8-KOther Events

EXELON CORP 8-K Report (Jul 9, 2004)

Filed July 9, 2004For Securities:EXC

Summary

Exelon Corporation (EXC) filed an 8-K on July 9, 2004, detailing several significant business divestitures and a new investment. The company announced the completion of the sale of Exelon Solutions to Ameresco, Inc., and the sale of its partnership interests in PECO TelCove to its partner for $49 million. Additionally, Exelon finalized the sale of Thermal Chicago Corporation, encompassing Exelon Thermal Technologies and Northwind Midway, to Macquarie Bank Limited for $134 million. These strategic sales indicate a focus on streamlining operations and potentially divesting non-core assets. In parallel, Exelon has made a strategic investment in a synthetic fuel venture on July 1, 2004. This limited partnership interest in facilities that convert coal into synthetic fuel is expected to generate approximately $36 million in net cash flow from 2004 through 2008. The investment is also projected to have a positive net income impact, with an estimated $4.5 million in 2004 and $10.5 million annually from 2005 through 2007. This move suggests an interest in alternative energy sources and leveraging tax credits.

Key Highlights

  • 1Exelon completed the sale of Exelon Solutions to Ameresco, Inc.
  • 2Sold partnership interests in PECO TelCove for $49 million.
  • 3Closed the sale of Thermal Chicago Corporation to Macquarie Bank Limited for $134 million.
  • 4Acquired a limited partnership interest in synthetic fuel-producing facilities.
  • 5The synthetic fuel investment is expected to generate approximately $36 million in net cash flow from 2004-2008.
  • 6The synthetic fuel investment is projected to yield $4.5 million in net income for 2004 and $10.5 million annually for 2005-2007.

Frequently Asked Questions

Exelon announced the sale of Exelon Solutions, its partnership interests in PECO TelCove for $49 million, and Thermal Chicago Corporation (including Exelon Thermal Technologies and Northwind Midway) for $134 million.

The sale of Thermal Chicago Corporation to Macquarie Bank Limited generated $134 million for Exelon.

Exelon purchased a limited partnership interest in facilities that chemically convert coal into a synthetic fuel. This fuel is used at power plants and qualifies for tax credits under Section 29 of the Internal Revenue Code.

The investment is projected to provide total net cash flow of approximately $36 million from 2004 through 2008. The net income impact is estimated at $4.5 million for 2004 and $10.5 million per year for 2005-2007.