BALTIMORE, MD – The Maryland Public Service Commission (PSC), in a 3-2 decision, announced the approval, with conditions, of the application to merge Exelon Corporation (Exelon), Pepco Holdings, Inc. (PHI), Delmarva Power & Light Company (Delmarva) and Potomac Electric Power Company (Pepco)
The Commission’s approval, announced Friday, May 15, lists 46 conditions, including higher reliability standards, a $100 rate credit for Delmarva and Pepco residential customers and $43.2 million for energy efficiency programs in Prince George’s and Montgomery Counties and the Delmarva Maryland service territory. The PSC approved two settlement agreements between the joint applicants and multiple parties in the case with some modifications. In approving the merger, the commission stated “we find that the proposed merger, as conditioned by this order, is consistent with the broader public interest, will bring specific and measurable benefits and no harm to ratepayers.”
A major condition of the merger is a requirement that Delmarva and Pepco meet aggressive reliability performance standards from 2016 through 2020 within projected budget targets and subject to penalties for non-compliance.
Under the merger, Delmarva and Pepco will share support functions with Exelon’s other distribution utilities, including Baltimore Gas and Electric Company.