Exelon’s Transmission Security Agreements: A Pioneering Model for Customer Protection

As energy costs rise, Exelon is pioneering innovative protections designed to get electric costs under control for families and small businesses. America needs more transmission to power growth, from large data centers to electrification, but the demand from that growth should not unfairly shift costs to residential and small business customers. That’s why Exelon is deploying new Transmission Security Agreements to insulate smaller customers from the costs of bringing big energy users, such as data centers, online.

The Big Picture

A Transmission Security Agreement (TSA) is a customer protection that requires large new power users like data centers to make firm financial commitments for the transmission service that the grid must be ready to provide. At the same time, TSAs allow local energy companies to step up and deliver the infrastructure needed to power innovation and economic growth while continuing to support reliability for all customers.

Where Things Stand

Exelon now has nearly 10 TSAs in place across its local energy companies – with more being reviewed by the Federal Energy Regulatory Commission – making this approach one of the most advanced and nuanced customer protection tools in the industry.

How Transmission Security Agreements Work

• Places an emphasis on the grid we share The grid is a shared network, and the TSA is about ensuring large new customers pay appropriately for using that shared system, both now and as we continue to invest in it.

• Puts financial responsibility in the right place TSAs ensure that companies are responsible and can pay their fair share.

• Keeps reliable growth in focus They support reliable growth while helping ensure larger customers are discouraged from speculative, “phantom load” requests.

Why It’s Different

By using TSAs, Exelon is flipping the script by getting large load customers like data centers to have “skin in the game.” TSAs can serve as a model that puts an emphasis on accountability, transparency and a way to keep bills as low as possible. Ultimately, they can help ensure that only serious, committed projects move forward while reducing expensive projects that could shift costs onto families and small businesses.

What’s Next

Exelon plans to continue using TSAs as a key tool as energy demand increases, especially from large new loads like data centers. We’ll keep working with regulators to refine innovative solutions that protect customers while strengthening the grid.

To learn more about how Exelon is advocating and supporting customers, visit the Exelon Promise page here.