Exelon Expects Impairment Charge From Planned Generator Shutdown
August 21 2020 - 10:42AM
Dow Jones News
By Matt Grossman
Exelon Corp. expects to record a non-cash impairment charge in
the third quarter related to the planned shutdown of a power
station in Massachusetts, the company said in a Friday regulatory
filing.
The planned permanent shutdown of the final two operating units
at Mystic Generating Station, scheduled for May 2024, will lead to
a non-cash impairment charge of $350 million to $550 million on a
pre-tax basis in the third quarter, Exelon said.
In June, Exelon had filed a complaint with the Federal Energy
Regulatory Commission against the regional power-grid operator, ISO
New England. The complaint sought to keep open the possibility of
the plant's units eight and nine staying operational beyond 2024.
The FERC denied the complaint on Aug. 17, Exelon said, leading the
company to schedule the plant's closure.
In addition to the impairment charge, Chicago-based Exelon
expects to record higher depreciation expenses through the plant's
closure. The expected incremental non-cash pre-tax expense will be
$75 million to $125 million annually until the plant is closed,
Exelon said.
Write to Matt Grossman at matt.grossman@wsj.com
(END) Dow Jones Newswires
August 21, 2020 10:27 ET (14:27 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
Exelon (NASDAQ:EXC)
Historical Stock Chart
From Mar 2024 to Apr 2024
Exelon (NASDAQ:EXC)
Historical Stock Chart
From Apr 2023 to Apr 2024