(Reuters) - Exelon Corp, the largest U.S. nuclear power producer, said it would buy Pepco Holdings Inc for $6.83 billion to create the biggest electric and gas utility in the U.S. Mid-Atlantic region.
The deal will allow Exelon to sell more power at stable rates set by regulators at a time when an abundance of cheap natural gas is dragging down power prices on the open market.
"We view this transaction in a positive light as it further reduces Exelon's consolidated exposure to the vagaries of the wholesale power market," BMO Capital Markets analyst Michael Worms wrote in a note.
After the deal, as much as 65 percent of the company's earnings are expected to be derived from regulated businesses compared with roughly 55 percent now, he said.
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A Viewer wrote: "pepco holdings sold (delmarva power is owned by them)"
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4 comments:
Everybody I know just got bent over by DP&L / PEPCO why is this not front page news?
Prepare for ludicrous pricing!
There's more money to be made eliminating competition than delivering more product.
This could be a good thing. I have never had a billing issue with Exelon in PA unlike the constant problems with DPL on the Shore.
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