Exelon's utilities could spend US$3 billion to US$7 billion building 1.5 GW to 3.5 GW of regulated battery storage, on top of a US$1 billion, 500 MW project already proposed in New Jersey, the company said on its third-quarter earnings call, as reported by Utility Dive on 2 November.
The figures are potential investment beyond Exelon's current US$41.7 billion capital plan.
Where utilities can own storage
Exelon is the parent of several utilities in the PJM region, including Atlantic City Electric and ComEd. "Three of our states, New Jersey, Maryland and Delaware, allow for utility ownership of storage," chief financial officer Robert Kleczynski said on the call.
Jeanne Jones of Exelon's finance and strategy team said the range reflects 25% to 50% of what each state says it wants to procure. Carim Khouzami, chief development officer, said Exelon is advocating legislative changes in other states.
The New Jersey project
The 500 MW project, proposed by Atlantic City Electric together with Invenergy, would be the largest battery installation in PJM, according to Utility Dive. It is expected to provide more than US$700 million in net benefits.
The New Jersey Board of Public Utilities is expected to decide "late in the first quarter next year", Kleczynski said. Khouzami said the battery should be operational in "just under three years".
Why a utility wants batteries
Utility Dive links the plan in part to the supply crunch in PJM, the grid operator covering Exelon's utilities. Exelon kept its high-probability large-load additions flat at 11 GW, 9 GW in ComEd's territory and 2 GW in the Mid-Atlantic, while its wider pipeline in study fell to 23 GW from 25 GW.
Customer benefits cited include lower capacity prices and the flow-through of investment tax credits.
"With regulated storage, we have certainty that projects get built, and control over when and how they're deployed," Kleczynski said.
He also tried to reassure independent developers. "We view utility-owned storage as one option alongside competitive development, not a replacement for it," he said.
The numbers behind it
Exelon reported third-quarter revenue of US$7.3 billion, up from US$6.7 billion, and adjusted earnings of US$0.87 per share. Net income fell to US$729 million from US$875 million. Chief executive Calvin Butler said the US$41.7 billion plan has "no single project greater than 3% of the total".
What it means for US developers
Storage is no longer only a merchant or contracted business for independent power producers. In states that allow it, utilities want to put batteries into their rate base, which could crowd some developers out of tenders or turn them into partners, as Invenergy is in New Jersey. Solar and storage developers in PJM should watch the New Jersey decision as the first test.
Source: Utility Dive; Exelon third-quarter 2026 earnings call.
