Chicago-based utility holding company Exelon Corp. will separate its competitive generation business from its transmission and distribution segment, creating two different and publicly traded companies.
Exelon is spinning off Exelon Generation. The separation gives both the Utilities and Generation companies financial and strategic independence to focus on specific customer needs, according to the statement.
“Our industry is changing at a rapid pace and our customers expect us to continuously innovate to stay ahead of growing demand for clean energy, evolving business conditions and changing technology,” said Christopher M. Crane, president and CEO of Exelon. “Now is the right time to take this step to best serve our customers, employees, community partners and shareholders. These are two strong, distinct businesses that will benefit from the strategic flexibility to focus on their unique customer, market and community priorities.”
Exelon Generation operates power plants across the spectrum of nuclear, natural gas, wind, solar and hydro facilities. The nuclear fleet is the largest of any utility in the U.S., with 21 reactors generating carbon-free power.
Capacity of the overall generation fleet totals 31,000 MW, including 18,000 MW nuclear and 12,000 MW in wind, solar, hydro, gas and oil-fired power.
Exelon’s full regulated transmission and distribution utilities deliver electricity and natural gas to more than 10 million customers across five states and the District of Columbia. Those utilities include Atlantic City Electric in southern New Jersey, BGE in central Maryland, ComEd in northern Illinois, Delmarva Power in Delaware and eastern Maryland, Pepco in Washington, D.C., and central Maryland, and PECO in southeastern Pennsylvania.
Exelon’s current shareholders will keep their shares and receive a prorated portion of shares in the spinoff entity under the tax-free separation plan, according to reports. The split is expected to be closed next year.