Now, Conectiv will disappear, taken over by the Washington, DC-based Potomac Electric in a deal that's expected to close by early next year. The name for the merged companies hasn't been disclosed.
Ironically, Conectiv is the larger of the two companies. Its $5 billion annual revenues are about double PEPCO's. The latter is cash-rich because it has sold off a number of generating plants, largely getting out of the power generation business in the new deregulated electricity environment.
The merged companies will service some 1.8 million customers from metro Washington, DC into south central New Jersey. Conectiv's operations will still be in the power generation business and has been expanding into the telecom field.
One possible hitch falls with the regulators: Maryland killed PEPCO's attempt to acquire Baltimore Gas & Electric a few years ago. This deal, according to most observers, is expected to proceed.
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