Operator: If that does not resolve the issue, please click the help option in the upper right-hand corner of your screen for online troubleshooting. It is now my pleasure to turn today's program over to Ryan Brown, Vice President of Investor Relations. The floor is yours.
Ryan Brown: Great. Thank you, Michelle. Good morning, everyone. Thank you for joining us for the 2026 Q3 earnings call. Leading the call today are Calvin Butler, Exelon's President and Chief Executive Officer, and Rob Kleczynski, Exelon's Chief Financial Officer. Other members of Exelon's senior management team are also with us today, and will be available to answer your questions following our prepared remarks. 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. You can find the cautionary statements on these risks on slide 2 of today's presentation or in our SEC filings. In addition, today's presentation includes references to adjusted operating earnings and other non-GAAP measures.
Ryan Brown: Reconciliations between these measures and the nearest equivalent GAAP measures can be found in the appendix of the presentation and in our earnings release. It is now my pleasure to turn the call over to Calvin Butler, Exelon's President and CEO.
Calvin Butler: Thank you, Ryan, and good morning, everyone. It's great to be with you all again. Through the first nine months of the year, Exelon continues the strong execution you've come to expect of this organization. This morning, we reported adjusted operating earnings of $0.87 per share, ahead of expectations, and narrowed our full-year guidance to $2.85 to $2.91 per share. It starts with our most fundamental responsibility, providing the safe, reliable energy our customers and communities count on while keeping bills as low as possible. The final 2025 reliability benchmarking results reinforce that point. Our utilities continue to lead the sector. Our four operating companies now rank first, second, fifth, and sixth for electric reliability among their US utility peers. That consistency comes from years of disciplined investment and the expertise and commitment of our more than 20,000 employees.
Calvin Butler: Importantly, we deliver that industry-leading reliability while keeping customer bills below the national average, despite significant increases in PJM-driven supply costs, which are outside of our control. The rankings are important, but the proof is in how our system and our people perform when customers need us most. We saw that during one of the most active storm seasons in recent memory. Year to date, our teams have responded to approximately 31 significant weather events across our jurisdictions, including three major storms in ComEd's territory this summer that each impacted more than 400,000 customers. Across those events, we faced 57 confirmed tornadoes and two derechos. Even in those most extreme conditions, our grid investments helped prevent an estimated 6.6 million customer outages, and we were able to restore service to 94% of our customers in less than 48 hours.
Calvin Butler: Those results mean fewer disrupted workdays and school days, and more time with power for the businesses and public services our communities rely on. What makes that performance even more meaningful is that being on for every challenge doesn't come at the expense of affordability. Last year, our customer rates were 19% below those in the largest US cities, while bills as a percentage of median income were 20% below the national average. That combination of reliability and affordability is a real point of distinction for Exelon, and it's at the heart of The Exelon Promise, our comprehensive plan to deliver exceptional service while keeping bills as low as possible. We recognize our responsibility to invest before the system is strained and customers feel the consequences. Delaying needed investment doesn't make the need go away.
Calvin Butler: It leads to more outages, greater disruption, lost economic opportunity, and higher costs in the future. That's why our focus is clear: invest responsibly, operate efficiently, and deliver on our commitments. We're in a great position, but you know us well. We're always looking for ways to improve, and the organizational changes we made in August reflect that mindset. We made these changes with a clear goal: get closer to our customers, execute capital more effectively, and make decisions faster. We brought technology and customer operations together, centralized engineering, design, and project management, and aligned our utility CEOs directly to me. That gives us clear accountability and a more direct line of sight into execution across the company. Many of you have had the opportunity to meet Rob Kleczynski and know what a strong, accomplished leader he is.
