CHICAGO–(BUSINESS WIRE)–Exelon Corporation (Nasdaq: EXC) today reported its financial results for the third quarter of 2024.
“Our strong third quarter performance highlights the dedication of our 20,000 employees delivering top quartile service despite unprecedented challenges,” said Exelon President and Chief Executive Officer Calvin Butler. “This summer, our regions faced record-breaking severe weather, including an historic number of tornadoes in the Chicago area. Yet, we maintained top quartile reliability, with ComEd and Pepco Holdings performing in the top decile. We’re also making progress on our work with regulators to invest in a resilient grid, and doing our part to keep energy affordability front and center. As we approach the end of 2024, we remain focused on building a cleaner and brighter future for our customers and communities.”
“Exelon delivered another quarter of strong financial performance, with third quarter adjusted operating earnings of $0.71 per share, and we remain on track to meet our full year earnings guidance of $2.40 to $2.50 per share,” said Exelon Chief Financial Officer Jeanne Jones. “Our disciplined approach to financial management, combined with operational excellence, continues to drive strong results across our local energy companies. We are making $34.5 billion of critical investments in our energy infrastructure for our customers, which gives us the confidence to deliver our long-term earnings per share growth target of 5-7% through 2027.”
Third Quarter 2024
Exelon’s GAAP net income for the third quarter of 2024 remained relatively consistent with the prior period at $0.70 per share. Adjusted (non-GAAP) operating earnings for the third quarter of 2024 increased to $0.71 per share from $0.67 per share in the third quarter of 2023. For the reconciliations of GAAP net income to Adjusted (non-GAAP) operating earnings, refer to the tables beginning on page 3.
The GAAP net income and Adjusted (non-GAAP) operating earnings in the third quarter of 2024 primarily reflects higher utility earnings due to distribution rate increases at BGE, distribution and transmission rate increases at PHI, timing of distribution earnings and a higher return on regulatory assets at ComEd, and decreased storm costs at PHI. This was partially offset by higher interest expense at PECO, BGE, and PHI; higher credit loss expense at PECO and BGE; higher depreciation and amortization expense at PECO and BGE; and lower carrying costs recovery related to the CMC regulatory asset at ComEd.
Operating Company Results1
ComEd
ComEd’s third quarter of 2024 GAAP net income increased to $360 million from $333 million in the third quarter of 2023. ComEd’s Adjusted (non-GAAP) operating earnings for the third quarter of 2024 increased to $360 million from $338 million in the third quarter of 2023, primarily due to timing of distribution earnings, higher distribution rate base, and higher return on regulatory assets. These were partially offset by a lower allowed distribution ROE, the absence of a return on the pension asset within distribution earnings, and lower carrying costs recovery related to the CMC regulatory asset. Due to revenue decoupling, ComEd’s distribution earnings are not affected by actual weather or customer usage patterns.
PECO
PECO’s third quarter of 2024 GAAP net income decreased to $117 million from $146 million in the third quarter of 2023. PECO’s Adjusted (non-GAAP) operating earnings for the third quarter of 2024 decreased to $118 million from $149 million in the third quarter of 2023, primarily due to increases in credit loss expense, interest expense, and depreciation expense.
BGE
BGE’s third quarter of 2024 GAAP net income remained relatively consistent with the prior period at $45 million. BGE’s Adjusted (non-GAAP) operating earnings for the third quarter of 2024 decreased to $45 million from $47 million in the third quarter of 2023. GAAP net income remained relatively consistent primarily due to favorable distribution rates, offset by increases in interest expense, depreciation and amortization expense, and credit loss expense. Due to revenue decoupling, BGE’s distribution earnings are not affected by actual weather or customer usage patterns.
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1 Exelon’s four business units include ComEd, which consists of electricity transmission and distribution operations in northern Illinois; PECO, which consists of electricity transmission and distribution operations and retail natural gas distribution operations in southeastern Pennsylvania; BGE, which consists of electricity transmission and distribution operations and retail natural gas distribution operations in central Maryland; and PHI, which consists of electricity transmission and distribution operations in the District of Columbia and portions of Maryland, Delaware, and New Jersey and retail natural gas distribution operations in northern Delaware.
PHI
PHI’s third quarter of 2024 GAAP net income increased to $278 million from $232 million in the third quarter of 2023. PHI’s Adjusted (non-GAAP) operating earnings for the third quarter of 2024 increased to $278 million from $234 million in the third quarter of 2023, primarily due to higher electric distribution and transmission rates, and a decrease in storm costs and various operating expenses, partially offset by an increase in interest expense. Due to revenue decoupling, PHI’s distribution earnings related to Pepco Maryland, DPL Maryland, Pepco District of Columbia, and ACE are not affected by actual weather or customer usage patterns.
