Exelon offers $6.2B for NRG

Full story: Chicago Tribune

Energy utility Exelon Corp. has offered to buy power generator NRG Energy Inc. for $6.2 billion in stock in a deal that Exelon said would create the largest U.S. power company in terms of assets.
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1 - 8 of 8 Comments Last updated Oct 20, 2008
Bo Schembechler

Crest Hill, IL

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#1
Oct 20, 2008
 
If you think rates are high now, just wait

“things that make you go "hmmmm”

Since: May 08

South Holland, IL

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#2
Oct 20, 2008
 
New Jersey and Illinois are among the states that conduct annual electricity auctions.
When this happened in Illinois, prices soared. Among the winning bidders to supply power? An unregulated sister company of Commonwealth Edison, owned by Exelon. In essence, this is a system in which an unregulated company earns outsize profits from a regulated company, which in turn earns virtually guaranteed profits and, by law, can pass on the prices it pays for electricty to customers.
Electricity auction prices are confidential. We ain't seen nothin' yet.
Please thank David Cay Johnston for his contribution to my education. And please tell ComEd, Emil Jones and Exelon to pound sand.
If they had no money and Simply Must Have a rate increase, where did they managed to cough up $6.2BILLION for this charade?
IPA

Yorkville, IL

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#3
Oct 20, 2008
 
Illinois no longer has an energy auction. That was done one time in late 2005. It is now being handled by the Illinois government (Illinois Power Agency)!!

“things that make you go "hmmmm”

Since: May 08

South Holland, IL

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#4
Oct 20, 2008
 
Yes, after fact checking you are correct. But I still think it's like the fox guarding the henhouse. Electricity is unsuitable for market auction. When pork bellies, houses and whatnot become too expensive, we can walk away and not use/buy them. Bacon is not a requirement for breakfast (despite what my husband thinks). But power companies are required to buy power in markets, because they no longer own the facilities to make it themselves, they still must provide us with power. And they give us no resource or incentive to ration our usage based upon real time usage. There are only a handful of buyers and sellers in the electricity market and they are taking us all for a ride. A very expensive ride.
IPA

Yorkville, IL

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#5
Oct 20, 2008
 
Actually you can sign up for a real time rate at your house if want. Certainly some risks in it, but I've been saving about 10% per month. You pay essentally what the market rate is for supply (which at this very instance is 4.7 cents, about 40% less than the flat ComEd rate for supply). www.thewattspot.com

“things that make you go "hmmmm”

Since: May 08

South Holland, IL

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#6
Oct 20, 2008
 
Thank you. At least in gives the the illusion of an alternative.

“things that make you go "hmmmm”

Since: May 08

South Holland, IL

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#7
Oct 20, 2008
 
"me the"......effin lack of edit......
Hmm

United States

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#9
Oct 20, 2008
 
I'm not sure that allowing Exelon to indiscriminately swallow up independent energy concerns is a good thing. There might be efficiency for them, and by "efficiency" I mean greater profits, but the consumer loses out in the end because there is no competitive pressures keeping the prices down or offer better service.

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