Inside Exelon CEO Calvin Butler’s $41 Billion Bet And The Impact on The U.S. Electricity Grid

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0:39Only at McDonald's for a limited time. Price and participation may vary. Promotion pricing may be lower than meal pricing. You're talented, but you always have to work hard. Because hard work beats talent every day when talent stops working hard. I love that quote. And it's the worst Calvin Butler heard at a young age and on a baseball field, and it literally fueled him to become the highest-ranking CEO in the utility space. And in a minute, we'll be talking business with Calvin Butler, you're in the Enterprise Zone at the NASDAQ.

1:14Hello, everyone. It's Jabari Young, senior writer at Forbes, you're in the Enterprise Zone at the NASDAQ market site. And I have a special guest here at the NASDAQ, and his company's traded here, so he has to come back and always talk to us. Calvin Butler, he's the president and CEO of utility company Exelon. It is the largest utility company in the nation, serving markets in Chicago, Pennsylvania, Delaware, District of Columbia. Calvin, thank you so much for the time, brother. I appreciate it. Thanks for having me. Good to see you. Yeah, you as well, man. You as well. Well, listen, you know, again,$41 billion market cap.

1:46That's what Exelon is. And you're trading right here on the market on the NASDAQ. Former Forbes BLK listed, too, in 2024, too. So congratulations on that. Thank you. But welcome back. because I know you've been here before. I have, and it's good to be back, man. And thank you for the invitation. Yeah. And it's always good to see you. Man, listen, I've been trying for a while. You're a hard man to get to. Really? Yeah. You're a CEO. I'm going to have to work on that. You're a hard man to get to, man. But you know what? I get it. Again, CEO of a top company, man. But, you know, before we dig into all that, some of you were here was 2025, right?

2:16Yes. When you celebrated 25 years at Exelon, right? 25-year anniversary for Exelon. Exelon was formed in 2000, which was the combination of Commonwealth Edison out of Chicago and Pico out of Philadelphia. That merger created Exelon, and we had an opportunity to come here and ring the bell. And when I tell you how special that was, not just from my leadership team, we had a group of employees that had been here 25 years or more, part of this company. And for having them stand there with me to ring the bell was amazing. Was that your first time? It was my first time ringing the bell. Yes, it was.

2:49I closed it twice, man. It is exhilarating. It is. It is. You get caught up in the moment. But it was special because it was an appreciation of the journey. And I always tell my team, and we're just getting started. Yeah, I tell this, and, you know, when you have all those cameras on you around the world, watching you either open or close the market, like, it's a once-in-a-lifetime thing. It really is. Yeah, yeah. Before we start talking business, man, how's the family? Family's good. You know, it's, they still tolerate me. As you know, the grind is real. Yeah. You travel three or four days at minimal a week.

3:25And the fortunate part is the kids are grown, 31 and 28, and they're doing their thing. We're expecting our first grandchild in January. So praying everybody's healthy. So things are good. Man, you look like a 30-year-old and already you got a grandchild. I'm going to roll with that. Thank you. Thank you. Man, I mean, listen, you still got that youthfulness in us, but man, you're ready to be a grandfather. Ready to be a grandfather. Man, are you ready for this? No. But I better be. There you go. That's it. I heard, you know, I have a daughter, and they always say, well, the best thing about grandkids is you can love them, and then you can send them on back home after you're done.

4:01Excited. Because, as you know, man, there's no blueprint or book on how to be a good parent. That's right. So it's that trial and error. You try to do what's right, and you get to do it. Grandparents, you get to do it again. Yeah. And you get to part a little wisdom along the way, but you get to love unconditionally. And I think that is exactly what my wife and I are looking forward to. And you see your bloodline continue. Yes, yes. It's an amazing thing. I know you follow the stock market because you have to. I have to. Your company is traded on the NASDAQ. But tell me, what type of investor is Calvin Butler?

4:33How do you build your portfolio? I believe in long-term growth. I'm not into the day-to-day trading. I believe in buying companies and investing in companies that are going to be here for the long-term and delivering value. I believe in investing in companies that I believe in. I'm not about the quick buck, and that's how I run Exelon, from a standpoint of we are a long-term value, believe in what we do and how we show up in our communities, and I want investors who say the five to ten year, don't get caught up in the quarterly, because that's when people start making short-term decisions, and it will never create long-term value.

5:12Yeah, I love it. Soundtrack to 2026. There's a lot happening this year as we sit here in the fall, midterms right around the corner. But ups and downs, the ebbs and the flows. But what's keeping Calvin Butler motivated? What's in your ear? What's the music you're listening to to keep you motivated as a CEO? It's funny you ask that because it's a difference, right? When you start your day, you need a little something different. When you're ending your day, you want to get back into the mindset. So when I start my day, I like a little T.I. I like motivation. Yeah. Every once in a while, I got to put a little Kendrick Lamar on there.

5:48They're not like us. You know, just remind you, getting into this grind. That's right. But when I wind down, my pastor, who is in Chicago, Smokey Norfolk, he has a great song that is really foundational. It's called Once in a Lifetime. Okay. And it's just a spiritual connection with me because as a young kid growing up in St. Louis, I remembered all the big dreams. Yeah. And one of the lines that anchors you in is that, I had my own idea of fame, but it really means nothing if you're not grounded in your faith and who you are. And that's what that song just brings home. And I actually start as I'm getting to it.

