EXC · 8-K · 20261030PR000092

Operating Expense Trends

EXELON CORP · 2026-10-30 · Importance 58 · Surprise 56

Third-quarter operating and maintenance expense increased 33.4% to $1.564 billion from $1.172 billion, a $392 million increase. The year-over-year earnings analysis attributes $69 million of adverse adjusted-earnings impact to operating and maintenance expense, including higher storm and contracting costs at PECO and higher storm costs at PHI, partially offset by lower contracting costs at BGE. Purchased power and fuel expense rose 8.4% to $2.917 billion from $2.692 billion, an increase of $225 million; PECO and BGE reported increases of 10.8% and 14.4%, respectively.

Key facts

• PHI's third-quarter 2026 adjusted earnings primarily benefited from approved distribution rates reflecting updated recovery of customer-serving investments, partly offset by higher storm costs, depreciation, and interest expense. source
• Higher storm costs, interest, and depreciation expense at PECO and PHI, and higher income taxes and contracting costs at PECO, partially offset Exelon's higher utility earnings. source
• PECO's lower third-quarter 2026 adjusted earnings primarily reflected higher storm costs, higher income taxes due to tax repairs (partly timing), increased contracting costs, depreciation and interest expense; the effects were partly offset by absent customer surcharge credits and favorable weather. source