Moody's: Exelon, PSEG have highest business risk among top utilities

|About: Exelon Corporation (EXC)|By:, SA News Editor

A new report from Moody's paints a generally stable picture of utility holding company finances but says Exelon (EXC -0.7%) and Public Service Enterprise Group (PEG -0.4%) have the highest levels of operating risk due to their generation assets in competitive markets.

The credit rating agency says EXC's credit profile is constrained by its higher-risk merchant power subsidiary, Exelon Generation, which owns unregulated nuclear generation facilities and a retail energy trading and marketing business.

Moody's also notes utilities that own generation have significantly more carbon transition risk than those that do not, and "utilities that do not own generation face different, but generally lower, carbon transition risks."

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