6:31That's what I play. But then you've got to get pumped up again as you get ready to go into battle, right? So that's it. Yeah, so it's a little bit of some turn-up music in the daytime. That's exactly right. I love that. It was another entrepreneur I was talking to down in Virginia, and he says every morning he starts his day off with Kurt Franklin, right? Because it reminds him that music, it boosts you up, and you understand that, hey, no matter what the challenge is, we can get over it. And that's mine with Smokey. And we would talk every once in a while, and I'll say, man, I was just listening.

7:01And he just, you know, that's it. Because it is a grounding effect. Because what you recognize, Jabari, is it's not about you. That's right. It's about what impact are you making on others? And when you get ready to show up every day, that's it. You walk into a third grade class, Calvin, let's say it's in Chicago. You know, you got the CEO of Exelon. Come on, third grader might be like, who? Who is that? But you walk into this third grade class and they say, well, what is it that you do, Mr. Butler? How do you tell these third graders what the CEO of Exelon does for a living? Well, so can I tell you a quick story?

7:32Because I'm in a kindergarten preschool class in Baltimore on this day. and I walk and I'm visiting this, touring this school and this young man sitting at a table with all his friends, five max. He looks at me and says, we were just talking about you yesterday. I said, really? He says, see look, and he was drawing a picture of Dr. King. So, you know, that's it, that's it. So, but if I go into that third grade class in Chicago, what I start off with is that first off, I keep your lights on in this great city every day. That's our company. And it's a great responsibility because the Chicago economy is one of the largest in the world.

8:21And I happen to be its CEO of not just the company, ComEd, but the company that owns ComEd. And I said, so my job every day is to keep the lights going so this community can operate at a high level. and that comes great responsibility. And there's so many jobs within our company that you can be interested in. And let me tell you what those are. And we start, I said, what are you interested in? Right? So we start those conversations because the whole goal, and I love how you said third grade, because in third grade, you start thinking about what you want to do. We're living, yeah. And, you know, a lot of kids, you know, especially if you're in sports, I said, okay, so what happens if you don't make it?

9:01What interests you in terms of your schoolwork and so forth? math, science, or I said, well, listen, there's all the different jobs that you could do within ComEd, and you can build a career off of it. Is any of those interesting? So I just start planting the seed, because that's powerful when you get them to think broader than just what they see in their communities or their neighborhoods, and that's what I love. Yeah, yeah, I mean, listen, there's not too many people, again, in the energy space that looks, you know, people of color, but that's a great segue, man. How's the business at Exelon?

9:31You know, you look, The pin on of the day, the stock is up, the stock is down. Listen, Calvin, I am a customer because I'm an electric guy, and I'm a shareholder as well. In my Roth, there is some excellent stock. But you look at it, you're the CEO. How's the business going as we talk here nearly October of 2026? The business is good. As I say that to you, the fundamentals are solid. The stock price, I wish it was much higher. But I tell you this, is that in the given year, we're trading in line, but I think it's an underappreciation of the value. Because X-Line, as you know, we serve some of the most diverse, as you laid out, diverse jurisdictions in the largest cities in the country.

10:12But we're pure TND. We don't own the generation part of the bill. So we haven't experienced the level of growth that some of my utilities, pure utilities that own the generation get to experience with the data center trade and everything else. So the T &D, pure regulated T &D, is not experiencing that boom. But at the same time, nothing operates without the grid. And when we're in the grid business, that's what's exciting. So the fundamentals are well. Long-term plan is on point. nothing to get scared of or anything else, but we're focused on investing$41.7 billion. That's up for 38. That's up 10 % growth over the last four years in investing capital.

10:57In addition to that,$10 billion will be invested this year, and we operate the most reliable utilities in the nation. Think about it. My four companies are number one, two, four, and seven most reliable in the United States. So it's not only what we're doing, we're doing it well. And that is what I'm most proud of, the men and women who operate this business. Yeah, and for those people who may not know, the brands are from Exelon. You have Atlantic City Electric, Baltimore Gas and Electric, ComEd, as you mentioned, Delmarva Power down in Delaware, and Pico, as well as Pepco are the brands. So ComEd is the number one most reliable.

11:34Pepco Holdings, which is D.C., Delmarva, and Ace, is number two. BGE in Baltimore is number four. and Pico is number seven. And the goal is to be one, two, three, and four. And that's what the focus is every day. Yeah, one, two, three, and four. It can't be the way it is, one, two, three, and seven. No, no, no. We always strive for excellence. And the operators that run this business and the men and women on the line, they know what we're striving for. Well, people, you know, right now, I'm going through and I'm, you know, thinking about the conversation. And I'm thinking, I'm trying to put myself in your shoes.

12:09You have a very tough job right now. On the one hand, again, you're CEO of a publicly traded company. And so you've got the pressures of making sure that the stock and the company is growing from a revenue standpoint. You're behind the scenes talking to politicians because of rate increases and things that the company may want to do to invest. And then you have the public constituency who might not like Calvin Butler or Exelon because they see their electric bill and it's a little bit too high right now for a number of reasons. And, you know, data centers is obviously a main reason that we're using more electric than we ever have in the time of our history.

12:39because of all the technology, the cell phone chargers. How do you balance, you know, basically dealing with that? And I don't even mention the home and the family, right? You know you just got me tired, right? No, I tell you this. Your word balance is key. But that goes back to what we talked about earlier. You have to have the solid foundation. And what we ask ourselves every day is the strategy, the right strategy to serve our communities. If you answer yes, then you put the game plan in play. So to your point, all of those interests, and many, when you're doing it well, they're aligned. And when they're aligned, it's just a matter of how do you get everybody singing off the same hymnal and move forward.

