PECO withdrawal and Maryland RELIEF Act as Exelon (NASDAQ: EXC) reaffirms earnings outlook
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Exelon Corporation reports that subsidiary PECO Energy has withdrawn its previously filed 2026 electric and natural gas distribution rate review proceedings with the Pennsylvania Public Utility Commission. PECO cites significant financial pressures on households and businesses and a desire to prioritize customer affordability while maintaining safe, reliable service.
Separately, the Maryland Utility RELIEF Act has passed the Maryland General Assembly and, if signed, will modify the regulatory framework for cost recovery for Exelon subsidiaries BGE, Pepco, and DPL in Maryland. In response to these developments, Exelon plans to redeploy and delay certain capital projects and pursue operational efficiencies.
Exelon reaffirms its 2026 Adjusted (non-GAAP) operating earnings guidance of $2.81–$2.91 per share and its expectation that cumulative annualized Adjusted (non-GAAP) operating earnings growth from 2025 to 2029 will be near the top end of the 5–7% range.
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Insights
PECO drops 2026 rate cases while Exelon still reaffirms earnings guidance.
PECO is withdrawing its 2026 electric and gas rate review filings in Pennsylvania to prioritize customer affordability. Those filings were meant to support near- and long-term grid modernization, so the decision implies slower timing for some investment recovery and related capital projects.
At the same time, Maryland’s Utility RELIEF Act, once signed, will alter cost-recovery rules for BGE, Pepco, and DPL. Exelon plans to redeploy and delay capital projects and pursue operational efficiencies in response. These steps are meant to align spending with evolving regulatory and affordability considerations across jurisdictions.
Despite these changes, Exelon is maintaining its 2026 Adjusted (non-GAAP) operating earnings guidance of $2.81–$2.91 per share and its view that 2025–2029 Adjusted (non-GAAP) earnings growth will be near the top end of 5–7%. Subsequent quarterly updates, including the May 6, 2026 earnings call, are positioned to provide more detail on how project deferrals and regulatory developments affect its long-term investment plans.
8-K Event Classification
3 items: 7.01, 8.01, 9.01
3 items
Item 7.01
Regulation FD Disclosure
Disclosure
Material non-public information disclosed under Regulation Fair Disclosure, often investor presentations or guidance.
Item 8.01
Other Events
Other
Voluntary disclosure of events the company deems important to shareholders but not covered by other items.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
2026 Adjusted EPS guidance: $2.81–$2.91 per share
Earnings growth outlook: Near top of 5–7% range
Customer Relief Fund: $12.5 million
+3 more
6 metrics
2026 Adjusted EPS guidance
$2.81–$2.91 per share
Reaffirmed Adjusted (non-GAAP) operating earnings guidance for 2026
Earnings growth outlook
Near top of 5–7% range
Expected cumulative annualized Adjusted earnings growth 2025–2029
Customer Relief Fund
$12.5 million
PECO fund to help low- and middle-income customers with high energy costs
Electric customers served
Nearly 1.7 million
PECO electric delivery customers in southeastern Pennsylvania
Natural gas customers served
More than 556,000
PECO natural gas delivery customers in southeastern Pennsylvania
PECO employees
3,100 employees
PECO workforce dedicated to safe and reliable delivery
Key Terms
Adjusted (non-GAAP) operating earnings, rate review filings, grid modernization, Utility RELIEF Act, +1 more
5 terms
Adjusted (non-GAAP) operating earnings financial
"Exelon reaffirms its previously disclosed 2026 Adjusted (non-GAAP) operating earnings guidance range"
Adjusted (non‑GAAP) operating earnings are a company’s reported profit from its core business after management removes certain items they consider unusual, one‑time, or unrelated to ongoing operations. Investors use this figure like a cleaned‑up scorecard to judge underlying performance and compare trends over time, but because companies choose what to exclude it can vary and should be viewed alongside standard GAAP results.
rate review filings regulatory
"withdrawing its previously filed electric and natural gas distribution rate review filings with the Pennsylvania Public Utility Commission"
grid modernization technical
"longer-term grid modernization will be informed by customer affordability considerations, system reliability needs"
Grid modernization involves upgrading the electrical system to make it more reliable, efficient, and capable of handling new technologies. It often includes integrating advanced digital tools, better communication systems, and renewable energy sources. For investors, these improvements can lead to more stable energy supplies and open opportunities in emerging energy markets and technologies.
