SUBSCRIBE to Capitol Fax      Advertise Here      Mobile Version     Exclusive Subscriber Content     Updated Posts    Contact
CapitolFax.com
To subscribe to Capitol Fax, click here.
Today’s must-read: Exelon’s free-fall

Monday, Jun 23, 2014

* Exelon’s stock price has plummeted 60 percent since its 2008 peak. Last year, the company cut its dividend by 41 percent. Crain’s has a very good story about what has happened to the former titan. It basically boils down to a toxic combination of a quickly changing industry model, natural gas prices and its unregulated price market

As its nuclear plants increasingly look like an albatross rather than a boon, Exelon is at a crossroads. The future of power generation and distribution is uncertain, but demand for electricity is slack and likely to remain so because of improvements in energy efficiency. Many predict that the industry gradually will move away from behemoth central power stations like Exelon’s nukes. Instead, it would feature smaller plants that can cycle on and off with fluctuations in demand coupled with on-site power sources in homes and businesses such as solar panels or even small-scale natural gas generators.

Mr. Rowe’s successor, CEO Christopher Crane, faces a series of difficult options, none of them obvious winners. Exelon could try to buy more regulated businesses, hedging risks in the power markets with predictable returns. It could attempt to catch up to rivals that have aggressively pursued renewable energy, although it’s late to the party and would have to pay top dollar. Or it could split into two companies: a regulated, supersized electric utility and an unregulated power generator.

The decisions Mr. Crane and his board make in the next several years could determine whether Exelon remains one of the country’s leading forces in the power business or cedes that position to companies that have moved in different directions.
“What does (Exelon) want to be when it grows up?” says Julien Dumoulin-Smith, an analyst at UBS Securities LLC in New York.

The company’s fate matters greatly to Chicago. The parent of Commonwealth Edison Co., Exelon has 26,000 employees, 12,500 of whom work in Illinois, including 6,700 in the Chicago area.

Go read the whole thing. Interesting stuff. And why should you read it? Exelon is a hugely powerful company and it’s not afraid to pull levers and strings when it needs something. I get the feeling it needs something.

- Posted by Rich Miller        


13 Comments
  1. - Abe the Babe - Monday, Jun 23, 14 @ 10:54 am:

    “We love free markets*!!” — Exelon

    *except when we don’t


  2. - Plutocrat03 - Monday, Jun 23, 14 @ 11:02 am:

    So when the EPA puts their thumb on the scale to reduce output from coal fired electrical generation, I wonder who is to benefit?


  3. - Anonymous - Monday, Jun 23, 14 @ 11:03 am:

    Exelon is setting up to be the hero with the new emissions standards. If the state can guarantee a market for their base load generation we won’t have to subject ratepayers to costly upgrades to our coal plants.


  4. - A guy... - Monday, Jun 23, 14 @ 11:42 am:

    If anyone has invested well enough in positive outcomes, it’s Exelon. Lube up those levers and resin up those strings, the music is about to start.


  5. - foster brooks - Monday, Jun 23, 14 @ 11:50 am:

    I see some rate increase legislation in the pipeline.


  6. - Chicago Cynic - Monday, Jun 23, 14 @ 12:02 pm:

    Exelon made a series of bad decisions, as John Rowe admits in this article. Now they want a bailout. simple corporate welfare.


  7. - wordslinger - Monday, Jun 23, 14 @ 12:07 pm:

    –So when the EPA puts their thumb on the scale to reduce output from coal fired electrical generation, I wonder who is to benefit?–

    Breathers?


  8. - Cook County Commoner - Monday, Jun 23, 14 @ 1:32 pm:

    Another issue lurking out there with nuke plants is decommissioning costs. With around a forty year life span, many of these plants will be ready to shut down within a decade. What do you do with all that radioactive material and machinery?


  9. - Dirty Red - Monday, Jun 23, 14 @ 2:01 pm:

    I see the nuclear plant in Clinton is hiring a communications specialist. I imagine that job will be quite eventful for its future occupant.


