Exelon Boosts Earnings, Lays Out $31.3 Billion Capital Plan for 2023-2026

Written by John Egan for Industrial Info Resources (Sugar Land, Texas)--After investing about $7.2 billion in capital projects in 2022, Exelon Corporation (NYSE:EXC) (Chicago, Illinois) plans to make an additional $31.3 billion in capital expenditures (Capex) over the 2023-2026 period, company officials told investors on an earnings call Tuesday. Roughly two-thirds of that amount is slated to go to electric distribution projects.

Industrial Info is tracking 19 Exelon capital projects valued at about $1.15 billion.

Exelon is the corporate parent for six operating utilities located in Illinois, Pennsylvania, Washington, D.C., Maryland, New Jersey and Delaware. It is the nation's largest poles and wires distributor of electricity and natural gas, serving about 10 million customers. Last year it spun off its electric generation assets into the newly created Constellation Energy Corporation (NASDAQ:CEG) (Baltimore, Maryland).

Exelon's 2023-2026 capital budget is about $2.3 billion higher than its capex for the 2022-2025 period, company officials said. The 2022-2025 capital plan was about $2.3 billion greater than its prior four-year plan, which covered 2021-2024.

Click on the image at right to see rolling four-year capital budgets for Exelon.

Exelon officials broke out planned capital spending by operating utility:

• Commonwealth Edison, or ComEd, is expected to make about $11.1 billion in capital investments over the 2023-2026 period, following 2022's investment of $2.525 billion. Around 75% of each year's planned spending will go to electric distribution.
• The PHI unit, which serves the greater Washington, D.C. metropolitan area, is expected to make approximately $7.9 billion in capital investments over the next four years. Roughly two-thirds of each year's spending will go to electric distribution, with only a small amount going to the utility's natural gas unit.
• About $6.2 billion of capex will be made over the 2023-2026 period in Exelon's PECO Energy unit, which provides electricity and natural gas service in the greater Philadelphia area.
• Exelon's Baltimore Gas and Electricity (BGE) unit will make an estimated $6 billion of capital investments over the next four years. The utility will split each annual investment relatively equally between electric distribution, electric transmission and natural gas distribution.
• Delmarva Power & Light, the Exelon unit serving parts of Delaware, is scheduled to make approximately $2.350 billion of capex over the 2023-2026 period. Roughly half of those annual outlays will go to electric distribution, with electric transmission slated to make the second-largest annual investment.
• Exelon's Atlantic City Electric (ACE) unit, which serves southern New Jersey, is scheduled to make approximately $1.825 billion in capital investments over the next four years. Roughly 60% of each yearly investment will go to the utility's electric distribution operations.

For the just-completed fourth quarter, Exelon earned $432 million, up from 2021 profits of $391 million in the comparable year-earlier quarter. For all of 2022, Exelon earned $2.17 billion, a 28% gain over 2021's earnings of $1.7 billion.

In an earnings statement, Exelon President and Chief Executive Calvin Butler commented, "In 2022, Exelon showcased our ability as a pure transmission and distribution company to deliver on our financial and operational commitments. Because of the partnership with our customers and communities, Exelon is ready to lead the energy transition to a cleaner and brighter future. Our teams are focused on the things that matter to our customers: safety, reliability, sustainability and affordability, while ensuring our actions are grounded in taking an equitable and inclusive approach to the communities we serve. It's a strong foundation for 2023 and beyond."

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).