Calvin Butler: Rob has stepped into the CFO role, and I am excited for you to hear from him shortly. With this transition, Jeannene, in her expanded role leading finance and strategy, is sharpening our focus on where we see the greatest opportunities to create long-term value for our customers, communities, and shareholders. I will say it plainly. I am energized by this team, and I have never been more confident in our people, our platform, or our ability to execute. We also continue to make strong regulatory progress across our jurisdictions. We have closed out several key dockets, while our remaining rate cases and proceedings continue to move forward as expected. In Pennsylvania, our discussions with the governor's office, legislators, and the commission remain active and constructive. We look forward to participating in the rate-making working group and helping advance a framework that supports affordability, reliability, and continued investment.
Calvin Butler: Rob will cover these developments in more detail, but the takeaway is straightforward. We are making progress on the regulatory outcomes needed to support our investment plan and deliver for our customers. Our $41.7 billion investment plan remains diversified, durable, and defensive, with no single project greater than 3% of the total. That plan drives 7.9% rate base growth, underpinned by 16% growth in transmission as we invest to strengthen reliability and resiliency, serve new customers, and address growing constraints across the grid. We see a significant runway beyond the current plan, with $12 billion to $17 billion of identified transmission opportunities and another $3 billion to $7 billion of potential regulated storage investment. Importantly, these investment opportunities directly address the challenges our customers are facing. The biggest challenge for our customers face is in the supply, and candidly, our progress on regional solutions remains too slow.
Calvin Butler: The Reliability Backstop Auction has been delayed as PJM works through FERC's concerns around cost allocation, credit requirements, and customer protections. Similarly, PJM's IRAS proposal was rejected based on jurisdictional grounds. Neither proposal would have solved the reliability and affordability challenges facing our customers, but both represented important steps forward. We are at a point where our customers simply cannot afford continued delays, so we are not waiting for a single regional solution. We are advancing practical solutions that states and utilities can pursue today, where policy supports them and customers are appropriately protected. Our proposed 500-megawatt project in New Jersey is a good example of what is possible, with more than $700 million in expected net customer benefits and no customer bill impact during its first five years of operation.
Calvin Butler: These are investments tied to real customer needs, and we will pursue them with the same disciplined, risk-adjusted approach our customers and investors expect. With that, I will turn it over to Rob.
Rob Kleczynski: Thank you, Calvin, and good morning, everyone. I appreciate the comments, and I am excited to step into this role. I also want to thank Jeannenene for her partnership through the transition and for the strong foundation she has built. I look forward to continuing to work closely with her and to engaging with many of you at EEI next month. Today, I will cover the Q3 financial results and outlook, provide an update on our regulatory agenda and the opportunities Calvin just discussed, and finish with our balance sheet and financing progress. Starting on slide 5, we present our quarter-over-quarter adjusted operating earnings walk. Exelon earned $0.87 per share in Q3 2026 compared to $0.86 per share in Q3 2025.
Rob Kleczynski: Including rounding, the one-penny increase was primarily driven by $0.06 from approved distribution and transmission rates net of depreciation, $0.01 of AFUDC, $0.01 of weather, and $0.03 attributable to lower costs in the quarter. This is largely offset by $0.07 related to storm activity and $0.04 in interest and tax expenses. These results are ahead of our expectations outlined on the Q2 call. Primarily due to favorable weather and the timing of O&M spend, we continue to deliver customer-focused investments that support top-quartile reliability while managing costs and timing within our full-year plan. Based on our performance through Q3, we are narrowing our full-year operating earnings to $2.85 to $2.91 per share, with the goal of delivering at the midpoint or better.
Rob Kleczynski: Our Q4 outlook assumes approved distribution and transmission rates, the absence of one-time items from 2025, fair and reasonable outcomes in our proceedings, and normal weather and storm activity, along with the reversal of timing. Finally, we reaffirm our expectation of annualized adjusted operating earnings growth near the top end of our 5% to 7% range from 2025 through 2029. That outlook is supported by our $41.7 billion capital plan, 7.9% rate base growth, disciplined cost management, and a balanced financing plan that maintains strong investment-grade credit metrics. Turning to slide 6, we continue to make solid progress across our regulatory agenda. Our approach remains focused on recovering prudent investments that support safe and reliable service while being responsive to customer affordability and the priorities of our jurisdictions.
