Exelon to slash greenhouse gases by 2020

COLUMBUS, Ohio -- Exelon Corp. said Tuesday that it plans to slash its greenhouse gas emissions and those of its customers within 12 years to levels below what one of the nation's largest power generators currently emits every year.

The Chicago-based company, already on track to cut greenhouse gas emissions by 8 percent from 2001 levels, said its $10 billion plan to cut 15 million metric tons of carbon dioxide annually will be the equivalent of removing nearly 3 million cars from American roads. Greenhouse gases are cited for rising world temperatures.

"The science is overwhelming -- climate change is happening now and human activity is the primary cause," John Rowe, Exelon's chairman, president and chief executive, said in a statement.

Exelon says much of the reduction will come from cutting its energy consumption by 25 percent. The company said it will help customers slash their energy use and expand its reliance on low-carbon electricity, including the expansion of nuclear power operations.

New natural gas-fired plants that will also reduce reliance on older plants, Exelon said.

Exelon said it will still emit greenhouse gases in 2020, just at much lower levels.

Its best guess is that the plan will cut Exelon's direct emissions by 10 percent to 15 percent below 2001 levels when it emitted 15.7 million metric tons of greenhouse gases. It reaches the 15 million metric ton figure by adding emissions that Exelon will offset or displace.

Exelon already is a low emitter of greenhouse gases compared with other large power generators because of the size of its nuclear power operations. Exelon has 17 reactors that represent approximately 20 percent of the U.S. nuclear industry's power capacity.

Exelon said energy efficiency -- such as improve lighting, heating and cooling, and appliance recycling -- can provide the least expensive near-term reductions that, in many cases, can generate more energy savings than the cost of the improvements.

Environmental groups praised part of Exelon's plan, particular the emphasis on energy efficiency and replacing older, dirty operations with cleaner ones and new generation from wind, solar and other sources.

"You've got a frame that makes a great deal of sense in terms of existing emissions," said Henry Henderson, director of Midwest programs for the Natural Resources Defense Council.

But the NRDC and the Sierra Club remained concern about Exelon's reliance on nuclear power.

Sierra Club spokesman John Dorner said money spent on expanding nuclear operations would be better spent on expanding renewable sources of electricity or improving efficiency.

Exelon has 5.4 million electric customers in northern Illinois and Pennsylvania. It also has 480,000 natural gas customers in the Philadelphia area.