13:23The first thing I do is I need to make sure my board, which I have an excellent board of directors, we're aligned to what we're doing. If I get that yes, then the team, this is how we're going to execute. and I have a wonderful team. And once we get that going, it's just a matter of executing each and every day. Don't take the big swings. Just operate steady, be there each and every day. So I would tell you the business, we're in a tough political environment because it's in vogue right now to go after the local utility. But what we also recognize is that they can't do it without us. There's not one governor who doesn't want job growth and economic development.

14:05It's not one customer that doesn't want a lower bill. But everyone gets focused on reliability. So now what we have to do is attribute what are the costs to continue and deliver that reliability. Because you can't do it without investing. So what we're trying to do is say, okay, what are the tradeoffs? What can we deliver you? What do you want for this amount of money? And that's what we're showing up. But I own some of this, too, right? I own this. So that's what we came out with our Exelon Promise, where we say, look, we're going to give you short, medium and long term decisions to make. But let's make them together because I'm not going to sit in my office and make them and they not meet your needs.

14:46So that's the conversation we're having right now. Data centers right now. I mean, that's that's a huge topic. Right. And, you know, I was just at the Future of Black Communities Summit that was down in D.C. and one lady stood up and she was almost in tears because her water bill is so high and her electricity bill is so high. I had a$460 electricity bill a month before. And so there is pain there. Again, I'm trying to look at it from both sides because I'm thinking like, okay, well, I'm using Claude and all this stuff needs to get powered, right? It is a tricky balance. But what is the latest that you're hearing from your constituents when you go in and talk to these individuals about what is needed on the data center front?

15:25Because, again, there's a lot of pushback right now. Communities don't want it because they think it's spiking their electricity, not thinking about the U.S. grid and all the power we are using. But again, data centers is the easiest thing to pick on, and people are picking on it. You framed it well because data centers are just a part of that growth. You know, we've onshore manufacturing. You are electrifying everything. You know, you've got your cars. You've got your – everybody has – I think the latest was the average home has 27 connected devices. So everything is being, so all of that is causing that spike increase.

16:01Yeah. But understand this though, it is basic supply and demand. If you have great demand, which the data centers are part of that equation, and inadequate supply, you're going to have high prices. Now going back to you asking about my business, I'm only, as a customer of mine in Atlantic City, understand this, I have nothing to do with the generation stack. The average increase of anyone's bill is 75 % of that is supply related. That's not, but you get my bill, so it doesn't matter the why. And no one cares how reliable you are if they can't afford to pay the bill. So understanding that debate of data center growth is at the center of it.

16:43Most people don't even understand the magnitude of what we're talking about. So let me give you an example. ComEd out of Chicago is the fourth largest utility in the nation. In 2024, ComEd had a peak demand of 23 gigawatts. By the end of 2030, ComEd's peak demand will be over 30 gigawatts. So you see, we're almost talking about doubling the largest, fourth largest utility in the nation. That's how much we're talking about. And one data center, a large data center uses one gigawatt of power, which is the equivalent of one nuclear reactor. So that's why prices are spiking. I believe people have a legitimate concern about price increasing, but I also believe there's something more into that, too.

17:29There's a fear of AI. There's a fear that data centers have not been working with the communities and they're showing up. Everything is being done. A lot of things are being done in secret. I believe we must be transparent. We were in discussions at the Congressional Black Caucus a couple of weeks ago, and we talked about if you're going to build a data center and community, It must be transparent about the what and the value proposition so that community benefits must be outlined so everyone knows what's going on. From an environmental piece, job creation, training, all of that. Because if you're doing it to a community and not with the community, you're going to have this level of pushback.

18:10Are you seeing that transparency amongst status? I mean, the narrative changing. Do they understand that, hey, you got to go into community and you guys got to talk and also talk about deliverables and what you're going to be able to perform? Now they are. They are now. Now they are. But think about where they started. They were data centers were just popping up. So you lost the narrative. We have been working with them, we being the utility industry, and they understand what they have to do now. But it took too long. And now they're on their heels trying to figure out how to get it out there.

18:41There are some who do it very well. and that's the model we're trying to get everyone to adopt. Yeah. A few months ago, I had pointed out in one of our newsletters, because, again, where I'm from Philadelphia, I know that you guys went through a rate increase ask up there. It did not pan out the way you wanted. Obviously, the governor there, Josh Piero, was very critical of it. You had came on and said, you know what, the messaging was bad. We did not do our part in explaining why we needed this, and so we'll pull back, right? What did you learn from that situation? Because I would imagine that you're going to have to go back and start asking for rate increases because that's just a part of the business.

19:16That's right. I was very clear to the governor, and I'll state it here, is that you can't not have us invest in the grid. And to invest in the grid, we will come forward to read cases. So where we made the error was that every time we go before the commission, we have conversations beforehand. So there's not one governor who's ever said, man, I cannot wait for you to file that next rate case. That doesn't happen. But you should never be caught flat footed about not understanding the value of that rate case. We did. We being PICO did not do the due diligence and the pre-work in meeting with the stakeholders to say this is what and the why.

19:56Just like I was saying with the data centers. You have to explain what you're doing and the benefits of what you're doing and what to expect to get real dialogue. When I found out we did not do those necessary steps, I had no problem pulling it because we have to take care of business. We're in discussions right now on a weekly basis with the governor's office and other stakeholders about what we're doing, why we're doing it. And so, yes, to your point, we will be filing again. And we haven't said when, but we will be doing it in a way where everybody understands the what and the why. Yeah. We were talking off camera about, you know, again, the status of U.S.

