WASHINGTON – Negotiations on a deal to revive the merger between Pepco and Exelon, which would create one of the largest utilities in the country, are reportedly making progress, as Exelon promises rate relief and a new headquarters.
People with knowledge of the discussions tell Bloomberg that a draft deal between D.C. Mayor Muriel Bowser’s office and Exelon would include more customer credits, and keep a headquarters in the District.
The mayor’s office will only say that negotiations are continuing.
D.C.’s Public Service Commission rejected the initial deal in August as not being in the public interest.
Opponents say the original $6.8 billion deal would do nothing to help D.C. residents, businesses and workers and that it could hurt the environment.
The companies say the deal would boost reliability.
The District is the only jurisdiction to reject the deal, which has already been approved in Maryland and other states. The companies filed a motion Monday asking the D.C. Public Service Commission to reconsider its decision.
On Wednesday, the D.C. government, Pepco and Exelon filed a motion to extend the deadline for a response to that motion until they could reach a deal because they are “actively engaged in settlement discussions.” The motion asks that the commission put the proceedings on hold until early next month.
Friday afternoon, the commission agreed to at least delay what would have otherwise been a deadline of this Monday to no sooner than the end of the coming week.
The commission expects to rule Wednesday on whether or not to put the proceedings on hold to allow more time for a negotiated agreement that is expected to be presented as a new application.
Maryland’s Public Service Commission approved the deal with 46 conditions that the companies must meet. If the District approves the deal, it would be able to go through.
If the merger is approved, the newly combined company is expected to serve about 9.8 million customers – more than any other utility in the country. Chicago-based Exelon is a major electricity generator in addition to running BGE in Maryland, PECO in the Philadelphia area and ComEd in the Chicago area.
