CONSULTING

here is that there’s not going to be much subsidizing of merchant nuclear plants.” 224 Exelon shares
lost about 40 percent compared to their level a decade ago and they are over 60 percent below their
peak level in 2008 (see Figure 25).
Figure 25: Exelon (US) Share Price Development 2006-2016
Exelon (US) Share Price Development Since 2006
(in %)
100
2 July 2008: US$90.54
Share Price
as of 3 January 2006:
US$54.62
Share Price
as of 1 July 2016:
US$36.41
50
0
-50
Percentage Change Since 2006
-100
Source: Yahoo Finances, July 2016 225
All four reactors under construction in the U.S. are being built in regulated markets. Two of these
are being built by Georgia Power at the Vogtle site. In May 2016 Moody’s downgraded its parent
company, Southern Company from Baa1 to Baa2—just two notches above “junk”—as a result of its
acquisition of AGL Resources and the additional debt it was taking on. However, Moody’s noted that
Southern's financial position had been weakened over a number of factors, including the Vogtle site
“that has experienced costs increases and delays, with commercial operation currently three years
behind schedule.” 226
Nuclear Builders and Vendors
In addition to the utilities, the nuclear builders and vendors are suffering in part as a result of the
changes in the power market. The traditional reactor suppliers, namely, AREVA, Atomic Energy of
Canada Limited (AECL), Westinghouse and General Electrics (GE), are losing what remains of the
224 Bloomberg, “Exelon Shutting Two Nuclear Plants After Legislation Fails”, 2 June 2016, see
http://www.bloomberg.com/news/articles/2016-06-02/exelon-closing-2-illinois-nuclear-plants-after-legislation-fails,
accessed 1 July 2016.
225 Data extracted from Yahoo Finance refers to Exelon’s share value performance on the New York Stock
Exchange Market (EXC). Percentage change is calculated on the basis of the closing price on 3 January 2006.
226 Moody’s, “Moody’s downgrades South Company to Baa2 stable; affirms subsidiary ratings and outlooks”,
14 May 2016.
Mycle Schneider, Antony Froggatt et al. 71 World Nuclear Industry Status Report 2016