According to media reports, Constellation Energy Resources, LLC, a subsidiary of Exelon Corporation EXC, has entered into a two-year electricity supply agreement with the City of Cleveland, OH, to provide fixed-price electricity supply and 24-hour customer support to over 60,000 residents in the area.
Constellation Energy was selected through a competitive bidding process under the governmental aggregation program. This Baltimore, MD-based company will start providing electricity services under the program from August this year and continue till Jul 2017.
The electricity supply agreement also made provisions for the development of renewable resources through a 50% mix using renewable energy credits (RECs).
Under the standard program, 50% renewable energy components are priced at 7.01 cents per kilowatt-hour. If customers do not accept the 50% energy option, the price will be reduced to 6.94 cents per kilowatt-hour. In case a customer wants 100% of electricity supply with the RECs, the price is pegged at 7.08 cents per kilowatt-hour.
In February this year, Constellation Energy won a $45 million contract from the Federal Bureau of Prisons to implement water and energy conservation measures, and install a 2-megawatt (DC) solar generation project at the Federal Correctional Complex in Coleman, FL (FCC Coleman). The project is expected to complete in 2017.
Exelon invests substantially in infrastructure projects, besides expanding its renewable and fossil fuel generating capacity. The company invested $1.78 billion for this in 2014, up a substantial 46.6% year over year. It plans to spend $16 billion in the next five years.
Currently, Exelon carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the industry include RWE AG RWEOY, Alliant Energy Corporation LNT and CMS Energy Corp. CMS. RWE AG sports a Zacks Rank #1 (Strong Buy), while Alliant Energy and CMS Energy hold a Zacks Rank #2 (Buy).
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