Constellation, the competitive retail and wholesale energy handling arm of Exelon Corporation EXC, has inked a 20-year power supply agreement with Archdiocese of Baltimore. Per the terms of this deal, Constellation will construct, own and operate a 5.4 megawatt (“MW”) solar power plant in Hartford County, MD.
The solar power station will be capable of generating enough electricity to meet 20% of Archdiocese’s consumption needs as well as displace 5,000 tons of carbon dioxide emissions annually.
This project cements the role of Constellation as the leading solar energy producer in Maryland, having over 35 MW of projects under its wing. The company expects to operate an additional 25 MW by year end.
Recently, in a similar power purchase agreement spanning 25 years, Constellation teamed up with Amphitheater Public Schools to construct a 9.4 MW solar plant in Tucson, AZ which will generate enough electricity to meet 60% of the district’s needs.
Per a study by the Solar Energy Industries Association (SEIA) in the U.S., falling costs of solar have paved the way for 59% growth in adoption in the past one year.
Exelon’s ongoing investments in renewables and natural gas construction reveal its fuel diversification initiatives. In Jun 2015, the Generation segment’s Perryman 6 natural gas power plant in Maryland started commercial operations. Construction of two low-carbon, combined-cycle gas turbine units in Texas, each with a capacity of 1,000 MW, is underway. These initiatives will reduce Exelon’s dependence on its nuclear power plants as well as the associated risks of accidents, going forward.
Zacks Rank
Exelon carries a Zacks Rank #2 (Buy). Other favorably ranked utility stocks include Korea Electric Power Corp. KEP, sporting a Zacks Rank #1 (Strong Buy) and FirstEnergy Corp. FE and IdaCorp, Inc. IDA, both carrying a Zacks Rank #2 (Buy).
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