Constellation Energy announced on July 27 that it had entered into a definitive agreement with ConEdison Solutions, a subsidiary of Consolidated Edison (ConEd), to acquire its retail electricity and natural gas business – currently serving more than 560,000 commercial, industrial, public sector ,and residential customers across 12 northeastern, mid-Atlantic, and midwestern states, as well as Texas, and the District of Columbia.
The purchase, the Baltimore-based subsidiary of Exelon said, is intended to “strengthen … 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.”
Under the terms of the deal, 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, New York, the retail electricity and natural gas business within ConEdison Solutions represents the 13th-largest commercial and industrial and the 16th-largest residential electricity retailer nationwide.
“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 ConEdison Solutions CEO Mark Noyes, adding, “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 completed 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, the two companies pledged.
UBS Investment Bank is acting as financial advisor to ConEdison Solutions in connection with the transaction.