Utility RELIEF Act regulatory
"the Maryland Utility RELIEF Act (“Utility RELIEF Act”) was passed through the Maryland General Assembly"
ratemaking financial
"rules governing recovery of certain costs in utility ratemaking for Baltimore Gas & Electric Company"
| UNITED STATES SECURITIES AND EXCHANGE COMMISSION | |||||||||||
| Washington, D.C. 20549 | |||||||||||
| FORM | |||||||||||
| CURRENT REPORT | |||||||||||
| Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 | |||||||||||
| Date of Report (Date of earliest event reported) | |||||||||||
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| Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: | |||||
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
| Securities registered pursuant to Section 12(b) of the Act: | ||||||||||||||
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
| EXELON CORPORATION: | ||||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). Emerging growth company | ||
| If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐ | ||
Item 8.01. Other Events
2026 PECO Electric and Gas Rate Filings
On April 16, 2026, PECO Energy Company (“PECO”), a subsidiary of Exelon Corporation (“Exelon”), filed a petition with the Pennsylvania Public Utility Commission (“PAPUC”) to withdraw its previously filed electric and gas rate proceedings submitted on March 30, 2026, in PAPUC Docket No. R-2026-3060859 and PAPUC Docket No. R-2026-3060860 (“Rate Case Proceedings”).
PECO will continue to evaluate the timing and approach for future capital investments and potential regulatory filings. Any decisions related to capital investments to support longer-term grid modernization will be informed by customer affordability considerations, system reliability needs, and ongoing engagement with regulators and other stakeholders. As PECO assesses longer-term grid needs, it remains committed to providing safe and reliable service.
2026 Maryland Utility RELIEF Act
On April 13, 2026, the Maryland Utility RELIEF Act (“Utility RELIEF Act”) was passed through the Maryland General Assembly and awaits the Governor’s signature to become law. If and when the Utility RELIEF Act becomes law, it will modify Maryland's regulatory framework and rules governing recovery of certain costs in utility ratemaking for Baltimore Gas & Electric Company (“BGE”), Potomac Electric Power Company (“Pepco”), and Delmarva Power & Light Company (“DPL”), all subsidiaries of Exelon.
Item 7.01. Regulation FD Disclosure
On April 16, 2026, PECO announced via press release the withdrawal of its Rate Case Proceedings. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference. The information provided in this Item 7.01 (including Exhibit 99.1) is furnished to, but not filed with, the Securities and Exchange Commission.
In response to the developments disclosed under Item 8.01 above, Exelon will redeploy and implement delays in capital projects and execute operational efficiencies. Exelon reaffirms its previously disclosed 2026 Adjusted (non-GAAP) operating earnings guidance range of $2.81-$2.91 per share and reaffirms its previously disclosed expectation for cumulative annualized Adjusted (non-GAAP) operating earnings growth from 2025 to 2029 to be near the top end of the 5 to 7 percent range.
Consistent with normal practice, Exelon will provide its quarterly financial update and additional related disclosures as part of its first quarter 2026 earnings call on May 6, 2026.
Item 9.01. Financial Statements and Exhibits
(d) Exhibits.
| Exhibit No. | Description | |||||||
99.1 | Press release | |||||||
| 101 | Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document | |||||||
| 104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) | |||||||
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This combined Current Report on Form 8-K is being furnished separately by Exelon, PECO, BGE, Pepco Holdings LLC, Pepco, and DPL (Registrants). Information contained herein relating to any individual Registrant has been furnished by such Registrant on its own behalf. No Registrant makes any representation as to information relating to any other Registrant.
This Current Report contains certain forward-looking statements within the meaning of federal securities laws that are subject to risks and uncertainties. Words such as “could,” “may,” “expects,” “anticipates,” “will,” “targets,” “goals,” “projects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “predicts,” “should,” and variations on such words, and similar expressions that reflect our current views with respect to future events and operational, economic, and financial performance, are intended to identify such forward-looking statements.
Accordingly, any such statements are qualified in their entirety by reference to, and are accompanied by, the following important factors that may cause our actual results or outcomes to differ materially from those contained in our forward-looking statements, including, but not limited to: unfavorable legislative and/or regulatory actions; uncertainty as to outcomes and timing of regulatory approval proceedings and/or negotiated settlements thereof; environmental liabilities and remediation costs; state and federal legislation requiring use of low-emission, renewable, and/or alternate fuel sources and/or mandating implementation of energy conservation programs requiring implementation of new technologies; challenges to tax positions taken, tax law changes, and difficulty in quantifying potential tax effects of business decisions; negative outcomes in legal proceedings; physical security and cybersecurity risks; extreme weather events, natural disasters, operational accidents such as wildfires or natural gas explosions, war, acts and threats of terrorism, public health crises, epidemics, pandemics, or other significant events; disruptions or cost increases in the supply chain, including shortages in labor, materials or parts, or significant increases in relevant tariffs; lack of sufficient power generation resources to meet actual or forecasted demand or disruptions at power generation facilities owned by third parties; emerging technologies that could affect or transform the energy industry; instability in capital and credit markets; a downgrade of any Registrant's credit ratings or other failure to satisfy the credit standards in the Registrants' agreements or regulatory financial requirements; significant economic downturns or increases in customer rates; impacts of climate change and weather on energy usage and maintenance and capital costs; and impairment of long-lived assets, goodwill, and other assets.
