Exelon Establishes Voluntary Goal to Reduce Its Greenhouse Gas Emissions By 8%

May 06 - Business Wire

Exelon Corporation announced today it has established a voluntary goal to reduce its greenhouse gas (GHG) emissions by eight percent from 2001 levels by the end of 2008. Exelon has also committed to work with, and encourage, its suppliers to reduce their GHG emissions. The company will incorporate recognition of GHG emissions and their potential cost into its business analyses as a means to promote internal investment in climate-reducing activities. Exelon made this pledge under the U.S. Environmental Protection Agency's (EPA) Climate Leaders program.

The Pew Center on Global Climate Change, a nationally recognized leader in the effort to address global climate change, assisted Exelon in developing its goal, strategy and program.

"At Exelon, we accept that the science of global warming is overwhelming. We accept that limitations on greenhouse gases emissions will prove necessary. Until those limitations are adopted, we believe that business should take voluntary action to begin the transition to a lower carbon future," said John W. Rowe, chairman, president and CEO, Exelon.

The announcement was made at the Climate Leaders Partners Meeting in Washington, D.C. The Climate Leaders Partnership is a respected, voluntary industry-government partnership designed to address climate change. Exelon joined the Climate Leaders program in June 2003.

"EPA applauds Exelon for its environmental leadership through its commitment to reduce its GHG emissions," said Jeffrey R. Holmstead, EPA assistant administrator for the office of air and radiation.

"We are pleased to join with the other Climate Leaders members, including our merger partner PSEG, in supporting the Bush Administration's efforts to address this important issue. We look forward to continuing to be a part of the Climate Leaders program once the merger is completed," said Elizabeth A. Moler, executive vice president, government and environmental affairs and public policy, Exelon.

Compared to other utilities of equal size, Exelon's total GHG emissions are relatively low. Nuclear generation constitutes the majority of the company's generating capacity and is the main reason for its low carbon emission rates. The Coalition for Environmentally Responsible Economies (CERES) ranked Exelon 93rd on a list of 100 utilities in terms of CO2 emissions intensity from all generating sources (on a scale with one being the most emissions and 100 the least emissions) and 47th in terms of total tons of CO2 emissions based on 2002 data. Despite its low GHG intensity, Exelon is committed to an eight-percent reduction from 2001 levels, which represents a decrease of an estimated 1.3 million metric tons of GHG emissions.

To achieve its goal, Exelon will pursue a portfolio of actions. Exelon expects that more than half its reductions will come from the use of cleaner energy, including increased renewable generation and increased output from its landfill gas and hydroelectric facilities. In addition, the company has already ceased operations at several of its older, less efficient fossil fuel plants, including Mystic 4-6 and Delaware 7-8.

Exelon has looked at its own usage of energy and undertaken internal energy efficiency initiatives across its operations and expects that about one quarter of the emissions reductions will result from these efforts. Exelon anticipates that a valuable, though much smaller, portion of expected reductions will be derived from carbon sequestration efforts. The company will seek to invest in its own facilities first before investing in emission offsets.

"We are delighted to see Exelon Corporation not only acknowledging the science of climate change, but also working to reduce their emissions. We look forward to working with them to shape sound public policy here in the United States and around the world. Exelon's commitment demonstrates their recognition that carbon constraints are inevitable and that addressing climate change makes good business sense; we welcome their voice to the dialogue," said Eileen Claussen, president of the Pew Center.

Exelon's Climate Leaders commitment is consistent with its environmental strategy. The company's environmental priorities include increasing renewable energy supplies, promoting efficient use of electricity and natural gas, contributing to the development of a sound national policy addressing climate change, and preserving the option for low-carbon intensity technologies, including nuclear, for the future.

Climate Leaders is a voluntary EPA industry-government partnership that works with companies to develop long-term, comprehensive climate change strategies. Partners set a corporate-wide GHG reduction goal and inventory their emissions to measure progress. By reporting inventory data to EPA, partners create a lasting record of their accomplishments. Partners also identify themselves as corporate environmental leaders and strategically position themselves as climate change policy continues to unfold.

The Pew Center was established in May 1998 by the Pew Charitable Trusts, one of the United States' largest philanthropies and an influential voice in efforts to improve the quality of the environment. The Pew Center is a nonprofit, non-partisan and independent organization dedicated to providing credible information, straight answers and innovative solutions in the effort to address global climate change. The Pew Center is led by Eileen Claussen, the former U.S. assistant secretary of state for oceans and international environmental and scientific affairs.

Exelon Corporation is one of the nation's largest electric utilities with approximately 5.2 million customers and more than $14 billion in annual revenues. The company has one of the industry's largest portfolios of electricity generation capacity, with a nationwide reach and strong positions in the Midwest and Mid-Atlantic. Exelon distributes electricity to approximately 5.2 million customers in northern Illinois and Pennsylvania and gas to more than 460,000 customers in the Philadelphia area. Exelon is headquartered in Chicago and trades on the NYSE under the ticker EXC.

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