October 28, 2009
Exelon Generation and ODEC Sign 10-Year Energy Supply Contract
Exelon Generation today announced that the Old Dominion Electric Cooperative (ODEC) awarded it a ten-year contract commencing on June 1, 2010 to provide 200 MWs of baseload generation capacity and energy.
KENNETT SQUARE, Pa. (Oct. 28, 2009) – Exelon Generation today announced that the Old Dominion Electric Cooperative (ODEC) awarded it a ten-year contract commencing on June 1, 2010 to provide 200 MWs of baseload generation capacity and energy. ODEC awarded Exelon the deal as a result of a competitive bidding process it initiated in June 2009.
The long-term contract with ODEC fits squarely within Exelon’s hedging program designed to manage market risks to maintain the value of its generation portfolio. It also shows that there are opportunities for competitively priced long-term bilateral contracts.
“Liquidity and transparency in the wholesale competitive market drive these opportunities,” said Kenneth W. Cornew, president of Exelon Power Team, the company’s wholesale power marketing division. “This transaction adds a market-based outlet for Exelon’s low carbon-emitting generation while also helping ODEC to meet some of its supply reliability needs at a known price.”
“ODEC is pleased that our competitive bidding process has resulted in this agreement with Exelon Generation, a company with a long, successful history of generation-backed transactions” said Lisa Johnson, ODEC senior vice president of power supply. “This additional resource will help us meet our goal of continuing to provide low cost and stable wholesale power supply to our member cooperatives and their consumer-members for the next decade.”
Power Team values doing business with customers like ODEC that have exceptional credit ratings and financial stability. “We look forward to helping ODEC and other load-serving entities meet the needs of their customers into the future,” added Cornew.