Merger creates USA’s biggest utility

Exelon and Public Service Enterprise Group announced today that they have entered into a definitive merger agreement to create Exelon Electric & Gas, the USA’s largest utility.

Exelon Corporation and Public Service Enterprise Group (PSEG) announced today that they have entered into a definitive merger agreement to create Exelon Electric & Gas, the USA’s largest utility.

According to Chicago-based Exelon, the merger will create a combined company with total assets of approximately $79 billion, serving seven million electric customers and two million gas customers in Illinois, New Jersey and Pennsylvania.

Exelon added that the combination of three utility franchises in three different states with service areas encompassing more than 18 million people will allow for improved service and reliability with greater earnings predictability. The transaction is anticipated to be immediately accretive to both companies’ earnings per share after closing.

The new company will have approximately $27 billion in annual revenues and $3.2 billion in annual net income. With a generation portfolio of approximately 52 thousand megawatts of domestic capacity, including long-term contracts, the combined company will be the USA’s largest power generator and will be a leading US wholesale power marketer.

Under the merger agreement, each common share of New Jersey’s PSEG will be converted into 1.225 shares of Exelon. Following the merger, PSEG stockholders will own approximately 32%, or 306 million of Exelon Electric & Gas’ pro-forma shares outstanding, and Exelon shareholders will own approximately 68%, or 650 million shares.