Exelon
Exelon Corporation (NASDAQ: EXC) is an American public utility holding company headquartered at 10 South Dearborn Street in Chicago, Illinois.[1] As a Fortune 200 company, it operates six fully regulated transmission and distribution utilities—Atlantic City Electric, Baltimore Gas and Electric (BGE), Commonwealth Edison (ComEd), Delmarva Power, PECO Energy, and Potomac Electric Power Company (Pepco)—serving more than 10.7 million residential, commercial, and industrial customers across Illinois, Pennsylvania, Maryland, Delaware, New Jersey, and the District of Columbia.[2] With approximately 20,000 employees, Exelon focuses on delivering reliable, affordable electricity and natural gas while maintaining top-quartile performance in customer satisfaction, outage reduction, and service restoration.[2] Originally formed in 2000 through the merger of Unicom Corporation (parent of ComEd) and PECO Energy Company, Exelon expanded into competitive energy generation before completing a corporate spin-off of its generation and retail energy business as Constellation Energy Corporation in February 2022.[3][4] This separation allowed Exelon to concentrate solely on its regulated utility operations, divesting assets including the largest fleet of nuclear power plants in the United States, which are now owned by Constellation.[4] The company has been recognized for operational excellence, including industry-leading reliability metrics and investments in grid modernization to support clean energy transitions.[5] Exelon has faced significant scrutiny over a bribery and fraud scheme involving its subsidiary ComEd, which from 2011 to 2019 provided jobs, subcontracts, and payments totaling over $1.3 million to allies of former Illinois House Speaker Michael Madigan to secure favorable legislation, including rate hikes and subsidies.[6] The U.S. Securities and Exchange Commission charged Exelon and ComEd with fraud for failing to disclose the scheme to investors, resulting in a $46.2 million civil penalty in 2023; Madigan and ComEd executives were convicted on federal corruption charges.[6][7] Exelon also agreed to a $173 million shareholder settlement related to the undisclosed conduct.[8] These events underscore challenges in regulatory influence within the energy sector, where utilities have sought policy advantages amid competitive pressures from subsidized renewables and nuclear bailouts.[6]
Corporate Structure
Operating Subsidiaries
Exelon's operating subsidiaries comprise six regulated utilities responsible for the transmission and distribution of electricity and, in select cases, natural gas to over 10.7 million customers across multiple states and the District of Columbia.[9][10] These entities focus on maintaining and upgrading infrastructure to ensure reliable service, with a combined workforce of approximately 20,000 employees dedicated to operations, safety, and grid modernization efforts.[9] Commonwealth Edison Company (ComEd) serves approximately 4 million electric customers in northern Illinois, covering about 70% of the state's population. The utility has invested over $5 billion in system improvements since 2001 to enhance reliability and support economic growth in the Chicago metropolitan area.[9] PECO Energy Company provides electricity to 1.7 million customers and natural gas to 553,000 customers in southeastern Pennsylvania. It emphasizes operational safety, achieving top performance rankings, and engages in community initiatives while managing one of the region's oldest distribution networks.[9] Baltimore Gas and Electric Company (BGE) delivers electricity to 1.3 million customers and natural gas to 700,000 customers in central Maryland, with nearly two centuries of service history. The subsidiary prioritizes innovative programs for energy efficiency and demand response to meet urban and suburban needs around Baltimore.[9] Potomac Electric Power Company (Pepco) supplies electricity to 919,000 customers in the District of Columbia and portions of Maryland. It focuses on grid reliability enhancements and sustainability measures to support high-density urban environments and growing data center loads.[9] Delmarva Power serves 561,500 electric customers and 140,000 natural gas customers across Delaware and the eastern shore of Maryland. The utility integrates advanced technologies and renewable integration strategies to address seasonal demands and coastal vulnerabilities.[9] Atlantic City Electric provides electric service to 572,000 customers in southern New Jersey. It invests in infrastructure upgrades, environmental initiatives, and local philanthropy to bolster resilience against weather events and tourism-driven peak usage.[9]Leadership and Governance
