BPU approves Exelon, Pepco merger to form mid-Atlantic electric and gas utility

Listen to this article

The New Jersey Board of Public Utilities commissioners on Wednesday approved the merger between Pepco Holdings Inc. and Chicago-based Exelon Corp.According to a news release, the two companies announced their plans for the merger on April 30, 2014, and submitted an application to merge to the BPU on June 18, 2014.

The merger will fuse together Washington, D.C.-based Pepco’s three electric and gas utilities — Atlantic City Electric, Delmarva Power and Pepco — and Exelon’s three electric and gas utilities — BGE, ComEd and PECO.

“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 M. Rigby, PHI chairman, CEO and president.

“We are excited that the commissioners have approved our merger,” Chris Crane, Exelon CEO and president, said in a prepared statement. “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.”

The benefits to New Jersey include:

•    A $62 million Customer Investment Fund to be used for direct rate credits to ACE customers within 60 days of the merger closing;
•    An energy-efficient program that would provide $15 million in energy savings over five years;
•    Promise to hire 60 union employees and keep ACE’s Keep operational headquarters in Mays Landing;
•    Charitable contributions equal to ACE’s $709,000 annual giving for 10 years.

ALSO ON NJBIZ:

Look beyond the dollar sign when considering the best-paying jobs for women

Venture buys last buildable Giralda Farms land as Madison strives to encourage redevelopment

Pinnacle joins with Hampshire in developing new Montclair hotel