With the addition of Pepco Holdings, the six utilities now under the Exelon Utilities umbrella and the leadership of Exelon Utilities CEO Denis P. O’Brien, serve approximately 10 million electric and natural gas customers in the greater Chicago area and across a large section of the mid-Atlantic, from Atlantic City to the District of Columbia.
With the expanded utility network in 2016, there were increased opportunities for sharing best practices among the utilities to advance operations and provide even more reliable, efficient and safe service. Our utilities all delivered best on record or best in class performance for several important metrics. PECO and ComEd both performed in the first decile among industry peers for reducing outages. ComEd’s results were best on record and best in class. PHI’s outage frequency was also best on record. BGE achieved its best performance ever for outage duration, while ComEd and PECO’s performance in that area was in the first quartile. All the utilities continue to demonstrate top quartile performance in several customer operations metrics. BGE, ComEd and PECO saw excellent results for the Customer Satisfaction Index, having all achieved best on record and top decile performance.
Another significant operational success was the completion of training across PHI to enable the seamless movement of crews among the utilities to support emergencies. The strength and scalability of the Exelon Utilities’ management model enabled a more efficient transition for PHI.
The Exelon utilities continued to develop new and improved tools to enhance the customer experience, including more intuitive websites and additional options for reporting outages and receiving updates on service restoration.
With smart meters installed across most of the service area, customers also are receiving more and better data on their energy use patterns in order to better manage their bills.
The utilities also continued to invest in their local communities, supporting programs and partnering with nonprofit organizations that change lives. From helping give a fresh start to homeless families to leading STEM initiatives to sponsoring arts and cultural experiences for people with limited access, the Exelon utilities and their employees have helped to strengthen their communities by giving back.
Headquartered in Baltimore, BGE is led by CEO Calvin G. Butler Jr., and serves approximately 1.3 million electric customers and more than 670,000 natural gas customers in Baltimore City and all or part of 10 central Maryland counties.
As the first gas utility in North America, BGE was proud to celebrate its 200th anniversary in 2016. The innovative spirit of the company’s founder is ever present today, as BGE continues to innovate, introducing practices and tools to improve reliability and service.
Through its infrastructure investments and the sharing of best practices within Exelon, BGE delivered its fourth consecutive year of record performance in electric service reliability. When customers did experience an outage, power was restored in an average of 87 minutes, down from 91 minutes in 2015. The average length of a service interruption has declined by 36 percent since 2012. In 2016, the company also marked the replacement of 100 miles of gas mains over the first three years of BGE’s STRIDE accelerated natural gas system modernization program.
BGE also unveiled new tools to improve the customer experience, including a user-friendly bill with easy-to-understand information on energy consumption and related charges, and expanded notification options, enabling customers to receive information about service, billing and other programs via email, phone and text messages. Along with the improved reliability performance, these enhancements helped contribute to BGE’s highest customer satisfaction rating on record.
In its bicentennial year, BGE also recommitted itself to the development of a stronger central Maryland. The company established and continued to nurture programs that helped recruit and train local candidates for careers with the company, promote inclusive business partnerships and support regional economic growth.
The Smart Energy Workforce Development program helps build a pipeline of utility trainees from BGE’s service area, which helps our company and the local economy. Through partnerships with vocational schools and workforce development organizations, BGE helps students build real-world experience and learn different trades. In 2016, BGE increased the number of paid summer internships in the trade fields and provided support for trainers and students with preparation courses for utility industry skills tests.
BGE also continued to provide support to new and expanding businesses that create full-time jobs in the region through the Smart Energy Economic Development (SEED) program. SEED provides program participants discounts on natural gas and electric connection and usage costs. By the end of 2016, 23 businesses were approved for incentives and are expected to contribute more than 3,200 new jobs in Maryland. BGE’s spend with diverse contractors increased to 27 percent in 2016, a doubling of the percentage from the start of the decade.
BGE closed the milestone year by establishing three legacy gifts to the service area, including a program that will provide nine annual scholarships, the installation of 100 mosaics throughout the community and the construction of a state-of-the-art youth development ballfield with the Cal Ripken Sr. Foundation.
