Power company shares down on lower electricity prices
Shares of several regional power producers were drubbed Tuesday after the regional grid's annual auction attracted a record amount of new generation, effectively pushing down electricity prices for regional generators like Exelon Corp.
Shares of several regional power producers were drubbed Tuesday after the regional grid's annual auction attracted a record amount of new generation, effectively pushing down electricity prices for regional generators like Exelon Corp.
Deutsche Bank downgraded Exelon from a "buy" to "hold" Tuesday after PJM Interconnection on Friday lowered capacity prices for 2016-2017, citing an abundance of new natural-gas fired generation and increases in power imports from neighboring regions.
Exelon's shares closed down $2.61 or 7.5 percent on Tuesday at $32.04. Shares of FirstEnergy Corp., another big power generator, were off $2.76 or 6.5 percent.