DOW JONES NEWSWIRES
Exelon Corp. (EXC) and Constellation Energy (CEG) boosted the
investments they will make in Maryland as part of a settlement
reached with the state in connection with the companies'
merger.
The companies said they now plan to spend more than $1 billion
in Maryland on projects that could create more than 6,000 jobs
statewide. Earlier this month, the companies had offered to spend
more than $445 million in the state to create more than 2,400
jobs.
In April, Exelon announced plans to purchase Constellation in an
all-stock transaction then valued at nearly $8 billion.
The settlement requires approval by the Maryland Public Service
Commission. The merger also requires regulatory approvals by the
Federal Energy Regulatory Commission, the Nuclear Regulatory
Commission, the New York State Public Service Commission and the
Department of Justice.
The new investment plan would include at least $625 million to
develop 285 to 300 megawatts of energy generation in the state, $32
million to help build a major offshore wind energy project as well
as $50 million to provide energy-conservation measures for
low-to-moderate income homes. The companies said the settlement
also calls for provisions to protect the Baltimore Gas and Electric
Company, noting BGE will maintain its capital and operations and
maintenance spending and will pay no dividends to Exelon through
2014.
The offer includes earlier pledges to provide a one-time $100
rebate to each BGE customer as well as to construct a new
headquarters building in downtown Baltimore, estimated to cost $95
million to $120 million.
The companies' shareholders voted to approve the merger in
November and the companies have said they expect to close the
merger in early 2012.
Earlier this year, Maryland Gov. Martin O'Malley and other state
officials said they didn't support the merger as proposed. The deal
also has faced opposition from consumer groups and others.
In November, Illinois Attorney General Lisa Madigan asked FERC
to reject the deal over concerns that the merger could limit
competition in the Illinois power market, where Exelon and
Constellation are two of a handful of power generators.
In October, French utility Electricite de France SA (EDF.FR)
asked the Maryland PSC to reject the merger over fears that the
combined company would sideline EDF's nuclear-power joint venture
with Constellation. EDF also warned that Maryland consumers could
suffer from rate increases and a loss of control over the state's
largest utility.
Shareholders of both companies approved the merger last month.
The companies expect to complete the merger in early 2012. Shares
of Exelon rose 5 cents to $42.99 in recent trading while shares of
Constellation were up 1.2% to $39.44. Over the past 12 months,
Exelon's stock has risen 5.3% and Constellation's stock has gained
42%.
--By Nathalie Tadena, Dow Jones Newswires; 212-416-3287;
nathalie.tadena@dowjones.com