The PSC 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. PSC Chair Betty Ann Kane was the lone dissenting vote.
The final decision from D.C. regulators comes after nearly two years of contested 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 US by customer base. This Pepco April 2014 news release described the merger:
“Exelon Corporation and Pepco Holdings Inc. announced on April 30, 2014 that they signed a definitive agreement to combine the two companies in an all-cash transaction. The agreement, which has been unanimously approved by both companies’ boards of directors, brings together Exelon’s three top-performing electric and gas utilities – BGE, ComEd and PECO – and Pepco Holdings’ electric and gas utilities – Atlantic City Electric, Delmarva Power and Pepco – to create the leading Mid-Atlantic electric and gas utility.
“The combined utility businesses will serve approximately 10 million customers and have a rate base of approximately $26 billion. The transaction will further expand Exelon’s regulated holdings, ensuring a balanced earnings mix as power prices recover.”
Merger opponents expressed disappointment with the PSC division.
“By approving the merger, the PSC has exposed our city to decades of higher rates, weakened its own ability to guide our city’s energy future, and helped ensure that D.C, will fall behind the rest of the U.S. on clean, efficient energy,” POWER DC, a coalition of merger opponents, said in a statement. “[W]e will hold the PSC accountable for its actions in the months and years to come. The fight is not over.”
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