Rob Kleczynski: Starting in Maryland, the Public Service Commission issued a final order in Pepco's electric base rate case in August, approving a $50.9 million revenue requirement increase based on a 9.4% ROE and a 50.5% equity ratio, with new rates effective 10 August. Also in Maryland, the commission issued its final order in the lessons learned proceeding at the start of October, recognizing a continued role for forward-looking rate-making with greater transparency and customer protections. We look forward to participating in the upcoming forward test year study alongside the commission and stakeholders to help shape the approach that supports affordability and reliability for customers across the state. BGE's electric distribution rate case continues to progress on schedule. On 16 October, BGE filed rebuttal testimony, and we look forward to continuing to support the prudency of the investments made to maintain a safe and reliable grid for our customers.
Rob Kleczynski: Evidentiary hearings are scheduled for November, ahead of a final order expected in January 2027. In Delaware, Delmarva Power's electric base rate case remains on track, with a final order expected in the Q3 2027. As permitted by Delaware law, DPL expects to implement interim rates at 75% of its request in December, subject to refund. Finally, ComEd reached a settlement with all parties in its annual reconciliation proceeding at a delivery adjustment amount of $205 million, and agreed-upon draft order was filed on 1 October. A final order is expected by 20 December. The grid plan also remains on track with administrative law judge filing a proposed order this month recommending an approval of the plan with modification. An order is expected by 15 December.
Rob Kleczynski: As filed, the plan is expected to deliver $51.5 billion of customer benefits, more than three times its approximately $15.3 billion cost, while supporting reliability, accommodating significant load growth, and advancing Illinois' energy policy objectives. Across these proceedings, our approach remains consistent. We are investing to support reliability, resiliency, and customer needs while remaining focused on affordability and cost discipline. Turning to slide 7, let me provide some additional detail on the transmission and storage opportunities Calvin outlined. Importantly, these opportunities are incremental to our current plan, and we will pursue them with the same disciplined, risk-adjusted approach we apply across the business. Starting with transmission, as we discussed on our Q4 call, we see an additional $12 billion to $17 billion of investment opportunity over the next decade beyond our plan.
Rob Kleczynski: That opportunity is driven by increasing the reliability and resiliency of aging infrastructure, an evolving generation mix, growing demand, and the need for a more flexible grid. We have also had success in competitive transmission, including approximately $1.2 billion of Exelon investment approved in PJM's RTEP window last year. We will continue to complete and open windows in PJM and other RTOs, and we expect more of those opportunities ahead. Storage is also a growing opportunity that is unique and practical solution to the current supply crisis. With regulated storage, we have certainty that projects get built and control over when and how they are deployed. Customers benefit as well through lower capacity prices in the flow-through of tax benefits to smooth rate impacts.
Rob Kleczynski: We currently see 1.5 to 3.5 gigawatts, or approximately $3 billion to $7 billion of potential storage investment beyond our plan. Across several of our jurisdictions, competitive markets have not delivered the level of new supply that states are seeking. We are well-positioned to help close that gap as states evaluate how best to meet their storage and resource adequacy goals. The opportunity we have identified represents only a portion of what states are targeting, leaving room for a range of solutions. We view utility-owned storage as one option alongside competitive development, not a replacement for it. Today, three of our states, New Jersey, Maryland, and Delaware, allow for utility ownership of storage as a resiliency asset, and our project in New Jersey is a good example of the value these solutions can provide.
