What They Are Saying: Constellation Touts "Stable" Energy Supplier in Post-Polar Vortex World
April 29,2014
Constellation authored a blog post on April 28 titled, "Lessons from the Polar Vortex: The Value of a Stable Energy Supplier in a Volatile Market."
In the post, Constellation says, "But the polar vortex taught another unexpected lesson to many energy buyers – that not all energy suppliers are the same."
"In the last few months, we have seen stories in the press about energy suppliers who have left the retail market or who are passing through charges to customers because of the market volatility. Some of these suppliers have used certain provisions in their contracts to pass-through increased costs to customers who believed that they had fixed their energy prices and wouldn't be subject to such pass-through charges," Constellation observes in the post, noting that Constellation customers in PJM with fixed energy or ancillary costs did not see such price increases.
Constellation's blog continues, "Constellation is able to provide stability to our customers because of Exelon's generation assets that help meet peak demand periods."
Of course, those power plants are subsidized by all load serving entities, including competitors of Constellation, in PJM through mandatory capacity payments. And Exelon is fishing for additional public support for some of those generation assets which it is using to provide such "stability" to its own customers.