GSA Moves to Block Exelon-Pepco Merger
The GSA has joined the chorus of those looking to block the proposed merger of utility giants Pepco and Exelon.
After recently indicating its support of the deal, the GSA reversed course and filed a brief urging federal regulators to reject it. The GSA cites “disparate treatment” of residential ratepayers and commercial ratepayers, DCist reports. A response from Exelon and Pepco, in the form of a joint statement, reads in part "all customers, including the GSA, will benefit from merger commitments now before the Public Service Commission."
According to the brief filed by the GSA’s attorneys, the DC Public Services Commission used a seven-factor test to determine the proposed merger is not in the public interest. Specifically, the GSA contends that the merger will provide “no direct and tangible benefits to Pepco’s nonresidential customers” and could expose ratepayers “to uncapped potential financial risks associated with the proposed microgrid.”
Exelon’s proposed $6.4B takeover of Pepco was unanimously rejected by the PSC back in August. Mayor Bowser’s administration has since voiced support for the merger in October, reversing course on its previous opposition, after some changes to the deal were made. [DCist]