U.S. Power Grid Faces Blackout Risk by 2027
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 57 minutes ago
0mins
Source: seekingalpha
- Rising Electricity Demand: Exelon CEO Calvin Butler warned that the U.S. could face blackouts by 2027 due to increasing electricity demand, particularly in the Northeast and Midwest, where a shortage of power plants could threaten 400,000 customers with outages during extreme cold.
- Power Supply Shortfall: PJM forecasts a 60 GW power supply shortfall over the next decade, with a reported 6.5 GW deficit in its last auction, exacerbating the upward pressure on electricity prices and highlighting the urgent need for infrastructure investment.
- Electricity Price Increases: According to the U.S. Energy Information Administration, national electricity prices have risen by 7% since last year, with Exelon's service areas experiencing even steeper increases of 17% in New Jersey, 16% in Maryland, and 13% in Pennsylvania, placing additional financial strain on consumers.
- Investment and Cost Challenges: Butler emphasized that utilities are unfairly blamed for rising costs, as they require significant infrastructure investments to maintain service quality; however, political backlash led Exelon's PECO subsidiary to withdraw its request for a $35 monthly rate increase in 2027, deferring necessary cost adjustments.
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Analyst Views on EXC
Wall Street analysts forecast EXC stock price to rise
15 Analyst Rating
7 Buy
6 Hold
2 Sell
Moderate Buy
Current: 47.400
Low
39.00
Averages
49.46
High
57.00
Current: 47.400
Low
39.00
Averages
49.46
High
57.00
About EXC
Exelon Corporation is a utility services holding company engaged in the energy transmission and distribution businesses through its subsidiaries, Commonwealth Edison Company (ComEd), PECO Energy Company (PECO), Baltimore Gas and Electric Company (BGE), Potomac Electric Power Company (Pepco), Delmarva Power & Light Company (DPL) and Atlantic City Electric Company (ACE). Its segments include ComEd, PECO, BGE, Pepco, DPL and ACE. ComEd segment is engaged in purchasing and regulating the retail sale of electricity. PECO segment is engaged in purchasing and regulating the retail sale of electricity and natural gas. BGE segment is focused on transmission and distribution of electricity and distribution of natural gas to retail customers. Through its business services subsidiary, Exelon Business Services Company, LLC (BSC), it provides its subsidiaries with a variety of support services at cost, including legal, human resources, finance, information technology and supply management services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
U.S. Power Grid Faces Blackout Risk by 2027
- Rising Electricity Demand: Exelon CEO Calvin Butler warned that the U.S. could face blackouts by 2027 due to increasing electricity demand, particularly in the Northeast and Midwest, where a shortage of power plants could threaten 400,000 customers with outages during extreme cold.
- Power Supply Shortfall: PJM forecasts a 60 GW power supply shortfall over the next decade, with a reported 6.5 GW deficit in its last auction, exacerbating the upward pressure on electricity prices and highlighting the urgent need for infrastructure investment.
- Electricity Price Increases: According to the U.S. Energy Information Administration, national electricity prices have risen by 7% since last year, with Exelon's service areas experiencing even steeper increases of 17% in New Jersey, 16% in Maryland, and 13% in Pennsylvania, placing additional financial strain on consumers.
- Investment and Cost Challenges: Butler emphasized that utilities are unfairly blamed for rising costs, as they require significant infrastructure investments to maintain service quality; however, political backlash led Exelon's PECO subsidiary to withdraw its request for a $35 monthly rate increase in 2027, deferring necessary cost adjustments.
See More
Market Capitalization Comparison: eBay vs Exelon
- Market Cap Overview: eBay Inc. has a market capitalization of $47.95 billion, while Exelon Corp stands at $47.83 billion, indicating their close proximity in market valuation and reflecting similar investor recognition of both companies.
- Investor Misconceptions: Many novice investors often compare stocks based solely on share price, overlooking the significance of market capitalization, which can lead to misunderstandings about a company's true value and highlights the critical role of market cap in investment decisions.
- Market Positioning Impact: Market capitalization not only affects a company's ranking among peers but also directly influences which mutual funds and ETFs are willing to hold these stocks, particularly as large funds tend to favor companies with market caps exceeding $10 billion.
- Index Classification Example: For instance, the S&P MidCap index focuses on smaller companies by excluding the largest 100 firms, illustrating the importance of market cap in portfolio construction and market performance.
See More
Grand Opening of the Obama Presidential Center
- Grand Celebration: The Obama Presidential Center opened on May 29, 2026, in Chicago, attracting numerous donors and business leaders, and is expected to be the largest gathering ahead of the 2026 midterm elections, highlighting Obama's historical achievements.
