The Washington, DC, Public Service Commission rejected the proposed $6.9 billion merger between Baltimore Gas and Electric parent Exelon and its neighbor Pepco Holdings on Tuesday, taking advocates by surprise and sending the companies’ stocks plummeting.
The merger had already been approved by five other regulatory agencies, including the Maryland Public Service Commission, which voted 3-2 to accept it in May. D.C. was the last jurisdiction to rule on the proposed merger. Exelon and Pepco have 30 days to ask for a rehearing.
The merger faced staunch opposition from a wide array of advocates, neighborhood groups, the Maryland Office of People’s Counsel, the Maryland Energy Administration and Maryland Attorney General Brian E. Frosh, who all argued that it wasn’t in the public interest.
But the companies argued that the merger would mean smaller rate increases in the future for BGE and Pepco customers as well as better reliability for outage-plagued Pepco customers and a faster storm damage response in both service areas.
Full content: CNBC
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