Title: Exelon Secures Over $1 Billion in Customer Protections Through Transmission Security Agreements
Exelon has reached a significant milestone in its effort to protect electricity customers from rising energy costs by securing more than $1 billion in customer protections through innovative Transmission Security Agreements (TSAs). The agreements are a key part of the company’s broader Exelon Promise, an initiative focused on keeping energy bills as affordable as possible while ensuring that the growing demand for electricity does not place an unfair financial burden on households and small businesses.
The milestone comes at a time when the U.S. electric power sector is experiencing unprecedented growth in demand. Rapid expansion of artificial intelligence, cloud computing, data centers, advanced manufacturing, transportation electrification, and broader economic development is placing increasing pressure on the nation’s electric grid. While these industries bring investment and job creation, they also require significant amounts of electricity and new transmission infrastructure to support their operations.
Exelon’s Transmission Security Agreements are designed to address this challenge by ensuring that large new electricity users contribute financially toward the transmission infrastructure needed to serve them. Rather than allowing these costs to be spread across existing residential and small commercial customers, TSAs require large-load customers to commit to covering the projected costs associated with their transmission service requirements before major grid investments begin.
According to Exelon, the agreements have already secured more than $1 billion in customer protections, reducing the risk that families and small businesses will ultimately pay for transmission projects that primarily benefit large industrial or commercial customers.
The company believes this approach represents a proactive solution to one of the most pressing issues facing the energy industry today. Electricity demand is increasing much faster than new generation and transmission infrastructure can be built, creating supply constraints that contribute to higher energy prices.
Exelon President and Chief Executive Officer Calvin Butler said customers continue to express concern over rising energy bills, and the company shares those concerns.
He emphasized that while electricity demand continues to climb and power supply struggles to keep pace, Exelon remains committed to protecting customers by keeping delivery costs as low as possible while ensuring the electric grid remains capable of supporting long-term economic growth.
According to Butler, the Transmission Security Agreements form one of the central pillars of the Exelon Promise by ensuring that major new electricity consumers contribute fairly toward the infrastructure required to meet their energy needs instead of shifting those costs onto existing customers.
The initiative reflects Exelon’s broader strategy of balancing economic development with customer affordability.
Large-scale facilities such as hyperscale data centers can require hundreds of megawatts of electricity, often equivalent to the demand of entire cities. As more of these facilities seek to connect to the electric grid, utilities must invest in new substations, transmission lines, transformers, and related infrastructure.
Historically, utilities faced challenges when customers requested significant transmission investments but later delayed projects, reduced their electricity requirements, or canceled development altogether. In such cases, existing utility customers could ultimately bear the costs of infrastructure that was built but not fully utilized.
Transmission Security Agreements are intended to reduce that financial risk.
Under the agreements, large new customers commit to providing revenue assurances before Exelon undertakes significant planning and construction activities. These commitments provide greater certainty that transmission investments will be supported financially by those who directly benefit from them.
Exelon noted that the agreements are filed with the Federal Energy Regulatory Commission (FERC) and remain subject to regulatory review and oversight. This process ensures transparency while helping establish a consistent framework for allocating transmission costs fairly among customers.
The company believes the agreements provide important safeguards against situations where expensive transmission upgrades are initiated for projects that ultimately fail to proceed as originally planned.
As demand from industries such as artificial intelligence continues to accelerate, utilities across the United States are increasingly evaluating how best to integrate large electricity users into the existing grid while maintaining affordability for traditional customers.
Recent actions by FERC indicate growing regulatory recognition that utilities need mechanisms to manage the financial risks associated with connecting very large electricity loads.
Federal regulators have increasingly focused on developing policies that encourage timely grid expansion while ensuring that new customers remain accountable for the costs associated with their service requirements.
Exelon stated that its TSA framework aligns closely with these emerging regulatory principles by promoting fairness, financial responsibility, and efficient infrastructure planning.
The agreements also support more predictable utility investment decisions. With greater confidence that transmission costs will be recovered from the customers driving new demand, Exelon can better plan and prioritize grid modernization projects.
Reliable transmission infrastructure remains essential as the energy transition continues.
Electrification of transportation, industrial operations, and building heating systems is expected to significantly increase electricity consumption over the coming decades. At the same time, renewable energy resources, battery storage, and distributed energy systems require robust transmission networks to move electricity efficiently across regions.
Utilities therefore face the dual challenge of expanding grid capacity while protecting customers from unnecessary cost increases.
Exelon says the Transmission Security Agreements help address both objectives simultaneously.
The company also emphasized that while it plays a critical role in delivering electricity safely and reliably, many components of customer energy bills remain outside its direct control. Wholesale electricity prices, fuel costs, capacity markets, government policies, taxes, and regional transmission expenses all influence the final amount customers pay.
Within the areas it can control, however, Exelon says it is committed to identifying opportunities to reduce costs, improve operational efficiency, and strengthen customer protections.
The Exelon Promise extends beyond Transmission Security Agreements and includes several complementary initiatives aimed at maintaining affordability.
These efforts include providing direct customer assistance programs, pursuing operational efficiencies throughout the organization, negotiating additional customer protections, collaborating with regulators and policymakers, and supporting long-term solutions that address the structural causes of rising electricity prices.
Company leaders acknowledge that increasing electricity generation remains essential for improving long-term affordability.
As electricity demand continues to outpace available supply, expanding power generation from a diverse mix of energy resources will be necessary to stabilize prices and ensure reliable service.
Butler noted that additional generating capacity is needed across the electric system to help reduce energy costs over time.
However, he emphasized that Exelon is not waiting for future generation projects to come online before taking action.
Instead, the company is implementing measures today that protect existing customers from bearing infrastructure costs created by rapidly growing electricity demand from large commercial and industrial developments.
This proactive approach reflects Exelon’s belief that affordability and economic growth can advance together when cost allocation policies are structured fairly.
Transmission Security Agreements also provide greater certainty for developers planning major investments.
By establishing financial expectations early in the project development process, both utilities and customers can make more informed infrastructure planning decisions while reducing uncertainty surrounding transmission investments.
As data center construction, advanced manufacturing facilities, and electrification projects continue to expand across Exelon’s service territory, the company expects TSAs to become an increasingly important component of grid planning.
Exelon also continues to work closely with regulators, policymakers, large customers, regional transmission organizations, and other stakeholders to implement the agreements consistently across its operating companies.
The utility believes collaboration will be essential for creating a sustainable framework that supports continued economic development while maintaining reliable electric service and protecting existing customers from unnecessary financial burdens.
By securing more than $1 billion in customer protections through its pioneering Transmission Security Agreements, Exelon has established an innovative model for balancing infrastructure investment with customer affordability. As electricity demand continues to accelerate across the United States, the company views these agreements as an important tool for ensuring that those driving new transmission investment contribute appropriately while helping preserve affordable, reliable electric service for millions of families and small businesses.
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