Gas, New Projects

Exelon, PHI reach agreement with New Jersey Board of Public Utilities on proposed merger

Exelon Corp. (NYSE:EXC) and Pepco Holdings Inc. (NYSE: POM) have reached a settlement with the New Jersey Board of Public Utilities (BPU) to review the two companies’ proposed merger, which was announced on April 30, 2014.

The settlement was signed by Exelon and Pepco Holdings, Atlantic City Electric (ACE), BPU staff and the Independent Energy Producers of New Jersey. The merger will combine Exelon’s three electric and gas utilities – Baltimore Gas and Electric, ComEd and PECO – and Pepco Holdings’ three electric and gas utilities – ACE, Delmarva Power and Pepco.

“We are pleased to have reached a settlement in New Jersey for our merger,” said Chris Crane, Exelon president and chief executive officer. “Our combined company will bring significant value to New Jersey and to ACE customers.”

The transaction was approved by the Federal Energy Regulatory Commission (FERC) in November, the Virginia State Corporation Commission in October and PHI stockholders in September.

The settlement is subject to the approval of the Commissioners of the BPU. The merger is expected to be finalized in the second or third quarter of 2015.