Diversified energy company
Public service Enterprise Group
said that along with
it has reached a comprehensive agreement with the Antitrust Division of the United States Department of Justice (DOJ), to settle regulatory antitrust concerns surrounding their proposed merger.
Under the terms of the DOJ agreement, Exelon will sell six fossil-fuel fired electric generating stations within 150 days of the merger's closure. The Department of Justice will have rights over the buyers of the six slated plants, which have a combined capacity of about 5,600 megawatts.
DOJ will not ask for any divestiture of nuclear capacity or nuclear plants, as the increased fossil divestiture will resolve all competition issues. The final decision on whether to proceed with the merger will rest with the boards of both Exelon and PSEG after the terms and conditions of regulatory requirements are known, the Newark, N.J.-based company said.
The company expects the closing in the third quarter upon completion of all required regulatory actions.
PSEG plants in Linden, Hamilton, Jersey City and Woodbridge, N.J., are to be sold, as are Exelon plants in Eddystone and Phoenixville, Pa.
The divestiture would be the largest required in an energy company merger, involving 26 generating units located at these six plants, the company said.
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