Exelon Corporation’s (EXC) subsidiary PECO Energy Company (“PECO”) announced that it will spend $0.65 million to replace and carry out allied preventive maintenance activities on its 50,000 feet of underground electricity cable in first-quarter 2013. In addition, approximately 28,000 feet of underground cable will be injected with silicone gel to plug and seal splits that may occur during the cable’s insulation. Exelon intends to complete these activities by Mar 2013.
This infrastructure upgrade program along with utilization of latest expertise will enable Exelon Corporation to provide uninterrupted services to its 5,000 strong customer base, strengthen system competence, reduce cable malfunctions and limit digging. These factors will subsequently improve consumer confidence as well as public safety.
PECO invests regularly for improvement of its energy transmission and distribution operations and installation of modern technologies. In Jan 2013, the company invested approximately $2.2 million in tree trimming along 348 miles of aerial electric lines in its operating region.
It is evident from Exelon Corporation’s capital spending program that the company currently intends to upgrade its electricity distribution assets. In 2013, the company plans to invest $5.5 billion including an allocation of $1.4 billion for improvement of distribution infrastructures.
In fourth-quarter 2012, Exelon Corporation’s net cash from operating activities was $6.1 billion, up 27.1% year over year. The company ended the quarter with cash and cash equivalents of $1.5 billion, significantly up from $1.0 billion as of Dec 31, 2011. We believe that Exelon Corporation’s strong financial position encourages it to follow steady infrastructure development activities.
Exelon Corporation currently has a Zacks Rank #3 (Hold). Other stocks from the industry that are presently performing well include Brookfield Infrastructure Partners L.P. (BIP), Otter Tail Corporation (OTTR) and Pike Electric Corporation (PIKE) all carrying a Zacks Rank #1 (Strong Buy).
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