Exelon Inherits the Wind

Exelon, the nation’s largest nuclear power operator and a strong backer of federal rules to curb carbon emissions, is putting its money where the wind is.

The Chicago company that serves as an electric provider to customers in the Chicago and Philadelphia areas, among others, is spending $860 million to buy John Deere Renewables, the wind power unit of Deere & Co.

"Not only does this acquisition add value for Exelon shareholders, providing incremental earnings in 2012 and cash flows in 2013, but it also is one more way to implement a clean energy future," said John W. Rowe, Exelon chairman and CEO. "Whether harmful emissions are priced or regulated, our combined capacity of nearly 19,000 megawatts of zero-emission wind, solar, hydro, landfill gas and nuclear power remains a clear competitive advantage that will only become more valuable."

Rowe has in the past committed to putting Exelon on a path to becoming a company that emits no greenhouse gasses by 2020, an ambitious goal for a giant utility, but one that Exelon—with its power generation concentrated in nuclear plants and lower-emission natural gas plants—is in better shape than most to make happen.

The CEO of Exelon, along with Duke Energy CEO Jim Rogers, has been among the most vocal of utility company executives in favor of having the government place a price on carbon emissions to jump start movement toward a clean energy economy.

The House of Representatives has already passed such legislation. But the Senate punted amid partisan bickering, and Majority Leader Harry Reid has shelved a bill authored by John Kerry and Joe Lieberman to set up carbon caps. No action on the bill is expected before the midterm elections. But even with the lack of a coherent national policy, Rowe predicts states will continue to require renewable energy as part of their mix, as California and 27 others already do.

"We expect to see increasing demand for clean, efficient wind power at a national level and in the 29 states that already have a renewable energy standard," Rowe said. "This acquisition gives Exelon a strong position in the wind generation business that adds diversity to our generation fleet and provides more options for future growth."

John Deere Renewables has installed 735 megawatts of wind power generators, enough to power 160,000 to 220,000 households across 36 projects in eight states.

Exelon also operates the nation’s largest urban solar plant, a 10-megawatt installation in Chicago, along with other renewable projects around the nation.