Q2 2024 Exelon Corp Earnings Call

Gigi: Hello, and welcome to Exelon's second quarter earnings call. My name is Gigi, and I'll be your event specialist today. All lines have been placed on mute to prevent any background noise.

Gigi: Hello and welcome to Exelon's second quarter earnings call. My name is Gigi and I'll be your event specialist today.

Gigi: Please note that today's webcast is being recorded. After the presentation, we'll have a question and answer session. You can ask questions by pressing star 1 1 on your telephone keypad. If you would like to view the presentation in a full screen view, click the full screen button by hovering your computer mouse cursor over the PowerPoint screen. Press the Escape key on your keyboard to return to your original view. And finally, should you need technical assistance, as a best practice, we suggest you first refresh your browser. If that does not resolve the issue, please click on the Help option in the upper right-hand corner of your screen for online troubleshooting.

Speaker Change: All lines have been placed on mute to prevent any background noise. Please note that today's webcast is being recorded.

Speaker Change: During the presentation, we'll have a question and answer session. You can ask questions by pressing star 1 1 on your telephone keypad.

Speaker Change: If you would like to view the presentation in a full screen view, click the full screen button by hovering your computer mouse cursor over the PowerPoint screen. Press the escape key on your keyboard to return to your original view.

And finally, should you need technical assistance, as a best practice we suggest you first refresh your browser. If that does not resolve the issue, please click on the help option in the upper right hand corner of your screen for online troubleshooting.

Andrew Plenge: It is now my pleasure to turn today's program over to Andrew Plenge, Vice President of Investor Relations. The floor is yours. Thank you, Gigi. Good morning, everyone. We're pleased to have you with us for our 2024 second quarter earnings call. Leading the call today are Calvin Butler, Exelon's President and Chief Executive Officer, and Jeanne Jones, Exelon's Chief Financial Officer. Other members of Exelon's senior management team are also with us today, and they will be available to answer your questions following our prepared remarks.

Andrew Plenge: It is now my pleasure to turn today's program over to Andrew Plenge, Vice President of Investor Relations. The floor is yours.

Andrew Plenge: Thank you, Gigi. Good morning, everyone. We're pleased to have you with us for our 2024 Second Quarter Earnings Call. Leading the call today are Calvin Butler, Exelon's President and Chief Executive Officer, and Jeanne Jones, Exelon's Chief Financial Officer. Other members of Exelon's Senior Management Team are also with us today, and they will be available to answer your questions following our prepared remarks.

Andrew Plenge: Today's presentation, along with our earnings release and other financial information, can be found in the investor relations section of Exelon's website. We would also like to remind you that today's presentation and the associated earnings release materials contain forward-looking statements that are subject to risks and uncertainties. You can find the cautionary statements on these risks on slide two of today's presentation or in our SEC filings. In addition, this presentation includes references to adjusted operating earnings and other non-GAAP measures.

Speaker Change: Today's presentation along with our earnings release and other financial information can be found in the investor relations section of Exelon's website. We would also like to remind you that today's presentation and the associated earnings release materials contain forward-looking statements which are subject to risks and uncertainties.

Andrew Plenge: You can find the cautionary statements on these risks on slide two of today's presentation or on our SEC filings.

Andrew Plenge: In addition, today's presentation includes references to adjusted operating earnings and other non-GAAP measures. Reconciliations between these measures and the nearest equivalent GAAP measures can be found in the appendix of our presentation and in our earnings release.

Andrew Plenge: Reconciliations between these measures and the nearest equivalent GAAP measures can be found in the appendix of our presentation and in our earnings release. It is now my pleasure to turn the call over to Calvin Butler, Exelon's President and CEO. Thank you, Andrew, and good morning, everyone.

Andrew Plenge: It is now my pleasure to turn the call over to Calvin Butler, Exelon's President and CEO .

Calvin Butler: We appreciate you joining us for the call and are pleased to be reporting solid second quarter earnings and operational performance, keeping us on track to deliver consistent and stable performance once again. We expect to deliver within our guidance range of $2,040 to $2,050 with the goal of being at the midpoint or better, and we are reaffirming all of our long-term guidance. That includes investing $34.5 billion to grow its rate base at 7.5%, resulting in annualized earnings growth of 5 to 7%.

Calvin Butler: Thank you Andrew and good morning everyone. We appreciate you joining us for the call and are pleased to be reporting a solid second quarter of earnings and operational performance, keeping us on track to deliver consistent and stable performance once again.

Andrew Plenge: We expect to deliver within our guidance range of $2,040 to $2,050, with the goal of being at the midpoint or better. And we are reaffirming all of our long-term guidance.

Andrew Plenge: That includes investing $34.5 billion to grow rate base at 7.5%, resulting in annualized earnings growth of 5-7%.

Calvin Butler: For the quarter, we delivered $0.47 per share of adjusted operating earnings, above our expectations, driven primarily by favorable weather in our non-decoupled jurisdictions along with timing of spend and comments distribution revenue. We also performed at operationally high levels, achieving top quartile or top decile reliability performance across the board. We have also continued to make progress on the regulatory front. Our revised grid plan process in Illinois is on track, and approval by the end of the year is a top priority. Since our last earnings call, we have had two rounds of testimony from staff and intervenors, and we have narrowed open issues with many intervenors and staff.

Andrew Plenge: For the quarter, we delivered $0.47 per share of adjusted operating earnings above our expectations, driven primarily by favorable weather in our non-decoupled jurisdictions, along with timing of spend and comments distribution revenues.

Calvin Butler: We will continue to work with parties to address open items in advance of the evidentiary hearing. We are encouraged that we've been able to reach agreements with key parties like the City of Chicago, the Building Owners and Management Association, and the Environmental Coalition, J-N-G-O. Each has recognized the progress made in our revised plan and its compliance with the Climate Effortable Jobs Act, a key focus of the Commission. These statements are good examples of what differentiates the process this year.

Andrew Plenge: We will continue to work with parties to address open items in advance of the evidentiary hearings.

Andrew Plenge: Each has recognized the progress made in our revised plan and its compliance with the Climate-Efficable Jobs Act, a key focus of the Commission. These affirmations are good examples of what differentiates the process this year.

Calvin Butler: Approval of the plan will ensure that Northern Illinois will receive the investment needed to maintain an affordable, resilient, reliable, and clean grid for its customers, and will support the state's success in attracting new business. In addition, the process for our PICO rate cases remains on track for orders by the end of the year.

