Exelon Makes Bid to Buy FirstEnergy's Retail Power Business For $140 Million
July 10 2018 - 12:16PM
Dow Jones News
By Micah Maidenberg
Exelon Corp.'s retail and wholesale power supplier,
Constellation, wants to buy FirstEnergy Solutions Corp.'s retail
power business for $140 million in cash.
Chicago-based Exelon disclosed the purchase agreement in a
securities filing Tuesday. Exelon said the deal would boost its
footprint in Midwest and Mid-Atlantic states, where FirstEnergy
Solutions focused its business.
A spokeswoman for Constellation said the proposed deal would
allow its business to serve about 900,000 additional customers in
six states, bringing its customer base to more than 3 million
retail and business customers.
In April, FirstEnergy Solutions entered chapter 11 bankruptcy
proceedings in Ohio, as its coal and nuclear power plants were
pressured by less expensive gas-fired and renewable energy
sources.
The proposed deal is expected to close in the fourth quarter,
Exelon said. To acquire the contracts, Exelon's Constellation must
win an auction supervised by the U.S. Bankruptcy Court in Akron.
The court must also approve the deal.
A FirstEnergy spokesman declined comment on the matter.
Exelon shares were up 0.5% to $42.07 in late-morning trading
Tuesday.
Write to Micah Maidenberg at micah.maidenberg@wsj.com
(END) Dow Jones Newswires
July 10, 2018 12:01 ET (16:01 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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