While Exelon (NYSE:EXC) is strongly positioned as one of the largest utilities companies in the U.S. and has several competitive advantages, there are also some risks investors need to consider. In this video, Motley Fool energy analyst Taylor Muckerman discusses how the current natural gas surplus, combined with a warmer than expected winter, is keeping natural gas prices low, which means that Exelon can't charge the rates it would like for its power. This particularly affects its huge, and expensive, nuclear fleet, where the company has seen shrinking margins as a result. These shrinking margins also have sparked rumors of a dividend cut, which has led to investors pulling back recently in the short term.
Taylor Muckerman has no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. Motley Fool newsletter services recommend Dominion Resources and Exelon. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.