Rob Kleczynski: The 500-megawatt project at Atlantic City Electric, developed with Invenergy, will represent the single largest battery storage installation in PJM and is expected to deliver more than $700 million in net benefits to customers. The New Jersey BPU is moving forward with its review, and we expect a final order late in Q1 2027. Taken together, transmission and storage represent practical solutions to address the needs we see across our jurisdictions and meaningful potential upside to our current plan. We will pursue those opportunities where the customer need is clear, the economics are attractive, and the appropriate approvals and recovery mechanisms are in place. Finally, turning to slide 8, I will conclude with an update on our balance sheet, which remains core to our strategy and essential to funding the investments our customers need on cost-effective terms.
Rob Kleczynski: We have now completed 100% of our planned 2026 debt financing, mitigating our exposure to interest rate volatility for the year. Looking ahead, we continue to take steps to de-risk our plan, leveraging our pre-issuance hedging strategy to help reduce our exposure to future rate volatility, limiting the earnings impact of a 50 basis point increase in rates to approximately a penny a share. On equity, we have priced approximately 30% of our $3.4 billion of planned equity needs through 2029 via forward contracts under our ATM program, including all $850 million of our 2026 needs, which we expect to settle by 15 December. Our credit metric outlook remains strong, with average metrics of approximately 14% through 2029, roughly 200 basis points above Moody's downgrade threshold and about 100 basis points above S&P's, providing the financial flexibility to fund our capital plan and pursue future opportunities.
Rob Kleczynski: We remain confident in our ability to deliver value for our customers and shareholders through disciplined execution, a strong balance sheet, and investments that support reliable, resilient, and affordable energy. Thank you. I will now turn the call back to Calvin for closing remarks.
Calvin Butler: Thank you, Rob. Let me close with why we remain confident in what lies ahead. Exelon sits at the center of the economic growth taking place across our jurisdictions. Reliable, affordable energy infrastructure is essential to serving growing demand, attracting investment, creating jobs, and supporting our customers. We bring a diversified platform, a durable $41.7 billion capital plan, and a proven record of execution. We are on track for 2026 and continue to expect earnings growth near the top end of our 5% to 7% range through 2029, supported by nearly 8% rate base growth and a strong balance sheet. Importantly, our base plan does not depend on speculative upside. Reliability, resilience, and grid modernization support the outlook. Transmission and storage extend the runway, and we will add those investments only as approvals and cost recovery are secured.
Calvin Butler: That is the Exelon investment proposition, a durable and diversified base plan, proven execution, and meaningful upside, all grounded in disciplined investment and customer affordability. Discipline makes growth credible. We invest when the need is clear, the scope is defined, and the recovery path is in place. We have the people, the platform, and the discipline to execute today and create lasting value for customers and shareholders. With that, we are ready to take your questions.
Operator: Thank you. If you would like to ask a question, simply press star one one on your telephone keypad. One moment for our first question. Our first question will come from the line of Shahriar Pourreza with Wells Fargo. Your line is open. Please go ahead.
Shahriar Pourreza: Hey, guys. Good morning.
Calvin Butler: Morning, Shahriar.
Shahriar Pourreza: Morning, Calvin. Just, I know obviously you guys have highlighted some pretty healthy upside to the plan. You talk about the $12 billion to $17 billion for transmission, which I think we've known about, but you put actual numbers on the storage side at $3 billion to $7 billion. I guess, at what point does the opportunity start to accrete to the growth rate? I know, Calvin, at the end, you mentioned that it extends the runway, but you're already at the top end. I guess, can you help frame the inflection point here? Thanks.
Calvin Butler: No, thank you, Shahriar. Part of this is, we've been in this race now for a year and a half or so. I'm looking at Carim Khouzami, who we've put into this role. We did this anticipating the need and seeing the opportunity. So I'm going to ask Kareem to lean into this discussion with you because the numbers that we put forward are direct example. As they come forward, we put them on paper for you and really lay out the runway. So, Carim?
