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Dec. 18, 2015, 10:54 AM
- The proposed merger of Pepco (POM -1.1%) and Exelon (EXC -0.8%) faces a new hurdle, as the General Services Administration is urging D.C. regulators to reject the deal unless changes are made that would provide more help for U.S. taxpayers.
- The agency that pays the U.S. government’s electric bills and is the largest consumer of energy in the capital says the merger unfairly subsidizes the rates of residential customers at the expense of federal taxpayers.
- GSA officials had said the merger evaluation period is not the time for the agency to make a stand on fighting disproportionate rates for commercial customers, but the new decision is a reversal in tactics, saying that commercial ratepayers should be compensated for the merger to go through.
Oct. 28, 2015, 12:18 PM
- Pepco Holdings (POM +2.9%) spikes higher as Exelon (EXC +0.9%) wins consideration from the D.C. Public Service Commission for a revised merger, according to the Washington Post.
- The PSC votes unanimously to consider a settlement that D.C. Mayor Bowser reached earlier this month with EXC that included $78M in benefits, including ratepayer assistance, solar energy subsidies and job guarantees.
- The vote allows EXC to add to its current application instead of starting all over again; EXC has feared a reapplication could have dragged on for months, adding to the expense and endangering the deal.
Oct. 19, 2015, 12:37 PM
- The fight over the settlement agreement between Exelon (EXC -1.3%) and D.C. Public Service Commission over its $6.8B acquisition of Pepco Holdings (POM -0.2%) looks likely to stretch into next year, as EXC proposes a settlement review process and the General Services Administration is calling for a full review of the settlement.
- In a filing Friday, EXC suggested that supporting testimony be filed by Oct. 30 with all stakeholder testimony filed by Nov. 20, and then proposed a schedule that would conclude all hearings, replies and briefs by Dec. 23; the PSC then would consider and decide on the settlement, which could put the process into 2016.
- Meanwhile, the GSA filed a motion asking the PSC for a full review of the settlement agreement; the GSA has not said it is opposed to the merger but thinks enough issues have been raised about the deal for a full review.
Oct. 6, 2015, 4:44 PM
- Washington D.C. Mayor Bowser announces her support for a settlement of Exelon's (NYSE:EXC) $6.4B takeover of Pepco (NYSE:POM), the city’s electric utility, that will boost EXC's investment in the city to $78M from $14M.
- The mayor initially opposed the merger, which was turned down by D.C.'s Public Service Commission in a unanimous decision Aug. 25, and her endorsement is considered critical in an appeal before the PSC, whose next meeting is scheduled for tomorrow.
- The move would be a final hurdle to a merger that already won approval from regulators in several states and the U.S. government.
- POM jumped 3.1% into the close on word of the pending announcement.
Oct. 5, 2015, 9:45 AM
- Exelon (EXC +1.9%) is on the verge of a tentative agreement with the mayor of Washington, D.C., on its $6.8B proposal to buy Pepco (POM +1.3%), Bloomberg reported over the weekend.
- The draft agreement is said to include more customer credits than EXC and POM initially proposed, and would require EXC to establish a second headquarters in D.C., where POM already is based.
- An agreement with the mayor’s office would mark a step forward in EXC’s attempt to resurrect its bid for POM after the D.C. Public Service Commission rejected the deal in August, saying the terms would not benefit customers.
- Earlier: Pepco, Exelon ask D.C. regulator to reconsider merger rejection (Sep. 28)
Sep. 28, 2015, 5:58 PM
- Pepco (NYSE:POM) and Exelon (NYSE:EXC) disclose they have filed an application with the D.C. Public Service Commission requesting reconsideration of the order denying the companies' pending merger.
- Also, D.C. Mayor Bowser says the companies are negotiating a settlement with her administration that would address regulators' concerns about affordability, reliability and sustainability.
- The commission has up to 30 days, subject to extension, to issue its decision on the application.
- POM +3.8% AH.
Sep. 18, 2015, 12:46 PM
- Exelon (EXC -0.9%) and Pepco (POM -0.6%) reaffirm they will continue to pursue their merger, as both opponents and supporters of the proposed $6.4B deal say the fight is not over even after the D.C. Public Service Commission rejected the merger last month.
- An intense round of final lobbying targeting D.C. mayor Muriel Bowser spilled into public view yesterday, as speculation grows over whether a new round of concessions from the energy companies might allow the mayor to support the merger.
- Industry watchers say if Bowser, who controls future appointments to the PSC, throws her support behind a new deal, it would make it hard for the regulators to reject it and increase the likelihood that the companies prevail in court.
- The companies have secured support from federal regulators as well as the states of Maryland, Delaware and New Jersey.
Aug. 25, 2015, 11:49 AM
- Pepco (POM -17.9%) plunges after the District of Columbia Public Service Commission votes against its merger with Exelon (EXC -3.4%), saying the combination is not in the public interest and that the companies failed to prove beneficial to customers.
