艾索倫電力 (EXC) 2020 Q2 法說會逐字稿

Hello. And welcome to Exelon's Second Quarter Earnings Call. My name is Nora, and I will be your events specialist today. (Operator Instructions) Please note that today's webcast is being recorded. (Operator Instructions) If you'd like to view the presentation in a full-screen view, click the Full Screen button by hovering your computer mouse cursor over the PowerPoint screen. Press the Escape key on your keyboard to return to your original view. And finally, should you need technical assistance, as a best practice, we suggest you first refresh your browser. If that does not resolve the issue, please click on the Help option in the upper right-hand corner of the screen for online troubleshooting.

各位好，歡迎參加 Exelon 第二季財報電話會議。我是 Nora，今天將擔任各位的活動專員。（接線員指示）請注意，今天的網路直播將會錄音。（接線員指示）若您想以全螢幕方式觀看簡報，請將滑鼠游標移到 PowerPoint 畫面上，點選「全螢幕」按鈕。按下鍵盤上的 Escape 鍵即可返回原本的畫面。最後，如需技術協助，依最佳做法，我們建議您先重新整理瀏覽器；若仍無法解決，請點選畫面右上角的「Help」選項，進行線上疑難排解。

It is now my pleasure to turn today's program over to Dan Eggers, Senior Vice President of Corporate Finance. Sir, the floor is yours.

現在我很榮幸將今天的議程交給企業財務資深副總裁 Dan Eggers。先生，交給您了。

Thank you, Nora. Good morning, everyone, and thank you for joining our second quarter 2020 earnings conference call. Leading the call today are Chris Crane, Exelon's President and Chief Executive Officer; and Joe Nigro, Exelon's Chief Financial Officer. They're joined by other members of Exelon's senior management team who will be available to answer your questions following our prepared remarks.

謝謝你，Nora。各位早安，感謝各位參加我們 2020 年第二季財報電話會議。今天主持會議的是 Exelon 總裁兼執行長 Chris Crane，以及 Exelon 財務長 Joe Nigro。其他 Exelon 高階管理團隊成員也一同出席，並將在我們的準備發言結束後回答各位的提問。

We issued our earnings release this morning along with the presentation, both of which can be found in the Investor Relations section of Exelon's website. The earnings release and other matters, which we discuss during today's call, contain forward-looking statements and estimates that are subject to various risks and uncertainties. Actual results could differ from our forward-looking statements based on factors and assumptions discussed in today's material and comments made during this call. Please refer to today's 8-K and Exelon's other SEC filings for discussions of risk factors and other factors, including uncertainties surrounding the impacts of the COVID-19 pandemic that may cause results to differ from management's projections, forecasts and expectations.

我們今天早上已發布財報新聞稿並同時提供簡報，兩者皆可在 Exelon 官網的投資人關係（Investor Relations）專區找到。財報新聞稿以及我們在今天會議中討論的其他事項，包含前瞻性陳述與估計，並可能受到各種風險與不確定性影響。實際結果可能因今天資料中討論的因素與假設，以及本次電話會議中的評論而與前瞻性陳述有所不同。請參閱今日提交的 8-K 以及 Exelon 其他向 SEC 提交的文件，以了解風險因素與其他因素之討論，其中包括 COVID-19 疫情影響所帶來的不確定性，可能導致結果與管理階層的推估、預測與預期不同。

Today's presentation also includes references to adjusted operating earnings and other non-GAAP measures. Please refer to the information contained in the appendix of our presentation and our earnings release for reconciliations between the non-GAAP measures and the nearest equivalent GAAP measures.

今天的簡報亦包含對調整後營運盈餘（adjusted operating earnings）及其他非 GAAP 指標的引用。請參閱簡報附錄及我們的財報新聞稿中所載資訊，以取得非 GAAP 指標與最接近之 GAAP 指標之間的調節表。

I'll now turn the call over to Chris Crane, Exelon's CEO.

接下來我把電話交給 Exelon 執行長 Chris Crane。

Thanks, Dan. And I appreciate everybody joining the call this morning and spending time with us.

謝謝你，Dan。也感謝各位今天早上加入這通電話會議並撥冗與我們交流。

Starting off, as you've seen from our releases this morning, the GAAP basis -- on a GAAP basis, we earned $0.53 per share; on a non-GAAP basis, we earned $0.55 per share. We had a great quarter, outperforming our guidance range of $0.35 to $0.45 per share due to achieving cost savings earlier than planned. Joe will get into it. Our load assumptions came out how we expected, but we've had excellent operations, but also have confronted some serious challenges throughout the quarter. First ComEd reached an agreement with U.S. Attorney's office in Illinois, that concludes -- includes a 3-year deferred prosecution agreement and a payment of $200 million, which ends the investigations into ComEd and Exelon. We have taken robust actions to identify and address deficiencies, including enhancing our compliance governance to prevent this type of conduct. We apologize for the past conduct that did not live up to our values. These new policies and oversight will ensure it won't happen again. We're extremely disappointed in the seriousness of the past misconduct, and we know many stakeholders understandably feel the same disappointment. We have -- you have our commitment that we will take every possible step to earn back the confidence and trust we have lost with others. This will not happen overnight and it will be a formidable task, but we are resolved to get there.

首先，正如各位今早從我們的公告中所見，以 GAAP 基礎計算，我們每股盈餘為 0.53 美元；以非 GAAP 基礎計算，我們每股盈餘為 0.55 美元。本季表現非常出色，主要因為我們比原計畫更早達成成本節省，因此優於我們每股 0.35 至 0.45 美元的財測區間。Joe 會進一步說明。我們的負載（用電量）假設結果符合預期；我們的營運表現優異，但本季也面臨一些嚴峻挑戰。第一，ComEd 已與伊利諾州美國檢察官辦公室達成協議，其中包括為期 3 年的延後起訴協議（deferred prosecution agreement）以及 2 億美元的付款，並結束對 ComEd 與 Exelon 的調查。我們已採取強而有力的行動來辨識並改善缺失，包括強化我們的法遵治理，以防止此類行為再次發生。對於過去未能符合我們價值觀的行為，我們深表歉意。這些新政策與監督機制將確保不再重演。對於過去不當行為的嚴重性，我們感到極度失望，也理解許多利害關係人同樣感到失望。我們承諾將採取一切可能的措施，重新贏回我們在他人心中失去的信心與信任。這不會一蹴可幾，且將是一項艱鉅任務，但我們決心達成。

Second, the country is addressing the important issues of racial and inequity and social justice, and we are doing so as well. Our employees and communities, our customers are diverse, and we have a critical leadership role in pursuing equity and fairness for all those who are facing ingrained injustice and discrimination. That means living our values both within and outside the walls of our company. Sponsoring job programs in underserved communities is a big focus of ours, developing a larger base of diverse suppliers in our footprint, supporting through philanthropic and volunteerism a wide variety of organizations, pursuing equity and economic development, making it clear what our values are through action and speaking up when we see injustice. Focus -- our focus on our values of respect, diversity and inclusion cannot waiver, and we know Black Lives Matter, all of our diverse communities matter, and we're standing to protect them and help serve them. We've doubled down on our work to support our diverse and underserved customers and communities since we all are impacted by continued inequity, and we must do more.

第二，國家正面對並處理種族不平等與社會正義等重要議題，我們也同樣如此。我們的員工、社區與客戶都具多元性，而在追求公平與正義、協助所有正遭受根深蒂固的不公與歧視的人們方面，我們肩負關鍵的領導角色。這意味著我們必須在公司內外都實踐自身價值觀。在資源不足社區贊助就業計畫是我們的重點之一；在我們的服務範圍內建立更龐大的多元供應商基礎；透過慈善捐助與志工服務支持各式各樣的組織；推動公平與經濟發展；以行動清楚展現我們的價值觀，並在看見不公時勇於發聲。我們對尊重、多元與共融的價值觀之專注不能動搖；我們知道 Black Lives Matter，我們所有多元社區都很重要，我們將挺身保護並服務他們。由於持續存在的不平等影響著我們所有人，我們已加倍投入支持多元與資源不足客戶及社區的工作，而且我們必須做得更多。

Switching to the COVID issue. COVID-19 continues to impact our communities. We remain focused on safety of our employees, running our operations at the best-in-class levels and supporting our customers and communities, incorporate pandemic-related policies into our management model that keep our employees and our contractors safe, implementing responsible reentry plans that predict -- are predicting on key milestones that will ensure employees' safety and confidence that they can come back to the workplace. We've created contingency plans to monitor system configuration and allow us for rapid emergency response in storm or normal operations. And providing a deferred payment arrangement for residential and low income customers that are affected by the high rate of unemployment that we're dealing with in the communities that we serve.

接著談 COVID 議題。COVID-19 持續影響我們的社區。我們仍專注於員工安全、以同級最佳（best-in-class）的水準營運，並支持我們的客戶與社區；將疫情相關政策納入管理模式，以確保員工與承包商安全；推動負責任的復工（reentry）計畫，並以關鍵里程碑為依據進行規劃——以確保員工的安全與對重返工作場所的信心。我們已建立應變計畫，以監控系統配置，並使我們能在風暴或日常營運中快速進行緊急應變。同時，針對受我們所服務社區高失業率影響的住宅與低收入客戶，提供延後付款安排。

On the operational highlights. Operations are strong with the pandemic conditions and extreme storms across the territory. In early June, PECO faced its eighth largest storm in history, which brought sustained winds of over 40 miles per hour and gusts of more than 60 miles per hour. 400 customers were out within an hour of the storm beginning, and -- but we were able to restore 80% of those customers with widespread damage in 36 hours. We had already prepared and drilled new procedures for storm response during the pandemic. 80% of our back office storm rolls are performed now remotely. Within 48 hours, 3,750 contractors and mutual assistance personnel were safely on-site in the PECO region to restore customers and onboard -- they were onboarded electronically, which -- we continue to develop the techniques for that. Despite the pandemic and the active storm season, all Utilities are in top quartile for outage duration and outage frequency.