- Political Future Discussions: Informal conversations among donors and business leaders about the future of the Democratic Party and fundraising will take place during the event, reflecting a pressing need to regain control of Congress and showcasing the intertwining of politics and business.
- Non-Partisan Stance: Valerie Jarrett, CEO of the Obama Foundation, emphasized that despite the political undertones, the center, as a non-profit entity, aims to foster healthy dialogue among diverse political perspectives, embodying the core values of a democratic society.
- Economic and Community Development: Business leaders like Calvin Butler noted that the opening of the Obama Center will spur economic growth and community stability, underscoring the importance of bipartisan cooperation to address significant policy challenges facing the nation.
See More
ComEd and Mayors Caucus Award EV Readiness Certificates
- EV Readiness Program: ComEd, in partnership with the Mayors Caucus, hosted an award ceremony recognizing nine communities graduating from the 2026 EV Readiness Program, indicating significant local progress in building EV infrastructure to support Illinois' goal of one million EVs by 2030.
- Policy and Process Optimization: The program aids communities in updating zoning codes to eliminate barriers to EV charging, streamline permitting processes, and enhance safety, thereby providing better services to residents and promoting sustainability, highlighting the critical role of local governments in EV adoption.
- Charging Infrastructure Development: Downers Grove collaborated with ComEd to install nearly 300 EV charging stations at an Amazon distribution center, strengthening the local EV charging framework and promoting EV usage, showcasing the potential of local government and business partnerships.
- Funding Support and Investment: ComEd has provided over $200 million in EV incentive and rebate funding to help residents and businesses in more than 360 zip codes deploy electric vehicles and charging infrastructure, with 81% of the funding dedicated to equity investment eligible communities, reflecting a commitment to equitable investment.
See More
ComEd Nears Completion of Power Restoration After Severe Storms
- Restoration Progress: ComEd has restored power to 99% of affected customers following the worst storms since 2020, demonstrating its rapid response capability under extreme weather conditions.
- Infrastructure Damage: Wind gusts reaching 80 mph and at least two confirmed tornadoes caused significant damage to ComEd's infrastructure, necessitating the replacement of nearly 500 utility poles and the use of over 295,000 feet of cable wire.
- Customer Impact: Over 674,600 ComEd customers experienced outages during the two days of severe weather, highlighting the challenges and pressures the company faced in managing a large-scale outage event.
- Employee Mobilization: During the peak of the response, ComEd mobilized over 3,000 employees and 2,200 contractors to ensure efficiency in complex restoration efforts, reflecting the company's commitment to customer service.
See More
ComEd Restores Power After Severe Storms in Northern Illinois
- Widespread Outages: Approximately 684,000 ComEd customers experienced outages due to severe weather over the past two days, highlighting significant damage to the power infrastructure and necessitating accelerated restoration efforts to meet customer needs.
- Significant Restoration Progress: As of 6 PM on June 12, ComEd restored power to about 582,000 customers, achieving a restoration rate exceeding 85%, indicating the company's effective response to the challenges posed by extreme weather.
- Emergency Response Deployment: During the peak of the response, ComEd mobilized over 200 crews and 3,000 personnel, establishing base camps at multiple locations to ensure rapid and effective restoration work, demonstrating the company's efficiency in crisis management.
- Customer Safety Priority: ComEd emphasizes public safety by encouraging customers to report downed power lines immediately at 1-800-EDISON1 and providing various contact methods for restoration information, reflecting the company's commitment to customer service.
See More
U.S. Power Grid Faces Blackout Risk by 2027
- Rising Electricity Demand: Exelon CEO Calvin Butler warned that the U.S. could face blackouts by 2027 due to increasing electricity demand, particularly in the Northeast and Midwest, where a shortage of power plants could threaten 400,000 customers with outages during extreme cold.
- Power Supply Shortfall: PJM forecasts a 60 GW power supply shortfall over the next decade, with a reported 6.5 GW deficit in its last auction, exacerbating the upward pressure on electricity prices and highlighting the urgent need for infrastructure investment.
- Electricity Price Increases: According to the U.S. Energy Information Administration, national electricity prices have risen by 7% since last year, with Exelon's service areas experiencing even steeper increases of 17% in New Jersey, 16% in Maryland, and 13% in Pennsylvania, placing additional financial strain on consumers.
- Investment and Cost Challenges: Butler emphasized that utilities are unfairly blamed for rising costs, as they require significant infrastructure investments to maintain service quality; however, political backlash led Exelon's PECO subsidiary to withdraw its request for a $35 monthly rate increase in 2027, deferring necessary cost adjustments.