Calvin Butler: And PEPCO-DC's rate case continues, where we await a final decision in its second multi-year plan upon completion of the briefing schedule on August 30. Finally, we received an order in PEPCO Maryland's second multi-year plan rate case filing, which adopted a one-year framework with the ability to refile for new rates while we await the outcome of a lessons-learned process in the state. Now, the shortened rate plan maintains some of the positive elements of multi-year rate making, such as a reconciliation, and the ability to update rates next spring offers an opportunity to keep rates more current with cost.

Andrew Plenge: Now, the shortened rate plan maintains some of the positive elements of multi-year rate making, such as a reconciliation and the ability to update rates next spring offers an opportunity to keep rates more current with cost.

Calvin Butler: All stakeholders, including Exelon, are interested in making sure the investments we make keep us on track to meet the goals of Maryland's Climate Solutions Now Act while appropriately balancing interests across stakeholders, all stakeholders, which includes customers, policymakers, and regulators. There are many ways to strike that balance, and rate-making constructs are a key tool to do that.

Andrew Plenge: All stakeholders, which includes customers, policy makers, and regulators.

Calvin Butler: We think multi-year plans provide a great foundation, offering unparalleled transparency, accountability, and alignment, including a reconciliation process that allows all stakeholders to understand how we performed against the approved plan. But alignment on an agreed-upon path forward that works for everyone is critical, particularly since the need to invest in the grid is only growing with increased electrification, diverse and sophisticated power supply and demand technologies, and the increased strain on our grid caused by severe weather. The growth in investment has only accelerated as the proliferation of artificial intelligence has significantly boosted data center development, as Jeanne will discuss in her remarks.

Calvin Butler: The stakes are simply too high to lack confidence that we are prioritizing the investments most important to our customers. Multi-year plans can provide that confidence and transparency to customers, and when done right, ensure alignment with all stakeholders. We are refining our regulatory strategy to follow the lead provided in the final order and, more importantly, stand ready to engage in a lessons learned process to ensure we can find common ground on any adjustments to address stakeholders' areas of focus. In the meantime, given the deviation from the approach used by the Commission since 2021, we are taking action on the current order and seeking more clarity, as Jeanne will discuss in her remarks.

Calvin Butler: Now, turning to our operational performance on slide five, you can see that our performance through the first half of the year remains strong. ComEd and PEPCO holdings are performing at top decile levels, despite ComEd experiencing four times the amount of storm activity in the second quarter versus last year. I just want to pause and say how incredibly grateful I am for the committed employees that serve on the front lines during these increasingly challenging storm seasons.

Calvin Butler: Just in the past few weeks, our combat crews headed down to the Gulf region to provide mutual assistance after Hurricane Beryl, only to come back to respond to four waves of back-to-back storms in Illinois, where there were 41 confirmed tornadoes impacting 500,000 customers.

Speaker Change: Just in the past few weeks, our combat crews headed down to the Gulf region to provide mutual assistance after Hurricane Beryl.

Calvin Butler: ComEd experienced the most severe storm in its territory in more than 15 years, and yet within two days, we had restored 80% of the impacted customers, which is a true testament to the importance of prudent grid investment and our employees' relentless dedication to our customers. We can't thank our employees and those providing mutual assistance enough for their commitment to serving all of our customers. This operational excellence is matched on the gas side as well. Now, on the safety front, I'm pleased to report that BGE, PECO, and PEPCO holdings are all now top-decile, with PECO improving from second quartile into the first quartile.

Andrew Plenge: This operational excellence is matched on the gas side as well.

Andrew Plenge: Now, on the safety front, I'm pleased to report that BGE, PECO, and PEPCO holdings are all now top-decile, with PECO improving from second quartile into the first quartile.

Jeanne Jones: Our utilities continue to leverage our new safety observation platform to take action before an incident occurs, with over 1,000 supervisors and safety professionals trained on our new tool. Common actions to improve performance include enhanced accuracy for time-to-restore communication. We look forward to the second half of the year, bringing continued operational excellence and delivering industry-leading value to our customers. As Calvin mentioned, we delivered earnings results above the guidance we provided in our prior quarter call due to favorable weather conditions, early execution of our weather and storm recovery plan, and timing of Comet's distribution revenues.

Andrew Plenge: Tefco Holdings in the second quartile and BGE in the third quartile.

Andrew Plenge: As Calvin mentioned, Exelon earned $0.47 per share in the second quarter of 2024 versus $0.41 in the second quarter of 2023, reflecting higher results of $0.06 per share over the same period.

Calvin Butler: And $0.03 of favorable weather, partially offset by $0.03 of higher interest expense due to higher levels of debt at increased interest rates.

Jeanne Jones: Operating earnings of $1.16 per share through the first quarter of 2024 reflect 47% projected full-year earnings, which is in line with how we performed through the first half of 2023. On a full year basis, we remain on track for operating earnings of $2.40 to $2.50 per share in 2024, and we reaffirm our long-term annualized operating earnings per share guidance range of 5-7% through 2027, with the expectation to be at the midpoint or better of that growth range.

Speaker Change: Operating earnings of $1.16 per share through the first quarter of 2024 reflect 47% projected full-year earnings, which is in line with how we performed through the first half of 2023.

Andrew Plenge: On a full-year basis, we remain on track for operating earnings of $2.40 to $2.50 per share in 2024, and we reaffirm our long-term annualized operating earnings per share guidance range to 5-7% through 2027 with the expectation to be at the midpoint or better of that growth range.

Jeanne Jones: Coming out of two rounds of staff and intervener testimony, we are encouraged by the support that ComEd's revised grid plan is compliant with the requirements of the Climate and Equitable Jobs Act and that it represents an appropriate balance between affordability and supporting the state's clean energy goals, with our proposal representing an average annual increase to the total residential customer bill of only 1.8% through 2027 relative to December's final order. Turning to Pennsylvania, on July 16th, PECO filed its rebuttal testimony with the Pennsylvania Public Utility Commission in support of both its electric and gas distribution rate cases ahead of the hearings in early August.

Speaker Change: Coming out of two rounds of staff and intervener testimony, we are encouraged by the support that ComEd's revised grid plan is compliant with the requirements of the Climate and Equitable Jobs Act and that it represents an appropriate balance between affordability and supporting the state's clean energy goals.

Speaker Change: ComEd filed its survival testimony with the Illinois Commerce Commission on July 31, marking the end of written testimony and another key milestone in the procedural process.

Andrew Plenge: The company and parties to the case head into evidentiary hearings in mid-August, followed by the briefing process in September , and a proposed ALJ order in mid-October. A final order is expected in December 2024 for rates that will go in effect by the start of 2025.

