Updated: Constellation CEO Discusses Retail Business In Regards To Exelon Strategic Review
Exelon Confirms Strategic Review, Considering Separating Exelon Generation From Exelon Utilities
November 3, 2020 Email This Story Copyright 2010-20 EnergyChoiceMatters.com
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Update, 11/3, 3pm ET:
Asked specifically during an earnings call about the retail business with respect to the strategic review, and the consideration of separating Exelon Generation from Exelon Utilities, James McHugh, CEO, Constellation, and Executive Vice President, Exelon, stated, "We're working through, over the next few months, we're going to work with the finance team to understand and how we can continue to optimize our business. Our customer-serving business is really the large portion of our overall earnings capability that we bring to the GenCo, and cashflow capability that we bring to the GenCo. We're committed to that, we want to keep that going. We'll work through the structures, and the product structures, that we need to maintain and to continue to serve those customers, and then optimize the management, all the way through the spot market, of managing the load and the generation output. I think we'll make sure the impacts are such a way that we can maintain that focus on the customer and keep our products going, and the growth that we see in that business."
Exelon in announcing earnings today confirmed that, "Exelon is currently conducting a strategic review of its corporate structure to determine how to best create value and position its businesses for success."
"As part of the review, Exelon is considering separating Exelon Generation from Exelon Utilities," Exelon said
The Exelon Generation segment includes Exelon's retail energy supply business, Constellation
More specifically, the Generation segment consists of owned and contracted electric generating facilities and wholesale and retail customer supply of electric and natural gas products and services, including renewable energy products and risk management services.
"As Exelon continues this review, it is focused on creating value and taking into account the interests of all stakeholders – investors, employees, customers and the communities it serves. There can be no assurance that the strategic review will result in any particular action, nor can there be any assurance regarding the timing of any action. Exelon will provide an update on its progress on its next earnings call. Exelon has retained advisors to assist with the review process," Exelon said
Exelon is holding an earnings call later this morning. This story will be updated with additional detail if provided
Exelon reported that the estimated impact to Generation’s Net income as a result of COVID-19 is approximately $45 million and $140 million for the three and nine months ended Sept. 30, 2020, respectively, and primarily reflects the impact of reduction in load, incremental credit loss expense and direct costs related to COVID-19. Generation also expects a reduction in operating revenues from COVID in the fourth quarter of 2020 primarily due to expected reduction in electric load.