Q1 2022 Exelon Corp Earnings Call
Hello, and welcome to Exelon first quarter earnings Conference call My name is Olivia.
Events specialist today.
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It is now my pleasure to turn today's program over to Jean Jones, Senior Vice President of corporate Finance.
Josh.
Thank you Olivia good morning, everyone and thank you for joining our first quarter 2022 earnings conference call, leading the call today are Chris Crane, <unk>, President and Chief Executive Officer, and Joe Nigro, Exxon's, Chief Financial Officer.
We're joined by other members of the backbone senior management team, who will be available to answer your questions. Following our prepared remarks, we issued our earnings release. This morning, along with the presentation all of which can be found in the Investor Relations section of our website.
The earnings release, and other matters, which we discuss during today's call contain forward looking statements and estimates that are subject to various risks and uncertainties actual results could differ from our forward looking statements based on factors and assumptions discussed in today's material and comments made during this call. Please refer to today's 8-K and excellence other etsy.
It'd be filings for discussions of risk factors and other factors that may cause results to differ from management's projections forecasts and expectations.
Today's presentation also includes references to adjusted operating earnings and other non-GAAP measures. Please refer to the information contained in the appendix of our presentation and our earnings release for reconciliations between the non-GAAP measures and the nearest equivalent GAAP measures.
We've scheduled 45 minutes for today's call I'll now turn the call over to Chris Crane <unk> CEO .
Yeah.
Thanks, Jim.
Good morning to everybody and thanks.
Thanks for joining us we're pleased to host their first.
Post separation earnings call is the nation's premier T&D utility company.
As you all know on the separation on February 1st delivering on our commitment to close within the first quarter 2022.
The transition is really unlocked significant value for our shareholders.
Timely bouncing a year ago through mid April of this year. The total shareholder return was 76%.
We're exceeding the U T Y index in the U S P.
At the same time, we continued to demonstrate high reliability focused on operational and financial excellence. We earned <unk> 49 per share on a GAAP basis, and 64 cents a share.
non-GAAP basis.
We also completed.
Successful bond deal.
Our holding company with attractive pricing showing the value of our strong balance sheet, even in a challenging market.
Joe will cover the financial highlights.
Presentation shortly.
On the regulatory frame.
It is quiet.
Year.
But we've made.
Progress in several jurisdictions to support our investment plans on behalf of our customers.
This.
Includes a settlement and Delmarva, Maryland in the electric case.
Gas filing for Delmarva, Delaware and Pico.
And our last distribution filing under the Columba distribution formula rate.
In addition comp continues to work with the stakeholders on those.
C J a last year as well.
Landmark clean energy legislation continues to support our customers and their stakeholders want it's a clear path for Illinois.
Electric utilities to transition into a rate setting process.
While we.
Ensuring that they can support its ambitious climate goals and its social equity goals, we feel comfortable with.
<unk> going forward.
It is proposed performance metrics plan.
For the ICC, which includes performance metrics 13 tracking metrics.
As we adjust our proposal for stakeholder feedback we're optimistic that the metrics are approved by the commission will support continued improved.
R Chop and improvement in our top.
To your service your customers.
We expect a final order by the end of the third quarter.
There's a lot of work to be done between here and there.
<unk> is also participating in the stakeholder process and a multiyear integrated grid planning workshop.
Plan will help con meds longterm investment planning process and priorities with the exception of the.
Regulatory is.
Regulators and see E G E.
So in preparation for our filing in early 2023.
For rates effective in 2020 for Joe cover that case in a little bit more detail.
Beyond the financial.
Performance.
And operational performance, we continue to focus on our communities and the truth.
Transition to a cleaner grid.
We joined the D O.
Better climate challenge in February reinforcing our path to clean commitment to reduce our scope, one and scope two greenhouse gases by 50% by 2023.
2030.
As part of the.
H B C U corporate scholars program announced last fall. We have 24 students were awarded $2.4 million in scholarships. This program will support the next generation to lead our clean energy future.
