Constellation Acquiring Retail Electricity and Natural Gas Business from ConEdison Solutions
Purchase expands customer base of nation’s largest competitive energy
supplier to more than 2.5 million residential and business customers
Constellation,
a subsidiary of Exelon Corporation (NYSE: EXC), today announced it has
entered into a definitive agreement with ConEdison
Solutions, a subsidiary of Consolidated Edison, Inc. (NYSE: ED), to
acquire its retail electricity and natural gas business, serving more
than 560,000 commercial, industrial, public sector and residential
customers across 12 Northeastern, mid-Atlantic, and Midwestern states,
Texas, and the District of Columbia. The purchase strengthens
Constellation’s position as the nation’s largest competitive energy
supplier to more than 2.5 million residential and business customers
across the continental United States.
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Constellation will acquire ConEdison Solutions’ retail electricity and
natural gas customer contracts and associated supply contracts.
ConEdison Solutions will retain its focus on renewable energy,
sustainable services, and energy efficiency solutions for commercial,
industrial, residential and government customers.
“This agreement provides an opportunity to grow our retail electricity
and natural gas business in strategically attractive markets where we’re
best suited to match load served with Exelon generation assets,” said
Joseph Nigro, CEO of Constellation. “ConEdison Solutions has a
reputation for delivering value to customers, and our combined companies
will continue that tradition with a broad array of energy products and
services at competitive prices.”
Headquartered in Valhalla, N.Y., the retail electricity and natural gas
business within ConEdison Solutions includes approximately 85 employees
and is the 13th largest commercial and industrial and 16th
largest residential electricity retailer in the U.S. The company
delivered approximately 14 TWh of electricity and 1 Bcf of natural gas
in 2015.
“With their industry-leading position, we are confident that the retail
electricity and natural gas business will continue to thrive as part of
Constellation,” said Mark Noyes, president and CEO of ConEdison
Solutions. “This move will enable our company to focus our attention and
our resources on making energy services and renewable energy offerings
even more competitive and well-positioned for rapid growth. With this
sale, we are realizing the rewards of over 18 years of successful
participation in retail electricity and natural gas markets, and we will
recommit our remaining people and resources to the growth of ConEdison
Solutions.”
ConEdison Solutions’ retail electricity and natural gas business will
operate under the Constellation brand after a post-closing transition
period that will be complete in 2017. Residential and commercial
customers of ConEdison Solutions’ retail electricity and natural gas
business will experience no disruption to service as a result of the
transaction and all existing customer contracts will be honored.
UBS Investment Bank is acting as financial advisor to ConEdison
Solutions in connection with the transaction.
The transaction is subject to the notification and reporting
requirements under the Hart-Scott-Rodino Act. The companies expect to
close the transaction in the third or fourth quarter 2016. The terms of
the agreement were not released.
Constellation is a leading competitive retail supplier of power,
natural gas and energy products and services for homes and businesses
across the continental United States. Constellation's family of retail
businesses serves approximately 2 million residential, public sector and
business customers, including more than two-thirds of the Fortune 100.
Baltimore-based Constellation is a subsidiary of Exelon Corporation
(NYSE: EXC), the nation's leading competitive energy provider, with 2015
revenues of approximately $34.5 billion, and more than 32,700 megawatts
of owned capacity comprising one of the nation's cleanest and
lowest-cost power generation fleets. Learn more at www.constellation.com
or on Twitter at @ConstellationEG.
ConEdison Solutions is a leading energy services company that
provides renewable energy, sustainability services, cost-effective
energy efficiency solutions, and energy performance contracting. The
company serves commercial, industrial, residential and government
customers, including universities, public school districts, and
hospitals nationwide. Offering innovative products, financial stability,
and a commitment to customer service, the company is based in Valhalla,
New York, with offices in Burlington, Massachusetts; Cherry Hill, New
Jersey; Falls Church, Virginia; Houston, Texas; Tampa, Florida; Overland
Park, Kansas, Nashville, Tennessee; and Bloomington, Minnesota. The
firm’s dedicated team of energy professionals delivers a broad range of
energy solutions. ConEdison Solutions offers programs and services
designed to help customers achieve their individual energy objectives
and is accredited as an Energy Services Provider (ESP) by the National
Association of Energy Service Companies (NAESCO).
ConEdison Solutions is a subsidiary of Consolidated Edison, Inc. (NYSE:
ED), one of the nation’s largest investor-owned energy companies, with
approximately $13 billion in annual revenues and $46 billion in assets.
For additional financial, operations and customer service information,
visit us on the web at www.conedison.com.
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