An “All of the Above” Approach to Securing Reliable Energy Supply

Across our service areas, Exelon is working to address one of the most pressing challenges of our time: ensuring reliable, affordable energy supply in the face of unprecedented demand growth. 

As Exelon President and CEO has said, “Customers have voiced very strongly that they're frustrated with high energy costs, and we are frustrated, too.”

The solution requires an “all of the above” approach that leverages every available option to bring both certainty and customer benefits to the communities that depend on us. While we know that work is being done at nearly every level of the public and private sectors to meet energy needs, when it comes to advancing solutions, urgency and potential shortfalls must be considered.

As an example, the Maryland Public Service Commission recently initiated a request for merchant-generator proposals for up to 3 gigawatts of new energy supply. While the process attracted several submissions, disclosed capacity levels have fallen short of the target. Meanwhile, PJM is advancing its Critical Issue Fast Path process to better accommodate new large loads, supporting states as they navigate historic levels of economic growth – both now and in the future.

Exelon is encouraged by the breadth of engagement in these efforts, and we look forward to solutions that ensure customers can rely on cost-effective power. But these steps – while necessary and important – may not be enough. 

The anticipated shortfall in supply is significant. Hoping markets alone will fill the gap puts too much risk on customers who depend on affordable energy to power their lives and manage local businesses.

States need to leverage every tool available: demand-side investments like energy efficiency, distributed and community solar, and storage – as well as options for utilities to own generation where appropriate. 

One step that can help is passing legislation to allow public utilities to generate their own energy. This would provide local jurisdictions with control and certainty that new generation will be built, enable them to choose the type of generation, and ensure cost-effectiveness. Combined with nonregulated markets, this approach would create a diverse, reliable supply that could meet growing demands while advancing the energy goals set by each state.

As EVP and COO Mike Innocenzo said, “Energy costs cannot be addressed without increasing supply, and regulated generation is one of our strongest tools for diversifying and growing the energy supply we need to power homes and businesses across the nation.”

The supply challenge is real. Exelon is working to partner with states to deliver solutions that meet their goals and secure an energy future for all.