Exelon "Very Happy" With Current Retail Biz Position, But Continues Disciplined "Hunt" For Accretive Retail M&A

Exelon executives said during an earnings call yesterday that they are "very happy" with the current position of their Constellation competitive retail supply business, but continue to "hunt" for accretive retail M&A.

Constellation's C&I market share has grown to 25%, executives said.

Retail margins have remained stable in the $2/MWh to $4/MWh origination range

Noting renewal and win rates for Constellation retail are in line with disclosures made at a recent analyst day, Joseph Nigro, CEO of Constellation said of the retail supply business, "we're very comfortable with the plan that we have in place as we move through 2017. We'll continue to monitor that, but right now, we're very happy with where we are."

For retail electricity, the renewal rate was 77% and the new customer win rate was 28%.

Constellation is also comfortable with its retail volumes.

Regarding the potential for additional retail acquisitions, Nigro said, "We'll continue to hunt for those if the opportunity is right, and we see value and it fits our portfolio in what we're trying to achieve with the customer. And we'll remain disciplined with that."

In response to an analyst question concerning Exelon's prior disclosure it was reviewing the potential disposition for some of its assets (such as Mystic or a sell-down of renewables via a JV), and why there has not yet been any announcements with regard to dispositions, Exelon CEO Chris Crane said that the process is not a "fire sale" and the company is being deliberative.