Exelon and Pepco agree to Maryland's merger conditions (US)

US power utility Exelon has agreed to 46 conditions requested by the state of Maryland (United States) to approve Exelon's merger with Pepco, clearing one of the last hurdle to the US$6.8bn merger. Among the conditions to be fulfilled, Exelon will have to invest US$43m for energy efficiency programmes and will have to establish a US$20m Green Sustainability Fund.

In April 2014, Exelon and Pepco filed applications seeking approval of their proposed merger with the Delaware Public Service Commission, the Public Service Commission of the District of Columbia and the New Jersey Board of Public Utilities (United States). The transaction has already won approval from the US FERC, New Jersey and Virginia.

The combination of the companies will bring together Exelon’s three electric and gas utilities – BGE, ComEd and PECO – and Pepco Holdings’ (PHI’s) three electric and gas utilities – Atlantic City Electric, Delmarva Power and Pepco – to create the leading mid-Atlantic electric and gas utility.

Active in 48 US States, Exelon is one of the largest competitive U.S. power generators, with more than 35,000 MW of owned capacity. The company’s Constellation business unit provides energy products and services to approximately 100,000 business and public sector customers and approximately 1 million residential customers. Exelon’s utilities deliver electricity and natural gas to more than 7.8 million customers in central Maryland (BGE), northern Illinois (ComEd) and southeastern Pennsylvania (PECO). Pepco is one of the largest energy delivery companies in the Mid-Atlantic region, serving about 2 million customers in Delaware, the District of Columbia, Maryland and New Jersey. PHI subsidiaries Pepco, Delmarva Power and Atlantic City Electric provide regulated electricity service; Delmarva Power also provides natural gas service.