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Why Exelon’s utility business contributed less in 3Q14

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Exelon’s revenues from utilities

Exelon’s utility subsidiaries, BGE, ComEd, and PECO, generated revenues of $2.6 billion for Exelon Corporation (EXC) in the third quarter of 2014. These subsidiaries are involved in Exelon’s transmission and distribution business.

While revenues for BGE and PECO were lower than the same quarter last year, ComEd sales grew by 5.7%.

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Earnings from these utilities

The income from Exelon’s utility segment this quarter was lower than last year. The combined net income from BGE, PECO, and ComEd was $256 million for the third quarter. This means a year-over-year profit drop of 5.4%.

Exelon generated $0.29 per share from its utility business for the quarter, compared to $0.32 in the same quarter last year.

Factors that affected the utility business in 3Q

ComEd – Higher earnings from transmission and distribution were offset by unfavorable weather, resulting in a flat earnings per share (or EPS) compared to last year.

PECO – Burdened by increased operations and maintenance (or O&M) costs and unfavorable weather in the third quarter, PECO’s EPS fell $0.02 from last year’s.

BEG – Rise in O&M costs lowered BEG’s profits. These were partially offset by higher rates. The EPS for Exelon dragged by $0.01 this quarter compared to last year.

Exelon’s utility segment operates in the US states of Illinois, Maryland, and Pennsylvania. Some of the other power producers in these regions are Ameren Corp. (AEE), FirstEnergy Corp. (FE), and PPL Corporation (PPL).

All of these companies are part of the Select Sector Utilities Select Sector SPDR Fund (XLU).

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