PECO Energy Company (PECO), a unit of Exelon Corporation (Exelon), intends to fund its electric and gas operations with $400 million investment in 2009. The fund will be used for the transmission and distribution system performance work, capacity upgrades, corrective maintenance programs, relocation of utility facilities for public roadway or other projects, and new facilities to accommodate new residential, business or institutional construction.

About $142 million has been allocated to modernize or replace older facilities and expand electric and gas capacity in certain communities.

PECO’s operational and strategic projects will improve the Greater Philadelphia economy based on an estimated 1,100 jobs and purchase of materials and services.

The total investment plan is same as 2008, and spending still can be adjusted based on economic conditions, particularly impacts on new business activity and projected capacity expansion requirements and from stimulus programs.

The largest project getting underway with construction in 2009 is a new electric transmission substation in Worcester, to improve regional grid reliability during peak summer demand periods. The $45 million project recently received state Public Utility Commission approval after an extensive two-year process for project planning, community outreach and siting.

Also in the suburbs, PECO will expand its distribution automation efforts, complete upgrades on circuits to improve electric reliability in targeted areas, and expand local substations in Warminster, Gladwyne, Goshen, and other locations in southern Chester county and York county. PECO also is building or modernizing three substations in the City of Philadelphia – one serving University City and West Philadelphia, another in the Grays Ferry section, and a facility on Schuylkill Avenue in South Philadelphia.

At its Center City headquarters, PECO intends to replace its transmission operations control center over the next two years. Besides this, PECO is upgrading lighting and heating, ventilating, and air conditioning system at its headquarters and several suburban sites to improve energy efficiency and reduce waste. PECO will also implement its mobile dispatch technology, which will benefit its field operations handling storm response and maintenance activities.

For its gas business, PECO will be working throughout 2009 on nearly 100 projects to boost distribution pressure and/or replace underground mains and services with newer facilities that are easier to maintain, uphold strong reliability and improve customer satisfaction. The projects are located in all four suburban counties surrounding Philadelphia including:

Abington, Cheltenham, East Norriton, Glenside, Lower Merion, Lower Providence, Norristown, Plymouth, Springfield, Towamencin, Trappe, Upper Merion, Upper Moreland, West Norriton, and Whitemarsh in Montgomery county;

Bethel, Haverford, Marple, Radnor, Springfield, Swarthmore, and Upper Darby in Delaware county.

“Whether it is a down economy or a growing one, PECO must fulfill its obligation to our customers and this region with investments in infrastructure improvements, new technology, and projects to ensure safe, reliable service. Our work this year will provide benefits for the area this year and for years to come,” PECO Senior Vice President and Chief Operating Officer Craig Adams said. “To be prudent, we still are pursuing cost-saving opportunities across our operations to reflect our current economic realities.”