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Exelon to Retire Three Mile Island Generating Station in 2019

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Exelon Corporation today said it will prematurely retire its Three Mile
Island Generating Station (TMI) on or about September 30, 2019, absent
needed policy reforms. Officials met with employees and informed
community leaders, and pledged continued open dialogue as they prepare
for this transition.

"Today is a difficult day, not just for the 675 talented men and women
who have dedicated themselves to operating Three Mile Island safely and
reliably every day, but also for their families, the communities and
customers who depend on this plant to produce clean energy and support
local jobs," said Chris Crane, Exelon president and CEO. "Like New York
and Illinois before it, the Commonwealth has an opportunity to take a
leadership role by implementing a policy solution to preserve its
nuclear energy facilities and the clean, reliable energy and good-paying
jobs they provide. We are committed to working with all stakeholders to
secure Pennsylvania's energy future, and will do all we can to support
the community, the employees and their families during this difficult
period."

Exelon is taking the first steps to shut down the nuclear plant,
including:

  • Informing key stakeholders, which will include sending PJM a
    deactivation notice and making permanent shutdown notifications to the
    Nuclear Regulatory Commission within 30 days;
  • Immediately taking one-time charges of $65-110 million for 2017, and
    accelerating approximately $1.0-1.1 billion in depreciation and
    amortization through the announced shutdown date;
  • Terminating capital investment projects required for long-term
    operation of TMI; and
  • Canceling 2019 fuel purchases and outage planning, impacting about
    1,500 outage workers.

Absent policy reforms, the loss of Pennsylvania nuclear plants would
increase air pollution, compromise the resiliency of the electric grid,
raise energy prices for consumers, eliminate thousands of good-paying
local jobs and weaken the state's economy.

Despite producing 93 percent of the Commonwealth's emissions-free
electricity and avoiding 37 million tons of carbon emissions — the
equivalent of keeping 10 million cars off the road every year — nuclear
power is not included in the state's Alternative Energy Portfolio
Standard (AEPS). Yet 16 clean power sources including solar, wind and
hydro energy are supported by this state energy policy.

Amending the AEPS is one of many potential solutions to preserve
Pennsylvania's nuclear plants. Other options include establishing a zero
emissions credit program, similar to the approach being implemented in
Illinois and New York. Exelon is committed to working with its
stakeholders to find the best solution for Pennsylvania — one that will
maintain nuclear energy's $2 billion annual contribution to the state's
economy and its approximately 16,000 direct and indirect Pennsylvania
jobs.

TMI directly employs 675 workers and contracts another 1,500 local union
workers for refueling outages. The station provides more than $1 million
in state property taxes and more than $300,000 in local community giving
each year.

Exelon's highly trained employees will continue to operate the plant at
world-class levels of excellence, with staff transitions expected within
six months of the plant's final shut down.

Exelon Corporation (NYSE:EXC) is a Fortune 100 energy company with
the largest number of utility customers in the U.S. Exelon does business
in 48 states, the District of Columbia and Canada and had 2016 revenue
of $31.4 billion. Exelon's six utilities deliver electricity and natural
gas to approximately 10 million customers in Delaware, the District of
Columbia, Illinois, Maryland, New Jersey and Pennsylvania through its
Atlantic City Electric, BGE, ComEd, Delmarva Power, PECO and Pepco
subsidiaries. Exelon is one of the largest competitive U.S. power
generators, with more than 33,300 megawatts of nuclear, gas, wind, solar
and hydroelectric generating capacity comprising one of the nation's
cleanest and lowest-cost power generation fleets. The company's
Constellation business unit provides energy products and services to
approximately 2.2 million residential, public sector and business
customers, including more than two-thirds of the Fortune 100. Follow
Exelon on Twitter @Exelon.

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