Steve Burns
WMAL.com
WASHINGTON – (WMAL) After hailing a rejection of the deal last month, D.C. Mayor Muriel Bowser is now in support of a merger agreement between D.C.-based Pepco and electrical giant Exelon, based in Chicago. Bowser said new settlement terms and concessions from Exelon made the deal worthwhile.
“Under the agreement, Exelon will invest $78 million in the District, more than five times the $14 million they originally proposed,” Bowser said. That money will be used for sustainability standards, clean energy initiatives, and jobs, she said.
Exelon agreed to relocate 100 jobs into the District.
“The merger will improve reliability and service for Pepco customers, strengthening the connection between people who generate their own power, and the grid, and allows micro-grids to increase reliability by reducing demand on the full grid.”
The deal also includes a rate freeze through 2019, and a one-time credit of about $50 for each customer, Bowser said.
“I believe this settlement is in the best interest of the District now, and in the future,” she said.
“The Commissioners have the right to continue to vote against the deal even with the Mayor’s support, but I believe that’s going to be unlikely,” said Loyola University Maryland Professor Karyl Leggio. “I think (Exelon) was rather blindsided by the rejection from the Public Service Commission,” so they were more willing to come back to the table.
Leggio said Exelon initially made fewer concessions to D.C. than they had to other jurisdictions. “One of the surprises with the D.C. deal is Exelon didn’t try harder to negotiate with constituents early on,” she said.
Now, according to Leggio, it’s almost certainly a clear road ahead for the deal.
“The ability to clean up energy is there. The technology is there. Exelon just has to apply it.”
Copyright 2015 by WMAL.com. All Rights Reserved. (PHOTO: Pepco, Exelon)
