Adverse legislative or regulatory action
Utility earnings depend on recovering costs and earning allowed returns under state and federal regulation.
- Scope
- All registrants
- Materiality
- high
Exelon Corporation
Exelon Corp is a U.S. utility holding company that owns regulated electric and gas distribution businesses and electric transmission assets through ComEd, PECO, BGE, Pepco, DPL, and ACE. Its business is centered on delivering electricity and natural gas to customers in dense Mid-Atlantic and Midwest service territories while investing in grid modernization, reliability, and clean-energy transition initiatives.
33,8 %
11,4 %
+5,3 %
0.92
0.92
| % | |
|---|---|
| Electric distribution and retail service | 55% Purchase, transmission, and regulated retail sale of electricity to residential, commercial, and industrial customers. |
| Natural gas distribution | 15% Regulated purchase and distribution of natural gas to retail customers in selected service territories. |
| Electric transmission | 20% High-voltage transmission assets and formula-rate transmission revenue tied to capital investment and load. |
| Utility infrastructure modernization | 10% Rate-base investments in smart grid, reliability, resiliency, and storm hardening projects. |
Exelon serves end users of regulated utility services: households, small businesses, large commercial and industrial...
- Residential customersprimary
Households across Exelon's service territories buy regulated electricity and, in some areas, natural gas for essential daily use and bill stability.
- Commercial and industrial customersprimary
Businesses and industrial users buy delivery and supply services for dependable power, capacity, and service quality.
- Public authorities and transportation customerssecondary
Government entities and electric railroads buy utility service where reliability and infrastructure access are critical.
- Utility regulators and ratepayersprimary
Regulators do not buy services directly, but they determine allowed returns, cost recovery, and investment timing that shape demand and earnings.
Exelon operates almost entirely in the United States, with regulated service territories concentrated in Northern...
- •Operations are concentrated in the U.S. Mid-Atlantic and Midwest
- •ComEd serves Northern Illinois, including the City of Chicago
- •PECO serves Southeastern Pennsylvania and Philadelphia-area gas customers
- •BGE serves Central Maryland, including Baltimore
- •Pepco, DPL, and ACE cover DC, Delaware, Maryland, and South Jersey
Exelon’s strategy is to improve reliability and operations, enhance the customer experience, and advance clean and...
01
Expand regulated rate base through infrastructure investmentmedium-term
Higher rate base supports future regulated earnings and helps fund reliability and modernization needs.
02
Improve reliability, resiliency, and safetyshort-term
A stronger grid reduces outage risk, supports customer satisfaction, and helps justify regulatory recovery.
03
Advance clean-energy transition supportlong-term
Exelon operates in jurisdictions with aggressive clean-energy targets and needs to enable customer decarbonization while maintaining affordability.
Exelon’s earnings depend heavily on regulation, cost recovery, and allowed returns, so adverse legislative or...
Cybersecurity and physical security incidents
Grid and utility operations rely on interconnected IT and operational technology that can be targeted by attackers.
- Scope
- All registrants
- Materiality
- high
Extreme weather and natural disasters
Storms, wildfires, and other events can damage infrastructure, interrupt service, and increase restoration costs.
- Scope
- Service territories in the Midwest and Mid-Atlantic
- Materiality
- high
Goodwill impairment
Valuation depends on projected cash flows, discount rates, and regulatory outcomes, which can change materially.
- Scope
- Exelon, ComEd, and PHI
- Materiality
- medium
Regulatory accounting
Affects reported earnings, regulatory assets/liabilities, and comparability across quarters
Revenue decoupling and formula rates
Can smooth revenue but cause true-ups and quarter-to-quarter variation
Goodwill impairment
Could create non-cash charges if regulatory or market assumptions weaken
Long-lived asset impairment
Potential non-cash write-downs if expected recovery changes
: 11/08/2026