Energy costs are rising for many reasons, but the core dynamic is simple – demand for energy is skyrocketing, and new supply isn’t being added fast enough. When supply is tight, the price utilities like ours pay for electricity goes up, and those higher costs are passed through to customers at cost, without markup.

Without meaningful action to add new power generation to the grid, supply prices will remain high, and customers will continue facing higher costs. To bring long-term costs under control, we are advocating solutions that expedite new power generation and expand competition so utilities like us can create the energy customers need.

We know higher energy costs are hard for families and businesses to manage, which is why finding solutions to lower costs is a top priority. Every day, we’re working to provide meaningful assistance, protect customers from unfair cost impacts, and push for long-term solutions that help keep costs as low as possible. That includes delivering $60 million in relief to customers who need help now, establishing clear guardrails with data centers so their growth and infrastructure needs don’t increase regulated distribution and transmission charges for customers, and tackling the underlying supply challenges that are driving costs higher. This is a complex issue, and we’re addressing it from every angle because supporting the communities we serve is our responsibility. That’s the Exelon Promise.

Exelon and our local utility companies buy electricity on behalf of our customers to power the grid, and those supply costs are passed through at cost. As supply prices have reached historic highs in recent years, the cost of securing enough power for our communities has risen sharply.

Supply costs are set through auctions overseen by the regional grid operator, PJM. It’s important to understand that while we do not control these prices, and we do not profit from them, we are working every day to advocate for solutions that will bring them under control. 

Today, electricity is produced by private energy companies and purchased by utilities on behalf of customers under state laws and regulatory requirements. Because those companies earn more when supply prices are high, the current market isn’t adding new power fast enough, discouraging new generation, driving up costs, and increasing the risk of outages. This dynamic isn’t working for the families and businesses we serve, which is why we’re advocating for policy changes that allow utilities to compete and generate the energy needed to better control costs for customers.

To bring new energy supply online, we need to expand opportunities to all entities that are committed to build power generation to do so. Allowing utilities like ours to create the energy that’s needed controls costs, provides for more public oversight, and ensures reliability for customers who depend on the grid.

The need for additional power generation resources is intense, and renewable and clean sources are important in creating the energy we need. Maintaining and introducing a mix of energy sources will help close the supply gap and control costs.

Exelon is exploring and investing in smart battery storage solutions that help improve affordability by storing energy when it’s plentiful and using it during periods of peak demand. By capturing excess power and deploying it when it’s needed, battery storage reduces strain on the power grid and can lower costs. These types of technologies and solutions are essential to maximizing our use of available resources and controlling costs for customers.

Utility‑generated power adds new energy supply under public oversight, helping reduce costs and strengthen reliability. An analysis shows this approach could save customers $9–$20 billion, lower the risk of outages, and provide more stable bills over time – while including strong protections to ensure customers only pay for prudent, necessary investments.

Exelon’s $60 million Customer Relief Fund was launched to enhance available support for those in need throughout the communities where we operate. The Fund has supported more than 100,000 customers across five states and the District of Columbia and represents our commitment to supporting the families and businesses we serve.

Efficient energy use helps control costs. Exelon’s local utilities offer energy efficiency programs that help customers understand and manage their energy use. Through their local utilities, customers can access tools, tips, and incentives — including home energy check‑ups, weatherization, and state‑supported programs — that help homes and businesses reduce energy use, improve efficiency, and manage costs. For more information, visit your local utility website.

If you need immediate support, Exelon’s local utilities offer bill assistance and flexible payment options. This includes relief for eligible customers, personalized self-service tools to find assistance, payment arrangement and budget billing programs, as well as federal assistance programs.

Data centers and the increased adoption of AI search platforms and chatbots are increasing demand for electricity, which puts pressure on energy supply and can drive up costs. That’s why we’re working with policymakers, community leaders, and large energy users to ensure the supply impacts of new demand are addressed by those driving that demand — not shifted onto customers or local communities. This includes establishing clear guardrails so new large‑scale energy use is accountable for the supply solutions it requires.

Like all customers, data centers pay for the energy they consume. Because they are large energy users, data centers also make a significant contribution to the transmission system through existing rate structures, helping support the overall transmission revenue requirement. At the same time, we work to ensure that any new infrastructure needed to serve large‑scale energy users is planned and implemented in a way that protects everyday customers from unfair cost impacts.

Data centers are customers, just like homes and small businesses. Our responsibility is to provide safe, reliable service to all customers while protecting the communities we serve. When working with data centers and other large energy users, we put agreements in place that help ensure their growth does not unfairly shift costs or increase rates for existing customers, while also supporting reliable planning and investment for the transmission system as a whole.