Speaker Change: Touring to Pennsylvania on July 16th.

Speaker Change: In 2018, PICO filed its rebuttal testimony with the Pennsylvania Public Utility Commission in support of both its electric and gas distribution rate cases ahead of the hearings in early August . The cases are following the expected schedule, with orders anticipated from the PAPUC before the end of 2024.

Jeanne Jones: The cases are following the expected schedule with orders anticipated from the PAPUC before the end of 2024. Moving on to PEPCO Holdings, on July 30, the D.C. Public Service Commission held legislative-style hearings to re-hear oral arguments from key stakeholders and PEPCO D.C. on its pending multi-year rate plan filing. Based on the latest procedural schedule, which concludes with the post-hearing brief in late August, we anticipate a final order in the fourth quarter of this year.

Speaker Change: Moving on to PEPCO Holdings, on July 30, the D.C. Public Service Commission held legislative-style hearings to re-hear oral arguments from key stakeholders and PEPCO D.C. on its pending multi-year rate plan filing.

Andrew Plenge: Having at the Commission's direction provided an extensive lessons learned from the first MYP and supplemental testimony detailing each of the benefits as well as enhancements and modifications to improve the MYP framework.

Jeanne Jones: I'll close by providing an update on the PEPCO Maryland final order we received on June 10th, which adopted a one-year plan with a total revenue increase of $44.6 million and a 9.5% ROE. As Calvin noted, we believe strongly in the merits of the multi-year plan framework, and we embrace the opportunity to discuss ours and other stakeholders' learnings after three-and-a-half years operating under that contract, where we've consistently delivered above-average reliability under below-average rates.

Speaker Change: We appreciate the ability to file for new rates effective at the end of the one-year plan and the ability to reconcile eligible costs and excess of those approved.

Speaker Change: And while we were disappointed not to receive rates over the full period requested, we remain committed to engaging with the Maryland Public Service Commission on its Lessons Learned process, which we anticipate will commence next year.

Speaker Change: As Calvin noted, we believe strongly in the merits of the Multi-Year Plan framework and we embrace the opportunity to discuss ours and other stakeholders' learnings after three and a half years operating under that construct, where we've consistently delivered above-average reliability under below-average rates.

Speaker Change: In the meantime, PEPCO is requesting that the Commission rehear and reconsider certain aspects of their decision, including some that have been proposed for removal from the plan.

Jeanne Jones: As always, we advocate for transparency, accountability, and alignment in the rate-making constructs in our jurisdictions and are prepared to work with each to ensure a just and equitable energy transformation for all. Shifting the focus to Maryland, CGE is playing a crucial role in transforming the Baltimore Peninsula into the city's newest and largest mixed-use community.

Andrew Plenge: As always, we advocate for transparency, accountability, and alignment in the rate-seeking constructs in our jurisdictions, and are prepared to work with each to ensure a just and equitable energy transformation for all.

Andrew Plenge: More details on the rate cases can be found on slides 20-30 of the appendix.

Speaker Change: On slide 8, we highlight two projects that showcase the power of our footprint and platform to attract and meet a variety of low-growth opportunities.

Speaker Change: This growth is driven by continued momentum around AI-driven data center demand, on-shoring of energy intensity industries, and overarching economic development, electrification, and decarbonization trends.

Speaker Change: is one of several drivers for why our transmission's been increased by 45% in our four-year plan as discussed in the Q4 call and shown again in slide 13 of the appendix.

Andrew Plenge: It also drove a significant update and new business in our refiled grid plan.

Andrew Plenge: Supporting this development ensures the economic vibrancy of our communities, as last year alone, ComEd was part of securing 15 new commercial projects that are set to add over 4,000 jobs and more than $8.6 billion of local investment.

Speaker Change: Shifting the focus to Maryland, BGE is playing a crucial role in transforming the Baltimore Peninsula into the city's newest and largest mixed-use community.

Speaker Change: The area, which will benefit from multiple new or rebuilt substations, will help to relieve capacity constraints and provide grid resilience to both new and existing customers, accommodating 100 megawatts of load and supporting the connection of distributed solar and EV charging stations.

Jeanne Jones: As the largest transmission and distribution utility in the country by customer count, we are an integral partner to areas like Baltimore City for revitalization and economic development, addressing aging infrastructure challenges, the need for new development and electrification, and capacity constraints from increased load. We operate in six utilities across seven jurisdictions, including FERC, are a leading operator in the sector, and provide a world-class customer experience with sales and rates below the national average.

Speaker Change: As the largest transmission and distribution utility in the country by customer count, we are an integral partner to areas like Baltimore City for revitalization and economic development, addressing aging infrastructure challenges, the need for new development and electrification, and the capacity constraints from increased load.

Andrew Plenge: As these two projects highlight, we are uniquely positioned to support our jurisdictions to meet load growth demands in an equitable manner, no matter where the load is located.

Andrew Plenge: We operate in six utilities across seven jurisdictions, including FERC, are a leading operator in the sector, and provide a world-class customer experience with sales and rates below national averages.

Jeanne Jones: Beyond our size, scale, and operational excellence, we have one Exelon platform to unify our utilities that allows us to support customers at a national level, identifying attractive locations to support incremental load in states with progressive clean energy policies. The momentum around new business in our jurisdictions continues to be very strong, a testament to the power of Exelon's platform. And while we await specific guidance on the implementation of the Corporate Alternative Minimum Tax, I'll remind you that our plan incorporates the assumption that the regulations will not allow for repairs.

Andrew Plenge: Founder, Size, Scale, and Operational Excellence.

Andrew Plenge: We have one Exelon platform to unify our utilities that allows us to support customers on a national level, identifying attractive locations to support incremental load in states with progressive clean energy policies.

Andrew Plenge: The momentum around new business in our jurisdictions continues to be very strong, a testament to the power of Exelon's platform.

Speaker Change: I will conclude with a review of our balance sheet activity on slide 9. As a reminder, we continue to project to have approximately 100 basis points of cushion on average for our consolidated corporate credit metrics above the downgrade thresholds of 12% specified by S&P and Moody's.

Jeanne Jones: If implemented in a way that mitigates the cash impact, we'd expect an increase of approximately 50 basis points to our consolidated credit metric on average over the plan, likely putting us in the higher end of our targeted 100 to 200 basis points of cushion.

Andrew Plenge: There has been no change in our guidance to issue $1.6 billion of equity from 2024 to 2027 to fund our estimated $34.5 billion capital plan in a balanced manner.

