a question, simply press star one one on your telephone keypad. if you would like to ask a question simply press star one one on your telephone keypad Our first question comes from the line of Nicholas Campanella from Barclays. our first question comes from the line of nicholas campanella from barclays

Speaker 1: Good morning, Nick. Good morning, Nick. good morning nick

Speaker 3: Hey, Nick. Hey, Nick. hey nick

Speaker 5: Hey, good morning, everyone. Thanks for the updates. Appreciate it. So great to see the 5%-7% outlook refresh near the upper end here. I think just maybe could you comment quickly on, you know, the rate-based growth is near 8%. You do have financing lag against that, you know, which maybe would be greater than 1% financing lag between equity needs and debt funding. So just what's the tailwind to the plan to kind of keep you at the high end of the 5%-7% outlook? Hey, good morning, everyone. hey good morning everyone Thanks for the updates. thanks for the updates Appreciate it. appreciate it So great to see the 5%-7% outlook refresh near the upper end here. so great to see the 5%-7% outlook refresh near the upper end here I think just maybe could you comment quickly on, you know, the rate-based growth is near 8%. i think just maybe could you comment quickly on you know the rate-based growth is near 8% You do have financing lag against that, you know, which maybe would be greater than 1% financing lag between equity needs and debt funding. you do have financing lag against that you know which maybe would be greater than 1% financing lag between equity needs and debt funding So just what's the tailwind to the plan to kind of keep you at the high end of the 5%-7% outlook? so just what's the tailwind to the plan to kind of keep you at the high end of the 5%-7% outlook

Speaker 3: Yeah, I think I'll start with kind of, you know, what we've done, right? Which is, if you look back since 2021, we've had actual rate base growth of about 8% and earnings growth of 7.4%. So I think it's really just a continuation of that track record. But if you look at where rate base is at the end of 2029, and you kind of assume, you know, half equity, and then you look at our earned ROEs over the last four years, I think you can get, you know, to an EPS number that then, to your point, you got to back off financing costs. Yeah, I think I'll start with kind of, you know, what we've done, right? yeah i think i'll start with kind of you know what we've done right Which is, if you look back since 2021, we've had actual rate base growth of about 8% and earnings growth of 7.4%. which is if you look back since 2021 we've had actual rate base growth of about 8% and earnings growth of 7.4% So I think it's really just a continuation of that track record. so i think it's really just a continuation of that track record But if you look at where rate base is at the end of 2029, and you kind of assume, you know, half equity, and then you look at our earned ROEs over the last four years, I think you can get, you know, to an EPS number that then, to your point, you got to back off financing costs. but if you look at where rate base is at the end of 2029 and you kind of assume you know half equity and then you look at our earned roes over the last four years i think you can get you know to an eps number that then to your point you got to back off financing costs But I think if you look at kind of the equity needs, the sort of assume an average, you know, debt cost, but then I think what you might be missing is the AFUDC associated with transmission capital. And so if you look at that and how much we're growing transmission over that period, that'll get you to kind of the near top end, Nick. But I think if you look at kind of the equity needs, the sort of assume an average, you know, debt cost, but then I think what you might be missing is the AFUDC associated with transmission capital. but i think if you look at kind of the equity needs the sort of assume an average you know debt cost but then i think what you might be missing is the afudc associated with transmission capital And so if you look at that and how much we're growing transmission over that period, that'll get you to kind of the near top end, Nick. and so if you look at that and how much we're growing transmission over that period that'll get you to kind of the near top end nick

Speaker 5: Okay, great. Great. And then I know that you probably are assuming a range of regulatory outcomes here, but maybe you can just kind of comment on, given so much focus on Pennsylvania, how you're thinking about regulatory strategy for 2026, whether you'd file in 2026 or wait until 2027, and then any kind of considerations there for the timing of rate cases and how that can kind of impact where you are within this 5%-7%? Thank you. Okay, great. okay great Great. great And then I know that you probably are assuming a range of regulatory outcomes here, but maybe you can just kind of comment on, given so much focus on Pennsylvania, how you're thinking about regulatory strategy for 2026, whether you'd file in 2026 or wait until 2027, and then any kind of considerations there for the timing of rate cases and how that can kind of impact where you are within this 5%-7%? and then i know that you probably are assuming a range of regulatory outcomes here but maybe you can just kind of comment on given so much focus on pennsylvania how you're thinking about regulatory strategy for 2026 whether you'd file in 2026 or wait until 2027 and then any kind of considerations there for the timing of rate cases and how that can kind of impact where you are within this 5%-7% Thank you. thank you

