Exelon Closes in on $6.8 Billion Pepco Deal With Settlement
Exelon Corp. moved a step closer to completing its $6.8 billion takeover of utility Pepco Holdings Inc. by announcing a settlement with Washington’s mayor.
As part of the pact, Exelon would move the headquarters of its corporate strategy and utility operations to the U.S. capital, more than double a customer investment fund to $72.8 million and contribute $5.2 million to workforce development programs, a company filing shows. It would also buy 100 megawatts of power from wind farms, Mayor Muriel Bowser, joined by the district people’s counsel and attorney general, said at a press conference in Washington Tuesday.
The mayor’s backing is a step forward in Exelon’s efforts to resurrect its bid for Pepco. The District of Columbia Public Service Commission rejected the deal in August, saying the terms wouldn’t benefit customers. Exelon would become the nation’s biggest utility by customer count should it win its appeal of the commission’s decision. The agency’s approval would be the last regulatory hurdle for Exelon to complete the transaction.
“We have all had concerns about the long-term health and reliability of Pepco,” Bowser said at the press conference, adding that the district went back to the negotiating table to get a better deal. “We knew we had to do better for our city.”