Jones Lang LaSalle
Exelon-PSEG deal likely to close later in year
Thursday, February 09, 2006
BY TOM JOHNSON
Star-Ledger Staff
With the planned acquisition of Public Service Enterprise Group by Exelon facing additional and tougher regulatory scrutiny, the two companies yesterday said they expect to close the deal in the third quarter of this year, rather than the second quarter.
The announcement came after an independent analyst's review of plans to sell certain power plants owned by the two companies found it would do little to resolve concerns that the combined company would be able to swing energy prices higher to consumers.
Following the release of the report last week, various parties in the case asked the analyst, the PJM Market Monitor, to conduct additional tests of possible divestiture scenarios -- a step that extended hearings in an administrative law court case by at least 30 days. The market monitor is part of the PJM Interconnection, which oversees the power grid serving 50 million people in area stretching from Illinois to the East Coast.
"While we're disappointed with the schedule delay, we fully appreciate the need to satisfactorily address market power concerns raised by the proposed merger," said Elizabeth Moler, executive vice president of Chicago-based Exelon. "Both Exelon and Public Service continue to look forward to a timely completion of the merger."
The $12 billion deal, first announced in December 2004, has won regulatory approvals from state officials in Pennsylvania and the Federal Energy Regulatory Commission but has run into intense opposition in New Jersey from consumers, large manufacturers and retail interests and industry rivals.
They fear the company, which would be the biggest power supplier and largest electric utility in the nation, could drive energy prices higher in the region.
If the deal doesn't win all regulatory approvals by June 20 -- a prospect that seems unlikely unless a settlement is reached -- both companies have an option to walk away from the deal without paying any penalty.
Paul Rosengren, a spokesman for Newark-based PSEG, said neither company has any interest in dropping out of the deal.
Exelon-PSEG deal likely to close later in year
Thursday, February 09, 2006
BY TOM JOHNSON
Star-Ledger Staff
With the planned acquisition of Public Service Enterprise Group by Exelon facing additional and tougher regulatory scrutiny, the two companies yesterday said they expect to close the deal in the third quarter of this year, rather than the second quarter.
The announcement came after an independent analyst's review of plans to sell certain power plants owned by the two companies found it would do little to resolve concerns that the combined company would be able to swing energy prices higher to consumers.
Following the release of the report last week, various parties in the case asked the analyst, the PJM Market Monitor, to conduct additional tests of possible divestiture scenarios -- a step that extended hearings in an administrative law court case by at least 30 days. The market monitor is part of the PJM Interconnection, which oversees the power grid serving 50 million people in area stretching from Illinois to the East Coast.
"While we're disappointed with the schedule delay, we fully appreciate the need to satisfactorily address market power concerns raised by the proposed merger," said Elizabeth Moler, executive vice president of Chicago-based Exelon. "Both Exelon and Public Service continue to look forward to a timely completion of the merger."
The $12 billion deal, first announced in December 2004, has won regulatory approvals from state officials in Pennsylvania and the Federal Energy Regulatory Commission but has run into intense opposition in New Jersey from consumers, large manufacturers and retail interests and industry rivals.
They fear the company, which would be the biggest power supplier and largest electric utility in the nation, could drive energy prices higher in the region.
If the deal doesn't win all regulatory approvals by June 20 -- a prospect that seems unlikely unless a settlement is reached -- both companies have an option to walk away from the deal without paying any penalty.
Paul Rosengren, a spokesman for Newark-based PSEG, said neither company has any interest in dropping out of the deal.
posted by Jones Lang LaSalle NJ News Blog at 10:55 AM
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