20:31electricity grid. Yeah. And, you know, I have mentioned to you when you were in Maryland, you had a session you were doing, one big idea. And you had talked about something I've been thinking about lately, right? Putting a solar panel on my house because of the transformation and how it looks, flowing power in opposite directions, right? And saying, okay, you have this solar panel on your house. Now you're providing energy to the electricity grid, right? To a point where the electricity company may be paying you because you're putting in it. You're thinking that, hey, this one big idea, if we can really get onto this and make this a part of our future, it will help alleviate the pressure from electricity grids as well as prices go down.

21:07You still believe it? I do. Think about where our grid has evolved. And we have the grid. The electric grid is one of the most complicated and marveled inventions ever. Because when you think about it, this grid was evolved, though, from one central supply. You build the wires, and it goes out. Now we're asking the grid to do something it wasn't intended to do, to bring that power flow bi-directional. So, for example, when you get those solar panels in your house, if you ever generate more power than you use, you can sell it back to the grid for others to buy that at a lesser price or back to the company so they have it.

21:47That's the whole intent. People are doing the F-150s. That's the intent. battery storage, solar walls. You know, that's the intent where the grid becomes multidimensional to serve a broader view of customers to increase the supply. Battery storage to indicate to take that wind and that solar in times of when you have peak sun, store it for later use to reduce the peak pricing. All of that is going to come into play. Technology will be an enabler. And my view is the more tech you get, the more you allow your grid to be utilized, it helps everyone. But here's the risk. And it's not a risk we can't overcome.

22:30The more technology you put on the grid, the less secure it is. So we have to stay on top of it because we know there's bad actors out there, and we just have to be cognizant and work with everyone to ensure that the grid is protected. Yeah. Again, you're facing a tough job, right? You have to always fight for the messaging of the company, making sure your constituents understand what's going on. But do you ever have to correct the narrative of what Exelon is and what it does? Because you always say we're a delivery company, transportation and distribution. We don't make energy. You guys are not allowed to make energy.

23:07Right. We only buy the take the energy and then transmit it. We're a delivery company. Do you find yourself having to maybe correct the narrative around X-Line in itself to let people know that who you guys really are? Pipes and wires. Every day. Every day. I use the example. It's like blaming your Uber driver for the price of food. Right. You know, he's like, hey, I'm delivering it to you. Yeah. And yeah, I may have gone up five or ten cents because the price of gas went up. Yeah. But that$40 steak, that's not me. But it goes back to no one cares. No. At the end of the day, people are saying, look, this is essential for my quality of life and the bill's too high.

23:46Exelon, what are you going to do to assist? So we're trying to put the customer at the center of everything we do. But to your point, people get lost in the details. So my job is to help out in that process. So that's what we're focused on. What's it like being CEO of a large utility company that's publicly traded? I mean, what is that like for you? How do you handle being a CEO of this company? I think about it every day, and I think about it every day, not from a pride perspective, but the responsibility. I'm truly blessed. And I say that from a standpoint. I know who I am. I know I'm a kid from North St.

24:22Louis. And I tell everybody all the time, I said, some special qualities, but I know you do too, so let's talk about what you need to do to get here. and I had a lot of people invest in me and believe in me when I didn't even know what they saw. So for me, every day, it's about how can I use this platform to deliver excellence in what I do every day, but also impact young people in the communities that we serve. So I show up. The energy level that I try to bring is that it's bigger than me, and I'm here for a period of time, And my job is to leave this company and its reputation in a better place than when I took it.

25:02And that's the focus each and every day. Again, you're the first black CEO running Exelon. Are you past that title, being the first black? I asked Sandra Douglas Morgan this up in Las Vegas, the president of Raiders, because she was the first black woman in that position. We are in 2026 now. And again, the ideology of the country has shifted from when we had George Floyd in that unfortunate situation with the unrest. But again, it was celebrated within 2022. I celebrated it on the BLK list in 2024. In 2026, are you past that or is that something you still wear in your sleep? I'm still the first black.

25:44No, you can't. It's who I am. And at the core, that's a representation that I'm proud to have. but it doesn't define what I do each and every day. So my job is that whoever comes after me, they're not going to be X. They're going to be like, did you take it higher than Calvin left it? And my job is to continue to build this company. So I'm very clear that I'm the first black CEO, but that's not the measure. The measure is, did I meet the targets? Did I deliver for my shareholders? Did I deliver for my employees? Did I build a team and create a company that has respect and operates with integrity?

26:26To me, that's not a color issue or a race issue. That is, are you a leader that's delivering far, meeting its objectives and delivering value each and every day? That's how I approach the business. But when I show up in that third grade class, they see me as a black CEO. When I have meetings with high schoolers and young men say, oh, I didn't expect this, then you know you're having a far deeper impact than just the numbers. Running a utility, I know how to do that. That's what I do. All the rest of it is who I am. And I embrace it and I understand it. And I may even put more pressure on me understanding that than others, but that's okay.

27:10That's okay. Yeah. Biggest positive surprise of being CEO? You named CEO in 2022, you know, running COO before Exalign. But, you know, you weren't new to the CEO position because you led Baltimore, you know, gas and electricity. I did. But biggest positive surprise now that you are running the entire company as CEO? I would say I get to sit back with people like you, you know, because, you know, you don't get these invitations otherwise, right? But I would say the biggest piece that I'm most proud of is that when you can look back on decisions made, that wouldn't have been made but for me sitting in the seat.

27:45That's how you know you're making a difference. But I can tell you the thing that hasn't changed. My wife and kids don't care. No. As soon as you walk in the door, you're confident in that. They don't care. And at the end of the day, like, look, man, you know you've got to take that trash out. You know, what are we doing this weekend? And but the blessing is the impact you can have on the communities is far greater by having the seat. And what I'm trying to instill is a culture of excellence and impact with an X line that will far outlive my tenure as CEO. Because people must see the value in showing up every day and what that means.

