Exelon Corporation (NASDAQ:EXC) Q2 2023 Earnings Call Transcript

Carly Davenport: Got it. That’s helpful. Thank you. And then just on the corporate minimum tax. I know you mentioned expecting to at least get kind of preliminary clarity there by the end of this year. But is there any color that you can share maybe from your discussions around the temperature on the tax repairs deduction and getting the gating factors to that being included?

Jeanne Jones: I would just say there is – it’s probably not much else to share. There are ongoing discussions. Their stakeholders remain receptive to the discussion and to the technical differences that the utility industry faces in being a very capital-intensive utility and some of the regulatory accounting that will release that capital-intensive nature of our industry. So, receptive discussions ongoing. And I did mention earlier in the script, we did see some guidance come out in June that basically said, hey, if you think you are subject to this tax, you won’t be penalized if you don’t pay it this year. We understand there is more sort of guidance and interpretation needed. And so that was just one other data point. But just ongoing discussions and we remain hopeful that we will have more clarity by the end of the year.

Carly Davenport: Awesome. Appreciate that. Thank you.

Operator: Thank you. [Operator Instructions] Our next question comes from the line of Durgesh Chopra from Evercore ISI.

Durgesh Chopra: Hey guys. Good morning. We are close to the hour here. Thanks for giving me time.

Jeanne Jones: Good morning.

Calvin Butler: Good morning.

Durgesh Chopra: Good morning Calvin. Good morning Jeanne. So, I just want to go back to the ComEd rate case real quick. And some of us were expecting an update from staff on the ROE calculation and the output itself. It seems like they are kind of using the same methodology and using rates as of last year. Just how do you see that progressing? Any thoughts there would be appreciated. Thank you.

Jeanne Jones: Yes. I think as Gil mentioned, still more to come. We are still putting forth a strong argument around our proposed ROE. As you mentioned, they did not change their position. It appears to be sort of this continuation of the formula, which [indiscernible] was clear that the sunset of the formula rate was required. So, our filing offers an ROE that we feel appropriately reflects the actual cost of equity, taking into account the current market conditions. So, we will continue to work through that process. I think there is that data point and then there is the Electric Proxy Group, which is also another data point in the staff testimony. So, we will continue to work through that with them, but no changes as of this point.

Durgesh Chopra: Got it. Okay. It sounds like we will get an update here before the end of the year. Just switching gears, I have a question on supply chain, and Calvin or anybody else in the room, would love your views there. Just we have seen several media reports on transformer shortages. So, maybe broadly, can you comment, you have a sizable CapEx plan, obviously. But just broadly, can you comment on equipment shortages, labor shortages? And how is that tracking this year versus, let’s say, 12 months ago?

Calvin Butler: Yes. I would tell you that one of the, I would say, advantage is of being of our scale and our platform is that we are able to leverage the size to not only access our current suppliers, but identify new ones. So, directly to your question, we have not seen a shortage in our transformers. We have not seen a shortage in workforce or any other things that are impacting us executing on this capital plan. Now, what we do pay attention to, as new businesses coming online, our ability to give that online in the timeframe that some of our customers are looking for because that wasn’t part of that initial planned work. So, we stay on top of that and working with our supply organization. But to-date, we are not experiencing those same issues that others made.