Exelon Corp. (NASDAQ: EXC) has reported the approval of a plan to separate Exelon Utilities and Exelon Generation by its Board of Directors. “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,” said Christopher M. Crane, president and CEO of Exelon. “Now is the right time to take this step to best serve our customers, employees, community partners and shareholders. These are two strong, distinct businesses that will benefit from the strategic flexibility to focus on their unique customer, market and community priorities.”
RemainCo will be parent company for Exelon’s transmission and distribution utilities. RemainCo delivers electricity and natural gas to over 10 million customers. Exelon Utilities has invest USD 22 Billion within the last four years to modernize the grid and improve its customer service. The company plans to invest another USD 26 Billion in investment in the next four years to continue to modernize the grid, managing costs and keeping rates affordable.
Under the details of the separation plan, Exelon Corporation shareholders will retain current shares of Exelon stock and receive a dividend of shares of the new company’s stock in a transaction that is anticipated to be tax free to Exelon and its shareholders for U.S. federal income tax purposes.