Speaker 1: Yeah, no problem, Nick. I will tell you this, is that we are constantly in conversations with all of our stakeholders, and that goes from the governors to the regulatory bodies, to talk about what makes sense to the jurisdictions and their our customers. And with affordability at front and center in all of our jurisdictions, we lean into that first. But we also recognize that we have to maintain a reliable and resilient grid. So to your point, we're looking at what we are going to do in Pennsylvania and what we're gonna do in Maryland. I think in our documents, we've already laid out that we're filing in Maryland this year, and we're considering what is the best approach to action in Pennsylvania. But we will keep you updated on that. Right now, please keep in mind, everything centers on affordability and maintaining a reliable system. Yeah, no problem, Nick. yeah no problem nick I will tell you this, is that we are constantly in conversations with all of our stakeholders, and that goes from the governors to the regulatory bodies, to talk about what makes sense to the jurisdictions and their our customers. i will tell you this is that we are constantly in conversations with all of our stakeholders and that goes from the governors to the regulatory bodies to talk about what makes sense to the jurisdictions and their our customers And with affordability at front and center in all of our jurisdictions, we lean into that first. and with affordability at front and center in all of our jurisdictions we lean into that first But we also recognize that we have to maintain a reliable and resilient grid. but we also recognize that we have to maintain a reliable and resilient grid So to your point, we're looking at what we are going to do in Pennsylvania and what we're gonna do in Maryland. so to your point we're looking at what we are going to do in pennsylvania and what we're gonna do in maryland I think in our documents, we've already laid out that we're filing in Maryland this year, and we're considering what is the best approach to action in Pennsylvania. i think in our documents we've already laid out that we're filing in maryland this year and we're considering what is the best approach to action in pennsylvania But we will keep you updated on that. but we will keep you updated on that Right now, please keep in mind, everything centers on affordability and maintaining a reliable system. right now please keep in mind everything centers on affordability and maintaining a reliable system

Speaker 3: Yeah, and to your point, Nick, the disclosure kind of accommodate a variety of scenarios. So looking at a variety of scenarios around rate case timing, we feel confident in that. You know, the 8% rate base growth, the earned ROEs, and the, you know, sort of manageable amount of equity, delivers that, you know, 5%-7% near the top end. Yeah, and to your point, Nick, the disclosure kind of accommodate a variety of scenarios. yeah and to your point nick the disclosure kind of accommodate a variety of scenarios So looking at a variety of scenarios around rate case timing, we feel confident in that. so looking at a variety of scenarios around rate case timing we feel confident in that You know, the 8% rate base growth, the earned ROEs, and the, you know, sort of manageable amount of equity, delivers that, you know, 5%-7% near the top end. you know the 8% rate base growth the earned roes and the you know sort of manageable amount of equity delivers that you know 5%-7% near the top end

Speaker 5: Great. And then just, you know, Calvin, if I could squeeze one more in, you talked about in your prepared remarks, just supply being a real challenge. And I know this RBA process is in its early innings at PJM, and we've all seen the comments from the IPPs and what they're looking for, but just maybe what are the T&Ds advocating for here, and how do you see that process shaping up? Do you expect it to still be on time for, you know, a September auction? If you could comment at all there. Great. great And then just, you know, Calvin, if I could squeeze one more in, you talked about in your prepared remarks, just supply being a real challenge. and then just you know calvin if i could squeeze one more in you talked about in your prepared remarks just supply being a real challenge And I know this RBA process is in its early innings at PJM, and we've all seen the comments from the IPPs and what they're looking for, but just maybe what are the T&Ds advocating for here, and how do you see that process shaping up? and i know this rba process is in its early innings at pjm and we've all seen the comments from the ipps and what they're looking for but just maybe what are the t&ds advocating for here and how do you see that process shaping up Do you expect it to still be on time for, you know, a September auction? do you expect it to still be on time for you know a september auction If you could comment at all there. if you could comment at all there

Speaker 1: Do you want to take it? Do you want to take it? do you want to take it

Speaker 2: Certainly. Good morning, Nick. Thank you for the question. We've really been focused on engaging, not only at PJM, but with our regulators. We were really pleased to see the administration's, to Calvin's point, the administration's focus on this issue. We do support the development of this reliability backstop option, and we really endeavored also to bring a bit of clarity to the discourse. That's why we enlisted Charles River Associates' support in helping us crystallize what we're dealing with. We need to focus on supply because we know it will lower customer electric costs. We know that we will also see improved reliability. Certainly. certainly Good morning, Nick. good morning nick Thank you for the question. thank you for the question We've really been focused on engaging, not only at PJM, but with our regulators. we've really been focused on engaging not only at pjm but with our regulators We were really pleased to see the administration's, to Calvin's point, the administration's focus on this issue. we were really pleased to see the administration's to calvin's point the administration's focus on this issue We do support the development of this reliability backstop option, and we really endeavored also to bring a bit of clarity to the discourse. we do support the development of this reliability backstop option and we really endeavored also to bring a bit of clarity to the discourse That's why we enlisted Charles River Associates' support in helping us crystallize what we're dealing with. that's why we enlisted charles river associates' support in helping us crystallize what we're dealing with We need to focus on supply because we know it will lower customer electric costs. we need to focus on supply because we know it will lower customer electric costs We know that we will also see improved reliability. we know that we will also see improved reliability To the point on costs, as Calvin mentioned, utility-generated power, which you know, is something we are very focused on, because if no one else is going to build, we know that supply costs are an ever-increasing portion of the customer bill. So we really have to be focused on driving more build. And as this report outlaid, utility-generated power could reduce PJM customer costs by between $9.6 billion and $20 billion in the 2028-2029 delivery year. So while we're focused on supporting the RBA, we also have to, in the near term, focus on extending the price cap, getting more supply on the grid, and as Calvin mentioned, improving reliability. We know that those things will bring greater price stability and ultimately help address affordability, which is an ever-growing concern in each of our jurisdictions. To the point on costs, as Calvin mentioned, utility-generated power, which you know, is something we are very focused on, because if no one else is going to build, we know that supply costs are an ever-increasing portion of the customer bill. to the point on costs as calvin mentioned utility-generated power which you know is something we are very focused on because if no one else is going to build we know that supply costs are an ever-increasing portion of the customer bill So we really have to be focused on driving more build. so we really have to be focused on driving more build And as this report outlaid, utility-generated power could reduce PJM customer costs by between $9.6 billion and $20 billion in the 2028-2029 delivery year. and as this report outlaid utility-generated power could reduce pjm customer costs by between $9.6 billion and $20 billion in the 2028-2029 delivery year So while we're focused on supporting the RBA, we also have to, in the near term, focus on extending the price cap, getting more supply on the grid, and as Calvin mentioned, improving reliability. so while we're focused on supporting the rba we also have to in the near term focus on extending the price cap getting more supply on the grid and as calvin mentioned improving reliability We know that those things will bring greater price stability and ultimately help address affordability, which is an ever-growing concern in each of our jurisdictions. we know that those things will bring greater price stability and ultimately help address affordability which is an ever-growing concern in each of our jurisdictions