New factors emerge from time to time, and it is impossible for us to predict all of such factors, nor can we assess the impact of each such factor on the business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. For more information, see those factors discussed with respect to each of the Registrants in the Registrants' most recent Annual Report on Form 10-K, including in Part I, ITEM 1A, any subsequent Quarterly Reports on Form 10-Q, and in other reports filed by the Registrants from time to time with the SEC.
Investors are cautioned not to place undue reliance on these forward-looking statements, whether written or oral, which apply only as of the date of this Current Report. None of the Registrants undertakes any obligation to publicly release any revision to its forward-looking statements to reflect events or circumstances after the date of this Current Report.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| EXELON CORPORATION | |||||
| /s/ Jeanne M. Jones | |||||
| Jeanne M. Jones | |||||
| Executive Vice President, Chief Finance Officer, Audit and Risk | |||||
| PECO ENERGY COMPANY | |||||
| /s/ Marissa E. Humphrey | |||||
| Marissa E. Humphrey | |||||
| Senior Vice President, Chief Financial Officer and Treasurer | |||||
| BALTIMORE GAS AND ELECTRIC COMPANY | |||||
| /s/ Michael J. Cloyd | |||||
| Michael J. Cloyd | |||||
| Senior Vice President, Chief Financial Officer and Treasurer | |||||
| PEPCO HOLDINGS LLC | |||||
| /s/ Elizabeth Morgan Downs O'Donnell | |||||
| Elizabeth Morgan Downs O'Donnell | |||||
| Senior Vice President, Chief Financial Officer and Treasurer | |||||
| POTOMAC ELECTRIC POWER COMPANY | |||||
| /s/ Elizabeth Morgan Downs O'Donnell | |||||
| Elizabeth Morgan Downs O'Donnell | |||||
| Senior Vice President, Chief Financial Officer and Treasurer | |||||
| DELMARVA POWER & LIGHT COMPANY | |||||
| /s/ Elizabeth Morgan Downs O'Donnell | |||||
| Elizabeth Morgan Downs O'Donnell | |||||
| Senior Vice President, Chief Financial Officer and Treasurer | |||||
April 16, 2026
EXHIBIT INDEX
| Exhibit No. | Description | |||||||
99.1 | Press release | |||||||
| 101 | Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document | |||||||
| 104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) | |||||||
FOR IMMEDIATE RELEASE Contact: Greg Smore | PECO.Media@exeloncorp.com | 215-841-5555 PECO, 2301 Market Street, Philadelphia, PA 19103 PECO Withdraws Electric and Natural Gas Regulatory Rate Review Filings to Prioritize Customer Affordability PHILADELPHIA, PA (April 16, 2026) – Citing significant financial pressures facing households and businesses across southeastern Pennsylvania, PECO announced it is withdrawing its previously filed electric and natural gas distribution rate review filings with the Pennsylvania Public Utility Commission (PUC). The decision reflects a deliberate effort to prioritize customer affordability while continuing to deliver safe and reliable service. Customers and communities across the region are facing sustained financial strain driven by rising costs for housing, food, healthcare, transportation, energy supply costs, and other everyday essentials. Against that broader economic backdrop, and taking into consideration conversations with Governor Josh Shapiro, as well as input from customers, community partners, and stakeholders, PECO reassessed the cumulative impact of the proposed rate changes on customers and determined now is not the right time to move forward. “Keeping bills as low as possible through efforts like PECO’s $12.5 million Customer Relief Fund to help low- and middle-income customers struggling with high energy costs is a top priority,” said David Vahos, PECO president and CEO. “While our filing with the PUC would have provided needed improvements in safe and reliable energy delivery, we recognize that Pennsylvanians are struggling with basic necessities like gas, food, and energy and have decided to withdraw our proposal. We look forward to working with stakeholders across the region to find long-term solutions to high energy costs and to make needed investments at another time.” The withdrawn filings were intended to support near- and long-term electric and natural gas system modernization. However, it was determined that advancing those longer-term investments at this time would place additional strain on customers who are already managing significantly higher energy supply costs and broader cost-of-living challenges. This decision reflects a careful balance between customer affordability and the company's responsibility to deliver high-quality service for the long term. PECO is committed to putting customers and communities first and acting responsibly when making major decisions. The
