By Siobhan Hughes
Of DOW JONES NEWSWIRES
WASHINGTON -(Dow Jones)- Exelon Corp. (EXC) Chief Executive John Rowe said Thursday that his company had been assured it would receive federal subsidies to construct a solar power plant in Chicago, the adopted hometown of U.S. President Barack Obama.
"We have been given oral assurances that we will get it, and on that basis we have gone forward and done two thirds of the work to build the project," Rowe told reporters after testifying before the U.S. Senate Environment and Public Works Committee in support of climate legislation. "We don't have a signed agreement yet."
Earlier this year, the company applied for Energy Department loan guarantees for a $60 million project, which is to consist of 32,800 solar panels produced by SunPower Corp (SPWRA, SPWRB). It aims to convert sunlight into enough electricity to meet the needs of 1,200 to 1,500 homes a year. The system is planned for the south side of Chicago, at a former industrial site to be leased from the city.
Separately, Rowe said he thought Exelon's decision to quit the U.S. Chamber of Commerce over the business group's opposition to climate legislation was "a relatively small decision." He said "other people think it's a very big deal."
-By Siobhan Hughes, Dow Jones Newswires; 202-862-6654; Siobhan.Hughes@dowjones.com