D.C. Regulators Reject Pepco-Exelon Merger
26 August 2015 - 3:13AM
Dow Jones News
Utility regulators for the District of Columbia on Tuesday
rejected Exelon Corp.'s $6.8 billion bid to purchase Pepco Holdings
Inc., which would have created one massive power utility company
serving customers across several states.
Regulators in Delaware, Maryland, New Jersey and Virginia have
approved the deal, as has the Federal Energy Regulatory
Commission.
The Public Service Commission of the District of Columbia, where
Pepco is based, was the last regulatory body whose approval is
needed before the deal can be completed. The companies can appeal
the decision.
Exelon owns a large fleet of power plants and big utilities that
serve the Chicago, Philadelphia and Baltimore areas. Pepco operates
electric utilities in Maryland, Delaware, New Jersey and
Washington, D.C.
Shares of Exelon fell 3% to $31.60 in midmorning trade, while
shares of Pepco fell 19% to $21.90.
D.C. regulators made their decision public during a Tuesday
meeting. Commissioners said they didn't like the deal as it was
currently structured, adding the companies will have 30 days to ask
for the commission to reconsider its decision.
Spokesmen for Exelon and Pepco said the companies were in the
process of preparing a response to the decision.
Exelon will review the decision carefully once the commission
has produced a written order with details of the decision, said
Paul Elsberg, the Exelon spokesman.
The companies had hoped to complete their merger by September.
It was originally announced in April 2014.
Write to Cassandra Sweet at cassandra.sweet@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
August 25, 2015 12:58 ET (16:58 GMT)
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