NEW YORK (TheStreet) -- Shares of Pepco (POM) were gaining 7.8% to $26.74 on heavy trading volume Friday after the Maryland Public Service Commission conditionally approved Exelon's (EXC) takeover of the electric utility company.
Shares of Exelon were gaining 2.9% to $34.51.
The acquisition was previously approved by regulators in New Jersey, Virginia, and the Federal Energy Regulatory Commission, according to the Wall Street Journal. The two companies still need to gain the approval of regulators in Washington, D.C. for the deal to go through.
"We are pleased that the Maryland Public Service Commission has approved our merger," Pepco and Exleon said in a statement. "However, the Commission's order modifies a number of the proposed conditions and we must carefully review it in its entirety."
The companies continued, "Our proposal delivers significant economic benefits to Maryland customers, increases reliability, promotes energy efficiency and advances clean energy as part of a long-term commitment to improve service and modernize our grid. We will have more to say once we have time to study the order."
About 7.2 million shares of Pepco were traded by 3:06 p.m. Friday, above the company's average trading volume of about 1.5 million shares a day.
TheStreet Ratings team rates PEPCO HOLDINGS INC as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:
"We rate PEPCO HOLDINGS INC (POM) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. Among the primary strengths of the company is its revenue growth. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself."