PECO is now fueling its utility trucks with biodiesel, a blend made from 20% soy oil and 80% normal diesel fuel from Sunoco. With the new blend,the company achieves a 16% reduction in greenhouse gas emissions.
Exelon begins to cut down power generation at a Pennsylvania nuclear plant that is scheduled for shutdown.
In January of 2007 electricity rates were allowed to adjust to market after a years long rate freeze. Illinois legislators responding to pressure from their constituents have ordered utility companies Ameren and Exelon to pay $1B in refunds. Exelon will pay $800B of this amount.
Exelon saw its stock price sink as the company agreed to pay out $1 billion in refunds and discounts to customers hit by higher electricity prices in Illinois. Utility rates in the state skyrocketd after they became unregulated as of Jan 1 after a 10-year rate freeze enacted in 1997. Consumers called for rate freezes as many saw utility bills increase dramatically.
KKR announces a $32B acquisition of TXU, raising speculation that other utilities like Exelon may be the target of a leveraged buyout.
Increasing inflation concerns have a strong negative impact on Exelon's stock. Utilities are particularly sensitive to inflation because their regulated businesses cannot easily raise rates, and when costs rise due to inflation their margins are impacted.
Deregulation and a move to market prices in ComEd's Utility business in Illinois is conditioned upon special concessions including $200M in credits to ComEd's retail customers. This concession may negatively impact earnings in coming quarters.
Edit Metric
