New Jersey utilities board OKs Exelon-Pepco merger

Commissioners from the New Jersey Board of Public Utilities (BPU) said on Wednesday that they have approved a merger between Exelon Corp. and Pepco Holdings.

The merger will bring together Exelon’s three electric and gas utilities -- BGE, ComEd and PECO -- and Pepco Holdings’ (PHI) three electric and gas utilities -- Atlantic City Electric (ACE), Delmarva Power and Pepco -- to create a  mid-Atlantic electric and gas utility powerhouse.

The companies announced the proposed merger last April and submitted their application last June.

“We are excited that the commissioners have approved our merger,” Chris Crane, Exelon's president and CEO, said. “We are appreciative of the time and dedication of the BPU staff and other stakeholders who worked collaboratively with us throughout this process to deliver a robust package of benefits for New Jersey.”

This “robust” merger package includes benefits, such as a $62 million Consumer Investment Fund; a five-year, $15 million energy savings program for ACE customers; commitments to protect union compensation and benefits packages; and commitments to improve ACE’s reliability requirements and infrastructure.

“Our combined company will bring significant value to New Jersey and to ACE customers, and we are thankful to the board for their approval,” Joseph Rigby -- PHI's chairman, president and CEO -- said.

Exelon operates three nuclear power plants, 12 fossil power plants, two landfill gas plants and one pumped storage hydroelectric power plant in New Jersey.