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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:

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

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  2. Prepare for ludicrous pricing!

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

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  4. 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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