在營運亮點方面，即使在疫情條件與全區域極端風暴之下，我們的營運仍然強勁。6 月初，PECO 遭遇其歷史上第八大的風暴，持續風速超過每小時 40 英里、陣風超過每小時 60 英里。風暴開始後一小時內有 400 名客戶停電，但我們在 36 小時內即在廣泛受損情況下恢復了其中 80% 客戶的供電。我們先前已在疫情期間為風暴應變準備並演練新的作業程序。目前我們 80% 的後勤（back office）風暴調度作業已改為遠端執行。48 小時內，3,750 名承包商與互助支援人員安全抵達 PECO 區域進行復電，且以電子方式完成到場報到（onboard）——我們也持續精進相關技術。儘管疫情與活躍的風暴季節並存，所有公用事業公司在停電持續時間與停電頻率方面皆位居前四分位（top quartile）。

Nuclear had its best second quarter capacity factor in more than a decade at 95.4%. Safety -- we safely completed in this quarter 5 (inaudible). There's been 8 for the year, and most ahead of schedule while protecting our employees and the contractors. Power dispatch match was 97.4%, and our renewable capture rate was 92.7%. So overall, very, very strong operational performance.

核能業務本季的容量因子（capacity factor）達到 95.4%，為十多年來最佳的第二季表現。安全方面——我們在本季安全完成了 5 次（聽不清）。今年累計已完成 8 次，且多數提前於原定時程完成，同時也保護了我們的員工與承包商。電力調度匹配率（power dispatch match）為 97.4%，再生能源捕捉率（renewable capture rate）為 92.7%。整體而言，營運績效非常、非常強勁。

We also continue to focus on our environmental stewardship. In July, we released our 2019 corporate sustainability report that shows the accomplishments that we made. Benchmarking air emissions report once again found Exelon as the lowest carbon emission rate of the top 20 investor-owned power producers, nearly 5x less than the #2 producer and the largest producer of carbon-free generation. In 2019, utility energy efficiency programs helped customers save 22.3 million megawatt hours and avoid 8.7 million metric tons of carbon. Exelon Utilities set a goal to electrify 30% of the vehicle fleet by 2025 and 50% by 2030, avoiding more than 65,000 metric tons of carbon from 2020 to 2030. We're committed to deliver affordable 0 emissions power in helping our customers and our community reduce the harmful emissions that there -- exist in their communities. These efforts are important to transition to a clean energy economy, but they are not enough to address the climate crisis. We continue to advocate for policies at the state and federal levels that will address the challenges.

我們也持續聚焦於環境管理責任。7 月，我們發布了 2019 年企業永續報告，呈現我們所取得的成果。空氣排放基準評比報告再次指出，Exelon 在前 20 大投資人持有（investor-owned）的發電業者中，碳排放率最低，幾乎比排名第 2 的業者低 5 倍，且是無碳發電量最大的業者。2019 年，公用事業的能源效率計畫協助客戶節省 2,230 萬兆瓦時用電，並避免 870 萬公噸的碳排放。Exelon Utilities 設定目標：於 2025 年前將車隊 30% 電動化、於 2030 年前達到 50%，在 2020 至 2030 年間可避免超過 65,000 公噸的碳排放。我們承諾提供可負擔的零排放電力，協助客戶與社區減少其社區中存在的有害排放。這些努力對於邁向潔淨能源經濟的轉型很重要，但仍不足以因應氣候危機。我們將持續倡議州與聯邦層級的政策，以解決相關挑戰。

Now I'm going to turn the call over to Joe for the financial update.

現在我將把電話會議交給 Joe，請他進行財務更新。

Thank you, Chris, and good morning, everyone. Today, I will cover our second quarter results, our quarterly financial updates, including trailing 12-month ROEs at the utilities and our hedge disclosures.

謝謝你，Chris，各位早安。今天我將說明我們第二季業績、季度財務更新，包括公用事業的過去12個月 ROE，以及我們的避險揭露。

Turning to Slide 9. We earned $0.53 per share on a GAAP basis and $0.55 per share on a non-GAAP basis, which exceeded our guidance range of $0.35 to $0.45 per share. Exelon Utilities delivered a combined $0.29 per share net of holding company expenses. Utility earnings were modestly higher relative to expectations, driven largely by ComEd formula rate timing and O&M timing, which was partially offset by the record-setting storm in the Philadelphia area, which cost for $0.04 per share to PECO.

請看第 9 張投影片。我們按 GAAP 基礎每股盈餘為 0.53 美元，按非 GAAP 基礎每股盈餘為 0.55 美元，超出我們每股 0.35 至 0.45 美元的指引區間。Exelon Utilities 在扣除控股公司費用後合計貢獻每股 0.29 美元。公用事業獲利較預期略高，主要受 ComEd 公式費率時點與 O&M 時點帶動；但部分被費城地區創紀錄風暴所抵銷，該風暴使 PECO 每股成本增加 0.04 美元。

ExGen outperformed expectations for the second quarter, earning $0.26 per share. The upside was largely driven by lower O&M, where we saw targeted savings for 2020 coming sooner than we originally budgeted. These savings were realized by lower outage cost, lower labor costs, travel and entertainment and training costs being lower as well. On the last call, we introduced -- we announced $250 million of savings across the organization to help offset the impacts of COVID-19, which we expected would be more weighted to the back half of this year. The organization has been hard at work and is on track to achieve these savings in 2020, with some coming earlier than anticipated, as you can see in our second quarter results.

ExGen 第二季表現優於預期，每股盈餘為 0.26 美元。上行主要來自較低的 O&M，我們看到原本為 2020 年設定的節省目標，比原先編列預算更早實現。這些節省來自較低的停機（outage）成本、較低的人力成本，以及差旅、交際與訓練成本也同步下降。在上次電話會議中，我們介紹並宣布全組織 2.5 億美元的節省計畫，以協助抵銷 COVID-19 的影響；我們原先預期這些節省會更偏向今年下半年。組織已全力推動，並正按計畫在 2020 年達成這些節省，其中部分比預期更早實現，正如你們在我們第二季業績中所看到的。

During the quarter, load at the Utility and Constellation was in line with our expectations. For the third quarter, we expect earnings of $0.80 to $0.90 per share, and we are affirming our full year guidance of $2.80 to $3.10 per share.

本季期間，公用事業與 Constellation 的用電量（load）符合我們的預期。對第三季而言，我們預期每股盈餘為 0.80 至 0.90 美元，並重申全年指引為每股 2.80 至 3.10 美元。

On Slide 10, we show our quarter-over-quarter earnings walk. The $0.55 per share in second quarter of this year was $0.05 per share lower than the second quarter of 2019. Exelon Utilities less Holdco earnings were down $0.10 per share compared with last year. The decrease was driven primarily by storm costs at PECO, ComEd formula rate timing and higher bad debt expense, partially offset by favorable weather at PECO. ExGen's earnings were up $0.05 per share compared with last year, benefiting from lower O&M and income taxes. This was partially offset by lower capacity revenue, primarily in PJM, and the impacts of COVID-19 on load and bad debt expense.

請看第 10 張投影片，我們展示季度對季度的獲利變動拆解（earnings walk）。今年第二季每股 0.55 美元，較 2019 年第二季低 0.05 美元。Exelon Utilities 扣除 Holdco 後的獲利較去年下降每股 0.10 美元。下降主要由 PECO 的風暴成本、ComEd 公式費率時點，以及較高的壞帳費用所致；部分被 PECO 有利天候所抵銷。ExGen 的獲利較去年增加每股 0.05 美元，受惠於較低的 O&M 與所得稅；但部分被較低的容量收入（主要在 PJM），以及 COVID-19 對用電量與壞帳費用的影響所抵銷。

Turning to Slide 11. Looking at our Utility returns on a consolidated basis, we remain in our consolidated 9% to 10% target range, with a 9.1% trailing 12-month ROE as of the second quarter. Earned ROEs for the Utilities remained above 9%, but dipped from last quarter by 60 basis points. The decline was primarily driven by lower earnings at PECO as a result of the storm -- June storm, higher bad debt at PECO and PHI and declining treasury yields, which impacted ComEd's ROE. As a reminder, this calculation is backward looking, so as we think about the next couple of quarters, you should expect to see some pressure on ROEs as we roll off the better pre-COVID-19 earnings quarters and carry the burdens of PECO's poor first quarter weather and second quarter storms as well as the impact of lower treasuries on ComEd. These headwinds are captured in our full year guidance, so you should have the financial impact already assumed.

