Dive Brief:
- Exelon’s first-quarter earnings dropped to $481 million, or $0.49 per share, compared to $525 million, or $0.53 per share, in the year-ago quarter, the company said Monday. Part of the drop was attributed to the cost of spinning off the generation side of its business, completed Feb. 1.
- "The transition has really unlocked significant value for our shareholders," President and CEO Chris Crane said during Exelon's earnings call on Monday. From the time of the separation announcement a year ago through mid-April of this year, the total shareholder return was 76%, he noted.
- Exelon’s utilities are working to cut carbon emissions 50% by 2030 with grid investments and support for many more electric vehicles, Crane said during the call. Company officials touted the investments as good for the environment, customers and Exelon’s balance sheet.
Dive Insight:
Slimming down its operations to improve the bottom line by focusing on transmission and distribution and separating out its generation assets had a small impact on Exelon’s net income in the first quarter of 2022. The change lowered first-quarter earnings by $0.02 per share, according to Exelon.
Crane called the spinning off of Exelon's nuclear power and other generation assets a “milestone,” which allows it to embark on a “path as the nation’s premier transmission and distribution utility company.” After it was completed in February, he said the move puts the company “in a strong position to serve customer needs, drive growth and social equity in the communities we serve, and deliver sustainable value as our industry continues to evolve.”
Company officials also touted efforts to advance clean energy and earnings, including its signing on to the Department of Energy’s voluntary Better Climate Challenge earlier this year to cut emissions from operations at least in half by 2030. Crane also pointed to Commonwealth Edison’s work to promote Illinois’ 2021 Clean Energy Jobs Act to support clean energy and social equity.
To help advance the energy transition, Exelon utilities are preparing for the number of electric vehicles on the roads across their territories to increase to 4.2 million over the next 25 years. That represents a twenty-fold increase relative to the number of EVs at the end of last year, Exelon CFO Joe Nigro said during Monday's Q1 earnings call.
EVs not only help reduce climate pollution they also are good for ratepayers’ pocketbooks, Exelon officials said.
“On average, customers in Exelon service territories could save more than $1,000 per year in fuel cost by switching to an EV,” Nigro said. Customers on a time-of-use rate could save an additional 11%, he said.
Grid decarbonization efforts will require significant investments, Nigro added. Exelon plans to make $29 billion in capital investments over the next 4 years, projecting annual growth of 6% to 8% in operating earnings through 2025.
