[See entry above, and "follow up" posted below, for updates on this rapidly changing story!]
As reported by Crain's Chicago Business, the Washington Post, and Bloomberg, Exelon Nuclear is now poised to take over Mid-Atlantic utility Pepco. Exelon won the war, despite a determined public interest, ratepayer, and environmental group coalition winning all the battles against the controversial merger over the course of the past two years.
The D.C. Public Service Commission issued a 270-page Opinion and Order, and a press release.
As explained in the DC PSC press release, "the Commission ruled by a vote of 2 to 1 that if all settling parties accept the proposed conditions within 14 days from the date of the Order, the Revised NSA [Nonunanimous Full Settlement Agreement and Stipulation] and the Exelon/Pepco Merger will be approved as in the public interest without further Commission action."
PSC Commissioners Joanne Doddy Fort and Willie L. Phillips voted in favor of the merger; PSC Chairman Betty Ann Kane dissented, holding -- as she has since August 2015 -- that the merger is not in the public interest.
As reported by the Washington City Paper:
Opposing the merger, PSC member Betty Ann Kane said there was no evidence Pepco couldn't keep running without the purchase from Chicago-based Exelon. A merger, Kane said, would leave the PSC "forever playing whack-a-mole" to enforce the terms of the deal on Exelon.
As quoted in the Blooomberg article:
"This is a huge loss for consumers, a discouraging setback for the institutions to protect them and a sad commentary on how things are done in the District," said Allison Fisher, public outreach director for Public Citizen.
(See Allison Fisher's full statement here.)
As summarized by PowerDC:
THE PSC REJECTED EXELON'S PROPOSAL, BUT LEFT THE DOOR WIDE OPEN FOR THE MERGER TO GO THROUGH. CHAIR KANE, IN MINORITY ON DECISION TO OFFER NEW TERMS, STRESSED THAT MERGER IS FUNDAMENTALLY FLAWED AND NOT IN THE PUBLIC INTEREST.
PowerDC has issued the following action alert:
Today the D.C. Public Service Commission (PSC) proposed a settlement offer to Mayor Bowser and the Office of People’s Council (OPC) that removes rate protections for D.C. residents. If the mayor and OPC accept this bad deal it means Exelon will take over Pepco and your monthly electric bill will increase.
Tell Mayor Bowser and OPC not to sign off on this bad deal!
Per the PSC’s decision, the settling parties have 14 days to either accept or reject the agreement. This is our last chance to stop Exelon.
The initial settlement included $25 million dollars meant to protect residential customers from expected rate increases. This protection is not included in the PSC’s alternative settlement. The PSC’s terms would allow the money to be allocated in the next rate increase. This means that money could end up anywhere.
In Baltimore, BG&E has raised its rates four times since its takeover by Exelon. We can’t let that happen here.
We need to stop this bad deal and we need your help today!
Thank you,
The PowerDC Coalition
David Kraft, Executive Director of Nuclear Energy Information Service in Chicago, a 35-year watchdog on Exelon/Commonwealth Edison, also issued a statement.
For the past many long months, Beyond Nuclear has joined with public interest, environmental, and ratepayer allies in the PowerDC coalition to resist Exelon's takeover of Pepco at every twist and turn. This included the submission by Beyond Nuclear of extensive comments to the D.C. Public Service Commission, detailing the abuse Exelon has heaped on its own neighbors and workers (especially whistle-blowers) in Illinois, with a warning to not welcome such a rogue corporation to town. Given the permissive approval poised to take place, it is clear Beyond Nuclear's warnings fell on deaf ears, in terms of the 2-1 majority vote at the D.C. PSC.
The approval deal comes despite a warning by financial analysts that the Exelon-Pepco merger is value destructive, and underlying weakness threatens total returns.
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