Approval on the Exelon-Pepco merger could be just around the corner as reports indicate the companies have reached a tentative agreement with the Washington D.C. mayor’s administration.
Citing parties with direct knowledge of negotiations, Bloomberg reports Mayor Muriel Bowser has informed stakeholders of a settlement with Exelon Corp. and Pepco Holdings on the $6.8 billion proposed merger.
Though the details have not been publicly released, conditions of the settlement are believed to include more customer credits than were initially proposed and the establishment of a second headquarters in Washington.
The D.C. Public Service Commission must still approve any deal. That decision could come Oct. 7 when regulators are next expected to take up the proposal.
In August, the D.C. PSC unanimously rejected the merger, which had already been approved by the Federal Energy Regulatory Commission and utility regulators in Delaware, Maryland, New Jersey and Virginia. D.C. regulators, saying the companies failed to show how the merger was in the public’s best interest.
Exelon and Pepco filed a petition Sept. 28 asking the D.C. PSC to reconsider the rejection.
If the merger is approved, the new company would serve an estimated 9.8 million customers, becoming the largest utility in the country.