Exelon, the owner of the country's largest fleet of power reactors, has reached an agreement to purchase Mid-Atlantic utility Pepco Holdings.
Pepco and subsidiaries Delmarva Power and Atlantic City Electric provide electricity and natural gas to about 2 million customers in Delaware, Maryland, New Jersey and Washington, D.C. Acquiring Pepco would expand Exelon's regulated holdings while allowing it to surpass Duke Energy as the country's largest utility, based on the combined company's 10 million customers.
The deal follows Exelon's 2012 acquisition of Constellation Energy and a majority stake in its five reactors. The all-cash Pepco transaction recently approved by the companies' boards will pay a 24.7 percent premium on Pepco shares based on their price April 25. Pepco does not operate any nuclear plants. Chris Crane will remain CEO of the Chicago-headquartered company that will have a rate base of $26 billion if the transaction is completed.
“Exelon and Pepco Holdings have a compelling strategic rationale for merging, given our geographic proximity and similar utility business models. Our cultures are an excellent match, with a shared focus on operational excellence, environmental stewardship, customer service and support for the communities we serve,” Crane said in a statement announcing the acquisition.