Exelon to split into 2 publicly traded companies

The Exelon Corp. board cleared a plan to separate its regulated utility business and its competitive power generation business into two publicly traded companies to focus on core business strategies.

In November 2020, Exelon confirmed the launch of a strategic review of its corporate structure, which included the possibility of splitting its unregulated Exelon Generation Co. LLC arm from its utility operations.

"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," Exelon President and CEO Christopher Crane said in a Feb. 24 statement.

Exelon Utilities will consist of the company's six regulated electric and natural gas utilities serving more than 10 million customers across five states and Washington, D.C.

Meanwhile, the Exelon Generation spinoff will supply energy to customers across the continental U.S. through its more than 31,000-MW generating capacity from nuclear, wind, solar, natural gas and hydro assets.

Exelon Generation plans to retire uneconomic assets that negatively affect its ability to provide reliable sources of clean power, Exelon said.

Under the plan, Exelon shareholders will retain their current shares and receive a pro rata dividend of shares of the new company's stock in a tax-free transaction. The actual number of shares to be distributed will be determined prior to closing, which is expected in the first quarter of 2022.

The transaction is subject to approval by the Federal Energy Regulatory Commission, the Nuclear Regulatory Commission and the New York Public Service Commission.

Crane and the existing management team will continue to lead Exelon until the public listing of the spinoff company. Exelon said it will be releasing further details in the coming months.

Also on the same day, Exelon posted fourth-quarter 2020 adjusted operating earnings of $746 million, or 76 cents per share, beating the S&P Capital IQ normalized EPS estimate for the quarter of 70 cents.

The company initiated full-year 2021 adjusted operating earnings guidance of $2.60 per share to $3.00 per share.