Exelon Shifts U.S. Spending to T&D as Affordability Fears Grow

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Written by Will Ploch, Assistant Editor-in-Chief for IIR News Intelligence (Sugar Land, Texas)

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Summary

Amid rising calls for lower energy costs and more data center development, Exelon executives are prioritizing transmission and distribution projects in the near term.

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Pocketbook Problems Persist

Exelon Corporation is turning its capital-investment focus to transmission and distribution (T&D) projects, as the utility expects its transmission rate base will grow 16% over the next four years. The company anticipates increased demand from data centers, but it also is reducing its utility-focused spending to address growing affordability concerns from residential customers.

According to Industrial Info Resources data, more than $1.1 billion projects across the U.S. are attributed to Exelon, more than half of which is attributed to projects with a 70% or higher likelihood of beginning construction as scheduled.

"The need for additional transmission infrastructure is real, and we are witnessing this growth firsthand, driven by reliability requirements and large load interconnections," said Jeanne Jones, the chief financial officer of Exelon, in a quarterly earnings-related conference call.

Executives noted that residential supply costs in the U.S. Mid-Atlantic region "have increased by up to 80% or more over the past five years," which they attributed in part to supply constraints. Not coincidentally, Exelon is preparing to rebuild a line from Salisbury, Maryland, to New Church, Virginia, running 22 miles across the Delmarva Peninsula and managed by subsidiary Delmarva Power & Light Company. Several data centers are proposed for this area.

For more information on the transmission rebuild, which is set to begin this summer, readers can consult a detailed project report from the Industrial Info Resources Global Market Intelligence (GMI) Power Project Database.

Exelon also is proposing a series of substation upgrades and expansions across Maryland that, if approved, would not begin construction until 2027 at the earliest. Readers can learn more--including capacities, investment values and necessary equipment--from a list of detailed project reports.

Executives said they expect Exelon to invest $41.7 billion in capital projects over the next four years. This includes "$1.5 billion of incremental transmission investment to support project realignment and the interconnection of data center customers that have signed Transmission Security Agreements," Jones said.

Transmission Security Agreements, which are filed with the Federal Energy Regulatory Commission (FERC), require large new power users--like data centers--to guarantee payment for infrastructure upgrades.

Calvin Butler, the chief executive officer of Exelon, said the company's data center pipeline "is increasingly backed by FERC-approved Transmission Security Agreements, which have now secured approximately $1 billion of collateral."

By the Numbers

• More than $1.1 billion: Total investment value of projects from Exelon tracked by Industrial Info Resources
• $41.7 billion: How much Exelon expects to invest in capital projects over the next four years
• $6.9 billion: Total investment value of renewable-energy projects in northern Illinois tracked by Industrial Info Resources

Sprucing Up the Grid

Calvin noted Exelon "is going after competitive transmission bids--two to date. We are also looking at partnerships to build generation and contract for generation."

Both bids cited by Calvin are in Illinois and are part of the Midcontinent Independent System Operator's (MISO) Tranche 2.1 window, which was approved by the MISO Board of Directors in 2024 to address transmission needs within the northcentral U.S. and parts of Manitoba. Exelon has partnered with Invenergy LLC on these bids.

Exelon's active efforts to improve T&D capacity and reliability in the MISO region include an expansion of the Elk Grove Substation near Chicago. The project, which kicked off in June 2025, is part of a broader effort to allow the local grid to handle up to 2.1 gigawatts (GW) of new load, largely from the growing data center market. Commonwealth Edison Company (ComEd), a subsidiary, is developing the projects. Readers can learn more details from a plant profile and project report. About 60 miles north, Exelon is proposing a transformer addition at its Wilton Center Substation in Wilmington, which is designed to service the largest concentration of renewable-energy projects in Illinois. Readers can learn more from a plant profile and project report; Industrial Info Resources is tracking $6.9 billion worth of active and proposed renewable-energy projects in the northern Illinois area that includes Wilton Center and Chicago; readers can learn more from a full list of project reports.

Industrial Info Resources also offers a full list of reports for Exelon's active and proposed projects.

Key Takeaways

• Exelon is shifting its capital-spending priorities toward T&D projects, to address data centers and customer affordability.
• Exelon is proposing a series of substation upgrades and expansions across the U.S. Mid-Atlantic region
• Exelon is pursuing competitive transmission bids and seeking partnerships to develop new generation projects.

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About Industrial Info Resources
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 verified plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 trillion (USD).