Exelon Corporation (NYSE: EXC) and Pepco Holdings Inc. (NYSE: POM) today filed an application (
click here for filing
) for approval by the Federal Energy Regulatory Commission (FERC) of the proposed transaction announced by the companies on April 30, 2014.
The combination of the companies brings together Exelon’s three electric and gas utilities – BGE, ComEd and PECO – and Pepco Holdings’ (PHI’s) three electric and gas utilities – Atlantic City Electric, Delmarva Power and Pepco – to create the leading Mid-Atlantic electric and gas utility.
The transaction does not raise any adverse competition issues, because PHI owns only a minimal amount of electricity generation. It also satisfies the other criteria used by FERC to evaluate whether a transaction is in the public interest, because it will have no adverse impact on customers’ rates and no impact on regulation by FERC or any state utility commission.
Because of the lack of competitive generation overlap, the companies have requested that FERC review the transaction and issue an order within 90 days.
In addition to their filing with FERC, Exelon and PHI will make other filings in support of their proposed combination.
The companies also will make transaction-related filings with the District of Columbia Public Service Commission, the Delaware Public Service Commission, the Maryland Public Service Commission, the New Jersey Board of Public Utilities and the Virginia State Corporation Commission. The transaction is also subject to the notification and reporting requirements under the Hart-Scott-Rodino Act and other customary closing conditions.
The transaction requires the approval of the stockholders of PHI. The companies anticipate closing in the second or third quarter of 2015.
About Exelon Corporation
Exelon Corporation (NYSE: EXC) is the nation’s leading competitive energy provider, with 2013 revenues of approximately $24.9 billion. Headquartered in Chicago, Exelon does business in 48 states, the District of Columbia and Canada. Exelon is one of the largest competitive U.S. power generators, with more than 35,000 megawatts of owned capacity comprising one of the nation’s cleanest and lowest-cost power generation fleets. The company’s Constellation business unit provides energy products and services to approximately 100,000 business and public sector customers and approximately 1 million residential customers. Exelon’s utilities deliver electricity and natural gas to more than 7.8 million customers in central Maryland (BGE), northern Illinois (ComEd) and southeastern Pennsylvania (PECO). Follow Exelon on Twitter @Exelon.