APPLICATION FOR THE EDISON ELECTRIC INSTITUTE'S 2017 ADVOCACY EXCELLENCE AWARDFebruary 24, 2017

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EXECUTIVE SUMMARYIn 2014, Illinois faced two energy policy issues where government action was imperative, but far from inevitable. Two of the state’s six nuclear plants were at risk of premature closure for economic reasons, and at the same time, a diverse range of stakeholders sought to expand the use of renewable energy produced in the state and increase the state’s energy efficiency measures. Exelon, the owner and operator of the at-risk nuclear plants, and ComEd, its Illinois electric utility, worked tirelessly with a host of stakeholders – many of whom had traditionally clashed on energy and environmental issues – to bring the solutions for these challenges together into a single bill.

Over the course of two and a half years, the companies employed an innovative advocacy campaign to pass that bill, in one of the most challenging political environments in the nation. This effort included coalition building, advertising, grassroots outreach and mobilization, digital outreach, public events and media relations, to provide context for the negotiations and discussions underway in the state capitol, educate policymakers and drive them to action.

Ultimately more than 200 business, labor, environmental, minority, faith-based and other community groups came together to support the Future Energy Jobs Bill (FEJB). Passed and signed into law in December 2016, the FEJB was Illinois’ most comprehensive energy law in nearly a decade. It pivots the state to the new clean economy, preserves and creates clean jobs and clean energy, while substantially expanding energy efficiency, preserving competitive rates and offering significant support for low-income communities.

Exelon is pleased to present this application, which details the path to success of this campaign, for the Edison Electric Institute’s 2017 Advocacy Excellence Award.

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THE SITUATIONExelon owns and operates one of the nation’s largest, cleanest, lowest-cost power generation fleets. In Illinois, it owns and operates six nuclear energy facilities that produce nearly half of the state’s overall energy and 90 percent of the state’s carbon-free energy. As a result, Illinois is first in the nation for carbon-free electricity generation. These nuclear energy facilities are also the state’s most dependable source of energy. In fact, they provided the most reliable source of energy during the 2014 sub-zero polar vortex, when other fuel sources experienced wide supply curtailments, icing and other operational issues.

However, in 2014, two of the six plants – Clinton Power Station and the Quad Cities Generating Station – faced a perfect storm of economic challenges. With flat electricity demand, an increase in natural gas supply, aging transmission systems, increases in intermittent generation resources like wind and solar and a lack of federal or state policy requirements recognizing the zero-carbon attributes of nuclear energy, the two plants were unprofitable and at risk of premature closure.

At the same time, ComEd was nearing the midpoint of one of its smart grid programs, a $2.6 billion investment plan to modernize its delivery system. ComEd sought policy to build on the smart grid foundation to further integrate clean, renewable energy onto the energy system, while enhancing the resiliency of the grid and meeting the growing customer desire for a clean, lean energy future and more energy choices. Key consumer and environmental stakeholders in Illinois were also advocating strongly for the state to expand its production of renewable energy, putting an emphasis on newer solar and wind powered options, as well as on expanded energy efficiency programs.

Despite the compelling need for action, Illinois had not passed comprehensive energy legislation in nearly a decade. Various interest groups, including consumer advocates, business groups, environmentalists, labor unions and others, had traditionally clashed on energy and environmental issues. This made it difficult for the state’s policymakers to come together in a bipartisan fashion to address the state’s energy challenges.

Further, the state’s political climate was extremely contentious. A newly elected Republican Governor and Democratically controlled state legislature became deadlocked over the state’s budget, threatening the potential for compromise on other

issues. And, coal and natural gas interests were challenging the need for reform at every turn. This division within the competitive generation community exacerbated the long standing political divide between “up state” and “down state” Illinois legislators.

But the need for action on energy policy was imminent. Working in close coordination, Exelon and ComEd launched two distinct campaigns to engage influencers from every part of Illinois, urging the passage of legislation that would preserve the at-risk nuclear energy plants and the thousands of related jobs, advance energy efficiency, support renewable energy and benefit ComEd customers.

