Exelon 2008 Annual Report Download - page 8

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Finally,฀our฀Business฀Services฀Company฀continued฀to฀provide฀best-in-class฀professional฀services฀at฀
exceptional฀value฀to฀Exelon’s฀operating฀companies.฀Ruth฀Ann฀Gillis฀and฀her฀group฀deserve฀great฀credit฀
for฀their฀accomplishments,฀particularly฀our฀initiative฀to฀reduce฀energy฀consumption฀by฀25฀percent฀
across฀our฀facilities฀and฀leading฀the฀Electric฀Utility฀Industry฀Sustainable฀Supply฀Chain฀Alliance,฀which฀is฀
committed฀to฀improving฀the฀environmental฀performance฀of฀electric฀utility฀suppliers.
SUSTAINABLE฀ADVANTAGE฀
Despite฀the฀challenges฀of฀2008,฀we฀made฀substantial฀progress฀in฀turning฀our฀sustainable฀value฀into฀฀
a฀sustainable฀advantage.฀In฀July,฀we฀unveiled฀Exelon฀2020:฀a฀low-carbon฀roadmap.฀Exelon฀2020฀is฀฀
our฀comprehensive฀plan฀to฀reduce,฀displace฀or฀offset฀15฀million฀metric฀tons฀of฀greenhouse฀gas฀(GHG)฀฀
emissions฀–฀an฀amount฀greater฀than฀our฀current฀annual฀carbon฀footprint฀–฀each฀year฀by฀2020.฀The฀฀
principles฀of฀the฀plan฀are฀those฀that฀I฀outlined฀in฀this฀space฀last฀year:฀reduce฀our฀own฀GHG฀emissions,฀
help฀our฀customers฀reduce฀their฀GHG฀emissions฀and฀reduce฀the฀overall฀GHG฀emissions฀in฀the฀markets฀฀
in฀which฀we฀operate.฀This฀is฀a฀goal฀uniquely฀possible฀for฀us฀because฀80฀percent฀of฀our฀output฀comes฀from฀
nuclear฀power.฀But฀this฀is฀not฀a฀plan฀we฀concocted฀to฀get฀good฀PR.฀It฀is฀a฀resource฀plan฀for฀combating฀
climate฀change,฀and฀a฀blueprint฀on฀how฀to฀leverage฀our฀current฀value฀into฀a฀sustainable฀advantage฀for฀
years฀into฀the฀future.฀฀
In฀October,฀we฀announced฀our฀intention฀to฀acquire฀NRG.฀We฀have฀looked฀at฀this฀transaction฀from฀many฀
perspectives฀and฀under฀many฀scenarios.฀Our฀analysis฀shows฀that฀the฀combined฀company฀would฀bring฀
enhanced฀size,฀scale฀and฀scope,฀in฀addition฀to฀improved฀diversity฀in฀geography฀and฀regulatory฀environments.฀
It฀would฀create฀a฀new฀model฀for฀independent฀generation,฀one฀better฀able฀to฀survive฀the฀booms฀and฀
busts฀in฀economic฀and฀commodity฀cycles.฀More฀importantly,฀it฀would฀create฀real฀and฀immediate฀value฀
for฀investors฀in฀both฀Exelon฀and฀NRG.
But฀it฀will฀not฀be฀easy.฀The฀unwillingness฀of฀NRG’s฀management฀to฀discuss฀a฀merger฀at฀a฀reasonable฀
price฀made฀it฀necessary฀for฀us฀to฀take฀our฀offer฀directly฀to฀their฀shareholders.฀It฀is฀our฀hope฀that฀NRG’s฀
management฀will฀be฀willing฀to฀discuss฀a฀merger฀and฀this฀transaction฀will฀become฀friendlier฀than฀it฀now฀
appears.฀But฀if฀not,฀we฀are฀prepared฀to฀take฀our฀case฀to฀NRG’s฀annual฀shareholder฀meeting฀and฀take฀the฀
steps฀necessary฀to฀elect฀new,฀independent฀directors.฀We฀believe฀our฀proposition฀is฀compelling,฀and฀the฀
fact฀that฀almost฀46฀percent฀of฀NRG’s฀shareholders฀tendered฀their฀shares฀at฀the฀initial฀January฀expiration฀
date฀offers฀independent฀corroboration.฀I฀am฀under฀no฀illusions฀about฀the฀difficulty฀of฀completing฀a฀฀
transaction฀such฀as฀this.฀But฀we฀are฀committed฀to฀rigorously฀pursue฀all฀opportunities฀to฀grow฀your฀value.
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