company will continue near-term investments focused on system safety, essential maintenance, operational integrity, and reliability standards customers depend on every day. Customers can expect continued strong reliability performance as PECO continues to manage costs responsibly. At the same time, PECO will continue evaluating longer-term grid modernization investments that support economic growth, job creation, and evolving energy needs across southeastern Pennsylvania. Withdrawing the filings gives the company the flexibility to better assess the timing, scope, and sequencing of those investments in the context of affordability and system priorities. The company will also refocus on efforts to enact changes that will help to drive down energy supply prices – costs that the company does not control or profit from – to ensure adequate energy supply is available to meet rising demand. This continued “all-of-the-above” strategy is essential to continued affordability and reliability. Safety remains non-negotiable. This strategic pivot does not change how PECO operates or protects its electric and natural gas systems, its employees, or the communities it serves. PECO remains committed to a strong, transparent partnership with the PUC and will continue engaging regulators and stakeholders as it evaluates the appropriate path forward. # # # PECO, founded in 1881, is Pennsylvania's largest electric and natural gas delivery company. Headquartered in Philadelphia, PECO delivers energy to nearly 1.7 million electric customers and more than 556,000 natural gas customers in southeastern Pennsylvania. The company's 3,100 employees are dedicated to the safe and reliable delivery of electricity and natural gas as well as enhanced energy management conservation, environmental stewardship and community assistance. PECO is a subsidiary of Exelon Corporation (Nasdaq: EXC), a Fortune 200 company and one of the nation’s largest utility companies, serving almost 11 million customers through six fully regulated transmission and distribution utilities. For more information visit PECO.com, and connect with the company on Facebook, X, and Instagram.
FAQ
Why did PECO, an Exelon (EXC) subsidiary, withdraw its 2026 rate review filings?
PECO withdrew its 2026 electric and natural gas distribution rate review filings to prioritize customer affordability. The company cited significant financial pressures on households and businesses in southeastern Pennsylvania and concluded that advancing the proposed rate changes now would add strain despite supporting system modernization.
How will PECO’s withdrawn rate filings affect planned grid modernization investments?
The withdrawn filings were intended to support near- and long-term electric and natural gas system modernization. PECO will still make near-term investments in safety, essential maintenance, and reliability, while reevaluating the timing, scope, and sequencing of longer-term grid modernization in light of affordability and system priorities.
What is the Maryland Utility RELIEF Act mentioned by Exelon (EXC)?
The Maryland Utility RELIEF Act has passed the Maryland General Assembly and awaits the Governor’s signature. If it becomes law, it will modify Maryland’s regulatory framework and rules for recovering certain costs in utility ratemaking for Exelon subsidiaries BGE, Pepco, and Delmarva Power & Light Company operating in that state.
Did Exelon (EXC) change its 2026 Adjusted operating earnings guidance in this update?
Exelon reaffirmed its 2026 Adjusted (non-GAAP) operating earnings guidance range of $2.81–$2.91 per share. It also reaffirmed its expectation that cumulative annualized Adjusted (non-GAAP) operating earnings growth from 2025 to 2029 will be near the top end of the previously stated 5 to 7 percent range.
How is Exelon responding operationally to PECO’s withdrawal and Maryland regulatory changes?
Exelon plans to redeploy capital, delay certain projects, and pursue operational efficiencies in response to these developments. The company intends to balance customer affordability with long-term system needs, adjusting project timing while continuing to target safe, reliable service across its electric and natural gas utilities.
What customer support actions has PECO highlighted alongside withdrawing its rate cases?
PECO emphasized affordability initiatives such as its $12.5 million Customer Relief Fund aimed at low- and middle-income customers struggling with high energy costs. The company reiterated that keeping bills as low as possible, while maintaining safe and reliable service, is a top priority for its leadership.
When will Exelon (EXC) provide more details on these regulatory and capital decisions?
Exelon stated it will provide its regular quarterly financial update and related disclosures during its first-quarter 2026 earnings call on May 6, 2026. That call is expected to include additional context on capital project timing, operational efficiencies, and evolving regulatory frameworks in its service territories.