FERC approves Exelon acquisition of Constellation Energy

WASHINGTON 3/14/12 (PennWell) — The Federal Energy Regulatory Commission has approved the acquisition of Maryland-based power generator Constellation Energy Group Inc. by Illinois-based utility Exelon Corp. in a $7.9 billion stock swap.

The electric companies announced plans to merge in early 2011.

“FERC’s approval is the final regulatory requirement to completing the transaction,” Exelon President Christopher Crane said. “We look forward to combining our operations and becoming one company,” an event set for March 12.

FERC ruled March 9 that the merger, with proposed mitigation and conditions, would not harm competition in relevant markets. The companies pledged to divest three Constellation generating stations in Maryland totaling 2,648 MW. They also agreed to sell 500 MW of baseload energy under contracts that will extend until 2015.

Upon completion of the merger, Constellation shareholders are to receive .93 share of Exelon common stock for every share of Constellation stock they owned. The new company will be called Exelon and will be based in Exelon’s current Chicago headquarters.

The deal creates a power generator and distributor serving 38 of the country’s 50 states, as well as two Canadian provinces, with more than half of its 34,000 MW coming from nuclear power.

Exelon’s generation portfolio includes the nation’s largest nuclear fleet as well as fossil, hydroelectric, and other renewables facilities. Its hydro projects include 574.54-MW Conowingo (No. 405) on the Susquehanna River in Maryland, and the 880-MW Muddy Run Pumped-Storage project (No. 2355) in Pennsylvania.

Constellation’s 12,000-MW portfolio includes about 1,000 MW of renewables generation owned or under contract, including utility-scale hydropower, solar, wind, and biomass power plants. Constellation owns interests in the 380.39-MW Safe Harbor hydroelectric project (No. 10215) on the Susquehanna River in Pennsylvania and the 29.9-MW Muck Valley hydro plant (No. 8296) on California’s Pit River.

Exelon subsidiaries include Commonwealth Edison Co., PECO Energy Co., and Exelon Ventures Co. LLC and its subsidiary Exelon Generation Co. LLC. Constellation’s holdings include Baltimore Gas & Electric, Constellation Power Source Generation Inc., Constellation Energy Nuclear Group LLC, and other energy companies.

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