Exelon EXC

NASDAQ EXC

$40.73 +0.26 (+0.64%)

At close: Oct 2, 2026 · 4:00 PM EDT

Key Stats

Market Cap42.03 Bn

P/E15.00

P/S1.66

Div. Yield4.08

Total Debt (Qtr)52.28 Bn

Revenue Growth (1y) (Qtr)9.95

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About

Exelon Corporation is a utility services holding company engaged in the energy transmission and distribution businesses through its subsidiaries. The company owns and operates regulated electric and natural gas distribution utilities serving millions of customers across multiple states. Its core activities involve purchasing and delivering electricity and natural gas to retail customers within defined service territories while earning a regulated return on infrastructure…

Exelon generates revenue primarily through the regulated sale and distribution of electricity and natural gas to end-use customers. The Utility Registrants recover reasonable costs associated with service delivery and earn a return on capital expenditures via commission-approved rate mechanisms. Revenue streams are stabilized by decoupling mechanisms in certain jurisdictions that insulate earnings from fluctuations in delivery volumes caused by weather or usage patterns.

The company operates through the following segments: ComEd, PECO, BGE, Pepco, DPL, and ACE.

ComEd: This segment provides purchase and regulated retail sale of electricity and transmission and distribution of electricity to retail customers in northern Illinois, including the City of Chicago. ComEd serves approximately 4.2 million electric customers across 11,450 square miles of service territory. The utility operates under the regulatory oversight of the Illinois Commerce Commission and maintains infrastructure critical to serving one of the largest metropolitan areas in the United States.
PECO: This segment handles the purchase and regulated retail sale of electricity and natural gas, along with transmission and distribution of both commodities to retail customers in southeastern Pennsylvania, including the City of Philadelphia. PECO serves 1.7 million electric customers and 0.6 million natural gas customers across a combined service territory of 2,100 square miles. The utility is regulated by the Pennsylvania Public Utility Commission and provides essential energy services to a densely populated urban corridor.
BGE: This segment delivers purchase and regulated retail sale of electricity and natural gas, plus transmission and distribution of both to retail customers in central Maryland, including the City of Baltimore. BGE serves 1.4 million electric customers and 0.7 million natural gas customers across 3,250 square miles of service territory. The utility operates under the Maryland Public Service Commission and is a key provider of dual-fuel services in the Baltimore region.
Pepco: This segment focuses on the purchase and regulated retail sale of electricity and transmission and distribution of electricity to retail customers in the District of Columbia and major portions of Montgomery and Prince George’s Counties, Maryland. Pepco serves 1.0 million electric customers across 650 square miles of service territory. The utility is regulated by the District of Columbia Public Service Commission and the Maryland Public Service Commission, reflecting its bi-jurisdictional service area.
DPL: This segment provides purchase and regulated retail sale of electricity and natural gas, along with transmission and distribution of both to retail customers in portions of Delaware and Maryland for electricity, and portions of New Castle County, Delaware for natural gas. DPL serves 0.6 million electric customers and 0.1 million natural gas customers across 5,400 square miles of service territory. The utility is regulated by the Delaware Public Service Commission and the Maryland Public Service Commission, supporting energy delivery across the Delmarva Peninsula.
ACE: This segment manages the purchase and regulated retail sale of electricity and transmission and distribution of electricity to retail customers in portions of southern New Jersey. ACE serves 0.6 million electric customers across 2,700 square miles of service territory. The utility operates under the New Jersey Board of Public Utilities and is the primary electricity distributor for Atlantic City and surrounding coastal communities.

Exelon holds a dominant position as one of the largest regulated utility operators in the United States, serving approximately 10 million electric and gas customers collectively. The company competes with other major investor-owned utilities such as Duke Energy, NextEra Energy, and Southern Company, though its competitive advantage lies in its geographic concentration in high-density, economically significant regions like Chicago, Philadelphia, and Baltimore. Exelon benefits from scale, operational standardization across its subsidiaries, and a constructive regulatory environment that allows for timely cost recovery and infrastructure investment.

Exelon serves a diverse customer base consisting of residential, commercial, and industrial end-users across its service territories. Specific customer segments include households, municipal governments, public institutions, manufacturing facilities, and large commercial enterprises such as data centers and office complexes. The company provides universal service obligation delivery to all customers within its franchised areas, regardless of whether they source energy competitively or through default supply arrangements.