Recent Developments and Third Quarter Highlights
- Dividend: On October 29, 2024, Exelon’s Board of Directors declared a regular quarterly dividend of $0.38 per share on Exelon’s common stock. The dividend is payable on December 13, 2024, to Exelon’s shareholders of record as of the close of business on November 11, 2024.
- Rate Case Developments:
- DPL Delaware Natural Gas Distribution Rate Case: On September 20, 2024, DPL filed an application with the DEPSC to increase its annual natural gas rates by $36 million, reflecting an ROE of 10.65%. DPL currently expects a decision in the first quarter of 2026 but cannot predict if the DEPSC will approve the application as filed.
- Financing Activities:
- On August 28, 2024, ACE issued $175 million of its First Mortgage Bonds, consisting of $75 million of its First Mortgage 5.29% Series Bonds due on August 28, 2034 and $100 million of its First Mortgage 5.49% Series Bonds due on August 28, 2039. ACE used the proceeds of the sale of the ACE Bonds to repay existing indebtedness and for general corporate purposes.
- On September 10, 2024, PECO Energy Company (PECO) issued $575 million aggregate principal amount of its First and Refunding Mortgage Bonds, 5.250% Series due September 15, 2054. PECO used the net proceeds from the sale of the Bonds to refinance currently outstanding commercial paper and for general corporate purposes.
Adjusted (non-GAAP) Operating Earnings Reconciliation
Adjusted (non-GAAP) operating earnings for the third quarter of 2024 do not include the following items (after tax) that were included in reported GAAP net income:
|
(in millions, except per share amounts) |
Exelon Earnings per Diluted Share |
Exelon |
ComEd |
PECO |
BGE |
PHI |
||||||
|
2024 GAAP net income |
$ |
0.70 |
$ |
707 |
$ |
360 |
$ |
117 |
$ |
45 |
$ |
278 |
|
Change in environmental liabilities (net of taxes of $0) |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
Change in FERC audit liability (net of taxes of $0) |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
Cost management charge (net of taxes of $0, and $0, respectively) |
|
— |
|
1 |
|
— |
|
1 |
|
— |
|
— |
|
2024 Adjusted (non-GAAP) operating earnings |
$ |
0.71 |
$ |
708 |
$ |
360 |
$ |
118 |
$ |
45 |
$ |
278 |
Adjusted (non-GAAP) operating earnings for the third quarter of 2023 do not include the following items (after tax) that were included in reported GAAP net income:
|
(in millions, except per share amounts) |
Exelon Earnings per Diluted Share |
Exelon |
ComEd |
PECO |
BGE |
PHI |
|||||||||
|
2023 GAAP net income |
$ |
0.70 |
|
$ |
700 |
|
$ |
333 |
$ |
146 |
$ |
45 |
$ |
232 |
|
|
Mark-to-market impact of economic hedging activities (net of taxes of $4) |
|
0.01 |
|
|
12 |
|
|
— |
|
— |
|
— |
|
— |
|
|
Asset retirement obligation (net of taxes of $1) |
|
— |
|
|
(1 |
) |
|
— |
|
— |
|
— |
|
(1 |
) |
|
Separation costs (net of taxes of $5, $2, $1, $1, and $1, respectively) |
|
0.01 |
|
|
14 |
|
|
5 |
|
3 |
|
2 |
|
4 |
|
|
Income tax-related adjustments (entire amount represents tax expense) |
|
(0.05 |
) |
|
(54 |
) |
|
— |
|
— |
|
— |
|
— |
|
|
2023 Adjusted (non-GAAP) operating earnings |
$ |
0.67 |
|
$ |
671 |
|
$ |
338 |
$ |
149 |
$ |
47 |
$ |
234 |
|
|
__________ Note: Amounts may not sum due to rounding. Unless otherwise noted, the income tax impact of each reconciling item between GAAP net income and Adjusted (non-GAAP) operating earnings is based on the marginal statutory federal and state income tax rates for each Registrant, taking into account whether the income or expense item is taxable or deductible, respectively, in whole or in part. For all items, the marginal statutory income tax rates for 2024 and 2023 ranged from 24.0% to 29.0%. |
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About Exelon
Exelon (Nasdaq: EXC) is a Fortune 200 company and the nation’s largest utility company, serving more than 10.5 million customers through six fully regulated transmission and distribution utilities — Atlantic City Electric (ACE), Baltimore Gas and Electric (BGE), Commonwealth Edison (ComEd), Delmarva Power & Light (DPL), PECO Energy Company (PECO), and Potomac Electric Power Company (Pepco). 20,000 Exelon employees dedicate their time and expertise to supporting our communities through reliable, affordable and efficient energy delivery, workforce development, equity, economic development and volunteerism. Follow @Exelon on Twitter | X.
