D.C. Regulators Reject Exelon, Pepco Merger

(RTTNews) - Exelon: D.C. Regulators Reject Acquisition Bid For Pepco

Regulatory agency The Public Service Commission of the District of Columbia on Tuesday rejected utility company Exelon Corp (EXC)'s $6.8 billion acquisition bid for Pepco Holdings Inc (POM).

The Public Service Commission of the District of Columbia's approval was the last nod required for the companies to close the deal.

The companies will have 30 days to ask for the commission to reconsider its decision.

In a statement, Exelon and PepCo said, "We are disappointed with the Commission's decision and believe it fails to recognize the benefits of the merger to the District of Columbia and its residents and businesses."

"We continue to believe our proposal is in the public interest and provides direct immediate and long-term benefits to customers, enhances reliability and preserves our role as a community partner. We will review our options with respect to this decision and will respond once that process is complete," the companies said.

Already, the Federal Energy Regulatory Commission as well as regulators in Delaware, Maryland, New Jersey and Virginia have approved the deal.

D.C. regulators opined against the management structure of the new company, which they said would diminish Pepco's influence and make their job of regulating the utility more difficult.

The regulators also said they believe that a conflict of interest at the company could prevent Pepco from becoming a "cleaner and greener" utility that uses more renewable energy.