Exelon, Pepco File For Reconsideration Of Merger

(RTTNews) - Power companies Exelon Corp (EXC) and Pepco Holdings Inc (POM) on Monday said the companies have filed a petition for reconsideration of their merger with the Public Service Commission of the District of Columbia.

In August, the Public Service Commission of the District of Columbia rejected Exelon's $6.8 billion acquisition bid for Pepco, stating that the deal wasn't in the interest of the public.

In a statement today, Exelon and Pepco said the companies are working with the District of Columbia government to reach a settlement agreement. The Public Service Commission of the District of Columbia's approval was the last nod required for the companies to close the deal.

The proposed merger has already been cleared by Delaware, Maryland, New Jersey, Virginia and the U.S. Federal Energy Regulatory Commission.

Commenting on the filing of a reconsideration petition, Exelon CEO Chris Crane said, "We remain convinced our merger offers significant benefits to customers and the District, and we continue working to complete it."

"Since the Public Service Commission explained why it didn't approve the merger last month, we've worked to learn what's most important to the District - and we are responding."

The District of Columbia government on Monday confirmed that it is engaged in substantive discussions with the companies on a settlement agreement. It added that any settlement agreement would be presented in a new application to the PSC for review, public comment and final determination.

Exelon and Pepco announced their merger in April 2014, in a deal expected to create a leading power utility. The deal brings together Exelon's three top-performing electric and gas utilities - BGE, ComEd and PECO - and Pepco Holdings' electric and gas utilities - Atlantic City Electric, Delmarva Power and Pepco - to create the leading Mid-Atlantic electric and gas utility. The combined utility businesses will serve about 10 million customers and have a rate base of about $26 billion.