Boston, MA 06/20/2014 (wallstreetpr) – Exelon Corporation (NYSE:EXC) and Pepco Holdings, Inc. (NYSE:POM) have filed applications seeking approval for their proposed merger with the Delaware Public Service Commission and the District of Columbia Public Service Commission. The companies had announced their merger on April 30.
Regulatory Approval Process
The merger of the two companies is set to bring Exelon’s three electric and gas utilities BGE, ComEd and PECO together with Pepco three electric and gas utilities to create a leading mid-Atlantic electric and gas utility. The filings have already described the benefits of the merger to customers and communities in which the companies will operate from. Submission of the fillings has initiated the regulatory approval process in Delaware.
The recent filling highlights how the merged entity plans to serve the public interest. The company has also reiterated its commitment to working with PHI partners with a view of achieving enhanced reliability for PHI customers.
Benefits to PHI Utility Customers
Upon closure of the merger, Exelon Corporation (NYSE:EXC) will donate $100 million to be used for customer benefits such as bill credits, assistance for low income customers and energy efficient measures. The company has also committed a further $50 million to charitable organizations and programs for 10 years. Exelon has also proposed a number of measures designed to insulate PHI utilities from financial and credit risks from other businesses.
Exelon Corporation (NYSE:EXC) has also committed to no job losses, as a result, of the merger for at least two years upon approval of the merger. The company has also committed to building on the significant improvement to service reliability. The proposed merger commitments are expected to result in increased economic benefits for customers and communities. A total of between 11000 and 14000 new jobs stand to be created by the proposed merger with between $1 billion and $1.3 billion in benefits to economies of Delaware, Maryland and Washington D.C.
