Is Exelon Buying Pepco a Move in the Right Direction?

Exelon (EXC -0.29%) is already the biggest utility company in the U.S., and it has agreed to buy Pepco (NYSE: POM) 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.