Speaker 5: Thanks for the updates. Thanks for the updates. thanks for the updates

Speaker 1: Hey, Nick, I know she doesn't need an introduction, but that was Colette Honorable. All right. Hey, Nick, I know she doesn't need an introduction, but that was Colette Honorable. hey nick i know she doesn't need an introduction but that was colette honorable All right. all right

Speaker 5: Perfect. Thank you very much. Perfect. perfect Thank you very much. thank you very much

Speaker 1: You're welcome. You're welcome. you're welcome

Speaker 2: Thank you. Thank you. thank you

Speaker 6: Thank you. Our next question comes from the line of Shar Pourreza from Wells Fargo. Thank you. thank you Our next question comes from the line of Shar Pourreza from Wells Fargo. our next question comes from the line of shar pourreza from wells fargo

Speaker 1: Good morning, Shar. Good morning, Shar. good morning shar

Speaker 3: Hey, Shar. Hey, Shar. hey shar

Speaker 9: Morning, Calvin. Morning, guys. Just on Colette's, maybe a quick question for Colette. I mean, obviously, you know, there's a lot of affordability things out there, whether you're looking at Maryland, New Jersey, Pennsylvania, Delaware. We saw that in, obviously, Shapiro's budget speech. There's several bills out there in Pennsylvania, Maryland, and New Jersey on resource adequacy. I guess a little bit more specifically, Colette, how are the conversations going on the legislative fronts? Like, can you strike a middle ground in a state like Pennsylvania with the IPPs around a new generation PPA structure, which is currently being proposed under the House and Senate bills, or are the conversations just too wide apart right now? Thanks. Morning, Calvin. morning calvin Morning, guys. morning guys Just on Colette's, maybe a quick question for Colette. just on colette's maybe a quick question for colette I mean, obviously, you know, there's a lot of affordability things out there, whether you're looking at Maryland, New Jersey, Pennsylvania, Delaware. i mean obviously you know there's a lot of affordability things out there whether you're looking at maryland new jersey pennsylvania delaware We saw that in, obviously, Shapiro's budget speech. we saw that in obviously shapiro's budget speech There's several bills out there in Pennsylvania, Maryland, and New Jersey on resource adequacy. there's several bills out there in pennsylvania maryland and new jersey on resource adequacy I guess a little bit more specifically, Colette, how are the conversations going on the legislative fronts? i guess a little bit more specifically colette how are the conversations going on the legislative fronts Like, can you strike a middle ground in a state like Pennsylvania with the IPPs around a new generation PPA structure, which is currently being proposed under the House and Senate bills, or are the conversations just too wide apart right now? like can you strike a middle ground in a state like pennsylvania with the ipps around a new generation ppa structure which is currently being proposed under the house and senate bills or are the conversations just too wide apart right now Thanks. thanks

Speaker 1: Hey, Shar. So this is Calvin. I'll jump in at first- Hey, Shar. hey shar So this is Calvin. so this is calvin I'll jump in at first- i'll jump in at first-

