The FERC has approved the proposed merger of Chicago-based Exelon Corp. with Public Service Enterprise Group Inc. (PSEG) of New Jersey, a transaction that would result in the largest U.S. utility, with assets of nearly $80 billion. The merged company, to be known as Exelon Electric & Gas Corp., would serve 7 million electric customers and 2 million natural gas customers in Illinois, New Jersey and Pennsylvania.

The companies say that the combination of three utility franchises in three different states with service areas encompassing more than 18 million people will allow for improved service and reliability, with greater earnings predictability. The new company is projected to have approximately $27 billion in annual revenues and $3.2 billion in annual net income.

FERC approval is the first of a number of regulatory reviews pending for the merger. Among others, the transaction must be approved by utility regulators in New Jersey and Pennsylvania, as well as by federal agencies including the Nuclear Regulatory Commission, the Securities and Exchange Commission, and the Department of Justice.