Exelon & Pepco Submit Proposals to Secure Merger in DC

 Exelon & Pepco Submit Proposals to Secure Merger in DC

Exelon Corp. (NYSE: EXC) and Pepco Holdings Inc. (NYSE: POM) proposed several alternatives to appease D.C. regulators and get their merger to pass.
 
The companies say the three proposals sent to the Public Service Commission of the District of Columbia would prevent the loss of more than $78 million in direct benefits for the District and Pepco customers, and allow the companies to complete the merger. The proposals offer commissioners considerable flexibility in determining how the funds are allocated to ensure the merger is in the public interest.
 
“We’re prepared to deliver the benefits of our original merger settlement or to accept all of the terms the Commission concluded would place the merger in the public interest,” said Exelon President and CEO Chris Crane. “We have also offered a third option that aims to balance the alternate terms the Commission offered in its Feb. 26 order with the views of some of the settling parties on the issue of rate credits to residential customers.”
 
The merger settlement Pepco and Exelon reached with the D.C. government and others in October 2015 set aside $25.6 million to offset residential customer rate increases through March 2019. However, the Commission removed that set-aside in its Feb. 26 order and concluded that the Commission should determine how those funds will be allocated across customer classes in the next Pepco rate case.
 
The companies asked the Commission for a decision by April 7.



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