See More
Market Capitalization Comparison: eBay vs Exelon
- Market Cap Overview: eBay Inc. has a market capitalization of $47.95 billion, while Exelon Corp stands at $47.83 billion, indicating their close proximity in market valuation and reflecting similar investor recognition of both companies.
- Investor Misconceptions: Many novice investors often compare stocks based solely on share price, overlooking the significance of market capitalization, which can lead to misunderstandings about a company's true value and highlights the critical role of market cap in investment decisions.
- Market Positioning Impact: Market capitalization not only affects a company's ranking among peers but also directly influences which mutual funds and ETFs are willing to hold these stocks, particularly as large funds tend to favor companies with market caps exceeding $10 billion.
- Index Classification Example: For instance, the S&P MidCap index focuses on smaller companies by excluding the largest 100 firms, illustrating the importance of market cap in portfolio construction and market performance.
See More
Grand Opening of the Obama Presidential Center
- Grand Celebration: The Obama Presidential Center opened on May 29, 2026, in Chicago, attracting numerous donors and business leaders, and is expected to be the largest gathering ahead of the 2026 midterm elections, highlighting Obama's historical achievements.
- Political Future Discussions: Informal conversations among donors and business leaders about the future of the Democratic Party and fundraising will take place during the event, reflecting a pressing need to regain control of Congress and showcasing the intertwining of politics and business.
- Non-Partisan Stance: Valerie Jarrett, CEO of the Obama Foundation, emphasized that despite the political undertones, the center, as a non-profit entity, aims to foster healthy dialogue among diverse political perspectives, embodying the core values of a democratic society.
- Economic and Community Development: Business leaders like Calvin Butler noted that the opening of the Obama Center will spur economic growth and community stability, underscoring the importance of bipartisan cooperation to address significant policy challenges facing the nation.
See More
ComEd and Mayors Caucus Award EV Readiness Certificates
- EV Readiness Program: ComEd, in partnership with the Mayors Caucus, hosted an award ceremony recognizing nine communities graduating from the 2026 EV Readiness Program, indicating significant local progress in building EV infrastructure to support Illinois' goal of one million EVs by 2030.
- Policy and Process Optimization: The program aids communities in updating zoning codes to eliminate barriers to EV charging, streamline permitting processes, and enhance safety, thereby providing better services to residents and promoting sustainability, highlighting the critical role of local governments in EV adoption.
- Charging Infrastructure Development: Downers Grove collaborated with ComEd to install nearly 300 EV charging stations at an Amazon distribution center, strengthening the local EV charging framework and promoting EV usage, showcasing the potential of local government and business partnerships.
- Funding Support and Investment: ComEd has provided over $200 million in EV incentive and rebate funding to help residents and businesses in more than 360 zip codes deploy electric vehicles and charging infrastructure, with 81% of the funding dedicated to equity investment eligible communities, reflecting a commitment to equitable investment.
See More
ComEd Nears Completion of Power Restoration After Severe Storms
- Restoration Progress: ComEd has restored power to 99% of affected customers following the worst storms since 2020, demonstrating its rapid response capability under extreme weather conditions.
- Infrastructure Damage: Wind gusts reaching 80 mph and at least two confirmed tornadoes caused significant damage to ComEd's infrastructure, necessitating the replacement of nearly 500 utility poles and the use of over 295,000 feet of cable wire.
- Customer Impact: Over 674,600 ComEd customers experienced outages during the two days of severe weather, highlighting the challenges and pressures the company faced in managing a large-scale outage event.
- Employee Mobilization: During the peak of the response, ComEd mobilized over 3,000 employees and 2,200 contractors to ensure efficiency in complex restoration efforts, reflecting the company's commitment to customer service.
See More
ComEd Restores Power After Severe Storms in Northern Illinois
- Widespread Outages: Approximately 684,000 ComEd customers experienced outages due to severe weather over the past two days, highlighting significant damage to the power infrastructure and necessitating accelerated restoration efforts to meet customer needs.
- Significant Restoration Progress: As of 6 PM on June 12, ComEd restored power to about 582,000 customers, achieving a restoration rate exceeding 85%, indicating the company's effective response to the challenges posed by extreme weather.
- Emergency Response Deployment: During the peak of the response, ComEd mobilized over 200 crews and 3,000 personnel, establishing base camps at multiple locations to ensure rapid and effective restoration work, demonstrating the company's efficiency in crisis management.
- Customer Safety Priority: ComEd emphasizes public safety by encouraging customers to report downed power lines immediately at 1-800-EDISON1 and providing various contact methods for restoration information, reflecting the company's commitment to customer service.
See More