It's astounding to sit with these young.
Students see their passion on where they want to go in the future.
We are funding support for small business development and underserved communities in our service territory for more than 65, workhorse type programs, where we train and make individuals'.
Individuals' capable coming into our.
Areas.
For work.
And our fifth annual stem Academy will be held this summer in Philadelphia, Chicago D C.
Baltimore area with approximately.
The Golar Power's 60 women young women to be involved.
Moving to our operations on slide five mm, we're delivering safe reliable service across the jurisdictions.
<unk> remains solid and outage durations and frequency remain our top priority.
Already our utilities are working together to improve.
Specific areas.
As you saw this weekend.
The mid Atlantic utilities, the storms continue to intensify in.
And the duration continues to Hum.
Be linked and but.
Our operations teams.
We're really focused on that and continuing to drive standards of construction reliability up.
Major reliability performance was top decile and both cadence safety.
Delivering on our highest first quarter related reliability to customers for any year on record.
We've made improvements in Osha performance, bringing people up to top quartile, but we really are not satisfied with anything but the safest experience for our employees and our communities and we still have work to go on that.
There is no.
Shutting that away.
Top priority of all our operations sports <unk>, Comed and Peco, all achieved top quartile customer satisfaction for the quarter.
In all three of our utilities that.
Distribute gas where and top decile on older response.
P H I.
Perfect execution responding to all of its gas odors.
And less than one hour.
And.
Uh huh.
Very large service territory acreage wise, so being able to roll the trucks and the employees. So it is a good feet.
David Chi Chow will highlight some of our investments, we're making and to help deliver this performance and with that a lot.
Turn it over to Joe and.
For you to hear the financial update and some of the strategic actions.
Actions were taken.
Thank you, Chris and good morning, everyone.
Today I'll cover our first quarter results as Chris mentioned, our quarterly financial update.
As he noted highlight several areas in which our utilities are making investments for the benefit of our customers.
If I start on slide six.
We show our quarter over quarter adjusted operating earnings.
Exelon continuing operations earned 64 cents in Q1 of 2022.
Versus 55 in Q1 in 'twenty one.
Let me start by reminding you of the impacts to Exelon financials following the separation.
As disclosed in our 8-K issued on February 25th.
Beginning with the 10-Q to be filed today for the first quarter of 2022.
We are presenting our former generation segment as discontinued operations for.
For the one month period in 2022.
Prior to the separation and for the three months ended March 31 2021.
Financial results for the utilities and the holding company are reported as continuing operations.
As a reminder, accounting rules required that certain corporate overhead costs previously allocated to generation feed.
Presented as part of the Exelon as continuing operations.
I wanted to note that these costs were paid for by generation.
And they are not indicative of our corporate overhead post separation.
The impact of this digital services company allocation adjustment.
Excellent continuing operations nine cents for the first quarter of 'twenty, one and two cents for the one month in 2022.
On an after tax basis.
You will continue to see this adjustment for 'twenty, one as we present prior year quarters. However, this adjustment only impacts Q1 for 2022.
Excluding the 7% quarter over quarter impact of the discontinued operations accounting adjustment for BSC allocations.
Excellent first quarter results for <unk> <unk> higher than the first quarter of 2012.
The improvement from 'twenty, one was primarily driven by higher transmission and distribution rates.
Associated with completed rate cases, partially offset by depreciation and amortization and storms at the utilities and the impact of rising interest rates on debt at the holding company.
Our operating earning results of 64 cents for the first quarter were in line with the percentage of full year earnings we shared with you in the January 2022 analyst day presentation.
Turning to our full year outlook.
We reaffirm our 2022 earnings guidance range of $2 18 to $2 32 per share.
While we have benefited from rising treasury rates on comments distribution return on equity.
Like most companies. We are also impacted by higher interest expense and our debt in particular is at our holding company.
As we normally do we will update guidance on our Q3 call.
