Excelon to NJ: Take it or Leave it

by: Jason Springer

Tue Aug 01, 2006 at 07:38:06 PM EDT

Calling negotiations between Exelon and PSEG "long and painful," John W. Rowe, chairman, president and CEO of Exelon Corp., Monday gave the New Jersey Board of Public Utilities an ultimatum: Take our very generous offer within the "next week or so," or leave it.

"We have to be wanted here. We know we can't badger or bluff our way in." On the other hand, the CEO added, there comes a time "when the fruit start to rot on the tree."

Below the fold you can see what else they added to sweeten the pot on their "Very Generous offer", but i still don't think this is a good deal for NJ ratepayers.  You want to talk about a monopoly, this new company will be the nation's largest utility company with 7 million electric and 2 million natural gas customers in New Jersey, Pennsylvania and Illinois.  If you think the merger is a good idea, tell me why because i have my doubts.

To set aside $600 million for consumer rate reduction, economic development, conservation and/or infrastructure improvements as determined by the Board of Public Utilities and other New Jersey stakeholders. The BPU is the sole remaining obstacle to a settlement. Originally, Exelon offered $120 million.

To freeze PSE&G's pending request for a $64 million rate increase on electricity, but no indication of how long the freeze would last.

A promise to settle PSE&G's pending request for a $120 million gas rate hike, but again gave no indication of how or within what time frame.

To increase PSE&G's charitable contributions to the community in 2005 by 20 percent. That means an increase from $6.3 million to $7.5 million.