The Federal Energy Regulatory Commission Thursday approved a $15 billion merger between Exelon Corp. and Public Service Enterprise Group Inc., which will create the biggest U.S. utility.
Chicago-based Exelon, the largest U.S. nuclear power company, agreed last year to buy PSEG, a New Jersey utility, in a stock deal valued at about $15 billion.
FERC said the companies’ plan to divest 4,000 megawatts of peaking capacity and commit 2,600 megawatts of nuclear output through long-term contracts “addresses the merger’s harm to competition.”
The unanimous vote by all three commissioners indicates smooth sailing for the merger plan at FERC and allays the threat of a protracted agency hearing, which the agency chose not to require.
FERC had been petitioned by several companies, including Dominion Resources Inc., FirstEnergy Corp. and PPL Corp., and consumer groups, asking the agency to hold a hearing on the matter.
They claimed the combined company would have too much market power, especially in the mid-Atlantic region.
The merger would create the biggest U.S. utility with assets of nearly $80 billion and 7 million electric and 2 million natural gas customers, FERC said.