Exelon Corporation (NYSE:EXC) and Constellation Energy (NYSE:CEG) today announced that the U.S. Nuclear Regulatory Commission (NRC) has issued a series of orders approving the indirect transfer of certain nuclear licenses associated with the Exelon and Constellation Energy merger.
NRC approval was required prior to merger closing due to the "upstream" change in ownership of Constellation Energy Nuclear Group (CENG)--the joint venture of Constellation and Electricite de France that owns the NRC-licensed nuclear units--that would result from the companies’ proposed merger.
CENG owns and operates five nuclear reactors at three locations: Calvert Cliffs in Lusby, Md., Nine Mile Point in Scriba, N.Y., and R.E. Ginna in Ontario, N.Y. Under the proposed merger, Exelon will acquire indirect control of Constellation’s 50.01 percent interest in CENG. CENG will continue to own and operate the nuclear units following the proposed merger.
“We are pleased that the NRC has approved the license transfer, which is a key step toward completing our merger,” said Exelon President and COO Christopher M. Crane. “The merger with Constellation is a major objective of Exelon’s growth strategy, and the NRC approval is an important milestone in the process.”
“With the NRC approval, we move ever closer to the consummation of this transaction,” said Constellation Energy Chairman and CEO Mayo A. Shattuck III.
The proposed transaction has been approved by shareholders of Exelon and Constellation. Required regulatory approvals or reviews have been completed by the New York Public Service Commission, the Public Utility Commission of Texas, and the Department of Justice. It also requires regulatory approvals by the Federal Energy Regulatory Commission and the Maryland Public Service Commission.
Exelon Corporation is one of the nation’s largest electric utilities with approximately $19 billion in annual revenues. The company has one of the industry’s largest portfolios of electricity generation capacity, with a nationwide reach and strong positions in the Midwest and Mid-Atlantic. Exelon distributes electricity to approximately 5.4 million customers in northern Illinois and southeastern Pennsylvania and natural gas to approximately 494,000 customers in the Philadelphia area. Exelon is headquartered in Chicago and trades on the NYSE under the ticker EXC.