Constellation Buys Retail Electricity and Natural Gas Business from ConEdison Solutions

Exelon Corporation

's unit, Constellation, revealed that it reached a definitive agreement with Consolidated Edison, Inc.

' unit, ConEdison Solutions, to acquire its retail electricity and natural gas business. That meant it would be adding over 560,000 commercial, industrial, public sector and residential customers in 12 Northeastern, mid-Atlantic, and Midwestern states, Texas, and the District of Columbia. Both the companies have not announced their terms of the agreement. Constellation said that the acquisition strengthens its position as the nation's biggest competitive energy supplier to over 2.5 million residential and business customers in the United States. The deal enables it to buy ConEdison Solutions' retail electricity and natural gas customer contracts and associated supply contracts. The company added that ConEdison Solutions would continue its focus on renewable energy, sustainable services, and energy efficiency solutions for its customers including commercial, industrial, and residential and government. Constellation CEO, Joseph Nigro, said, "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. 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." Once the transaction is completed, ConEdison Solutions' retail electricity and natural gas business would function under the Constellation brand. Currently, they expect the transaction to be completed next year. The company clarified that there would not disruption of service retail electricity and natural gas business to its customers and all existing customer contracts would be honored. Shares of the company traded down by $0.14 or 0.38 percent to trade at $36.95.