We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Exelon (EXC) Unit Files for Rate Hike to Recoup Investment
Read MoreHide Full Article
Exelon Corporation (EXC - Free Report) announced that its unit, ComEd, filed for a distribution rate increase with the Illinois Commerce Commission (“ICC”). The appeal to increase rates has been made after four years to recoup the investments made by the company to strengthen infrastructure and increase resilience of its operations. If approved by ICC, it will result in 20 cents increase in the monthly bill of average residential customers.
Investments made by the company to strengthen the grid, and improve the transmission and distribution infrastructure allowed it to restore power quickly amid extreme weather conditions. ComEd plans to invest $9.7 billion in the 2021-2024 time frame to strengthen operations.
Exelon’s Long-Term Plan
Exelon invests substantially in infrastructure projects, in addition to expanding renewable and fossil fuel generating capacity. After investing $6.5 billion in 2020 in utility operation, it plans to invest nearly $26.7 billion over the 2021-2024 time frame in regulated operations, which will support rate base growth of 7.6% in the 2020-2024 time period.
Management has decided to separate its businesses into two parts: one focusing on transmission and distribution of clean energy and the other concentrating on producing clean energy for customers.
Transition in Utility Space
Utilities operating across the United States have understood the need for reducing emissions in their production process and Exelon is also committed to do the same. It aims to attain carbon neutrality by generating electricity from sources having low carbon emissions. To lower emissions across the entire value chain, the company has a goal to electrify 30% its electric utility vehicle fleet by 2025 and 50% by 2050.
Other utilities like Xcel Energy (XEL - Free Report) , The Southern Company (SO - Free Report) and Duke Energy (DUK - Free Report) , among others, have made long-term plans to attain carbon neutrality by 2050. The majority of the companies are moving away from coal, and starting to produce more electricity from natural gas as well as renewable sources.
Shares of Exelon have outperformed the industry in the past six months.
Zacks Top 10 Stocks for 2021
In addition to the stocks discussed above, would you like to know about our 10 best buy-and-hold tickers for the entirety of 2021?
Last year's 2020 Zacks Top 10 Stocks portfolio returned gains as high as +386.8%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Image: Bigstock
Exelon (EXC) Unit Files for Rate Hike to Recoup Investment
Exelon Corporation (EXC - Free Report) announced that its unit, ComEd, filed for a distribution rate increase with the Illinois Commerce Commission (“ICC”). The appeal to increase rates has been made after four years to recoup the investments made by the company to strengthen infrastructure and increase resilience of its operations. If approved by ICC, it will result in 20 cents increase in the monthly bill of average residential customers.
Investments made by the company to strengthen the grid, and improve the transmission and distribution infrastructure allowed it to restore power quickly amid extreme weather conditions. ComEd plans to invest $9.7 billion in the 2021-2024 time frame to strengthen operations.
Exelon’s Long-Term Plan
Exelon invests substantially in infrastructure projects, in addition to expanding renewable and fossil fuel generating capacity. After investing $6.5 billion in 2020 in utility operation, it plans to invest nearly $26.7 billion over the 2021-2024 time frame in regulated operations, which will support rate base growth of 7.6% in the 2020-2024 time period.
Management has decided to separate its businesses into two parts: one focusing on transmission and distribution of clean energy and the other concentrating on producing clean energy for customers.
Transition in Utility Space
Utilities operating across the United States have understood the need for reducing emissions in their production process and Exelon is also committed to do the same. It aims to attain carbon neutrality by generating electricity from sources having low carbon emissions. To lower emissions across the entire value chain, the company has a goal to electrify 30% its electric utility vehicle fleet by 2025 and 50% by 2050.
Other utilities like Xcel Energy (XEL - Free Report) , The Southern Company (SO - Free Report) and Duke Energy (DUK - Free Report) , among others, have made long-term plans to attain carbon neutrality by 2050. The majority of the companies are moving away from coal, and starting to produce more electricity from natural gas as well as renewable sources.
Zacks Rank & Price Performance
Exelon currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of Exelon have outperformed the industry in the past six months.
Zacks Top 10 Stocks for 2021
In addition to the stocks discussed above, would you like to know about our 10 best buy-and-hold tickers for the entirety of 2021?
Last year's 2020 Zacks Top 10 Stocks portfolio returned gains as high as +386.8%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Access Zacks Top 10 Stocks for 2021 today >>