Speaker 9: Hey, Calvin. Hey, Calvin. hey calvin

Speaker 1: Hey, and just say, first and foremost, man, we understand where Governor Shapiro is coming from because we're all frustrated with the affordability dilemma that's hitting all of our customers and his constituents. So at the forefront, we start from a foundation of alignment, that we all have to do something together. And you notice our approach has always been an all-of-the-above approach. How can we help deliver solutions that satisfy everyone? So to your direct question, is there an opportunity to have conversations and engage with you? Absolutely, because we have never said we are going to do this on our own, but we do believe it must involve everyone. And I think you, you talked about Shapiro, but listen, Governor Moore, in his State of the State, even talked about an all-of-the-above. Hey, and just say, first and foremost, man, we understand where Governor Shapiro is coming from because we're all frustrated with the affordability dilemma that's hitting all of our customers and his constituents. hey, and just say first and foremost man we understand where governor shapiro is coming from because we're all frustrated with the affordability dilemma that's hitting all of our customers and his constituents So at the forefront, we start from a foundation of alignment, that we all have to do something together. so at the forefront we start from a foundation of alignment that we all have to do something together And you notice our approach has always been an all-of-the-above approach. and you notice our approach has always been an all-of-the-above approach How can we help deliver solutions that satisfy everyone? how can we help deliver solutions that satisfy everyone So to your direct question, is there an opportunity to have conversations and engage with you? so to your direct question is there an opportunity to have conversations and engage with you Absolutely, because we have never said we are going to do this on our own, but we do believe it must involve everyone. absolutely because we have never said we are going to do this on our own but we do believe it must involve everyone And I think you, you talked about Shapiro, but listen, Governor Moore, in his State of the State, even talked about an all-of-the-above. and i think you you talked about shapiro but listen governor moore in his state of the state even talked about an all-of-the-above It requires everyone to come together to solve this problem, and we are committed to that. So when you talk about the House and Senate bills, it's always in the details, but please know that we're showing up every day in the Capitol and with the government, the PSC, to talk about delivering solutions. And you notice from us, it's not one or done, it's everyone coming through, and it's an all-of-the-above approach. Colette, anything you'd like to add there? It requires everyone to come together to solve this problem, and we are committed to that. it requires everyone to come together to solve this problem and we are committed to that So when you talk about the House and Senate bills, it's always in the details, but please know that we're showing up every day in the Capitol and with the government, the PSC, to talk about delivering solutions. so when you talk about the house and senate bills it's always in the details but please know that we're showing up every day in the capitol and with the government the psc to talk about delivering solutions And you notice from us, it's not one or done, it's everyone coming through, and it's an all-of-the-above approach. and you notice from us it's not one or done it's everyone coming through and it's an all-of-the-above approach Colette, anything you'd like to add there? colette anything you'd like to add there

Speaker 2: Thank you, Calvin. Good morning, Shar. I would add, it will, I hope, put in better context why we showed up as a company the way we did around co-location issues. Co-location can be a great solution. We knew when we saw this headed our way, that we needed to focus on affordability. Now, you see others jumping in with us, it's great to see, and we need these discussions because this is how we will solve the problem. We've been very active, to your question, Shar, not only in Pennsylvania, on the ground there, on the ground with the governor. As you know, we joined Governor Shapiro in the filing at FERC on extending the price cap. Thank you, Calvin. thank you calvin Good morning, Shar. good morning shar I would add, it will, I hope, put in better context why we showed up as a company the way we did around co-location issues. i would add it will i hope put in better context why we showed up as a company the way we did around co-location issues Co-location can be a great solution. co-location can be a great solution We knew when we saw this headed our way, that we needed to focus on affordability. we knew when we saw this headed our way that we needed to focus on affordability Now, you see others jumping in with us, it's great to see, and we need these discussions because this is how we will solve the problem. now you see others jumping in with us it's great to see and we need these discussions because this is how we will solve the problem We've been very active, to your question, Shar, not only in Pennsylvania, on the ground there, on the ground with the governor. we've been very active to your question shar not only in pennsylvania on the ground there on the ground with the governor As you know, we joined Governor Shapiro in the filing at FERC on extending the price cap. as you know we joined governor shapiro in the filing at ferc on extending the price cap We'll continue to partner with him, his administration, and engage heavily in the legislature, not only in Pennsylvania, we're having these same discussions in Maryland, in Delaware, in New Jersey. And I think that, for instance, in the address by Governor Moore, you could see very clearly he has a view on what needs to happen. Take a look at New Jersey, with Governor Sherrill stepping in and really focusing in on the solutions that need to come about in PJM. This is heartening to see, and you will continue to find us engaging in each of our jurisdictions, to help solve this issue of affordability. Let me close by saying, we're bringing solutions. We've been focused, as you know, on our customer relief fund that we developed last year, and then we further supplemented it ahead of the winter season in anticipation of these issues. We'll continue to partner with him, his administration, and engage heavily in the legislature, not only in Pennsylvania, we're having these same discussions in Maryland, in Delaware, in New Jersey. we'll continue to partner with him his administration and engage heavily in the legislature not only in pennsylvania we're having these same discussions in maryland in delaware in new jersey And I think that, for instance, in the address by Governor Moore, you could see very clearly he has a view on what needs to happen. and i think that for instance in the address by governor moore you could see very clearly he has a view on what needs to happen Take a look at New Jersey, with Governor Sherrill stepping in and really focusing in on the solutions that need to come about in PJM. take a look at new jersey with governor sherrill stepping in and really focusing in on the solutions that need to come about in pjm This is heartening to see, and you will continue to find us engaging in each of our jurisdictions, to help solve this issue of affordability. this is heartening to see and you will continue to find us engaging in each of our jurisdictions to help solve this issue of affordability Let me close by saying, we're bringing solutions. let me close by saying we're bringing solutions We've been focused, as you know, on our customer relief fund that we developed last year, and then we further supplemented it ahead of the winter season in anticipation of these issues. we've been focused as you know on our customer relief fund that we developed last year and then we further supplemented it ahead of the winter season in anticipation of these issues Then we will continue focusing on low-income discounts in our jurisdictions. We have those well underway, and as well as focusing on longer-term solutions such as utility-owned generation. So we are very active in our jurisdictions and will continue to be active. Thank you. Then we will continue focusing on low-income discounts in our jurisdictions. then we will continue focusing on low-income discounts in our jurisdictions We have those well underway, and as well as focusing on longer-term solutions such as utility-owned generation. we have those well underway and as well as focusing on longer-term solutions such as utility-owned generation So we are very active in our jurisdictions and will continue to be active. so we are very active in our jurisdictions and will continue to be active Thank you. thank you

