Invest in Exelon

Exelon(EXC) and its family of companies is involved in the businesses of power generation, as well as the delivery of that power and its wholesale marketing. Exelon is one of the nation’s largest electric companies with over $19 billion in annual revenue. It is the largest owner/operator of nuclear power plants in the US. Key corporate demographic statistics include a $55.1 billion in operating assets, employing 19,214 people as of 2010 while producing 31,758 megawatts of power for 5.4 million customers in Northern Illinois and Southeastern Pennsylvania as well as providing natural gas for approximately 494,000 customers in the Philadelphia area of Pennsylvania. (

Recently, a joint proxy statement was released concerning a merger between Constellation(CEG) and Exelon, discussed during special scheduled shareholders meetings for both companies on November 17, 2011 wherein shareholders of record of shares of Exelon and/or Constellation common stock at the close of business on October 7, 2011 were entitled to vote on the proposed merger. Under the merger agreement, Constellation’s stockholders would receive 0.930 shares of Exelon common stock in exchange for each share of Constellation common stock. Based on Exelon’s closing share price on April 27, 2011, Constellation stockholders would receive a value of $38.59 per share, or $7.9 billion in total equity value. This exchange ratio represents an 18.1 percent premium to the 30-day average closing stock prices of Exelon and Constellation as of that date (

According to Exelon’s recent conference call (transcripts: Chairman and CEO John W. Rowe stated that the company’s 4th quarter operating earnings were $0.82 per share. Putting their full year 2011 operating earnings per share to $4.16, within their final guidance range, improving on 2010 results and well above original expectations for the year. Notably Texas Operations for the company helped maintain their ninth consecutive year of over 93% capacity factors in nuclear production and distribution. A Combination of the impact of the Illinois Energy Infrastructure Modernization Act and summer weather was very positive, despite terrible July storm seasons creating lower than weather-normalized load, a hurricane and a freak fall snowstorm all soaked up successfully.

Reiterating by Matthew F. Hilzinger, Senior Vice President and CFO for Exelon, during the conference call, 4th quarter operating earnings were $0.82 per share, with $4.16 per share for the full year, which includes $0.07 of unfavorable weather versus the prior year. Exelon subsidiaries such as Generation contributed $0.54 per share to the 4th quarter operating results, and $3.01 per share for the year, reflecting favorable market conditions of $0.06 per share, dirven primarily by net favorability for the mid-Atlantic and Midwest regions and hydro production, while ComEd, another subsidiary company of Exelon also delivered operating earnigns of $0.18 per share for the quarter and $0.61 per share for the year, resulting in an annual earned ROE of 9.3%. These ComEd results included $0.06 per share benefit for the revenue requirement reconciliation and the establishment of a regulatory asset for storm costs related to the implementation of the Energy Infrastructure Modernization Act passed earlier this fall. The legislation provides a reliable mechanism for the recovery of the $2.6 billion capital expenditures ComEd will make to modernize and upgrade the system over the next 10 years beginning in 2012. Required by this legislation, the Illinois Power Agency will conduct a procurement auction in February of this year for around-the-clock energy contracts for June 2013 to December 2017. All bids are due on February 10, and the Illinois Commerce Commission decision is scheduled for February 17th.

Overall, these factors makes Exelon well positioned in the production and distribution of energy solutions for the coming year, and a sound financial investment. Additional information for the company can be obtained by both the full transcripts of the conference call, and by consulting the Exelon Corporation 2010 Summary Annual Report at

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 90 days.