Exelon’s Diversification Strategy Drives Growth in Challenging Energy Market
November 13 2014 - 11:00AM
Business Wire
CEO Chris Crane says Exelon’s business model
provides competitive advantage as industry grapples with sweeping
transformation
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.”
Exelon Corporation (NYSE: EXC) is the nation’s leading
competitive energy provider, with 2013 revenues of approximately
$24.9 billion. Headquartered in Chicago, Exelon does business in 48
states, the District of Columbia and Canada. Exelon is one of the
largest competitive U.S. power generators, with more than 35,000
megawatts of owned capacity comprising one of the nation’s cleanest
and lowest-cost power generation fleets. The company’s
Constellation business unit provides energy products and services
to approximately 100,000 business and public sector customers and
approximately 1 million residential customers. Exelon’s utilities
deliver electricity and natural gas to more than 7.8 million
customers in central Maryland (BGE), northern Illinois (ComEd) and
southeastern Pennsylvania (PECO). Follow Exelon on Twitter
@Exelon.
Cautionary Statements Regarding Forward-Looking
Information
This press 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, Commonwealth
Edison Company, PECO Energy Company, Baltimore Gas and Electric
Company and Exelon Generation Company, LLC (Registrants) include
those factors discussed herein, as well as the items discussed in
(1) Exelon’s 2013 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 22; (2) Exelon’s
Third Quarter 2014 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
(3) 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 press release. None 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 press release.
Exelon CorporationFrancis Idehen, 312-394-3967Investor
RelationsorPaul Adams, 410-470-4167Corporate
Communicationspaul.adams@constellation.com
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