Exelon to Invest More Than $20 Billion in Utilities through 2020

Researched by Industrial Info Resources (Sugar Land, Texas)--On Wednesday, in a conference call regarding fourth-quarter 2016 earnings, Exelon Corporation (NYSE:EXC) (Chicago, Illinois) executives discussed highlights of the quarter and plans for the company's future. Industrial Info is tracking $9.8 billion in active Exelon projects.

Among the highlights of the previous quarter is that Exelon will keep open two nuclear power plants previously slated for closure. The Clinton and Quad Cities nuclear power plants in Illinois were handed a lifeline in December by the passage of the Future Energy Jobs Bill in the state. The legislation will keep the plants operating for at least another 10 years according to Exelon. For additional details, see December 20, 2016, article - Exelon Wins Financial Aid for Two Uneconomic Nuclear Plants. Executives said that similar legislation could be moving through in Connecticut.

"Our nuclear fleet had its highest-ever capacity factor at 94.6%, versus the industry average of 90.4%, which allowed us to produce an additional 7 terawatt-hours more and approximately $275 million of revenue than if we had just been average," said Chief Executive Officer Chris Crane.

Chief Financial Officer Jack Thayer said, "We'll invest more than $20 billion in our utilities to the benefit of our customers over the next four years. ... Upside comes from the Future Energy Jobs Bill in Illinois, which will allow ComEd [Exelon's Illinois electric utility Commonwealth Edison] to grow rate base and earn a fair rate of return on energy efficiency investments. We now project rate base of 6.5% through 2020."

Exelon reported fourth-quarter 2016 net income of $204 million, compared with $309 in fourth-quarter 2015.

When questioned about any changes that the Trump administration may have, executives retained a "wait and see," but seemingly optimistic, attitude in regard to the encouragement of nuclear generation. Joseph Nigro, chief executive officer of subsidiary Constellation Energy, said "There hasn't been any concrete conversations--just preliminary recognition of what's going on in the marketplace and the need to maintain the diverse power sources, looking at the local economics of them and the benefits to the customer. Just starting, a lot more dialogue will happen with NEI [Nuclear Energy Institute (Washington, D.C.] and the administration, and we're staying involved with NEI and also interfacing with the administration."

Among the Exelon capital projects being tracked by Industrial Info is the 1,000-megawatt (MW) natural gas-fired, combined-cycle addition at the company's Wolf Hollow Power Station in Granbury, Texas. Construction on the project began in mid-2015 and is expected to be completed this summer. Zachry Group (San Antonio, Texas) is acting as engineering, procurement and construction firm on the project, which has an estimated total investment value of $750 million. For more information, see Industrial Info's project report.

On the renewables side, Industrial Info is tracking Exelon's plans for a grassroot windfarm in Tulia, Texas. The 150-MW Swisher Wind Energy Project could begin construction in summer of 2018 and be wrapped up in early 2019. Following the first phase, a Phase II expansion, adding an additional 150 MW of renewable energy, could begin in 2020. Duff and Phelps LLC (Houston, Texas) is acting as consultant on both phases of the project. For more information, see Industrial Info's project reports on Phase I and Phase II.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.