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PECO Signs Agreement For Wind Energy Credit Purchase

Posted on: Monday, 6 October 2008, 12:00 CDT

PECO recently signed a five-year agreement with IBERDROLA RENEWABLES to purchase 240,000 megawatt-hours of wind energy credits. With the purchase, PECO becomes the first utility in the state to buy and bank renewable energy credits to meet its Pennsylvania's Alternative Energy Portfolio Standards (AEPS) requirements in 2011.

"By purchasing these renewable energy credits now, and banking them to meet future requirements, we can take advantage of current market prices," said Denis O'Brien, president and CEO of PECO. "Acting now also helps increase the demand for renewable energy resources and promote clean energy technologies."

Alternative energy credits are sold by renewable energy generators on a one-to-one basis each time one megawatt-hour of renewable energy is produced. This purchase is expected to have the same environmental benefit as removing 156,000 tons of carbon dioxide from the atmosphere.

The wind energy associated with the renewable credits will be generated from IBERDROLA RENEWABLES' Providence Heights Wind Farm in Bureau County, Illinois and is enough to power about 25,000 homes for one year.

"We are pleased to work with PECO and offer them a product that meets their needs and helps expand the market for wind power," said Barrett Stambler, vice president of wind marketing and sales for IBERDROLA RENEWABLES. "Pennsylvania's AEPS will be a vital driver for wind power and create long-term environmental and economic benefits."

Pennsylvania's AEPS legislation, enacted in 2004, requires that by 2011 3.5 percent of the energy sold to PECO customers be provided through renewable resources -- such as wind, methane gas and biomass. By 2020 this percent increases to 8 percent of the total energy sold to customers. The company estimates that as much as 1,512 megawatts of renewable resources could be needed by 2020 to meet this requirement.

These efforts are part of an ongoing initiative at PECO to preserve the environment and help customers become more environmentally responsible as well. PECO's other environmental projects include the opening of PECO's first 'green building' in West Chester, Pa.; the installation of a green roof and a new Crown Lights messaging system at the company's Center City headquarters; upgrades to secure Leadership in Energy and Environmental Design (LEED) certification for many company buildings; and community and customer support for environmental and energy efficiency projects. These efforts support Exelon2020, the comprehensive environmental plan of PECO's parent company that aims to reduce, offset or displace more than 15 million metric tons of greenhouse gas emissions per year by 2020.

Based in Philadelphia, PECO is an electric and natural gas utility subsidiary of Exelon Corporation (NYSE:EXC). PECO serves 1.6 million electric and 480,000 natural gas customers in southeastern Pennsylvania and employs about 2,500 people in the region. PECO delivered 78.5 billion cubic feet of natural gas and 39.9 billion kilowatt-hours of electricity in 2007. Founded in 1881, PECO is one of the Greater Philadelphia Region's most active corporate citizens, providing leadership, volunteer and financial support to numerous arts and culture, education, environmental, economic development and community programs and organizations.

IBERDROLA RENEWABLES is currently the world's leading provider of wind power with more than 8,000 MW of wind power in operation globally now. Between 2008-2012, the company will invest $26.8 billion globally to achieve installed capacity of close to 18,000 MW and production of more than 42,000 GWh. IBERDROLA RENEWABLES will invest $8 billion in the U.S. between 2008 and 2012 and plans to install 1,000 MW of wind power each year in the U.S. www.iberdrolarenewables.us.

If you are a member of the media and would like to receive PECO new releases via e-mail please send your e-mail address to PECO.Communication@exeloncorp.com

Source: Business Wire

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