Exelon, Constellation Energy file with FERC for merger approval
The filing with FERC demonstrates the companies' strong commitment to ensuring that the merger will not cause market power or competitive concerns
Chicago and Baltimore, May 23, 2011 — Exelon Corp. and Constellation Energy filed an application for approval by the Federal Energy Regulatory Commission of the proposed merger announced by the companies on April 28.
The filing with FERC demonstrates the companies' strong commitment to ensuring that the merger will not cause market power or competitive concerns. In the filing, the companies commit that the combined company will, within 180 days after the closing of the transaction, enter into contracts to divest three Constellation Energy generating stations totaling 2,648 MW of generating capacity.
The facilities are located in the PJM market, which is the only market where there is a material overlap of generation owned by both companies. The companies would close on the plant divestitures no later than 30 days after the receipt of all regulatory approvals associated with them.
* Brandon Shores (Anne Arundel County, Md.) – 1,286 MW, primarily coal-fired
* H.A. Wagner (Anne Arundel County, Md.) – 963 MW, coal-, natural gas- and oil-fired
In addition, the combined company commits to sell 500 MW of baseload energy under contracts that will extend until 2015. The combined company has proposed to make these sales due to a short-term marketing agreement that gives Constellation an 85 percent share of the output of Constellation Energy Nuclear Group LLC units from 2012 through 2014.
Beginning in 2015, the share of the output is reduced to 50.01 percent, which reduces the amount of generation in PJM controlled by the combined company to levels below FERC limits.
By undertaking these actions, Exelon and Constellation believe they will eliminate any potential market power concerns and ensure that their combined ownership of generation capacity in all markets served by the companies will not negatively impact competition.
In addition to their filing with FERC, Exelon and Constellation have made other filings in support of their proposed merger, including with the Nuclear Regulatory Commission, the New York State Public Service Commission and the Public Utility Commission of Texas. The companies will also be filing with the Maryland Public Service Commission.
The companies plan to seek shareholder approval for the transaction in the third quarter of 2011.
The companies anticipate closing the merger in the first quarter of 2012.