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Proviso Probe

Friday, January 26, 2007

ECON, how's Exelon doing?

The argument for ComEd and other Illinois electric providers to raise rates was based on the money being needed.

Exelon is ComEd's parent company. ComEd made the claim that its rate increases were only to cover the cost increase from the provider from whom the electricity was purchased.

What ComEd neglected to mention was that it buys its electricity from Exelon, the company that owns ComEd.
Chicago Tribune (James P. Miller):
Exelon reiterated its forecast that 2007 earnings will be in the range of $4.00 to $4.30 a share. Interestingly, it thinks the generation group will generate about 85 percent of those earnings, assuming profits will be $4.00 a share in the current year.

Exelon predicted that the generation group will earn deliver $3.40 of the profit, while the company's Commonwealth Edison energy distribution subsidiary will contribute only about ten cents a share in earnings.

So Exelon was plenty profitable in 2006 before the rate increase. And the company is clearly accounting for its profits in the generation portion of the company, not the distribution part of the company.

h/t The Capitol Fax Blog and Chicagoist (Matt Wood)

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