Constellation Discusses Approach To Retail M&A Given ERCOT Volatility

During an Exelon earnings call yesterday, James McHugh, CEO of Constellation, discussed the company's approach to potential retail acquisitions in ERCOT given summer volatility

Asked by an analyst about the potential for Constellation to expand its retail position in ERCOT from the potential acquisition of struggling providers, McHugh said, "I think we did see, going into the summer, one small retailer go out of business. With the new collateral posting requirements by ERCOT, which include a look at the forward markets, it might be harder for some of the smaller retail providers to manage their balance sheet if they're undercapitalized, through those collateral requirements. For us, I think, strategy is the same. We'll look for good value propositions. Our track record with Integrys [Energy Services] and ConEd [Solutions] and what we're looking at now with the FES [FirstEnergy Solutions] book will continue to be the same to look for value."