8-KAcquisitions & DispositionsExhibits & Filings

EXELON CORP 8-K Report, Acquisition Completed (Dec 10, 2010)

Filed December 10, 2010For Securities:EXC

Summary

Exelon Corporation, through its subsidiary Exelon Generation Company, LLC, announced the completion of its acquisition of John Deere Renewables, LLC (JDR) on December 9, 2010. This strategic move significantly expands Exelon's renewable energy portfolio, adding 735 megawatts of operating wind electric generating facilities and an additional 230 megawatts of wind generation projects in advanced development. The acquisition, valued at $860 million with potential for an additional $40 million based on future project development, underscores Exelon's commitment to diversifying its energy generation mix towards cleaner sources. Investors should note that this acquisition represents a substantial investment in the renewable energy sector, aligning with broader industry trends and potential future growth opportunities. The integration of JDR's assets is expected to contribute to Exelon's overall generation capacity and could impact its financial performance through increased revenues and potential operational synergies. The report also highlights the inclusion of forward-looking statements, which investors should consider alongside the company's risk factors detailed in its other SEC filings.

Key Highlights

  • 1Exelon Generation Company, LLC has completed the acquisition of John Deere Renewables, LLC (JDR) on December 9, 2010.
  • 2The acquisition adds 735 megawatts (MW) of operating wind electric generating facilities to Exelon's portfolio.
  • 3An additional 230 MW of wind generation projects in advanced development in Michigan are also included in the acquisition.
  • 4The purchase price is $860 million, with up to an additional $40 million payable upon commencement of construction of the Michigan projects.
  • 5The acquisition price includes adjustments for working capital and reimbursement for certain capital expenditures made by Deere.
  • 6This move significantly expands Exelon's presence in the renewable energy sector.

Frequently Asked Questions

This acquisition is significant as it substantially increases Exelon's renewable energy generation capacity, particularly in wind power, aligning with the company's strategy to diversify its energy portfolio and invest in cleaner energy sources.

Exelon is acquiring 735 megawatts (MW) of operating wind power facilities and an additional 230 MW of wind projects under development, totaling 965 MW.

The base purchase price is $860 million, with a potential additional $40 million contingent on the commencement of construction for the Michigan projects. The final price may also be adjusted for working capital and prior capital expenditures.

Yes, as with any acquisition, there are inherent risks. Exelon's filings, including its 2009 Form 10-K and its Q3 2010 Form 10-Q, detail various risk factors that could impact the actual results of this acquisition, such as operational challenges or market conditions for renewable energy.