Pepco, Exelon close deal after getting final approval
Exelon Corp closed its $6.8 billion merger with Pepco Holdings Inc on Wednesday, shortly after receiving the final regulatory approval to create the largest U.S. power distributor, Exelon said. Pepco's shares rose 27 percent, or $5.69, to close at $26.93. Exelon ended 0.8 percent lower at $34.72. The three-member commission, which regulates power, gas and telecommunications in Washington, voted 2 to 1 for the merger after the companies agreed to concessions demanded by city leaders.
"We've made a number of commitments to customers in all of the Pepco Holdings utilities' jurisdictions - the District, Maryland, Delaware and New Jersey - and we look forward to getting to work to deliver those benefits to our customers and communities," Exelon Chief Executive Chris Crane said in a statement. Exelon struck deals worth $430 million with utility regulators in Delaware, Maryland, New Jersey and Washington, the company said in the statement. The merger announced in April 2014 was previously approved by the U.S. Federal Energy Regulatory Commission and other state utility commissions. The Washington D.C. Public Service Commission, which rejected the deal in August, agreed to reconsider after Exelon pledged to increase its proposed investment in the district to $78 million from $14m.