Wednesday, May 25, 2011

Constellation and Exelon Seek PSC Approval For Their Merger

Constellation Energy Group filed an application with Maryland’s Public Service Commission Wednesday seeking approval for its $7.9 billion sale to Chicago-based Exelon Corporation.  The merger would create the largest power supplier in the United States.

In a statement, the companies said the deal would mean a direct investment in the state of more than $250 million — including a $100 rate credit for each BGE residential customer. That benefit includes the creation of nearly 900 jobs “directly related to projects associated with the merger, such as the development of a new or renovated headquarters building for the new company’s energy marketing and renewable development businesses, as well as the development of new renewable energy projects,” the statement said.

The combined company would be called Exelon and would be headquartered in Chicago. But the Constellation name would live on in the new company’s power marketing and retail and wholesale businesses, which would be headquartered in Baltimore. The companies’ renewable energy businesses would also be consolidated and be based in Baltimore.

The companies have already sought approval from the Federal Energy Regulatory Commission, the Nuclear Regulatory Commission, the New York State Public Service Commission and the Public Utility Commission of Texas. Shareholders of both companies also must approve the deal. (The Daily Record, 5/25/2011)

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