Pennsylvania's PUC okays PECO-Unicom merger

["Sandy Perle" <sandyfl@earthlink.net>]

Pennsylvania's PUC okays PECO-Unicom merger
  
NEW YORK, June 22 (Reuters) - The Pennsylvania Public Utilities 
Commission (PUC) unanimously approved the $31.8 billion merger 
between PECO Energy Co. <PE.N> and Unicom Corp. <UCM.N> creating the 
largest electric utility in the U.S. 

The PUC approval "takes the merger one step closer to completion," 
Corbin McNeill, Jr., chairman, president and chief executive of PECO 
and John Rowe, chairman, president and CEO of Unicom said in a 
statement.  

McNeill and Rowe will be co-CEOs of the newly merged company to be 
called Exelon Corp. 

In September, 1999, Philadelphia-based PECO and Chicago-based Unicom 
agreed to a merger of equals creating a new company with about five 
million customers, more than 22,500 megawatts of generation and $12.4 
billion in revenues. 

In addition to the Pennsylvania PUC, the merger has also been 
approved by the U.S. Federal Energy Regulatory Commission, the U.S. 
Department of Justice and the Illinois Commerce Commission. 

Regulatory review and approvals were still needed from shareholders 
of both companies, the U.S. Nuclear Regulatory Commission (NRC) and 
the U.S. Securities and Exchange Commission (SEC). 

PECO spokesman Wood said the companies expect NRC approval in the 
"next few weeks" and SEC approval after "all the other regulatory 
agencies." 

The target date for closing the merger remains September, 2000. 

After the companies merge, Exelon will be in an excellent position to 
rapidly grow each of its services, distribution, generation and 
wholesale power marketing businesses through acquisitions and other 
means, PECO spokesman Michael Wood told Reuters. 

The PUC approval followed the submission on March 24, 2000, by PECO 
of a joint petition for settlement reached with various parties. 

The settlement agreement provides comprehensive customer benefits, 
including $200 million in rate reductions from 2002 through 2005, an 
18-month extension on existing energy delivery rate caps, an 
additional $3 million for service funds that assist low-income 
households and quality service benchmarks and performance measurement 
criteria for electric reliability and customer service. 

It will also provide a nearly $20 million investment to support the 
development of wind and solar power generation, and several 
provisions that will further promote electric competition in 
Pennsylvania. 

One company, rival energy concern PPL Corp. <PPL.N> of Allentown, Pa. 
raised objections to PECO's settlement agreement. The PUC, however, 
rejected PPL's concerns and did not change the agreement. 

Additionally PECO committed, through January 1, 2008, to keep its 
distribution headquarters in Philadelphia, retain employment at the 
headquarters at not less than 1,100 and maintain charitable and 
community development contributions at least at current levels. 

Exelon will have its corporate headquarters in Chicago, a 
distribution office in Chicago for its Commonwealth Edison unit, a 
second distribution office in Philadelphia for its PECO Energy unit, 
and a new office in Chester, Pa. for its, as yet, unnamed generation 
and power marketing unit. 

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Sandy Perle					Tel:(714) 545-0100 / (800) 548-5100   				    	
Director, Technical				Extension 2306 				     	
ICN Worldwide Dosimetry Division		Fax:(714) 668-3149 	                   		    
ICN Biomedicals, Inc.				E-Mail: sandyfl@earthlink.net 				                           
ICN Plaza, 3300 Hyland Avenue  		E-Mail: sperle@icnpharm.com          	          
Costa Mesa, CA 92626                                      

Personal Website:  http://www.geocities.com/capecanaveral/1205
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