DC regulators reject Exelon-Pepco deal but could reconsider

AP News
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Posted: Feb 26, 2016 11:02 AM

WASHINGTON (AP) — District of Columbia regulators have again rejected a proposed $6.8 billion merger between power companies Exelon and Pepco, but they say they are willing to reconsider the deal.

The D.C. Public Service Commission voted Friday to impose a series of conditions on the companies. If those are met, two of the three commissioners said they would vote in favor of the merger, leading to its approval.

Approval by the District represents the final regulatory hurdle for the merger, which would create a large electric and gas utility in the mid-Atlantic region, serving 10 million customers.

After the initial rejection, the companies negotiated a $78 million settlement with city officials that includes protection for ratepayers, job guarantees and investments in renewable energy. But regulators said the settlement didn't go far enough.