Calvin Butler: We will update you as we make progress on that. We also remain highly focused on being responsive to our customers' increasing engagement with the grid, whether it's accommodating new solar, performing efficiency audits, or supporting their transition to electric vehicles. And as always, we're focused on ensuring all customers are benefiting from the generational energy transformation that's just getting underway. In late June, many of you saw that we joined a FERC proceeding to raise concerns about the way co-located customers share some of the costs of the grid that they can rely on.

Andrew Plenge: Thank you. I'll now turn the call back to Calvin for his closing remarks. Thank you, Jeanne. I'll conclude by bringing it back to our priorities this year listed on slide 10. As always...

Calvin Butler: Safely achieving industry-leading operational excellence is our first priority. Keeping customers online, no matter the weather, is increasingly important.

Andrew Plenge: We also remain highly focused on being responsive to our customers' increasing engagement with the grid, whether it's accommodating new solar, performing efficiency audits, or supporting their transition to electric vehicles.

Andrew Plenge: As you heard from Jeanne, we have a number of proceedings we expect to conclude in the second half of the year, and we're optimistic about the clarity that will bring for the next several years of our plan.

Speaker Change: Building a reliable and modern grid requires reliable and modern rate making, and we'll continue to work with stakeholders to ensure that we are all aligned as we work to meet each state's energy goals.

Andrew Plenge: And as always, we're focused on ensuring all customers are benefiting from the generational energy transformation that's just getting underway.

Andrew Plenge: In late June , many of you saw that we joined a FERC proceeding to raise concerns about the way co-located customers share some of the costs of the grid that they can rely on.

Andrew Plenge: Exelon and AEP may have been the first to share those concerns, but many others have now echoed similar perspectives.

Calvin Butler: There's no question that co-location offers a unique opportunity for our jurisdictions to attract business in an exciting emerging industry, and we welcome supporting our customers in this work. As Jeanne shared, there is no shortage of work that the energy transformation requires of the grid, regardless of where the load shows up or what sort of generation serves it. In fact, just a week ago, Gigi, we are now ready for any questions from the audience. Thank you, Shahriar.

Speaker Change: There's no question that co-location offers a unique opportunity for our jurisdictions to attract business in an exciting emerging industry, and we welcome supporting our customers in this work.

Speaker Change: Serving more customers than any other utility in some of the largest, most critical cities in the country, we are a leader in investing in the energy transformation and supporting economic development.

Speaker Change: PSI Quantum announced a partnership with the state of Illinois, Hood County, and the city of Chicago to be the anchor tenant in the massive quantum computing development, the first of its kind in the nation, housing a utility-scale quantum computer in an operations center the size of five football fields.

Speaker Change: So we will lead an investment.

Speaker Change: But we will also lead in affordability, with rates and bills that are currently below national averages. And we're committed to continue to do so to ensure we can maintain the service our customers expect while making the necessary progress in the energy transformation.

Speaker Change: Accordingly, you can expect us to advocate for policies that continue to support investment in a grid that we all rely on and that ensure these investments can be made as affordably and equitably as possible.

Calvin Butler: And as you know, we've had this discussion in previous settings around resource adequacy, but let me assure you that PJM and a number of other stakeholders have been signaling concerns about resource adequacy for some time. Policy has continued to drive a turnover in the generation stack, as you know, with baseload replaced by renewables, and in the past year, it has brought huge advances in the power requirement with AI-driven data sets The price signals that we saw this week clearly indicate a need for infrastructure investments in our footprint, particularly in BGE, both generation and transmission.

Speaker Change: Thank you Sharon and as you know we've had this discussion in previous studies around the resource adequacy, but let me assure you that we PJM and a number of other stakeholders have been cyclically concerns signaling concerns about resource adequacy for some time policy has continued to drive a.

Andrew Plenge: Turnover in the generation stack as you can as you know would be.

Andrew Plenge: Baseload replaced by renewables and in the passengers brought huge advances in the power requirement with AI driven data centers.

Andrew Plenge: Onshore of intensive manufacturing has further contributed to the pressures, but this of course poses real challenges around providing reliable resilient and affordable power. It goes to my comments that I made is that we have to ensure that the new ratemaking.

Speaker Change: Making systems aligned with the newest constraints being put on the energy Thats being provided for all customers. The price signals that we saw this week clearly indicate a need for infrastructure investments in our footprint, particularly in BG, both generation and transmission, obviously, we're already doing that.

Calvin Butler: Obviously, we're already doing that today, including the work we're doing on Brandon Shore's retirement, meant to address exactly the types of price pressures that this auction showed. We're already engaged regularly in meetings, and you should be assured that we're not going to step away from this.

Andrew Plenge: Today, including the work we're doing on branded stores retirement meant to address exactly the types of price pressures that this auction shown we're already engaged regularly in meetings and you should be assured that we're not going to step away from this and it is an industry wide issue because at the end of the day, what theyre going to look to utilities.

Jeanne Jones: And it's an industry-wide issue, because at the end of the day, what they're going to look to utilities for is reliability and a resilient grid. All the other stuff is fine, but if those lights don't come on, that's when they're going to turn to us, and we're focused on that each and every day. I'll now turn it to Jeanne to just see if you have any further input.

Andrew Plenge: As for reliable reliability and resilient grid all the other stuff is fine, but those lights don't come off that's when they're going to turn to us and we're focused on that each and every day I will now turn it to Jim to just see if you have any further it yeah I think I'd just reiterate raised it up as a signal to your points are the need for more generation.

Jeanne Jones: Yeah, I think I'd just reiterate that obviously signals the need for more generation. We'll see what happens on the merchant side, but there's also the need for more transmission. You know, Calvin talked about the work we're doing on Brandon Shores. We're going to continue to lean in on that. We think there are some cost-effective solutions there, but there's also an expansion of kind of what we do today in terms of things to help our customers manage their affordability. So, for example, energy efficiency. We've been doing energy efficiency in ComEd since 2008, and we hit a milestone this year where we achieved $9 billion in customer savings since 2008. That's remarkable, right?

Jim: Well, we'll see what happens on the merchant side, but there's also the need for more transmission Katherine talked about the work we're doing on the brand insurance, we're going to continue to lean in on that we think there are some cost effective solutions there but.

Jim: There's also an expansion of kind of what we do today in terms of things to help our customers manage their affordability. So for example energy efficiency.

Speaker Change: We've been doing energy efficiency and comments in 2008, and we hit a milestone this year will be marked $9 billion in customer savings since 2008, that's remarkable.

