Exelon's (EXC) Unit To Sell 175 MW Clean Energy To Customers

Exelon Corporation (NYSE:EXC) announced that its unit, Constellation has entered into an agreement with three commercial customers namely Johns Hopkins University, McCormick & Company (NYSE:MKC) and the TJX Companies, Inc. (NYSE:TJX) to power their operations through renewable energy. Constellation will supply 175 MW of clean energy to these customers from a solar project that is currently under development.

This collaboration with retail customers is the largest ever for Constellation. The 15-year agreement, which begins in 2021, is part of Exelon’s broader commitment of advancing zero-carbon energy locally and nationally.

Focus on Clean Energy

Exelon recognizes the importance of zero-carbon electricity generation and is working its way toward the emission-reduction target resolutely. Primarily, the company believes in continued operation of its nuclear fleet as a means of providing cost-effective, zero-carbon solutions for customers. The company has retired or sold more than 2,000 MWs of coal-fired generation. In addition, Exelon developed or bought 1,500 MWs of renewable generation to further lower greenhouse gas emissions from the generation portfolio.

The company has plans to invest $5.3 billion in 2019 to strengthen existing operations and undertake initiatives that will promote an increase in the usage of clean energy.

Clean Energy Usage on the Rise

Per the U.S. Energy Information Administration (“EIA”), contribution from renewable sources to total electricity generation will be 17% in 2019 and reach 19% in 2020. EIA forecasts that the share of U.S. generation from coal will average 25% in 2019 and 22% in 2020, indicating a decline from 28% in 2018.

This forecast gives a clear indication that utility operators are gradually concentrating on sources that aid in lowering emission levels. Utilities like NextEra Energy (NYSE:NEE) and Dominion Energy (NYSE:D) , among others, have taken steps to substantially increase power generation from clean sources.

The declining costs of setting up utility scale renewable power plants, government incentives, technological development and large-scale battery projects are making renewable projects profitable and viable for operators.

Zacks Rank

Exelon currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Price Performance

Shares of the company have gained 6.1% in the past month compared with the industry’s 3.6% growth.

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