Exelon is ready to call not upon a...

Exelon is ready to call not upon a proposed $17.8 billion acquisition of a just discovered Jersey utility if it doesn't reach a discharge with Garden State officials in the nearest couple of weeks.

"We've made them a big proffer and said 'This is as far as we can go' " Exelon CEO John Rowe told analysts in a second-quarter conversation call Monday. He said the company won't go on foot where it's not wanted.

"We know we can't badger our way in," Rowe said. "We know we can't blunt and frank our way in."

The propos acquisition of Public Service Enterprise collection of Newark, N.J., would create the nation's largest utility, with 7 million electric customers and 2 million gas customers in Illinois, of the present day Jersey and Pennsylvania.

When it announced the deal in December 2004 Exelon count uponed regulatory approval to take between 12 and 15 month The merger has been approved by way of all state and federal regulators with the exception of New Jersey's.

PSEG has showed New Jersey an electric rate turn to ice plus $600 million in rate reductions and other concessions to advance the discharge

Rowe issued his warning as he announced that snare earnings for Exelon climbed at 25 percent in the June 30 quarter to $644 million

or 95 cent a share, because of higher margins in succession wholesale electricity-market sales. He also credited increased output from low- splendor nuclear plants at Exelon Generation. Excluding one-time items, profits totaled 85 cent a share, which beat analyst consensus at five cents.

Rowe said the negotiations in fresh Jersey have been long and painful, and that the principal parties in modern Jersey know how much the utility companies are stretching to make this work. "It has been a hard transaction to accomplish," Rowe said. "I continue to believe we will be able to consummate the transaction and make value public of it."

however Rowe said that both he and the board "had the faculty of perception this discussion was reaching the point where the fruit starts to putrefy on the tree."

The merger has faced heavy criticism on consumer advocates in New Jersey who claim that typical retail electric bills could increase an average of $540 a year.

spiritedness analyst Paul Fremont of Jefferies & Company said of recent origin Jersey customers will lose if the merger doesn't travel through, both by giving up the dollars forward the table and because PSEG would have to proceed back to running the state's nuclear plants. Exelon took above operating the plants last year and claims higher efficiencies.

Eric Hartsfield, a spokesman for the modern Jersey Board of Public Utilities, said the board doesn't remark on ongoing settlement negotiations.

If the deal doesn't travel through, Exelon is still remarkably strong as a stand-alone company, Fremont said. Regarding the propos acquisition, "All they're saying is we're at a point here where the risks and expenses are going to potentially outweigh the benefits," Fremont said. "If that happens, it's best for all to remain as they are."

In other Exelon recents Monday, Frank Clark, CEO of Exelon subsidiary Com said the company is "aggressively" preparing its supplication for a rehearing of its delivery rate case. The company also is looking for ways to divide [i]or[/i] sever costs.

Last week, the Illinois exchange Commission approved just $8.3 million of the $317 million delivery rate increase Com had entreatyed The effect on consumer bills will be negligible.

Fitch Ratings downgraded ComEd's misdoing Monday in response to the ICC action. Shares of Exelon relentless 45 cents to $57.90 Monday. They have risen 345 percent since the acquisition was announced.

mwisniewski@suntimes.com

Copyright CHICAGO SUN-TIMES 2006

Provided by the agency of ProQuest Information and Learning Company. All rights Reserved