DALLAS (Nov. 13, 2014) - As the energy industry undergoes rapid changes, Exelon is executing a strategy to grow and diversify the company through targeted investments in core markets and promising technologies with the potential to reshape the energy landscape, Exelon CEO Chris Crane told the 49th Annual EEI Financial Conference today.
Speaking to an audience of industry leaders, financial analysts and investors, Crane said Exelon's business model provides a platform to pursue a broad range of opportunities as changing consumer behavior, disruptive technologies, challenges to grid integrity and continued industry consolidation transform the industry.
"The changes sweeping our industry will impact existing markets and create new ones," Crane said. "In this complex environment, our integrated business model is a distinct competitive advantage through which we will drive value for customers and shareholders."
The driving principle behind Exelon's strategy is to preserve the value of its core assets, while also capitalizing on emerging trends and technologies to diversify the business where there are growth opportunities, Crane said. Exelon's proposed merger with Pepco Holdings Inc. (PHI) is a prime example of the company's plan to invest in core markets that offer stable growth, he added.
The merger will combine Exelon's three electric and gas utilities - BGE, ComEd and PECO - and PHI's three electric and gas utilities - Atlantic City Electric, Delmarva Power and Pepco - to create the leading mid-Atlantic electric and gas utility.
Between 2014 and 2018, Exelon will drive earnings growth by investing $16 billion in infrastructure and technology to improve reliability and customer service at its three utilities -- BGE, ComEd and PECO.
"Our goal is to operate at the highest levels of safety, operational performance and customer satisfaction," Crane said. "If we continue to deliver on that promise, we will better serve customers and create opportunities for continued growth."
Crane said the company has invested heavily in its nuclear fleet over the past decade, making it the most reliable energy source in the PJM market. He added that the fleet is well positioned to benefit from new EPA carbon regulations that will favor reliable, carbon-free energy.
To thrive in an industry undergoing fundamental change, Exelon also has cultivated a culture of innovation that promotes early adoption of promising new technologies and processes, Crane said. Examples include Exelon's partnership with Bloom Energy to build fuel cell projects at 75 commercial facilities and its investment in NET Power, which is building a demonstration power plant using a new natural gas power system that produces zero atmospheric emissions. In addition, Exelon recently announced it is building two, first-of-their-kind combined-cycle gas turbine power plants in Texas that will be among the cleanest in the nation.
"Our integrated business model provides a strong foundation for success in an industry experiencing dramatic changes," Crane said. "Diversification and innovation enable us to take advantage of a broad range of opportunities, rather than betting on any one segment of our industry."