Jeanne Jones: That work needs to continue to expand and get smarter and better as more demand comes on the grid, and we're leaning into that. We also hit a milestone of hitting 1 gigawatt of distributed generation under our rebate program in Illinois this year. So we're going to continue, as you mentioned, having those discussions with our policymakers. What else can we do there?

Jim: Work needs to continue to expand and get smarter and better at more demand comes on their credit where we're leaning into that we also hit a milestone of hitting a one gigawatt distributor generation under our ebay program in Illinois. This year. So we're going to continue as you mentioned, having those discussions with our policymakers what else.

Speaker Change: Can be too theyre good for customers good for investment breakdown.

Andrew Plenge: And address it.

Speaker Change: Meeting demand because we want to bring that demand right. We want that demand Thomas we just need to manage the other side of that which we're excited to do and we've done before and we will keep doing.

Andrew Plenge: And then on top of that we're going to continue to focus on what we can control and that includes our O&M.

Andrew Plenge: Continuing to manage that historically been at that 2% projecting to be at that 2%. When you know you our customers are facing power price increases well above that and then just normal inflation.

Jeanne Jones: Good for customers, good for investment, brings down and addresses competing demand because we want to bring that demand, right? We want that demand to come. So we're doing a good job there. We'll continue to invest in it. But I think, look, it's meaningful, and I think it opens up opportunities to provide solutions, and we look forward to doing that. And, Shar, if I can add to what Gene just added, the question that Gene's comments recognize that none of this operates in a silo.

Speaker Change: So we're doing a good job there and we'll continue to lean in there, but I think it's meaningful and I think it opens up opportunities to provide solutions and we look forward to doing that and sure. If I can add on to what changes added the question that James comments recognized but none of this operates in a silo. It's all connected so when you see.

Calvin Butler: It's all connected. So when you see a lever being pulled, you can't ignore the other pieces, which is why the rate-making process is so critical, and the transparency and the discussions have to continue and be ongoing throughout. I would tell you that we're working with our commissions on all types of scenarios, and we shouldn't take anything off the table because we need to address this issue and ensure affordability and equity are at the forefront of all discussions.

Speaker Change: Want a lever being pulled you can't ignore the other pieces and which is why the rate making process is so critical and the transparency and the discussions have to continue that would be ongoing throughout.

Speaker Change: Got it and then some of US have covered this space long enough to kind of remember El cap.

Speaker Change: 11 years ago 12 years ago.

Speaker Change: Obviously, it was down by the courts.

Speaker Change: Are you looking at a state mechanism to potentially one like peaking asset and rates is that what you're referring to.

Speaker Change: I would tell you that we're working with our commissions on all type of scenario that we shouldn't take anything off the table because we need to address this issue and ensure affordability in equities at the forefront of all discussions.

Speaker Change: Okay, Perfect and then just on the Susquehanna protest.

Speaker Change: Lastly, here, it's obviously a focus for US is slated to act shortly I guess.

Speaker Change: Assuming the amendment is not set for paper hearing how do you want to FERC to resolve kind of the broader issue kick it back to the <unk>.

Speaker Change: Started NOI for an eventual doper just any thoughts there I appreciate it.

Calvin Butler: Yeah, let me just tell you, and thank you for the question, I know this issue has gotten a lot of attention, and rightfully so. We're on the cusp of a major new source of load, and it's a critically emerging industry that holds a lot of promise for us in the U.S. economy. It's not because we're against co-location. We stated very clearly in the initial protest that we are not.

Speaker Change: Yes, let me just tell you I.

Speaker Change: Thank you for the question I know this issue has gotten a lot of attention for some reasons rightfully. So we're on the cusp of major new source of load and it's it's a critical emerging industry that holds a lot of promise for us in the U S economy.

Speaker Change: But let me add a bit of additional color.

Speaker Change: On my prepared remarks.

Andrew Plenge: I'm mindful that we do have an open proceeding and with FERC and we should learn more by the end of this week as you know.

Speaker Change: Our protest to the talent ISC.

Speaker Change: Because it's not because we're against co location. We've stated very clearly in the initial protest that we are not.

Speaker Change: We do believe that co location offer some benefits and allows our jurisdictions to compete successfully for this business and as I talked about.

Speaker Change: We've proven that we are an attractive partner for data centers as evidenced by Chicago.

Speaker Change: The top five market in this area for economic development.

Speaker Change: As evidenced that our participation in the <unk> window three at $850 million Award received because of data center growth in Northern Virginia.

Speaker Change: For us this is about rate design.

Speaker Change: Uses of the grid should pay their fair share.

Speaker Change: And while there may be unique opportunities to leverage land and equipment at generation plant to get data centers online quickly.

Speaker Change: You're still connected to the grid and are benefiting from a host of services that the grid provider to serve all of the low connected to it.

Speaker Change: You should expect us to continue to remain focused on economic development and yes affordability, we have to do that on behalf of our customers and Thats. What you should expect from a world class utility.

Speaker Change: That we can do both and really drive growth as we're doing across our jurisdictions, but not for go back to one customer over the other.

Speaker Change: That's why we're putting the same policy should not be determined.

Speaker Change: One off basis, and we will continue to see what FERC says and then determine next steps.

Speaker Change: Got it alright perfect. Thank you guys much appreciate it talk to you soon.

Speaker Change: Thank you.

Speaker Change: Thank you one moment for our next question.

Speaker Change: Our next question comes from the line of David Arcaro from Morgan Stanley.

David Arcaro: Good morning, David Good morning, Hey, Thanks for taking my questions.

David Arcaro: Im wondering if you could give a broad perspective on.

David Arcaro: What youre seeing in terms of state support for attracting data centers. It sounds like you had some encouraging things to say just are you seeing any evidence of pushback in any areas.

Speaker Change: Or the opposite are there incremental signs that some of the key states I'm thinking, Illinois, Pennsylvania continue to be supportive of bringing that industry to the state.

Speaker Change: Yes, David this is calvin without due to.

Calvin Butler: To your direct to your question, we're seeing a lot of momentum and matter of fact in our states based pass legislation to provide tax benefits to attract datasets.

Speaker Change: It might get a sense of our Seo works across all of our jurisdictions with each of the Ceos to ensure from an operation standpoint, we're set up to meet the demands.

Speaker Change: Expectations of those customers, Mike do you have anything you like that.

Mike: I think we've seen no shift I think.

Mike: Our states and across all of our jurisdictions continue to see the opportunities created by data centers for jobs economic development.

Mike: We continue to be very supportive, but also continue to be very engaged in the process to make sure that it started the thoughtful way, where it's a fair and equitable across.

