Exelon, Pepco file with FERC to combine businesses
The combination of the companies brings together Exelon’s three electric and gas utilities — BGE, ComEd and PECO — and Pepco Holdings’ three electric and gas utilities — Atlantic City Electric, Delmarva Power and Pepco
Exelon Corp. and Pepco Holdings Inc. filed an application for approval by the Federal Energy Regulatory Commission (FERC) of the proposed transaction announced by the companies on April 30, 2014.
The combination of the companies brings together Exelon’s three electric and gas utilities — BGE, ComEd and PECO — and Pepco Holdings’ three electric and gas utilities — Atlantic City Electric, Delmarva Power and Pepco — to create the leading Mid-Atlantic electric and gas utility.
The transaction does not raise any adverse competition issues, because PHI owns only a minimal amount of electricity generation. 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.
Because of the lack of competitive power 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 transaction-related 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 to the notification and reporting requirements under the Hart-Scott-Rodino Act and other customary closing conditions.
The transaction requires the approval of the stockholders of PHI. The companies anticipate closing in the second or third quarter of 2015.