  10. - Chicago Cynic - Monday, Jun 23, 14 @ 2:20 pm:

    “In hindsight, I should have sold a piece of our nuclear when times were good and taken more risk on (transmission and distribution) assets, but I did not.

    John Rowe, retired CEO, Exelon Corp.”


  11. - Senator Clay Davis - Monday, Jun 23, 14 @ 2:28 pm:

    Chicago Cynic is right. Faced with a decade of bad business decisions, Exelon now sees EPA climate change regs as the savior (bailout vehicle) for their woes.

    Exelon’s plants are unprofitable because they own too much generation in the part of Northern Illinois that is on the PJM electric grid, which stretches to the east coast, but is separated by transmission bottlenecks that prevent exports. The long-term solution is to build high-voltage transmission lines, but that would take several years and cost hundreds of millions.

    Or they can just “invest” $1-2 million in lobbying costs, manipulate the levers of Illinois government and overcharge ratepayers for power from nuclear plants that we already paid for twice.


  12. - Amalia - Monday, Jun 23, 14 @ 4:02 pm:

    wonder what happened to all those public sector employees at a high level who migrated over to Exelon. are they still around?


  13. - Chicago Cynic - Monday, Jun 23, 14 @ 5:54 pm:

    Amalia, you mean the legislators like Marlow Colvin? Yup - still there. And Clay Davis - AMEN!


Sorry, comments for this post are now closed.


* State receipts down $5 billion, unpaid health insurance claims top $3 billion
* Lawsuit filed by unpaid social service providers
* Games people play
* Lucas threatens to walk
* Whistling past the graveyard
* Group warns another power generator has hands out in GA
* Graduated tax hike blasted
* Today's quotable
* *** LIVE *** Session Coverage
* SUBSCRIBERS ONLY - Supplement to today’s edition
* SUBSCRIBERS ONLY - Today's edition of Capitol Fax (use all CAPS in password)
* Yesterday's blog posts

Support CapitolFax.com
Visit our advertisers...

...............

...............

...............

...............

...............

...............


Search This Blog...

Search the 98th General Assembly By Bill Number
(example: HB0001)

Search the 98th General Assembly By Keyword

  
* Unlocked dual SIM LG G5 is on sale at $575 with top-rated eBay seller
* New HTC 10 commercial highlights the greatness of the front-facing camera
* YouTube app gets ‘Up Next’ autoplay feature
* LiveNinja secures a further $2M to combine live web chat and messaging
* T-Mobile rebrands ‘evil’ rival AT&T as The DeATTh Star for this year’s May the Fourth
* India puts a stop to Apple’s efforts of bringing used iPhones into the budget-friendly market
* T-Mobile rebels against the DeATTh Star with new Chrome extension

* Quintana quiets Red Sox as Abreu stays hot
* Abreu's bat sizzling after early fizzle
* Rodon moves up as series continues with Red Sox
* Quintana quiets Red Sox as Abreu sets pace
* Quintana quiets Red Sox as Abreu stays hot
* Quintana quiets Red Sox as Abreu sets pace
* Quintana quiets Red Sox as Abreu sets pace

...............


Main Menu
Home
Illinois
YouTube
Pundit rankings
Obama
Subscriber Content
Durbin
Burris
Blagojevich Trial
Advertising
Updated Posts
Polls