- The D.C. commission was the final approval needs to complete the proposed $6.4B merger, announced in April 2014.
Jul. 29, 2015, 3:27 PM
- Exelon (EXC +0.5%) is higher after reporting Q2 earnings and revenues that were improved from a year ago and surpassed analyst estimates.
- EXC recorded a $143M hedging-related gain in the quarter, after taking an $8M hedging-related hit in last year's Q2, the gain added $0.16 to EPS, whereas hedging activity shaved a penny off the prior-year period’s result.
- Weather was mostly a negative factor in Q2, especially in the ComEd segment, which services nearly 4M customers in Illinois and is EXC’s largest, as profit fell 11% Y/Y to $99M.
- Q2 profit at the company’s PECO segment, which provides electricity and natural gas to ~2.1M customers in southeastern Pennsylvania, fell 17%.
- EXC also says it and Pepco Holdings have extended the termination date for EXC's proposed $6.8B takeover to Oct. 29 from July 29; the merger still needs approval from the Public Service Commission of the District of Columbia.
May 15, 2015, 2:12 PM
- Exelon (EXC +3.3%) and Pepco Holdings (POM +8.7%) spike higher on news that Maryland's Public Service Commission conditionally approves their $6.9B merger by a 3-2 vote.
- The regulator imposed 46 conditions on the deal, including higher reliability standards, a $100 rate credit for Delmarva and Pepco residential customers and $43M for energy efficiency programs in Prince George's and Montgomery Counties and the Delmarva Maryland service area.
- The merger, which still needs approval by federal regulators, would make EXC one of the largest U.S. utility companies and has sparked fierce opposition.
Mar. 4, 2015, 9:52 AM
- Exelon (EXC -0.3%) and Pepco (POM +0.2%) agree to more than double the value of a fund to benefit customers in Maryland, as EXC seeks approval from the state's regulators for its planned $6.8B acquisition of POM.
- Under the plan, EXC raises the level of the customer investment fund to $94.4M from $40M, which state regulators could earmark for benefits such as rate credits, energy efficiency or low income customer assistance.
- The plan also includes an increased commitment to reduce the length and frequency of power outages in the state, as well as non-compliance payments if reliability performance targets during 2018-20 are missed.
Feb. 11, 2015, 2:55 PM
- Exelon (EXC -1.1%) says the New Jersey Board of Public Utilities Commissioners has given final approval of its $6.8B merger with Pepco Holdings (NYSE:POM).
- The agreement brings together EXC and its three electric and gas utility companies - Baltimore Gas and Electric, ComEd and PECO - with Pepco's three utilities - Atlantic City Electric, Delmarva Power and Pepco.
- Approvals are still required from public service commissions in Delaware, Maryland and D.C.
Jan. 14, 2015, 5:56 PM
- The settlement, which still requires the approval of the BPU's commissioners, would provide $62M in bill credits for Atlantic City Electric customers, an energy efficiency program, and commitments to improve the utility's reliability performance.
- The proposed merger requires approvals of regulators in Delaware, Maryland and D.C.; the FERC and Virginia regulators already have approved it.
Oct. 8, 2014, 4:57 PM
- Pepco (NYSE:POM) is one step closer to its $6.8B merger with Exelon (NYSE:EXC) after winning approval from the Virginia State Corporation Commission.
- The deal required approval by state regulators because Pepco and Delmarva Power utilities previously served distribution customers in Virginia and still own a small amount of transmission infrastructure in the state.
- The proposed merger still needs approval from the FERC and state regulators in Delaware, Maryland, New Jersey and D.C.
Jul. 30, 2014, 9:19 AM
- Exelon (NYSE:EXC) agrees to acquire the retail electricity arm of Integrys Energy (NYSE:TEG) for $60M, in an attempt to grow its competitive retail energy supply business.
- Integrys Energy Services, which supplies electricity for 720K Chicago residents, will become part of EXC's Constellation business unit, which would now serve ~2.5M residential and business customers across the U.S.
- In addition to the $60M, EXC will pay adjusted net working capital at the time of closing; Integrys Energy Services had adjusted working capital of ~$183M as of May 31.
- The transaction does not include TEG's energy assets, which are primarily solar.
Apr. 30, 2014, 2:20 PM
- Exelon's (EXC -4.1%) $6.8B purchase of Pepco (POM +17.3%) helps it overtake Duke Energy (DUK) as the biggest U.S. power distribution company, but investors and analysts aren't enamored with the deal.
- Wells Fargo's Neil Kalton question EXC's wisdom in increasing the company's regulated exposure at a time when power markets appear to be recovering.
- EXC is effectively reducing its relative exposure to wholesale generation, whose share of profits will dip to 35%-40% as a result of taking on POM's regulated assets, and it's paying 22x 2014 estimated earnings to do so, WSJ's Liam Denning calculates.
- Oh, by the way: The deal "smells bad," FMHR trader Jon Najarian says on CNBC, pointing to unusual options activity ahead of the announcement.
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