D.C. Council members object to Pepco-Exelon merger

Some D.C. Council members are objecting to a business 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 made it clear they are strongly 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 voiced their own objections to the proposal. In their letter to the Public Service Commission of the District of Columbia, the council members said that the merger is confusing, and presents a real conflict because Exelon is a producer of electricity, while Pepco is in the business as a distributor. The letter concludes that the only ones who would benefit from the merger would be Pepco shareholders and Exelon. Pepco released a statement saying that in a recent agreement with Prince George’s and Montgomery counties, customers would receive a one-time $50 bill credit, investments in increased reliability and green energy, and other benefits. The Public Service Commissions in both Maryland and the District will decide if the deal will go through or not.