IEEFA Research

Corporate Strategy at D.C. Ratepayer Expense: Exelon’s Proposed Acquisition of Pepco Holdings

Corporate Strategy at D.C. Ratepayer Expense: Exelon’s Proposed Acquisition of Pepco Holdings

We’re releasing a new report today that explains how Exelon Corp.’s proposed $6.8 billion acquisition of Pepco Holdings would hurt ratepayers in Washington, D.C. Our report, “Exelon’s Proposed Acquisition of Pepco: Corporate Strategy at Ratepayer Expense,” is posted here. Here’s a snapshot: The deal, if it goes through, would expose customers to rate increases aimed at […]

January 21, 2015 Read More →

More News and Commentary

Decision on Exelon Proposed Takeover of Pepco Unlikely Before 2016

Darren Sweeney for SNL: Exelon Corp. and Pepco Holdings Inc. will likely have to wait until 2016 for a final decision on their effort to revive their proposed $6.84 billion merger. In addition to establishing a new timeline for discovery and data requests, the revised proposed schedule asks that testimony in support of the settlement […]

October 20, 2015 Read More →

D.C. Mayor Flip-Flops on Merger as Exelon Offers $78 Million in Incentives

Tom Heath in the Washington Post: Exelon chief executive Christopher M. Crane struck a conciliatory tone at Bowser’s announcement. “We really do appreciate the responsibility of serving the nation’s capital, and we consider it an honor,” Crane said. “We’re here to serve you, at the will of the commission.” He is offering a grab bag […]

October 7, 2015 Read More →

Exelon’s Appeal of D.C. Refusal to Allow Electric-Company Takeover Dodges the Core Doubts

In It’s Most Recent Salvo, a Chicago Company Does Not Acknowledge Why It Really Wants to Get Its Hands on Pepco

In its petition this week asking the District of Columbia’s Public Service Commission to rethink its decision not to let Exelon Corp. take over Pepco Holdings, Exelon ignores the underlying reasons for why the merger would be a bad deal for D.C ratepayers. The appeal makes no mention, for instance, of the elephant in the room: […]

September 29, 2015 Read More →

Exelon Seeks Reversal of D.C.’s Merger Denial

Amy Poszywak for SNL: Exelon, according to spokesman Paul Adams, is planning to file a petition for reconsideration of the deal with D.C. regulators but is not yet at liberty to discuss the specifics of their approach. Sept. 28 marks the end of a 30-day window that the companies were given to make the request […]

September 25, 2015 Read More →

Exelon and Pepco Will Challenge D.C. Decision Against Merger

Joseph N. DiStefano for the Philadelphia Enquirer: The utilities say they will challenge the Commission’s order: “We remain convinced the decision fails to recognize the substantial immediate and long-term benefits of our merger proposal to citizens, businesses and communities” in D.C., the utilities said in this joint statement. “We will continue working to complete the […]

September 2, 2015 Read More →

Moody’s: Exelon-Pepco Appeal Has 50% Chance of Success

Amy Poszywak for SNL: Following the rejection of Exelon Corp. and Pepco Holdings Inc.’s proposed merger by Washington, D.C., regulators, Moody’s on Aug. 31 said it assumes a 50% probability the deal will close. “The rejection of the Exelon/Pepco merger application is credit negative for both companies because the outcome was a surprise, not because […]

September 2, 2015 Read More →

How Exelon Lost Its Bid to Win D.C.

Kelly Andrejasich for SNL: Concern about Potomac Electric Power Co., and thus District of Columbia ratepayers, getting swallowed up by a much larger corporate structure played a role in the decision by D.C. regulators to reject Exelon Corp. and Pepco Holdings Inc.’s proposed merger. The merger would combine Exelon’s three electric and gas utilities — […]

August 31, 2015 Read More →

Appeal Expected in D.C. Decision to Block Exelon-Pepco Deal

Amy Poszywak for SNL: Wells Fargo analyst Neil Kalton said Aug. 26 he does not believe the companies would be able to substantially change their existing proposal to the commission without a rehearing. The law in D.C. stipulates that the request state “specifically the errors claimed as grounds for such reconsideration,” and that once it […]

August 27, 2015 Read More →

D.C.’s ‘Momentous’ Rejection of Exelon Takeover

Nick Cunningham for Yahoo Finance: The rejection was momentous, as Exelon had already received approval from neighboring states in the region, including Virginia, Maryland, New Jersey, Delaware, along with the regulatory approval from the Federal Energy Regulatory Commission (FERC). The shareholders of Exelon and Pepco had also given their endorsement. But DC regulators took heavier […]

August 26, 2015 Read More →
The D.C. Public Service Commission Does the Right Thing in Blocking the Exelon-Pepco Merger

The D.C. Public Service Commission Does the Right Thing in Blocking the Exelon-Pepco Merger

A Deal That Was Not in Ratepayers’ Best Interests and That Would Have Caused Lasting Damage

In blocking the merger of Exelon Corp. and Pepco Holdings today, the D.C. Public Service Commission summarized its decision in language expressing a profound truth about the proposed merger: “Unlike a rate case, this decision will effect a permanent change in the ownership and control of the District’s local electric distribution company. A rate case […]

August 25, 2015 Read More →