28:26because when you show up every day and you have an impact, it delivers to the bottom line. They're not disconnected. They're intertwined, so intertwined you can't separate them. And that's what I'm trying to instill. With positives, though, Calvin, there are negatives. What's been the biggest negative surprise of being CEO? We just talked about travel. I don't know if that's it or not, but what's been a negative surprise? You know, the biggest piece is that we have 20 ,000 men and women. And it's not a negative, it's a reality that you have to make some tough decisions that are impacting people's lives on a daily basis.

29:04And that's hard, man. And I would tell you this, is that when you go through, whether it's a workforce reduction or changing departments, you're changing, impacting people's lives. And I would say as a leader, if that ever becomes easy to you, it's time for you to step out of that job. You have to do it. You have to make those decisions. We will have eliminated a billion dollars in costs over a three-year period at Exelon. I've committed to taking out$350 million of costs in 2027, going to your point on the affordability issue. That's impacting people's livelihoods, and I understand that. But it's necessary to run this business because for every decision that's not made, it may impact three or four more people next year.

29:50So you have to make timely decisions, and I don't take those lightly. That's one. And I would tell you the second piece is that you get caught up in this time of political debate that people who you respect and trust know the reality, but the reality doesn't make headlines. So you get caught up in the story when they know it's not true, but it's politically expedient. Yeah. Balancing that and keeping that long-term view is difficult, but it's necessary. Yeah, I mean, it's just a lot of noise. I tell people you've got to see through the theatrics of Washington all the time. But what do you like as a leader?

30:34Like, how does Calvin Butler lead in these type of situations? What do you think your staff would say about you as a leader? I hope they would say that I'm steady, I'm consistent. Do you have Taco Tuesdays? No. You've got to get that in there, Calvin. No. Yeah. That means we've got to slow down to eat. That's true. You've got to eat. I would say, and I try to lead with empathy. It's probably not a strength that I flex much, but I try to come with I empower my team members to do their best, but then I hold them accountable for do so. So I would hope they would say those things about me, and I engage.

31:15I'm a hands-on leader. You are hands-on. I am hands-on. Why are you hands-on? because I have the view that I should never ask you to do anything that I'm not willing to do. So you're never going to outwork me, but I will trust you to do your job, and we will be aligned on how you do it, but then you're going to see me out grinding too. So when we talk about that travel schedule, it's not because I like to travel. It's because I need to add value back to the enterprise on doing what we do. So I will be everywhere trying to add value back to the business, but that's why I'm hands-on. Culture drives performance, and when you don't have that culture, it's always attention that's not healthy.

31:53You said that back on a podcast in 2025. Elaborate that a little bit because, you know, I found that to be very interesting. This is how much emphasis you put on culture. And if you don't have it, all that attention that's not healthy comes your way. I believe in a culture of excellence. I believe in a culture of excellence, meaning that if we're going to do it, we're going to do it to the highest level, or why do it? And maybe that's from my sports days. I don't know, you never show up to a field and not want to win. So, you know, we don't do that. So my view is that in every team member of the team needs to be aligned and the shared common goal of delivering excellence every day.

32:31Now, that requires people to check themselves and say, am I ready for this? And we've had to, different people have left the organization, not because they were bad people, but because the pace we were going to keep and the demand for excellence was going to be real. and we were going to hold ourselves accountable. As I ask you to hold me, you need me to hold you. That's what I'm referring to, is that everybody understands what the end goals are because if someone's shooting for average and everybody else is running to excellence, that's a problem because you're only as strong as that other team member.

33:03When I coached my son for all those years, I used to tell them all the time, you know, you can appreciate everyone has different levels of skills, but we were only going to be as good as that kid out there in the field that was not as quick or fast or strong, but if he couldn't do it and we weren't uplifting him, that was going to be the extent of our success. That's how we run the business. Yeah. Well, let's take a step back, right, because you learned that culture from somewhere. Again, you mentioned I grew up in northern St. Louis, Missouri. What was that like for Calvin Butler growing up in north St.

33:37Louis? It was, as a kid, you recognized that St. Louis was a great place to grow up because you didn't know much. You know, you just knew you had a loving family. Mom and dad divorced early, and we moved out from the city to the suburbs, North County, when I was going to kindergarten, first grade. I was one of only three black families' kids in the whole elementary school. But what I recognized, I was always accepted because I was halfway decent at sports. Sports was my tool to just blend in and made some good friends, and I always use sports as the gateway to belonging. Went through some of my best friends, one of my oldest friends is one of my high school classmates.

34:20And we still talk to this day. And I would tell you that then went back to St. Louis for law school at Washington University. So all my family was there, cousins. That's home. That's home. And I always believe that you can always go back home. That's right. But you notice I haven't chosen to. You're in Chicago. You better be in Chicago, man. So it's, so it, but it was, it was good. And, you know, in St. Louis, the number one question, no matter what you're doing in life, no matter how far you've been living across, what high school would you go to? Yeah. But what you realize in St. Louis, and it's the same question I also asked in Baltimore.

34:57And what I realized as I got older was, and they're asking them for different reasons, though. In Baltimore, they're asking because of a pride in the high school. in St. Louis they're asking to put it in so they can put you in an economic prism right to say oh okay you went to that you're the rich kid right that's very different but that was St. Louis and to this day I'm a I'm a CEO of a fortune 200 they still want to know what high school you go to because that's that's how St. Louis is and you don't get that it's a very myopic city great city but you don't get that when you're growing up you just know that's home yeah well your mom, you said she was a motivation and inspiration for you.

