8-KMaterial Agreements

EXELON CORP 8-K Report, Material Agreement (Nov 7, 2006)

Filed November 7, 2006For Securities:EXC

Summary

Exelon Corporation, through its subsidiary Exelon Generation Company, LLC, announced on November 6, 2006, the sale of its 49.5% ownership interests in two Mexican generating facilities, Termoeléctrica del Golfo (TEG) and Termoeléctrica Peñoles (TEP), to a subsidiary of AES Corporation. This transaction is valued at $95 million in cash, subject to working capital adjustments. Both TEG and TEP are petcoke-fired generating facilities with a capacity of approximately 230 MW each. The sale is a strategic move to divest non-core or non-strategic assets, allowing Exelon to focus on its core operations. The transaction is contingent upon approval from the Mexican antitrust commission, with an anticipated closing in the first quarter of 2007. Investors should note that this filing contains forward-looking statements and should consult Exelon's previous SEC filings for a comprehensive understanding of associated risks and uncertainties.

Key Highlights

  • 1Exelon Generation Company, LLC is selling its 49.5% stake in TEG and TEP.
  • 2The buyer is a subsidiary of AES Corporation.
  • 3The sale price is $95 million in cash, plus working capital adjustments.
  • 4TEG and TEP are two 230 MW petcoke-fired generating facilities located in Tamuín, Mexico.
  • 5The transaction is subject to approval from the Mexican antitrust commission.
  • 6The anticipated closing date for the sale is the first quarter of 2007.
  • 7This divestiture is likely part of a strategy to streamline Exelon's asset portfolio.

Frequently Asked Questions

Exelon is selling its 49.5% ownership interests in Termoeléctrica del Golfo (TEG) and Termoeléctrica Peñoles (TEP) for $95 million in cash, subject to working capital adjustments.

TEG and TEP are two petcoke-fired generating facilities located in Tamuín, Mexico, each with a capacity of approximately 230 MW.

Yes, the sale is subject to approval from the Mexican antitrust commission. The parties expect to close the transaction in the first quarter of 2007.

The financial impact will be realized upon closing, expected in Q1 2007. Investors should review Exelon's subsequent financial reports for the specific impact of this divestiture on earnings and cash flow. The filing also notes that forward-looking statements are subject to risks and uncertainties.