It’s the biggest deal of its kind ever to hit the energy sector.
The $100-billion merger between Chesapeake Energy and Exelon, which will combine the nation’s two largest coal-fired power plants, is expected to close this week.
Here’s what it means for energy consumers.
Chesapeake and Exellon will now share $60 billion in total value.
The deal will see Chesapeake buy out Exelons 51 percent of the Exelium stake and Exels 49 percent of Chesapeake.
Chesons shareholders will also receive $40 billion of Exelian capital and $25 billion in Exel’s debt, according to a press release.
The acquisition will give Exel a significant piece of the country’s electric grid, according the news release.
But it will also allow the merger to create the largest new generation power plant in the country.
That’s a big deal because Exel has been building coal plants at a rapid pace.
Exel already has more than 40 gigawatts of coal plants in operation.
The coal plant in question is the Marcellus Shale in the Ohio River Valley.
It has generated more than 1.2 billion kilowatt hours of electricity since its construction in 2008.
The largest coal plant on the grid is also one of the largest power plants in the world.
And it’s one of several power plants that have a high rate of coal production.
The deal is expected, if the financing comes through, to create about 1,200 jobs.
That is roughly the equivalent of 2,500 full-time equivalent jobs.
And with the acquisition, Exel will be able to provide energy to Chesapeake customers at an average cost of about $3.25 per megawatt hour.
The power plant will be built in a new plant that will have to be built on site to meet the new plant’s new requirements.
It will be on-site in 2021 and will begin operations in 2023.
Exels own 20 percent of both plants, according a press report.
The other 50 percent will be owned by Exel.
Exell already has the majority of the power plants it needs to compete with renewables and will be using the new power plant to build its own generation and supply the power of other power plants.
Exel will continue to own 20-plus percent of power plants and a small amount of other assets, according an Exel spokesperson.
This deal also will mean Exel, which has about 40 percent of U.S. coal production, will continue its fight to maintain its dominance in the coal industry, according Exel CEO Greg Martin.
That includes fighting to maintain Exels dominant position as the world’s largest producer of coal.
“This acquisition will allow us to build a more robust and diverse power plant portfolio that will enable us to continue to compete and provide value for our customers, shareholders and investors,” Martin said in a statement.
But Exel also faces significant challenges, including competition from solar and wind power.
Exe will also need to work with the state of Tennessee and other regulators on how to ensure it’s complying with state rules governing how the plant is run.
Exes coal plants, which generate electricity from coal, produce about 20 percent to 25 percent of Tennessee’s electricity.
That means Exel is facing a challenge in meeting its emissions standards.
While the coal deal represents a big investment for the coal sector, it’s also a big opportunity for Exel to take advantage of the fact that many of its customers and customers of the plant will no longer need to rely on coal to power their homes and businesses.
For more information on the Exels deal, visit the company’s website.
Read more: Excel: The power of coal