The legacy gifts were in addition to another acclaimed project that left a striking impression on the Baltimore community: the completion of three large murals on storage tanks located at BGE’s Spring Gardens facility. The murals depict iconic Maryland images — blue crabs, thoroughbred horseracing and the Star Spangled Banner — which serve as new and welcoming additions to the skyline at one of Baltimore’s major gateways.
As BGE begins its third century of service in central Maryland, the company will continue to move smart energy forward by reliably and safely delivering natural gas and electricity, investing in modernization and innovating to meet the evolving needs of our communities and customers.
Based in Washington, D.C., Pepco Holdings (PHI), is one of the largest energy delivery companies in the mid-Atlantic region. Led by President and CEO David Velazquez, PHI employs more than 4,600 people to serve 2 million customers through Pepco, an electric utility serving Washington, D.C., and suburban Maryland; Delmarva Power, an electric and gas utility serving Delaware and parts of Maryland; and Atlantic City Electric, an electric utility serving southern New Jersey.
With the successful completion of the merger in March 2016, the combined PHI companies began delivering a package of customer and community benefits worth more than $460 million across its service area. Benefits include customer bill credits, job training programs, contributions to community organizations, energy efficiency programs and more.
The company is also on target to meet its commitment to shareholders, achieving 2016 targets and remaining on track to realize forecasted savings. Each of the three utilities have implemented the Exelon Management Model and are now sharing best practices and resources to improve reliability, storm response and customer service.
First incorporated in 1896, Pepco provides safe and reliable energy to 856,000 electric customers in a 640-square-mile service territory covering parts of Maryland and the entire District of Columbia.
Pepco earned a number of high-profile awards in 2016 for performance as well as customer and employee engagement. The Smart Electric Power Alliance named Pepco the “Utility of the Year” for its work making it easier, faster and less expensive for customers to access solar energy. The EPA honored Pepco with its ENERGY STAR® Partner of the Year – Sustained Excellence Award, and the utility was also named among “America’s Best Employers 2016” by Forbes for providing a rewarding workplace for the company’s more than 1,400 workers.
Pepco’s District of Columbia and Maryland customers have been able to see several early benefits of the 2016 merger, including rate credits and energy efficiency discounts. In the first three months following the merger, District residents received $14 million in one-time direct bill credits and a one-time elimination of residential customers’ unpaid bills that were more than two years past due. Maryland residents received $26 million in bill credits. Overall, Pepco and Exelon have committed to providing $78 million worth of benefits to District of Columbia customers and $130 million worth of benefits to Pepco Maryland customers.
The utility also continued its commitment to improving reliability, including meeting target metrics for reducing the frequency and duration of outages in the District. From 2012-2016, Pepco customers in the District have experienced a 19 percent drop in the frequency of outages and a 26 percent decrease in the duration of outages. Pepco Maryland customers have experienced a 22 percent drop in the frequency of outages and a 35 percent decrease in outage duration.
Pepco also made more than $3.6 million in charitable donations to District and Maryland nonprofit organizations.
For the sixth year, Pepco helped customers conserve energy and reduce household electric bills through strategic tree planting. Pepco provided 1,350 free trees to residential customers in 2016. Since 2011, Pepco customers have received more than 13,000 free trees thanks to the partnership between Pepco and the Arbor Day Foundation.
First incorporated in 1909, Delmarva Power provides safe and reliable energy to more than 500,000 electric customers in Delaware and Maryland and approximately 131,000 natural gas delivery customers in northern Delaware.
Delmarva Power also maintained its strong record of reliability in 2016. Over the past five years, customers in Delaware have experienced a 13 percent drop in the number of power outages and a 31 percent increase in the speed of restoration. Over the same period, Maryland customers experienced a 29 percent drop in power outages and 43 percent increase in speed of restoration. In addition to improved reliability, the utility's Delaware customers are receiving more than $73 million in merger-related benefits, which include rate credits, energy efficiency discounts and other provisions that benefit customers and the communities we serve. Delmarva Power Maryland customers are receiving more than $43 million in benefits as a result of the merger.
