Exelon Corp (NASDAQ:EXC) Q4 2016 Earnings Conference Call - Final Transcript
Feb 08, 2017 • 11:00 am ET
Good morning. My name is Stephanie, and I will be your conference operator today. At this time, I would like to welcome everyone to the Exelon Corporation 2016 Q4 Earnings Call. [Operator Instructions]
Thank you. I would now like to turn the call over to Dan Eggers. Please go ahead, sir.
Daniel L. Eggers
Thank you, Stephanie. Good morning, everyone, and thank you for joining our fourth quarter 2016 earnings conference call. Leading the call today are Chris Crane, Exelon's President and Chief Executive Officer; and Jack Thayer, Exelon's Chief Financial Officer. They're joined by other members of Exelon's senior management team, who will be available to answer your questions after our prepared remarks. We issued our earnings release this morning along with the presentation, both of which can be found on the Investor Relations section of Exelon's website.
The earnings release and other matters which we discuss during today's call contain forward-looking statements and estimates that are subject to various risks and uncertainties. Actual results could differ from our forward-looking statements based on factors and assumptions discussed in today's material and comments made during the call. Please refer to today's 8-K and Exelon's other SEC filings for discussions of risk factors and factors that may cause results to differ from management's projections, forecasts, and expectations.
Today's presentation also includes references to adjusted operating earnings and other non-GAAP measures. Please refer to the information contained in the appendix of our presentation and our earnings release for reconciliations between non-GAAP measures to the nearest equivalent GAAP measures. We have scheduled 45 minutes for today's call.
I'll turn it now over to Chris Crane, Exelon's CEO.
Christopher M. Crane
Thanks, Dan, and good morning to all. Thank you for joining us. 2016 was a monumental year for Exelon, and I'm very proud of what we have accomplished. We made great progress in the ongoing transformation of our Company, while delivering on our commitments. We performed well financially. Our 2016 GAAP earnings at $1.22 and our non-GAAP earnings were $2.68, landing near the top of our original guidance range of $2.40 to $2.70.
At the utilities, we benefited from a hot summer and low storm costs. At ExGen, the nuclear fleet had its best performance year on record. And at Constellation, the team executed very, very well. In 2016, for the first time, our regulated utility, less the holding company, earnings represented more than half of the total earnings and is consistent with our goal for the utilities to be growing the majority of our EPS. And we've implemented a dividend growth strategy of 2.5% annually through 2018.
In March, we closed on the acquisition of PHI, adding $8.3 billion to our utility rate base and creating a significant geographic footprint covering the Mid-Atlantic region. The integration of PHI is going better than planned, helped by our experience with BGE. We are working our way through the first of the two cycles of catch-up rate cases at the PHI utilities. We're seeing additional opportunities to help and improve the business