Exelon Corporation and Pepco Holdings Inc. announce they have reached a settlement in the proceeding before the New Jersey Board of Public Utilities (BPU) to review the two companies’ proposed merger, which was announced on April 30, 2014. The settlement, which is subject to the approval of the Commissioners of the BPU, was signed and filed by Exelon and Pepco Holdings, Atlantic City Electric (ACE), BPU staff and the Independent Energy Producers of New Jersey.
The merger will bring together Exelon’s three electric and gas utilities – BGE, ComEd and PECO – and Pepco Holdings’ three electric and gas utilities – ACE, Delmarva Power and Pepco – to create the leading mid-Atlantic electric and gas utility.
“We are pleased to have reached a settlement in New Jersey for our merger,” said Chris Crane, Exelon president and CEO. “Our combined company will bring significant value to New Jersey and to ACE customers.”
“This agreement is good for New Jersey,” said Joseph M. Rigby, PHI chairman, president and CEO. “By joining the Exelon family of utilities, ACE will be able to deliver substantial benefits to its customers and communities.”
The settlement includes many provisions that will ensure the merger benefits ACE customers and New Jersey, such as:
In addition to the New Jersey BPU, the merger 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. Exelon and PHI will continue to work cooperatively with the DOJ until it advises them that it has concluded its evaluation of the merger.
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