35:37This is where you get your people skills. She walked into the room and she can light up the room, right? God bless her life. You know, what does she do for a living? My mom worked for the federal government for over 30 plus years and I lost her when she was, she started there right out of high school. 47. 47 and amazing, amazing woman. She was in the IT area department without any formal education in terms of college and so forth, went and got her associate's degree. Just an amazing person, man. Became a Christian. I mean, just when I tell you my rock, and my wife always jokes, she was my best friend.

36:15It was not a day my mother and I did not speak, and that just checking in on her. So it was hard, but that was what she instilled. She never met a stranger. She engaged with you directly. When she was sick, I remember people were coming by the house to see her. She was asking how they doing. That was just the person she was. And she taught me the value of showing up and treating people with dignity, respect, and engaging with them. Yeah. And you say, you know, your dad, you credit him for your drive to achieve success, right? And again, I go back to that quote that, you know, I started to show off with, you know, when you were on the baseball field and he came up to you and he said, you're talented, right?

36:55But you always have to work hard because hard work beats talent every day, especially when talent stops working hard, right? What did your dad do for a living? What did you learn from him? So it's interesting. My dad, he worked at the Kincaid Power Station right outside Springfield, Illinois, that ComEd used to own. I lost my dad to prostate cancer when he was 67, so he never had a chance to see me being the CEO of the company that used to own the plant that he worked for. and I know he was proud. But my dad was, as I used to, when I gave his obituary, his eulogy rather, when I was speaking at his funeral, I said my dad wasn't user-friendly.

37:35You know, he was going to tell you what was always on his mind and be very direct with it and then be right. I used the story that I was cleaning out the house after he passed and I was on the front porch sweeping and one of his neighbors who I didn't know walked by and he said my dad's nickname was Butch He said, you butchered, son. I said, yes, sir. And he said, man, I loved your dad. I said, well, thank you. Thank you. He said, you know what I loved about your dad? I said, no, sir. He said, your dad could curse me out in the morning and ask me for a beer that afternoon. But that was my dad.

38:06Yeah. Because you always knew where you stood. Yeah. And he engaged with everyone. But he was, you know, you had to be tough. You couldn't show up and be thin-skinned with my father because he was, and I used to tell him all the time, I said, not everybody can receive it like that. He said, you'll be all right. so that that was just a James Evans vibe right now man you got I'm telling you he was he was real but what was so good about him though but for him I tell you I probably wouldn't have went to law school I I you know I would have been okay just having a job and he said no junior you gotta you gotta keep you know keep pushing what you know and he saw things in me because my mother would just wanted me to be happy dad was like no you got to stay in the grind you got to keep hustling And that's what you take from him.

38:52And that is the push me in sports, going back to that piece. If you're going to do it, do it. Don't halfway do it. I used to go visit him during the summer, and I used to think he saved up every chore until I got there. I said, man, what do you do when I'm not here? Because I was doing it. But his whole piece was I was going to teach you a work ethic. You were going to know how to show up. And that's what I took from my father. You come out of Bradley University, and you get offered a job from Procter & Gamble. And you turn it down. I talk to executives all the time. Some of them have went through the doors of Procter & Gamble and he always credit.

39:28They say Procter & Gamble taught me business. It taught me what made you say no to Procter & Gamble. I know you had law school and you eventually go to University of Washington school and law school in St. Louis. But turning down Procter & Gamble coming out of college, that had to have took some guts. It was a big decision. You know, keep in mind, I two summers with P &G, love the experience, learned a lot. Even in those two summers, I'd have been living at home, company car, you know, graduating. Yeah. But this is what I also know about myself. And I tell this to people all the time. You got to know who you are.

40:00And I knew if I graduated, I was never going back to school. I was, as I say, I was used to eating ramen noodles. So, you know, to have a taste of money after being used to being broke and then to say I'm going to go back to school, it would have never happened. And I credit my father and some people at Bradley for saying, you know what, you can do sales and be very good at it, but you got so much more to contribute. So, again, you can always do that, but keep your education. And that's the value of education, what I try to tell young people. Education will never hurt. And, again, you know, I graduated law school and never practiced in a law firm, but that education has been invaluable.

40:43and that I think for me is knowing myself was the biggest reason why I did that. Yeah, well, I mean, listen, again, after you got out of law school, you know, you go right off, start working. R.R. Dunley was one of the supply chain companies you worked for, obviously, and then ComEd went to printing, right, if I'm not mistaken. You're part of a printing service and you joined Exalign in 2008, spending, you know, over 14 years there, various duties against COO, CEO of Baltimore Gas and Electricity, CEO of Exelon Utilities and now CEO of the entire company. If you had to describe Calvin Butler's career in one word, what would it be?

41:18Blessed. Blessed. I truly would be. It would be, you wouldn't map it out this way. You wouldn't. But every step along that journey, I learned something new. I added another tool to my tool belt, and I just kept delivering. and had people trust in me and invest in me along that journey, and it's been amazing. And that's why I say blessed. Calvin Butler is still a believer in diversity. I know in 2024 it was reported$8 billion at Exelon spent with diverse suppliers. Two of that went to certified businesses, minority women, veteran, LGBTQ community, and it looks like Exelon is continuing that trend of diversity spend.

