Company Also Reaches Agreement With
Engie to Purchase Neighboring LNG Import
Terminal to Ensure a Reliable Supply of
Fuel to Meet Capacity Commitments
Exelon Generation today
announced it has filed with the
ISO New England Inc. (ISONE)
to retire Mystic Generating
Station’s Units 7, 8, 9, and the Jet
unit on June 1, 2022. Absent any
regulatory reforms to properly
value reliability and regional
fuel security, these units will
not participate in the Forward
Capacity Auction scheduled for
February 2019.
“Mystic has a strong track
record as a source of reliable,
around-the-clock electric supply
to over two million homes
in New England,” said Ron
DeGregorio, president of Exelon
Power. “However, the ISO-NE
market fails to properly reflect
the reliability and fuel security
benefits that these power plants
provide to the region.”
“Today is a difficult day, not
only for the talented men and
women who have dedicated
themselves to operating Mystic
safely and reliably every day,
but also for their families, their
communities, and all of their
colleagues here at Exelon,”
continued DeGregorio. “We
will continue to engage in
supportive, open and honest
dialogue with employees in the
coming months.”
ISO-NE recently stated that
it may propose interim and
long-term market rule changes
to address system resiliency in
light of significant reliability
risks identified in ISO-NE’s
January 2018 fuel security
report. Changes to market rules
are necessary because critical
units to the region, like Mystic
8 and 9, cannot recover future
operating costs including the cost
of securing fuel. To the extent
that changes are timely filed and
approved by the Federal Energy
Regulatory Commission, Exelon
Generation may reconsider the
retirement of the Mystic units.
In a related move, Exelon
Generation also announced an
agreement to purchase ENGIE
North America’s LNG import
terminal to ensure the continued
reliable supply of fuel to Mystic
Units 8 and 9 while they remain
operating. Exelon also looks
forward to continuing ENGIE’s
mission of providing safe,
reliable LNG to gas utilities,
marketers, and other market
participants throughout New
England.
Tr a n s a c t i o n c l o s u r e i s
dependent upon regulatory
review by the U.S. Department
of Energy for LNG import
authorization and, as necessary,
authorization from the U.S.
Department of Justice. The
transaction is expected to close
in the fourth quarter of 2018.
The Everett Marine Terminal,
also known as the Distrigas
Terminal, is the longestoperating
LNG import facility
of its kind in the United States.
The facility has connections
with two interstate pipeline
systems, as well as a local gas
utility’s distribution system. It
employs 50 people and pays $7
million in state and local taxes.
Mystic Generating Station
is a 2,000-megawatt natural
gas- and oil-fueled power plant.
Mystic Units 7, 8 and 9 are the
operating units at the plant;
Units 1-6 are decommissioned.
Mystic employs 110 full-time
workers, more than 200 local
union craftsmen for seasonal
readiness outages, and pays
$15 million per year in local
taxes that support municipal
government, schools, libraries,
parks and other services.
Exelon is committed to holding
informational meetings with
employees over the next several
months to ensure transparency
throughout the process.
E x e l o n G e n e r a t i o n , a
subsidiary of Exelon Corporation
(NYSE: EXC), is one of the
largest, most efficient clean
energy producers in the U.S.,
with a generating capacity of
around 35,000 megawatts.
Exelon Generation operates
the largest U.S. fleet of carbonfree
nuclear plants with 20,300
megawatts of capacity from
23 reactors at 14 facilities in
Illinois, Maryland, New Jersey,
New York and Pennsylvania.
Exelon Generation also operates
a diverse mix of wind, solar,
landfill gas, hydroelectric,
natural gas and oil facilities in
18 states with around 15,000
megawatts. Exelon Generation
h a s a n i n d u s t r y – l e a d i n g
safety record and is an active
partner and economic engine
in the communities it serves
by providing jobs, charitable
contributions and tax payments
that help towns and regions grow.
Follow Exelon Generation on
Twitter @ExelonGen, view the
Exelon Generation channel on
YouTube, and visit: http://www.
exeloncorp.com/companies/
exelon-generation.
C a u t i o n a r y S t a t e m e n t s
Regarding Forward-Looking
Information: This press release
contains certain forward-looking
statements within the meaning of
the Private Securities Litigation
Reform Act of 1995, that are
subject to risks and uncertainties.
The factors that could
cause actual results to differ
materially from the forwardlooking
statements made by
Exelon Corporation and Exelon
Generation Company, LLC
(Registrants) include those
factors discussed herein, as
well as the items discussed in (1)
Exelon’s 2017 Annual Report
on Form 10-K in (a) ITEM
1A. Risk Factors, (b) ITEM 7.
Management’s Discussion and
Analysis of Financial Condition
and Results of Operations
and (c) ITEM 8. Financial
Statements and Supplementary
Data: Note 23, Commitments
and Contingencies; and (2) other
factors discussed in filings with
the SEC by the Registrants.
Readers are cautioned not to
place undue reliance on these
forward-looking statements,
which apply only as of the date
of this press release.
Neither of the Registrants
undertakes any obligation to
publicly release any revision to
its forward-looking statements
to reflect events or circumstances
after the date of this press release.