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* It’s like watching a horrible ping-pong match between Exelon and itself…
Groundhog Day was yesterday, but Exelon appears to want to keep celebrating. The Chicago-based nuclear giant is back to threatening to close nuclear plants in Illinois without financial help from the state.
Three months after appearing to soften on demands for hundreds of millions in ratepayer-financed subsidies, Exelon CEO Chris Crane said today that the company needs financial help this spring from Springfield.
If that doesn’t happen, he said on the company’s fourth-quarter earnings call, “we’ll have to make the rational economic decision” on money-losing plants.
At risk of closure, he said, are two of its six Illinois nukes: the Quad Cities station in western Illinois and the Clinton plant downstate.
It was only in November that Crane said Quad Cities had gone from a money loser to break-even as the company looked forward to 2017. That is no longer the case as future wholesale power prices have dropped since then. […]
The renewed threats come as Exelon posted its first year-over-year earnings increase in years for 2015. The company gave investors the welcome news that it plans to raise its dividend 2.5 percent a year for the next three years.
Also, too…
Analysts at Jefferies expect shares of Exelon to rise 24% over the next 12 months.
posted by Rich Miller
Wednesday, Feb 3, 16 @ 3:41 pm
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=”Analysts at Jefferies expect shares of Exelon to rise 24% over the next 12 months.”=
Wow! It looks like I need to invest in Exelon.
Comment by Mama Wednesday, Feb 3, 16 @ 3:47 pm
If Exelon shares are expected to rise 24% over the next 12 months, why do they need a bail out from the state??
Comment by Mama Wednesday, Feb 3, 16 @ 3:49 pm
What the….?
Thought this was all resolved and over. What ARE these people thinking? Oh, yeah, probably 1`%’ers at the wheel.
Comment by sal-says Wednesday, Feb 3, 16 @ 3:52 pm
They’re also intervening in an Ohio utility commission case to oppose state assistance to some of those big generators like First Energy. That proposal is basically like re-regulating the plants for a few years. Of course, the Exelon proposal in IL is different in name only. The end result is the same.
Privatize the profits and socialize the risk. They have no shame.
Comment by Abe the Babe Wednesday, Feb 3, 16 @ 3:53 pm
Perhaps for just this one year Exelon could put their lobbying muscle behind victims of domestic violence, higher education, etc.
Comment by Earnest Wednesday, Feb 3, 16 @ 3:57 pm
Not sure why my original post didn’t go through, but you can’t just focus on Illinois when looking at Exelon issues. Their involvement in the PEPCO merger has led to a lot of long-term borrowing to try and push that through. In Ohio, they are going after FirstEnergy (a rival) to try and get into that power market. And, others than Jefferies do not paint such a rosy picture for future earnings: http://www.zacks.com/stock/news/206079/exelon-q4-earnings-amp-revenues-miss-estimates-down-yy
http://www.fool.com/investing/general/2016/02/01/will-exelon-raise-its-dividend-in-2016.aspx
Exelon is using Illinois, as it did in New York state with Ginna, to try and leverage dollars for its entire operations. So, if they want to make money, fine, but Illinios taxpayers shouldn’t have to become the “bank” for them.
Comment by Anon221 Wednesday, Feb 3, 16 @ 3:59 pm
I hope this is remembered when the annual “Exelon needs a rate increase!” bill is dropped in the Senate.
Comment by Team Sleep Wednesday, Feb 3, 16 @ 4:05 pm
I just keep hearing my mom:
“I mean it this time!”
Comment by Demoralized Wednesday, Feb 3, 16 @ 4:08 pm
Rauner’s tactic of taking and holding hostages seems to be spreading.
Comment by IllinoisBoi Wednesday, Feb 3, 16 @ 4:09 pm
Exelon, and its corporate subsidiary ComEd, have a long history of trying to have it all. And because of their campaign contributions to legislators, they usually get what they want. Back when it thought market based rates would be a goldmine, Exelon lobbied long and hard for deregulation. Now that its expensive nukes can’t compete with cheaper alternatives, it wants a subsidy even though its earnings are up and its paying dividends to shareholders. The best word to describe this is “greed.” Sadly, “our” elected representatives will probably ignore constituent interests and focus on the money in their campaign coffers.
