Exelon to Split Businesses

Utilities subsidiaries “Remain”, while power generation businesses “Spin” off

Exelon Corp. announced yesterday that its board of directors has approved a plan to separate Exelon Utilities (RemainCo), comprised of the company’s six regulated electric and gas utilities, and Exelon Generation (SpinCo), its power generation and customer-facing energy businesses into two publicly traded companies.

The move establishes RemainCo as the parent company for Exelon’s fully regulated transmission and distribution utilities, a hot topic since the ERCOT outages of last week sparked criticism of deregulation.

Exelon’s six utilities subsidiaries are Atlantic City Electric, BGE, ComEd, Delmarva Power, PECO, and Pepco. These deliver electricity and natural gas to approximately 10 million customers in Delaware, the District of Columbia, Illinois, Maryland, New Jersey and Pennsylvania.

It also launches Spinco, “a competitive generation and customer-facing company with the agility to adapt to a rapidly changing energy landscape as the nation’s largest provider of clean energy and leading integrated platform for sustainable energy solutions,” according to Exelon’s February 24 news release.

“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.”

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