Speaker 9: Is it fair to just assume that there is some level of collaboration with the generators, or is that a bit too far apart? So I'm just trying to piece that out. Is it fair to just assume that there is some level of collaboration with the generators, or is that a bit too far apart? is it fair to just assume that there is some level of collaboration with the generators or is that a bit too far apart So I'm just trying to piece that out. so i'm just trying to piece that out

Speaker 3: At the right price, right? Like, I think it's we're always- At the right price, right? at the right price right Like, I think it's we're always- like i think it's we're always-

Speaker 9: Okay. Okay. okay

Speaker 3: Gonna be our customer advocates. So I think right now, what's the problem, right? Right now, our customers are paying more for less, and so we got to get to the right place where there's actual new generation at the right price. If they want to build it at the right price, wonderful, right? But at the end of the day, to collect on Calvin's comments, that the Charles River report was really helpful because it said, you know, if we had been doing this and we had the generation needed for 2029, that you know, cost would have been, you know, $10 billion-$20 billion lower. We can't go back in time and build that generation, but we can take action now, and that's what we're focused on, is getting the generation built at the right price. Gonna be our customer advocates. gonna be our customer advocates So I think right now, what's the problem, right? so i think right now what's the problem right Right now, our customers are paying more for less, and so we got to get to the right place where there's actual new generation at the right price. right now our customers are paying more for less and so we got to get to the right place where there's actual new generation at the right price If they want to build it at the right price, wonderful, right? if they want to build it at the right price wonderful right But at the end of the day, to collect on Calvin's comments, that the Charles River report was really helpful because it said, you know, if we had been doing this and we had the generation needed for 2029, that you know, cost would have been, you know, $10 billion-$20 billion lower. but at the end of the day to collect on calvin's comments that the charles river report was really helpful because it said you know if we had been doing this and we had the generation needed for 2029 that you know cost would have been you know $10 billion-$20 billion lower We can't go back in time and build that generation, but we can take action now, and that's what we're focused on, is getting the generation built at the right price. we can't go back in time and build that generation but we can take action now and that's what we're focused on is getting the generation built at the right price

Speaker 9: Got it. And then just a last question here, just to tease out, Nick's question around the CAGR. There's not a lot of delta between rate base growth and the EPS growth, so that sort of makes sense where you are. But I mean, Jeanne, clearly from the slides this morning, there's plenty of incremental upsides, whether you're looking at, you know, PJM, RTEP or MISO tranches, data center TSAs, resource adequacy. I guess, what's the correct podium to step function change the trajectory, which has been out there for some time? Got it. got it And then just a last question here, just to tease out, Nick's question around the CAGR. and then just a last question here just to tease out nick's question around the cagr There's not a lot of delta between rate base growth and the EPS growth, so that sort of makes sense where you are. there's not a lot of delta between rate base growth and the eps growth so that sort of makes sense where you are But I mean, Jeanne, clearly from the slides this morning, there's plenty of incremental upsides, whether you're looking at, you know, PJM, RTEP or MISO tranches, data center TSAs, resource adequacy. but i mean jeanne clearly from the slides this morning there's plenty of incremental upsides whether you're looking at you know pjm rtep or miso tranches data center tsas resource adequacy I guess, what's the correct podium to step function change the trajectory, which has been out there for some time? i guess what's the correct podium to step function change the trajectory which has been out there for some time Is it as it could be as simple as we need a few more quarters to execute. I guess, how do we sort of think about the upsides that, that are evident on these slide decks, whether. And it will be incremental to rate base growth, it'll be incremental to EPS growth. I guess, what do you need to see the step function change that 5%-7%? Thanks. Is it as it could be as simple as we need a few more quarters to execute. is it as it could be as simple as we need a few more quarters to execute I guess, how do we sort of think about the upsides that, that are evident on these slide decks, whether. i guess how do we sort of think about the upsides that that are evident on these slide decks whether And it will be incremental to rate base growth, it'll be incremental to EPS growth. and it will be incremental to rate base growth it'll be incremental to eps growth I guess, what do you need to see the step function change that 5%-7%? i guess what do you need to see the step function change that 5%-7% Thanks. thanks