As a reminder, we are committed to our long term operating earnings growth target of 6% to 8% through 2025 off the midpoint of guidance for 'twenty one communicated.
Okay.
Moving to slide seven.
Looking at our utility returns on a consolidated basis.
We expect to be in our consolidated 90, 10% targeted range by year end.
As of the first quarter, our trailing 12 month return on equity of eight 9%.
Dipped slightly below our range.
Despite higher earnings driven primarily by distribution and transmission rates.
Earnings were outpaced by timing of equity infusions.
Ross all our utility.
To support capital investments.
We remained focus on delivering strong returns with utilities, which sustain the investment we make on behalf of our customers.
Turning to slide eight.
There were some important developments on the regulatory front since the beginning of the year.
First on January 14.
Delmarva power filed an application with the Delaware Public Service Commission seeking a $14 $5 million increase in gas distribution base rate.
Reflecting an ROE of 10, 3%.
Delmarva power customers continue to benefit from the major enhancements that are being made to the local natural gas system.
Key projects to strengthen and create additional capacity in the company's natural gas delivery system have also been critical to meet growing lift.
As permitted by Delaware law.
Marc powers will implement full allowance rates on August 14th subject to refund.
Second Delmarva, Maryland received a final water for its distribution electric base rate case on March 2nd.
Maryland Commission approved the proposed settlement order by the Chief public utility law Judge that recommended $12 5 million dollar increase in <unk>.
Electric distribution range, reflecting an ROE of nine 6%.
Third on March 31st Pico filed a gas distribution rate case, with the Pennsylvania pain, Pennsylvania Public utility Commission.
<unk> is seeking a revenue increase of $82 million to support significant investments in critical infrastructure.
Which will modernize and enhance the natural gas system.
Allow us to continue delivering safe and reliable natural gas service and reduce methane emissions.
In addition, the filing proposes enhanced energy efficiency and customer safety programs.
Increased customer assistance with the additional low income funding.
And the continuation of our small business Grant program.
We expect an order in the fourth quarter of 2022.
Finally comex.
This annual distribution formula rate update.
With the Illinois Commerce Commission on April 15th seeking.
Seeking a $199 million increase to electric distribution base rate that results in a $2 20 to increase in the average monthly residential bill starting January 2023.
Well I'll comment just requesting a delivery charge increase there will be offsets.
Specifically when taking into account higher energy prices based on the recent.
Procurement auction empowers offset by lower capacity prices.
Carbon mitigation credits and accelerated tax benefits. We currently estimate a net reduction to the average monthly residential bill.
Comments residential customer rates next January .
I expect it to be at least 10% below the average of rates and the 10 largest U S metropolitan areas.
And its formula and its final formula rate filing comments request supports investments needed.
We sustained a record level of reliability performance for residential and commercial customers.
And helps advance the goals of the climate and equitable jobs Act passed in Illinois to address climate change and create clean energy jobs ensure accurately and prioritize a just transition to a green economy.
We expect to receive an order by early December .
We continue to have constructive regulatory relationships across our jurisdictions and are working with our regulators our states and our communities to support their clean energy and climate goals.
As a reminder, we expect nearly 100% of our rate base growth will be covered by alternative recovery mechanisms by the end of our planning period.
More details on these rate cases can be found on slide 17 through 20 of the appendix.
Slide nine provides an update on how exelon utilities are working with key stakeholders.
To help our customers and jurisdictions that you achieved their decarbonization goals reliably and affordably and equity.
Electric vehicle adoption is unquestionably a key enabler for reducing emissions.
As the transportation sector currently represents about a third of total U S greenhouse gas emissions.
Our jurisdictions alone are targeting $4 2 million electric vehicles on the road over the next 25 years.
Twentyfold increase relative to the number of <unk> in our service territories as of the end of 2021.
Given our competitive rate electric.
Electric vehicles also provide our customers the ability to save money.
