NEW YORK Jan 8 Delaware regulators expressed
concern about Exelon Corp's (EXC.N) hostile bid for independent
power producer NRG Energy Inc (NRG.N) on Thursday, saying that
Exelon has not proven that planned sales of Delaware plants are
in the public interest.
While the state lacks approval power over the deal,
Delaware's Public Service Commission and its Department of
Natural Resources made their worries known in a filing to the
Federal Energy Regulatory Commission (FERC).
Exelon filed an application for approval of the deal with
FERC in December, even though NRG's management has rejected the
Chicago-based Exelon has said that if it succeeds in buying
NRG, it would sell two NRG plants in Delaware and a third in
Maryland. It would also sell power plants in Texas.
The Delaware regulators said that the sale of NRG's Indian
River plant could hurt energy reliability in the state and
disrupt environmental improovements NRG has begun at the site.
"Exelon has the burden to prove that the proposed merger
with NRG is consistent with the public interest. Exelon has
not met its burden," the regulators wrote.
Exelon, the largest nuclear power company in the United
States, made its unsolicited stock offer for independent power
producer NRG in October. NRG has said the offer is too low.
Investors owning nearly 46 percent of NRG's shares have
tendered their stock under the offer through Jan. 6.
(Reporting by Michael Erman, editing by Leslie Gevirtz)