This campaign approach of two separate initiatives was done intentionally – by distinguishing the two sets of policy priorities for Exelon and ComEd, it was easier to define the distinct issues and target the unique audiences that were focused on those issues. Further, with key consumer and environmental leaders pursuing renewables and energy efficiency options via a third piece of legislation, it was expected that the long legislative process would eventually require a compromise in a single comprehensive energy bill. It was also anticipated that a proposal to address the struggles of Central and Southern Illinois coal generation facilities would surface at some point throughout the campaign.

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PROGRAM DESCRIPTIONIn the fall of 2014, Exelon initiated “Nuclear Powers Illinois” (NPI), a public advocacy campaign targeted at policymakers, their influencers and the general public. The campaign plan called for a phased approach that first communicated the benefits that Illinois’ nuclear facilities provide families and communities and the risk of their early closure. Once that foundational messaging was delivered, the campaign shifted to directly advocate for legislation to support the plants’ continued operation.

Exelon launched a Nuclear Powers Illinois-branded website and Facebook and Twitter properties to organize and distribute its key messaging. The website housed a number of important pieces of information including:

Fact Sheets

Infographics

Supporter Testimonials

Nuclear Plant Profiles

News Articles

Press Releases

Videos

Calendar of Events

Sharing Tool for Social Media Posts

Contact Your Legislator Tool

Advertisements

January 2015 offered the first major opportunity to advance the campaign’s first phase of messaging, as the State of Illinois issued a report in response to a 2014 resolution (HR 1146) that examined the

benefits of nuclear energy and the environmental and economic costs to Illinois if two of the plants closed. The report found those costs to include:

Š $1.2 billion in lost annual economic activity

Š Nearly 4,200 lost jobs

Š Decreased reliability, leading to hundreds of millions of dollars in costs to construct new transmission lines and

Š Up to 20.2 million tons of increased carbon dioxide emissions and nearly $1 billion per year in costs for consumers associated with this increase.

PJM also provided an analysis that found the state faced up to $259 million annually in higher energy costs as a result of the plant closings. With these clear challenges facing the state, the campaign focused on several targeted areas of the state – the impacted nuclear plant communities, the state capitol and key legislative districts – to educate as many influencers as possible. Later that spring, legislation known as the Low Carbon Portfolio Standard was introduced to properly value the environmental benefits of nuclear energy and achieve a level playing field for all low-carbon energy sources. The bill was introduced through a press conference in Springfield that included state legislators, municipal elected officials, labor leaders, environmentalists and representatives from Exelon. Briefings were quickly held with key media through a multicultural media event in Chicago and through meetings with editorial boards of the state’s most influential newspapers.

Tactically, the campaign focused on expanding and mobilizing a broad base of supporters. This was done primarily online through targeted digital advertising to acquire email addresses and social media followers, as well as through a Change.org petition in support of the state’s nuclear plants. By the end of the effort, the campaign had amassed

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34,061 fans on Facebook, 4,479,837 impressions on Twitter and 2,126 views on YouTube, as well as more than 25,000 individuals signed up for the campaign’s email list.

The campaign simultaneously worked to recruit key stakeholders and third-party organizations to deliver vital information to policymakers. Once educated, these influential supporters joined our efforts by writing op-eds and letters to the editor to their local newspapers, writing letters to their state lawmakers and appearing in testimonial-style videos, TV and radio advertisements.

While the Low Carbon Portfolio Standard was not passed that spring, these efforts began to demonstrate to policymakers the breadth of support and the urgency of the issue and were a critical component in the campaign’s eventual success.

In the spring of 2015, the Future Energy Plan, HB 3328/SB1879, was filed, which would help create a clean, lean, resilient energy future via a strengthened Renewable Portfolio standard, increased energy efficiency, microgrids and pricing changes to ensure the fair expansion of distributed generation.

ComEd developed a multiplatform communications plan with a strong overarching campaign message that Illinois needed smart policy for the smart grid in order to drive a clean energy future that is affordable and benefits all Illinoisans, not just some – distinguishing features of its legislative proposal.

