Washington, D.C., Mayor Muriel Bowser and other stakeholders have reached a settlement with Exelon and Pepco Holdings that could revive a potential merger rejected by the D.C. Public Service Commission in August.
The $6.9 billion merger between Baltimore Gas and Electric parent Exelon and Pepco Holdings was approved by regulators in Maryland and several other states before it was rejected by the D.C. Public Service Commission. The D.C. regulator said the merger would move the company away from its purpose of providing safe, reliable and affordable distribution to residents.
Opposition from clean energy groups and D.C. neighborhood associations has been fierce, with many arguing the deal would result in a loss of competition and in higher rates for Pepco customers.
The settlement announced by Bowser's office on Tuesday would increase Exelon's investment in bill credits for D.C. ratepayers more than five-fold — from $14 million to $78 million. The D.C. Public Service Commission will review the settlement.
The settlement was backed by the D.C. People's Counsel and Attorney General, but other past opponents were not assuaged.
"This settlement does nothing to change the fundamental conflict of interest identified by the Public Service Commission in their unanimous rejection of this bad deal," said Anya Schoolman, president of D.C. SUN, a solar advocacy group.