Exelon, a major U.S. electric utility, plans to increase ownership of power plants in the Mid-Atlantic region due to rising demand and slow supply additions. PJM Interconnection, the largest grid in the Midwest to Mid-Atlantic, faces supply shortages from data centers and transportation electrification. Exelon aims to advocate for regulated power generation changes to ease the power crunch.

CEO Calvin Butler believes that allowing utilities like Exelon to build regulated power supplies could lower prices and alleviate the grid’s power shortages. The company is laying the groundwork by engaging with lawmakers and governors before next year’s legislative sessions. About half of U.S. states are deregulated, preventing utilities from owning regulated power generation.

Butler is a strong supporter of competitive markets but believes that the current system in PJM is not working. U.S. power demand is expected to reach record levels this year and next. Exelon aims to build community solar in low-income areas to reduce power bills, as 80% of recent bill increases are due to power supply costs. Some cities like Philadelphia and Baltimore have seen significant power bill hikes.

Independent power companies argue against regulated power generation in deregulated states, fearing increased costs for customers. Butler contends that regulated utilities can build power supplies more affordably due to lower borrowing costs and streamlined permitting processes. Exelon’s return on assets is about 9.5%, half of what independent power producers earn.

Read more at Yahoo Finance: Exelon to intensify push to own Mid-Atlantic power plants, CEO says