EIA: Exelon-Pepco could create largest utility holding company

The U.S. Energy Information Administration (EIA) reported that, if the proposed merger between Exelon Corp. and Pepco Holdings Inc. were approved, it would create the largest electric utility holding company by customers, the group announced Wednesday.

EIA reports a combined 8.5 million customers that would be served by the combined company. The merger was initiated by Exelon offering to purchase Pepco for $6.8 billion in April of 2014. Reasons that were cited in pursuing this merger were similarities in their business models, their cost reduction capabilities and their geographic proximity to each other.

Pepco Holdings is considered to be an investor-owned utility (IOUs) and according to the EIA they primarily serve areas that fall under state or federal regulatory oversight. The merger has been approved by the Federal Energy Regulatory Commission and public utility commissions in New Jersey, Delaware, Virginia and Maryland. The Public Service Commission of the District of Columbia initially rejected the merger near the end of August. They have since reached a settlement with the two companies, but the commission’s approval has yet to be granted.

Exelon currently serves 6.7 million customers, and Pepco serves approximately 1.9 million. Their combined numbers are followed by Duke Energy, which is currently the leading company in customer count.