Exelon Corporation and Pepco Holdings completed their merger yesterday after receiving approval from the Public Service Commission of the District of Columbia. The merger brings together the two companies' six electric and gas utilities to create a major gas and electricity utility covering the USA's mid-Atlantic region.
Exelon and Pepco signed a definitive agreement to combine their two companies in an all-cash transaction on 30 April 2014 with the unanimous agreement of both companies' boards of directors. At the time, the companies anticipated closing the merger, which required approvals from the public service commissions of the different states involved as well as Pepco stockholders and the Federal Energy Regulatory Commission (FERC), in the second or third quarter of 2015.
The Public Service Commission of the District of Columbia, which had previously rejected the merger as not being in the public interest, yesterday voted in favour of it with modified terms and conditions that have been accepted by the companies. The FERC, the New Jersey Board of Public Utilities, the Delaware Public Service Commission, the Maryland Public Service Commission, and the Virginia State Corporation Commission had already given their approval to the merger.
The merger brings together Exelon utilities BGE, ComEd and PECO, and Pepco Holdings' utilities Atlantic City Electric, Delmarva Power and Pepco. Exelon's generating fleet includes 23 nuclear reactors.
Exelon CEO Chris Crane will retain his current position as president and CEO of Exelon, while David Velazquez has become president and CEO of Pepco Holdings.
Researched and written
by World Nuclear News