Unicom Corporation Embarks on New Strategic Direction in Illinois Energy Market

Strategic Insights -

Unicom Corporation, parent company of ComEd, has announced a new strategic direction aimed at enhancing competition in the Illinois energy market. The plan, championed by Chairman and CEO John W. Rowe, prioritizes reliability while promoting competitive markets through the sale of coal-fired generation plants. This move is in line with the Illinois Restructuring Act of 1997, which requires utilities to maintain reliability, open the market to competition, and reduce electricity costs for residential customers. The company aims to reduce residential electricity rates by 15% in August and drive the development of a competitive marketplace.

Key Takeaways:

  • Unicom Corporation will sell its coal-fired generation plants to stimulate competitive markets and reduce electricity costs for residential customers, in accordance with the Illinois Restructuring Act of 1997.
  • The sale will generate cash to support ComEd's focus on superior operation of its nuclear power plants and regulated energy delivery systems.
  • The company will design a sale process to conclude a transaction upon acceptable terms after the summer of 1999, allowing business customers to choose their electric supplier.
  • Unicom aims to optimize its core competencies by investing in new markets and becoming the Midwest's leading retail supplier of electricity, natural gas, and energy services.
  • The company has set specific milestones for achievement under six objectives, including providing a reliable supply of electricity, improving quality of delivery service, and transforming the culture to achieve higher performance and diversity.
  • Accountability is built into the plan, with a focus on swift, measurable success and regular communication with employees, customers, and stakeholders.

Statistics:

  • ComEd provides service to over 3.4 million customers across Northern Illinois, accounting for 70% of the state's population.
  • Unicom Corporation is incorporated in 1994 and has its headquarters in Chicago.
  • The Illinois Restructuring Act of 1997 requires utilities to maintain reliability, open the market to competition, and reduce electricity costs for residential customers.

Sources:

  • Unicom Corporation PRNewswire press release, July 6, 1998.