Exelon's Business Strategy: John W Rowe's Way
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Code : COM0026
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Region : USA
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Exelon Beginnings The United States had deregulated long-distance telephone service, airlines and a host of other industries, often resulting in competition that was a boon to consumers. In 1993, the California Public Utilities Commission began to draft such a policy. It allowed large users to buy power directly from independent producers and froze customer rates at artificially high levels so utilities could recover their investments in costly plants. Moreover, residential customers were granted an immediate 10% rate cut. The system came into effect on April 1st 1998, and, at first, things seemed to work well... Cost Cutting On June 13th 2001, Exelon Corporation announced its intent to eliminate 292 Local' 15 Union positions, including 138 layoffs in Exelon Nuclear and 154 at Commonwealth Edison. These layoffs began on July 13th 2001. These positions, consisting mainly of clerical and maintenance in Exelon Nuclear and field billing in ComEd Energy Delivery, were targeted based on redundancies and efficiencies, and were a part of the anticipated total number of job reductions announced in conjunction with the merger of Unicom and PECO Energy... Successes and Failures of Exelon's Business Strategy In 1997, PECO's 50-50 joint venture with British energy proved to be a good venture. In December 2003, Exelon purchased British Energy Plc's 50% interest in AmerGen Energy Company, LLC (AmerGen). This particular venture was expected to be real money-maker for the company. Exelon's operating revenue and net income increased during the period between 1999 and 2002. The profits were passed on to the shareholders through dividend payment... |
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