Feb. 11, 2015
CHICAGO & WASHINGTON–(BUSINESS WIRE)–The New Jersey Board of Public Utilities (BPU) Commissioners today approved the merger between Exelon Corporation (NYSE: EXC) and Pepco Holdings Inc. (NYSE: POM). The companies announced their proposed merger on April 30, 2014 and submitted their application to merge to the BPU on June 18, 2014.
The merger will bring together Exelon’s three electric and gas utilities – BGE, ComEd and PECO – and Pepco Holdings’ (PHI) three electric and gas utilities – Atlantic City Electric (ACE), Delmarva Power and Pepco – to create the leading mid-Atlantic electric and gas utility.
“We are excited that the Commissioners have approved our merger,” said Chris Crane, Exelon president and CEO. “We are appreciative of the time and dedication of the BPU staff and other stakeholders who worked collaboratively with us throughout this process to deliver a robust package of benefits for New Jersey.”
“Our combined company will bring significant value to New Jersey and to ACE customers, and we are thankful to the Board for their approval,” said Joseph M. Rigby, PHI chairman, president and CEO.
In an order today the BPU commissioners approved a January 14, 2015, settlement agreement, signed by Exelon, PHI, ACE, BPU staff, and the Independent Energy Producers of New Jersey. The merger will deliver a robust package of benefits to ACE customers and New Jersey, such as:
- A $62 million Customer Investment Fund to be used for direct rate credits to ACE customers within 60 days of merger closing;
- A program to provide $15 million in energy-efficiency savings to ACE customers over five years;
- Commitments to improve ACE’s reliability performance to levels that exceed current BPU requirements for frequency and duration of outages, and to continued infrastructure investment;
- Commitments to hire 60 union employees and to protect compensation and benefits for current employees;
- Maintaining ACE’s local operational headquarters in Mays Landing, N.J.;
- Providing an annual average of charitable contributions and local community support that is equal to ACE’s 2013 level of at least $709,000 for 10 years after merger closing.
The two companies’ merger was previously approved by the Federal Energy Regulatory Commission in November, the Virginia State Corporation Commission in October and the PHI stockholders in September. The merger also requires approvals by the Delaware Public Service Commission, Public Service Commission of the District of Columbia and Maryland Public Service Commission. Following the expiration of the U.S. Department of Justice’s review period on Dec. 22, 2014, the Hart-Scott-Rodino Act no longer precludes completion of the merger. For more information about the merger or to download the settlement agreement, visit www.phitomorrow.com.
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 more than 2.5 million residential, public sector and business customers, including more than two-thirds of the Fortune 100. 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.
About Pepco Holdings Inc.
Pepco Holdings Inc. is one of the largest energy delivery companies in the Mid-Atlantic region, serving about 2 million customers in Delaware, the District of Columbia, Maryland and New Jersey. PHI subsidiaries Pepco, Delmarva Power and Atlantic City Electric provide regulated electricity service; Delmarva Power also provides natural gas service. PHI also provides energy efficiency and renewable energy services through Pepco Energy Services. For more information, visit online: www.pepcoholdings.com.