Low Carbon Strategy

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Low Carbon Strategy

• Global Roundtable on Climate Change
• February 26, 2009
• Helen Howes
• VP, Environment, Health Safety

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Exelon (NYSE EXC)

• One of the nations largest integrated electric
  utilities
• 2008 Total Assets 47.8 billion
• 2008 Revenues 18.9 billion
• Employees 19,600 (approx.)
• Customers 5.4 million electric, 485,000 gas
• Generating Assets 31,300 MW, including owned
  generation and long-term contracts

Electricity Customers 1.6MGas Customers 0.5M
Electricity Customers 3.8M
Capacity (MW) Owned 24,809Contracted
6,483Total 31,292
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Voluntary Commitment to Reduce CO2e Emissions

• Exelon will achieve a reduction of 8 below its
  2001 level of greenhouse gas (GHG) emissions by
  2008
• 2001 GHG emissions of approximately 15.8M metric
  tonnes
• 8 reduction equates to a 1.3M metric tonne
  reduction, exclusive of any growth in emissions
  due to increased output in 2008
• Commit to work with, and encourage, suppliers to
  commit to reduce their GHG emissions
• Incorporate recognition of GHG emissions and the
  cost of emissions credits into future business
  case analyses and long range plans

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GHG Emissions 2001 Baseline
Emissions by Type
Emissions by Business Unit
Power
Nuclear
93
2
Delivery
5
Services
lt1
5
Reduced fossil emissions were the key driver
GHGs from stationary combustion declined by 4.9
million MT
GHGs from other sources declined by 0.8
million MT
Exelon Overall Emissions Profile (excluding
offsets)
Breakdown of Emissions from Other Sources
15.7
Delaware 7, 8, Aux shutdown (04)
New Boston 1 shutdown (06)
14.2
9.9
Mystic 4, 5, 6 New Boston 2 shutdown (03)
Handley 1, 2 Mountain Creek 2, 3 mothballed (05)
9.3
1.5
0.7
Notes Figures are subject to US EPA Climate
Leaders verification.
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Exelon 2020 Strategy
Visit www.exeloncorp.com to download Exelons
plan.
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Meeting the Goal
Estimated Greenhouse Gas Emissions Reduced,
Offset or Displaced per year by 2020 (in mm MT
CO2e)
Reduce or offset Exelons carbon footprint
Offer more low-carbon electricity in the
marketplace
Help our customers reduce their GHG emissions
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Exelon 2020 Goal and Strategy

• Exelon 2020 Goal
• Reduce, offset or displace more than 15 million
  metric tons of GHG emissions per year by 2020

Exelon 2020 Strategy
1. Reduce or Offset Exelons Carbon Footprint
2. Help Our Customers Reduce Their GHG Emissions
3. Offer More Low-Carbon Electricity In The
Marketplace
4. Advocate for Sound Policy
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1. Reduce or Offset Exelons Carbon Footprint

• Reduce energy consumption in our buildings by 25
• Improve the efficiency of the generation and
  delivery system for electricity and natural gas
• Build an industry-leading green supply chain
• Continuously reduce the GHG emissions from our
  vehicles
• Help employees adopt green practices
• Offset a portion of our GHG emissions

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2008 greening Exelons operations

• Implemented improvements from 70 energy
  efficiency projects that reduced energy
  consumption an incremental 2 (for total of 11
  toward the goal)
• Received LEED silver certification for Fairless
  Hills Renewable Energy Education Center and West
  Chester Service Center (Clinton in process)
• Increased utilization of hybrid vehicles and
  introduced new vehicle guidelines to enhance fuel
  efficiency and reduce emissions
• Launched comprehensive program to green the
  supply chain
• Initiated two major collaborative efforts Carbon
  Disclosure Project Supply Chain survey with 100
  top suppliers and founding of Electric Utility
  Industry Sustainable Supply Chain Alliance with
  14 utilities
• Achieved 80 electronic invoices
• Recycled/reused gt30 million pounds of scrap
  metal, meters and transformers, along with gt0.7
  million gallons of oil recovering 15.7
  million and avoiding 105,000 MT of CO2e
• Introduced portfolio of department and employee
  initiatives

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2. Help Our Customers Reduce Their GHG Emissions

• Implement industry-leading energy efficiency and
  demand-response programs
• Convey competitive price signals to help
  customers use energy more efficiently
• Enhance wholesale and retail markets for green
  products and services
• Increase customers awareness of approaches to
  reduce GHG emissions

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2008 helping customers reduce emissions

• Introduced suite of new energy efficiency
  programs
• ComEd Smart Ideas Programs for residential and
  commercial customers which will save in excess of
  166,000 MWhs in the first year
• PECO Planning underway to spend up to 85
  million per year to reduce consumption by 3 and
  reduce peak load by 4.5 by 2013
• Invested in smart grid technology and new pricing
  programs
• ComEd offered residential real-time pricing
  program to more than 6,000 participants in 2008
• ComEds stakeholder workshops to prepare for the
  2009 AMI pilot launch for 100,000 customers
• Expanded green product and service offerings
• ComEds new net metering tariff
• Exelon Energys certification as a marketer of
  Green-e certified RECs
• Advanced customer education and outreach

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3. Offer More Low-Carbon Electricity In The
Marketplace

• Reduce fossil generation emissions and expand
  low-carbon fossil generation capacity
• Increase investment in renewable power
• Expand nuclear generation

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2008 offering more low-carbon electricity

• Increased our portfolio of PPAs for renewable
  generation by over 200 MW
• Wind 17 year PPA for a 198 MW wind farm in
  Northern Illinois
• Solar 20 year PPAs for the 3 MW Falls Township
  facility and the 1 MW Philadelphia Navy Yard
  solar facility
• Landfill gas 10 year PPA for a 4.5 MW landfill
  gas facility in Ohio
• Secured agreement with PJM to provide tracking of
  carbon emissions from all generating sources in
  the market
• Several states reviewing the overall proposal
• Annual emissions summary has been developed for
  2005, 2006, 2007, and 2008
• Next step is for PJM to apportion credit for
  reductions and displacement

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4. Advocate for Sound Policy

• Federal climate change legislation
• An economy-wide cap-and-trade system that puts a
  cost on emitting GHGs and incorporates those
  costs into the marketplace
• Workable competitive wholesale markets
• Enables investment to flow to more profitable
  less carbon-intensive generation technologies
• Technology innovation incentives
• Appropriate efficiency standards, financial
  incentives (loan guarantees, dedicated funding,
  RD for renewables and carbon capture and
  sequestration) , workable renewable resource
  mandates and a longer term solution for managing
  nuclear waste

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Stakeholder Partnerships
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For More Information

• Web site www.ExelonCorp.com
• The Environment and Community sections, under the
  Corporate Responsibility drop down