Exelon Responds to Treasury Issuance of Corporate Alternative Minimum Tax Notice

Exelon acknowledged the U.S. Department of the Treasury’s issuance of a corporate alternative minimum tax (CAMT) notice that it says is intended to address energy affordability and support infrastructure investment. According to Exelon, the action could reduce customer costs by up to $200 million over four years and could make grid investments more cost-effective.

The company noted that this development coincides with the launch of its initiative called The Exelon Promise, which aims to address energy affordability and manage energy supply costs. Exelon said the initiative includes short-term customer support through its $60 million Customer Relief Fund, energy efficiency programs, negotiations with large energy users such as data centers, and policy proposals such as changes to the PJM price cap and utility-generated power. Exelon stated that the newly issued notice provides an additional opportunity to support its goals of maintaining reliable service and limiting energy cost increases.

Calvin Butler, President and CEO of Exelon said, “We appreciate the Treasury Department’s common-sense decision because we share customers’ frustration over high energy costs and we are looking at every meaningful solution to address them. Today’s action is one step toward addressing affordability concerns as it adds high paying jobs to the economy and helps secure the reliability and resilience of the grid.”

Exelon also described pressures on the electric grid, including aging infrastructure, growth in manufacturing and computing demand, and increased physical and cybersecurity threats. The company stated that these factors contribute to the need for continued investment to strengthen the grid and reduce the likelihood of service disruptions, while noting that customer bills and the risk of brownouts are rising amid growing demand and constrained energy supply.

The company recognized the leadership of Congressman Brad Schneider (D-IL) and Congresswoman Carol Miller (R-WV) for their work on bipartisan legislation related to the impact of CAMT on customer bills.