Using the department of energy <unk> gallon calculation.
The annual cost of any electric vehicle is approximately $1 30 per gallon.
Compared to the price of gasoline at 430 per gallon.
Current average customers an excellent service territories could save more than $1000 per year in fuel cost by switching to an EV.
Utilizing exelon to EV time of use rates could offer an additional 11% savings per year.
And while we recognize there are adoption costs there are barriers to entry.
We value the role we play in bridging social equity gas.
Working with our jurisdictions, we bridge those gaps through programs like those authorized in the climate solutions now acting narrow.
Which allows utilities to partner with local school boards and offer up to $50 million in rebates to incentivize the purchased in operation.
Tectrix School buses.
And the benefits are not inclusive E V box as more energy use applications leverage degree.
Fixed costs will naturally be lower for customers, who have not yet made the switch to electric vehicles.
As our stage make this transition over the coming decades.
Exelon is poised to support our customers through investments such as upgrading distribution circuitry substation and ultimately transmission.
Transforming the grid over this period to meet the increased standards required by avs.
Along with other expanded in innovation innovative uses of the grid.
It requires significant investment.
Our path to clean and encourage your customers and communities to reduce their emissions through access to clean energy solutions.
When establishing our goals.
Focus was not totally on the environment.
Also on the equity affordability reliability and sustaining our communities.
The role we are playing in the transformation of the transportation sector.
A great example of this commitment.
Moving to slide 10.
During the first quarter, we continued to invest capital for the benefit of our customers and are on track to meet our $6 $9 billion commitment for 2022.
These investments will improve reliability and resiliency enhanced service for our customers and prepare the grid for a clean energy future.
As we have done on past earnings calls I'd like to feature two projects within our portfolio.
Yes.
The first is pectose Harvard steps substation rebuild.
This substation is part of a larger capital grid project.
And it is currently under construction with expected completion in 2023.
This $220 million project.
Renovate aging infrastructure originally installed over a century ago.
To improve grid reliability and resiliency.
The rebuild also expands regional transmission capacity.
Porting future load growth in Washington D C.
The second project is <unk> 30, 39 million dollar project Goalframe.
It completed its last fall three months ahead of schedule.
To meet the customers' accelerating project timeline.
To service new load obligations at the data center and the surrounding area comment installed a new 138 kv substation and associated equipment, including an indoor control building.
15, 138 kv circuit breakers for capacitor banks and transmission line extensions to the Palmera Danielle, Illinois.
It was the first large scale project, resulting from the passage of Illinois datacenter tax incentive program in 2019.
It also likely create additional renewable energy projects in the state as a 100% of customer usage will be offset by wind and solar contracts.
Both contracts are both projects are great. Examples of how we are connecting our customers and communities to affordable clean and resilient solutions, while enabling economic growth and local job creation.
Three of these modernization investments.
These projects in their own right have significant economic and social benefits to our customers and communities served.
However, combined they represent less than 1% of Exelon is projected capital spend for it.
2022 to 25.
This puts into perspective, the scale and the impact of our investments.
Moving on to slide 11, as you've heard us say at analyst day, our consolidated corporate credit metrics are anticipated to average 13 to.
14%.
At S&P and Moody's over the 2022 to 24 time period.
And overall, maintaining a strong balance sheet.
To firmly supporting breast investment grade credit ratings remains core to our strategy and who we are from a financing perspective.
We successfully completed a $2 billion corporate debt offering in the first quarter, which completes our long term debt financing needs at corporate for the year.
This inaugural offering as a new company garnered significant interest from investors.
Enabling a very strong execution that was it.
A true testament to the strength of our balance sheet and our new platform.
And finally, there has been no guidance no change in our guidance to issue $1 billion of equity at the holding company by 2025.
Thank you and I'll now turn the call back to Chris for his closing remarks.
Thanks Jill.
Turning to slide 12, I'll close by reminding you all of our excellence value proposition is.
The Premier T only company in the nation.
