WASHINGTON (AP) — Power companies Exelon and Pepco have negotiated a settlement with District of Columbia officials on a proposed merger.
D.C. Mayor Muriel Bowser announced the settlement Tuesday. Bowser says that in addition to other terms, Exelon will invest $78 million in the city, up from a proposed $14 million. The city had previously rejected the companies’ proposed $6.8 billion merger.
“I sent my team to negotiate with Pepco and Excelon and to keep negotiating until they got the deal that puts District residents and rate payers first,” Bowser says.
Under terms of the deal Bowser says a $25 million dollar fund will be used to create an offset program to will protect rate payers from any rate hikes through March 2019.
The mayor also says Excelon has also agreed to provide a rebate to every DC homeowner.
“Excelon will distribute $14 million to residential customers within 60 days of the merger which will result in a one-time credit of approximately $50 on average for every residential customer,” Bowser says.
The companies had argued that the merger would stabilize electricity rates and enhance the reliability of electric and gas service. Opponents had argued the merger wouldn’t benefit ratepayers.
A public citizen’s group calling itself “Power D.C.” opposes the merger and brands the settlement “a backroom deal” which shuts out the public.
But DC People’s Counsel Sandra Mattavous-Frye, an independent advocate for D.C. consumers, who opposed the initial merger offer approves of the negotiated settlement.
“The applicants came back and they took us seriously, they made major concessions,” Mattavous-Frye says.
Mattavous-Frye says the settlement is good for consumers because it includes immediate rate relief and firm and trackable reliability commitments, low-income consumer protections and jobs for our undeserved and underrepresented communities,” Mattavous-Frye says.
“I believe this proposal is good for our economy, good for our environment and I’m asking the Public Service Commission to support the merger,” says Mayor Bowser.
The city was the only jurisdiction to reject the proposed merger between Chicago-based Exelon and Washington-based Pepco. Maryland and Delaware regulators approved the deal.
The settlement still has to be reviewed by District of Columbia regulators.
The Associated Press and WTOP’s Dick Uliano contributed to this report.
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