Exelon Corporation's executive leadership is headed by Calvin Butler, who serves as President and Chief Executive Officer, a position he has held since December 30, 2022.[11][12] The senior executive team includes Jeanne Jones as Executive Vice President and Chief Financial Officer; Michael Innocenzo as Executive Vice President and Chief Operating Officer, appointed to the role on February 6, 2024; Colette D. Honorable as Executive Vice President, Chief Legal Officer, and Corporate Secretary; and Sunny Elebua as Senior Vice President and Chief Strategy & Sustainability Officer.[13][14] Subsidiary presidents report to the corporate leadership, including Gil C. Quiniones for ComEd, David M. Vahos for PECO, Tamla Olivier for BGE, and J. Tyler Anthony for Pepco Holdings.[14] The board of directors comprises nine members, with all except the CEO classified as independent under Nasdaq Global Select Market criteria, ensuring a majority-independent structure to oversee strategy, risks, and executive compensation.[15][16] W. Paul Bowers serves as independent Chairman, with other independent directors including Marjorie Rodgers Cheshire (since 2020), Linda Jojo (since 2015), Charisse R. Lillie (since 2023), Anna Richo (since 2023), Matthew Rogers (since 2023), and Bryan Segedi (since 2024); David G. DeWalt joined in 2025.[15] Directors are selected for diverse expertise in areas such as finance, technology, and governance, with mandatory retirement at age 75 and stock ownership requirements to align interests with shareholders.[16] Exelon's governance framework is defined by board-approved Corporate Governance Principles, bylaws, and charters for four standing committees: Audit and Risk, Talent Management and Compensation, Corporate Governance, and Operations, Safety, and Customer Experience, all composed of independent directors.[17][16] The principles emphasize fiduciary duties, annual board evaluations, and flexible leadership structures, including the option for an independent Lead Director if the Chairman is not independent; ethical conduct is enforced through the Code of Business Conduct and mandatory annual training.[16] Committee assignments are based on director skills, with the board retaining authority to adjust memberships.[17]History
Formation and Early Development
Exelon Corporation was formed on October 20, 2000, via the merger of PECO Energy Company and Unicom Corporation, establishing a major utility holding company serving electric and gas customers in the Mid-Atlantic and Midwest regions.[18] PECO Energy traced its origins to the Philadelphia Electric Company, incorporated in 1902 to supply electricity in southeastern Pennsylvania, evolving into a key regional provider with a focus on urban distribution networks.[19] Unicom Corporation, the holding company for Commonwealth Edison—formed in 1907 through the consolidation of Chicago-area utilities by Samuel Insull—operated extensive generation assets, including early adoption of nuclear power in Illinois.[19][3] The $32.7 billion stock-for-stock transaction integrated PECO's regulated delivery operations with Unicom's competitive generation portfolio, positioning Exelon to capitalize on post-deregulation opportunities in wholesale power markets amid the energy sector's shift from monopolistic structures.[18] Headquartered at Chicago's Chase Tower, the new entity initially managed about 5 million electric customers and 1.5 million gas customers, with a combined generating capacity exceeding 30,000 megawatts, predominantly nuclear and fossil fuel-based.[20] In the immediate post-merger phase, Exelon implemented a restructuring effective January 1, 2001, to segregate regulated transmission and distribution from merchant generation functions, complying with federal and state utility regulations.[21] Exelon Generation Company, LLC, established in 2000 as a subsidiary, assumed control of non-rate-regulated power plants, enabling focused investment in nuclear fleet reliability and efficiency upgrades during a period of market volatility.[22] This separation supported Exelon's early strategy of leveraging Pennsylvania's 1996 deregulation for competitive retail services while maintaining monopoly status in delivery infrastructure.[18]Major Mergers and Expansions
