Press Release

PUC Approves PECO, Public Service Electric and Gas Merger

Published on 1/27/2006

Filed under: Electric Gas

HARRISBURG – The Pennsylvania Public Utility Commission today approved the merger of PECO Energy Co. (PECO) and Public Service Electric and Gas Co.

“This is the largest merger in U.S. electric utility corporation history,” said Commission Chairman Wendell F. Holland. “Through our actions today we are able to guarantee no rate increase before 2010, keep job losses at a minimum and maintain the company headquarters in Philadelphia. PECO’s rates have remained virtually the same since 1996 and will stay frozen through 2010. That will shield consumers from the spikes in energy prices that negatively impact family budgets.” (Chairman Holland’s Statement)

In voting unanimously to approve the merger, the Commission determined that the joint applicants met their burden of proof that the merger is in the public interest. Exelon, as the surviving company, will change its name to Exelon Electric and Gas Corp.

As part of the terms and conditions of the merger, PECO pledged to:

• Extend its rate caps through 2010.
• Continue its reliability and customer service commitments, agreeing to performance thresholds in eight areas that are important to providing safe reliable service and reasonable customer service.
• Increase the amount of kilowatt per house usage that is subject to the discounted rate for Consumer Assistance Program (CAP) participants.
• Spend an additional $1.2 million on consumer outreach to educate low-income people about CAP.
• Provide funding for renewable power and energy efficiency initiatives.
• Maintain its corporate headquarters for its distribution business in Philadelphia through at least 2010.

The Pennsylvania Public Utility Commission ensures safe, reliable and reasonably priced electric, natural gas, water, telephone and transportation service for Pennsylvania consumers, by regulating public utilities and by serving as responsible stewards of competition.

For more information about the PUC and additional press releases, visit our website at www.puc.state.pa.us.

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Docket No.  A-1100550F0160

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