Delmarva Power also invested more than $1.2 million in the communities it serves, while employees logged almost 1,800 volunteer hours. The utility continued to help customers become more energy efficient, and was recognized by the U.S. Environmental Protection Agency (EPA) with a 2016 ENERGY STAR Partner of the Year – Energy Efficiency Program Delivery Award for the utility's outstanding efforts to increase Maryland customers' use of energy-efficient products.
ATLANTIC CITY ELECTRIC
First incorporated in 1924, Atlantic City Electric provides energy to 550,000 electric customers across a 2,800-square-mile service territory in southern New Jersey.
Atlantic City Electric delivered strong reliability performance in 2016, meeting all of its targets to decrease the frequency and duration of outages. From 2011-2016, the utility achieved a 33 percent decrease in the frequency of outages, and a 35 percent improvement in duration of outages.
In December 2016, Atlantic City Electric and Exelon executives joined New Jersey Gov. Chris Christie to announce an additional $56 million in benefits from the merger, bringing the total benefits to customers and the state to $126 million. The expanded benefits included more funds to support energy efficiency programs to help New Jersey customers save money, workforce development initiatives to fund or expand job training and additional assistance to help residents in need pay their utility bills.
The utility also ramped up outreach efforts to educate customers about how to receive financial assistance with energy bills. In 2016, the outreach team made more than 100 visits to local community and senior centers, grocery stores, hospitals, libraries, schools and community events to answer questions and distribute information.
Atlantic City Electric also donated more than $1 million to New Jersey nonprofits, while employees donated more than 4,000 volunteer hours.
Headquartered in Baltimore and led by CEO Joseph Nigro, Constellation is Exelon’s competitive wholesale and retail business. The company supplies power, natural gas and energy products and services for homes and businesses across the continental United States. Constellation's retail business serves approximately 2.4 million residential, public sector and business customers, including more than two-thirds of the Fortune 100. Its wholesale electricity supply business provides energy to utilities, municipal co-ops and energy retailers nationwide, managing the sales, dispatch and delivery from Exelon’s portfolio of more than 32,700 megawatts of contracted and owned power generation.
In 2016, Constellation grew its power and gas business, delivering approximately 205 terawatt-hours of power and 1.6 trillion cubic feet of gas to wholesale and retail customers, up from 195 terawatt hours and 1.42 trillion cubic feet in 2015. The company further solidified its position as the top retail power supplier and remains one of the top 10 natural gas marketers in the United States.
Constellation successfully completed the acquisition of ConEdison Solutions’ retail electricity and natural gas business, adding more than 560,000 commercial, industrial, public sector and residential customers across 12 states and the District of Columbia, growing Constellation’s retail business to 2.4 million customers.
In 2016, Constellation began supplying power to Wynn Las Vegas resort in Nevada. The agreement represents Constellation’s entry into supplying competitively procured wholesale power in the Nevada market.
The company completed solar projects for businesses, schools and public sector customers, including a 400-kilowatt project for the Baltimore Ravens’ headquarters and training facility in Owings Mills, Md.; a 9.3-megawatt project for Amphitheater Public Schools in Tucson, Ariz.; and a 13.8-megawatt project for Mohave Electric Cooperative in Fort Mohave, Ariz.
At the same time, Constellation continued to deliver innovative energy products and services that meet customers’ demands.
Innovation is the catalyst that drives our business forward. One example is Constellation and Bloom Energy’s completion of an 800-kilowatt fuel cell-powered microgrid system that will help manage electricity costs and supply emergency power for a neighborhood in the City of Hartford, Conn. During non-emergency operation, the system is designed to provide 100 percent of the electricity for a local school, library, senior center and health center. In the event of an electrical grid outage, the system will also provide emergency power to a local fuel station and grocery store.
Constellation continued to leverage its technology ventures group to invest in innovative companies that represent the future of energy and bring to market new technologies for customers. The company offered business customers the opportunity to install new products, including electric vehicle charging stations, demand management software and automated energy management controls.
