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Exelon Sells Stake in Five California Power Plants to IHI Corporation

Company divests its share in fossil and biomass plants acquired in recent merger


CHICAGO and TOKYO - Exelon Corporation today announced that it has closed on the sale of its ownership share of five California power plants - a total of 70 megawatts (MW) of generating capacity - to Tokyo-based IHI Corporation. The power plants joined Exelon's generating portfolio following the company's merger with Constellation in March 2012.

"The sale of these facilities is part of Exelon's long-term growth strategy," said Exelon President and CEO Christopher M. Crane. "By selling assets that are not consistent with that strategy, we can better focus on positioning our generation portfolio for the future."

The five California power plants include:

• Chinese Station (biomass) in Jamestown, in which Exelon owned a 9.9 MW share;
• Rio Bravo Fresno (biomass) in Fresno, in which Exelon owned a 12 MW share;
• Rio Bravo Jasmin (coal) in Bakersfield, in which Exelon owned a 17.5 MW share;
• Rio Bravo Poso (coal) in Bakersfield, in which Exelon owned a 17.5 MW share;
• Rio Bravo Rocklin (biomass) in Lincoln, in which Exelon owned a 12 MW share.

IHI acquired Exelon's 50 percent stake in the four Rio Bravo power plants and 45 percent stake in the Chinese Station plant. Exelon Power, a business unit of Exelon, operated the plants prior to their sale. As a condition of the sale agreement, IHI offered positions to all Exelon Power employees at the five facilities.

"This is an important step in establishing IHI as an owner and operator of renewable energy projects," said Mikio Mochizuki, IHI Corporation Executive Officer and CEO of IHI INC. (USA), the company formed to oversee the portfolio of five California power plants. "These plants have an experienced workforce and a strong record of safe and efficient operation. This acquisition forms a solid platform for IHI's further expansion into the energy services business in North America, which is a key element of our global growth strategy."

IHI plans to hire all of Exelon's O&M personnel at the five plants and commence operations of IHI Power Services Corp. (IPower) as an O&M services provider in the U.S.

The Federal Energy Regulatory Commission designates the five power plants as "qualifying facilities," a distinct class of commercial renewable energy generating facilities of 80 MW or less. All of the plants have power purchase agreements with investor-owned utilities.

Terms of the sale are not being disclosed.