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EXELON CORP 8-K Report, Corporate Update (Sep 29, 2015)

Filed September 29, 2015For Securities:EXC

Summary

This 8-K filing from Exelon Corporation reports on the company's decision to seek reconsideration of the District of Columbia Public Service Commission's (DCPSC) denial of its proposed merger with Pepco Holdings, Inc. (PHI). The merger, initially agreed upon in April 2014 and later amended, faced rejection from the DCPSC in late August 2015. Exelon and PHI have formally filed an application for reconsideration with the DCPSC on September 28, 2015, indicating their continued commitment to the transaction. Investors should note that this filing primarily addresses a significant regulatory hurdle for the proposed acquisition of PHI. The outcome of this reconsideration request will be critical in determining the future of the merger, which has already faced substantial delays and regulatory scrutiny. The company's willingness to pursue reconsideration suggests a belief in overcoming the DCPSC's objections, but it also introduces ongoing uncertainty and potential further delays for the transaction's completion.

Key Highlights

  • 1Exelon Corporation and Pepco Holdings, Inc. (PHI) have filed an application for reconsideration with the District of Columbia Public Service Commission (DCPSC).
  • 2This filing follows the DCPSC's denial of the proposed merger between Exelon and PHI, which was announced on August 25, 2015, with a written order issued on August 27, 2015.
  • 3The original merger agreement was entered into on April 29, 2014, and subsequently amended.
  • 4The companies are actively seeking to reverse the DCPSC's decision, demonstrating their continued pursuit of the transaction.
  • 5A joint statement from Exelon and PHI regarding this action is attached as Exhibit 99.1.
  • 6Further details regarding the application for reconsideration are available on the DCPSC website under Formal Case No. 1119.

Frequently Asked Questions

The main event is Exelon Corporation and Pepco Holdings, Inc. filing an application for reconsideration of the District of Columbia Public Service Commission's (DCPSC) denial of their proposed merger.

The DCPSC denied the merger. They announced this at a public meeting on August 25, 2015, and issued a written order on August 27, 2015.

The merger is currently in a state of uncertainty pending the DCPSC's review of the reconsideration application. While Exelon and PHI are pursuing reconsideration, the merger's completion is not guaranteed and faces potential further delays.

A joint statement from Exelon and PHI is attached as Exhibit 99.1 to this 8-K filing. Additional details are also available on the DCPSC website at www.dcpsc.org in Formal Case No. 1119.