Archives
May 2016
April 2016
March 2016
February 2016
January 2016
December 2015
November 2015
October 2015
September 2015
August 2015
July 2015
June 2015
May 2015
April 2015
March 2015
February 2015
January 2015
December 2014
November 2014
October 2014
September 2014
August 2014
July 2014
June 2014
May 2014
April 2014
March 2014
February 2014
January 2014
December 2013
November 2013
October 2013
September 2013
August 2013
July 2013
June 2013
May 2013
April 2013
March 2013
February 2013
January 2013
December 2012
November 2012
October 2012
September 2012
August 2012
July 2012
June 2012
May 2012
April 2012
March 2012
February 2012
January 2012
December 2011
November 2011
October 2011
September 2011
August 2011
July 2011
June 2011
May 2011
April 2011
March 2011
February 2011
January 2011
December 2010
November 2010
October 2010
September 2010
August 2010
July 2010
June 2010
May 2010
April 2010
March 2010
February 2010
January 2010
December 2009
November 2009
October 2009
September 2009
August 2009
July 2009
June 2009
May 2009
April 2009
March 2009
February 2009
January 2009
December 2008
November 2008
October 2008
September 2008
August 2008
July 2008
June 2008
May 2008
April 2008
March 2008
February 2008
January 2008
December 2007
November 2007
October 2007
September 2007
August 2007
July 2007
June 2007
May 2007
April 2007
March 2007
February 2007
January 2007
December 2006
November 2006
October 2006
September 2006
August 2006
July 2006
June 2006
May 2006
April 2006
March 2006
February 2006
January 2006
December 2005
April 2005
March 2005
February 2005
January 2005
December 2004
November 2004
October 2004

Blog*Spot Archives
November 2005
October 2005
September 2005
August 2005
July 2005
June 2005
May 2005

Syndication

RSS Feed 2.0
Comments RSS 2.0
WordPress

Loading


* Gov. Rauner and state agencies sued for breach .....
* Gov. Rauner and State Agencies Sued for Breach .....
* Gov. Rauner and State Agencies Sued for Breach .....
* Area legislators working to keep local facility.....
* Voters Could See Two Redistricting Reform Choic.....
* Voters Could See Two Redistricting Reform Choic.....
* Illinois Commission Fails To Approve Closure Of.....
* MELLODY HOBSON vs. Friends of the Parks — DOROT.....
* Advocacy group says Illinois fantasy sports bil.....
* Horsemen Want In On Gaming Covernsation – Alton.....


* EXCHANGE: Veteran's lost dog tag returned 45 years later
* Illinois youth home worker pleads not guilty in teen's death
* Urbana officers hope crime lab can help solve 1988 cold case
* EXCHANGE: The legend of Bloody Gulch Road lives on
* Advocacy group says Illinois fantasy sports bill needs work
* U of Illinois students now must take minority culture class
* Roadwork for high-speed rail starts this month in Normal
* Chicago social club reports breach of guests' personal data
* Belleville votes to dissolve overlapping township
* Dynegy to shut down 3 generating plants in southern Illinois

* Advocacy group says Illinois fantasy sports bill needs work
* Legislative remap amendment proposal receives approval in Illinois House
* Caterpillar moving mining division offices to Arizona
* Legislative panel votes against plan to close Kewanee youth detention center
* Graduated income tax proposal delayed in House, expected to come up Wednesday
* Price, demand driving Illinois' hog farm expansion
* Medicaid policy may deny access to HIV medication
* Rauner: Graduated tax would be bad for the state
* Suit: Illinois law restricting child sex offenders too vague
* Medical marijuana panel meets to evaluate 15 new conditions

* 'The King and I,' Improv Fest, a new Second City show
* Amtrak allows bikes on trains between Milwaukee and Chicago
* Takata set to recall at least 35 million more air bag inflators
* Advocacy group says Illinois same-day fantasy sports bill lacking
* Why the big rail work on 75th Street will have to wait


* Police warn of Northwest Side burglaries
* Hulu will offer live-streaming service in 2017
* It’s Star Wars Day: May the 4th be with you
* AP: John Kasich to end White House bid
* GM Hahn ‘extremely impressed’ by White Sox performance
* Obama guidance, press schedule May 4, 2016. Flint, Michigan
* Hillary, Donald and the gender wars
* Univ. of Iowa student from Naperville says attackers used slurs
* Police: Suspect in Elgin robbery found floating in Fox River
* The Nationals should be a challenge for the Cubs — should be