Speaker Change: Okay excellent I appreciate that color and then in terms of the maybe your specific kind of pipeline of data center projects could you give additional color on what you've been seeing in terms of that momentum has it been largely focused in your comments service territory. Yet what are you seeing in other states at the moment.

Yoki Ornos: But tell you what I have our CEO, so what I'm going to do is ask because I think we see the most activity right now as you alluded to what's happening and then we will do it I'm going to ask Yoki owners.

Thomas: Thomas <unk>, President and CEO to provide more color and then for Karim and or Dave Alaska's Tyler Anthony If you guys have anything to add please don't hesitate Joe Thank you Calvin.

Speaker Change: It's been a robust market for data centers here in Illinois, we have over five gigawatts in what we call engineering face where data centers have paid us to start engineering their projects some of them actually have made deposit so that we can.

Speaker Change: Order large equipment like Transformers breakers.

Speaker Change: And then behind that we have another.

Speaker Change: 13, gigawatts in what we call prospects. So they are not yet in engineering, but they are knocking on our doors, making inquiries very interested in coming to our jurisdiction.

Speaker Change: One of the states, where there is a specific tax exempted.

Speaker Change: Passed in 2019.

Speaker Change: To support the.

Speaker Change: The development.

Speaker Change: And.

Calvin Butler: Location of data centers in our in our state.

Speaker Change: Maybe other Ceos have anything you'd like to add.

Calvert: In Maryland, Calvert I'll just add.

Speaker Change: <unk> committed to supporting data center that they come to date, we have seen a number of data centers that are actually up and operational not the hyperscale that many are talking about today, but we still remain committed to helping drive that.

Speaker Change: David have you come to Maryland.

David Arcaro: Yes, David.

Speaker Change: Hi.

David Arcaro: Yes, Anthony for Pepco Holdings for three utilities, I would say the same whether it's jersey, Delaware or the district of Columbia.

Speaker Change: A portion of Maryland with cream interest level has been significant with all the major all the major players doing different assessments of different sites and criteria Calvin.

Dave Velasquez: And Dave Velasquez for for Pico in Pennsylvania, beginning to see increased interest.

Speaker Change: Whether there are a couple of hundred to several hundred megawatts.

Speaker Change: A number of those are in engineering studies already and probably over the next few months have had a few more entering engineering studies as well.

David Arcaro: So David what you hear from the key is that we are actively engaged in that process and to date, we continue to ensure that from an operational and reliability standpoint, we're ready to meet the expectations of those large customers.

David Arcaro: Okay, great yeah. Thanks for the input across the board very helpful.

Speaker Change: Youre welcome.

Speaker Change: Thank you one moment for our next question.

Speaker Change: Our next question comes from the line of Steve Fleishman from Wolfe.

Steve Fleishman: Good morning, Dave.

Steve Fleishman: Hey, good morning. Thanks.

Steve Fleishman: So just on <unk>.

Speaker Change: I guess first on Illinois the.

Speaker Change: You mentioned these agreements with some parties in the grid plan could you talk to kind of.

Speaker Change: What parts of the grid plan.

Dave Velasquez: They've kind of agreed to and also just.

Dave Velasquez: Yeah, I guess the difference between.

Steve Fleishman: What we've seen is the commission kind of kind of ignore.

Steve Fleishman: <unk>.

Steve Fleishman: ALJ is another thing, but it does it does it make a difference if there is actually like settlements.

Steve Fleishman: As opposed to just.

Dave Velasquez: Views.

Dave Velasquez: Yes. Thanks.

Calvin Butler: You should expect us to continue to remain focused on economic development and, yes, affordability. We have a track record. Evidence of pushback in any areas or the opposite, you know, are there incremental signs that they've been, they've kind of agreed to, and also just, I guess, the difference between Now, Steve, thank you for the question, and as you and I spoke about, and we shared very publicly, when we got that order in December, it's important to level the playing field. At that point in December, we had not had a chance to engage with these new commissioners about what their expectations were.

Dave Velasquez: Steve. Thank you for the question and as you and I spoke about and we've shared very publicly when we got that order in December it is important to level set at that point in December we had not had a chance to engage with these new commissioners about what their expectations were and as you've laid out we have been actively engaged with staff.

Calvin Butler: And as you laid out, we had been actively engaged with staff and others and stakeholders up to that point. And we thought we had an 85 to 90% agreement on what we were going to do. And then the commission came in and said, "It's not what we were looking for."

David Arcaro: And others and stakeholders up to that point and we thought we had at that about 85% to 90% agreement on what we were going to do and then the commission came in and said it's not what we were looking for so since that time the engagement with the commission.

Unknown Executive: So since that time, the engagement with the commission, Okay, just one clarification. So I think there's, I know, there's like 11, Metrics that need to be met for the co-location issue. PPL, I guess found it in the interest of their customers to update. So I guess I would be interested in did you pursue this? And thank you for focusing so much on affordability. I wanted to continue that a little bit.

David Arcaro: We took their feedback and went directly to those stakeholders and said Hey, if this is what the commission's morning, how can we develop a plan to achieve that with the grid plan that will be recognized and also meet the expectations of do as these stakeholders. So the difference here is that it's with commission input with staff.

David Arcaro: Working in alignment with the commission and fees.

David Arcaro: Stakeholders now to your point the commission will have the final say, but these agreements are key because it's done in alignment with what they told us that they want it and it's just another marker along the way to show that we're making progress. So it's much different now when you present something to the commission because we've already given them.

Joe: Joe anything you'd like to add there no I think that as you have said it correctly that these agreements signify progress towards the specific items that the commissioners cited in their final order. So there are two areas one area is compliance and policy issues and these agreed.

Joe: Thats basically codify alignment in those policy.

Joe: And compliance issues now.

Speaker Change: The rate case really is more on <unk>.

Stephen: Investments and cost benefit and we're narrowing our our differences in that area to leading up to the evidentiary hearing as Qi mentioned, which will be on August 14th 2016, and Stephen I'll end with this is that at much Abbott much rather have an agreement that does not agreement with them as we proceed.

Stephen: Go forward so to me that's a significant step in the process.

Unknown Executive: Okay.

Speaker Change: Just one clarification. So I think there's I know there's like 11.

Speaker Change: Metrics that need to be met.

Unknown Executive: So could you just.

Speaker Change: And maybe tie in the answer of what's agreed upon to those <unk>.

David Arcaro: Metrics like to.

Speaker Change: This agreement on the 11 metrics or is it kind of more of a broad.

