PSE&G MERGER FAILS—A coalition of consumer groups, businesses, and low-income advocates led by NJPIRG prevented Exelon from merging with PSE&G, saving consumers billions.

After two years of public hearings, litigation, testimony and negotiations, and more than 11,500 letters, phone calls and e-mails to state decision-makers, New Jersey consumers won a precedent-setting, hard-fought victory when, on Sept. 14, Exelon walked away from its bid to buy out PSE&G.

“New Jersey ratepayers struggling with high energy costs had a huge weight lifted off their shoulders.” said Allison Cairo, executive director of NJPIRG. “This deal would have created an energy giant, powerful enough to dictate electric rates—potentially costing ratepayers in the state hundreds of dollars more a year.”

The proposed merger would have raised electric rates in New Jersey by as much as $2.3 billion a year, reduced reliability and quality of service, and risked public safety.

Soon after the deal was announced, the New Jersey Board of Public Utilities set the stage to ensure that this merger would not go forward unless it was good for consumers by adopting a standard of review that required the merger to provide positive benefits to the state.

The collapse of the deal has started to slow down a fast-growing trend of utility consolidation across the country. On Oct. 25, Florida Power and Light walked away from their bid to buy out Maryland-based Constellation Energy.

“Policy leaders, especially the Commissioners of the New Jersey Board of Public Utilities led by President Jeanne Fox, New Jersey Public Advocate Ron Chen and state Asm. Joseph Cryan, ensured that the state of New Jersey conducted a very thorough, independent review. Their decisions were guided by facts,” said Cairo.