Exelon Corporation (NYSE:EXC) announced on Monday, that it had filed a request with the Washington DC Public Service Commission (PSC) to reconsider its proposal to acquire Pepco Holdings, Inc.
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Critics of Exelon last month hailed the regulatory ruling, saying the company was getting its comeuppance for lobbying to raise the prices that Illinois customers pay and for its stance against renewable energy sources generated by wind and solar power.
The companies, which are seeking to create the country’s biggest power distributor, was in talks with Mayor Muriel Bowser’s office in hopes of hammering out a settlement that the companies could take to the Public Service Commission.
The District of Columbia government on Monday confirmed that it is engaged in substantive discussions with the companies on a settlement agreement.
The acquisition was approved by regulators in all remaining jurisdictions: New Jersey, Maryland, Delaware, Virginia and FERC.
Exelon Corporation failed to receive support from stakeholders in the DC district.
“We agree with the Public Service Commission that Exelon and Pepco did not demonstrate an adequate commitment to affordability, reliability and sustainability in their pending merger application”, Young said.
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. “Any settlement agreement would be presented to the PSC for review, public comment and final determination”.
“We remain convinced our merger offers significant benefits to customers and the District, and we continue working to complete it”, said Chris Crane, president and CEO of Exelon. “The District deserves a healthy public utility that serves residents and ratepayers in a cost effective, dependable and environmentally sound manner”.
Bowser had declined to confirm whether she was engaged in negotiations September 25, the day after opponents of the deal rallied outside her office.
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The commission has 30 days to rule on Exelon and Pepco’s appeal.
