BG&E, PEPCO Join Forces
Baltimore Gas and Electric Co. (BG&E) on September 25 announced that it would acquire Potomac Electric Power Co. (PEPCO) for $2.9 billion, creating an as-yet unnamed company with assets exceeding $15 billion, and annual revenues of about $5 billion. The new company will be one of the 10 largest electric utilities in the nation, with 1.8 million electric customers and 530,000 natural gas customers.
BG&E shareholders will receive one share of stock in the new utility for each share of common stock. PEPCO stockholders will receive .997 share for each share.