Investment Thesis

▲ Bull case

Exelon Corporation is positioned to capitalize on the accelerating demand for transmission infrastructure driven by data center expansion and renewable energy integration, with competitive bids totaling approximately $1.9 billion in MISO Tranche 2.1 representing a significant near-term catalyst that management did not fully emphasize. The company’s scale, multistate footprint, and deep operational expertise allow it to deploy capital where RTOs have identified clear need, strong execution visibility, and attractive risk-adjusted returns, particularly as load growth and system complexity continue to accelerate. This is reinforced by the revised four-year capital plan reflecting $1.5 billion of incremental transmission investment to support data center interconnections via Transmission Security Agreements, which have secured approximately $1 billion of collateral, providing a predictable revenue stream with minimal execution risk. The market is underestimating the structural shift toward transmission as a growth engine, especially given the company’s ability to maintain a revised annualized rate base growth of 7.9% over the next four years despite distribution project deferrals, with transmission rate base anticipated to grow at 16% through 2029—far outpacing the overall regulated asset base growth and signaling a strategic pivot toward higher-margin, federally regulated infrastructure.
Exelon Corporation’s disciplined cost management initiatives, including the $350 million of incremental O&M savings targeted for 2027 and the broader goal of no more than 2% adjusted O&M growth through 2029, are creating sustainable efficiency gains that are not being fully appreciated by investors focused solely on headline earnings. These savings are being driven by concrete actions such as accelerating AI and technology transformation, prioritizing high-impact IT projects, reducing outside contractor use, implementing a managed hiring process, and offering a targeted voluntary separation program—all of which are designed to be structural rather than temporary. The company has already demonstrated its ability to keep expense growth nearly flat from 2024 to 2026 despite inflationary pressures, and the commitment to managing the portfolio as one entity allows for cross-utility synergies and best practice sharing that amplify the impact of these initiatives. This operational discipline, combined with a balanced funding strategy targeting approximately 14% credit metrics at Moody’s and S&P, provides a durable foundation for earnings growth that exceeds the current guidance range, particularly as the company leverages its size and scale to absorb cost pressures while maintaining investment in critical grid modernization.
Exelon Corporation’s proactive approach to customer affordability through programs like the ComEd Energy Efficiency Program—which has delivered over $13 billion in lifetime bill savings and recently won the Stars of Energy Efficiency award—is creating a powerful competitive advantage that is underpriced in the stock. The program’s impact extends beyond immediate cost relief, as it has saved customers enough electricity to power 12 million ComEd homes for one year and avoided 77 billion pounds of CO2 emissions, directly supporting the state’s clean energy goals under CEJA while enhancing customer loyalty and reducing churn. In Illinois alone, ComEd delivered $95 million in incentives to income-eligible customers in 2025, resulting in an estimated $62.9 million in lifetime bill savings, and the company’s Smart Assistance Manager and bill assistance programs are connecting hundreds of thousands of customers to relief, with the new Low-Income Discount program already saving over $29 million in Q1 2026. This customer-centric strategy not only mitigates regulatory risk by aligning with state affordability goals but also strengthens the social license to operate, enabling smoother approval of future infrastructure investments and positioning Exelon as a trusted partner in the energy transition—an intangible asset that traditional financial models fail to capture but that drives long-term value creation.

