Exelon Corp, the largest U.S. nuclear power producer, said it would purchase Pepco Holdings Inc for $6.83 billion to create the biggest electric and gas utility in the U.S. Mid-Atlantic region.The deal will allow Exelon to sell more power at stable rates set by regulators at a time when an abundance of cheap natural gas is dragging down power prices on the open market."We view this transaction in a positive light as it further reduces Exelon's consolidated exposure to the vagaries of the wholesale power market," BMO Capital Markets analyst Michael Worms wrote in a note.After the deal, as much as 65 percent of the company's earnings are expected to be derived from regulated businesses compared with roughly 55 percent now, he said.
Pepco Holdings, Inc. (PHI) is a holding company, that, through regulated public utility subsidiaries, is engaged primarily in the transmission, distribution and default supply of electricity and the distribution and supply of natural gas (Power Delivery): Potomac Electric Power Company (Pepco), Delmarva Power & Light Company (DPL) and Atlantic City Electric Company (ACE). Shares of POM fell by 1.34% or $-0.31/share to $22.79. In the past year, the shares have traded as low as $18.04 and as high as $23.25. On average, 2466240 shares of POM exchange hands on a given day and today's volume is recorded at 13461275.
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