ComEd 2007 Annual Report Download - page 8

6
sustainable environmental performance
Last year, I wrote about the serious challenge we face as a nation and as a
world community in responding to global climate change. The science behind
climate change is now compelling – global average temperatures are rising and
human activity is a major contributor. We must begin to address the problem
now. Unfortunately, there are no easy regulatory or technological solutions.
Exelon has been a leading industry voice for federal enactment of greenhouse
gas regulation since 2002. We continue to actively advocate for a mandatory,
economy-wide climate program that will begin to address the problem
effectively without imposing an impossible financial burden on our customers
or the economy as a whole. Betsy Moler and her Washington team press the
issue daily, both individually and in cooperation with the National Commission
on Energy Policy, the U.S. Climate Action Partnership and the Clean Air Group.
Exelon is well positioned to succeed in a carbon-constrained world by virtue
of our world-class nuclear fleet. Yet our advantage poses challenges of its
own. The value we derive from carbon regulation will inevitably result from
higher electricity prices. Our regulators understand this, and they will
demand value in return. They will expect us to lead the industry in building
an affordable, reliable, low carbon energy future for our customers. Thus,
we must be recognized not merely as a beneficiary of carbon regulation, but
as an innovator and problem solver. We must find ways to address energy
supply issues in a greener way. And we must do so in a manner that inflicts
the least financial burden on our customers.
As a consequence, we have recently initiated a corporate-wide effort to develop
a comprehensive sustainability strategy. Our goal must be ambitious – we
must reduce, displace or offset a major portion of our carbon footprint by a
certain date. First, we will further reduce our own green house gas (GHG)
emissions. While we already have one of the lowest emission rates in the
country, we are exploring every conceivable opportunity to further improve
the efficiency of our buildings, our transportation fleet, our transmission
and distribution operations and to make our supply chain a model of low
carbon procurement.
Second, we will help our customers reduce their GHG emissions. ComEd
already has begun implementing what will become one of the nation’s
largest energy efficiency programs; PECO currently is working with
Pennsylvania legislators to craft similarly reasonable yet bold energy policy.
Third, we will reduce overall GHG emissions in the markets in which we operate.
We are rigorously evaluating new low carbon supply sources, including capacity
uprates at our existing nuclear plants, new natural gas-fired generation and
renewable energy resources like wind.We also continue to pursue the possibility
of building a new nuclear facility in Texas. The Board has agreed to fund
additional exploration and we plan to submit a combined construction and
operating licensing application to the Nuclear Regulatory Commission in 2008.
Exelon is well positioned
to succeed in a carbon-
constrained world