A subsidiary of Exelon Corp. is buying FirstEnergy’s retail power business for $140 million in cash, according to reports.
FirstEnergy Solutions Corp. has agreed to sell its retail and wholesale load-serving business to Constellation, which is the retail supplier wing of Chicago-based utility giant Exelon. The deal includes FirstEnergy Solutions’ 900,000 residential and commercial and industrial customers in six states, primarily Ohio and Pennsylvania.
The line of business serves about 41 tWh of electricity load, according to the release. The deal is expected to close in the fourth quarter.
Baltimore-based Constellation currently has about two million residential, public sector and business customers. It handles the retail power, natural gas and energy services area for Exelon, which also holds regulated utilities from Chicago to the east coast.
“This agreement would provide an opportunity to grow our retail business in strategically attractive markets where we’re best suited to match load served with Exelon generation assets,” Mark Huston, president of Constellation’s national retail business, said in a statement. “FirstEnergy Solutions has a reputation for delivering value to customers, and our combined business would continue that tradition with a broad array of energy products and services at competitive prices.”
FirstEnergy Solutions, its subsidiaries and FirstEnergy’s Nuclear Operating Company all filed for Chapter 11 bankruptcy reorganization on March 31. The sale to Constellation would be under a court-supervised bankruptcy auction process and needs regulatory approval, too.
Akron, Ohio-based FirstEnergy Solutions was formed by the parent company in 1997. It is an unregulated affiliate of other subsidiaries Ohio Edison, Toledo Edison, The Illuminating Company, Penelec, Penn Power, Jersey Central Power & Light, Mon Power and Potomac Edison.