Exelon Corporation is positioned to capitalize on the accelerating demand for transmission infrastructure driven by data center expansion and renewable energy integration, with competitive bids totaling approximately $1.9 billion in MISO Tranche 2.1 representing a significant near-term catalyst that management did not fully emphasize. The company’s scale, multistate footprint, and deep operational expertise allow it to deploy capital where RTOs have identified clear need, strong execution visibility, and attractive risk-adjusted returns, particularly as load growth and system complexity continue to accelerate. This is reinforced by the revised four-year capital plan reflecting $1.5 billion of incremental transmission investment to support data center interconnections via Transmission Security Agreements, which have secured approximately $1 billion of collateral, providing a predictable revenue stream with minimal execution risk. The market is underestimating the structural shift toward transmission as a growth engine, especially given the company’s ability to maintain a revised annualized rate base growth of 7.9% over the next four years despite distribution project deferrals, with transmission rate base anticipated to grow at 16% through 2029—far outpacing the overall regulated asset base growth and signaling a strategic pivot toward higher-margin, federally regulated infrastructure.
Exelon Corporation’s disciplined cost management initiatives, including the $350 million of incremental O&M savings targeted for 2027 and the broader goal of no more than 2% adjusted O&M growth through 2029, are creating sustainable efficiency gains that are not being fully appreciated by investors focused solely on headline earnings. These savings are being driven by concrete actions such as accelerating AI and technology transformation, prioritizing high-impact IT projects, reducing outside contractor use, implementing a managed hiring process, and offering a targeted voluntary separation program—all of which are designed to be structural rather than temporary. The company has already demonstrated its ability to keep expense growth nearly flat from 2024 to 2026 despite inflationary pressures, and the commitment to managing the portfolio as one entity allows for cross-utility synergies and best practice sharing that amplify the impact of these initiatives. This operational discipline, combined with a balanced funding strategy targeting approximately 14% credit metrics at Moody’s and S&P, provides a durable foundation for earnings growth that exceeds the current guidance range, particularly as the company leverages its size and scale to absorb cost pressures while maintaining investment in critical grid modernization.
Exelon Corporation’s proactive approach to customer affordability through programs like the ComEd Energy Efficiency Program—which has delivered over $13 billion in lifetime bill savings and recently won the Stars of Energy Efficiency award—is creating a powerful competitive advantage that is underpriced in the stock. The program’s impact extends beyond immediate cost relief, as it has saved customers enough electricity to power 12 million ComEd homes for one year and avoided 77 billion pounds of CO2 emissions, directly supporting the state’s clean energy goals under CEJA while enhancing customer loyalty and reducing churn. In Illinois alone, ComEd delivered $95 million in incentives to income-eligible customers in 2025, resulting in an estimated $62.9 million in lifetime bill savings, and the company’s Smart Assistance Manager and bill assistance programs are connecting hundreds of thousands of customers to relief, with the new Low-Income Discount program already saving over $29 million in Q1 2026. This customer-centric strategy not only mitigates regulatory risk by aligning with state affordability goals but also strengthens the social license to operate, enabling smoother approval of future infrastructure investments and positioning Exelon as a trusted partner in the energy transition—an intangible asset that traditional financial models fail to capture but that drives long-term value creation.

▼ Bear case

Exelon Corporation faces significant and underappreciated risk from the persistent structural imbalance between energy demand and supply in the PJM region, which management acknowledged but did not quantify in terms of near-term financial impact, despite warning that customers have paid $32 billion to generators for capacity over the last two years while supply declined by 1.2 gigawatts—meaning they paid more and received less. The company’s reliance on advocacy for new generation, including utility-owned solutions, remains constrained by regulatory and market barriers, as evidenced by the withdrawal of the PICO rate case in Pennsylvania and the acknowledgment that addressing affordability without tackling the supply stack is insufficient. With PJM warning of 2028 reliability risks since 2024 and minimal progress on new supply coming online despite an interconnection queue of over 800 projects (only 19% of which typically reach operation), the company’s earnings growth outlook is vulnerable to continued capacity price escalation and potential outage costs, which could erode customer affordability gains and trigger regulatory pushback, particularly in states like Maryland where the Utility Relief Act does not address supply constraints and residential supply costs have increased by up to 80% over five years.
Exelon Corporation’s strategic pivot toward transmission investment, while presented as a disciplined response to load growth, carries hidden execution and regulatory risks that are not being adequately stressed, particularly regarding the $1.9 billion in competitive MISO Tranche 2.1 bids with Invenergy, which remain uncertain in outcome and could result in stranded capital if not awarded. The company’s increased focus on transmission comes at the expense of distribution investments, as seen in the $1.1 billion of project deferrals and reductions in PICO and BGE distribution, which may compromise long-term system resilience and customer satisfaction in critical service territories despite claims of maintaining safety and reliability. Furthermore, the revised capital plan’s reliance on $3.4 billion of equity funding—representing less than 2% of annual market cap but still requiring successful execution of forward contracts under the ATM—could face headwinds if investor sentiment shifts or if the company’s credit metrics come under pressure from rising interest rates, especially given that PHI was already on negative outlook and under review for downgrade, and the combination of continuing to invest in a challenging regulatory climate may strain the portfolio’s ability to maintain the targeted 14% credit metric cushion over the planning period.
Exelon Corporation’s ability to sustain its adjusted operating earnings growth outlook near the top end of the 5% to 7% range through 2029 is increasingly doubtful due to mounting pressure on O&M savings initiatives, which may prove less sustainable than claimed, particularly as the $350 million in 2027 savings are largely derived from not pursuing certain projects—meaning these savings are contingent on maintaining a reduced investment trajectory that could conflict with future reliability needs or regulatory expectations. The company’s acknowledgment that “certain op codes will need to make deeper provisions because if you are not investing, you must adjust” suggests that the cost savings may require operational trade-offs that could undermine service quality over time, and the reliance on initiatives like AI transformation, managed hiring, and voluntary separation programs introduces execution risk and potential workforce disruption, especially in a union-heavy utility environment. Additionally, the company’s dependence on favorable weather and timing-related items to beat earnings expectations in Q1 2026—where adjusted operating earnings of $0.91 per share were driven primarily by net favorable weather and timing-related items—highlights the fragility of its current performance, as normalizing these factors could quickly erode the earnings beat and call into question the durability of the underlying business momentum.