Among the new product innovations the company launched in 2016 was a carbon-free product that is being piloted for commercial power customers in regional transmission organization PJM, matching electricity purchases with Emission Free Energy Certificates created from Exelon’s nuclear fleet.
Through Constellation’s Efficiency Made Easy program, customers saved more than 48,000 MWh of electricity and prevented more than 24,800 metric tons of carbon dioxide emissions. The company also procured 2.97 million renewable energy certificates on behalf of energy supply customers in 2016, saving 1.54 million metric tons of GHG emissions and supporting the use of renewable power generation.
Additionally, the company announced a partnership with Sunrun, the largest dedicated residential solar company in the United States, to offer Constellation residential electricity customers in Massachusetts, Maryland, New Jersey and New York the opportunity to install Sunrun solar energy systems on their homes.
On the public sector front, the company was awarded a $170 million, 23-year energy savings performance contract to implement energy conservation measures and distributed generation that will enable the Marine Corps Logistics Base in Albany, Ga., to reduce energy use, increase energy security, and meet energy demands from renewable sources. The project includes the installation of an 8.5-megawatt biomass-fueled, steam-to-electricity (STE) generator, high-efficiency transformers, lighting and boiler upgrades, system controls for a landfill gas electricity generator, and centralized monitoring and operation of electricity generation and distribution for the base.
In the community, Constellation contributed nearly $4 million to non-profit organizations, including $400,000 to energy education projects through the company’s E2 Energy to Educate grant program, reaching 35,000 students nationwide. Employees volunteered more than 27,000 hours in support of education, community and economic development programs, while continuing customer and employee engagement efforts.
Headquartered in Chicago, ComEd is led by President and CEO Anne R. Pramaggiore and serves approximately 4 million customers across northern Illinois, or about 70 percent of the state’s population.
ComEd joined with Exelon Generation to mark a significant event for our customers, our company and the Illinois environment and economy: the passage of the Future Energy Jobs Bill in December 2016. The groundbreaking legislation will pivot Illinois to the new clean energy economy, saving and creating thousands of clean energy jobs and providing job training for the future workforce, while also creating signifi cant consumer and environmental benefi ts. The Future Energy Jobs Act (FEJA) takes effect on June 1, 2017.
Meanwhile, ComEd’s customers benefi ted from the company’s 2016 achievements in reliability, customer service, and innovation. ComEd reduced outage frequency by 15 percent year over year, marking the best-ever service reliability record for ComEd and notably best among all utilities nationwide, according to Electric Benchmarking. When outages did occur, the company responded more quickly and effi ciently, thanks in part to new reporting channels, including Twitter, a first for the utility industry. Using smart meter “ping” technology, ComEd was able to respond to outage reports by dispatching 29,000 fewer crews than would typically be needed, creating operational savings that were passed along to customers. ComEd’s smart meter outage reporting functionality was named “Program of the Year” for Customer Engagement at the 2017 DistribuTECH Conference. The company was also recognized by the Smart Grid Interoperability Panel (SGIP) for its Hosting Capacity Analytic Tool, which is able to calculate the hosting capacity of more than 800 feeders.
In 2016, ComEd was named both the “Most Improved Utility” and “Brand of the Year” by Market Strategies International. These accolades were supported by all-time highs in customer satisfaction ratings, as well as innovative new customer offerings like Personalized Reliability Reports and the ComEd Marketplace.
ComEd’s grid modernization efforts were also the foundation of a new community partnership in 2016. In February, ComEd leadership was joined by Chicago Mayor Rahm Emanuel for the grand opening of the company’s Chicago Training Center. The Center was specially designed to educate and train our workforce of the future on the technologies of a modern grid, and provides new opportunities to area students. ComEd expects more than 4,000 employees will receive training at the facility annually and more than 6,000 members of the public will visit the facility each year for educational tours.
Two other educational initiatives are creating new STEM opportunities for students. The company’s annual Icebox Derby, which provides teen girls from across the Chicago region with a hands-on STEM experience by turning recycled refrigerators into electric race cars, added solar education and panels in 2016; in addition to winning a best practices award from Chartwell, the Icebox Derby program received national recognition through a report in the Wall Street Journal, as well as extensive coverage in local and industry news outlets. ComEd also launched in 2016 a new STEM program, Solar Spotlight, to teach high school students about solar energy, STEM pioneers in African American and Hispanic communities, and future career opportunities in STEM.
