Exelon Generation capacity driven by nuclear plants

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Power generation is a major revenue driver

Exelon Corporation (EXC) operates in two US business sectors—power generation and regulated utilities. The power generation business is the major source of revenue for Exelon. In the third quarter of 2014, 62.8% of the company’s revenues came from Exelon Generation.

Generation

Rise in income from generation

Earnings from Exelon Generation increased by 5.4% year-over-year to $433 million. Operating revenue for the segment was $4.4 billion, compared to $4.2 billion a year ago. The increase in earnings can be attributed to higher realized electricity prices, efficient portfolio management optimization activities, and cancellation of nuclear fuel disposal fees by the Department of Energy (or DOE).

Exelon’s large nuclear fleet

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Nuclear power plants contribute a high proportion of the electricity produced by Exelon. More than 50% of the company’s capacity is driven by its nuclear fleet. Edison International (EIX), Public Service Enterprise Group Inc. (PEG), and PG&E Corporation (PCG) are some of the other US power companies with a high percentage of nuclear-generated capacity. All of these companies are part of the Select Sector Utilities Select Sector SPDR Fund (XLU).

Operational performance for the quarter

In this quarter, the capacity factor for nuclear power plants was 96.5% compared with 94.8% for the third quarter of 2013. Capacity factor is the ratio of actual power produced to the maximum power that can be produced by a power plant. Energy capture for wind and solar power plants increased from 92.9% to 94.9% year-over-year.

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