Exelon 2010 Annual Report Download - page 8

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Chris Crane continues to lead Exelon’s ongoing commitment to
cost management, which kept our operating and maintenance
expenses below 2008 levels. The Finance group took steps to
increase our financial flexibility: early in 2011, we made a $2.1 billion
contribution to the Exelon pension plans. This strengthens our
balance sheet, improves our cash flow and reduces the size of future
pension fund contributions. In addition, the Finance team closed a
$1 billion credit facility for ComEd – the first of its size in the industry
since the credit crisis – and executed $94 million in new credit
agreements with minority and community banks that increased the
company’s business with local and diverse banks in our key markets.
Exelon Business Services Company continued to provide best-in-class
professional services, including legal, information technology,
supply and human resources, adding great value to Exelon’s
operating companies.
SMART INVESTMENT FOR THE FUTURE
Roughly two-thirds of our business is commodity price-driven; the
rest is regulated transmission and distribution. Because of that
makeup, our business is part of a commodity cycle. While we are
suffering through a period of depressed energy prices, no company
in this industry is better able to benefit from the drive for clean
energy and its eventual upside. As we wait for better prices, we
work tirelessly to sustain our earnings and make smart investments
in our companies.
In 2010, we continued to execute our multi-year nuclear uprate
strategy, expanding the capacity of the fleet by 59 megawatts by
making improvements at our Clinton, Dresden, LaSalle and Quad
Cities stations. We have added a total of 101 megawatts since
2009. When this initiative is complete, we expect to have added
as much as 1,500 megawatts of new generation, the equivalent of
a new reactor at a much lower cost. In December, we completed the
acquisition of John Deere Renewables – now Exelon Wind – adding
735 megawatts of clean generation to our fleet. Since the value is
largely backed by sales contracts, this deal meets our dual objectives
of securing a strategic position in the renewables business and
enhancing shareholder value by investing in a disciplined manner.
We also took steps to capture value from the transmission system
and prepare it for a clean energy future. ComEd is moving forward
with transmission upgrades in the City of Chicago, which we expect
to complete in 2011. Exelon Generation is taking steps to limit
congestion around our units through projects like the transformer
replacement at Clinton. And we are working with American
Electric Power and Electric Transmission America, a joint venture
of American Electric Power and MidAmerican Energy Holdings
Company, for high-voltage transmission development across the
Midwest to move renewable energy to where it is needed most.