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Exelon is already the biggest utility company in the U.S., and it has agreed to buy Pepco for $6.8 billion.
But Fool contributor Tyler Crowe and energy and materials analyst Joel South say Exelon didn't make the purchase to make an even larger footprint in the utility space; it was more to diversify its holdings there. Pepco also gives Exelon stable revenue in a regulated -- and therefore less volatile -- business, even if the overall income needle won't move too much from this purchase.
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The article Is Exelon Buying Pepco a Move in the Right Direction? originally appeared on Fool.com.
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