Comment by Nobody Sent Wednesday, Feb 3, 16 @ 4:23 pm
Oh, and don’t forget that Exelon announced today that their 2015 earnings went up 7.7% to $2.27 BILLION. They’re also sitting on $6.5 BILLION in cash.
Cue the Exelon trolls in 3…2…1…
Comment by BEST Dave Wednesday, Feb 3, 16 @ 4:26 pm
Dave - in this instance, though, the trolls are in the legislature.
Comment by Team Sleep Wednesday, Feb 3, 16 @ 4:27 pm
Dear Excelon:
Sorry to hear you need money. While the Governor is committed to creating a more business friendly environment, our new Darwinian model of Illinois does not give money to organizations that aren’t profitable, we only give economic incentives to profitable businesses. We can however recommend a good bankruptcy Attorney. Sincerest Alohas, the Rauner Administration /s
Comment by burbanite Wednesday, Feb 3, 16 @ 4:28 pm
At least when social service providers threaten to cut services or close entirely, they have the decency to follow through on their threats.
Comment by SAP Wednesday, Feb 3, 16 @ 4:42 pm
Can someone tell me how much illinois state pension funds have invested with this company?
Comment by Blue dog dem Wednesday, Feb 3, 16 @ 5:14 pm
Obligatory:
WWW.exelonpatch.com
Comment by Ok Wednesday, Feb 3, 16 @ 5:19 pm
Hey, I thought we needed to be more business friendly. Go ahead Exelon, pass your “poor us bill” and then just back your truck right up to the Comptroller’s and get all you can…
Taxpayers love helping shareholders get better returns and helping executives get compensated with million dollar multiples.
Macroeconomics at its finest. /s
Comment by cdog Wednesday, Feb 3, 16 @ 5:56 pm
Blue dog, use the Google, big fella.
Comment by Arthur Andersen Wednesday, Feb 3, 16 @ 6:58 pm
Quarterly earnings came in on Wednesday at .33 cents a share .06 cents less then analysts estimate of .39. The stock price is down in the last 12 months although including a rebound since the beginning of the year.
YTD % Change 13.83
1 Yr % Change -14.41
I don’t know all that much about the company but it’s in the middle of it’s one year trading range, pays a decent dividend, and appears to be somewhat stable. In a choppy market you could do a lot worse..
Comment by Mouthy Thursday, Feb 4, 16 @ 8:18 am
More from the Q4 earnings call:
https://www.rtoinsider.com/exelon-pepco-q4-earnings-21817/
Comment by Anon221 Thursday, Feb 4, 16 @ 8:29 am
I never, ever recv an answer to this question when I pose it on other sites. Maybe some smart person can enlighten me. I’m following this ping-pong match and honest - inquiring minds need to know - other than losing jobs, will me lights go out if we close the plants? I’m sure the rates go up regardless.
Comment by The Doctor's Blue Box Thursday, Feb 4, 16 @ 12:54 pm
I see the coal generator lobby has made his quarterly appearance, so take that for what it’s worth.
Comment by TheJudge Thursday, Feb 4, 16 @ 2:19 pm
Doctor’s Blue Box. No, your lights will not go off. If there are reliability concerns, plants will receive must run contracts.
And Mouthy, you’re mixing up GAAP and non-GAAP numbers. Expectations were for $.39/share. They came in at $.38/share. Further, earnings were up 7.7% for the full year. Oh, and since announcing the dividend increase and these results, their stick price has gone up about $3.
Comment by BEST Dave Thursday, Feb 4, 16 @ 2:32 pm
Your power won’t go out but your bill will go up!
Comment by Hot to Trot Thursday, Feb 4, 16 @ 3:55 pm
Best Dave-
So does that make you a coal industry troll? After all, that is who BEST COALalition is right?
Comment by Anonymous Tuesday, Feb 16, 16 @ 3:03 pm