Speaker 3: Yeah, no, good question, and I think, at the end, we feel like it is kind of progressing, right? So last rate base CAGR was 7.4%. We're sitting at 7.9% now. Off of that 7.4%, you know, we delivered above expectations through 2025. So I think we are seeing continued progress there. I think, you know, given the deconcentrated plan, in addition to progress, it's really executable. We, as I mentioned in my prepared remarks, we've delivered within our capital within 2% since separation. And you look at our rate base this year within 1%. That's no small task on $64 billion of rate base. So we feel not only is it really executable, we should feel confident in that growth, but it is continuing to progress. Yeah, no, good question, and I think, at the end, we feel like it is kind of progressing, right? yeah no good question and i think at the end we feel like it is kind of progressing right So last rate base CAGR was 7.4%. so last rate base cagr was 7.4% We're sitting at 7.9% now. we're sitting at 7.9% now Off of that 7.4%, you know, we delivered above expectations through 2025. off of that 7.4% you know we delivered above expectations through 2025 So I think we are seeing continued progress there. so i think we are seeing continued progress there I think, you know, given the deconcentrated plan, in addition to progress, it's really executable. i think you know given the deconcentrated plan in addition to progress it's really executable We, as I mentioned in my prepared remarks, we've delivered within our capital within 2% since separation. we as i mentioned in my prepared remarks we've delivered within our capital within 2% since separation And you look at our rate base this year within 1%. and you look at our rate base this year within 1% That's no small task on $64 billion of rate base. that's no small task on $64 billion of rate base So we feel not only is it really executable, we should feel confident in that growth, but it is continuing to progress. so we feel not only is it really executable we should feel confident in that growth but it is continuing to progress Like, we're not gonna be the flashy, right, it's gonna go up double digits, but it's gonna—it's going up and it's highly executable, defensible, and we're not gonna give you a number that I can't sit here and say that. So I think that's how we should think about it. Like, we're not gonna be the flashy, right, it's gonna go up double digits, but it's gonna—it's going up and it's highly executable, defensible, and we're not gonna give you a number that I can't sit here and say that. like we're not gonna be the flashy right it's gonna go up double digits but it's gonna—it's going up and it's highly executable defensible and we're not gonna give you a number that i can't sit here and say that So I think that's how we should think about it. so i think that's how we should think about it

Speaker 9: Okay. Yeah, that's actually a perfect answer. Thanks, guys. Appreciate it. Congrats, Calvin. Bye. Okay. okay Yeah, that's actually a perfect answer. yeah that's actually a perfect answer Thanks, guys. thanks guys Appreciate it. appreciate it Congrats, Calvin. congrats calvin Bye. bye

Speaker 1: Thank you, Shar. Appreciate you. Thank you, Shar. thank you shar Appreciate you. appreciate you

Speaker 6: Thank you. One moment for our next question. Our next question comes from the line of Paul Zimbardo from Jefferies. Thank you. thank you One moment for our next question. one moment for our next question Our next question comes from the line of Paul Zimbardo from Jefferies. our next question comes from the line of paul zimbardo from jefferies

Speaker 1: Morning, Paul. Morning, Paul. morning paul

Speaker 7: Hi, good morning, team. Kudos. Nicely done. Hi, good morning, team. hi good morning team Kudos. kudos Nicely done. nicely done

Speaker 1: Thank you. Thank you. thank you

Speaker 7: To continue the theme a little bit from Nick and Shar, just almost asking in inverse. It seems like rate-based growth is pretty consistent with historical the 7.9%, and you did grow at 7.4%, despite some headwinds in Illinois and elsewhere, and of course, tailwinds, too. Why could you not grow at that kind of zip code, the same 7.5% growth rate? Again, you doing even better than the top end. Like, is it kind of the conservatism like you were mentioning or just getting more comfort? If you could elaborate a little bit more. To continue the theme a little bit from Nick and Shar, just almost asking in inverse. to continue the theme a little bit from nick and shar just almost asking in inverse It seems like rate-based growth is pretty consistent with historical the 7.9%, and you did grow at 7.4%, despite some headwinds in Illinois and elsewhere, and of course, tailwinds, too. it seems like rate-based growth is pretty consistent with historical the 7.9% and you did grow at 7.4% despite some headwinds in illinois and elsewhere and of course tailwinds too Why could you not grow at that kind of zip code, the same 7.5% growth rate? why could you not grow at that kind of zip code the same 7.5% growth rate Again, you doing even better than the top end. again you doing even better than the top end Like, is it kind of the conservatism like you were mentioning or just getting more comfort? like is it kind of the conservatism like you were mentioning or just getting more comfort If you could elaborate a little bit more. if you could elaborate a little bit more

Speaker 3: Sure. I mean, I think, you know, we're always going to strive to exceed expectations, but I think, again, giving you a number you can count on. I think, you know, financing costs are increasing, right? So you've got to account for that. But, you know, we are investing more in transmission, and so that gives us confidence in the, you know, that we can continue with the strong earned ROEs that we've had. So I think, you know, I think it's defensible. It is growing, I think, you know, but you've got to think about giving a number that's defensible, that we can manage, but also accounts for the associated financing costs. But we're always going to strive to exceed your expectations, Paul. Sure. sure I mean, I think, you know, we're always going to strive to exceed expectations, but I think, again, giving you a number you can count on. i mean i think you know we're always going to strive to exceed expectations but i think again giving you a number you can count on I think, you know, financing costs are increasing, right? i think you know financing costs are increasing right So you've got to account for that. so you've got to account for that But, you know, we are investing more in transmission, and so that gives us confidence in the, you know, that we can continue with the strong earned ROEs that we've had. but you know we are investing more in transmission and so that gives us confidence in the you know that we can continue with the strong earned roes that we've had So I think, you know, I think it's defensible. so i think you know i think it's defensible It is growing, I think, you know, but you've got to think about giving a number that's defensible, that we can manage, but also accounts for the associated financing costs. it is growing i think you know but you've got to think about giving a number that's defensible that we can manage but also accounts for the associated financing costs But we're always going to strive to exceed your expectations, Paul. but we're always going to strive to exceed your expectations paul

Speaker 7: No, and you have been so. If you give a mouse a cookie, you always have to ask for more. But, the- No, and you have been so. no and you have been so If you give a mouse a cookie, you always have to ask for more. if you give a mouse a cookie you always have to ask for more But, the- but the-

