WASHINGTON — The decision by D.C. regulators to reject a proposed merger between Pepco Holdings and Chicago-based Exelon Corp. puts the $6.8 billion deal in jeopardy.
So where does that leave power consumers? Here are answers to some common questions Pepco customers might have.
Q: What happens now?
Nothing in the short-term. Rates won’t change and Pepco will continue to be the power company for its current D.C. and Maryland customers. The two companies have 30 days to appeal the D.C. Public Service Commission’s decision.
Q: Could rates change if the deal doesn’t go through?
Pepco, Exelon or any other company have to seek approval for a rate increase through the statepublic service commissions, which allows for public input, before any rates would change.
Q: What are the companies involved in the deal?
Pepco Holdings Inc. serves almost 2 million customers in D.C., Maryland, New Jersey and Delaware. The deal would have also sold subsidiaries Pepco, Delmarva Power and Atlantic City Electric.
Exelon’s Constellation business provides “energy products and services” to more than 2.5 million customers. The energy provider also owns utilities BGE, ComEd and PECO, which combined serve another 7.8 million customers in Maryland, northern Illinois and southeastern Pennsylvania, according to the company.
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It was a good decision. In general monopolies are bad for the consumer.
ReplyDeleteComcast is a good example of this!
Comcast pays the DNC
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ReplyDeleteDon't fret. They'll find another way to put the screws to us.
I'm guessing some new provider will be created to provide the DC service thus permitting PEPCO to drop DC from its service area, on paper. May/may not pass muster in Annapolis.
PHI will sell of the distribution part of Pepco to the co -op then the deal will happen. Just look at the so called merger when Phi was formed and they sold the eastern shore side of Va to the co - op. 1. Va eastern shore did not make much money for them and DC is the same way with all the non pays over there. so in time it will happen. Exelon will get the region.
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