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Exelon Corporation : Constellation Wins Unique Coal-Free Power Supply Agreement with City of Chicago | 4-Traders

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Exelon Corporation : Constellation Wins Unique Coal-Free Power Supply Agreement with City of Chicago 11/14/2013 | 09:12am US/Eastern
Supply from non-coal generation sources will lower city's costs and
support environmental goals

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Constellation today announced a unique power supply agreement with the
City of Chicago that will be sourced entirely from non-coal generation

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New rates secured under the 25-month agreement will deliver a 2 percent
discount from the City's last electricity contract, despite escalating
regional transmission and other tariff costs, amounting to a reduction
in City electricity costs of $1.2 million over two years.

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In addition to capturing historically low market prices, the agreement
ensures Chicago's power supply will be sourced by Constellation from
non-coal fueled assets. By eliminating coal and transitioning to cleaner
energy produced by nuclear and natural gas generation facilities based
in Illinois, the City will reduce its carbon emissions by 99.5 percent
and remove the equivalent of 221,000 cars from the road. The City's
agreement with Constellation also complies with Illinois Renewable
Portfolio standards. Meeting this non-coal supply requirement does not
add any cost to the City, and will contribute to meeting the City's
Climate Action Plan goals.

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"Through the success of the municipal aggregation program, the City of
Chicago has decreased its carbon footprint while delivering savings to
residents and small businesses," said Mayor Rahm Emanuel. "Our agreement
with Constellation will build on this success while creating a cleaner,
healthier environment for our children."

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Constellation was selected from a pool of Qualified Bidders that
represent some of the most sophisticated and financially stable
suppliers in the region. Constellation was selected after three planned
pricing events yielded successive reductions in bidder pricing.
Constellation was the low-price bidder in all categories, and has agreed
to meet all City contract terms and conditions. The actual rate and
weighted average price for the fixed facility portion is $42.67MWh

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"We're pleased to partner with the City of Chicago on an agreement that
will lower costs, enhance sustainability and advance Chicago's clean
energy leadership," said Louis J. Hutchinson III, vice president, public
sector, Constellation.

The agreement applies to the City's Fleet and Facility Management (2FM)
portfolio, which includes all City owned facilities that 2FM manages,
including all City libraries, police and fire stations as well as
buildings like the Cultural Center, City Hall, Harold Washington
Library, O'Hare and Midway airports. 2FM manages a total of 450
facilities and all of the City's street and traffic lights.

About Constellation

The Constellation family of retail electricity and natural gas suppliers
are subsidiaries of Exelon Corp., and are leading competitive retail
suppliers of power, natural gas and energy products and services for
homes and businesses across the continentalomega sea master


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