Exelon Corporation was formed on October 24, 2000, through the merger of PECO Energy Company and Unicom Corporation, the parent of Commonwealth Edison (ComEd).[23][3] The transaction, valued at approximately $9.77 billion, combined PECO's operations in Pennsylvania with ComEd's in Illinois, creating one of the largest U.S. electric utilities with over $12 billion in annual revenues and serving about 5 million customers across two major metropolitan areas.[24][23] This merger positioned Exelon for growth in a deregulated energy market, emphasizing transmission, distribution, and competitive generation services.[19] In 2011, Exelon announced its acquisition of Constellation Energy Group on April 28 for $7.9 billion in cash and stock, equivalent to $38.59 per share.[25] The deal closed on March 12, 2012, after regulatory approvals including divestitures of three fossil fuel plants mandated by the U.S. Department of Justice to preserve competition.[26][27] This expanded Exelon's generation portfolio to include Constellation's nuclear, renewable, and competitive energy assets, making the combined entity the largest U.S. power utility by capacity with over 32,000 megawatts and serving 7.7 million customers.[28] Exelon further grew through its $6.8 billion acquisition of Pepco Holdings Inc., announced on April 30, 2014, and completed on March 23, 2016, following multi-year regulatory reviews and conditions such as bill credits and grid investments.[29][30] The merger integrated Pepco's utilities—serving 2 million customers in Washington, D.C., Maryland, and Delaware—with Exelon's existing operations, enhancing geographic scale in the Mid-Atlantic region and adding regulated transmission and distribution infrastructure valued at billions in assets.[29] This transaction solidified Exelon's focus on regulated utility services amid the spin-off of its competitive generation business.[31]Spin-off of Generation Assets
In February 2021, Exelon Corporation announced its intention to separate its competitive energy businesses—encompassing power generation and retail energy supply—into a standalone publicly traded company, subsequently named Constellation Energy Corporation, to allow each entity to pursue distinct strategic priorities.[32] The separation aimed to enable Exelon to concentrate on its regulated utility operations, including electricity transmission and distribution, while Constellation would manage the generation portfolio, which included the largest fleet of nuclear power plants in the United States, along with hydroelectric, wind, solar, and natural gas assets totaling approximately 32,400 megawatts of capacity.[33] This move was positioned as a response to differing regulatory environments and market dynamics, with regulated utilities benefiting from stable returns and generation businesses exposed to competitive wholesale markets and clean energy transitions.[34] The transaction required approvals from multiple regulatory bodies, including the Federal Energy Regulatory Commission (FERC), the Nuclear Regulatory Commission (NRC), and the New York Public Service Commission (NYPSC), due to the interstate nature of energy markets and nuclear operations.[32] FERC authorized the spin-off in December 2021, confirming it would not adversely affect competition or rates, while the NRC approved the transfer of licenses for nuclear facilities.[35] The process involved a tax-free distribution to Exelon shareholders, structured as a pro-rata spin-off where eligible holders received one share of Constellation common stock for every three shares of Exelon stock owned as of the record date.[36] Exelon completed the separation on February 1, 2022, with Constellation shares beginning to trade on the Nasdaq under the ticker "CEG" the following day.[4] Post-spin-off, Constellation operated independently with a market capitalization exceeding $30 billion at launch and committed to an initial annual dividend of $0.55 per share, supported by its generation assets' cash flows.[33] Exelon, retaining its focus on utilities serving over 10 million customers across six states, reported streamlined operations without the volatility of merchant generation, though it faced ongoing capital needs for grid infrastructure.[4] The spin-off was deemed tax-free for U.S. federal income tax purposes for most shareholders, barring specific exceptions like excessive ownership concentrations.[36]Recent Strategic Shifts