請看第 11 張投影片。以合併基礎來看，我們的公用事業報酬率仍維持在合併 9% 至 10% 的目標區間內，截至第二季的過去 12 個月 ROE 為 9.1%。各公用事業的已實現 ROE 仍高於 9%，但較上季下滑 60 個基點。下滑主要由 PECO 因 6 月風暴導致獲利較低、PECO 與 PHI 的壞帳較高，以及公債殖利率下行（影響 ComEd 的 ROE）所致。提醒一下，這項計算是回溯性的，因此展望未來幾季，隨著較佳的疫情前獲利季度逐步退出計算，同時承擔 PECO 第一季不佳天候與第二季風暴的負擔，以及較低公債殖利率對 ComEd 的影響，你們應預期 ROE 將面臨一些壓力。這些逆風已反映在我們的全年指引中，因此你們應已將其財務影響納入假設。

Looking further into the future, we remain focused on delivering stronger earned returns at the Utilities and supporting our growth targets.

展望更長期，我們仍專注於在公用事業端交付更強的已實現報酬率，並支持我們的成長目標。

Turning to Slide 12. I since the last call, there were some important developments on the regulatory front. First, regulators in all our jurisdictions have approved COVID-19 recovery mechanisms. Second, BGE was the first utility in Maryland to file a multiyear plan after getting the green light on this approach from the Maryland PSC in February. The filing will support planned capital investments from 2020 to 2023 as well investments made in late 2019 to maintain an increased reliability and benefit customer service for our electric and gas distribution system. The critical infrastructure sector will be a key component to Maryland's economic recovery, and BGE has designed a multiyear energy infrastructure investment and customer relief plan to assist with the economic recovery. BGE will invest more than $5 billion to fund enhancements to the safety, reliability, security, resiliency and environmental attributes of the grid and improve customers' experience. BGE is expected to support more than 26,000 jobs and have at least $15 billion of economic impact over the 3-year period, which is critical as communities manage through the pandemic recovery. In conjunction with the filing, BGE will provide customer relief and assistance in 2020 to 2023 for limited income customers and small businesses. We expect an order this December.

請看第 12 張投影片。自上次電話會議以來，監管面出現一些重要進展。第一，我們所有轄區的監管機關均已核准 COVID-19 復原機制。第二，BGE 在 2 月獲得馬里蘭州 PSC 對此作法的同意後，成為馬里蘭州第一家提出多年期計畫的公用事業公司。該申報將支持 2020 至 2023 年的資本投資計畫，以及 2019 年底為維持更高可靠度並提升電力與天然氣配電系統客戶服務而進行的投資。關鍵基礎設施產業將是馬里蘭州經濟復甦的重要組成，BGE 已設計多年期能源基礎設施投資與客戶紓困計畫，以協助經濟復甦。BGE 將投資超過 50 億美元，用於提升電網的安全、可靠性、資安、防災韌性與環境屬性，並改善客戶體驗。預期 BGE 在 3 年期間將支持超過 26,000 個工作機會，並帶來至少 150 億美元的經濟影響，這在社區因應疫情復甦期間至關重要。配合此次申報，BGE 將於 2020 至 2023 年為低收入客戶與小型企業提供客戶紓困與協助。我們預期今年 12 月會有裁定。

Third, in June, Pepco filed their multiyear plan enhanced proposal in D.C. with the PSC, addressing the impacts of the COVID-19 pandemic and current economic challenges. The enhanced plan would expand and establish a series of customer programs, targeting those that have been hardest hit, including small businesses, nonprofits and our residential customers. The flexibility of the multiyear plan structure provides Pepco the ability to offer these innovative adjustments in response to the pandemic. We expect an order by year-end.

第三，6 月 Pepco 向華盛頓特區的 PSC 提交其多年期計畫的強化提案，回應 COVID-19 疫情與當前經濟挑戰的影響。該強化計畫將擴大並建立一系列客戶方案，鎖定受衝擊最嚴重的族群，包括小型企業、非營利組織與住宅客戶。多年期計畫架構的彈性，使 Pepco 能夠因應疫情提供這些創新調整。我們預期年底前會有裁定。

Fourth, ComEd's annual formula rate update filing is expected to be decided in December of this year. This filing requests a reduction in delivery rates for the third year in a row and the fifth decrease in 10 years. Since the formula rate has been in place, ComEd's investments in modernizing the grid's reliability, resiliency and clean energy growth have improved reliability by 70% while keeping bills lower than they were nearly a decade ago.

第四，ComEd 的年度公式費率更新申報預計將於今年 12 月作出決定。該申報要求連續第三年調降輸配電費率，並為 10 年內第五次調降。自公式費率實施以來，ComEd 在電網現代化方面的投資（涵蓋可靠性、韌性與潔淨能源成長）已使可靠性提升 70%，同時讓帳單水準低於近十年前。

And finally, last month, Delmarva and Maryland received a final order for its distribution rate case. The Maryland commission approved the proposed order by the Public Utility Law Judge that recommended an $11.7 million increase in annual electric distribution revenues. Importantly, the order increased Delmarva's allowed ROE by 10 basis points to 9.6%. We believe it is recognition of strong performance and reliability and customer satisfaction. More details on the rate cases can be found on Slides 24 through 30 of the appendix.

最後，上個月 Delmarva 與馬里蘭州的配電費率案收到最終命令。馬里蘭州委員會核准了公用事業法官所建議的擬議命令，建議年度電力配電收入增加 1,170 萬美元。重要的是，該命令將 Delmarva 的核准 ROE 上調 10 個基點至 9.6%。我們認為這是對其強勁績效、可靠性與客戶滿意度的肯定。關於費率案件的更多細節，請參閱附錄第 24 至 30 張投影片。

Turning to Slide 13. We are continuing our robust capital deployment program at the Utilities, investing $1.5 billion during the second quarter. Year-to-date, we have invested $2.9 billion of capital into our Utilities, improving our infrastructure and increasing reliability and resiliency for the benefit of all of our customers. Despite some early challenges from the pandemic, we are on track for the year. Today, I will discuss 2 projects that are part of these efforts and will bring improved performance to our customers in New Jersey and Pennsylvania.

請看第 13 張投影片。我們持續在公用事業端推進強勁的資本部署計畫，第二季投資 15 億美元。截至目前，我們已在公用事業投入 29 億美元資本，用以改善基礎設施，並提升可靠性與韌性，造福所有客戶。儘管疫情初期帶來一些挑戰，我們仍按計畫推進。今年我將討論其中 2 個專案，這些努力將為新澤西州與賓夕法尼亞州的客戶帶來更佳表現。

The first project is Atlantic City Electric Moss Mills - Moss Farm (sic) [Moss Mill - Motts Farm] transmission line rebuild, which is a $69 million project to rebuild 15 miles of 69 kV transmission lines and poles. This project upgrades a critical transmission line that runs through the entire Northeastern portion of the Atlantic City territory in New Jersey spanning 3 different counties. Additionally, the Chestnut Neck Substation will be retired and replaced with a modernized mobile-ready substation, allowing for incremental flexibility.

第一個專案是 Atlantic City Electric Moss Mills - Moss Farm（原文如此）[Moss Mill - Motts Farm] 輸電線路重建，這是一項 6,900 萬美元的專案，將重建 15 英里、69 kV 的輸電線路與電桿。此專案升級一條關鍵輸電線路，該線路貫穿新澤西州 Atlantic City 服務區域的整個東北部，橫跨 3 個不同郡。此外，Chestnut Neck 變電站將退役，並以現代化、可支援行動部署（mobile-ready）的變電站取代，以提供額外的彈性。

The second project is PECO's upland substation project in Philadelphia. The $68 million project includes replacement of an existing 75-year old substation with a new modernized substation and extension of 230 kV transmission lines and new 13 kV feeders into West Philadelphia. This project improves infrastructure that serves 10,000 customers in the Overbrook and Bala areas, including hospitals and universities. It will also enable customers to implement solar energy solutions. PECO engaged local diverse companies to participate with project implementation and construction, which provided approximately 250,000 construction hours.

第二個專案是 PECO 在費城的 Upland 變電站專案。這項 6,800 萬美元的專案包括以新的現代化變電站取代現有 75 年歷史的變電站，並延伸 230 kV 輸電線路以及新增 13 kV 饋線至西費城。此專案改善為 Overbrook 與 Bala 地區 10,000 名客戶提供服務的基礎設施，其中包括醫院與大學。它也將使客戶能夠導入太陽能解決方案。PECO 邀請在地多元企業參與專案執行與施工，提供約 250,000 小時的施工工時。

On Slide 14, we provide our gross margin update and current hedging strategy at the Generation company. Turning to the table, there is no change in total gross margin in 2020 or 2021 since the last quarter. We executed new business consistent with our plan. In 2020, open gross margin is flat to the first quarter, and we executed $100 million of power new business and $50 million of nonpower new business. In 2021, open gross margin increased by $200 million due to increasing power prices across most regions. This was offset by our hedges and lower capacity revenues in New York and uncleared capacity from the PJM incremental auctions. In 2021, we executed $50 million of power new business and $50 million of nonpower new business. We remain slightly behind our ratable hedging program in 2021 by 4% to 7% when considering cross commodity hedges.

