By Emma Penrod, Utility Dive
DTE Energy and Exelon Corp deny having any immediate plans to sell or spin off non-utility assets despite anonymous reports to Bloomberg, with a spokesperson for DTE calling the Bloomberg reports “market speculation” and Exelon indicating the company had reviewed the pros and cons of divestiture only as part of a routine review.
Lack of confirmation notwithstanding, current market conditions could push regulated utilities to spin off generation assets to manage risk in the face of a transition to renewable energy, according to The Brattle Group Principal Johannes Pfeifenberger.
While regulatory restructuring triggered the last to two waves of divestitures in the energy industry, cost-competitive renewable energy could trigger a new cycle of restructuring if renewables continue to outcompete coal and even low-priced natural gas, Pfeifenberger said.
