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Exelon, NRG Energy Could Be Impacted by Lower Power Prices Next Year

Changing clean power regulations will create winners and losers in the utility space, says S&P Capital IQ.

The Trump Administration is expected to scrap the EPA's Clean Power Plan in 2017, which would enable companies to extend the life of coal plants previously slated for closure, according to a report by S&P Capital IQ. Reducing regulations would impact utilities differently, says Christopher Muir, an equity analyst with CFRA. He believes regulated companies with significant coal generation will be winners in 2017, including Black Hills (BKH) , Great Plains Energy  (GXP) , MDU Resources (MDU) , NiSource (NI)  and Vectren (VVC) . But according to Muir, companies with unregulated power plants will face market forces that lead to lower power prices. That would negatively affect companies like Exelon (EXC) , AES (AES) , NextEra Energy (NEE) , NRG Energy (NRG)  and TransAlta (TAC) .