在第14頁投影片中，我們提供發電公司（Generation）的毛利更新與目前的避險策略。看表格，自上季以來，2020年或2021年的總毛利均無變動。我們依計畫執行了新的業務。2020年，未鎖定毛利（open gross margin）與第一季持平，我們執行了1億美元的電力新業務與5,000萬美元的非電力新業務。2021年，由於多數地區電價上升，未鎖定毛利增加2億美元；但此增幅被我們的避險部位、以及紐約較低的容量收入與PJM增量拍賣中未清算的容量所抵銷。2021年，我們執行了5,000萬美元的電力新業務與5,000萬美元的非電力新業務。若將跨商品避險納入考量，我們在2021年的等比例避險計畫（ratable hedging program）仍略為落後4%至7%。

On Slide 15, I'll give a brief update on Constellation's business and what we've seen to date on load performance. During the second quarter, commercial and industrial customer load was in line with our expectations. Load was within our down 9% to 15% projected range, although it varied from week to week. Our load forecast for the remainder of the year is unchanged. As we get more information, we are getting a better handle on the impacts from COVID-19, which is helping us to monitor how specific regions, customers and industries are behaving with respect to COVID-19 impacts as they continue to evolve. Additionally, we are working with our large customers to better understand their load impacts and outlook. Even as we evolve to an ever-changing landscape, our focus remains on being strategic partners with our customers and providing clean energy products. We work with our customers by providing proactive analytics and insights on their current loads, tools to manage and optimize in real time and navigate emerging trends such as electrification impacts to their businesses, while also reaching their environmental and sustainability goals. This partnership is key to our success and provides the most stability for our business via high retention rates and consistent margins.

在第15頁投影片中，我將簡要更新Constellation的業務，以及迄今我們在負載表現（load performance）方面所看到的情況。第二季期間，商業與工業客戶的用電負載符合我們的預期。負載落在我們預估下滑9%至15%的區間內，儘管每週之間有所波動。我們對今年剩餘期間的負載預測維持不變。隨著取得更多資訊，我們對COVID-19的影響掌握得更好，這有助於我們監測特定地區、客戶與產業在COVID-19影響持續演變下的行為。此外，我們也正與大型客戶合作，以更深入了解其負載影響與展望。即使我們面對不斷變動的環境，我們的重點仍是成為客戶的策略夥伴並提供潔淨能源產品。我們透過提供主動式分析與洞察（proactive analytics and insights）協助客戶了解其目前負載，並提供可即時管理與最佳化的工具，協助其因應如電氣化（electrification）對其業務的影響等新興趨勢，同時達成其環境與永續目標。這種夥伴關係是我們成功的關鍵，並透過高留存率與穩定毛利為我們的業務帶來最大的穩定性。

Moving on to Slide 16. We are committed to maintaining a strong balance sheet and investment-grade credit ratings. Our consolidated FFO to debt is projected to be 18% for 2020, consistent with last quarter. This reflects the pressures from COVID-19 as discussed in detail last quarter. Looking at ExGen, we are ahead of our debt-to-EBITDA target of 3.0x. For 2020, we expect to be at 2.5x and 2.0x when excluding nonrecourse debt. On the rating front, in July, Fitch affirmed our ratings and S&P took action to downgrade ComEd's issuer credit rating. However, S&P reaffirmed the senior secured and short-term ratings at ComEd, therefore, not impacting our anticipated cost of borrowing. Furthermore, S&P changed the ratings outlook for Exelon Corporate, PECO, Pepco Holdings, ComEd and ExGen to negative from stable. While we were disappointed in these actions, we remain committed to maintaining a strong balance sheet and investment-grade credit ratings.

接著看第16頁投影片。我們致力於維持強健的資產負債表與投資等級信用評等。我們預估2020年合併FFO對債務比率（FFO to debt）為18%，與上季一致。這反映了COVID-19帶來的壓力，如同上季已詳細討論。就ExGen而言，我們優於3.0倍的債務對EBITDA目標（debt-to-EBITDA）。2020年，我們預期為2.5倍；若排除無追索權債務（nonrecourse debt），則為2.0倍。在評等方面，7月Fitch確認（affirmed）我們的評等，而S&P採取行動下調ComEd的發行人信用評等。然而，S&P重申ComEd的優先擔保（senior secured）與短期評等，因此不影響我們預期的借款成本。此外，S&P將Exelon Corporate、PECO、Pepco Holdings、ComEd與ExGen的評等展望由穩定調整為負向。雖然我們對這些行動感到失望，但我們仍致力於維持強健的資產負債表與投資等級信用評等。

We have successfully executed all of our planned long-term debt financings for the year. The 2020 financing plan was significantly accelerated to take advantage of attractive market conditions and provide ample short-term liquidity, leaving us well positioned for the balance of the year. The issuances in the second quarter were all meaningfully oversubscribed, and we secured record-setting low interest rates at the Utilities.

我們已成功完成今年所有規劃中的長期債務融資。2020年的融資計畫大幅提前，以把握有利的市場條件並提供充足的短期流動性，使我們在今年剩餘期間處於良好位置。第二季的發行均出現顯著超額認購（meaningfully oversubscribed），且我們在公用事業（Utilities）端取得創紀錄的低利率。

Thank you. I'll now turn the call back to Chris for his closing remarks.

謝謝。接下來我把電話交回給Chris，請他做結語。

Thanks, Joe, and thanks for the comprehensive report. Finally, turning to Slide 17, I'll close on Exelon's value proposition, which is unchanged. We're focused on growing our utilities, targeting 7.3% rate base growth and a 6% to 8% EPS growth through 2023. We will use the free cash flow as we have done from the Genco to support utility growth, pay down Genco debt and support some of the external dividend.

謝謝你，Joe，也謝謝你提供全面的報告。最後，回到第17頁投影片，我將以Exelon的價值主張作結，該主張維持不變。我們專注於推動公用事業成長，目標是到2023年達成7.3%的費率基礎（rate base）成長，以及6%至8%的每股盈餘（EPS）成長。我們將如同以往運用Genco的自由現金流來支持公用事業成長、償還Genco債務，並支應部分對外股利（external dividend）。

We continue to optimize the value of the Gen business by seeking fair compensation for our 0 emitting generation fleet, closing uneconomic plants and monetizing assets and maximizing their value through the Constellation avenue. We will sustain strong investment-grade credit metrics. We have remained committed to that and will not waiver. And we'll grow our dividend at this point right now annually at 5% through 2020. The strategic underpinning of this value proposition is sound, effective in providing tangible benefits for our stakeholders.

我們持續透過尋求對我們零排放（0 emitting）發電機組組合的公平補償、關閉無經濟效益的電廠、以及資產變現，並透過Constellation渠道最大化其價值，以最佳化發電（Gen）業務的價值。我們將維持強健的投資等級信用指標。我們一直致力於此，且不會動搖。而在目前這個時間點，我們將在2020年前每年以5%的幅度成長股利。此價值主張的策略基礎是健全的，並能有效為我們的利害關係人帶來具體利益。

Operator, we can now turn the call over for questions. Thank you.

接線員，我們現在可以開放提問。謝謝。

(Operator Instructions) Your first question comes from the line of Shar Pourreza of Guggenheim Partners.

（接線員指示）您的第一個問題來自Guggenheim Partners的Shar Pourreza。

Just 2 questions here. First, on financing, as we sort of think about some of the moving pieces, like obviously, the sizable organic growth of the Utilities, minimal headroom from a credit perspective, the CENG buyout, potentially maybe higher uncollectibles, Joe, do you sort of currently envision any kind of potential scenarios, maybe in the next 12 months, that would require you to have to issue equity?

我這裡有兩個問題。第一個關於融資：當我們思考一些變動因素時，例如公用事業相當可觀的內生成長、從信用角度來看可用空間不大、CENG收購（buyout）、以及可能更高的呆帳／不可收回款（uncollectibles），Joe，你目前是否設想在未來12個月內會出現任何可能情境，會需要你們發行股權（issue equity）？

Yes. Shar, thank you for the question. And as you know, we've received this question many times over the last few months. As I said in my prepared remarks, we're committed to a strong investment-grade rating, and it's a central tenant to our business and it has been quite frankly for a very long time. We go through a very rigorous planning process, and we disclose the results of that process each year on our fourth quarter call. And under that most recent plan, there is no equity issuance in the plan. Last month, we kicked off that process for our next plan that will take us through the end of this year. And as you can imagine, Shar, there's many variables that go into that process, market prices for power, obviously, treasury rates, our load forecast, our O&M projections, what our capital plans are, funding strategy when you think about debt. And obviously, we still have the FRR out there, and that will be taken into account. What I would say is we don't take any one of those variables in isolation. They obviously all work together to create the basis for our plan. We've been successful in -- with our strong balance sheet and growing our Utilities, and we've been harvesting the cash flow of ExGen to help do that.

是的，Shar，謝謝你的問題。如你所知，過去幾個月我們被問到這個問題很多次。正如我在事先準備的發言中所說，我們致力於維持強健的投資等級評等，這是我們業務的核心信條（central tenant），坦白說也已經維持很長一段時間。我們有非常嚴謹的規劃流程，並在每年第四季電話會議上揭露該流程的結果。依據最近一次的計畫，計畫中並沒有發行股權。上個月，我們啟動了下一輪計畫的流程，該計畫將涵蓋到今年年底。如你所想像，Shar，這個流程包含許多變數：電力市場價格、當然還有公債利率（treasury rates）、我們的負載預測、我們的營運與維護（O&M）預估、資本計畫內容、以及在考量債務時的資金策略。而且我們仍有FRR尚未定案，這也會納入考量。我想說的是，我們不會孤立地看待任何單一變數；它們會共同作用，形成我們計畫的基礎。我們一直以強健的資產負債表成功推動公用事業成長，並且一直在收割（harvesting）ExGen的現金流來協助達成這些目標。

We also look at the levers we have, right? We've been pretty successful with our cost cuttings over the last 5 years, obviously. We've sold some assets. We look at alternative financing arrangements. And the last thing on that list is equity. But in our current plan, there is no need for equity. And as we move through the planning process and that takes us through the end of the year, we'll relay or communicate the outcome of that on our fourth quarter call.

我們也會檢視我們可運用的槓桿，對吧？過去5年我們在成本削減方面相當成功。我們也出售了一些資產。我們會考量替代性融資安排。而在那份清單中最後一項才是股權。但在我們目前的計畫中，並不需要發行股權。隨著我們推進規劃流程並一路進行到年底，我們會在第四季電話會議上轉達或溝通該結果。

Great. And then, Chris, just on -- a question for you on strategy. I mean, in the past, it felt like you weren't confident if the ExGen business could be spun out without IG rating sufficient scale. With what we're seeing with IPPs eventually going IG, which would certainly alleviate the liquidity requirements, others looking at their own merchant fossil fleet as they de-risk, can you give us any refreshed thoughts on the Genco as a strategic fit within the portfolio over the long term? I guess do you now have some incremental confidence that the Genco business could eventually stand on its own without the support from corporate? I mean a transaction would obviously alleviate balance sheet concerns and in the valuation disconnect, and we've obviously seen a few players looking to simplify kind of their own structures. So whether we're talking about the entire fleet or simply the fossil fuel assets, has your strategic thinking kind of changed over the past, let's say, 12 months?

很好。接著，Chris，我有一個關於策略的問題。過去感覺你們對於ExGen業務是否能在沒有足夠規模的投資等級（IG）評等下分拆（spun out）並不有把握。隨著我們看到獨立電力生產商（IPP）最終走向投資等級，這當然會緩解流動性需求；同時也看到其他公司在去風險化時檢視其自有的商業化化石燃料機組（merchant fossil fleet）。你能否更新一下你對Genco在長期投資組合中作為策略契合度（strategic fit）的看法？也就是說，你現在是否更有信心Genco業務最終可以在沒有公司本部（corporate）支持下獨立運作？一筆交易顯然可以緩解資產負債表疑慮與估值落差（valuation disconnect），而我們也看到一些同業希望簡化其自身架構。因此，不論我們談的是整個機組組合，或僅是化石燃料資產，你們在過去大約12個月的策略思考是否有所改變？

So it is something that we look at on a regular basis, and we do a deep dive strategic review of the benefits of keeping the 2 companies bolted -- or the 2 lines bolted together versus what are the alternatives. We have enjoyed a period of time of free cash flow from the Genco that has allowed us to have a significant investment into the Utilities for the benefit of the customers over a period of time since our last review. As you can imagine, it's something that we always look at. And I understand the basis of the question with the recent announcements from 2 other companies on where they have decided to go. But right now, there's work to be done to create the certainty and the value of the cash flows that would be maintained to allow a company to either stand on its own or continue to support the growth of the other side of the business. And so we're in the middle of trying to work through a legislative strategy in Illinois. We're on firm ground in New York. I know there's work going on in New Jersey. We have to look at the value of the assets and what's going on in Maryland and what can be done there legislatively to compensate the assets for their low carbon output. So it's something we look at, and it's something that we think we have been very clear on from the beginning. And it's good to see other IPPs coming along and understanding the value of being investment grade and not having stressed balance sheets with commodity cyclicality like we see. But we think we can improve the value further and the strength further to be able to serve the states and the communities that we serve with good, well-paying jobs, a strong balance sheet. And then we will continue to assess to -- do the assets stay bolted together through a corporate holding company structure or is it better for all stakeholders involved to have some type of separation of the entities.

因此，這是我們會定期檢視的事項；我們也會就維持兩家公司「綁在一起」——或兩條業務線綁在一起——的好處，與其他替代方案，進行深入的策略性檢討。我們在一段期間內從發電公司（Genco）獲得自由現金流，使我們自上次檢討以來，得以在一段時間內為了客戶利益，對公用事業（Utilities）進行相當可觀的投資。如你所想，這是我們一直都在關注的事情。我也理解這個問題的出發點，尤其是近期另外兩家公司宣布其決策方向之後。但就目前而言，仍有工作要做，才能建立確定性並提升可維持之現金流的價值，使公司得以選擇獨立運作，或持續支持另一端業務的成長。因此，我們正處於推動伊利諾伊州立法策略的過程中；我們在紐約的基礎很穩固；我知道新澤西也正在進行相關工作。我們必須評估資產價值、馬里蘭州的情況，以及在立法上能做些什麼，來就其低碳輸出對資產進行補償。所以這是我們會檢視的事情，而且我們認為自一開始就已非常清楚地表達立場。也很高興看到其他獨立電力生產商（IPP）逐步跟上，理解維持投資級評等的價值，以及不讓資產負債表因商品循環性而承受壓力——正如我們所見。但我們認為仍可進一步提升價值與財務韌性，以便以良好且高薪的工作機會、強健的資產負債表，服務我們所服務的州與社區。接下來我們也會持續評估——這些資產是否應透過企業控股公司架構繼續綁在一起，或對所有利害關係人而言，採取某種形式的實體分拆是否更佳。

The one thing I can tell you is there's an annual review on all the nonnuclear assets to see if they propose more value to others than we have projected for ourselves, and that annual review will continue. And as we see assets that could perform better in somebody else's portfolio and we could monetize those assets, we'll do that. There's assets that we'll shut down that aren't carrying their own weight. There are assets in New England that have a finite period of time under the ISO's regulation. And so there is a constant flux in our nonnuclear business that we'll continue to evaluate with our focus on strong balance sheet debt reduction and optimizing what we have on the balance sheet.

我可以告訴你的一點是：我們每年都會對所有非核資產進行檢討，看看它們對其他人是否能創造比我們自身預期更高的價值，而這項年度檢討會持續進行。當我們看到某些資產在別人的投資組合中可能表現更好、而我們也能將其變現時，我們就會這麼做。有些資產若無法自負盈虧，我們會關閉。新英格蘭地區也有一些資產在 ISO 的監管下有其有限的存續期間。因此，我們的非核業務一直處於持續變動之中；我們會持續評估，並聚焦於強健資產負債表、降低負債，以及最佳化資產負債表上的資產配置。

Terrific. And congrats on good results and tough year.

太棒了。也恭喜你們在艱難的一年交出好成績。

Thanks.

謝謝。

Your next question comes from the line of Steven Fleishman of Wolfe Research.

下一個問題來自 Wolfe Research 的 Steven Fleishman。

So just the Illinois, I guess, ComEd deferred agreement and fine. Could you just maybe give kind of views on implications that you're seeing for addressing the clean energy law and -- if any? And then also on future of the rate-making structure. Yes, any (inaudible) would be helpful.

我想就伊利諾伊州這件事——也就是 ComEd 的延後起訴協議與罰款——你能否談談你們目前看到的、對推動清潔能源法的影響（如果有的話）？另外也想請教未來的費率制定架構。是的，任何（聽不清）補充都會很有幫助。

Sure. I'm going to let Joe Dominguez jump in on the second half of the question. He's here with us in the room. The first half of the question, does it affect the Exelon Generation's drive for legislation on changing the capacity market. There's an obvious issue that trust has been eroded. Although it's isolated to ComEd, it has effect on all the entities. And so there's been a lot of press reporting and there's been some disappointed stakeholders and is rightfully so. And so our job is to rebuild the trust of those that we serve and make sure that we can show that we have done a fantastic job, and Joe will cover some of this, in the investments that have been made at ComEd and what the rate structure is done for us. It has been totally super beneficial to the consumer. But there's a period of time where we're just going to have to continue outreach conversation and show our commitment to ethical behavior that doesn't compromise our integrity or the trustworthiness of us going forward. So we're still working to engage with stakeholders on a capacity market redesign. It's very critical for us to get it done. As you know, PJM is going to run an auction. And there's a strong sense from our analytic folks that the -- some of the nuclear units are not going to be picked up in that auction. Some are uneconomic at this point right now and some more may become uneconomic. And our commitment to you has always been, if we can't find a way or path to profitability, we'll have to shut them down, which is a sad turn of events that will affect the state's goals on carbon reduction. It will severely affect the communities around the plants and the very high paying, critical jobs that those communities benefit from.

好的。我會請 Joe Dominguez 來回答問題的後半段，他現在就在會議室和我們一起。至於前半段：這是否會影響 Exelon Generation 推動立法、以改變容量市場的努力？顯然存在一個問題：信任已被侵蝕。雖然事件僅限於 ComEd，但它會影響所有實體。因此媒體有大量報導，也有一些利害關係人感到失望——這是理所當然的。我們的工作就是重建我們所服務對象的信任，並確保我們能展現我們做得非常出色——Joe 也會談到其中一些——包括 ComEd 的投資，以及費率架構為我們帶來的效果。這對消費者而言是完全、非常有利的。但接下來有一段時間，我們必須持續進行外展溝通，並展現我們對道德行為的承諾，不會損害我們的誠信或未來的可信度。因此，我們仍在與利害關係人合作推動容量市場重新設計；這對我們至關重要。如你所知，PJM 將進行拍賣。我們的分析團隊強烈認為——部分核電機組將無法在該次拍賣中得標。有些目前已不具經濟性，還有一些可能會變得不具經濟性。我們一直對你們的承諾是：如果我們找不到通往獲利的方式或路徑，我們就必須關閉它們；這將是令人遺憾的結果，會影響該州的減碳目標，也會嚴重影響電廠周邊社區，以及那些社區所仰賴的高薪且關鍵的工作。

So -- but it's an unfortunate thing. We apologize for what went on. We had a code of conduct that clearly defined the behaviors, but it wasn't enough. And so we've put controls in place to ensure it will never happen again. And we have to work with stakeholders, not only legislative and elected folks, but our customers and our other stakeholders and the communities that we serve to rebuild that trust. One thing I can tell you is this company is committed to doing the right thing for the communities that we serve, not only through philanthropic activities, but also volunteerism. I think you can look at us in all the communities we serve, and we're probably the strongest corporate partner out there, and we're going to continue that. And we know that we're only as good as a company as the communities that we serve. So that's what we've got to get back to. This is the most unfortunate thing to happen, not just because of time, it's because of trust. And it's because of a small amount of individuals making decisions that should not have been done, and it shouldn't have gone undetected. But with that said, we still remain confident that the consumers have been protected, served. And as you heard me say, we have lower rates and high reliability than we did 10 years ago. And so that's because we have a strong regulations -- a regulatory body that's focused on the same thing that we're focused on, is reliable, affordable, clean energy.

