8-KOther EventsExhibits & Filings

EXELON CORP 8-K Report, Corporate Update (Aug 7, 2006)

Filed August 7, 2006For Securities:EXC

Summary

This 8-K filing from Exelon Corporation on August 7, 2006, primarily concerns the ongoing merger proceedings with Public Service Enterprise Group Incorporated (PSEG) before the New Jersey Board of Public Utilities (NJBPU). Exelon's board of directors has authorized continued settlement discussions, building upon a "Settlement Proposal" presented on July 26, 2006. The company is aiming for a resolution within the established parameters of this proposal, with the NJBPU staff reportedly working diligently towards a settlement. Investors should note that the board has set a deadline of August 21, 2006, for concluding a satisfactory settlement agreement, after which a board meeting will be called to consider further actions or alternatives. The ongoing dialog and the NJBPU's commitment to daily work sessions suggest an active effort to finalize the merger approval, which remains subject to the board's ultimate approval. A joint statement with PSEG regarding these developments has been issued and is attached as an exhibit.

Key Highlights

  • 1Exelon's board of directors authorized continued settlement discussions regarding the proposed merger with PSEG.
  • 2The discussions are focused on obtaining approval from the New Jersey Board of Public Utilities (NJBPU).
  • 3A "Settlement Proposal" presented on July 26, 2006, remains the framework for ongoing negotiations.
  • 4The NJBPU staff is actively engaged and committed to working towards a settlement.
  • 5Exelon has set a deadline of August 21, 2006, to conclude a satisfactory settlement agreement.
  • 6If a satisfactory agreement is not reached by August 21, 2006, or earlier if deemed unproductive, Exelon's board will be convened.
  • 7A joint statement with PSEG regarding these settlement efforts was issued on August 4, 2006.

Frequently Asked Questions

The main purpose of this 8-K filing is to inform investors about Exelon Corporation's board of directors' authorization to continue settlement discussions concerning the proposed merger with Public Service Enterprise Group Incorporated (PSEG) before the New Jersey Board of Public Utilities (NJBPU).

The merger is still under review by the NJBPU. Exelon and PSEG are actively engaged in settlement discussions to gain regulatory approval, building on a previously submitted "Settlement Proposal."

Yes, Exelon's board has directed that a satisfactory settlement agreement must be concluded on or before August 21, 2006. If this deadline is not met, or if earlier negotiations are deemed unsatisfactory, the board will be called to review the situation.

The "Settlement Proposal" represents Exelon's highest and best offer presented to the NJBPU staff and other parties, intended to accelerate the settlement process and facilitate regulatory approval of the merger.