Exelon Corp. and Pepco Holdings, Inc., released a statement on Monday after the Washington, D.C., Public Service Commission (PSC) rejected their proposed merger.
The statement said the companies aim to continue working toward the merger and will appeal the decision. Prior to the PSC’s decision, the merger had been approved in five other states.
“We believe our merger proposal is in the public interest, and we will continue working to complete the merger, which all other jurisdictions have approved,” representatives from Exelon and Pepco said. “Not completing our merger would deny customers in the District of Columbia – as well as Delaware, Maryland and New Jersey – hundreds of millions of dollars in direct financial benefits, improved reliability and storm response, renewable energy projects, and commitments that will preserve their local utility’s role as a strong community partner and contributor to economic growth. We want to deliver these benefits to customers and will strive to make that happen.”
An article from the Chicago Tribune said the Pepco merger provides a significant benefit to Exelon. The article states that nuclear plants in Ill. have proven to be unprofitable for the company and this would be offset from revenue available from Pepco’s service areas in the D.C. area and in Md.
The commission cited in its decision its belief that the merger was not in the best interests of the community.
