PHILADELPHIA— Exelon today laid out its strategy to grow the business and build value by substantially investing in its six electric and gas utilities, maximizing the value of its industry-leading competitive generation and retail businesses, and adopting innovative technologies that will help to transform the energy industry. Senior Exelon leaders outlined the strategy for the financial community at the company’s Analyst Day in Philadelphia.
“We see incredible opportunity in the years ahead as Exelon leads the transformation of our industry,” said Chris Crane, Exelon president and CEO. “We serve more utility customers and produce more clean energy than any other company nationwide, which gives us a unique platform from which to grow our business and invest in needed infrastructure and innovations to benefit our customers and communities.”
Exelon will invest $25 billion on critical infrastructure, smart grid technology and other reliability and customer service improvements at its utilities over the next five years to benefit its 10 million electric and gas customers. These investments will drive utility earnings growth, representing a growing majority of Exelon’s earnings through the remainder of the decade.
Revenue from Exelon Generation’s power plants, with 32,700 megawatts of capacity, will help fund investment at the utilities and reduce debt. The company also continues to invest in technology and best practices to drive efficiency in the generation fleet. Exelon Generation’s nuclear fleet operates at an industry-leading 93 percent or higher capacity factor, a key measure of efficiency.
Continued growth at Exelon’s Constellation unit, which serves 2 million residential, public sector and business customers, is also helping to maximize the value of the Exelon Generation fleet by matching the electricity produced to customer demand.
Exelon remains focused on advancing policy and market reforms to preserve nuclear plants facing economic challenges as a result of sustained low natural gas prices and policies that do not value nuclear for its reliability and zero-carbon benefits.
“For the good of our employees, our customers, our communities and the climate, we will keep working for solutions in all of our states to preserve zero-carbon nuclear generation and promote the advancement of clean energy,” Crane said. “But where we can’t see a path to sustained profitability, we have no choice but to shut down plants.”
The only Fortune 100 company in its sector, Exelon continues to lead the transition to a clean energy future by fostering a culture of innovation and partnering with top universities, national labs, government agencies, venture capitalists and private equity firms to unleash new technology that has the potential to transform the business, provide greater benefits to customers and build long-term value and growth.
Cautionary Statements Regarding Forward-Looking Information
This release contains certain 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 the forward-looking statements made by Exelon Corporation and Exelon Generation Company, LLC (Registrants) include those factors discussed herein, as well as the items discussed in (1) Exelon’s 2015 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 Operations and (c) ITEM 8. Financial Statements and Supplementary Data: Note 23; (2) PHI’s 2015 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 Operations and (c) ITEM 8. Financial Statements and Supplementary Data: Note 16; (3) Exelon’s First Quarter 2016 Quarterly Report on Form 10-Q in (a) Part II, Other Information, ITEM 1A. Risk Factors; (b) Part 1, 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 18 and (4) other factors discussed in filings with the SEC by the Registrants. Readers are cautioned not to place undue reliance on these forward-looking statements, which apply only as of the date of this release. Neither of the Registrants undertakes any obligation to publicly release any revision to its forward-looking statements to reflect events or circumstances after the date of this release. Readers are cautioned not to place undue reliance on these forward-looking statements, which apply only as of the date of this release. Entergy Corporation does not undertake any obligation to publicly release any revision to its forward-looking statements to reflect events or circumstances after the date of this release.