Justice Department Orders Exelon, Constellation to Divest Coal Plants Before Merger
POWERnews
Exelon Corp. and Constellation Energy Group must sell three electricity generating plants in Maryland before the companies can proceed with their proposed $7.9 billion merger to level competition for wholesale electricity in the mid-Atlantic region, the U.S. Department of Justice (DOJ) said last week.
Filing a civil lawsuit in a U.S. District Court in Washington, D.C. to block the proposed merger, the DOJ’s Antitrust Division contended that the transaction, as originally proposed, “would substantially lessen competition for wholesale electricity, ultimately increasing electricity prices for millions of consumers in the mid-Atlantic region.” The DOJ also filed a proposed settlement that could resolve the department’s competitive concerns and lawsuit. Exelon and Constellation have agreed to conditions set out in the…