Constellation, a subsidiary of Exelon Corporation has completed its acquisition of Integrys Energy Services, a subsidiary of Integrys Energy Group, Inc.
Integrys Energy Services is a competitive retail electricity and natural gas subsidiary serving approximately 1.2 million commercial, industrial, public sector and residential customers across 22 Midwest, mid-Atlantic and Northeastern states and the District of Columbia.
Integrys Energy Services is now part of Constellation, strengthening its retail power and gas business, which together serve more than 2.5 million residential and business customers across the continental United States.Exelon will pay about US$60 million for the Integrys retail operations. Integrys Energy Services had adjusted working capital of about US$183 million as of May 31, 2014. The transaction does not include Integrys’ energy assets — primarily solar — which will remain a part of Integrys Energy Group, Inc.
Mark Huston, president of Constellation Retail stated:
“This combination creates a stronger, more diverse business that is well positioned to vie for customers in increasingly competitive retail electricity and gas markets across the country. The combined strengths of the two companies will allow Constellation to reach more customers and continue to grow the business, particularly in areas where Exelon already owns significant generation assets.”
Within the next 30 days, the combined company will begin transitioning Integrys to the Constellation brand. However, customers may see both Integrys and Constellation operating independently in the marketplace until the businesses are integrated. Customers of Integrys will experience no disruption to service as a result of the combination, and all existing customer contracts will be honored. This includes Integrys’ municipal electricity aggregation contract with the City of Chicago, which is currently scheduled to expire in May 2015.
The transaction was approved by the Federal Energy Regulatory Commission and the U.S. Department of Justice.