Dive Brief:
- Constellation has completed its acquisition of Integrys Energy Services, adding 1.2 million power and gas customers to its retail service territory across 22 states and Washington, D.C.
- Constellation said that it intends to begin transitioning customers to to its brand within 30 days, but customers may see both Integrys and Constellation operating independently in the marketplace until the businesses are integrated.
- Intregrys customer contracts will be honored, Constellation said, including Integrys’ municipal electricity aggregation contract with the city of Chicago, scheduled to expire in May 2015.
Dive Insight:
Completion of the deal means Constellation now serves 2.5 million residential and businsess power and gas customers.
“This combination creates a stronger, more diverse business that is well positioned to vie for customers in increasingly competitive retail electricity and gas markets across the country,” said Mark Huston, president of Constellation Retail. “The combined strengths of the two companies will allow Constellation to reach more customers and continue to grow the business, particularly in areas where Exelon already owns significant generation assets.”
As part of the deal, Constellation will honor all contracts signed by Integrys customers.
Exelon, which owns Constellation, is also the parent company of Commonwealth Edison, the investor-owned utility that some residents Chicago residents switched away from when they took service from Integrys. The acquisition assured customers that Constellation would honor a deal Integrys struck with the city to provide electricity at $0.0529 per kilowatt-hour, plus a flat fee, until the contract expires next year.
