Tooba Ali pitched Exelon, a fortune 100 energy company with over 10 million customers in 48 states. Future catalysts for Exelon’s growth are the company’s industry leading power generation and efficiency, and its strong political influence in regulation and law. For example, Exelon’s nuclear power generators have secured subsidy backings to keep themselves afloat. Within 2-3 years, 11 of their 40 nuclear plants will have guaranteed cash flows for the next decade. In addition, Tooba addressed that Exelon has a strong focus on reinvesting for organic growth and technological innovation. Lastly, they have a diverse fuel mix with a focus on nuclear energy, which Tooba thinks will continue in the future.
All in all, Tooba’s pitch was very strong, however the class had concerns regarding the company’s concentration in nuclear energy. As Exelon’s nuclear program is subsidized by the federal government, if the Trump Administration were to cut these subsidies in favor of oil and coal, the company could be left harmed. The class ultimately decided that now was not the time to invest in a company like Exelon.