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Exelon Believes Aggressive Retail Competition Will Continue

February 18, 2015 By Josh Kessler

Exelon stated in its recent 10-K filing that “The market experienced high price volatility in the first quarter of 2014 which contributed to bankruptcies and consolidations within the industry during the year. However, forward natural gas and power prices are expected to remain low and thus we expect retail competitors to stay aggressive in their pursuit of market share, and that wholesale generators (including Generation) will continue to use their retail operations to hedge generation output.” (see page 95-96) The low-price environment is not ubiquitous but generally applies across the regions where Exelon operates, namely the Midwest, Mid-Atlantic, and Texas, as noted on the company’s website.

While this impairs profitability for wholesalers, it’s good news for retail buyers. It means they can expect suppliers to offer attractive pricing and show greater flexibility.

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