NEW YORK, NY September 15, 2006 —The proposed merger of Exelon Corporation and Newark-based PSE&G has been called off-putting the brakes on what would have been the largest utility merger in U.S. history. WNYC's Kathryn Herzog reports.

The nearly $18 billion merger was two years in the making. The Federal Energy Regulatory Commission and the U.S. Justice Department had already signed off on the deal.

But the companies were not able to reach a settlement with the New Jersey Board of Public Utilities, saying insurmountable gaps remained over the companies potential market power. The Board wanted the companies to deliver greater rate relief and measures to insure it would not manipulate the local energy market and drive up prices.

Consumer, environmental and labor groups praised the failed merger - saying it would have created an energy giant - reducing reliability and risking public health. The New Jersey Public Interest Research Group called it a beacon for change for future merger proposals across the country.