Exelon Corporation and Pepco Holdings filed an application for approval by the Federal Energy Regulatory Commission (FERC) of the proposed merger announced by the companies on April 30. 2014.
Pepco owns Delmarva Power operations in Delaware and Maryland.
The combination of the companies brings together Exelon’s three electric and gas utilities – BGE, ComEd and PECO – and Pepco Holdings’ (PHI’s) three electric and gas utilities – Atlantic City Electric, Delmarva Power and Pepco. Exelon is based in Chicago.
The transaction does not raise any adverse competition issues, because PHI owns only a minimal amount of electricity generation, a release stated.
It also satisfies the other criteria used by FERC to evaluate whether a transaction is in the public interest, because it will have no adverse impact on customers’ rates and no impact on regulation by FERC or any state utility commission, the release continued. Because of the lack of competitive generation overlap, the companies have requested that FERC review the transaction and issue an order within 90 days.
In addition to their filing with FERC, Exelon and PHI will make other filings in support of their proposed combination.
The companies also will make filings with the District of Columbia Public Service Commission, the Delaware Public Service Commission, the Maryland Public Service Commission, the New Jersey Board of Public Utilities and the Virginia State Corporation Commission. The transaction is also subject other requirements that comes with such transactions.
The transaction requires the approval of the stockholders of PHI. The companies anticipate closing in the second or third quarter of 2015.
Exelon has 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.
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.
Delmarva Power also provides natural gas service in New Castle Countu. PHI also provides energy efficiency and renewable energy services through Pepco Energy Services.
