Constellation Acquiring Retail Electricity and Natural Gas Business from ConEdison Solutions
July 27 2016 - 8:30AM
Business Wire
Purchase expands customer base of nation’s
largest competitive energy supplier to more than 2.5 million
residential and business customers
Constellation, a subsidiary of Exelon Corporation (NYSE: EXC),
today announced it has entered into a definitive agreement with
ConEdison Solutions, a subsidiary of Consolidated Edison, Inc.
(NYSE: ED), to acquire its retail electricity and natural gas
business, serving more than 560,000 commercial, industrial, public
sector and residential customers across 12 Northeastern,
mid-Atlantic, and Midwestern states, Texas, and the District of
Columbia. The purchase strengthens Constellation’s position as the
nation’s largest competitive energy supplier to more than 2.5
million residential and business customers across the continental
United States.
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Constellation will acquire ConEdison Solutions’ retail
electricity and natural gas customer contracts and associated
supply contracts. ConEdison Solutions will retain its focus on
renewable energy, sustainable services, and energy efficiency
solutions for commercial, industrial, residential and government
customers.
“This agreement provides an opportunity to grow our retail
electricity and natural gas business in strategically attractive
markets where we’re best suited to match load served with Exelon
generation assets,” said Joseph Nigro, CEO of Constellation.
“ConEdison Solutions has a reputation for delivering value to
customers, and our combined companies will continue that tradition
with a broad array of energy products and services at competitive
prices.”
Headquartered in Valhalla, N.Y., the retail electricity and
natural gas business within ConEdison Solutions includes
approximately 85 employees and is the 13th largest commercial and
industrial and 16th largest residential electricity retailer in the
U.S. The company delivered approximately 14 TWh of electricity and
1 Bcf of natural gas in 2015.
“With their industry-leading position, we are confident that the
retail electricity and natural gas business will continue to thrive
as part of Constellation,” said Mark Noyes, president and CEO of
ConEdison Solutions. “This move will enable our company to focus
our attention and our resources on making energy services and
renewable energy offerings even more competitive and
well-positioned for rapid growth. With this sale, we are realizing
the rewards of over 18 years of successful participation in retail
electricity and natural gas markets, and we will recommit our
remaining people and resources to the growth of ConEdison
Solutions.”
ConEdison Solutions’ retail electricity and natural gas business
will operate under the Constellation brand after a post-closing
transition period that will be complete in 2017. Residential and
commercial customers of ConEdison Solutions’ retail electricity and
natural gas business will experience no disruption to service as a
result of the transaction and all existing customer contracts will
be honored.
UBS Investment Bank is acting as financial advisor to ConEdison
Solutions in connection with the transaction.
The transaction is subject to the notification and reporting
requirements under the Hart-Scott-Rodino Act. The companies expect
to close the transaction in the third or fourth quarter 2016. The
terms of the agreement were not released.
Constellation is a leading competitive retail supplier of
power, natural gas and energy products and services for homes and
businesses across the continental United States. Constellation's
family of retail businesses serves approximately 2 million
residential, public sector and business customers, including more
than two-thirds of the Fortune 100. Baltimore-based Constellation
is a subsidiary of Exelon Corporation (NYSE: EXC), the nation's
leading competitive energy provider, with 2015 revenues of
approximately $34.5 billion, and more than 32,700 megawatts of
owned capacity comprising one of the nation's cleanest and
lowest-cost power generation fleets. Learn more at
www.constellation.com or on Twitter at @ConstellationEG.
ConEdison Solutions is a leading energy services company
that provides renewable energy, sustainability services,
cost-effective energy efficiency solutions, and energy performance
contracting. The company serves commercial, industrial, residential
and government customers, including universities, public school
districts, and hospitals nationwide. Offering innovative products,
financial stability, and a commitment to customer service, the
company is based in Valhalla, New York, with offices in Burlington,
Massachusetts; Cherry Hill, New Jersey; Falls Church, Virginia;
Houston, Texas; Tampa, Florida; Overland Park, Kansas, Nashville,
Tennessee; and Bloomington, Minnesota. The firm’s dedicated team of
energy professionals delivers a broad range of energy solutions.
ConEdison Solutions offers programs and services designed to help
customers achieve their individual energy objectives and is
accredited as an Energy Services Provider (ESP) by the National
Association of Energy Service Companies (NAESCO).
ConEdison Solutions is a subsidiary of Consolidated Edison, Inc.
(NYSE: ED), one of the nation’s largest investor-owned energy
companies, with approximately $13 billion in annual revenues and
$46 billion in assets. For additional financial, operations and
customer service information, visit us on the web at
www.conedison.com.
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Constellation CommunicationsKelly Biemer,
410-470-9700orConEdison Solutions Media RelationsChristine
Nevin914-286-7094 - office914-629-2860 - cell
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