Summary
Exelon Corporation (EXC) announced through an 8-K filing on April 30, 2021, that its subsidiary, Exelon Generation Company, LLC, has entered into an agreement to sell its interest in the Albany Green Energy biomass facility. The sale is to ReGenerate Energy Holdings, LLC, with completion anticipated in the latter half of 2021, subject to customary closing conditions. As a consequence of this divestiture, Exelon expects to reclassify the assets and liabilities associated with the Albany facility as held for sale. The company anticipates recording a pre-tax impairment loss in the range of $135 million to $150 million. Importantly, this impairment loss will be excluded from Exelon's and its subsidiary's Adjusted (non-GAAP) Operating Earnings, indicating management's view that it's an unusual or infrequent item not reflective of ongoing operational performance.
Key Highlights
- 1Exelon to sell Albany Green Energy biomass facility.
- 2Sale expected to close in the second half of 2021.
- 3Anticipated pre-tax impairment loss between $135 million and $150 million.
- 4Impairment loss will be excluded from Adjusted Operating Earnings (non-GAAP).
- 5Divestiture aligns with strategic portfolio management.