Speaker 1: I noticed that, Paul. Thank you. I noticed that, Paul. i noticed that paul Thank you. thank you

Speaker 7: The last one I wanted to ask, just on the incremental financing cost. So you definitely made a lot of progress on the balance sheet. How should we think about financing incremental capital opportunities as they come? Should we be using kind of that 40% in this roll forward- The last one I wanted to ask, just on the incremental financing cost. the last one i wanted to ask just on the incremental financing cost So you definitely made a lot of progress on the balance sheet. so you definitely made a lot of progress on the balance sheet How should we think about financing incremental capital opportunities as they come? how should we think about financing incremental capital opportunities as they come Should we be using kind of that 40% in this roll forward- should we be using kind of that 40% in this roll forward-

Speaker 3: Yeah. Yeah. yeah

Speaker 7: Or maybe a lower number? Or maybe a lower number? or maybe a lower number

Speaker 3: No, it's the 40%. We want to maintain and you know keep that cushion we've worked so hard to get on the balance sheet. So what that results in is about the $3.4 billion over the 4-year period. On an annual basis, it's less than 2% of market cap, very manageable. And as you probably saw, we've already made good progress on that. So we've priced $700 million of that $3.4 billion. So on an annual basis for 2026, you know, it's a small amount to do. And given our ATM and our trading activities, it's very manageable. But we're gonna stick with that 40%. No, it's the 40%. no it's the 40% We want to maintain and you know keep that cushion we've worked so hard to get on the balance sheet. we want to maintain and you know keep that cushion we've worked so hard to get on the balance sheet So what that results in is about the $3.4 billion over the 4-year period. so what that results in is about the $3.4 billion over the 4-year period On an annual basis, it's less than 2% of market cap, very manageable. on an annual basis it's less than 2% of market cap very manageable And as you probably saw, we've already made good progress on that. and as you probably saw we've already made good progress on that So we've priced $700 million of that $3.4 billion. so we've priced $700 million of that $3.4 billion So on an annual basis for 2026, you know, it's a small amount to do. so on an annual basis for 2026 you know it's a small amount to do And given our ATM and our trading activities, it's very manageable. and given our atm and our trading activities it's very manageable But we're gonna stick with that 40%. but we're gonna stick with that 40%

Speaker 7: Okay. Thank you very much, team. Okay. okay Thank you very much, team. thank you very much team

Speaker 1: Thank you, Paul. Thank you, Paul. thank you paul

Speaker 6: Thank you. One moment for our next question. Our next question will be from the line of Steve Fleishman from Wolfe. Thank you. thank you One moment for our next question. one moment for our next question Our next question will be from the line of Steve Fleishman from Wolfe. our next question will be from the line of steve fleishman from wolfe

Speaker 1: Good morning, Steve. Good morning, Steve. good morning steve

Speaker 10: Hey, good morning. So just, maybe just on the with the move to, to more transmission, continuing that 9%-10% earned ROE range, are we seeing some kind of movement up within that range that helps kind of put all these pieces together on the, on the growth rate? Hey, good morning. hey good morning So just, maybe just on the with the move to, to more transmission, continuing that 9%-10% earned ROE range, are we seeing some kind of movement up within that range that helps kind of put all these pieces together on the, on the growth rate? so just maybe just on the with the move to to more transmission continuing that 9%-10% earned roe range are we seeing some kind of movement up within that range that helps kind of put all these pieces together on the on the growth rate

Speaker 3: Yeah, I think, you know, again- Yeah, I think, you know, again- yeah i think you know again-

Speaker 10: Yeah. Yeah. yeah

Speaker 3: Yeah, yeah. If we go back to, I think, since separation, 2022-2025, our average earned has been somewhere around 9.4. To your point, as we have been turning the ship towards transmission, I think you can expect that, if not slightly better, but it's going to take some time for some of these, you know, transmission projects to close. We've got some longer-dated ones, the big ones. Well, that's the direction we're headed. Yeah, yeah. yeah yeah If we go back to, I think, since separation, 2022-2025, our average earned has been somewhere around 9.4. if we go back to i think since separation 2022-2025 our average earned has been somewhere around 9.4 To your point, as we have been turning the ship towards transmission, I think you can expect that, if not slightly better, but it's going to take some time for some of these, you know, transmission projects to close. to your point as we have been turning the ship towards transmission i think you can expect that if not slightly better but it's going to take some time for some of these you know transmission projects to close We've got some longer-dated ones, the big ones. we've got some longer-dated ones the big ones Well, that's the direction we're headed. well that's the direction we're headed

Speaker 10: Okay. Okay, and then on the CAMT, that you mentioned, just when, when do you expect to actually have that, like, full clarity on that? Sometime this, sounds like sometime this year? Okay. okay Okay, and then on the CAMT, that you mentioned, just when, when do you expect to actually have that, like, full clarity on that? okay and then on the camt that you mentioned just when when do you expect to actually have that like full clarity on that Sometime this, sounds like sometime this year? sometime this sounds like sometime this year

Speaker 3: Yes, yes. We are hopeful that we have a final, final resolution here in the near term. Yes, yes. yes yes We are hopeful that we have a final, final resolution here in the near term. we are hopeful that we have a final final resolution here in the near term

