Exelon has announced that it will divide its business into two publicly traded companies, one comprising its six regulated electric and gas utilities, and the other, which it plans to spin off, comprising its 31 GW generation fleet.
Exelon was to complete the separation by the first quarter of 2022. It said: “This will give each company the financial and strategic independence to focus on its specific customer needs, while executing its core business strategy.”
The separation still requires final approval from Exelon’s Board of Directors, shareholders, and regulators. Exelon said that this will establish: “The nation’s largest fully-regulated transmission and distribution utility company and the largest carbon-free power producer paired with the leading customer-facing platform for clean, sustainable energy solutions.”
Under Exelon’s current plans, the remaining organisation, currently called RemainCo, will parent Exelon’s six fully regulated transmission and distributed utilities: Commonwealth Edison, which serves northern Illinois, including Chicago; PECO Energy., which serves southeastern Pennsylvania, including Philadelphia; Baltimore Gas and Electric, which serves central Maryland, including Baltimore; Potomac Electric Power, which serves the District of Columbia and other portions of Maryland; Delmarva Power & Light, which serves portions of Delaware and Maryland; and Atlantic City Electric, which serves portions of southern New Jersey.
“SpinCo”, on the other hand, will absorb Exelon’s generation business, which holds 31.2 GW. At the end of 2020, the bulk – 18.8 GW – came from nuclear generation, 23 reactors at 13 nuclear plants. Exelon also owns 9.3 GW of fossil fuel-fired power plants, as well as 3 GW of renewables and 4 GW of contracted generation.