Speaker Change: You're talking about there what that commissioned point.

Steve: ZIP compliance Steve Yes.

Unknown Executive: Yes, yes, yes, so we.

Unknown Executive: Actually created a very specific <unk>.

David Arcaro: <unk>.

David Arcaro: Re filed grid time to make sure that each of those areas, where they cited a gap or deficiency.

Speaker Change: For us to explain how we're meeting each of one of those that they've decided in the final order on top of that we also engage each of the of staff and stakeholders to make sure that what they're looking for when it comes to compliance and policy requirements are also achieved.

David Arcaro: So we are.

Speaker Change: In a way if you read our refiled grid plan, we actually previewed the chapters with all of the stakeholders before we filed it but we re arranged it in a way so that it's easier and clearer for the commissioners to see how we address those 11.

Speaker Change: Gaps or deficiencies that they have identified.

Unknown Executive: Okay.

Unknown Executive: And I guess, one other question related to the.

David Arcaro: To the I guess co location issue.

Speaker Change: Some of the other.

Speaker Change: Distribution utilities, including PPL itself obviously.

Unknown Executive: Support the <unk>.

Unknown Executive: Finally, as it is in <unk>.

Speaker Change: <unk> I guess it sounded in the interest of their customers.

Unknown Executive: So I guess I would be <unk>.

David: David did you pursue.

Speaker Change: Kind of trying to resolve this issue directly before you made this filing.

Unknown Executive: Well, Brian I'll, just see if there was a win win yep Yep, So for us Steve.

Unknown Executive: Steve when we found out about the issue out in Pennsylvania.

Speaker Change: It was a matter of public policy, we didn't have anything in front of us in terms of share do you have an opportunity to enter into a high assay. So forth what our issue came down to public policy and Thats why we intervene to understand what was going on and to give FERC opportunity to opine. So to your point, we didn't have a <unk>.

Speaker Change: Specific exelon utility contract for us to come to an agreement on.

Speaker Change: Once we've made once we made our filing that's when we found out other things were happening within our heart jurisdictions that were taking place and we are looking to have those discussions and like I said, we will work with anyone.

Speaker Change: Get these things done and my piece on this is that if we can understand and fully grasp what the costs are.

Speaker Change: And the benefits and how theyre going to be allocated we will have those discussions with anyone at any time. So for us on the PPL was about public policy and what's taking place with new Red Ppl's opinion are intervening back into the process. What they said was that.

Speaker Change: This wasn't a form for Exelon AEP disc.

Steve I.: Discussion, although they recognized significant issues need to be addressed and someone needs to address them collect do you have anything you'd like to add there. Thank you collect honorable an EVP of public policy and Chief External Affairs Officer, Steve I. Appreciate the question I will.

Speaker Change: Tackling Apple Calvin comments.

Speaker Change: We are very open to working with any one on these rate making issues and this is what we are speaking of patch we.

PPL: At PPL handset different perspective here.

Speaker Change: And we got involved with because of.

Speaker Change: The prior policy implications and we need to refer to provide that guidance through policy.

Unknown Executive: Will help all of us.

Speaker Change: And most importantly, it will help us understand the impact of these sorts of transactions on PJM customers.

Unknown Executive: We look forward to that.

Unknown Executive: Dialog and discussion will continue to be really up in <unk>.

Speaker Change: Gauge at FERC with.

Unknown Executive: Stakeholders and not tomorrow.

Unknown Executive: Okay.

Speaker Change: As <unk> demonstrated here. This morning, we will continue to provide at <unk>.

Speaker Change: <unk> solution for our large customers.

Unknown Executive: It has to be done in consideration of the cost in the <unk>.

Speaker Change: Portability impacts for customers.

Unknown Executive: And then obviously reliability.

Unknown Executive: Okay. Thank you.

Steve: Thank you Steve.

Unknown Executive: Thank you.

Speaker Change: Our next question comes from the line of Paul as embargo from Jefferies.

Paul: Good morning, Paul.

Unknown Executive: Paul.

Tim: Morning, Tim.

Speaker Change: And thank you for focusing so much on affordability I wanted to continue that a little bit.

Unknown Executive: Just after the PGM auction, if you have a rough view on what the customer bill impacts could be across the footprint, like BG in particular, and if you're going to use this to advocate for acceleration of transmission procurement, double digit increases, you know, year over year, it depends on our jurisdiction in terms of the current capacity constraints in terms of other contracts that are in place. But that's how we're thinking about it.

Speaker Change: After the PJM auction, if you have a rough.

Unknown Executive: Are you on what the customer bill impacts could be across the footprint with BG in particular.

Unknown Executive: And if youre going to kind of use this to advocate for acceleration of transmission procurements in the region.

Unknown Executive: Yeah, Hey, Paul It's gene we are still buttoning up all the calculations, but you can think of it in some of our jurisdictions, including BG is gonna be.

Unknown Executive: Double digit increases year over year.

Unknown Executive: It depends on our jurisdiction in terms of the current.

Unknown Executive: Capacity constrains in terms of other contracts that are in place, but that's how we're thinking about it it's meaningful and probably.

Unknown Executive: Double digits and BG in some of our other jurisdictions.

Speaker Change: But youre absolutely right. We are going to this is just we've already been leaning in to the affordability discussion and I think that's just accelerating.

Speaker Change: The solution for that which is that we need to get to a solution.

Unknown Executive: Whether it's more generation.

Speaker Change: Whether it's more transmission, which we stand ready to do and are already proactively doing that and then I mentioned an expansion of the current programs that we have today that help our customers.

Speaker Change: Through our investments and.

Speaker Change: And connecting them to different resources in DG space.

Speaker Change: Help them manage their belt, so we look forward to that.

Unknown Executive: And I think just generally.

Unknown Executive: It's meaningful and probably true. I'm reiterating exactly what Calvin said. Policy is important. This energy transformation we have always said from the beginning is going to be expensive, and the ones that do it affordably will do it sustainably, and that's why we're focused on making sure that every dollar goes as far as it can. Got it. And then the filing was made in conjunction with AEP. I'm curious about how you do it or how did they get it or how did they sign on.

Calvin Butler: Reiterating right what Calvin that.

Unknown Executive: <unk> policy is important this energy transformation, we have always said from the beginning it's going to be expensive and the ones that do it affordably, we will do it sustainably and that's why we're focused on making sure.

Unknown Executive: At every dollar goes as far as I can.

Unknown Executive: Yes.

Unknown Executive: Okay.

Speaker Change: And then I know everyone's focused on FERC and Susquehanna.

