From Utility Dive
- In a 2-1 vote today, the D.C. Public Service Commission (PSC) approved the proposed $6.8 billion merger between Exelon and Pepco. Chairwoman Betty Kane was the lone dissenting vote.
- The Commission approved the merger under the new conditions outlined after they rejected a settlement deal struck between the companies, the mayor’s office and other merger stakeholders. At the time, the PSC said the deal would result in automatic approval if the four new conditions were adopted by all the settlement parties.
- The D.C. mayor, residential ratepayer advocate and attorney general all announced their opposition to the new conditions and settlement terms. Exelon and Pepco were the only two parties to come out in favor of the new conditions.
- In a March 7 filing, Exelon and Pepco asked the PSC to consider the merger on its merits, despite not receiving support from all parties for the new conditions. The PSC approved the merger under those conditions.
The final decision from D.C. regulators comes after nearly two years of highly-contentious proceedings and negotiations on this utility mega-merger. The approval comes as a major blow to opposition parties, but it’s a big win for Exelon, which will now become the largest electric utility in the U.S. by customer base.
The merger took many twists and turns to get to this point. After receiving approvals from all the other agencies it needed to finalize the merger, including FERC and several other states, Exelon met its stiffest opposition in Washington, D.C. The D.C. PSC rejected the initial merger deal in August,citing an “inherent conflict of interest” between Exelon’s business model and the city’s clean energy goals. Exelon appealed the decision. Notably, they reached a settlement with the administration of D.C. Mayor Muriel Bowser, winning their support for the deal under certain conditions.
In February, regulators rejected that settlement deal brokered between the companies, merger stakeholders and the District government. Instead, they placed four new conditions on the deal that would result in the merger’s automatic approval if all of the parties adopted them.
