(Updates shares in last paragraph.)
Oct. 11 (Bloomberg) -- Exelon Corp. reached a settlement with the monitor of the largest U.S. wholesale power market, alleviating concerns its $7.98 billion takeover of Constellation Energy Group Inc. would allow it to manipulate prices.
Exelon agreed to limit the price it charges for power from some plants and said it wouldn’t sell three facilities to companies that already own some generation in the PJM market, according to a filing today with the Federal Energy Regulatory Commission and Maryland state regulators.
Exelon proposed selling the three Baltimore-area plants, which have a combined capacity of 2,648 megawatts, when the merger was announced on April 28. The agreement filed today excludes American Electric Power Co., FirstEnergy Corp., GenOn Energy Inc., Edison International, Dominion Resources Inc., Public Service Enterprise Group Inc., Calpine Corp. and PPL Corp. from buying the plants.
Paula Carmody, Maryland’s official consumer advocate, said in a Sept. 23 filing with state regulators that Exelon should sell 3,389 megawatts of generating capacity, including the three coal-fired Baltimore plants and four plants in Pennsylvania. Carmody didn’t immediately return a message left at her office seeking comment on the settlement.
The settlement also limits the price the combined company can charge from plants that provide electricity during peak demand periods. PJM operates a power market and oversees electricity flow across a region that covers all or parts of 13 states and the District of Columbia, serving more than 58 million people.
The takeover by Exelon requires approvals from federal energy regulators, the Justice Department, Nuclear Regulatory Commission and regulators in Maryland, New York and Texas.
Exelon expects the purchase to close early next year. Its shares fell 1.2 percent to $42.10 at the close in New York. Constellation, based in Baltimore, fell 0.6 percent to $37.55.
--Editors: Tina Davis, Jasmina Kelemen
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