Action marks latest step in plan to separate Exelon’s utility and competitive energy businesses
CHICAGO – Exelon Corp. (Nasdaq: EXC) announced today that the U.S. Nuclear Regulatory Commission (NRC) has approved the company’s plan to separate into two companies, Exelon and Constellation, in the first quarter of 2022. Exelon will separate its transmission and distribution utility business (Exelon) and its retail energy and competitive power generation business (Constellation), which includes the nation’s largest fleet of nuclear power plants.
The NRC has regulatory oversight of the nation’s nuclear plants, and its approval is a necessary step in the move toward separating the two companies. All 12 Exelon nuclear facilities are rated in the NRC’s top tier for safety.
After a rigorous review, the NRC order said the separation may proceed after the company meets certain procedural and other conditions. The conditions in the order were anticipated and present no obstacles to completing the separation.
“Each of these companies will emerge as industry leaders with the financial and strategic independence to focus on best serving their respective customers and communities,” said Chris Crane, president and CEO of Exelon. “With approval from the NRC, we remain on track to complete our separation in the first quarter of next year and position both these companies for long-term success.”
The NRC’s approval marks the latest step toward completing Exelon’s separation. Previous milestones include:
- Receiving approval from the Federal Energy Regulatory Commission
- Acquiring EDF’s minority share of the R.E. Ginna and Nine Mile Point nuclear plants in New York and the Calvert Cliffs nuclear plant in Maryland
- Naming the CEOs, CFOs and senior leadership teams for each company
Timing and Remaining Approvals
Closing of the transaction in the first quarter of 2022 is subject to final approval by the company’s Board of Directors, a Form 10 registration statement being declared effective by the Securities and Exchange Commission, the receipt of the remaining regulatory authorization from the New York Public Service Commission for the transfer of the New York nuclear units and the satisfaction of other conditions. Exelon shareholder approval is not required. There can be no assurance that any separation transaction will ultimately occur or, if one does occur, of its terms or timing.