Following the 2022 spin-off of its competitive generation assets to Constellation Energy Corporation, Exelon repositioned itself as a pure-play transmission and distribution (T&D) utility holding company, emphasizing regulated infrastructure investments to enhance grid reliability and support electrification trends.[37][38] This shift allowed Exelon to prioritize stable, rate-regulated operations across its subsidiaries—ComEd, PECO, BGE, Pepco, Delmarva Power, and Atlantic City Electric—serving approximately 10 million customers in Illinois, Pennsylvania, Maryland, Delaware, New Jersey, and the District of Columbia, without exposure to volatile wholesale power markets.[39] A core element of this strategy has been a $38 billion capital expenditure plan from 2024 through 2028, targeted at grid modernization to accommodate surging electricity demand from data centers, artificial intelligence infrastructure, electric vehicles, and renewable energy integration.[40][41] These investments include upgrading transmission lines, substations, and distribution networks to improve resilience against extreme weather and enable faster connections for large-load customers, with projected rate-base growth of 7.4% annually driving EBITDA expansion.[40] Exelon has secured regulatory approvals in multiple jurisdictions to recover these costs through rate cases, underscoring a focus on proactive infrastructure funding amid federal incentives like the Inflation Reduction Act.[42] In parallel, Exelon has advanced sustainability initiatives within its T&D operations, investing in methane leak detection and reduction technologies for natural gas distribution systems and electrifying fleet vehicles to lower Scope 1 and 2 greenhouse gas emissions.[43] The company reported progress in 2023 toward these goals, including enhanced transmission system reliability metrics, while maintaining affordability for customers during the energy transition through partnerships with stakeholders and cost-conscious planning.[44][45] Financially, Exelon has reaffirmed long-term earnings growth targets of 5-7% compounded annual EPS from 2024 to 2028, supported by disciplined capital allocation and a $2.5 billion at-the-market equity program initiated in May 2025 to optimize its balance sheet.[46][47] As of August 2025, executives indicated potential exploration of re-entering power generation development after a three-year hiatus post-spin-off, though no firm commitments have been announced, reflecting evolving opportunities in clean energy infrastructure.[48]Business Operations
Transmission and Distribution Infrastructure
Exelon's transmission and distribution infrastructure encompasses the assets of its six regulated utility subsidiaries—Atlantic City Electric (New Jersey), Baltimore Gas and Electric (BGE, Maryland), Commonwealth Edison (ComEd, Illinois), Delmarva Power (Delaware and Maryland), PECO Energy (Pennsylvania), and Pepco (District of Columbia and Maryland)—which collectively deliver electricity and natural gas across the Mid-Atlantic and Midwest.[9] These networks form part of the PJM Interconnection, a regional transmission organization overseeing grid operations in 13 states and the District of Columbia.[49] The electric transmission system includes approximately 11,000 miles of high-voltage lines, designed to transport bulk power over long distances at voltages typically ranging from 69 kV to 765 kV, ensuring reliability and integration with generation sources.[50] Distribution infrastructure extends this to end-users via over 153,000 miles of lower-voltage lines (generally 4 kV to 34.5 kV), supported by thousands of substations for voltage transformation and load balancing.[51] For instance, ComEd operates about 90,000 miles of power lines (combining transmission and distribution) and 1,300 substations across northern Illinois.[52] PECO maintains roughly 30,500 miles of electric lines, while BGE manages more than 25,000 circuit miles of distribution lines and nearly 1,300 miles of transmission.[53] Natural gas distribution, handled by subsidiaries like BGE, PECO, and Delmarva Power, includes thousands of miles of mains and service lines; for example, PECO oversees more than 13,400 miles of gas distribution infrastructure. These assets prioritize resilience against weather events and cyber threats, with ongoing investments totaling $7.6 billion in 2024 for upgrades such as advanced metering, undergrounding lines, and smart grid technologies to minimize outages and support growing electrification demands.[51] Cumulative planned capital expenditures of $38 billion from 2025 to 2028 further emphasize hardening transmission towers, replacing aging distribution conductors, and expanding capacity for data centers and renewables integration.[51]Service Territories and Customer Base
