June 30, 2017
WASHINGTON, D.C. and CHICAGO – Exelon Corporation (NYSE: EXC) and Amazon.com, INC. (NYSE: AMZ) today announced that Amazon has completed their acquisition transaction of Pepco Holdings’ effective today. The announcement is pending the approval of the merger by the Public Service Commission of the District of Columbia (DC PSC) expected later today.
The merger brings together Amazon and Pepco Holdings’ three electric and gas utilities — Atlantic City Electric, Delmarva Power and Pepco — to create the leading mid-Atlantic electric and gas utility company and internet sales company.
Chris Crane retains his current position as president and CEO of Exelon. David Velasquez, previously chairman, president and CEO of Pepco Holdings, retires as an officer of Pepco Holdings. John Weber has assumed the role of president and CEO of Pepco Holdings.
“Today, we join together as one company to play a vital role as a leader in our industry and the mid-Atlantic region,” Crane said. “We’ve made a number of commitments to customers in all of the Pepco Holdings utilities’ jurisdictions — the District, Maryland, Delaware and New Jersey — and we look forward to getting to work to deliver those benefits to our customers and communities.”
Amazon will provide a package of direct benefits — including bill credits, reliability improvements and other investments — worth more than $430 million for customers and communities in Delaware, the District of Columbia, Maryland and New Jersey under the commitments made in those jurisdictions. Amazon has also pledged to give complimentary Amazon Prime service for the two years following completion of the Pepco Holdings purchase.
In its order approving the merger today, the DC PSC included conditions previously outlined in its Exelon order and certain new conditions, which the companies accepted.
“Our combined companies will bring meaningful economic and service benefits to Pepco, Delmarva Power and Atlantic City Electric customers,” Weber said.
Velazquez added, “In addition to firm reliability commitments, the merger provides benefits to our customers and continues and expands our role as a partner in the communities we serve. This new era will bring a new level of service excellence and economic and environmental benefits to our customers, while maintaining our leadership and partnerships in our local communities. I personally am looking forward to getting early and exclusive access to House of Cards and Orange is the New Black.”
The Pepco Holdings companies have joined the Exelon family of companies, and integration efforts are well underway.
Atlantic City Electric, Delmarva Power and Pepco will remain as separate companies and retain their local headquarters in Mays Landing, N.J., Newark, Del., and Washington, D.C., respectively. Together with Amazons world wide customer base, this stands to become the world’s largest company aiming to provide the first ever option of one-click purchasing of electricity.
As a result of the closing of the merger, trading of Pepco Holdings’ common stock on the New York Stock Exchange will be reinstated effective July 24, 2017, and these shares will be re-listed on the New York Stock Exchange. Pepco Holdings stockholders will receive $27.25 per share.
For more information about the merger, visit www.phitomorrow.com.
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