Chicago, IL, & Newark, NJ, Sept. 15, 2006 — Public Service Enterprise Group Incorporated (PSEG) and Exelon Corp. announced that Exelon has given PSEG formal notice of termination of the merger agreement announced December 20, 2004, and the companies have agreed to withdraw their application for merger approval, which has been pending before the New Jersey Board of Public Utilities (NJBPU) for more than 19 months.
The announcement followed a number of discussions with state officials and other interested parties to better understand their respective positions on the proposed merger. The discussions made clear that gaps separating the parties’ respective settlement positions are insurmountable. Major differences included, among other things, issues relating to rate concessions and market power mitigation.
“We are very disappointed that the merger cannot be completed,” said John W. Rowe, Exelon’s chairman, president and CEO.
The CEO of PSEG, E. James Ferland, also expressed disappointment and said, had the merger gone through, it would have created value for the two companies and their customers.
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