Exelon gets approval from NYS Public Service Commission to separate into two companies

The New York State Public Service Commission approved a settlement agreement that allows Exelon to separate into two companies in the first quarter of 2022.

With this final regulatory approval completed, Exelon is on track to separate its transmission and distribution utility business, which will remain Exelon, and its retail energy and generation business, which will be called Constellation. As part of this agreement, the commission authorized the transfer of Exelon’s New York nuclear facilities to the new Constellation company.

“This final regulatory approval is an important milestone on our path to separating into two world-class energy companies,” Chris Crane, president and CEO of Exelon, said. “As independent companies, the new Exelon and Constellation will have the strategic flexibility and financial strength to best serve their customers and invest in a clean-energy future. We continue to plan for the transition and look forward to completing the transaction in the first quarter of 2022.”

The plan has also been approved by the New York State Attorney General’s Office, the Alliance for a Green Economy, the Long Island Power Authority, and Exelon. In addition, the Federal Energy Regulatory Commission approved the transaction in August, while the Nuclear Regulatory Commission signed off in November.

The separation is expected to occur in the first quarter of 2022, subject to final approval by the company’s board of directors and a Form 10 registration statement being declared effective by the Securities and Exchange Commission. Exelon shareholder approval is not required.