Carim Khouzami: Yeah, no, thanks, Calvin, and good morning, Shahriar. What I would tell you is I echo what Calvin said and say the pipelines you see here are to illustrate what we see as the upside. On the transmission front, these are the awards that we expect to see over the next few years. When it rolls into our plan, it will obviously be when these are constructed and accrete to earnings once they're operational. So for transmission, there's a timeline of, call it three to five to seven years, depending on what type of project it is, in terms of when it rolls into our plan. On the battery front, it's much shorter duration in terms of when we announce to when we actually have it up and operational.
Carim Khouzami: The New Jersey battery, for example, we expect that we will be able to get that, once we get approval, up and running in just under three years. So, that will be when it starts to go into rate base and be accretive to earnings. So hopefully that answers your question.
Shahriar Pourreza: That does. That's helpful, Kareem. Just on the 1.5 to 3.5 GW of storage opportunity, I guess, how much of that sits in jurisdictions where you already own storage as a reliability or resilience asset, or how much needs legislative change first? I guess, where's the gigawatts actually concentrated? Is this mostly New Jersey and Maryland, or Delaware and Illinois in there too? Thanks.
Carim Khouzami: That pipeline is across all of our states, but I would say a large portion is in those states where we have the ability to own battery storage. One of the things that we're doing, and I think we've said this before, is that we obviously see storage as a necessary tool in our states to help address the affordability and reliability crisis that we're facing here, one of the tools. What we're doing is we're obviously pushing those forward in those states where we are able to own them today, and that's Maryland, Delaware, New Jersey, so you can expect to see projects in those states. In our other states, we are obviously advocating for changes in legislation and the ability to own them there as well, but we're not waiting till we get legislation there.
Carim Khouzami: We're out there actively talking with developers, looking and evaluating land, talking to and assessing where we could put these projects, because what we do know is we need to move as fast as possible because our customers need it. One of the things we want to do is make sure that we are ready, that once we get the necessary legislation in those states, we'll be prepared with real projects to move forward. It also helps us have those discussions with stakeholders, talk about real projects, what they would look like, what the impacts would be. I would say the 1.5 to 3.5 is across all of our states, but obviously you'll start to see some sooner in some states than others.
Calvin Butler: Yeah, Shahriar. Go ahead, please. Jeannene, go ahead.
Jeanne Jones: I was just going to say, to reiterate what Kareem said, it's across our states, but if you look at it's based on what the state is saying they would like to procure in that state. We just took 25% to 50% of that just to say if we capture 25% to 50% of that, to Rob's point, we don't need to do it all. We think all solutions should be on the table. If some of that is filled by competitive, that's great. We just need more done, and we're ready to step in.
Jeanne Jones: Wanted to take across our states, what are our states looking for, give you a percentage of what might be done by us, and just to give you a range of how we are thinking about the potential opportunity here to add to the growth, but importantly, that growth solves the supply crisis that we're facing as well.
Calvin Butler: Shahriar, what I wanted to do is just kind of make the finer point that it's not an either/or. It's part of that The Exelon Promise. We talk about these are the things that we can do right now, and we're going out and doing it. You will see in all of our jurisdictions, we're advocating continually for utility-owned generation. Again, not to replace the competitive market, but to supplement it, and we can't wait for others to do it, so we're stepping up to the plate and keeping the pressure on and the momentum going because we know customers are suffering and the bills are getting too high, and we just can't say it's not our problem. We're stepping up to be a solution-oriented company.
Shahriar Pourreza: Perfect. Appreciate it, guys. Calvin, I knew Jeannene was going to miss us too much and was still going to hop on the call. Thank you, guys. Appreciate it.
Calvin Butler: I am holding her down, Shahriar Pourreza. She is ready.
Shahriar Pourreza: I knew she missed us. See you guys.
Operator: Thank you. One moment for our next question. Our next question is going to come from the line of Paul Zimbardo with Jefferies. Your line is open. Please go ahead.
Calvin Butler: Morning, Paul.
Paul Zimbardo: Hi. Good morning, Calvin. Good morning, team. And congrats on the new roles, and especially Mike on the retirement.
Calvin Butler: You are welcome.
