Exelon Makes Bid for FES Retail Business
July 11, 2018
FirstEnergy Solutions (FES) has signed an Agreement in Principle to sell its retail and wholesale load-serving business to an Exelon subsidiary.
Exelon announced yesterday that its retail and wholesale power supplier, Constellation, has reached an agreement in principle to purchase FES’s retail power business for $140 million in cash. According to Exelon’s press release, “the deal would boost its footprint in Midwest and Mid- Atlantic states, where FirstEnergy Solutions focused its business. “
“A spokeswoman for Constellation said the proposed deal would allow its business to serve about 900,000 additional customers in six states, bringing its customer base to more than 3 million retail and business customers.”
To complete this sale, and pursuant to Section 363 of the Bankruptcy Code, FES filed a motion with the U.S. bankruptcy court in Akron for the implementation of bidding procedures to allow other companies to have an opportunity to submit bids through a court-supervised, competitive bidding process. The bidding procedures motion calls for all qualified bids to be submitted by August 23, 2018, with an auction to be held September 6, 2018, if competing bids are received. Any objections to the sale transaction must be filed by September 14, 2018. The sale hearing is scheduled to be held on September 21, 2018.
During the sale process, FES will continue to supply energy and service to all customers without interruption. In the event Exelon becomes the successful bidder they have indicated that certain FES employees will be given the opportunity to join the Exelon team.