Exelon, Pepco more than double merger incentives for D.C.

Dive Brief:

Exelon and Pepco Holdings have submitted an enhanced package of merger benefits for District of Columbia ratepayers in an attempt to sway support for their proposed deal, more than doubling the funds available to the city's customers.
The deal would be similar to those offered in New Jersey and Delaware, and would result in bill credits and enhanced energy efficiency offerings.
Though the merger has passed review in several states, support in Washington, D.C., has been tepid and a recent survey found just 6% supported the deal.

Dive Insight:

Attempting to win over some of the harshest critics of their proposed merger, Exelon and Pepco have filed with D.C. regulators a plan for millions of dollars to go towards bill credits, efficiency measures and low income support. The improved package of benefits was outlined in testimony filed with the Public Service Commission of the District of Columbia and aligns with settlements achieved in New Jersey and Delaware, the companies said.

"We’ve listened to the feedback of stakeholders in the District of Columbia,” said Exelon President and CEO Chris Crane, “and have substantially enhanced our proposed package to deliver even more value to "Pepco customers and their communities.”

Exelon and Pepco Holdings have offered to increase the value of the District of Columbia customer investment fund to $33.75 million from $14 million. The PSC will determine the use of the funds for direct customer benefits, such as rate credits, energy efficiency or low income assistance. The commitments provide an upfront customer benefit that is 2.4 times the value of the companies’ original proposal, the companies said.

And in addition to the near-term benefits, the two utility companies said another $51.2 million in projected merger savings over 10 years will flow back to District customers through rates lower than they would be absent the merger.

In their PSC filing, Exelon and Pepco Holdings also enhanced their commitments for reducing the frequency and duration of power outages in the District. The companies committed to improving Pepco’s reliability performance to meet or exceed the PSC’s existing standards for the three-year period from 2018 to 2020.

If approved, the merger would bring together Exelon’s three electric and gas utilities – BGE, ComEd and PECO – and Pepco Holdings’ three electric and gas utilities – Atlantic City Electric, Delmarva Power and Pepco – to create the leading Mid Atlantic electric and gas utility.

The merger has already passed muster in New Jersey and Virginia, as well as winning support from FERC. A recent Delaware settlement is expected to help push the deal through in that state as well. In Maryland, which must also review the deal, local news outlet Bethesda Now reported opposition groups mailed out 1,500 sets of comments last week opposing the merger.