CHICAGO AND BALTIMORE - The New York State Public Service Commission (PSC) today issued a declaratory ruling that it does not need to review further the merger of Exelon Corporation (NYSE: EXC) and Constellation Energy (NYSE: CEG). The companies submitted their joint application to the New York State PSC on May 17, 2011.
"It is a positive step that the New York State PSC does not require further review of our application, because it means they have cleared us to proceed," said Exelon President and COO Christopher M. Crane. "This is another milestone toward completing our merger, and we continue to be on track to close the transaction in the first quarter of 2012."
"This merger will create the number one competitive energy provider with one of the industry's cleanest and lowest-cost power generation fleets, along with one of the largest customer bases nationally," said Constellation Chairman and CEO Mayo A. Shattuck III. "The New York State PSC's decision demonstrates additional progress in our efforts to finalize the merger early next year."
Constellation is a co-owner of the Nine Mile Point and Robert E. Ginna nuclear power plants in New York and markets power and gas in the state. Exelon has no operations in New York State.
The ruling follows Exelon, Constellation and Baltimore Gas and Electric Company's announcement earlier today that they have reached a merger settlement with the State of Maryland, the Maryland Energy Administration (MEA), the City of Baltimore and the Baltimore Building and Construction Trades Council. The settlement includes a significantly expanded package of benefits totaling more than $1 billion and expected to create more than 6,000 jobs in Maryland.
Shareholders of both Exelon and Constellation overwhelmingly approved the merger on Nov. 17, and the Public Utility Commission of Texas approved it on Aug. 3. The Maryland Public Service Commission is the only remaining state approval required. The merger also requires regulatory approvals by the Federal Energy Regulatory Commission, Nuclear Regulatory Commission and Department of Justice.
The Exelon-Constellation merger will combine Exelon's environmentally advantaged generation fleet with Constellation Energy's industry-leading customer-facing businesses. The companies announced their intent to merge on April 28.
A copy of Exelon and Constellation's filing with the New York State PSC is available at: http://documents.dps.state.ny.us/public/MatterManagement/CaseMaster.aspx?MatterSeq=37029.