With the closing of the Energy Infrastructure Modernization Act (EIMA) and the passage of FEJA, ComEd continues to shift to the future utility model that will help create a clean, custom energy system. The law signifi cantly expands energy efficiency scope and funding and aligns utility and customer interests toward less energy use and a clean energy future by changing the utility business model, so that ComEd can invest and earn on energy efficiency, just like it does with wires and poles. It also helps to jumpstart the growth of renewable energy in Illinois, setting the stage to grow enough solar and wind energy to power one million homes.
ComEd recently began a Community Energy Storage pilot – the first installation in the country – designed to improve the system through battery technology and was also recently awarded a grant from the U.S. Department of Energy to develop an advanced microgrid controller.
Led by President and CEO Craig L. Adams and headquartered in Philadelphia, PECO is Pennsylvania’s largest electric and natural gas utility, advancing smart energy initiatives to provide safe, reliable, affordable and clean energy to 1.6 million electric and 517,000 natural gas customers across southeastern Pennsylvania.
PECO’s performance in 2016 continued to place the company among industry leaders in the areas of safety, operations, innovation, customer experience, environmental stewardship and community commitment. As a result, PECO was named one of the top utility brands in the East by Market Strategies International. These achievements were made possible by PECO’s dedicated workforce, and the company is particularly proud of the employee votes of confidence that led to Forbes Magazine naming PECO the 2016 “Best Employer in the Country” in the midsize utility category.
PECO’s continued focus on innovation and investment in technology and enhanced infrastructure – half a billion dollars in 2016 – helped the company meet customer expectations by providing them with the safe, reliable, affordable and clean energy they have come to expect. The company’s 0.77 outages per customer was the eighth best in PECO’s more than 135 year history, and the company distinguished itself by achieving an average restoration time of 88 minutes. In all, PECO kept service on for customers 99.987 percent of the time, which ranked in the top 25 percent in the industry nationwide. The investment in infrastructure included the company’s $274 million “System 2020” plan to install advanced equipment and reinforce the electric system, making it more weather resistant and less vulnerable to storm damage. The results of this work were evident when the blizzard of 2016 – the fourth largest snowstorm in Philadelphia’s history – dropped nearly 30 inches of snow on the region. The three-day event resulted in only scattered, short-term power outages for customers.
In 2016, PECO also replaced nearly 45 miles of natural gas main, part of the company’s commitment to advancing the modernization of infrastructure. Through the PECO Smart Natural Gas Conversion program, the company is also expanding natural gas service to meet growing customer demand. This effort includes a reduction in customers’ upfront cost of establishing natural gas service and a pilot program to reduce the cost of extending gas mains to neighborhoods where natural gas is not currently available.
PECO has nearly completed the installation of more than 1.7 million smart electric meters and 525,000 smart natural gas meter modules, and customers continue to see the increasing benefits of these technologies, including better, faster service, and more valuable energy and money saving tools. Since the launch of PECO Smart Ideas – the company’s award winning suite of energy efficiency solutions – customers have saved more than 2.6 million megawatt hours of electricity and realized $600 million in savings. The operational efficiencies have also been beneficial to customers, as they are able to start, stop or move service faster than ever before. Since the start of the new meter installation, PECO has performed more than 1.2 million remote connections and disconnections, avoiding more than 230,000 truck rolls. Smart meter technology also helps PECO monitor for outages and restore service even faster following significant storm events.
Safety is our highest priority, and PECO achieved record safety performance for a fifth consecutive year. PECO also received the American Gas Association Industry Accident Prevention Award, as well as Pennsylvania Energy Association’s Safety Achievement, Safety Sustainability and Motor Vehicle Fleet Safety Improvement awards.
