U.S. power producer Exelon Generation Co. LLC's (ExGen) low-cost base-load generation has a strong operating track record, but it remains subject to considerable energy margin variability, driven by unpredictable commodity prices, demand growth, and weather patterns. Large natural gas production volumes have collapsed natural gas and power prices, carrying significant downside potential for a portfolio of power plants that is largely nuclear (generally more than 70% of total generation). Several consecutive mild summers, declining market heat rates, and gas regional pricing differentials have weakened the expected economics of the company's generation plants over the next 24 months despite a stronger fundamental long-term outlook. Capacity prices could continue to languish because of lackluster electric demand, growing energy efficiency, and increased penetration
