Constellation Energy takeover not working out as planned for Exelon via Crain’s Chicago Business

Exelon Corp.’s main reason for spending billions to acquire Constellation Energy Group Inc. earlier this year was to get big in the business of selling electricity to companies and households, a growing market.
But in just four months, Exelon significantly has scaled back its robust growth outlook for its new retail marketing business. CEO Chris Crane told analysts on Nov. 1 that fierce competition for customers has led to profit margins he believes are too thin.
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And in perhaps the most dramatic sign of the economic stress Exelon is feeling, it warns of shuttering at least one nuclear plant if pricing doesn’t improve. “The economics may no longer support the continued operation of certain generating facilities, which could adversely affect (our) results of operations through increased depreciation rates, impairment charges and accelerated future decommissioning costs,” the company said in a Nov. 7 Securities and Exchange Commission filing.
‘ We’re . . . continuing to figure out how to help these (plants) survive this market downturn.’
— Chris Crane, CEO, Exelon
On the analysts’ call, Mr. Crane said Exelon’s Clinton nuclear plant in downstate Illinois has been hit particularly hard by the market. But, he said, “We’re in the mode of continuing to figure out how to help these things survive this market downturn versus the outright sell-or-close type thing at this point.”

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