The plan outlined a multiplatform approach to reach key stakeholders including legislators, public officials, media and customers. ComEd developed a variety of communications materials, which were rooted in the overarching messaging:

Legislative one-pagers for each component of the bill

Overarching messages about ComEd legislative platform

Talking points for ComEd legislative team

Talking points for supporters

Q&As

Press release

Editorial board visits

Social media content

Infographics

Editorial materials such as letters-to-the-editor

Content for ComEd stakeholder communications

Website graphics and content

From early 2015 through the spring of 2016, there were three separate energy bills being proposed to the Illinois General Assembly: ComEd’s Future Energy Plan, Exelon’s Low Carbon Portfolio Standard and the Clean Jobs Bill. As negotiations with the Clean Jobs Coalition neared conclusion, Exelon and ComEd moved forward to a new stage of legislative advocacy.

In the spring of 2016, the two companies announced a new comprehensive energy legislation, known as the Next Generation Energy Plan (NGEP), that addressed the critical policy needs of Exelon and ComEd while also incorporating virtually all of the proposals set forth by the environmental and renewable generation community. Key components of the NGEP included:

Š A Zero Emission Standard (ZES) to recognize the value of zero-carbon nuclear energy

Š Strengthening and expanding the state’s renewable portfolio standard

Š Jumpstarting solar development in Illinois by creating rebates to reduce up-front costs

Š Nearly doubling energy efficiency

Š Creating $1 billion in funding for low-income customers and communities and

Š Reducing the fixed customer charge for energy delivery

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In May, Exelon formally announced that it planned to close the two at-risk plants in 2017 (Clinton) and 2018 (Quad Cities) if legislation was not enacted. Exelon and ComEd began to significantly ramp up their advocacy in support of the NGEP through a robust suite of tactics that included:

Š Statewide digital, radio, television and out-of-home advertising

Š Direct lobbying of state lawmakers and the Governor

Š Social media posts on Facebook, Twitter and YouTube, including the use of hashtags such as #NGEP to unify the message

Š Advertorials on the influential political news site CapitolFax.com

Š Ongoing outbound emails to NPI’s list

Š Op-eds and letters-to-the-editor to newspapers throughout the state

Š Editorial board outreach

Š Press conferences featuring local mayors and influential labor, faith, business and environmental organizations throughout the state

Š Ongoing outreach to reporters through media statements, press briefings, press releases and direct communication

Š Employee engagement and mobilization

Š Coordination with national advocacy groups, including the Nuclear Energy Institute and Nuclear Matters

Š A comprehensive grassroots organizing campaign including:

> Thousands of emails and mailed letters to elected leaders urging passage of the legislation

> Phone calls into key legislative districts to recruit supporters and generate calls to lawmakers

> Rallies in the Springfield capitol building, attended by nearly 1,000 individuals, as well as the delivery of petition signatures to legislative leaders and the Governor

Despite this surround-sound advocacy effort, the legislation only received a vote in committee and never made it to a full vote by the Illinois Senate or the Illinois House. Immediately following the close of the spring 2016 legislative session, Exelon

announced the closure of the Clinton and Quad Cities facilities in 2017 and 2018 respectively given the lack of progress on Illinois energy legislation.

In the fall veto session of 2016, however, Exelon’s and ComEd’s lobbying teams worked tirelessly to find common ground among three distinct pieces of legislation. Negotiating closely with a group of environmental and consumer advocates called the Clean Jobs Coalition (CJC), who had previously been lobbying for their own legislation, they created a single comprehensive energy package.

This legislation, known as the Future Energy Jobs Bill (FEJB), merged the key components of the NGEP with several measures advanced by the CJC, offering legislators a single set of policies to move Illinois’ energy future forward.

The FEJB:

Š Substantially expands energy efficiency programs

Š Commits $750 million of funding for low-income programs

Š Protects 4,200 jobs and preserves $1.2 billion in economic activity, annually

Š Strengthens and expands the Renewable Portfolio Standard to ensure predictable funding for renewable development

Š Provides job training and create thousands of clean energy jobs

Š Preserves competitive rates by keeping two of Illinois’ at-risk nuclear power plants in operation

The campaign deployed a new website, FutureEnergyJobsBill.com, to inform policymakers and the public about the benefits of the bill, as well as to generate legislative contacts. Ultimately, the campaign drove 15,196 emails to legislators through site’s “write your legislator” tool and an additional 13,172 emails through the NuclearPowersIllinois.com site.