We're offering.
A great deal of value and scale size and scale, which is particularly beneficial given the challenges posed in today's <unk>.
Economic environment and.
The storm intensity as I mentioned earlier over the weekend.
We continue to be able to move resources.
Would you be able to procure procure required.
Needs.
And it was the right environment.
Our best in class operations, so that led us to a world class customer experience and constructive regulatory environments, which is key if your customers are not satisfied the regulators unsatisfied.
The major focus of us.
Our commitment to ESG principles.
Driving to a cleaner energy economy.
Social equity as Joe mentioned.
And our strong balance sheet will ensure our ability to invest on behalf of our all of our stakeholders.
Not only the customers, but those that.
Want to see a stronger cleaner environment.
All of these factors support our opportunity to invest $29 billion of capital over the next four years in response to our customer needs.
Which will lead to an annualized 6% operating earnings growth through 2025.
We've targeted a payout of 60% of those operating earnings each year.
Back to the shareholders.
Alright, Thank you very much for joining us now opening up for questions.
You may have.
Ladies and gentlemen, you may like to ask a question simply press Star then the number one on your telephone keypad.
To withdraw your question press the pound key.
We compile the Q&A roster.
And our first question coming from the line of Paul's upon.
Let's see some barden from Bank of America. Your line is open.
Hi, good morning, Thank you.
Can I kick it off if you could give a little bit more quantification of that net impact between the higher interest rate environment on the formula ROE in Illinois, offset by the corporate cost and it seems like a net positive mixing those two together so just want to check if there's any other factors to be cognizant of is.
Well.
Joe you want to take that Yeah, we'll Chris good morning, Paul and thanks for the question when you look at.
The sensitivities we've shown you in the table, a 50 basis point move.
In Treasury rates is worth about four things to come it which is what we saw.
At the end of the first quarter and that was about.
About a penny of that was realized the way the formula prices over the course of the year. So we've subsequently seen.
Those rates move higher here in the second quarter.
The flip side to that is when you look at our corporate debt.
We show you a sensitivity to a 50 basis point movies about a penny impact.
So that that move is about it.
Roughly 100 basis points or so in the 30 year over year to date is down about two cents.
And and those are the two big drivers of each of those variables.
Okay great.
Helpful. Thank you the same positive.
The other I know you said no changes to the equity issuance expectations, just if you could.
Discuss the approach to the timing and methodology, maybe a block or a T. M. Just given the appreciation of not just exelon utility sector broadly. Thanks.
Yeah I think.
We said, we're expecting to issue up to $1 billion of equity by 2025, we haven't said yes.
Yeah, Shirley when we're going to issue that in the <unk>.
Timing will be dependent on market conditions as well as the need for the cash itself obviously.
There's a lot of things changing in the macro environment. When you look at interest rates and obviously with the equity markets doing and we'll work with our banking partners to make a determination at the time, we need the equity or the cash as to what type of product will you spend at this point we haven't.
I made that final determination.
Yeah, and I think the key Joe.
Yeah on that is watching the solid balance sheet metrics and.
Ensuring that we are.
We continue to focus on that.
Yes, that's right, Chris I mean, you're.
<unk> said in our scripts right, we're investing $29 billion here over the next four years and what we said at analyst days.
$1 billion of that'll become off of internally generated cash flows of the utilities $14 billion that we raised across the enterprise and then about the need for the $1 billion. We just haven't made a determination as to when we need it.
Okay I appreciate that thank you both.
And our next question coming from the line of Steve Fleishman from Wolfe Research. Your line is open.
Yeah, Hi, good morning, everybody. So just want to clarify the some of the adjustments.
Not looking backward, but maybe looking more forward.
64 cents in the quarter.
Includes <unk>.
Related to that last month of.
Of constellation So if we look.
If we look to 'twenty three.
Future.
With 66 cents essentially would be the right base.
To kind of forecast from other drivers in the future.
