15.3 C
New York
Wednesday, October 27, 2021

Buy now

spot_img

Exelon spinoff could be moving to East Coast – Crain’s Chicago Business

The relocation of Joe Dominguez to the East Coast now that he’s been tapped to run Exelon’s soon-to-be-spun-off power-generation unit points to an Eastern headquarters once the corporate split-up is completed.

Chicago-based Exelon thus far hasn’t said where the headquarters of either its regulated business or its power-plant unit will be once the two are separated, expected early next year.

Dominguez, CEO of Exelon-owned Commonwealth Edison for the past three years, recently sold his Hinsdale home, Crain’s reported. On Oct. 1, he was named CEO of Exelon Generation, which will be rebranded as Constellation when it becomes a standalone company.

ExGen is headquartered in the Philadelphia suburbs. Another important part of that unit—the retail energy supply business, currently dubbed Constellation—is based in Baltimore.

“The power generating part of that business has been based in Kennett Square, Penn., for more than 10 years, and the retail and wholesale part of that business has been based in Baltimore for even longer, so it makes sense that (Dominguez) would return to that area,” spokesman Paul Adams said in an email. “Post-separation headquarters locations have not been determined and will be announced at a later time.”

Chris Crane, CEO of Exelon, will remain CEO of the regulated utilities, which will keep the Exelon name. ComEd is part of that group, as well as power and gas utilities in Philadelphia, Baltimore, Washington, D.C., and other parts of Maryland, Delaware and New Jersey.

The likely East Coast headquarters for Constellation will come after Illinois Gov. J.B. Pritzker signed into law a wide-ranging energy bill that provides a $700 million, five-year ratepayer bailout for three nuclear plants in the state that Constellation will own and run. A 2016 law subsidized another two Illinois nukes to the tune of $235 million annually over 10 years.

Just one of the six Illinois nukes Constellation will own is unsubsidized.

Dominguez’s time running ComEd was tumultuous, marked by admissions in mid-2020 to a nearly decadelong bribery and influence peddling scheme aimed at winning lucrative legislation in Springfield. But the blame for the scandal was pinned on Dominguez’s predecessor, Anne Pramaggiore, whom federal prosecutors have charged with conspiracy. She denies the charges.

Dominguez kept a low profile through the tortuous negotiations in Springfield that led to passage of the energy law last month. The power-plant business for years has been perceived as the weak half of Exelon, mainly due to persistently low wholesale power prices. Hiving off a unit that was dragging down Exelon’s stock price was the primary reason for the corporate split-up.

But, thanks to the subsidies in Illinois and significantly higher energy prices than a year ago, the outlook for standalone Constellation is improved. It just isn’t expected to be based here.

?s=96&d=mm&r=g

Related Articles

Stay Connected

0FansLike
2,994FollowersFollow
0SubscribersSubscribe
- Advertisement -spot_img

Latest Articles