Mike Innocenzo: Thank you.
Calvin Butler: Thanks, Paul.
Paul Zimbardo: Yeah, no, thanks again for the time. First, I wanted to ask just a more, I do not know if it is a new Jeannene question, but just on strategy. You mentioned really the lack of progress with PJM, and the important FERC proceedings. Just how are you thinking about the May PJM auction? Just are you advocating for a price cap, price floor, or other kind of more extensive changes to protect your customers?
Calvin Butler: Yeah, Paul. First, let me just say, I wanted to pause here, and then I am going to look to Colette and Jeannene. But let me just tell you, for PJM, I want to give the new leadership and that board some credit. They continue to try to work to find solutions and be responsive to FERC. I even think last night, what came out later in the afternoon or early evening was an example of how they are looking to respond in real time to provide solutions. As I said in my prepared remarks, it is progress, but it is still slow. We continue to try to make progress to move this needle forward. So, I will look to Colette and Jeannene to see if they have anything to add directly to your point.
Colette Honorable: Thank you, and good morning. As Calvin referenced yesterday, PJM put forward a revised Reliability Backstop Procurement proposal. We are continuing to lean in as we focus on short, medium, and long-term solutions, because it goes to affordability and reliability for our customers. Why did PJM put forward this proposal? PJM sees, as we do, and you heard Jeannene talk about this in our earnings calls, the need to focus on getting more capacity online, because PJM could face approximately an 11.5 gigawatt shortfall by 2030. You know that PJM put forward a proposal. FERC sent them back to the drawing board, and last night, PJM came forward with this proposal focused on three key areas. One is with regard to cost allocation and making sure that the costs associated with large load follows where the costs are caused, if you will.
Colette Honorable: So, more directly tying the cost allocation to large load growth. Second, PJM in this most recent proposal reduced the collateral requirement from 50% to 40%. Then finally, the other key element in that proposal was ensuring that exit fees apply to large, excuse me, load-serving entities rather than to TOs. So, we see PJM working here. What I would say is that we need more work. We appreciate all that they are doing. We need more work, and you are seeing FERC help really refine our focus collectively on getting more infrastructure online. We can all agree on that. Then moving more quickly. We need to work with more of a sense of urgency.
Colette Honorable: Finally, I would say, helping empower the states to continue leading here, getting states more involved in ensuring resource adequacy and creating processes and supporting processes where states can ensure that the necessary generation that we need is coming online. I will turn it over to Jeannene to see if she has anything further.
Calvin Butler: Paul, did that answer your question?
Paul Zimbardo: Just to add on, expectations on the cap and floor extending, not so much the RBP, but kind of the base auction.
Colette Honorable: Thank you. We continue to support the use of the cap until such time as we have better processes in place to bring the cost down. What we are seeing for our customers is the costs are too high. The markets are telling us we need more capacity online, so we continue to support the use of the cap in the short term and medium term.
Paul Zimbardo: Okay. Awesome. Then one other, if I could sneak it in, you have a lot of large load and concentrated Illinois, of course. Are you seeing the hyperscalers, the customers kind of being willing to put up more upfront capital? I know that has been a pretty big trend, yet some of the stronger TSAs. Just curious if you are seeing that kind of shifting in a favorable way to reduce equity needs prospectively. Thank you.
Calvin Butler: Paul, in every conversation that we have had with our developers, they are willing to step up and to meet the need and to continue the development. Matter of fact, the largest developers lean into our transmission security agreements and appreciate them because it removes a lot of the noise within the system. They understand that they want to be good community partners. When you look at our TSAs across, the collateral that we have received has actually increased with the number of projects, and that is exactly what they were intended to do, to take out the speculative load, show up as good community partners, and protect our existing customers from any rate increases because of large load development. So, we have not heard any pushback from it. Matter of fact, just the opposite.
Paul Zimbardo: Okay. Awesome. Thank you very much, team.
