Exelon to Separate Power-Generation Business Via Spinoff

Company to structure separation deal as a tax-free spinoff
‘A hybrid company like Exelon will trade at a discount’

Control panels stand in a room at the Exelon Corp. Three Mile Island nuclear power plant in Middletown, Pennsylvania, U.S., on Wednesday, April 11, 2018. On Sept. 30, Exelon Corp. plans to take Three Mile Island offline because it is no longer profitable. Across the U.S., Nuclear plants are having trouble staying competitive in an era of cheap natural gas, a product of the shale boom.Photographer: Michelle Gustafson/Bloomberg

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By Will Wade

February 24, 2021 at 12:00 PM UTC

Updated on

February 24, 2021 at 4:47 PM UTC

This article is for subscribers only.

Exelon Corp. plans to separate its power-generation unit from the U.S. company’s utilities business in an effort to streamline operations and increase shareholder value.

The Chicago-based utility owner plans to structure the deal as a tax-free spinoff that will be completed in the first quarter of next year, according to a statement Wednesday. Existing Exelon shareholders will receive shares in the new entity, but the company hasn’t yet determined the distribution ratio.