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Wednesday, April 30, 2014

Nuclear power producer Exelon to buy Pepco for $6.83 billion

(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)"

4 comments:

Anonymous said...

Everybody I know just got bent over by DP&L / PEPCO why is this not front page news?

Anonymous said...

Prepare for ludicrous pricing!

Anonymous said...

There's more money to be made eliminating competition than delivering more product.

Anonymous said...

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.