New ownership is poised to take over Delmarva Power.
Chicago-base Exelon has a deal to acquire Delmarva’s parent company, Pepco Holdings, in an all-cash deal worth an estimated $6.8 billion dollars.
The combination of the two companies will create a gas and electric utility serving about 10 million customers in six states with a rate base of approximately $26 billion.
The deal is based on a $27.25 share price – a nearly 25 percent premium on Pepco Holdings’ closing price of $21.85 on April 25.
Pepco Holdings Chairman, President and CEO Joe Rigby says it’s also a good deal for his company’s customers.
“Our customers will directly benefit as a result of this transaction, including $100 million in customer benefits across Pepco Holdings service territories for rate credits, low income assistance and energy efficiency programs, a commitment to further improve system reliability and enhanced storm restoration capabilities,” said Rigby during a conference call announcing the deal.
The two sides hope to close the deal in the second or third quarter next year. It still requires approval of Pepco shareholders and various regulatory agencies, including the Delaware Public Service Commission.