01—Abstract
Summary
Summary of the 10-K filed February 25, 2022. Cited figures are marked; the original filing is the authoritative source.
Exelon Corporation's 2021 10-K filing details a significant corporate restructuring with the successful separation of its utility and generation businesses into two distinct publicly traded entities, completed on February 1, 2022.
The company's utility operations, comprising ComEd, PECO, BGE, Pepco, DPL, and ACE, continue to provide energy delivery services across various states, focusing on infrastructure improvements and modernization with significant planned investments. The financial performance in 2021 showed a decrease in net income attributable to common shareholders compared to 2020, primarily due to impacts from the February 2021 extreme cold weather event in Texas, accelerated depreciation related to prior plant retirement decisions (later reversed), and various impairments.
Despite these factors, the utility segments demonstrated resilience, with several reporting higher net income driven by rate base growth, favorable regulatory outcomes, and increased allowed returns. Exelon highlights its ongoing commitment to operational excellence, customer experience enhancement, and advancing clean energy choices.
02—Key points
Key Highlights
- Completion of the separation of the utility and generation businesses into two independent public companies on February 1, 2022.
- Net income attributable to common shareholders decreased by $257 million in 2021 compared to 2020, largely due to impacts from the February 2021 extreme cold weather event and other charges.
- Utility operations generally performed well, with positive contributions from rate base growth, improved allowed returns, and favorable regulatory adjustments.
- Significant capital expenditure plans are in place, with approximately $29 billion anticipated over the next four years for infrastructure improvements and modernization.
- The company announced a 'path to clean' goal to reduce operations-driven emissions by 50% by 2030 from a 2015 baseline, with an anticipated investment of $4.8 billion towards this goal over the next decade.
- Exelon's common stock performance over the five years ending December 31, 2021, showed an investment value increase from $100 to $192.94, outperforming the S&P 500 and S&P Utility Index in terms of cumulative total returns.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2021filed February 25, 2022Financial Statements
FY2021 against FY2020
| Line item | FY2021FY2020 | Change |
|---|---|---|
| Revenue | $17.94B$16.66B | +7.7% |
| Operating Expenses | $15.26B$14.48B | +5.3% |
| Operating Income | $2.68B$2.19B | +22.4% |
| Net Income | $1.71B$1.95B | −12.7% |
| EPS (Basic) | $1.74$2.01 | −13.4% |
| EPS (Diluted) | $1.74$2.01 | −13.4% |
| Shares Outstanding (Basic) | 979.00M976.00M | +0.3% |
| Shares Outstanding (Diluted) | 980.00M977.00M | +0.3% |
05—Questions
Frequently Asked Questions
What was the most significant corporate change for Exelon in 2021/early 2022?
The most significant corporate change was the separation of Exelon's utility business from its generation business, creating two independent, publicly traded companies. This separation was approved by the board in February 2021 and completed on February 1, 2022, with the generation business becoming Constellation Energy Corporation.
How did Exelon's financial performance compare between 2021 and 2020?
Exelon's net income attributable to common shareholders decreased by $257 million in 2021 compared to 2020. This decrease was primarily driven by the impacts of the extreme cold weather event in Texas, accelerated depreciation charges, asset impairments at the Generation segment, and other factors. However, the utility segments collectively showed positive results, partly offsetting these impacts.
What are Exelon's plans for capital expenditures and environmental initiatives?
Exelon plans to invest approximately $29 billion over the next four years in its utility infrastructure for improvements and modernization. Additionally, the company has set a 'path to clean' goal to reduce its operations-driven emissions by 50% by 2030 against a 2015 baseline and aims to reach net zero operations-driven emissions by 2050, with a planned investment of approximately $4.8 billion over the next ten years for this initiative.
06—Continue