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Exelon Sets Voluntary Goal to Cut GHG Emissions by 8%

Exelon Corporation has established a voluntary goal to reduce its greenhouse gas emissions by 8% from 2001 levels by the end of 2008. Exelon has also committed to work with, and encourage, its suppliers to reduce their GHG emissions. The company will incorporate recognition of GHG emissions and their potential cost into its business analyses as a means to promote internal investment in climate-reducing activities.

Exelon made this pledge under the U.S. Environmental Protection Agency's Climate Leaders program. Climate Leaders is a voluntary EPA industry-government partnership that works with companies to develop long-term, comprehensive climate change strategies. Partners set a corporate-wide GHG reduction goal and inventory their emissions to measure progress. By reporting inventory data to EPA, partners create a lasting record of their accomplishments. Partners also identify themselves as corporate environmental leaders and strategically position themselves as climate change policy continues to unfold.

The Pew Center on Global Climate Change, a nationally recognized leader in the effort to address global climate change, assisted Exelon in developing its goal, strategy and program.

"At Exelon, we accept that the science of global warming is overwhelming. We accept that limitations on greenhouse gases emissions will prove necessary. Until those limitations are adopted, we believe that business should take voluntary action to begin the transition to a lower carbon future," said John W. Rowe, chairman, president and CEO, Exelon.

Compared to other utilities of equal size, Exelon's total GHG emissions are relatively low. Nuclear generation constitutes the majority of the company's generating capacity and is the main reason for its low carbon emission rates. The Coalition for Environmentally Responsible Economies (CERES) ranked Exelon 93rd on a list of 100 utilities in terms of CO2 emissions intensity from all generating sources (on a scale with one being the most emissions and 100 the least emissions) and 47th in terms of total tons of CO2 emissions based on 2002 data. Despite its low GHG intensity, Exelon is committed to an eight-percent reduction from 2001 levels, which represents a decrease of an estimated 1.3 million metric tons of GHG emissions.

To achieve its goal, Exelon will pursue a portfolio of actions. Exelon expects that more than half its reductions will come from the use of cleaner energy, including increased renewable generation and increased output from its landfill gas and hydroelectric facilities. In addition, the company has already ceased operations at several of its older, less efficient fossil fuel plants, including Mystic 4-6 and Delaware 7-8.

Exelon has looked at its own usage of energy and undertaken internal energy efficiency initiatives across its operations and expects that about one quarter of the emissions reductions will result from these efforts. Exelon anticipates that a valuable, though much smaller, portion of expected reductions will be derived from carbon sequestration efforts. The company will seek to invest in its own facilities first before investing in emission offsets.

In addition to climate management, Exelon's environmental priorities include increasing renewable energy supplies, promoting efficient use of electricity and natural gas, contributing to the development of a sound national policy addressing climate change, and preserving the option for low-carbon intensity technologies, including nuclear, for the future.

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