In addition, the campaign continued to recruit influential third-party supporters and mobilize them to contact legislators. The final version of the legislation was backed by over 200 business, labor, environmental, minority, consumer, faith-based and other community groups, driven by the aggressive efforts and close coordination of Exelon, ComEd and the CJC.

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THE OUTCOMEAs a result of these efforts, the FEJB passed with strong bipartisan support on the last day of the fall veto session despite an ongoing political stalemate on budget negotiations. The bill was then signed into law by Governor Bruce Rauner in December 2016 at two separate signing ceremonies in the nuclear plant communities, giving Illinois its most comprehensive energy solution in over a decade. Shortly after, Exelon announced it will hire 400 new employees to prepare the nuclear plants for long-term operations.

The new law is a win for consumers, advocates, renewable energy companies and the entire state because it pivots the state to the new clean energy economy. Further, it will create new energy jobs while preserving the thousands that already exist, all while maintaining competitive rates for families and businesses throughout the state.

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APPENDIXDIGITAL OUTREACHThe campaign created several different digital properties to promote the Future Energy Jobs Bill, educate key audiences, mobilize and activate supporters. The FutureEnergyJobsBill.com site served as the vehicle that focused on the specifics of the legislation while NuclearPowersIllinois.com served as the online clearinghouse related to all things nuclear energy. These tools allowed the campaign to promote social media, direct emails and share content to keep supporters up to date and engaged.

The effort recruited over 34,000 fans on Facebook, generated nearly 4.5 million impressions on Twitter and delivered more than 2,100 views on YouTube. The campaign also engaged third-party voices to amplify our messaging to key stakeholders and expand their reach.

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NEWSPAPER ARTICLES / EDITORIALSThe campaign was aggressive in engaging local, statehouse and national media to highlight the benefits of the legislation and the underlying policy issues. This was done through events and press conferences, editorial board meetings, letters to the editor and op-eds. These efforts resulted in over 100 positive news stories, including some of the highlighted coverage below.

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ADVERTISINGThe campaign included a comprehensive strategy, including TV, radio, print, digital and out-of-home advertising. These efforts resulted in more than 200 million estimated impressions.

PRINT AD:

PAID FOR BY EXELON SHAREHOLDERS

Passage of the Future Energy Jobs Bill is urgently needed during the fall veto session to prevent the premature closure of Clinton and Quad Cities, two of Illinois’ safe and well-run nuclear plants.

Our companies do business with Illinois’ nuclear plants – their closure will impact our companies and devastate

communities around the state.

A MESSAGE TO ILLINOIS LAWMAKERS

Businesses across the state are on the line.

Support the Future Energy Jobs Bill! Vote Yes on SB 2814.

We, the undersigned vendors to Illinois nuclear plants, strongly support the Future Energy Jobs Bill.

We urge Illinois lawmakers to pass it NOW! When Clinton and Quad Cities close, thousands of

jobs will be gone for good.

Learn more: www.FutureEnergyJobsBill.com

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ENERGY INSIGHTS Advertising Section

Fidel Marquez

Illinois stands at an energy crossroads: we can grow our state’s new energy economy, or we can fall behind because our policies fail to keep up with the times.

Fortunately, consumer advocates, environmental groups, labor unions and energy providers have worked together to consider the future of energy in Illinois. The Future Energy Jobs Bill grew out of more than a year of discussions between these groups and is a comprehensive energy policy that will benefit consumers, the economy and the environment in our state.

The Future Energy Jobs Bill takes important steps toward the clean energy future consumers want. It accelerates solar and wind energy in Illinois, providing up to $240 million annually for the development of renewable energy. It also nearly doubles energy efficiency programs to produce more than $4 billion in energy savings and eliminates the CO2 equivalent of removing 18 million cars from the road.

As its name suggests, the bill will also strengthen the Illinois economy. It will protect thousands of jobs and more than $1 billion in economic activity at existing energy plants in Illinois, while creating tens of thousands of clean energy jobs. Critically, it will keep energy rates competitive, while also ensuring that our most vulnerable residents can benefit from the new energy economy by committing $1 billion of funding for low-income programs.Learn more at www.futureenergyjobsbill.com.

