Exelon to invest $25bn in smart grid and infrastructure improvements
August 23, 2016
Exelon plans to invest $25bn in critical infrastructure, smart grid technology and other reliability and customer service improvements at its utilities over the next five years to benefit its ten million electric and gas customers.
These investments will drive utility earnings growth, representing a growing majority of Illinois-based Exelon’s earnings through the remainder of the decade.
Exelon has laid out its strategy to grow the business and build value by investing in its six electric and gas utilities, increasing the value of its generation and retail businesses, and adopting technologies that will help transform the energy industry.
“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.”
Revenue from Exelon Generation’s power plants, with 32,700MW 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 93 per cent or higher capacity factor, a key measure of efficiency.
Continued growth at Exelon’s Constellation unit, which serves two million residential, public sector and business customers, is also helping increase the value of the Exelon Generation fleet by matching the electricity produced to customer demand.
Exelon says it 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 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.”
Exelon says it fosters a culture of innovation and partnering with top universities, national labs, government agencies, venture capitalists and private equity firms to unleash technology that has the potential to transform the business, provide greater benefits to customers and build long-term value and growth.
Exelon is a Fortune 100 energy company with the largest number of utility customers in the USA. It does business in 48 states, the District of Columbia and Canada and had 2015 revenue of $34.5bn. Its six utilities deliver electricity and natural gas to approximately ten million customers in Delaware, the District of Columbia, Illinois, Maryland, New Jersey and Pennsylvania through its Atlantic City Electric, BGE, ComEd, Delmarva Power, Peco and Pepco subsidiaries.