Calvin Butler: Thank you.
Operator: Thank you. One moment for our next question. Our next question will come from the line of Carly Davenport with Goldman Sachs. Your line is open. Please go ahead.
Calvin Butler: Morning, Carly.
Carly Davenport: Hey, good morning. Thanks so much for taking the questions today. Maybe to start, just wanted to get a sense as you specifically continue to engage with stakeholders in Pennsylvania, if there's any incremental precision that you can provide on when you might be thinking about going in for another PECO rate case, and just what the key considerations are as you think about formulating that filing.
Calvin Butler: Yeah, thank you. I'll start, Carly, but then Mike Innocenzo, who's serving as CEO of PECO, I would ask Mike to lean into that discussion. First off, from a PECO rate case, we have been in active discussions with all Pennsylvania stakeholders. That's the governor's office, the commission, as well as our customers and communities on the what and the why. Everyone understands that we will be coming in for another rate case within the planning period, but we are being very responsive to the governor's letter and the outlines that he's put in place on what he's looking for utilities to do and how we step up. There's not a question that strong utilities are needed within Pennsylvania to continue the economic development and workforce job creation within that state. Mike is on the ground every day and having those discussions, and I'll turn it over to Mike.
Mike Innocenzo: I think you said it well. Thanks. I think you said it well, Calvin. The only thing I would just add is, I think in our conversations, everybody really recognizes the value that PECO has created through their investments, the value that it's creating in the communities that we serve, the importance of investment in the infrastructure for improving reliability. So, there's that acknowledgment that we see. Just recommending that when we come in, we're going to make sure that we come in and they're showing investments that are adding value to the community. As in terms of how and when, we're still working through that process as part of our key stakeholder engagement, addressing each of the points that the governors, not only the governors made in this letter, but also working closely with the commission, the rate-making working group.
Mike Innocenzo: I think all of those will help provide additional clarity and a clearer path as we move forward.
Calvin Butler: Carly, what's key about that is that rate-making working group is in its early stages. I think it's indicative of how the commission is showing up, in really taking feedback and making sure this is a collaborative stakeholder process and getting all inputs to continue moving Pennsylvania forward. Pennsylvania's always been a very strong jurisdiction from a regulatory standpoint, and we intend for it to stay that way by partnering with all the stakeholders in this process.
Carly Davenport: Got it. Okay. Appreciate all that context. Super helpful. Maybe just one on the large load outlook. Nice to see the TSA share moving higher this quarter. Looks like a slight reduction in the overall large load pipeline versus last quarter. Anything that you would highlight there as a driver? Just curious if any inflections in conversations with large load customers that you'd highlight as we near sort of the elections here.
Rob Kleczynski: Hi, Carly. This is Rob. What I would say is that the reduction in the cluster study from 25 to 23 gigawatts is our process working. It is continuing to see as we work with the developers and looking at the cluster studies, it is just that things fall out for a variety of reasons, whether it is communities, they do not have an end customer. But what we would say is that it is not indicative of anything particular other than our process of going through and seeing, going through the studies and seeing this work through our process.
Carly Davenport: Got it. Great. Thank you so much for the time.
Calvin Butler: Thank you, Carly.
Operator: Thank you. One moment for our next question. Our last question will come from the line of Nick Amicucci with Evercore ISI. Your line is open. Please go ahead.
Calvin Butler: Morning, Nick.
Nick Amicucci: Hey, good morning, guys. How are you?
Calvin Butler: Good.
Nick Amicucci: I just wanted to clarify too, just on the 11 gigawatts of high probability load. Is any of that reflected in the current plan, and what kind of energization schedule underpins that?
Rob Kleczynski: Yeah, I would say a small amount is reflected in the current plan at this point. As we've always said, until we know that it's high probability and we've secured, then it will ultimately get factored in.