THE FUTURE OF ENERGY: GROWING ILLINOIS’ CLEAN ENERGY ECONOMY

Senior Vice President, Legislative and External Affairs and Chief Governmental and Community Relations Officer

PAID FOR BY EXELON SHAREHOLDERS

I’m Gordon Harris. I work as the Site Performance Assessment Manager at

the Quad Cities Generation Station. Along with the Clinton Power Station, the

plant in the Quad Cities supports thousands of quality Illinois jobs like mine,

generates millions in economic activity, and creates opportunities for people and

communities throughout the state. Everything from the schools, police stations,

local libraries, and civic groups in my community are supported by these plants

and rely on their continued operation.

Increased electric rates & carbon emissions

The loss of the plants’ 4,200 jobs

$1.2 billion in lost annual economic activity

Comprehensive energy legislation is urgently needed during this fall veto session to prevent the premature closure of these two nuclear plants. The plants’ closures will result in:

They Power Careers and Communities, Too.

Illinois’ Nuclear Plants Power More Than Homes and Businesses.

Without action in the fall veto session, the decision to close these

plants will be irreversible.

Learn more: www.FutureEnergyJobsBill.com

SPRINGFIELD: THE TIME IS NOW.

WE NEED THE FUTURE ENERGY JOBS BILL.

VOTE YES ON SB 2814.

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TV AD:

RADIO ADS:

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FACT SHEETSIn order to educate influencers around the specifics of the legislation, the campaign created dozens of issue-specific fact sheets and infographics that communicated its key benefits.

E NSU R E T H E F U T U R E OF N UC L E A R E N E RGY I N I L L I NOI S .1 On Jan. 7, 2015, the Illinois Commerce Commission (ICC), the Illinois Power Agency (IPA), the Illinois Environmental Protection Agency (IEPA), and the Illinois Department of Commerce

and Economic Opportunity (DCEO) released a consolidated report dated Jan. 5, “Potential Nuclear Power Plant Closings in Illinois: Impacts and Market-Based Solutions,” in response to

HR 1146 in the Illinois General Assembly.

SOLUTIONSThe Report suggests a number of proactive market-based solutions that the Illinois General Assembly could consider to enable Illinois’ nuclear plants’ continued operation and to preserve the economic, environmental and reliability benefits they provide to the state.

MAJOR JOB & ECONOMIC LOSSESThe report found that the gross impact of two plants closing would be:

• $1.2 billion annually in lost economic activity in Illinois

• 4,200 jobs lost, many of which are highly skilled, good paying jobs

HIGHER ELECTRIC R ATESThe report found that maintaining low and stable prices depends on the continued operation of all nuclear

generating stations. According to independent analyses by two of the country’s regional grid operators that

cover Illinois, PJM and MISO, there would be a significant increase in electricity prices for Illinois residents

and businesses.

DECREASED RELIABILITYThe regional transmission grid operator, who came very close to experiencing rolling blackouts during

2014’s polar vortex, found that:

• The system would be “unreliable” under all premature plant closure scenarios

• Costs to construct transmission lines to address reliability issues would be significant — in the

hundreds of millions of dollars or more — and paid for by consumers in the form of higher rates

MASSIVE ENVIRONMENTAL COSTSEconomic damages associated with an incremental increase in the release of carbon dioxide

emissions would cost Illinois consumers nearly $10 billion over 10 years

Illinois House Resolution 1146 R E P O R T 1 S U M M A R Y

“Illinois’ continued economic success depends on maintaining low and stable electricity prices — and those low and stable prices depend on the

continued operation of all nuclear generating stations located in Illinois.”— Page 125, Potential Nuclear Power Plant Closings in Illinois: Impacts and Market-Based Solutions

The Future Energy Jobs Bill (FEJB) is a comprehensive bill that achieves a solution to present and future energy challenges, by:

The Future Energy Jobs Bill will:

Nearly a two-year collaboration between key Illinois stakeholders, many

with divergent interests

Intensive and challenging process resulting in substantial restructuring and streamlining of original

elements, at a cost substantially less than 25 cents per month

to ComEd residential customers and adding important consumer

protection

Important energy and economic policy for the

state of Illinois’ that delivers substantial consumer benefits

Substantially expand energy efficiency programs to drive customer savings and also expand options for commercial, indiustrial and low-income customers.

Commit $750 million of funding for low-income programs.