所以——這是一件不幸的事。我們為所發生的事情道歉。我們原本有一套行為準則，清楚界定應有的行為，但那還不夠。因此我們已建立控制措施，確保此事不會再發生。我們必須與利害關係人合作，不僅是立法與民選官員，也包括我們的客戶、其他利害關係人，以及我們所服務的社區，以重建信任。我可以告訴你的一件事是：本公司致力於為我們所服務的社區做正確的事，不僅透過慈善捐助，也透過志工服務。我想你可以看到，在我們服務的所有社區中，我們可能是最強的企業夥伴之一，而我們會持續如此。我們也知道，一家公司能有多好，取決於我們所服務的社區有多好。所以我們必須回到這一點。這是最不幸的事情，不只是因為耗時，而是因為信任；而且是因為少數人做出了不該做的決定，且不該在未被察覺的情況下發生。但即便如此，我們仍然有信心消費者已受到保護並獲得服務。正如你們聽我說過的，相較於 10 年前，我們現在的費率更低、可靠度更高。這是因為我們有一個強而有力的監管——監管機構——其關注點與我們一致：可靠、可負擔、清潔的能源。

With that, I'll let Joe talk about what his thoughts are on rates making and regulatory process.

接下來我請 Joe 談談他對費率制定與監管流程的看法。

Thanks, Chris. I think -- Steve, I think Chris covered a lot of it, just to level set for the folks on the call. The formula rate continues through the end of 2022. So we'll -- we have some additional time to see what the future looks like, whether it's a continuation of the formula with additional transparency or a return to traditional rate making. As both Chris and Joe talked about, we think the formula has provided enormous benefits to our customers. If you take a look at Page 7 on the deck, you see the key metrics, and you see all green for ComEd. But in a certain sense, that almost understates the performance at ComEd. We are not only top quartile in all those dimensions, we're actually top decile in all of those dimensions. And last year at ComEd, we had the best-performing year ever in the history of the company, over 110 years best-performing year. And as I look at the metrics at the close of July, we are tracking 20% better than last year in SAIFI and 11% better in CAIDI. So we've still got a number of months to go, but very, very proud of the team at ComEd and the operational performance. Customer satisfaction is highest it's ever been. We were J.D. Power's #1 Midwest utility at the end of 2019. We had never achieved that objective. So I focus on that because -- for 2 reasons. One, the transformation that's occurred at ComEd, and it's been recognized here. And second, we always tell you that from an Exelon perspective, and Chris says this virtually every call, that we think of good regulatory and political outcomes as being driven by good operational performance. And I think at ComEd, we can lay claim to perhaps having the best operational performance in the country.

謝謝，Chris。我想——Steve，我想 Chris 已經涵蓋了很多內容；我只是先為電話會議上的各位做個基準說明。公式費率（formula rate）會持續到 2022 年底。因此——我們還有一些時間來觀察未來會是什麼樣子：是以更高透明度延續公式費率，或是回到傳統的費率制定。正如 Chris 和 Joe 都提到的，我們認為公式費率為客戶帶來了巨大的效益。如果你看簡報第 7 頁，你會看到關鍵指標，ComEd 全部都是綠色。但某種程度上，這甚至低估了 ComEd 的表現。我們不僅在所有這些面向都位居前四分位（top quartile），實際上在所有面向都位居前十分位（top decile）。而且去年 ComEd 創下公司 110 多年歷史以來表現最好的一年，是史上最佳表現。以我看截至 7 月底的指標，我們在 SAIFI 上比去年改善 20%，在 CAIDI 上比去年改善 11%。我們還有幾個月要走，但我對 ComEd 團隊與營運表現感到非常、非常自豪。客戶滿意度也達到歷史新高。我們在 2019 年底成為 J.D. Power 中西部排名第 1 的公用事業公司，這是我們以前從未達成的目標。我之所以強調這點，是因為——兩個原因。第一，ComEd 發生的轉型，而且已在這裡獲得肯定。第二，我們一直告訴各位，從 Exelon 的角度——Chris 幾乎每次電話會議都會說——我們認為良好的監管與政治結果，是由良好的營運表現所驅動。我認為在 ComEd，我們或許可以主張我們擁有全國最好的營運表現。

So we'll see what that looks like going forward. From comments from the governor's office that we've recently seen, it's clear that, at least from his perspective, the formula was tied to the transformation that's occurred, the investments in smart meters and other devices. And to the extent that there is a renewal or a new methodology that's installed, that's going to have to be related to a new policy objective, and that's tied up in a lot of the clean energy goals. But I guess from my perspective, Steve, whether we continue with the formula or whether we return to traditional rate making, I think the entire team at ComEd believes it's got to be constructive. And one reason we're confident in that is that there's been an evolution in Illinois. As we've been in the formula, Illinois policy for ratemaking has evolved. The state now uses forward-looking test years and the gas utilities have used that. That's been constructive. We're decoupled as a state. We have bad debt and other rider mechanisms that are strong and transparent and better than we were in 2011 when we first went to the formula. But I guess the biggest difference that I would point to is the operational performance between 2011 and now is so much better. If you take the thesis that operational performance drives regulatory results, then in a certain sense, the outcomes we were seeing in 2011 were driven by poor operational performance at ComEd. And today, that's a different story. And so the final point I would make is we've had an 8-year history of making the investments in underground cables and poles and including smart devices across our system. Not only -- the commission has seen that now for 8 years. What we'd be continuing, whether it's in a formula rate or traditional rate making, is those programs that have been wildly successful in terms of improving reliability, integrating clean energy, making the system more resilient in the face of climate change and doing all of that stuff and keeping customer bills low. As Chris said, our average bill today -- or I think Joe said this, is lower than it was 10 years ago. And in part, that's a story about wholesale power prices. But in big measure, it's about energy efficiency at ComEd and the overall efficiency of the organization.

所以我們將看看未來會是什麼樣子。從我們最近看到州長辦公室的評論來看，很明顯，至少從他的角度而言，該公式與已發生的轉型、對智慧電表及其他裝置的投資息息相關。而如果要續期或導入新的方法論，那就必須與新的政策目標相連結，而這又與許多潔淨能源目標緊密交織。不過從我的角度來看，Steve，無論我們是延續該公式，或是回到傳統費率制定，我認為 ComEd 的整個團隊都相信必須是具建設性的。我們之所以有信心，其中一個原因是伊利諾伊州已經有所演進。在我們採用公式期間，伊利諾伊州的費率制定政策也在演進。該州現在採用前瞻性測試年度，天然氣公用事業也一直在使用，這是具建設性的。我們作為一個州已實施收入脫鉤（decoupled）。我們有壞帳及其他附加費（rider）機制，強健且透明，比我們在 2011 年首次採用公式時好得多。但我想我會指出的最大差異是，2011 年到現在的營運績效好太多了。如果你接受「營運績效驅動監管結果」這個論點，那麼在某種意義上，我們在 2011 年看到的結果是由 ComEd 較差的營運績效所驅動。而今天，情況已不同。因此我最後要說的一點是，我們已有 8 年的歷史，持續投資地下電纜與電桿，並在整個系統中導入智慧裝置。不僅如此——委員會也已經看了 8 年。無論是在公式費率或傳統費率制定下，我們將持續推動的，都是那些在提升可靠度、整合潔淨能源、在面對氣候變遷時讓系統更具韌性方面極為成功的計畫，同時也能讓客戶帳單維持在低水準。正如 Chris 所說，我們今天的平均帳單——或者我想 Joe 說過——比 10 年前還低。部分原因是批發電力價格的故事。但在很大程度上，這也關乎 ComEd 的能源效率，以及組織整體的效率。

So the punchline for me is this, Steve. Regardless of whether we're in formula or not, I think we've got good alignment in terms of the investments we're making in the system. We're going to continue to make those prudent investments going forward, and I think the results are going to be constructive.

所以對我而言結論是這樣，Steve。無論我們是否採用公式，我認為就我們在系統上的投資而言，我們有良好的對齊。我們將在未來持續進行那些審慎的投資，而我認為結果將會是具建設性的。

Your next question comes from Julien Dumoulin-Smith of Bank of America.

