PJM West Hub Calendar Strip Historical Power Pricing

PJM West Hub Calendar Strip Historical Power Pricing Customer Takeaway: Power forwards in PJM West Hub are unchanged over the past week and down lower by less than 1% on average, over the past month. The front end of most zonal curves are within 10% of all time lows (2019 -2020) and within 5% of lows on the back-end (2021 -2022). Source: Constellation 0 © 2018 Constellation Energy Resources, LLC. The offerings described herein are those of either Constellation New. Energy-Gas Division, LLC or Constellation New. Energy, Inc. , affiliates of each other and ultimate subsidiaries of Exelon Corporation. Brand names and product names are trademarks or service marks of their respective holders. All rights reserved. Errors and omissions excepted.

PJM Capacity Prices Jump 83% in PY 21 -22 Auction • PJM released the results of its PY 21/22 capacity auction on May 23 rd. Prices cleared substantially higher than expectations with the RTO clearing at $140/MW-Day, an 83% increase over last year’s RTO price of $76. 53/MWDay. • Several other delivery areas cleared at a premium including Com. Ed ($196), ATSI ($171), BGE ($200), PSEG ($204), and EMAAC ($166). Prices cleared higher due in part to transmission constraints and planned generation retirements. PJM attributes the increase in capacity clearing prices to several factors: • An increase in participants’ capacity offer prices in light of sustained low energy prices and revenues (i. e. bidding behavior) • A decrease in total cleared capacity and fewer offers from new resources • An increase in Net CONE (reference cost assumption used in modeling the demand curve) Customer Takeaway: Some nuclear units that did not clear the auction may be subsequently retired, which could put upward pressure on forward power prices. The limited amount of new natural gas-fired generation added in this auction suggests we may be nearing saturation for new gas-fired builds in PJM at current power prices. Source: PJM, Constellation 1 © 2018 Constellation Energy Resources, LLC. The offerings described herein are those of either Constellation New. Energy-Gas Division, LLC or Constellation New. Energy, Inc. , affiliates of each other and ultimate subsidiaries of Exelon Corporation. Brand names and product names are trademarks or service marks of their respective holders. All rights reserved. Errors and omissions excepted.

PJM – Noteworthy News Item to Watch : We continue to monitor a recent FERC Order (May 31, 2018) in which we shared an update recently. FERC approved a settlement for a reallocation of TEAC related costs from PJM-West to PJM-East. The order approves a settlement from 2016 that changes the cost allocation method of certain transmission projects 500 k. V and above built in eastern PJM that have been partially allocated to western PJM based on their load ratio. Litigation has been lengthy spanning over a decade and involved various stakeholders including PJM transmission owners, state regulators and customer groups. The impact of the recently approved change in allocations will result in both retroactive and future cost adjustments. PJM has filed a request at FERC for an extension through July 30, 2018 in order to perform analysis allow enough time to comply with the Order. PJM has also posted a presentation with highlights here. Source: PJM, FERC 2 © 2018 Constellation Energy Resources, LLC. The offerings described herein are those of either Constellation New. Energy-Gas Division, LLC or Constellation New. Energy, Inc. , affiliates of each other and ultimate subsidiaries of Exelon Corporation. Brand names and product names are trademarks or service marks of their respective holders. All rights reserved. Errors and omissions excepted.

Disclaimer The information contained herein has been obtained from sources which Constellation New. Energy, Inc. and/or Constellation New. Energy-Gas Division, LLC (collectively, “Constellation”) believes to be reliable. Constellation does not represent or warrant as to its accuracy or completeness. All representations and estimates included herein constitute Constellation’s judgment as of the date of the presentation and may be subject to change without notice. This material has been prepared solely for informational purposes relating to our business as a physical energy provider. We are not providing advice regarding the value or advisability of trading in “commodity interests” as defined in the Commodity Exchange Act, 7 U. S. C. §§ 1 -25, et seq. , as amended (the “CEA”), including futures contracts, swaps or any other activity which would cause us or any of our affiliates to be considered a commodity trading advisor under the CEA. Constellation does not make and expressly disclaims, any express or implied guaranty, representation or warranty regarding any opinions or statements set forth herein. Constellation shall not be responsible for any reliance upon any information, opinions, or statements contained herein or for any omission or error of fact. All prices referenced herein are indicative and informational and do not connote the prices at which Constellation may be willing to transact, and the possible performance results of any product discussed herein are not necessarily indicative of future results. This material shall not be reproduced (in whole or in part) to any other person without the prior written approval of Constellation. 3 © 2018 Constellation Energy Resources, LLC. The offerings described herein are those of either Constellation New. Energy-Gas Division, LLC or Constellation New. Energy, Inc. , affiliates of each other and ultimate subsidiaries of Exelon Corporation. Brand names and product names are trademarks or service marks of their respective holders. All rights reserved. Errors and omissions excepted.