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No. of Recommendations: 1
EXC lowered FY12 operating earnings to $2.55 - $2.85. At a p/e of 15 the stock price would calculate $38.25 - $42.75.

Interest rates on the long end of the treasury curve are biased down - for now. I think the 15 multiple has upside for this reason as well as a few others.

EXC now generates 55% of its power from nuclear, 24% from natural gas, and 8% from renewable/hydro (from the website). It's going to sell 3 Maryland coal plants - cheap - as coal is becoming onerous due to EPA rule making. Utilities may retire 33,000 MW of coal-fired generation.

Natural gas prices are beginning to recover.

PECO and BGE regulated customers are in close proximity to Marcellus gas.
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