Speaker Change: Related but different topic in Maryland.

Speaker Change: Bill one the Colocation study just what are your legislative priorities, there and if you could give any additional context I know theres been some.

Speaker Change: Strong comments filed by parties.

Unknown Executive: Yeah, Hey, this is Calvin I would say on the Senate Bill one because it's all about <unk>.

Speaker Change: We'll leave it to the affordability to discussion and what takes place and the impact of all of the customers. So again, we think the process in which the general Assembly has laid out and working with and saying we're going to have a very public process inherent to have all stakeholders engaged in it is what we want.

Speaker Change: We will adhere.

Speaker Change: To what the regulatory body or the general Assembly waves out we just want all customers to have a voice in that process because otherwise we ask the utility will be the ones looking back and saying where were you at in that discussion and representing us and thats important because if you do.

Speaker Change: This fall we would notice if you do this in a vacuum then you have to react to the things that have happened already and it's very typical to effectuate pop good policy when youre trying to recover from something Thats already occurred and that is what I think the working group with SB, one will adhere to and we want to be involved in that process with everyone else.

Speaker Change: Great. Thank you very much and thank you for keeping us on the edge of our seats in the dog days of summer.

Unknown Executive: Sure.

Unknown Executive: Sure.

Speaker Change: Thank you.

Unknown Executive: Okay.

Speaker Change: Thank you.

Speaker Change: Our next question comes from the line of Anthony crowd do from Mizuho.

Speaker Change: Good morning afternoon, Hey, good morning team just a couple quick ones I guess, if I could follow up on Steve's question on the FERC.

Unknown Executive: Proceeding.

Speaker Change: Just one is do you have any idea of the FDA.

Speaker Change: If the commission wanted to hold hearings the timing that would occur before a decision.

Collab Honorable: Hi, Anthony its collab honorable again.

Speaker Change: <unk> has a number of options in terms of how to address that exchange rates quite frankly by a number of stakeholders in that market.

Speaker Change: You mentioned, one could be the matter.

Unknown Executive: Matter for hearing should it get there.

Speaker Change: Outstanding issues affect or law that should be resolved.

Speaker Change: Before ruling should it go to hearing you could take a year.

Speaker Change: And so that would allow for an administrative law judge.

Speaker Change: Here the theory of the prospectus of the parties that are allowed to enter into.

Speaker Change: And to consider them and make a ruling.

Unknown Executive: Got it and then.

Speaker Change: The filing was made in conjunction with AEP I'm curious on how do you or how just.

Speaker Change: How did they get or how did they sign off did you solicit other utilities and some besides AEP decided to sign on and others did not or Im just curious I understand that this is not about co location. It's about rate design. It was actually struck me that more more utilities and sign on and I guess, that's the root of my question.

Unknown Executive: Did you solicit other utilities? And some decided, you know; AEP decided to sign on, and others did not. Or I'm just curious.

Unknown Executive: I understand that this is not about co-location. It's about rate design. It actually struck me that more utilities didn't sign on. And I guess that's the root of my question.

Unknown Executive: Yeah.

Speaker Change: I think at the end of the day and they just did.

Speaker Change: There's a there's a timeline by which you can response rate and so we responded quickly.

Speaker Change: As we said, we're going to be a leader in.

Speaker Change: And that's how we're going to be a leader in affordability in their key key questions here.

Speaker Change: But this demand is coming either way right, whether it's co located or not that's going to require investment and our focus is making sure. The investment get started for the needs of our customers and that everyone has a fair and equitable allocation of the costs and easing of grant and I think that's the bottom line.

Unknown Executive: Yes. Great, and switching gears, my last question refers to slide eight, and you talk about all the opportunities in Illinois. I guess, given the low ROE that you received in the last rate case, would most of your investment, or all your investment, be focused on transmission? Like, I guess, is there a reluctance to maybe do distribution investment in Illinois, given the lower returns that they're awarding?

Speaker Change: Great and switching gears my last question refers to slide eight and talk about all the.

Speaker Change: Turning to Illinois, I guess given the.

Unknown Executive: ROE that you received from the in the last rate case.

Unknown Executive: But with most of your investment of all your investment will be focused on transmission like I guess is there a reluctance to maybe do distribution investment, Illinois, given the lower returns that they're awarding.

Unknown Executive: Yes, some of it's D and some of it's T, so there's a mix there. And the more high-density ones we're seeing are more on the T side. And you saw that in our update on the Q4 call. We added a lot of transmission to accommodate that high-density load. As it relates to distribution, we have an obligation to serve those new customers, and so while it is a low ROE, we've got to manage that, and get that work done.

Speaker Change: Yes, some of it some of its team so theres a mix there and then the more high density months were seeing more on the T side and you saw that in our update on the Q4 call. We added a lot of transmission tube to accommodate that high density load as it relates to the distribution, we have an obligation to serve those new customers.

Unknown Executive: And so while it is a low or we thought it manage that get that work done and at the end of the day that that demand coming in rate helps from an affordability and spreading the cost of the grant so.

Unknown Executive: And at the end of the day, that demand coming in helps promote affordability and spreads the cost of the grid. So the only other thing I'll mention is new business on the multi-year plan is outside of the cost, the 105 cap on the distribution reconciliation. So, again, we need to get that work done and hook up those customers. It's for the benefit of all of us. But it is a mix of T and T. Thanks for taking my questions.

Unknown Executive: The only other thing I'll mention is new business on the multiyear plan is outside of the cost the 105 cap on the distribution reconciliation so.

Unknown Executive: Again, we need to get that work done.

Unknown Executive: And hook up the customers just for the benefit of all of us, but it but it is a mix of PMT.

Speaker Change: And a lot more we see more coming.

Unknown Executive: Great. Thanks for taking my questions.

Operator: Thank you, Anthony. Thanks to all our participants for joining us today. This concludes our presentation. You may now disconnect. Have a good day.

Speaker Change: Thank you you answered against any.

Speaker Change: Thank you.

Operator: This time I would now like to turn the conference back over to Calvin Butler for closing remarks.

Operator: Thank you Gigi and as always thank you guys for your interest and participation in our earnings call as always we remain open to answer any questions and just get feedback with you throughout the day or follow up to this so I just wanted to say how much appreciation from the team at Exelon. We appreciate your interest.

Speaker Change: And the company and just engaging with us so with that <unk>. This concludes the call.

Operator: Thanks to all our participants for joining US today. This concludes our presentation. You may now disconnect have a good day.

Operator: Okay.

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Operator: Okay.

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