CHICAGO and WASHINGTON, D.C. - Exelon Corporation (NYSE: EXC) and Pepco Holdings Inc. (NYSE: POM) today announced that the companies have completed their review of the Maryland Public Service Commission's order approving their merger and have committed to fulfill the modified, more stringent conditions and package of customer benefits imposed by the Commission.
"We are pleased that the Maryland Public Service Commission has found our proposed merger with Pepco Holdings Inc. to be in the public interest. In particular, we are heartened that in its order, the Commission recognized Exelon's proven track record and ability to maximize grid reliability improvements," said Chris Crane, Exelon president and CEO. "After a thorough review of the order, we have concluded that it is constructive, but the conditions it imposes - including those to which the companies already committed in our settlement - will also be challenging. It poses some stringent conditions that will be difficult to fulfill, but all of us at Exelon accept the challenge and commit to proving ourselves in an expanded role in Maryland."
Pepco Holdings Inc. Chairman, President and CEO Joseph M. Rigby said, "Together, Exelon and Pepco Holdings utilities will be able to provide better customer service and reliability in Maryland than Pepco and Delmarva Power could without the merger, in large part because of the ability to share best practices with three utilities that are already top performers: BGE, ComEd and PECO. We look forward to delivering on the commitments we've made and which the Commission has expanded: economic benefits, as well as increased reliability, energy efficiency and clean energy, as part of a long-term commitment to Maryland."
The Exelon-Pepco Holdings merger will bring 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 merger still requires approvals by the Public Service Commission of the District of Columbia and the Delaware Public Service Commission. On Feb. 13, Exelon reached a settlement agreement with staff of the Delaware Public Service Commission and other stakeholders, and the agreement is pending approval by the Commission. Following the expiration of the U.S. Department of Justice's review period on Dec. 22, 2014, the Hart-Scott-Rodino Act no longer precludes completion of the merger.
The transaction was approved by the New Jersey Board of Public Utilities in February, the Federal Energy Regulatory Commission in November, the Virginia State Corporation Commission in October and PHI stockholders in September. The companies expect to complete the merger in the second or third quarter of 2015.
For more information about the merger, visit www.phitomorrow.com. The Maryland Public Service Commission order approving the merger can be found at: www.psc.state.md.us as Order No. 86990 in Case 9361.