How PJM’s 765-kV Transmission Pick Could Reshape Exelon’s (EXC) Grid Role and Investor Outlook

• In December 2025, PJM Interconnection recommended Exelon, alongside NextEra Energy Transmission, to develop an approximately 220-mile, 765-kV high-voltage transmission line across Pennsylvania and parts of West Virginia, designed to move about 7 gigawatts of power with roughly half the transmission losses of current 500-kV lines.
• This project aligns Exelon with a major regional grid upgrade that could reinforce its role in supporting Pennsylvania’s multibillion-dollar power investment plans and West Virginia’s industrial ambitions.
• We’ll now examine how Exelon’s role in this large 765-kV transmission project could influence its investment narrative and future infrastructure opportunities.

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Exelon Investment Narrative Recap

To own Exelon, you need to believe in a regulated utility that can convert rising grid demand into a growing rate base while managing heavy capital needs. PJM’s recommended 765 kV project reinforces Exelon’s transmission pipeline and near term growth story, but it also underscores the key risk of mounting capital requirements and reliance on constructive regulatory and financing conditions, which could pressure free cash flow if approvals or funding costs become less favorable.

The most directly connected recent development is Exelon’s US$900 million convertible senior unsecured notes due 2029, issued under Rule 144A. This added fixed income financing sits alongside the potential 765 kV buildout and highlights how large transmission projects and grid modernization efforts can increase Exelon’s dependence on external funding sources, which ties back to the catalyst of expanding transmission investment and the risk of higher interest costs and tighter coverage metrics.

Yet investors should be aware that rising capital intensity and interest obligations could start to affect...

Read the full narrative on Exelon (it's free!)

Exelon's narrative projects $26.2 billion revenue and $3.2 billion earnings by 2028. This requires 3.3% yearly revenue growth and a $0.5 billion earnings increase from $2.7 billion today.

Uncover how Exelon's forecasts yield a $49.75 fair value, a 15% upside to its current price.

Exploring Other Perspectives

Four members of the Simply Wall St Community value Exelon between US$35.89 and US$50.00, showing how far opinions can diverge. Against that backdrop, the PJM backed 765 kV project and Exelon’s growing transmission pipeline raise important questions about future capital needs and regulatory cost recovery that readers may want to explore through several different viewpoints.

Explore 4 other fair value estimates on Exelon - why the stock might be worth as much as 16% more than the current price!

Build Your Own Exelon Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Exelon research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Exelon research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Exelon's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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