Exelon Corp., a big new kid on the electricity block, isexpected to begin trading today on the New York Stock Exchangeunder the symbol “EXC.” The new company is the product of the $8billion merger of Unicom Corp. and PECO Energy Co. which wascompleted on Friday, following approval by the Securities andExchange Commission.

The merger creates one of the largest U.S. electric utilities, withmore than $12 billion in annual revenues and nearly five millioncustomers in the Chicago and Philadelphia areas (see Daily GPI, April 13). Exelon also will be one of thelargest power generators in the United States, with the largestnuclear power capacity.

“We believe Exelon will be the start of something special, a newbreed of utility service company, tailor-made for today’scompetitive power environment,” said Corbin McNeill Jr., PECO’s CEOwho is now Exelon’s chairman and co-CEO. Through the transitionperiod, he will oversee Exelon Generation.

“Deregulation is creating unprecedented opportunities for powergenerators,” said John W. Rowe, Unicom chair and now president andco-CEO of Exelon. “The winners in this new landscape will bemerchants that best meet the needs of PECO Energy and Unicom, andwe believe Exelon will be extraordinarily well positioned to becomea merchant of choice.” Rowe will oversee Exelon Energy Delivery andExelon Enterprises through the transition.

McNeill will be chair through the first half of the transition,and Rowe will be chair for the second half, which goes through2003. Beginning Jan. 1, 2004, Rowe becomes chair and sole CEO ofExelon, and McNeill remains on the board of directors.

Exelon will have one of the largest portfolios of electricgeneration capacity and will market power in customized packagesfor specific needs, said Rowe, “wherever and whenever they needit.”

In a statement, Rowe and McNeill said the Exelon merger isexpected to realize annual cost savings of about $100 million nextyear, which will increase to $180 million by 2003. The merger alsowill add to earnings in 2001, its first full year of operation.

Exelon’s market capitalization is expected to total about $18billion, with 318 million share outstanding. PECO shareholders willreceive one Exelon share for every share they own, while Unicomshareholders will receive 0.875 shares of Exelon common stock and$3 in cash for each of their shares.

During merger negotiations, PECO agreed to cut its rates by $200million over four years, keep nearly all of the jobs at itsPhiladelphia headquarters and maintain its charitable contributionsfor the next three years. About 78% of Unicom shareholders approvedof the plan, while 97% of PECO shareholders voted in favor. Thecompany will be headquartered in Chicago.

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