Jeanne Jones: Yeah, in terms of the timeline, I think we have said about 10% or so by 2028, and then as you look out through 2034, I think about three-fourths of that 11 gigs would come online. That sort of speaks to why there is only a portion of the CapEx as you think about when the load ramps up. Then in the 2012 to 2017, I think we have been pretty conservative in the sense that we have only ascribed about $1 billion of continued upside related to high-density load growth. Again, you know us. We are going to give you what is real, what is durable, what is defensible, with some bias to the upside, and I think that that is indicative of what we have shared here too.
Nick Amicucci: Perfect. That makes sense. Thank you. Then, just as we think of the financial flexibility, just, obviously some big numbers on the upside opportunities there. Just how we should be thinking about the financing path going forward?
Rob Kleczynski: Financing standpoint, the way we look at it is we are going to continue to take a balanced approach. As we have disclosed for the $41.7 billion we have in our plan, some of it is covered with cash from operations, debt, but then as we have always said, for our incremental capital opportunities, approximately 40% will be equity.
Carim Khouzami: One thing I would add, this is Kareem. I would just add one thing that on the battery storage projects, the large batteries, we are also pursuing them under build-own-transfer type arrangements. Much of the capital comes near the back end of the construction period. That helps us with kind of shortening the gap between capital being outlaid and before it rolls into rate base.
Nick Amicucci: Perfect. Perfect. All right. Thanks so much, guys.
[Company Representative] (Exelon): Thanks.
[Company Representative] (Exelon): Thank you.
Operator: Thank you. And one moment for our next question, which will come from the line of Jeremy Tonet with JPMorgan Securities. Your line is open. Please go ahead.
Calvin Butler: Hey, Jeremy, you sneak.
Jeremy Tonet: Hi. Good morning.
Calvin Butler: snuck in there, man. Good morning.
Jeremy Tonet: Thanks. Appreciate that. Just one last one, I guess. We are thinking about capital allocation, the plan as we head into the refresh here. Just wondering how you think about, I guess, the different states, different backdrops there, where you see more opportunities, maybe to shift capital in that direction. And was wondering, I guess, maybe on ComEd, seems like there is a little bit of room between yourself and staff in the ALJ recommendations out there. So just wondering how you think about capital allocation at this point.
Rob Kleczynski: Yeah, Jeremy, this is Rob. What I would say is that, as you have seen historically, our capital has gone up from 8% to 10% over the last, just roll forwards. And a majority of that has been in the transmission area. In fact, transmission is growing at 16%. So, I think we would expect that trend to continue going forward. And then with, obviously, additional upside potentially on the storage, as we have talked about.
Calvin Butler: Jeremy, I would tell you, sir, it is where it is going. What I think one of the distinguishing factors about Exelon is the power of our platform, where our ability to shift capital where it is needed and to invest where it is adding the greatest value. We work very closely with all of our stakeholders to understand what they need and where they need it, and really work to lean in to how we get that invested. Rob, you talked about ComEd, but I would even talk about their efforts around their CEJA law. You think about Kareem, what we are doing now in Jersey with the battery, where we are bringing in, we are investing capital and not impacting the customer bills for 5 years until it is up and running.
Calvin Butler: That is what we are looking to do in each and every step along when we are investing in capital across our jurisdictions.
Jeremy Tonet: Got it. That is helpful. I will leave it there. Thank you.
Calvin Butler: Thank you, Jeremy.
Rob Kleczynski: Thank you.
Operator: Thank you. At this time, I would like to turn the conference back over to Calvin Butler for closing remarks.
Calvin Butler: Thank you, Michelle. Let me just begin by saying to everyone, thank you for joining us today. We are delivering on our commitments and building momentum for what is next. I would be remiss if I did not thank you for your continued interest in Exelon, and look forward to seeing many of you, as Rob stated, later at EEI next month. With that, Michelle, that concludes our call.
Operator: Thanks to all of our participants for joining us today. This concludes our presentation. You may now disconnect. Have a great day.
Calvin Butler: Take care.
