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Exelon: "Always" Interested In Retail Acquisitions, Will Be "Aggressive" If Accretive Opportunities Arise

May 3, 2018

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Copyright 2010-17 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

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Responding to a question about an increase in retail M&A activity and books being shopped, Joseph Nigro CEO, Constellation and Executive Vice President, Exelon said during Exelon's first quarter earnings call that Exelon is "always" interested in retail acquisitions and will be "aggressive" if accretive opportunities present themselves.

"We're always interested in looking at whatever opportunities exist in the marketplace. As you know, we have a history of acquiring companies in our recent past when you look at Integrys and Con Ed, for example, and we'll continue to do that. To the extent we can add something that we think will be accretive to the bottom line and fits with the value proposition that we're trying to bring both to our shareholders and our customers, we're going to be aggressive with doing that. There has been some change of hands with retailers in the near-term here and we would expect that to continue given some that are on the market now and we'll continue to hunt for them," Nigro said

Nigro also discussed margins and the retail businesses' position.

"I think, first of all, the volatility during the quarter, especially in New England and PJM, was good to see. We've got an expectation of volumes and margins that are in our disclosure, and we're comfortable with those, and they remain -- the margins remain in line with what our expectations have been historically for C&I margins. We're comfortable with our projections overall. I will tell you we've seen some competitive behavior change on the retail side. Some folks, I think, were hurt last year with low volumes. And when you get into some of the non-energy charges and how they're calculated on a volumetric basis, and we've seen some of our competitors move away from fully fixed price contracts in certain markets. And we'll continue to offer those products, and we're going to remain disciplined to our approach," Nigro said

"We spend a lot of time analytically evaluating data and using that data to inform our decisions both from a generation-to-load matching strategy, from a pricing perspective and a product development perspective. And as you know, last year, we had some challenges in our retail business. We're comfortable where we are now. I will tell you on the wholesale POLR auction side in the first quarter, we have had some success. And I think it's directly attributable to the volatility that we saw in late December and early January, and quite frankly, in March as well in Eastern PJM with higher prices," Nigro said

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