Exelon Corp said it would buy Pepco Holdings Inc for $6.83 billion, helping it overtake Duke Energy Corp as the biggest power distribution company in the United States.

The deal will allow Exelon to sell more power at stable rates set by regulators at a time when an abundance of cheap natural gasis dragging down power prices in the open market.

Exelon’s move to reduce its exposure to the vagaries of the wholesale power market comes as U.S. utilities struggle with falling electricity demand in both the open and regulated markets due to increased energy efficiency and a weak economy.

Read more: www.reuters.com