Growth Strategy and Investments

Exelon is confronting its market challenges with a defined strategy for earnings growth, based on diversification of revenue streams, utility investment, optimization of our asset base, and recovery of power market fundamentals. Execution of that strategy requires a disciplined, long-term view buttressed by the right near-term actions.

To begin with, we believe in a supply-driven recovery of power prices, and hold a portfolio position that will enable us to capitalize on our views of market recovery and earnings growth. Our earnings profile and balance sheet strength enable us to act on growth and diversification opportunities when the time and price are right. We are diligent in the identification and rigorous in the assessment of those opportunities.

We added 153 MW of new solar capacity in 2013 at the Antelope Valley Solar Ranch in California, and have more than 500 MW of natural gas, contracted wind and solar power and nuclear capacity uprates in the development pipeline. The utilities will invest $15 billion over the next five years in smart meter technology, transmission projects, gas infrastructure, and electric system improvement projects, providing greater reliability and improved service for our customers and a stable return for the company.

We continue to review our asset mix and work to optimize its value. We evaluate the economic viability of each of our generating units on an ongoing basis and use that assessment to identify ways to enhance their value. Our nuclear plants had their best generating year ever, but despite that performance, some are facing economic headwinds due to wholesale prices and the unintended consequences of current energy policies including subsidies like the wind production tax credit. We are assessing infrastructure, operational, commercial, policy, and legal solutions to these market pricing issues. Putting in place the right energy and tax policies is clearly the best answer. But our obligation to