Even in its latest guise, the proposed settlement of the Exelon-Pepco merger fails the public-interest litmus test.
We’ve filed public comment to that effect with the District of Columbia Public Service Commission today (and we’ve written a cautionary letter and memo to the D.C. City Council, which of course holds considerable political sway).
The gist of our warning comes down to this:
The D.C. Public Service Commission is “the last man standing” against this merger. Exelon proposed buying Pepco Holdings—the utility that serves D.C. and parts of Maryland, Delaware and New Jersey—in 2014. The deal was approved by the Federal Energy Regulatory Commission and public service commissions of Maryland, Delaware and New Jersey—even against the advice of public-interest groups and the Maryland attorney general—and was rejected by the D.C. Public Service Commission this past August.
Bowser revived it by negotiating the settlement now before the D.C. Public Service Commission, which we hope will hew to the wisdom it expressed when it rejected the merger to begin with: “A utility that is a partner in the District is vastly preferable to a utility that must be continually compelled to further important District goals.”
Cathy Kunkel is an IEEFA energy analyst.