Exelon floats up to $8B in utility-owned batteries to ease PJM shortfall

Exelon says its utilities could put $3B–$7B into regulated storage, plus a $1B New Jersey project, as PJM struggles to add generation.

On an Oct. 30, 2026 earnings call, Exelon officials said its utilities could spend $3 billion to $7 billion on 1.5 GW to 3.5 GW of regulated energy storage. That range leaves out a separate $1 billion, 500-MW project already proposed in New Jersey, so potential spending comes to about $8 billion.

The New Jersey project belongs to Atlantic City Electric and is being developed with Invenergy. It would be the largest battery installation in PJM Interconnection. CFO Robert Kleczynski said it is expected to deliver over $700 million in net customer benefits, through lower capacity prices and flow-through of investment tax credits. New Jersey, Maryland and Delaware allow utilities to own storage. CEO Calvin Butler said PJM is not adding generation fast enough, and called that the biggest issue for consumers in the Mid-Atlantic and Midwest parts of its footprint.

The reason this matters for abundance: when supply is tight, capacity prices rise and households pay for it. Storage built by regulated utilities, with tax credits passed to customers, is one route to adding capacity and holding down those costs. PJM's own backstop capacity procurement plan and Interim Resource Adequacy Service proposal were delayed after FERC approved them only in part, so utility-led options carry weight.

The caveats are real. The storage spending is potential, not committed, and the New Jersey project awaits a Board of Public Utilities decision expected late in the first quarter of next year. Exelon described utility ownership as one option alongside competitive development. Jefferies called the results and potential spending favorable but warned that regulatory uncertainty in 2027 may offset incremental earnings from new capex.

Source: Utility Dive