Exelon Corp. won the final regulatory approval needed to complete its $7.3 billion takeover of Constellation Energy Group Inc., forming the largest U.S. electricity marketer. The Federal Energy Regulatory Commission conditionally approved the transaction, according to a filing made public today on the commission’s website. The companies said they will sell three coal-fired power plants in Maryland with 2,648 megawatts owned by Constellation, according to the filing.
Exelon and Constellation also agreed to sell 500 megawatts of fixed-priced electricity contracts until 2015 and bid energy at cost-based rates while asset sales are pending to address market-power concerns, the filing said.
Separately, Constellation said it will pay $245 million to settle claims from the Federal Energy Regulatory Commission related to certain energy trading transactions in New York wholesale markets, according to a statement. The company admitted no wrongdoing in the case.
The commission’s approval is the final regulatory requirement needed to complete the takeover, Exelon President and Chief Operating Officer Christopher Crane said in a statement. Crane will become chief executive officer of Exelon after the merger is completed, which is expected on March 12, according to the statement.
Exelon, based in Chicago, and Constellation, based in Baltimore, won approval last month from Maryland’s Public Service Commission after agreeing with the state to create a $113.5 million fund to assist customers and to provide a $100 rebate to customers of Constellation’s Baltimore utility.
The companies also have gotten approval from shareholders, other federal agencies and New York and Texas regulators.