Exelon Corporation faces significant and underappreciated risk from the persistent structural imbalance between energy demand and supply in the PJM region, which management acknowledged but did not quantify in terms of near-term financial impact, despite warning that customers have paid $32 billion to generators for capacity over the last two years while supply declined by 1.2 gigawatts—meaning they paid more and received less. The company’s reliance on advocacy for new generation, including utility-owned solutions, remains constrained by regulatory and market barriers, as evidenced by the withdrawal of the PICO rate case in Pennsylvania and the acknowledgment that addressing affordability without tackling the supply stack is insufficient. With PJM warning of 2028 reliability risks since 2024 and minimal progress on new supply coming online despite an interconnection queue of over 800 projects (only 19% of which typically reach operation), the company’s earnings growth outlook is vulnerable to continued capacity price escalation and potential outage costs, which could erode customer affordability gains and trigger regulatory pushback, particularly in states like Maryland where the Utility Relief Act does not address supply constraints and residential supply costs have increased by up to 80% over five years.
Exelon Corporation’s strategic pivot toward transmission investment, while presented as a disciplined response to load growth, carries hidden execution and regulatory risks that are not being adequately stressed, particularly regarding the $1.9 billion in competitive MISO Tranche 2.1 bids with Invenergy, which remain uncertain in outcome and could result in stranded capital if not awarded. The company’s increased focus on transmission comes at the expense of distribution investments, as seen in the $1.1 billion of project deferrals and reductions in PICO and BGE distribution, which may compromise long-term system resilience and customer satisfaction in critical service territories despite claims of maintaining safety and reliability. Furthermore, the revised capital plan’s reliance on $3.4 billion of equity funding—representing less than 2% of annual market cap but still requiring successful execution of forward contracts under the ATM—could face headwinds if investor sentiment shifts or if the company’s credit metrics come under pressure from rising interest rates, especially given that PHI was already on negative outlook and under review for downgrade, and the combination of continuing to invest in a challenging regulatory climate may strain the portfolio’s ability to maintain the targeted 14% credit metric cushion over the planning period.
Exelon Corporation’s ability to sustain its adjusted operating earnings growth outlook near the top end of the 5% to 7% range through 2029 is increasingly doubtful due to mounting pressure on O&M savings initiatives, which may prove less sustainable than claimed, particularly as the $350 million in 2027 savings are largely derived from not pursuing certain projects—meaning these savings are contingent on maintaining a reduced investment trajectory that could conflict with future reliability needs or regulatory expectations. The company’s acknowledgment that “certain op codes will need to make deeper provisions because if you are not investing, you must adjust” suggests that the cost savings may require operational trade-offs that could undermine service quality over time, and the reliance on initiatives like AI transformation, managed hiring, and voluntary separation programs introduces execution risk and potential workforce disruption, especially in a union-heavy utility environment. Additionally, the company’s dependence on favorable weather and timing-related items to beat earnings expectations in Q1 2026—where adjusted operating earnings of $0.91 per share were driven primarily by net favorable weather and timing-related items—highlights the fragility of its current performance, as normalizing these factors could quickly erode the earnings beat and call into question the durability of the underlying business momentum.

Peer group

Peer Comparison

Companies in the Regulated Electric Utilities

View all peers

S.No.	Ticker	Company	Market Cap	P/E	P/S	Total Debt (Qtr)
1	ENIC	Enel Chile S.A.	287.73 Bn	217.32	24.79	-
2	NEE	Nextera Energy Inc	160.25 Bn	17.21	5.58	108.46 Bn
3	SO	Southern Co	96.31 Bn	20.44	3.19	75.58 Bn
4	DUK	Duke Energy CORP	88.79 Bn	17.47	2.68	90.25 Bn
5	NGG	National Grid Plc	79.16 Bn	16.82	3.34	-6.27 Bn
6	AEP	American Electric Power Co Inc	65.09 Bn	23.56	2.86	52.84 Bn
7	D	Dominion Energy, Inc	53.95 Bn	21.28	2.98	53.22 Bn
8	EXC	Exelon Corp	42.03 Bn	15.00	1.66	52.28 Bn

Exelon EXC

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