* Obama visiting Flint for first time since water crisis began
* Report: Prince tried to meet with doctor before death
* Iraqi demagogue leads the fight for Iraqi democracy
* Ohio Gov. John Kasich dropping out of presidential race: AP sources
* Fired employee kills co-worker, self at Texas company
* 80,000 evacuated as Canada wildfire consumes whole neighborhoods
* How to get 'Hamilton' tickets in Chicago
* Police: Assault of Naperville student at University of Iowa is possible hate crime
* Weak US hiring report sends stocks lower on Wall Street
* Oh, 'Bad Moms' movie, please be funny


* Advocacy group says Illinois fantasy sports bill needs work
* Legislative remap amendment proposal receives approval in Illinois House
* Our View: Bring some transparency to SHS coaching search
* Catherine Rampell: Hillary Clinton is a fiscal conservative — look it up
* E.J. Dionne Jr.: The irony of celebrity populism
* Michael Gerson: The state of disunion
* Pete Giangreco: Illinois should move ahead on automatic voter registration
* Caterpillar moving mining division offices to Arizona
* Legislative panel votes against plan to close Kewanee youth detention center
* Graduated income tax proposal delayed in House, expected to come up Wednesday


* UPDATED: Kasich dropping out, AP sources say; Trump on clear GOP path
* Man exonerated of 1999 murder sues Lake County, Waukegan
* Roadwork for high-speed rail starts this month in Normal
* Diamond the size of a tennis ball could fetch $70 million
* Sept. 11 families seek answers in secret pages
* Trump shifts to new campaign phase, dismisses GOP critics
* Navy SEAL killed in Iraq was close to disgraced grandfather
* Accident closes Illinois 1 south of Paris
* Minnesota college system bars team travel to North Carolina
* Is Black back with Illini?


* Weekend picks: Saddle up for Opening Day at Arlington Park
* Have a mint julep in honor of Derby Day
* Make Mother's Day memorable with food, glorious food
* Streamwood police release video of armed robbery suspect
* Report: Naperville teen the victim of a hate crime

* House lawmakers overcome hurdle on key tra...
* Rodney Davis talks funding with Bloomingto...
* The agency that fought Illiana gets a new ...
* Rep. Dold takes educational cruise down Ch...
* Lawmakers decry high turnover rate of VA h...
* CBD Oil, and politics
* Simon considering state Senate bid
* Killer Congressman Tom MacArthur trying to...
* Shutdown? State may not notice
* Rep. Bob Dold

* Durbin gets update on Jackson Center activ......
* Durbin fields questions about the NGA deci......
* Durbin: County, state have 'strong case' i......
* Sen. Dick Durbin speaks with students in s......

* Relocating NGA to North St. Louis is a big......
* Whistling past the graveyard - The Capitol......
* Rep. Lang Calls On Sen. Kirk To Act - FOX ......

* Disbarred Illinois lawyer gets four years in federal prison for mortgage scheme
* Hastert's annual $28,000 state pension to continue despite prison sentence
* Manufacturing group protests effort to remove one of Illinois' few economic advantages
* Kasich plans 5 PM announcement today
* Thorner: Heartland Institute Panel: Vaping as a Public Policy 'War' - Part 2
* Trumps and Sanders win Indiana; Cruz suspends campaign
* Governor proclaims May 5th a day of prayer in Illinois
* Starkehaus: The Long Journey to #NeverTrump
* May Day in Brooklyn.
* Teachers (Pat Conroy).


* Emergency Management Officials, National Weather Service Encourage Winter Preparedness - November is Winter Weather Preparedness Month in Illinois
* Keep Your Family Safe This Winter - November through February are leading months for carbon monoxide related incidents
* Governor Takes Bill Action
* Illinois Department of Labor Director Hugo Chaviano Awards Governor’s Award for Contributions in Health and Safety to the Illinois Refining Division of Marathon Petroleum Company LP
* State Regulator Elected Treasurer of Interstate Medical Licensure Compact




Hosted by MCS -- CapitolFax.com Privacy Policy -- SUBSCRIBE to Capitol Fax -- Advertise Here -- Mobile Version -- Contact Rich Miller