Exelon Corp has cleared one major hurdle in the path of its proposed merger with Constellation Energy Group, according to Bloomberg.
The two utility companies announced plans to merge in April of this year, but regulators, particularly in Maryland, had raised concerns about a potential loss of competition in certain regions.
The latest proposal backs off plans to sell three power plants in the Baltimore area to another utility in the region, satisfying the local transmission authority, PJM Interconnection.
The plan does not address calls from Maryland officials to sell several other plants around Baltimore and in Pennsylvania, but it does propose a cap on the electricity rates for power plants that run during peak hours.
"We are confident that the proposed merger is good for BGE, its customers and the state of Maryland," Christopher M. Crane, president and chief operating officer at Exelon, said in a statement. "Our proposal offers significant direct benefits to BGE's customers. Now we have agreed to additional conditions proposed by the parties."
Nevertheless, French utility company Electricite de France S.A. called on Maryland to reject the merger because of the impact it would have on its existing relationship with Constellation.