On February 24, 2021, Exelon Corporation announced that its Board of Directors has approved a plan to separate Exelon Utilities and Exelon Generation, which includes Constellation, into two independent, publicly traded companies. The decision follows a comprehensive management review and reflects evolving industry conditions that favor a separation of regulated utilities from competitive merchant business segments, allowing each company to focus independently on its unique business and investment strategy.
The proposed separation maintains Constellation’s focus on powering our customers and communities with affordable, reliable and clean energy while retaining our position as the leading retail and wholesale supplier of power, natural gas and clean energy products and services for about 2 million homes, businesses and public-sector entities across the continental U.S., including three-fourths of the Fortune 100. We are still backed by Exelon Generation and its more than 31,000 megawatts of owned capacity, which comprises one of the nation’s cleanest and lowest-cost power generation fleets.
Your Relationship with Constellation Does Not Change
Rest assured, you will experience no disruption to your service as a result of this announcement, and all existing contracts, pricing, and terms and conditions will remain in effect. If you have any questions about the announcement or your current energy agreement, please contact your Constellation representative.
As additional updates regarding the separation becomes available, we are committed to keeping you informed. In the meantime, please see below to view a listing of Frequently Asked Questions.
Thank you for your business and your trust in Constellation as your energy provider. We are excited to continue to serve you and look forward to bringing even more value to you in the future.
Why are you separating Exelon? Why now? How did you make this decision? What has changed since you looked at this before?
The nature of our business and the landscape in which we operate have evolved in recent years, and as we discussed on our last two earnings calls, we regularly evaluate whether our corporate structure best serves the interests of our communities, customers, employees and investors.
We believe that Exelon’s regulated utility business and its competitive power generation/customer-facing energy businesses are stronger and better positioned as separate businesses.
In making the decision to pursue a separation, the Board took into account the interests of all Exelon stakeholders, and we are confident that a separation will best serve our employees, customers, community partners and shareholders.
Importantly, the separation will:
- Unlock strategic flexibility for each company to focus on its core business strategies to better meet evolving customer needs and stakeholder goals;
- Provide each business with the financial and strategic strength to drive long-term investment and operating excellence;
- Establish Exelon Utilities (“RemainCo”) as a fully regulated transmission and distribution utility company, well positioned to deliver smart, clean, reliable and resilient energy to its customers, while managing costs, keeping rates affordable and continuing to foster economic opportunity and equity in the diverse communities it serves; and
- Launch Exelon Generation (“SpinCo”) as a competitive generation and customer-facing company with the agility to adapt to a rapidly changing energy landscape as the nation’s largest provider of clean energy and leading integrated platform for sustainable energy solutions. While the structure of our businesses is changing, our commitment to safety, reliability, communities, and customers we serve will not.
Is the decision to separate Exelon Utilities and Exelon Generation final?
Exelon’s Board of Directors has approved the plan to separate Exelon Utilities and Exelon Generation; however, the transaction is subject to numerous regulatory approvals and is not final until closing (expected to occur in the first quarter of 2022). The current intention is to separate the companies.
What is the timeline for the separation?
The official separation is expected to occur in the first quarter of 2022.
Will the separate company continue to be investment-grade?
SpinCo, including Constellation, is expected to be rated investment grade when listed on the Nasdaq stock exchange.
Does the separation impact my status as a Constellation customer? Will my rates, contract terms or account information change?
No. You will remain a customer of Constellation. Your existing rates, contracts, invoices and service remain in effect. Please continue to contact the same sales and customer care resources that you did before.
Can I change my rate or terms or cancel my Constellation contract?
No. Current contracts remain in place and continue to be binding. If you would like to discuss additional offers, please contact your Business Development Manager or Customer Care.
Does my sales representative, originator, trader, business development manager or account manager change?
Your contact has not changed. Continue to contact your current salesperson, originator, trader, business development manager or account manager.
Who do I contact with questions?
Please continue to refer questions to your Constellation sales representative, or call Customer Care:
Texas Customers: 866-917-8271; M-F 7am-8pm CST & Sat. 8am-5pm CST
Georgia Customers: 877-677-4355; M-F 8am-6pm EST
All other residential customers: 855-465-1244; M-F 8am-8pm EST
Home services customers: 844-823-HOME