In this part of the series, we’ll discuss Exelon Corporation’s (EXC) operating segments. Exelon’s operations can be broadly divided into two parts:
- Power generation
- Electric utility
Power generation is Exelon’s most important operating segment. The segment generates 60% of its revenue. Exelon’s power generation business is operated by its subsidiaries—Exelon Nuclear, Exelon Power, and Constellation. Exelon Nuclear handles the power generated from nuclear energy. The rest of the energy is handled by Exelon Power. Although Constellation is structurally part of Exelon, it conducts power delivery and electricity sales in the wholesale market.
Exelon provides electricity to ~6.6 million customers through its three subsidiaries:
- ComEd – 3.8 million customers
- BGE – 1.2 million customers
- PECO – 1.6 million customers
The utilities division provides the other 40% of the company’s revenues. Apart from electricity, Exelon supplies natural gas to 1.2 million consumers across the U.S. In terms of the number of customers, Exelon is second to only Duke Energy (DUK). DUK has 7.2 million customers.
Other utility companies that have a large customer base are PG&E Corporation (PCG) and Edison International (EIX). They have 5.2 and 4.9 million electric customers, respectively. All of these companies are part of the Utilities Select Sector SPDR (XLU).
In addition to the power generation and utilities segment, Exelon also has a captive services division. The division is called the Business Service Company (or BSC). BSC takes care of all the support services—like communication, legal, human resources, strategy, finance, and technology—for all of Exelon’s group companies.