Constellation Energy Group Inc. and Exelon Corp. are calling on the Federal Energy Regulatory Commission to make a decision about the companies’ proposed merger by Jan. 5 after learning the regulatory agency could delay the deal until April.
On Oct. 13, the companies submitted to FERC an agreement they had come to with the independent market monitor for PJM, the regional power grid. The agreement resolved some possible issues the market monitor had. However, FERC said that the agreement effectively reset the clock on its approval process and it could have up to 180 days more to make a decision.
“Exelon and Constellation now believe that FERC will take additional time to consider the Settlement and comments recently filed on the Settlement,” the companies said in a filing Monday with the Securities and Exchange Commission.
This could push the deal’s resolution into April. Exelon and Constellation have been working under a timetable where the final regulatory approval would come from the Maryland Public Service Commission on Jan. 5.
In the SEC filing, the companies said they had filed a letter on Monday asking FERC to complete its review and issue a decision prior to the PSC decision as it would have three months from the filing of the settlement to review it.
Chicago-based Exelon is attempting to buy Constellation in a $7.9 billion, all-stock deal. Constellation and Exelon have said the deal would mean a direct investment in Maryland of more than $250 million. The companies also said the acquisition would create nearly 900 jobs in the state related to projects associated with the deal, such as the development of a new or renovated headquarters building for the new company’s energy marketing and renewable development businesses, as well as the development of a new 25-megawatt renewable energy project.
Under the companies’ proposal, residential customers of BGE would each receive a $100 credit.