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Toledo, Ohio & Lake Erie

The Press Newspaper

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        Exelon Corp., in a July 9 filing with the Securities Exchange Commission, has informed the commission it has entered into an agreement to purchase the power business of FirstEnergy Solutions for $140 million.

        The transaction is expected to close in the fourth quarter of 2018 but is conditional on Exelon being the winning bidder after a bankruptcy auction and the subsequent approval of the purchase agreement by the U.S. Bankruptcy Court for the Northern District of Ohio.

        Exelon or FirstEnergy Solutions may terminate the agreement if the sale hasn’t been completed by Dec. 31, according to the filing.

        Under the agreement, Exelon Generation Co. will purchase FirstEnergy Solutions’ retail electricity and wholesale load serving contracts and “certain other related commodity contracts.”

        In March, FirstEnergy Corp. announced it was moving forward with its plan to exit the competitive generation business and become a fully regulated utility. Its subsidiary, FirstEnergy Solutions and its subsidiaries and FirstEnergy Nuclear Operating Co., voluntarily filed for bankruptcy under Chapter 11 in March.

        Charles Jones, president and chief executive officer of FirstEnergy, noted at the time that FirstEnergy and its other subsidiaries were not part of the bankruptcy filing.

        Many operators of coal and nuclear plants haven’t been able to compete against less expensive power generated by natural gas as well as renewable sources.

        Throughout the sale process, FirstEnergy Solutions will continue to supply service to customers without interruption, said Kevin Warvell, vice president and chief financial officer of FES.

        “If approved, we will work with (Excelon subsidiary) Constellation to ensure the transition of customer accounts is seamless. During the sale process, our daily operations will continue as usual, and we will continue to provide our customers with the uninterrupted service they demand. Taking care of customers is and will remain our number one priority,” he said.

        Mark Huston, president of Constellation’s National Retail Business, said the agreement would provide his company a chance to grow in attractive markets.

        “FirstEnergy Solutions has a reputation for delivering value to customers, and our combined business would continue that tradition with a broad array of energy products and services at competitive prices,” he said.

         Exelon’s six utilities deliver electricity and natural gas to approximately 10 million customers in Delaware, the District of Columbia, Illinois, Maryland, New Jersey and Pennsylvania through its Atlantic City Electric, BGE, ComEd, Delmarva Power, PECO and Pepco subsidiaries.

        Exelon is one of the largest competitive U.S. power generators, with more than 35,500 megawatts of nuclear, gas, wind, solar and hydroelectric generating capacity, according to the company website.

 

 

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