42:01You guys are still committed to that. We were doing it before it was sexy. So yes, we and we will be doing it because we believe it makes us who we are. We don't do it based on gender, racial. We do it because it makes us part of the communities in which we serve. Some of our best partners are women and minority owned businesses. We don't we're not handing anything. These men and women, they've run in a business that are delivering value, not only to Exelon, but the communities in which we serve. So we believe in investing in the communities. And when you look at the communities that we serve, they happen to be black and brown communities.

42:40And therefore, how would it look for me to show up in the communities that we serve and not have partners that look like that ecosystem? So do we believe in it? Yes. Does it make us better? Yes. Is it delivering to the bottom line? Yes. So that's nothing new for us. We started this, we never had a law mandating that we did anything. It is good for business, and the results speak for themselves. Yeah, you always say that diversity of thought is what's important, right? And if you take that away, then you're ruining my business because I made money from this diversity of thought. Take it away now, I'm going to lose money possibly.

43:15That's it. You don't have any pushback from the federal government or anything like that? I saw one contract from the Department of Energy, I think, got taken away or something like that, but you don't get any of that? What I would tell you is that we show up, we had to go through, we're always going to to be compliant with the law. That's first and foremost. We're not going to do anything that's non-compliant. So therefore, we had to go through, scrub our contracts, scrub how we show up, and do it. So now, when we look at doing business with our partners, it's all compliant, and we're doing it.

43:44So we just continue to show up and do what we do. JOHN MCWHORTER, Inside your investment portfolio a little bit, man, is there any investment that you still miss out on? Something that was offered to you, or a business pitch that you said no to, and you look back now, and you're like, man, I should have said yes to that. I will share this with you. I will give you the quote that my CEO, my mentor once gave me, and I asked him a very similar question as a mid-20 person when we used to own some businesses, spun them off, and then he didn't invest. He goes, if I look at those opportunities, if I would have jumped on some of those, it would have been a lot more that I should have passed on that I wouldn't have.

44:17So you have to have a disciplined approach. So I tell you this, is that there's probably some that I regret, but if I would have done those, I would have done a lot of others that would have lost me a lot more money. So that discipline is part of how we do it. So now I'm good. No, not at all. So are you, do you have any real estate? I do. I have too much real estate. I have too much. I'm trying, I'm trying to tell my wife now we need to get rid of it. Do you want to get rid of it? Any apartment building, anything like that? No, no, because going back, if you're going to do it, do it. And for me, I don't have the time or capacity as a family right now to do those things.

44:51So we tend to be not into that particular piece. We did have some early investments that we were able to move out of and cash out, which are great investments. I am an investor in an international football team, soccer. That's good. Which my son got me into it, so I'm hoping it'll be good, so come on. I mean, listen, sports teams are always a good investment. It is. Now, you know, Hines, I had a couple of opportunities along the journey to invest in some professional sports teams. It wasn't the right time. Yeah. It wasn't the right time, and hopefully those opportunities will come along later.

45:24Yeah. Well, before I let you go, Calvin, I know you're very busy. You're CEO of a top company, again, traded here on the NASDAQ. But I wanted to kind of dig into energy jobs. Please. Because we were talking about, you know, again, when you – I know it's yourself, Lloyd Yates, as well as Chris Womack that are CEOs of those particular utility companies. But you usually don't see people that look like us in these particular roles. but you're always an advocate of saying, hey, come over and look at jobs in our sector. You know, you have the engineering, the finance. You know, you go through the trade school route, and a lot of people are going to trade school route.

45:58Those are where your new millionaires are being created, electricians and things in the world. What opportunity, if I'm a young person right now coming out of either high school or college, and I want to look at Exelon to see what's there, where are you guys looking to hire? Where are the opportunities there for the future? For all of those things you just talked about, because the opportunities are endless. What I would tell a young person, whatever you do, let's find out what you're passionate about. And don't feel you have to go to college to get that done. But I would tell you, whatever you do, be a continuous learner.

46:28So we are all about creating family-sustaining careers. And in doing so, not just learning the trade, but owning the business. That's one. Two, man, I love my lawyers, my engineers, and my accountants. So again, we have opportunities. Find out what you're passionate about and what you can give your all to. And in the energy sector, there's great opportunities. Data scientists are a big piece. The person's ability to take data, analyze it, and turn it around, great. We need more data scientists. I would also tell you things that people, we're training people to be drone operators. Because, one, imagine once again, we're not going to roll trucks.

47:13We're going to have somebody pilot the drones to go look at the lines to assess the damage and the well-being of not only poles but the lines. So these are all skillsets. Are those the new jobs? Those are the new jobs. I was with several linemen about a month ago in Pico, and they had been in the job 30, 35 years respectively. They all had their iPad in front of them. I said, did you ever imagine you'd be doing your job this way without having to climb the pole, but you're assessing the data and the well-being of the grid on your iPad? And he goes, not at all. I said, so tell me how you learned.

47:51He goes, I went back to school. Your company trained me to do this. That's how much the jobs have changed. Imagine that wear and tear going up and down. Now these individuals, these men and women have their iPad, and they're assessing the health of the grid by looking at the data. Knowledge is key. And the young people, I think, now are digital natives, so this is even going to come easier for them. You still need to know how to get it done. But to be able to assess the information is critical. Yeah, I love it. Get you out of some fun stuff, man, because I know your travel schedule is busy, Calvin.

48:29You got stuff to do, dinners to go to, and all that good stuff. If I gave you 10 grand right now, not that you need it, right? Not that you need it. Your salary's public, and it looks like it's on my SLA. Oh, we're going to go there. Look at this. But if I gave you 10 grand, it would be a loan. But what's the first thing you invest in? Excellent stock. Excellent stock, of course. There you go. Excellent stock. All right. I figured you would say that. That was an out of the hole. Thank you. Calvin Butler's superpower, what is it? Building teams. Building teams. I love that. How do you build teams?

