Exelon Corporation and Pepco Holdings Inc. have filed an application seeking approval of their proposed merger with the Maryland Public Service Commission.
The combination of the companies will bring 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 – to create the leading mid-Atlantic electric and gas utility.
The Maryland filing describes Exelon’s commitment to significantly improve reliability, maintain charitable contributions at higher than 2013 levels for at least 10 years following closing of the merger and provide immediate economic benefits to Pepco and Delmarva Power customers in Maryland. Pepco serves approximately 537,000 customers in Montgomery and Prince George’s counties; and Delmarva Power serves approximately 231,000 customers on Maryland’s Eastern Shore. Submission of the filings initiates the regulatory approval process in Maryland.
Chris Crane, Exelon president and CEO, stated:
The filing we are making today describes in detail how our proposed merger will benefit Maryland’s economy and the customers served by Pepco and Delmarva Power. The commitments we are making will deliver immediate economic benefits to customers and Maryland, and will ensure that Pepco and Delmarva Power continue their long history of investing in their communities.
Joseph M. Rigby, PHI chairman, president and CEO, commented:
The combination of our companies will provide us an opportunity to take the customer service and reliability improvements we’ve already made in Maryland to an even greater level," said Rigby. “I’m very pleased that Exelon is committed to maintaining and enhancing service, meeting customers’ needs reliably and efficiently, and actively engaging in civic and charitable life in the Maryland communities we serve.
These proposed merger commitments are anticipated to result in substantial economic benefits for Maryland customers and communities, as detailed in an economic modeling analysis included in the merger approval filings.
The companies have already made transaction-related filings with the Federal Energy Regulatory Commission, the Virginia State Corporation Commission, the Delaware Public Service Commission, the Public Service Commission of the District of Columbia and the New Jersey Board of Public Utilities. 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, which is scheduled to take place on Sept. 23, 2014. The companies anticipate completing the merger in the second or third quarter of 2015.