Exelon Plans $26 Billion in Capital Spending Over Four Years

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Written by John Egan for Industrial Info Resources (Sugar Land, Texas)--Exelon Corporation (NYSE:EXC) (Chicago, Illinois), one of the nation's largest utility companies, plans to invest about $26 billion in its electric and gas utilities businesses over the 2020-2023 period, as well as an additional $3.5 billion in its generation business in 2020 and 2021, the company said March 3 during its Winter 2020 investor meeting.

Exelon owns six utilities that provide electric and gas utility service to about 10 million customers in Illinois, Maryland, Pennsylvania, New Jersey, Delaware and the District of Columbia. It also operates a fleet of merchant generators that includes several nuclear power plants.

Exelon's Commonwealth Edison (ComEd) (Chicago) electric utility unit will be making the most significant capital expenditures (capex) over the next four years, roughly $9.5 billion. Those outlays will be for transmission and distribution (T&D) projects.

The BGE (Baltimore, Maryland) unit follows, with an expected spend of about $6.8 billion over four years. After that comes Exelon's PECO unit, which serves the greater Philadelphia area: PECO plans to invest roughly $4.750 billion over the 2020-2023 period in its electric and gas distribution businesses.

Click on the image at right to see planned capital spending for Exelon's utilities business.

Functionally, about $17.25 billion of the four-year planned capital spend will be invested in Exelon's electric distribution companies, company officials said. Another $5.475 billion is expected to be invested in electric transmission projects and about $3.2 billion will go to the gas delivery business.

Industrial Info is tracking about 54 capital and maintenance projects valued at about $4.7 billion that are being developed by Exelon's subsidiaries. That sum includes planned investments in the utilities business unit as well as scheduled outlays for its electric generation business, including scheduled refuelings for its nuclear power plants.

Click on the image at right to view planned capital spending for Exelon's utilities business by function.

Most of the planned capital spending for Exelon's ComEd, PECO and Pepco utilities will be targeted to those units' respective electric distribution systems. Pepco provides electric service to the greater Washington, D.C. area. By contrast, scheduled capex spending for Exelon's BGE, Atlantic City Energy and Delmarva utility units are more balanced between those utilities' electric and gas distribution businesses.

For its generation unit, Exelon only set out planned spending for 2020 and 2021, which is expected to total about $3.5 billion. Spending for nuclear fuel accounts for about 50% of each year's scheduled spend.

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