Benzinga | Feb 24, 2021 06:53AM EST

Exelon to Separate Its Utility and Competitive Energy Businesses Into Two Industry-Leading Companies

* Separation will establish the nation's largest fully regulated transmission and distribution utility company and the largest carbon-free power producer paired with the leading customer-facing platform for clean, sustainable energy solutions

* Unlocks strategic flexibility for each company to focus on its core business strategies to better meet evolving customer needs and stakeholder goals

* Exelon to discuss separation and fourth quarter 2020 financial results today at 10 a.m. ET

CHICAGO--(BUSINESS WIRE)-- Exelon Corp. (NASDAQ:EXC) today announced its Board of Directors has approved a plan to separate Exelon Utilities (RemainCo), comprised of the company's six regulated electric and gas utilities, and Exelon Generation (SpinCo), its competitive power generation and customer-facing energy businesses into two publicly traded companies with the resources necessary to best serve customers and sustain long-term investment and operating excellence. The separation gives each company the financial and strategic independence to focus on its specific customer needs, while executing its core business strategy.

It establishes RemainCo as the parent company for Exelon's fully regulated transmission and distribution utilities, positioning it to deliver smart, clean, reliable and resilient energy to its customers while continuing to foster economic opportunity and equity in the diverse communities it serves. It also launches Spinco, a competitive generation and customer-facing company with the agility to adapt to a rapidly changing energy landscape as the nation's largest provider of clean energy and leading integrated platform for sustainable energy solutions.

"Our industry is changing at a rapid pace and our customers expect us to continuously innovate to stay ahead of growing demand for clean energy, evolving business conditions and changing technology," said Christopher M. Crane, president and CEO of Exelon. "Now is the right time to take this step to best serve our customers, employees, community partners and shareholders. These are two strong, distinct businesses that will benefit from the strategic flexibility to focus on their unique customer, market and community priorities."