Yes, Steve Thanks for the question and good morning, you're right away I mean, if you're talking about the performance of the business in the first quarter.
And removing the impact of discontinued operations. It was 66 sets when you compare that to Q1 for 'twenty one the equivalent number would be 64 cents.
Youre also right.
The impact in Q1, because we have to recast the whole quarter.
<unk> nine <unk>, but because we closed.
The.
<unk> February 1st it's only a one month impact in 'twenty, two we would expect that to.
To effectively dragging into the comparisons that you see in 'twenty three next year because of.
The month of January of this year.
Okay, Great and then just the.
The ROE improvement that you're expecting.
Over the course of the year or is that just them.
Kind of a normal rate relief flowing through them.
And things like that there is no other comment.
Key new drivers required to get the earned returns up.
Okay.
It's.
It's a little lumpy.
But as the rate cases go through we expect the improvement to go within our range of 9% to 10%.
Hmm.
And we just have to execute on the plan so.
$8 nine right now.
She come up Joe.
Within a few quarters.
Be within a range of <unk>.
Xyrem.
That's correct Chris.
It will be in that 9% to 10% range by year end Steve.
Infuse equity into the utilities in the first quarter the earnings were up but they weren't up enough to offset that equity infusion and it just takes some time to to reverse that effectively.
Great got it thank you.
And our next question coming from the line of Jeremy Tonet from Jpmorgan. Your line is open.
Hi, good morning.
Good morning.
Just wanted to go over to Illinois here real quick and I Wonder if you could update us a bit on how the Illinois ratemaking process is progressing and the transition to a new multiyear framework any color you could share there would be helpful.
Yeah.
Joe you're going to cover that.
Please repeat the question for me I'm, sorry, I didn't hear it.
Just as far as Illinois ratemaking process progressing.
The transition to its new multiyear framework any color you could share there on the progress.
Hey, good morning, Jeremy Christmas at Calvin I'll take that one.
<unk> continued as Chris outlined Comed filed its last rate case under the Formula rate. This year and they are preparing of meeting with stakeholders, including the Illinois Commerce Commission for their first filing of whether it's a traditional future test year or whether they go into a four year multi plan your plan.
As outlined by the new energy law.
The meetings with the stakeholders is critical and that his comment lays out its options and as Chris outlined they will be making that filing. The first part of January 1st quarter about 2023 with an expected a ruling from the commission by the end of the year. So that's to your direct question the transition is going smoothly.
All of the meetings are being done and Matt and the team is lining up on what is the appropriate course moving forward.
Got it that's very helpful. Thank you for that and.
You know with the with the new look a the exelon here just wondering how the corporate cost efforts currently stand since the separation are they tracking your expectations at this point and do you have any sense for upside opportunities and potential magnitude of cost savings over time by now post separation here.
Yeah, I wouldn't I wouldn't commit to upside yet.
Got to get through this transition there is a lot of work being done by the business services company to execute on plan a long plan right now.
And we feel comfortable.
We watch.
T translation.
Quite closely.
It's one that's.
You can't get away from us.
Separating the financial separating the operational separating.
Come and databases.
It's crucial to making our targets and right now we're on track and we hope to improve on it.
Wouldn't commit to.
And the significant improvement at this point.
We have to continue to work through the process of the separation.
It's astounding how much.
Work has got to be done.
It is on track.
Of course, there's a lot of people focused on it.
Looked at the financials so separating.
Looking at the operational.
Integration.
Separating outage.
Quite expensive so.
We have the right leadership.
Really.
Sure.
Continue to focus on it.
Some areas might be a little bit.
Faster than them.
We anticipated based on the push point installation and ex alone but.
Yeah too early to predict some upsides.
Got it that's helpful I'll leave it there thanks.
Thanks.
Our last question coming from the line of do I guess, Joe Pratt with Evercore ISI. Your line is open.
Hey, good morning team I have a quick clarification and then a big picture question on Evs.