Speaker 10: Okay. And then lastly, just tying up some loose state stuff that, are we still going to get a Maryland lessons learned at some point? Or, yeah, is there any chance they just say, kind of we're moved on to- Okay. okay And then lastly, just tying up some loose state stuff that, are we still going to get a Maryland lessons learned at some point? and then lastly just tying up some loose state stuff that are we still going to get a maryland lessons learned at some point Or, yeah, is there any chance they just say, kind of we're moved on to- or yeah is there any chance they just say kind of we're moved on to-

Speaker 1: No- No- no-

Speaker 10: I don't know. Yeah. I don't know. i don't know Yeah. yeah

Speaker 1: Yeah. Steve, I hear in your voice my frustration, so thank you. It is, we do believe we're going to get a lessons learned, and I know the team has been talking to the commission and the new chair, who we've worked with as a former state senator, and he understands the need for this. So we do believe we'll get a lessons learned, and I wish I could give you a timeline, but we do believe it will happen in 2026. Yeah. yeah Steve, I hear in your voice my frustration, so thank you. steve i hear in your voice my frustration so thank you It is, we do believe we're going to get a lessons learned, and I know the team has been talking to the commission and the new chair, who we've worked with as a former state senator, and he understands the need for this. it is we do believe we're going to get a lessons learned and i know the team has been talking to the commission and the new chair who we've worked with as a former state senator and he understands the need for this So we do believe we'll get a lessons learned, and I wish I could give you a timeline, but we do believe it will happen in 2026. so we do believe we'll get a lessons learned and i wish i could give you a timeline but we do believe it will happen in 2026

Speaker 10: Okay. But you'll file BGE, you know, probably before you get it? Okay. okay But you'll file BGE, you know, probably before you get it? but you'll file bge you know probably before you get it

Speaker 1: Yes. Yes. yes

Speaker 3: Yes. Yes. yes

Speaker 2: Yes. Yes. yes

Speaker 10: Yeah. Okay. Yeah. yeah Okay. okay

Speaker 3: We're going to file the, probably the first half and, and, you know, would love to accommodate whatever's in there. But, but to Calvin's point, we've been, you know, transparent with the commission around, you know, the fact that the rates expire in 2027, is that we have to do something here. We're going to file the, probably the first half and, and, you know, would love to accommodate whatever's in there. we're going to file the probably the first half and and you know would love to accommodate whatever's in there But, but to Calvin's point, we've been, you know, transparent with the commission around, you know, the fact that the rates expire in 2027, is that we have to do something here. but but to calvin's point we've been you know transparent with the commission around you know the fact that the rates expire in 2027 is that we have to do something here

Speaker 10: And then a last quick one. I know New Jersey is not your, one of your larger states, but just curious, your take so far under the new governor. And then a last quick one. and then a last quick one I know New Jersey is not your, one of your larger states, but just curious, your take so far under the new governor. i know new jersey is not your one of your larger states but just curious your take so far under the new governor

Speaker 1: Absolutely. Not to your point, not one of our largest, but it's very important. And Tyler Anthony, the CEO of Pepco Holdings, has spent time with the other EDCs, with Governor Sherrill. Mike Innocenzo, our Chief Operating Officer, spent time, and I'll let Mike elaborate further on New Jersey, if you would like to, Mike. Absolutely. absolutely Not to your point, not one of our largest, but it's very important. not to your point not one of our largest but it's very important And Tyler Anthony, the CEO of Pepco Holdings, has spent time with the other EDCs, with Governor Sherrill. and tyler anthony the ceo of pepco holdings has spent time with the other edcs with governor sherrill Mike Innocenzo, our Chief Operating Officer, spent time, and I'll let Mike elaborate further on New Jersey, if you would like to, Mike. mike innocenzo our chief operating officer spent time and i'll let mike elaborate further on new jersey if you would like to mike

Speaker 4: Yeah, I would just say, you know, it's, you know, it's certainly got a lot of headlines during the election campaign, but if you look at the content of the executive orders, we think that they're very constructive. They're things that we can live with. And I would say behind the scenes, the conversations are focused on the right areas, which is, you know, if we're really going to go after affordability, we need to bring more supply in an affordable way and an efficient way. And we fully support those discussions. Yeah, I would just say, you know, it's, you know, it's certainly got a lot of headlines during the election campaign, but if you look at the content of the executive orders, we think that they're very constructive. yeah i would just say you know it's you know it's certainly got a lot of headlines during the election campaign but if you look at the content of the executive orders we think that they're very constructive They're things that we can live with. they're things that we can live with And I would say behind the scenes, the conversations are focused on the right areas, which is, you know, if we're really going to go after affordability, we need to bring more supply in an affordable way and an efficient way. and i would say behind the scenes the conversations are focused on the right areas which is you know if we're really going to go after affordability we need to bring more supply in an affordable way and an efficient way And we fully support those discussions. and we fully support those discussions

Speaker 10: Great. Thank you. Great. great Thank you. thank you

Speaker 1: Thank you, Steve. Thank you, Steve. thank you steve

Speaker 6: Thank you. Thanks to all our participants for joining us today. This concludes our presentation. You may now disconnect. Have a good day. Thank you. thank you Thanks to all our participants for joining us today. thanks to all our participants for joining us today This concludes our presentation. this concludes our presentation You may now disconnect. you may now disconnect Have a good day. have a good day