Protect 4,200 jobs and preserve $1.2 billion in economic activity annually.

Strengthen and expand the Renewable Portfolio Standard to ensure stable, predictable funding for renewable development, providing $180M per year – growing to $220M per year- in funding for renewable resources, including new wind power, large-scale solar power, and roo�op and community solar.

Position Illinois as a leader in zero-carbon electricity.

Provide job training and create thousands of clean energy jobs in energy efficiency, energy innovation and renewable power industries.

Preserve competitive rates, given nuclear plant closures would add up to $1.85 each month to the average ComEd residential bill.

www.futureenergyjobsbill.com

SOURCES: Nuclear Energy Institute (NEI), “The Impact of Exelon’s Nuclear Fleet on the Illinois Economy,” 2014ICC, IPA IEPA, IDCEO: “Potential Nuclear Power Plant Closings in Illinois: Impacts and Market-Based Solutions,” January 7, 2015

UP TO $1.2B LOST IN ECONOMIC ACTIVITY

4,200 JOBS LOST

UP TO $259M ANNUALLY IN HIGHER

ENERGY COSTS, ACCORDING

TO PJM ANALYSIS

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Illinois Nuclear Facilities: Providing Jobs & Economic Benefits for Our State

MEMBERS OF THE ILLINOIS GENERAL ASSEMBLY: ENSURE THE FUTURE OF NUCLEAR ENERGY IN ILLINOIS.

NUCLEARPOWERSILLINOIS.COM

NEARLY $9B 28K JOBSinjected into the Illinois economy annually

provided directly and indirectly

= 1K JOBS

$290Mcontributed to state and local taxes, funding schools, community services and state agencies

generated indirectly in employee income across other industries

$1.4B

Nuclear Powers IllinoisRELIABLE ENERGY, JOBS, AND CLEAN AIR FOR ILLINOIS

Half of Illinois’ energy comes from our state’s reliable nuclear power plants, but some of these plants are at risk of closing. What will it cost Illinois if two of its nuclear plants close? ACCORDING TO A STATE OF ILLINOIS REPORT*

SB2814: The Zero Emission Standard

Save 4,200 jobs. Prevent large increases in electric rates.

Make Illinois a trailblazer in zero-carbon electricity.

Avoid $10 billion over 10 years in economic

damages associated with a dramatic increase in

carbon emissions.

Preserve over $1.2 billion in economic activity annually.

Avoid devastating several Illinois communities and the lives of thousands of

hardworking families.

As part of the Future Energy Jobs Bill, the Zero Emission Standard (ZES) makes Illinois a trailblazer in low-carbon

energy, making Illinois one of the first states to fully recognize the zero-carbon benefits of nuclear energy.

The Future Energy Jobs Bill must be passed now. Without action, two of Illinois’ zero-carbon-emi�ing

nuclear plants will close.

By keeping the state’s at-risk, zero-carbon nuclear facilities operating, ZES would:

www.futureenergyjobsbill.com

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GRASSROOTSThe campaign organized an aggressive grassroots mobilization effort to deliver communications from employees, community activists and third-party supporters to legislators and other key policymakers. This effort included in-person meetings, phone calls and letters of support of the Future Energy Jobs Bill and generated over 220,000 personal contacts throughout the campaign, including 43,000 in the month leading up to the passage of the bill.

Dear Supporter, Yesterday, 1,500 Illinoisans came to Springfield to support the Next Generation Energy Plan (NGEP) and our lawmakers heard us loud and clear! Lawmakers, labor leaders, community leaders, and supporters all shared their unique perspectives about why passing the NGEP is crucial to driving our state’s clean energy future forward. We would like to thank those of you who attended yesterday’s rally. Because of you, Illinois policymakers understand that the entire state is concerned about preserving our at-risk nuclear plants by passing the NGEP by May 31st. Below are some photos of the day.

Click here for an album of all of our photos from the event. As you know, passing this legislation by May 31st is needed to preserve jobs, avoid lost economic activity, and reduce carbon emissions in our state. If you haven’t already done so, we also encourage you to email members of the Senate Energy and Public Utilities Committee by using our easy-to-use legislator contact tool. We also encourage you to join the discussion and share your perspective on social media by using #NGEP and posting your photos from the event. Thank you for showing your support!