What is the impact of the ICC's decision on ComEd's revenue and future investments?

The ICC's decision significantly reduces ComEd's expected revenue increases compared to what was requested, with estimated year-over-year increases of approximately $450 million in 2024, $14 million in 2025, $6 million in 2026, and $31 million in 2027. The rejection of the Grid Plan and subsequent required resubmission, along with the inability to approve projected rate base investments as proposed, means ComEd's future investment plans and rate base will need to be re-evaluated and adjusted.

Will ComEd accept the ICC's decision, or are there further actions planned?

ComEd intends to seek a rehearing on several key issues within the ICC's order, including the approved Return on Equity (ROE), capital structure, and the denial of a return on its pension asset. This indicates potential for further regulatory proceedings and the possibility of changes to the current order based on those reviews.

How does the approved BGE Multi-Year Plan compare to BGE's initial request?

The MDPSC approved lower revenue increases for BGE than initially requested. For electric service, the approved increases are $41 million, $113 million, and $25 million for 2024-2026, versus requests of $85 million, $103 million, and $125 million. For natural gas, the approved increases are $126 million, $62 million, and $41 million for 2024-2026, compared to requests of $158 million, $77 million, and $54 million. Additionally, the approved ROEs are lower than requested.

Despite the regulatory outcomes, why is Exelon reaffirming its 2023 EPS guidance?

Exelon is reaffirming its 2023 adjusted earnings per share guidance range of $2.32-$2.40. While the regulatory decisions for ComEd and BGE will impact future financial performance and guidance beyond 2023, the reaffirmation suggests that current year performance is tracking within expectations, and the company is working to assess and incorporate the impacts of these rulings into its future financial outlook.

EXC 8-K SEC Disclosure — Dec 18, 2023

Summary

This 8-K filing provides updates on regulatory decisions impacting Exelon's subsidiaries, Commonwealth Edison (ComEd) and Baltimore Gas and Electric (BGE), regarding their multi-year rate plans. For ComEd, the Illinois Commerce Commission (ICC) issued a modified order approving lower revenue increases than initially requested and rejected ComEd's Grid Plan, requiring a resubmission. The approved rate increases are significantly reduced, and ComEd plans to seek rehearing on several key issues, including the Return on Equity (ROE) and capital structure. For BGE, the Maryland Public Service Commission (MDPSC) approved revenue increases for both electric and gas services that are lower than requested but represent a notable increase for customers. Both subsidiaries received lower ROEs than proposed. Despite these regulatory outcomes, Exelon reaffirms its 2023 adjusted earnings per share guidance.

Key Highlights

1ICC issued a modified Multi-Year Rate Plan (MRP) for ComEd, approving lower revenue increases than requested ($450M, $14M, $6M, $31M for 2024-2027) compared to ComEd's initial request ($968M, $181M, $163M, $175M).
2ICC rejected ComEd's Multi-Year Grid Plan and requires a revised filing by March 13, 2024, with a subsequent review process.
3ComEd's approved ROE of 8.905% and equity ratio of 50% are lower than its requested 10.50-10.65% ROE and 50.58-51.19% equity.
4MDPSC approved BGE's electric revenue increases of $41M, $113M, $25M for 2024-2026 and gas increases of $126M, $62M, $41M for 2024-2026, which are lower than BGE's initial requests.
5BGE's approved ROE is 9.5% for electric and 9.45% for gas, below its requested 10.40%.
6Exelon reaffirms its 2023 adjusted operating earnings guidance range of $2.32-$2.40 per share.
7ComEd plans to seek rehearing on key aspects of the ICC's order, including ROE, capital structure, and denial of return on its pension asset.

EXELON CORP 8-K Report, Corporate Update (Dec 18, 2023)

Summary

Key Highlights

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