NEW YORK - Exelon yesterday received the 2012 Platts Global Energy Award in the "Strategic Deal" category for the successful merger of Exelon and Constellation. The award recognizes the success of a new energy project, asset buyout, or full company merger or acquisition in a time of uncertain markets and global interdependence.
"Exelon's merger with Constellation began a new era for the company by combining one of the cleanest and lowest-cost power generation fleets with one of the largest retail and wholesale customer bases in the United States," said Christopher M. Crane, president and CEO of Exelon. "It is gratifying to have industry experts from around the world recognize the value and strategic vision of the transaction."
Completed in March 2012, the $7.9 billion merger of Exelon and Constellation formed the largest U.S. competitive energy provider, with operations in 47 states, the District of Columbia and Canada. It also brought together under one organization three leading electric and gas utilities - BGE, ComEd and PECO - which serve central Maryland (including Baltimore), northern Illinois (including Chicago) and southeastern Pennsylvania (including Philadelphia), respectively.
The merger strategy paired Exelon's large, environmentally advantaged generation fleet with Constellation's industry-leading customer-facing businesses. It matched 242 terawatt-hours of expected generation with 164 terawatt-hours of expected load in key markets to maximize value for customers and shareholders. The merger was built upon the legacy companies' shared philosophy that electricity competition is key to driving innovation, choice and savings for customers.
The new Exelon is well positioned to realize the merger's value. Although the combination was driven primarily by strategic fit, Exelon expects to achieve $550 million in run-rate O&M synergies and $75 million in capex synergies by 2014.
"Congratulations to this year's Global Energy Award winners for their outstanding accomplishments and contributions in the global energy industry," said Larry Neal, president of Platts.
Nominees for the Strategic Deal award are evaluated in the areas of strategic vision, leadership, scope, challenges, and financial and non-financial results. Winners are selected by an impartial panel of international energy experts that includes past and present heads of energy companies, energy ministers, national regulators, academics and legislators.