下一個問題來自美國銀行（Bank of America）的 Julien Dumoulin-Smith。

Listen, perhaps just to pick up where we left off on the last question, if I can. Can you speak specifically to the Utility and bending the relationship in terms of the franchise arrangement? I mean maybe that's a Joe question again, but can you provide some context in that process, the back and forth, obviously, in the public? And then at the same time, just to clarify the last response, if you can. In an event in which the formula rates are not extended, it would be conceivable that you go back to a traditional ratemaking contract in which you would benefit or at least you would have available to you those mechanisms you just alluded to, Joe. I just want to make sure we're explicit about that as well.

聽著，如果可以的話，也許我想接續上一個問題我們停下來的地方。你能否具體談談公用事業（Utility）以及在特許經營安排（franchise arrangement）方面，雙方關係如何調整？我的意思是，也許這又是 Joe 的問題，但你能否就這個過程、來回協商，以及顯然在公開場合的互動，提供一些背景？同時，如果可以的話，也請澄清一下上一個回覆。在公式費率未獲延長的情況下，你們有可能回到傳統的費率制定架構，在那種架構下，你們將受益，或至少可以使用你剛才提到的那些機制，Joe。我只是想確保我們也把這點講清楚。

Yes, that's right. Chris is it okay if I go?

是的，沒錯。Chris，我可以回答嗎？

Yes, go, please.

可以，請說。

Yes, sure. So Julien, let me answer the short question that you asked last first. Yes, if we return to traditional rate making, we would intend to file a rate case using a forward-looking test year, and that rate case would likely be filed in the first quarter of 2023. So that's number one. In terms of the franchise agreement, we've been through a process with the city where we've been meeting periodically just about every week, although that got interrupted a bit with COVID. We're making good progress, I thought, on the franchise agreement. Then we have the DPA. And we had a hearing last week with City Council and also some input from the Mayor's office. The Mayor's office indicated that from her perspective, 2 things need to happen before we could continue the conversation around the franchise agreement. One is we have to deal with the ethics reforms and the compliance mechanisms. And from my perspective, that is assuring the city that the measures we've taken are the appropriate ones and then having reporting requirements and other things with the city so that they understand that we're implementing those and that we're moving forward appropriately. The Mayor has a big ethics agenda, so we're going to embrace that ethics agenda. Here, the hiring of Dave Glockner, which we've talked about before, is quite an important piece. Dave has -- comes to us with an impeccable reputation. As many of you know, he came out of the U.S. Attorney's office, serving as Chief of the Criminal Division at that office for 11 years. But most importantly, and for folks outside of Northern Illinois, you don't see this, but Dave has an unbelievable reputation within the community. And for folks like the Mayor who have served in the U.S. Attorney's office as a colleague of Dave's, that's quite an important point. But we need to work through ensuring that we have a transparent mechanism of providing regular updates to the city in terms of the adherence to the new protocols that we've adopted. That's one piece of it.

好的，當然。Julien，我先回答你最後問的那個簡短問題。是的，如果我們回到傳統費率制定，我們打算使用前瞻性測試年度來提出費率案件（rate case），而該費率案件很可能會在 2023 年第一季提出。這是第一點。至於特許經營協議（franchise agreement），我們與市府已經走過一個流程，我們定期會面，幾乎每週一次，雖然因 COVID 而有些中斷。我認為我們在特許經營協議上取得了良好進展。接著還有 DPA。我們上週與市議會舉行了一場聽證會，也收到了市長辦公室的一些意見。市長辦公室表示，從她的角度來看，在我們能繼續就特許經營協議進行對話之前，有兩件事需要先發生。第一，我們必須處理倫理改革與合規機制。從我的角度來看，這是要讓市府确信我們採取的措施是適當的，並且與市府建立報告要求及其他事項，使他們了解我們正在落實這些措施，並且以適當方式向前推進。市長有一個重大的倫理議程，因此我們將擁抱這個倫理議程。在這方面，我們聘用 Dave Glockner——我們之前談過——是相當重要的一環。Dave 加入我們時擁有無可挑剔的聲譽。各位很多人都知道，他來自美國聯邦檢察官辦公室（U.S. Attorney's office），在那裡擔任刑事部門主管（Chief of the Criminal Division）長達 11 年。但更重要的是，對於伊利諾伊州北部以外的人來說你們可能看不到，Dave 在社區內享有極高的聲譽。對於像市長這樣曾在美國聯邦檢察官辦公室任職、並與 Dave 共事的人而言，這點相當重要。但我們需要進一步確保，我們有一個透明的機制，能就我們所採納的新規範之遵循情況，定期向市府提供更新。這是其中一部分。

The Mayor has also indicated that we need to be committed to the goals of sustainability, to the goals of equitable and affordable energy for all customers in the city. And that's kind of the sweet spot of our strategy around electrification, around clean energy, energy efficiency, the many jobs programs we sponsor. So we look forward to a good conversation on that. There's a tangential issue relating to the franchise agreement that being the issue of the city's takeover or municipalization of the grid here in Chicago. We've spoken about that previously on this call. Commissioner Reynolds, who is leading for the city the negotiations with ComEd, testified at the hearing last week and indicated that the city will have a feasibility study out shortly on the possibility of municipalization. At least he indicated in his testimony that, that would -- that -- the view would be that, that would not be feasible. And there's a few big reasons for that. One is it's a $5 billion to $6 billion system and then the separation cost would be another $5 billion. So I think we'll tie together a few of these issues here. We need to assure the city of the reforms I've talked about. We'll have a conversation about the programs around clean energy, electrification, jobs programs, benefits to customers' affordability. And then I imagine we'll continue to have this backdrop of municipalization. But if the feasibility study comes out as Commissioner Reynolds indicated, I don't think that's going to necessarily be a pathway. But we have our work to do with the city. I'm confident we will get there. It may take a year or more to hash out. That's something Commissioner Reynolds indicated as well. But the way our franchise agreement works, and I've talked about this previously on this call, is that if it has not continued, it simply rolls over year-to-year on its own terms. It's like a lease in that sense where it just automatically renews year-to-year. So that's probably more than you wanted to hear, Julien, but that's the whole story on the franchise agreement.

市長也表示，我們需要致力於永續目標，致力於讓市內所有客戶都能獲得公平且可負擔的能源。這正是我們在電氣化、潔淨能源、能源效率，以及我們贊助的眾多就業計畫等策略上的甜蜜點。因此我們期待就此展開良好對話。另有一個與特許經營協議相關的旁支議題，也就是芝加哥市接管或市有化（municipalization）本地電網的議題。我們先前在這通電話會議中談過。代表市府主導與 ComEd 談判的 Reynolds 委員（Commissioner Reynolds）在上週聽證會上作證，並表示市府將很快發布一份關於市有化可行性的研究。至少他在證詞中表示，觀點將是——那將——認為那不可行。原因有幾個重大因素。其一，這是一個 50 億到 60 億美元的系統，而分離成本（separation cost）還要再加 50 億美元。因此我想我們把這幾個議題串在一起。我們需要讓市府确信我所談到的改革。我們將就潔淨能源、電氣化、就業計畫、以及對客戶可負擔性的效益等方案進行對話。然後我想我們仍會在市有化這個背景之下繼續推進。但如果可行性研究如 Reynolds 委員所指示的那樣出爐，我不認為那必然會成為一條路徑。不過我們與市府仍有工作要做。我有信心我們會達成。可能需要一年或更久來釐清細節，Reynolds 委員也提到這點。但我們的特許經營協議運作方式——我先前在這通電話會議中也談過——是如果未能續約，它會依原條款自動按年展延（roll over year-to-year）。在這個意義上它像租約一樣，會自動逐年續約。所以這可能比你想聽的還多，Julien，但這就是特許經營協議的完整故事。

Our next question comes from Stephen Byrd of Morgan Stanley.

我們的下一個問題來自摩根士丹利（Morgan Stanley）的 Stephen Byrd。

Congrats on a good quarter. Just want to follow-up on Shar's question just as you think about your credit outlook. Joe, you gave a very thorough response. I was just thinking through, I guess, your prior plan, which did not include equity, had you hitting the credit stats. And you mentioned in response to the last question, just a variety of things that could impact those credit stats. But I was just wondering at the high level, as you think about the kind of the major puts and takes that -- as you see it, that can impact your credit stats, I was thinking about, for example, Constellation on one end in terms of the temporarily weak demand. But what are kind of the bigger puts and takes that you're just thinking through as you think about your credit stats since the last time you had the full planning process?

恭喜本季表現不錯。我想就 Shar 的問題再追問一下，當你們思考信用展望時。Joe，你的回覆非常詳盡。我在想你們先前的計畫並未包含發行股權，但仍能達到信用指標。而你在回覆上一個問題時提到，有各種因素可能影響那些信用指標。但我想在高層次上問一下，當你們回顧自上次完成完整規劃流程以來，哪些主要的利多與利空（puts and takes）——就你所見——可能影響你們的信用指標？例如，一端是 Constellation 因需求暫時疲弱的影響。但你們在思考信用指標時，還有哪些更大的利多與利空正在納入考量？

Yes. I think there's a number of elements associated with that, right? I mean, obviously, treasuries have an impact at ComEd. They have an impact on our pension and other things, right? You think about market prices, and you mentioned load, that clearly plays into it. We expect mostly to see recovery by the time we get into '21. There is some minor impacts that we talked about the last quarter. We control things like cost, right? We'll continue to challenge ourselves in that regard. There's other variables, too, right? We just talked about the Illinois legislation, what is the outcome of that. That will have a -- obviously be a binary impact. How much capital are we putting into our Utilities and what that looks like? And all of those things go into the -- to the decision-making. Chris talked about on economic assets and actions around those. We've clearly sold assets where we thought the market had higher values on them. We've looked at alternative financings and have used project financing. We did the securitization of the receivables at Constellation. So there's a lot of elements to it, Stephen. Some are kind of decisions we control. Others, we're part of and we're working on, and they build upon themselves. And ultimately, we -- our dividend, we have to make a recommendation to the Board at the end of this year, and we'll do that and determine how much capital we're putting in across our footprint. And then from there, we'll see what the funding plan looks like.

