Exelon 2009 Annual Report Download - page 8
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Please find page 8 of the 2009 Exelon annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.SUSTAININGOURPERFORMANCE
Weareconstantlylookingforwaystogrowthemarketvalueofyourcompany.Atthistimelastyear,
webelievedthebestmeanstothatendwastheacquisitionofNRGEnergy,Inc.Despiteofferingwhat
weviewedasafairpriceforNRG,wewereunabletoconvinceitsmanagementandshareholdersto
supportouracquisitionoffer.Manyanalystsandinvestorstoldusthepriceitwouldtaketoclosethe
deal.Thatpricewouldhavesappedthevaluefromtheacquisition,andyourboardandIchosetowalk
awayratherthanoverpay.Inthemonthssince,therelativevaluationofthetwocompanieshasvalidated
thatdecision.WhileIamfrustratedthatwedidnotprevail,myfocustodayiswhatithasalwaysbeen–
shareholdervalue.AndtheNRGtransactionwasfarfromouronlyoptionforcreatingsustainedvalue
foryou.Wearepursuingfiveopportunities:
•First,Exelonofferstheindustry’smostcompellingplantobringnewnucleargenerationtomarket.
Ouruprateprojects–upto1,500megawatts,70ofwhichcameonlinelastyear–wouldbringthe
equivalentofonenewnuclearreactoronlineby2017.Theywouldcomeathalfthecostofanewplant
andwithlessriskbecauseoftheopportunitytodeferexpansionifpowerpricesdonotsupportit.
•Second,PECO’sandComEd’sinvestmentsinsmartgridinfrastructurewillhelpmodernizethedelivery
systemwhileprovidingattractiveregulatedreturns.Thetwocompaniesplantospendupto$725million
onadvancedmeteringsmartgridinfrastructureinthecomingyears.PECOwasoneofsixutilities
selectedtoreceivea$200millionfederalstimulusgrant.ComEdismovingforwardwithapilot
programonChicago’sWestSideandadjacentsuburbs.
• Third,wecreatedtheExelonTransmissionCompany(ETC)tomeetthegrowingneedtoinvestinour
transmissioninfrastructureandimprovereliability,reducecongestionandmoverenewableenergy
tothecountry’spopulationcenters.ETCgivesusameanstooperateoutsideourtraditionalfootprint.
ItwillbenefitfromIanMcLean’syearsofexperienceinpowermarketsandregionaltransmission
organizations,BetsyMoler’sunderstandingoftheregulatoryprocessfromhertimeastheheadof
FERCandtheknowledgeofdozensoftransmissionemployeesthroughoutthecompany.
• Fourth,nocompanyinourindustryisbetterpositionedtobenefitfromtheeconomicrecovery.Exelon
Generation’snuclearfleetremainsthelowest-costproducerintheindustry.Itwillcreateconsiderable
valueasthepricesofnaturalgasandcoalrecoverandelectricitydemandpicksup.
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