15 September 2006 — Public Service Enterprise Group Inc. (PSEG) and Exelon Corp. announced yesterday that Exelon has given PSEG formal notice of termination of the merger agreement announced December 20, 2004, and the companies have agreed to withdraw their application for merger approval, which has been pending before the New Jersey Board of Public Utilities (NJBPU) for more than 19 months.
The announcement followed a number of discussions with state officials and other interested parties that made clear that gaps separating the parties’ respective settlement positions are insurmountable. Major differences included, among other things, issues relating to rate concessions and market power mitigation.
“We are very disappointed that the merger cannot be completed,” said John W. Rowe, Exelon’s chairman, president and CEO. “We wish PSEG and its team all the best. It is a truly first-class organization, and it was a pleasure teaming up with them on a merger that made so much sense.”
“We have spent a lot of time and effort on this transaction because of the value it would have created for the companies and their customers,” said E. James Ferland, chairman, president and CEO of PSEG. “We are equally disappointed but remain committed to continuing our tradition of providing exceptional service to our customers in New Jersey,” Ferland continued. “We appreciate the goodwill, professionalism, and efforts of the Exelon team.”