PECO also achieved record residential customer satisfaction results, ranking for the sixth year in a row in the top 25 percent among large utilities in the eastern United States. The company’s 2016 customer experience enhancements included the implementation of a text, email and phone alert system, a two-way texting program, a website upgrade and new billing and payment options that provided customers with anytime, anywhere connection to their accounts.
Building on Exelon’s commitment to sustainability and community investment, PECO also marked several environmental, community and regional economic achievements during the year. PECO joined Exelon as the official zero-carbon energy provider of the Democratic National Convention (DNC) in Philadelphia. In April, the company achieved Leadership in Energy and Environmental Design (LEED) certifi cation from the U.S. Green Building Council at its Main Office Building – the 12th PECO building to secure the coveted environmental certification. PECO was also recognized by the U. S. Department of Energy and the U.S. Environmental Protection Agency, for helping businesses operate their buildings more efficiently and as an ENERGY STAR Partner of the Year, respectively.
Site Selection Magazine also named PECO as one of the country’s 10 best utilities for economic development and for the second year in a row, the Eastern Minority Supplier Development Council named PECO its Corporation of the Year.
Led by President and CEO Kenneth Cornew, Exelon Generation is the largest competitive power generator in the nation, with owned generating assets totaling more than 32,700 megawatts of capacity. Exelon’s power generation fleet is one of the cleanest in the country and includes 19,457 megawatts of owned carbon-free nuclear energy and 13,263 megawatts of natural gas, hydroelectric, wind, solar, landfill gas and oil energy.
Exelon Generation owns and operates the largest fleet of nuclear plants in the United States, which in 2016 included 22 reactors at 13 facilities in Illinois, Maryland, New Jersey, New York and Pennsylvania. The fleet generated more than 153 million megawatt-hours of zero-carbon electricity in 2016. Exelon Generation is an active partner and economic engine in the communities it serves by providing jobs, charitable contributions and tax payments that help towns and regions grow.
Exelon’s nuclear fleet is a long-standing industry leader in operational excellence, as well as reliability. Its owned nuclear facilities achieved a capacity factor of 94.6 percent in 2016, marking its 17th consecutive year above 92 percent. Strong operations performance resulted in meeting the dispatch match goal of 97.2 percent and a wind and solar energy capture goal of 95.6 percent in Exelon’s Power fleet.
Exelon Generation has an industry-leading safety record; in 2016 these plants operated with only one recordable injury during 1.9 million hours worked.
Exelon Generation helped to secure the future of five of its nuclear facilities through policy changes in Illinois and New York recognizing nuclear power’s clean energy benefits. These policy reforms prevented the premature closures of the Quad Cities and Clinton nuclear plants and resulted in Exelon Generation’s purchase of the James A. FitzPatrick Nuclear Power Plant. Exelon Generation also began the process of seeking second license renewal for the Peach Bottom Atomic Power Station in Pennsylvania, which would extend the plant’s life to 80 years. None of these successes would have been possible without employees’ continued focus on running the plants at industry-leading safety levels and operational performance.
In 2016, Exelon Generation added clean and reliable generating capacity in key markets, helping states meet growing customer demand, achieve emissions reduction goals and support local jobs and economic development. On the renewable energy front, the completion of the Bluestem Wind project in Oklahoma added approximately 198 megawatts of clean energy to the grid.
Exelon Generation continued construction on two new combined cycle gas turbine units at the existing Wolf Hollow and Colorado Bend stations in Texas and performed the first firing on the Wolf Hollow unit in December. These two units will add approximately 2,200 megawatts of reliable energy to Exelon Generation’s fleet when completed. Progress also continues on development and permitting for a 195-megawatt expansion of the West Medway Generating Station in Massachusetts.
Exelon Business Services Company (BSC) is a wholly owned subsidiary of Exelon Corporation that provides governance, oversight and a wide range of support services throughout the Exelon family of companies. The senior leaders of BSC are Chief Enterprise Risk Officer Paymon Aliabadi, Chief Human Resources Officer Amy E. Best, Executive Vice President of Corporate Operations Bridget Reidy, Chief Financial Officer Jonathan W. Thayer, and Chief Strategy Officer William A. Von Hoene Jr.