Share
0
Facebook
0
LinkedIn
0
Twitter
0
GooglePlus
0
Reddit
0
StumbleUpon
Loading, please wait

Climate Policy Spells Turn Around for Exelon

By Jen Alic
Posted on Thu, 04 July 2013 22:32 | 0

Shareholders would like to know whether the Obama administration’s climate change policy will be a positive or negative turning point for nuclear power giant Exelon Corp. (EXC).

Well, it couldn’t get any worse, at least. Chicago-based Exelon has lost $30.5 billion in market value and has seen its stock drop 64% over the past five years.

One view is that Exelon was playing a long game, betting on eventual limits to greenhouse gas emissions and being patient enough—and brave enough—to make its shareholders suffer five years of losses on this bet. A February dividend cut was the icing on this nuclear cake.

Related article: Nuclear Energy Innovation is Vital for Slowing Climate Change

Exelon will now—finally—benefit from the Obama administration’s new climate policy, so all that lobbying for climate legislation may start to pay off.

Specifically, the new climate policy unveiled this week will limit carbon dioxide emissions from power plants, which in turn could give Exelon and its nuclear reactors the advantage (not to mention alternative energy companies) over coal producers. Power plants are, after all, responsible for 40% of all greenhouse gas emissions.

By comparison to its coal-heavy competitors, Exelon only emits 25% of greenhouse gases to produce the same amount of power.

But investors will take note that nuclear energy was given exactly the right amount of play in Obama climate strategy, not overshadowing alternative energy, but letting investors know that it will be supported.

The market hasn’t reacted--yet. Exelon’s share prices declined 0.8% at the close of trading on 1 July, though they have overall gone up about 4.5% this year, according to Bloomberg.

By. Jen Alic of Oilprice.com


Join the discussion

Special Reports

8 Mega Trends

8 Mega Trends

By Oil & Energy Insider Analysts

8 OIL & GAS INDUSTRY MEGA-TRENDS AND HOW TO PROFIT FROM THEM
Here's what our 400 global energy assets are telling us to be prepared for right now...

LNG Technology

LNG Technology

By Oil & Energy Insider Analysts

THE "FLOATING REFINERY" STOCK THAT COULD FUND YOUR RETIREMENT
This company's incredible tanker technology could eliminate many of the world's offshore pipelines...

Subsea Production

Subsea Production

By Oil & Energy Insider Analysts

THE END OF OFFSHORE DRILLING?
This disruptive market will grow 84% to 270% over the next five years: Discover the 6 equipment suppliers set to profit.

Related Articles

Be the first to comment on this article.