Exelon separation moves forward, with New York Public Service Commission approval

Exelon separation moves forward, with New York Public Service Commission approval

Exelon Corp. announces that the New York State Public Service Commission has approved a unanimous settlement agreement that allows Exelon to move forward with its plan to separate into two companies in the first quarter of 2022.

In approving the settlement, the commission authorized the transfer of Exelon’s New York nuclear facilities to the new Constellation company, which will occur at separation. With this final regulatory approval completed, Exelon remains on track to separate its transmission and distribution utility business (Exelon), which delivers energy to more than 10 million customers, and its competitive retail energy and generation business (Constellation).

“This final regulatory approval is an important milestone on our path to separating into two world-class energy companies,” said Chris Crane, president and chief executive officer of Exelon. “As independent companies, the new Exelon and Constellation will have the strategic flexibility and financial strength to best serve their customers and invest in a clean-energy future. We continue to plan for the transition and look forward to completing the transaction in the first quarter of 2022.”

Exelon Generation owns and operates a power generation portfolio that includes nuclear, natural gas, hydro, renewables and oil-fired facilities. The fleet includes 21 nuclear reactors and the other plants totaling about 30,000 MW in generation capacity. The parent Exelon also owns distribution utilities including Atlantic City Electric, Baltimore Gas & Electric, ComEd, Delmarva Power, PECO and PEPCO.

The commission approved a unanimous settlement agreement that included the New York State Attorney General’s Office, commission staff, the Alliance for a Green Economy, the Long Island Power Authority and Exelon. The Federal Energy Regulatory Commission signed off on the transaction in August and the Nuclear Regulatory Commission approved it in November.

Closing of the transaction in the first quarter of 2022 is subject to final approval by the company’s Board of Directors and a Form 10 registration statement being declared effective by the Securities and Exchange Commission. Exelon shareholder approval is not required.