Exelon and Pepco Holdings merge
Written By: Stratton Report
March 23, 2016
On March 23, Exelon Corporation announced that it had merged with Pepco Holdings Inc. The announcement follows the approval of the merger by the DC Public Service Commission the same day.
The merger brings together Exelon’s three electric and gas utilities (BGE, ComEd and PECO) with Pepco Holdings’ three electric and gas utilities — Atlantic City Electric, Delmarva Power and Pepco.
Chris Crane, president and CEO of Exelon, commented:
“Today, we join together as one company to play a vital role as a leader in our industry and the mid-Atlantic region. We’ve made a number of commitments to customers in all of the Pepco Holdings utilities’ jurisdictions — the District, Maryland, Delaware and New Jersey — and we look forward to getting to work to deliver those benefits to our customers and communities.”
Joseph M. Rigby, previously chairman, president and CEO of Pepco Holdings, retired. David M. Velazquez, the new president and CEO of Pepco Holdings, noted: “In addition to firm reliability commitments, the merger provides benefits to our customers and continues and expands our role as a partner in the communities we serve. This new era will bring a new level of service excellence and economic and environmental benefits to our customers, while maintaining our leadership and partnerships in our local communities.”
Exelon will provide a package of direct benefits — including bill credits, reliability improvements and other investments — worth more than $430 million for customers and communities in Delaware, the District of Columbia, Maryland and New Jersey under the commitments made in those jurisdictions.
Atlantic City Electric, Delmarva Power and Pepco will remain as separate companies and retain their local headquarters in Mays Landing, N.J., Newark, Del., and Washington, D.C., respectively.
The transaction was approved by Pepco Holdings’ shareholders, and regulatory approvals have been issued by the Federal Energy Regulatory Commission, the New Jersey Board of Public Utilities, the Delaware Public Service Commission, the Maryland Public Service Commission, and the Virginia State Corporation Commission, in addition to the DC PSC.