Exelon has identified five long-term growth opportunities that will allow us to increase our scope and scale to succeed throughout industry cycles, as well as adapt our generation, transmission, delivery and marketing portfolio to the changing marketplace. These factors position Exelon for sustained value for years to come.
Nuclear Uprates
Nuclear uprates are safe, economical and proven methods to improve efficiency and output. Our incremental nuclear uprate plan provides a very attractive growth opportunity and supports the Exelon 2020 goal of reducing emissions and creating more low-carbon energy.
- The uprates give us the potential to add the generating output equivalent to one new nuclear unit at about half the cost and no incremental operating costs.
- Unlike building new reactors, the uprate program represents close to 20 discrete projects with off-ramps if future economics or state/federal legislation no longer support them.
- We face substantially lower execution risk compared to building a new nuclear unit on either a green or brownfield site.
Over the past 10 years, Exelon has already added the output equivalent to a new unit to our existing fleet by successfully completing various types of uprates. Our recent decision to pursue an early site permit rather than a construction and operating license for Victoria County reflects the greater risk of new build in our current economy.
Power Price Recovery
Exelon is positioned to benefit from the recovery in natural gas and coal prices, heat rates and demand growth. We believe Exelon Generation will benefit from the expiration of the power purchase agreement with PECO at the end of 2010.
Climate Change
Exelon has the lowest carbon intensity in the sector, there is a significant upside if and when legislation is enacted or regulations promulgated, and we continue to enhance our industry-leading position with Exelon 2020.
- Our carbon intensity, measured in metric tons of CO2 emitted per megawatt-hour (MWh) generated, is the lowest of all generating companies.
- Our low-emissions nuclear fleet is advantaged relative to coal-fired generation and the challenges in both cost and regulation that coal faces.
- Exelon's announcement about the future closure of fossil units at Eddystone and Cromby and Progress Energy's announcement that it is retiring about 1500 MW of coal-fired generation show that smaller and less efficient coal plants will be challenged by EPA's current and future regulatory actions.
- Since the release of Exelon 2020 in 2008, we have achieved more than 50% of our emission-reduction target, and we see a path toward accomplishing the rest regardless of the economic conditions. .
Moreover, because we know which components—like uprates and energy efficiency—are cheapest and create the most value, as well as which ones are relatively costly, we know where to focus our attention.
“Exelon 2020 is extremely important to me because it both demonstrates our continued leadership on climate change and adds to the value of your company by encouraging us to do more with a smaller footprint.”
Exelon Transmission Company
Exelon is leveraging our transmission expertise and created Exelon Transmission Company in 2009. This is a tremendous market opportunity as the U.S. is expected to invest $60-$100 billion in transmission over the next 10 years.
New transmission projects in our historic footprint and beyond will:
- Reduce congestion
- Improve reliability
- Facilitate the movement of renewable energy from the upper midwest and the Dakotas to population centers
- Mitigate oversupply
Investments in transmission would further enhance competitive markets that have brought real benefits to consumers and will present long-term growth opportunities for our shareholders.
Investments in transmission would further enhance competitive markets that have brought real benefits to consumers and will present long-term growth opportunities for our shareholders. Exelon Transmission Company leverages existing capabilities and offers a phased approach to disciplined, high-return growth.
Learn more at the Exelon Transmission Company website.
New Technology
PECO’s New Technology Investment. PECO’s $650 million technology initiative is one of the largest investments in the company’s more than 100 year history. This technology will help us more efficiently operate our system and provide future new products and services to our customers. Work is underway at PECO to install new metering technology for all of our 1.6 million electric customers during the next 10 years -- 5 years earlier than required under Pennsylvania law, thanks to a $200 million stimulus grant awarded by the US Department of Energy.
ComEd’s Smart Meter Program. ComEd launched a one-year smart meter and has already installed approximately 120,000 smart meters. The new meters provide customers with daily usage information online so they can monitor their energy use and manage costs. Customer service representatives can also access this information to answer questions about power status and billing without having to wait for a technician to visit.