CHICAGO - In support of its Exelon 2020 strategy to eliminate the equivalent of its 2001 carbon footprint by 2020, Exelon plans to invest nearly $5 billion in cost-effective, clean energy projects starting this year. The projects in Illinois, Pennsylvania and other states include energy-efficiency and Smart Grid programs, economic renewable energy investments, and increased output at Exelon's nuclear plants.
"We are committed to a clean and secure energy supply at the lowest cost to the communities and customers we serve and the markets in which we operate," said John W. Rowe, chairman and CEO of Exelon. "Exelon 2020 is a roadmap for advancing market-driven innovation and economic options."
Exelon's plans for investing nearly $5 billion between 2010 and 2015 in state and local economies will result in new material and equipment orders, engineering and construction contracts, and professional and technical service agreements. These investments will help support thousands of jobs, both at Exelon and its more than 5,000 suppliers.
"A clean energy portfolio, based on sound economics, creates compelling value and provides a clear competitive advantage," Rowe said. "Our Exelon 2020 analysis tells us which actions will provide our customers with clean, reliable and secure power in the most cost-effective manner, while also providing high returns for our shareholders."
Exelon is now halfway to achieving its goal to eliminate the equivalent of its 2001 carbon footprint by reducing, offsetting or displacing more than 15 million metric tons of greenhouse gas emissions per year by 2020. Reaching the halfway mark is equivalent to taking about 1.5 million cars off the road every year. Key initiatives under Exelon 2020 include:
- Energy-efficiency programs for ComEd and PECO customers and in Exelon's own operations, including cutting energy use at company facilities by 23 percent
- Increasing output of Exelon's zero-emission nuclear plants by 100 MW since 2008, with additional future uprates planned
- Investments in renewables, including purchasing a $900 million, 735 MW wind operation from John Deere and building a 10 MW solar plant on Chicago's South Side
- Smart Grid initiatives in Chicago and Philadelphia designed to give customers information and tools to better manage their energy use, starting with the deployment of 720,000 smart meters
- Retiring four inefficient, carbon-intensive fossil units in Pennsylvania that have a combined capacity of 933 MW
"With its Exelon 2020 strategy, Exelon has staked out a position as an industry leader in addressing climate change," said Mindy S. Lubber, president of Ceres, a coalition of investors, environmental groups and other public interest organizations focused on sustainability challenges. "The company has shown that it is economically feasible to make major clean energy investments that have a real, tangible impact on greenhouse gas emissions, and we encourage other utilities to follow suit."
Under Exelon 2020, the company conducts an annual analysis of the most cost-effective ways to reduce carbon emissions and the carbon prices needed to make these projects economic. This year, Exelon expanded its analysis to take a broader view on how the industry may respond, especially in light of upcoming EPA rules designed to drastically reduce power plant air pollution, and found that participants in PJM - the 13-state mid-Atlantic power market in which Exelon operates - can cut about 60 million metric tons of carbon emissions per year through energy efficiency, nuclear uprates, coal plant retirements and new natural gas generation.
"The question facing the United States is not whether it should reduce air pollution and carbon emissions, but how to do so affordably, especially in light of current economic conditions," Rowe said. "The pending suite of EPA regulations will help drive the transition to a cleaner energy future."
Read more about Exelon 2020
Download the complete Exelon 2020: 2010 Update with the PJM-wide analysis (PDF | 1.2 MB)
Forward Looking Statements
This press release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to risks and uncertainties. The factors that could cause actual results to differ materially from these forward-looking statements include those discussed herein as well as those discussed in (1) Exelon's 2009 Annual Report on Form 10-K in (a) ITEM 1A. Risk Factors, (b) ITEM 7. Management's Discussion and Analysis of Financial Condition and Results of Operation and (c) ITEM 8. Financial Statements and Supplementary Data: Note 18; (2) Exelon's Third Quarter 2010 Quarterly Report on Form 10-Q in (a) Part II, Other Information, ITEM 1A. Risk Factors, (b) Part I, Financial Information, Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations and (c) Part I, Financial Information, ITEM 1. Financial Statements: Note 13; and (3) other factors discussed in filings with the Securities and Exchange Commission by the Registrant. Readers are cautioned not to place undue reliance on these forward-looking statements, which apply only as of the date of this Current Report. The Registrants do not undertake any obligation to publicly release any revision to their forward-looking statements to reflect events or circumstances after the date of this press release.