WASHINGTON — Some D.C. Council members oppose a deal that would allow a Chicago-based company to purchase local utility provider, Pepco.
In a letter to District regulators, D.C. Council members Mary Cheh, Charles Allen and Elissa Silverman have made clear they’re opposed to the $6.8 billion deal that would allow Exelon to buy Pepco.
Earlier this week, Maryland’s Office of the People’s Counsel filed a brief opposing the deal, and environmental and civic groups in D.C. and Maryland have registered their objections to the plan.
In their letter to the Public Service Commission of the District of Columbia, the council members said they have “grave doubts” that the merger would be in the public interest. Also, the letter stated that the concerns raised by environmental groups and the District’s Office of the People’s Counsel are “deeply troubling.”
Additionally, the letter says the merger presents some real conflicts as Exelon is a producer of electricity, while Pepco is in the business as a distributor.
“A producer looks for the highest prices for its product, but a buyer looks for the lowest prices,” the council members write. That dynamic sets up a conflict of interest should Pepco and Exelon merge, according to the letter.
The letter concludes that the only two beneficiaries from the merger would be Pepco shareholders and Exelon.
Earlier this week, Pepco released a statement saying that in a recent settlement with Prince George’s and Montgomery counties, customers would get — among other things — a one-time $50 bill credit, investments in increased reliability and that there would be investments in green energy.
The Public Service Commissions in both Maryland and the District will have the final say on whether the deal will go through.
WTOP’s Kate Ryan contributed to this report.