Chris I think you've mentioned if I heard you correctly on the order in the third quarter on the Illinois, I believe the multiyear rate framework and I believe it.
That relates to the discussions on metrics operational metrics that are sort of adders to the ROE. We did I did I hear that correctly.
I Wouldnt say, its a third quarter Kelvin.
So at the end of 'twenty to 'twenty, three that would be formalized but.
We did put in our input or the metrics operational metrics to ensure that customer satisfaction.
But your timeline Calvin.
Chris Youre right, we did put something in our metrics and we would expect to get.
Good response back on that and the timeline that was mentioned, but not the full rate cases, right. So the pro forma.
Formats metrics as we've outlined issued as you heard Chris the April farmers metrics that they're looking for and where current it's outlined by the <unk>.
Statute by the law and Gill and his team are working to drive what those are and given the agreement and alignment to how we move forward, but yes, we think within that we know within the filing those will all be locked down in our filing will take place in the first quarter of 2023.
Got it but just to be clear the sort of the stance or the the the commission order as to what those metrics might look like and you know what those like both qualitatively and quantitatively that comes in in in later in 2023.
At 930 this year right.
30 of this year, we will have outlined therefore, allowing the team to prepare for the rate case filings in the first quarter of 2023, we will know exactly what they are and how they will impact the business positively or negatively if those metrics aren't met.
Perfect. Thank you guys I appreciate you clarifying that's into the third quarter, we know what those metrics are and that will dictate your filing in the first quarter of 2023.
Correct correct. Okay. Thanks, and then just a quick follow up on easy. Thank you guys for sharing sort of the illustrative.
Mhm target costs, where some gas drilling cost tremendously helpful. Maybe just very high level and I. Appreciate this is a long dated opportunity is there a way to kind of think about the capex opportunity associated with this increased loan demand and I. Appreciate it's over a sort of about 2030 year period.
Yes, one of our jurisdictions have a different focus.
And we're trying to work through those but we do see you know what.
Calvin speak to it we do see.
Central upside.
In.
The demand.
To support.
The E B's and for US it's the infrastructure costs that we have to put in.
Changing voltage levels up from 41 16 to 13 eight.
To ensure that you've got not only the distributed generation, but you can service the EV demand.
And working in the different jurisdictions.
How that is framed as.
This is important.
Calvin in North Carolina.
I'll just I'll provide you some specific numbers what do you think because Chris is exactly right that each of our jurisdictions has approached this some more aggressive than others just taken it taking a staggered approach, let's put it in terms of this right now across our territories. We have approximately 215000 evs on the road.
Out of the roughly 17 million vehicle registration so cheered the undercurrent statutes of laws that have been passed so let me just tell you about the degrees of pace in Maryland.
They have said they want 300000 Evs on the road by 2025, New Jersey, 330 by 2025, and 2 million by 2035.
This law requires our says 1 million by 2030, and then at Delaware, 20% of the state registered vehicles by 2025 D C, 25% by 2030 and 100% by 2045.
Pennsylvania is looking to replace 25% of its vehicles into transition to Evs that just goes to show you the opportunity and when you look at the infrastructure that is going to be required to meet that and all of our capital plan, we see the opportunity across the Exelon utilities, so to Chris's point.
All different but significant opportunity for us to be partners in building out that infrastructure and preparing the grid.
Got it. Thank you guys for taking time to answer my question. It sounds like a significant infrastructure opportunity for you guys. As it is for the utilities and some of the states here moving faster than others and your territory. Thank you again.
Yeah and for the customers also it's you know that's that's our major focus is.
So continuing to look forward to service the customer needs.
Thank you for joining the call today, we're looking forward to our continuing consistent performance we've delivered across our utilities.
With that gene unless there's anything else so close the call.
Thanks, Chris.
Thanks, everybody.
Ladies and gentlemen.
Thanks to all our participants for joining US today. This concludes our presentation. You may now disconnect have a good day.
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