是的。我認為這牽涉到許多相關因素，對吧？我的意思是，很明顯，公債殖利率在 ComEd 會有影響；它也會影響到我們的退休金以及其他事項，對吧？你想想市場價格，而你也提到了負載（用電量），那顯然也會納入考量。我們預期大致會在進入 2021 年時看到復甦。上季我們談到有一些輕微影響。我們可以控制像是成本這類事情，對吧？我們會持續在這方面要求自己。也還有其他變數，對吧？我們剛談到伊利諾州的立法，其結果會是什麼。那將會——很明顯是二元性的影響。我們要在公用事業投入多少資本，以及那會呈現什麼樣貌？所有這些都會納入——決策之中。Chris 也談到經濟性資產以及圍繞那些資產的行動。我們確實在認為市場對某些資產給出更高價值時出售了資產。我們也研究了替代性融資並使用了專案融資。我們在 Constellation 也做了應收帳款證券化。所以，Stephen，這裡面有很多因素。有些是我們能掌控的決策；其他則是我們身處其中並正在推動的事情，而且它們會相互疊加。最終，我們——關於股利，我們必須在今年年底向董事會提出建議；我們會這麼做，並決定我們在整個服務版圖中要投入多少資本。然後從那裡，我們會看看資金籌措計畫會是什麼樣子。

The one thing that I would add is the uneconomic. We will not run plants and lose free cash flow or earning on assets that are not supporting themselves. It is very unfortunate for the communities that we serve, the employees, but we will not let the balance sheet get further deteriorated by nonprofitable assets, then we will take swift action to resolve that dive in cash flow and earnings. So we're doing everything possible to prevent that, but it's a reality. We've shut 2 units down in the recent years. We could not see a path to sustainability of those assets in the portfolio. Not the greatest decisions we ever had to make, and we understand the impact that has on the communities that we serve, the environmental goals of the states and the economic impact of the states. But maintaining an investment grade that can support the remaining facilities is our main focus.

我想補充的一點是關於不具經濟性的部分。我們不會讓電廠運轉，卻在自由現金流上虧損，或在無法自我支撐的資產上損失資產收益。這對我們服務的社區與員工而言非常不幸，但我們不會讓資產負債表因為不獲利的資產而進一步惡化；我們會迅速採取行動，解決現金流與獲利的下滑。因此我們正盡一切可能避免那種情況，但這是現實。近年來我們已關閉了 2 個機組。我們看不到這些資產在投資組合中能夠永續的路徑。這不是我們做過最好的決定之一，我們也理解這對我們所服務社區、各州的環境目標，以及各州的經濟影響。但維持能夠支撐其餘設施的投資級評等，是我們的主要重點。

That's very clear. Separately, just thinking about your cost control, you all have had good success in cost savings. Just thinking about potential benefits beyond the near term of those cost savings, is there any potential, for example, for that to create better customer rate headroom that could result in more CapEx at the Utilities? How do you think about sort of sustainability of cost savings? And if you're able to sustain some of those savings, sort of what other knock-on benefits you could see?

這非常清楚。另外，談到你們的成本控制，你們在節省成本方面一直很成功。就這些成本節省在短期之外可能帶來的效益來看，是否有任何可能性——例如——讓客戶費率有更大的空間，進而使公用事業端能投入更多資本支出（CapEx）？你們如何看待成本節省的可持續性？如果你們能維持其中一些節省，可能會看到哪些其他連鎖效益？

Well as you know, on the third quarter call each year, we announce the next round of cost savings. I can tell you there's a significant effort and contingency planning going on within the generating company and the BSC, the Business Services Company. Now on -- if we maintain the fleet as we have it, how are we going to do it more economically, how are we using technology. Then a significant amount of work in the financial organization, HR, legal, other organizations to look at the world differently. And we'll announce our next round probably in third quarter -- fourth quarter. I'm looking at Dan to make sure I'm answering right because he's responsible for this and he's waving his hands at me. So the fourth quarter call. But -- and we'll have a better picture of the future life of the nuclear fleet by that point. And if we are in the mode of unfortunately retiring plants, you can imagine that we'll have a significant reduction in the BSC overheads that could go back to the benefit of the customers from the modified Massachusetts formula. I wouldn't necessarily say it gives them more headroom to spend capital. We spend capital that is needed capital for reliability and customer service. But it should -- if the -- it should benefit the customers and take some of the overhead burden off of the utilities as we continue to refine how we can do work cheaper, better, faster, be very efficient, while serving the communities and the customers.

如你所知，我們每年在第三季電話會議上會宣布下一輪的成本節省。我可以告訴你，在發電公司以及 BSC（Business Services Company，業務服務公司）內部，正進行大量的努力與應變規劃。現在——如果我們維持目前的機組組合，我們要如何以更具經濟性的方式來運作？我們如何運用科技？此外，財務組織、人資、法務及其他組織也投入大量工作，以不同的方式看待這個世界。我們大概會在第三季——第四季宣布下一輪。我看一下 Dan，確認我回答得對不對，因為這是他負責的，他正在對我揮手。所以是在第四季電話會議。不過——到那時我們也會對核電機組的未來壽命有更清楚的圖像。而如果我們處於不幸必須退役電廠的模式，你可以想像，BSC 的間接費用會大幅下降，依照修訂後的麻薩諸塞公式，這些節省可能回饋給客戶。我不一定會說這會讓他們有更多空間去花資本。我們投入的資本是為了可靠度與客戶服務所需的資本。但它應該——如果——它應該能讓客戶受益，並在我們持續精進如何以更低成本、更好、更快的方式完成工作、保持高度效率、同時服務社區與客戶之際，減輕公用事業的部分間接費用負擔。

There's one thing we've learned during this pandemic. Our real estate footprint may not have to be as big as it is right now. We are very efficiently working with about 17,000 people working remotely. And there's a group right now that's assessing not only a safe reentry around the 1st of the year for some portion of the workforce that's not on the line and maintaining the system or the plants or backing those individuals up. But we will take a very strong look at all expenses around and footprint around facilities. We've closed the books with the controller's organization, only having a few people come in for a couple of days. And audit has maintained its schedule and it's in-depth audit programs. So we're doing a lot, and we're learning a lot, and I think that's going to translate into more savings as we go forward. But looking at Dan again, I guess I'm not going to be committal on the time. But they're all squirming around me right now. I'll -- we'll be back to you at the end of the year with outlook.

在這次疫情期間，我們學到一件事：我們的房地產據點規模可能不必像現在這麼大。我們約有 17,000 人遠端工作，運作得非常有效率。現在有一個團隊正在評估，不僅是針對明年年初左右讓部分員工安全回到辦公場所——那些不在第一線、不是在維持系統或電廠運作、或支援這些同仁的人員——的安全復工安排。我們也會非常嚴格地檢視所有與費用及設施據點相關的支出。我們在結帳時，控制部門只需要少數人進辦公室幾天就完成了。而稽核也維持其時程與深入的稽核計畫。所以我們做了很多，也學到了很多，我認為這會在未來轉化為更多節省。不過我再看一下 Dan，我想我就不對時間做出承諾了。但他們現在都在我旁邊坐立不安。我——我們會在年底帶著展望再回覆你。

I would now like to turn the call back over to Chris Crane. Please go ahead, sir.

我現在想把電話會議交回給 Chris Crane。先生，請繼續。

Yes. No. Thank you all again for joining the call. I want to thank you for the time. I really want to thank our employees for their commitment and dedication. As you can imagine, onboarding 1,200 and contractors onto a nuclear site with all the site employees on deck, going through testing and screening and answering the questions and still getting stuff done at world-class performance and efficiency, our Utilities maintaining the highest levels of reliability. And right now, we've got 200 folks, 100 ComEd employees and 100 contractors, driving across the country to support our eastern Utilities for outages. So I think they arrived today. And so the willingness and the dedication is fantastic.

是的。不。再次感謝各位參加這次電話會議。我想感謝你們撥冗。我也非常想感謝我們員工的承諾與奉獻。你可以想像，在核電廠區讓 1,200 名員工與承包商到職，同時所有廠區員工全員到位，進行檢測與篩檢、回答問題，並且仍能以世界級的績效與效率把事情完成；我們的公用事業也維持最高水準的可靠度。而此刻，我們有 200 位同仁——100 位 ComEd 員工與 100 位承包商——正開車橫跨全國，去支援我們東部公用事業的停電（outage）作業。我想他們今天已經抵達。所以這種意願與投入真的非常了不起。

I hope that you and your families are safe and healthy. And with that, I'll close out the call.

我希望你和你的家人都平安健康。那麼，我就結束今天的電話會議。

Thanks to all our participants for joining us today. This concludes our presentation. You may now disconnect, and have a good day.

感謝所有與會者今天加入我們。本次簡報到此結束。您現在可以斷線，祝您有美好的一天。