Why Exelon and Ameren shares are crashing today

Exelon (NASDAQ: EXC) and Ameren (NYSE: AEE) saw their stocks fall on Friday, which has resulted in the biggest two-day declines since 2020 after unfavorable decisions by state regulators in Illinois impacted their power utilities.

Exelon, owner of Chicago-based utility ComEd, also saw its stock downgraded by several brokerage firms.

“The final electric rate order from the Illinois Commerce Commission (ICC) is materially worse than expectations with ComEd awarded an allowed ROE of 8.905%, significantly below the U.S. national average of 9.6%,” Evercore ISI analyst Durgesh Chopra said in a downgrade note.

Ameren, with its Illinois electric and gas company, also witnessed rating downgrades on Friday, including from Evercore ISI’s Chopra.

“The Commission also denied the Multi-Year Integrated Grid Plans for both companies, creating uncertainty about their forward-looking capital, rate base and earnings outlooks,” the analyst added.

At 14:22 EDT (GMT 19:22), Exelon fell 5.7% while Ameren lost 3.9%.

By Senad Karaahmetovic

You May Also Be Interested In

• JD.com (JD) Reiterated at Buy by Benchmark Amid Earnings Recovery
• BofA Securities Resumes American Eagle Outfitters (AEO) at Underperform
• Freedom Broker Upgrades Lifeway Foods (LWAY) to Buy