Exelon's regulated utilities deliver electricity and natural gas to over 10.7 million customers across primarily urban and suburban service territories in Delaware, the District of Columbia, Illinois, Maryland, New Jersey, and Pennsylvania.[2] These areas include high-density metropolitan hubs such as Chicago, Philadelphia, Baltimore, and Washington, D.C., where the company maintains extensive transmission and distribution infrastructure to support reliable energy access amid growing electrification demands.[54] Following the 2022 spin-off of its generation business to Constellation Energy, Exelon's operations emphasize regulated delivery services, with customer bases comprising residential, commercial, and industrial users in these jurisdictions.[4] The six operating utilities each serve distinct regional footprints:| Utility | Primary Service Area | Electric Customers (approx.) | Natural Gas Customers (approx.) |
|---|---|---|---|
| ComEd | Northern Illinois | 4 million | N/A |
| PECO | Southeastern Pennsylvania | 1.7 million | 553,000 |
| BGE | Central Maryland | 1.25 million | 650,000 |
| Delmarva Power | Delaware & Eastern Maryland | 561,500 | 140,000 |
| Pepco | DC & Southern Maryland | 842,000 | N/A |
| Atlantic City Electric | Southern/Central New Jersey | 545,000 | N/A |
Grid Modernization and Investments
Exelon's operating subsidiaries have prioritized grid modernization through substantial capital investments aimed at enhancing reliability, resilience, and capacity to integrate distributed energy resources, electric vehicles, and emerging loads such as data centers. The company outlined a $38 billion capital expenditure plan for its regulated utilities from 2025 to 2028, marking a 10% increase over the prior four-year forecast, with funds allocated primarily to transmission and distribution upgrades, substation reinforcements, and advanced metering infrastructure to address aging assets and rising demand.[59][60] These efforts have yielded measurable improvements in system performance, including approximately a 40% enhancement in reliability indices such as the System Average Interruption Duration Index (SAIDI) and System Average Interruption Frequency Index (SAIFI) across service territories.[61] In 2024, Exelon invested $7.1 billion in grid-related projects, focusing on transmission expansions and hardening infrastructure against extreme weather events.[41] Subsidiaries like ComEd and PECO have driven specific initiatives, including ComEd's $50 million allocation from federal grants to pilot next-generation technologies for equitable clean energy deployment and grid orchestration.[62] Transmission investments have accelerated in response to hyperscale data center growth, with Exelon's interconnection queue doubling to 36 gigawatts since late 2024, prompting up to $15 billion in additional spending outside the base plan to build new lines and interconnect projects in PJM Interconnection markets.[63] Baltimore Gas and Electric (BGE), PECO, and others are incorporating smart grid elements, such as advanced sensors and automation, to reduce outage durations and support renewable penetration, aligning with Exelon's operational emissions reduction target of 50% by 2030 from a 2015 baseline.[64] Complementary programs include partnerships with startups via in-kind services and funding for scalable solutions in decarbonization and demand response, fostering innovation without direct ownership of generation assets.[65] Regulatory approvals for these expenditures, often recovered through rate cases, ensure alignment with public utility commissions' reliability mandates while minimizing cost burdens on customers.[66]Financial Performance
Revenue and Earnings Trends
Exelon's revenue has exhibited consistent growth since the 2022 spin-off of its competitive generation business to Constellation Energy, reflecting a focus on stable, regulated transmission and distribution operations across its utilities. Annual revenue increased from $17.938 billion in 2021 to $23.028 billion in 2024, a compound annual growth rate of approximately 8.7%, primarily driven by rate base expansions, customer growth, and investments in grid infrastructure.[67][68] Net income followed a similar upward trajectory, rising from $1.706 billion in 2021 to $2.460 billion in 2024, supported by operational efficiencies and favorable regulatory outcomes despite weather variability and higher operating costs.[67][69] This growth outpaced the broader electric utilities sector average, with earnings expanding at an average annual rate of about 8.2% over the period.[70]| Year | Revenue ($B) | YoY Growth (%) | Net Income ($B) | YoY Growth (%) |
|---|---|---|---|---|
| 2021 | 17.938 | - | 1.706 | - |
| 2022 | 19.078 | 6.4 | 2.170 | 27.1 |
| 2023 | 21.727 | 13.9 | 2.328 | 7.3 |
| 2024 | 23.028 | 6.0 | 2.460 | 5.7 |