48:58Looking at the strengths of each individual and bringing it together. You know, I'm a football fan. and a Baltimore Raven fan, you don't win a game with 11 Lamar Jacksons. But you need a Lamar Jackson and you need a Derrick Henry and all the pieces around it to make it a team. And I think that's what I do. I understand what motivates and the people's strength, and I bring them together, and we get aligned and we go. Do you hate the Rams because they left St. Louis and they're back in L.A.? Being a born in St. Louis, you're a baseball Cardinal fan. Yeah, Cardinal. The Cardinal football was just there, right?

49:30So there you go. Yeah, so you're not mad at the Rams at all. Not at all. Not at all. Okay, that's fair enough. You look at, again, the utility sector, energy sector as a whole, Calvin. What does Calvin Butler see here in 2026 on to the end of the decade? How are we looking? I'm optimistic because I do believe we have, we operate the most reliable and resilient grid in the world. And I'm optimistic because I know the leaders that lead these companies, their commitment to doing the right thing and commitment to excellence. and I also believe we will continue to evolve and get better. So that's what I'm excited about our future in this industry.

50:07Optimistic. You did scare me a little bit, though, because I've seen in the Financial Times headline that you have predicted by, I think, next year or so that we could be seeing some blackouts across U.S. City. I mean, you still believe that we're headed in that direction? That quote and that's if we continue to operate status quo. Right. What I'm trying to get is the attention of our regulators and legislators to say, look, we're in a new time frame. We're in a new game. And you can't play by the old rules and expect a different result. So understanding the time that we're in with the demand growth and everything that's coming online, we can't operate in the same regulatory regime and think it's going to be okay.

50:53The grid is letting you know the warning lights are flashing, but we're not talking about it. And the challenge that we have with regulators and politicians is that they wait to make decisions until a crisis occurs. Too late. And that's what I'm saying. It's twice as costly, and people's lives are impacted. So let's make the decision now and get ahead of it, and that is what we're warning. The warning lights are on. Yeah, you always say it's almost like you're driving a car with a check engine light on and you want to keep driving it and thinking that it's just, you know, that check engine light is telling you something.

51:27And you know, you know, once it breaks down, it's going to cost you twice as much. My check engine light comes on, it's to the dealer the next day. And PJM, PJM has told us. Yeah. They're telling us, hey, it's time to pay attention. So let's work on this together. Yeah. Favorite AI app. We talked about data centers and all the power that it uses. Now let's talk about how you use that power. What's your favorite AI app? What do you? I like Siri. I do chat GPT. But I'm a novice. I'm a novice. I use the technology within the business. Yeah. But it's on the system. Yeah. And that's how we use it. You got to get into Claude, man.

52:02I know. Claude is phenomenal. And they tell me, they say, Calvin, if you're not using Claude to its fullest extent, it's still like writing your memos out with pencil. Yeah. And I will. Yeah, it's powerful. You got to get into that. You know, listen, fall is basically here. Winners come in. People are going to be in the house, snowstorms. Hopefully our power will stay on, Calvin. If you're an excellent customer, we got you. Yeah, I agree. That's how I am. I know you are. I know you are. So three books that inspire you to perform and motivate you to be your best. What would you say they are? Holiday season is coming up.

52:34Somebody might want to go out and buy someone a book. Gosh, I would tell you one of the first books I got when I became CEO was CEO Excellence. It was written by a McKenzie partner, maybe two of them. It was amazing. Just the read and breaking it down, that's one. Two, I would also say a book that was called Go Long, it reaffirmed the essence of why you make long-term decisions and create long-term value. Because it's so easy sitting in this seat to think about your business quarter to quarter because that's how we're evaluated. And as we started this conversation, telling the story of what we're creating and the why is, I think, one of the biggest things that that book taught me.

53:19And it reaffirmed what I always believed, and it's nice when you lean into something like that. It's the reason why Exelon, I believe, has the largest number of international investors. 28 % of our portfolio is owned by international investors because they have a long-term view of the business, and that's who Exelon is. And I would say my third one is one of my favorites. It's The Book of Joy. The Book of Joy is a personal read. It's an easy read. It was a New York Times, I believe, reporter who did an interview with Desmond Tutu. Essentially what it was talking about, living a life of gratitude.

53:54Right. And how you start every day and end every day in gratitude is amazing. And the Book of Joy is one of my favorites. Yeah, I love it. I love it. Well, listen, one of my favorite business books, Jim Collins is Good to Great, and so I will get you out of here on this. Calvin, I appreciate the time. What's the difference between a good utility company and a great one? how they show up in the communities that they serve. Everybody's responsibility to keep the lights on and the gas flowing, but how you show up each and every day to make a positive impact on the community is, I think, what separates the good ones from the great ones.

54:25Love it. Calvin Butler, you're talented. You work hard, right? And you're the first black CEO of Exelon. I really appreciate the time. And you've got to come back and talk more business because I'm sure the talk around data centers is not going away. There will be post-election, you know, speak about it and then all that good stuff. So please come on back and talk business. Anytime, man. And thank you for having me. Yeah, absolutely, man. Listen, you're a CEO of my power. I got to have you here, right? I go home, my power might not be on. I got you. I got you. Calvin Butler here at the NASDAQ market site.

54:56Always great talking to him. Data centers, good to great and all that good stuff. You're in the NASDAQ. Any enterprise zone now, you're leaving the enterprise zone. Thank you for watching. Thank you for listening.

55:32The Sausage McMuffin with Egg