NEW YORK (TheStreet) -- Exelon (EXC) shares are up 3.95% to $35.50 on reports that the price of electricity is set to rise dramatically.
Payments to electricity producers are set to rise to $120 a megawatt per day, more that twice the current rate of $59.37, by June 2017 according to PJM Interconnection, which runs the largest power grid in the country.
American Electric Power Co. (AEP), UBS AG (UBS) and Standard & Poor's had previously estimated a price increase ranging from $75- $100.
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TheStreet Ratings team rates EXELON CORP as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate EXELON CORP (EXC) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, compelling growth in net income, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel these strengths outweigh the fact that the company shows low profit margins."
Highlights from the analysis by TheStreet Ratings Team goes as follows: