Exelon Corp. and Pepco Holdings submitted a filing this week with the District of Columbia’s Public Service Commission (PSC) that modifies terms in a recent settlement over their proposed merger.
Both companies are aiming to complete a merger that had been rejected by the PSC in an earlier form last summer. This filing with the commission accounts for a settlement that was reached with the local government and local organizations in February that would have set aside $25.6 million to offset anticipated rate increases as a result of the merger, but there was concern over who should decide how these funds would be used. Exelon said in this week's announcement on the latest filing that this was removed and noted that the PSC would be the appropriate group to determine how funds would be allocated.
In this filing, the companies offer three routes that include terms and conditions that were suggested by the commission and the original settlement.
"The commission and the settling parties are in agreement that the value of the overall benefits we have committed to the District is appropriate -- it's essentially a question of how those benefits are allocated for the District," Joe Rigby, chairman, president and CEO of Pepco Holdings, said. "To safeguard these benefits for the District and its residents, we are putting before the commission several options that will allow the merger to move forward."
Estimates from Exelon and Pepco indicate that the merger would offer approximately $78 million in economic benefits for Pepco customers and the D.C. area. A decision is expected from the commission by April 7.
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