Exelon Merger with Pepco denied by the D.C. Public Service Commission

Commission Denies Pepco/Exelon Merger Application

(Washington, D.C.) Today, the Public Service Commission of the District of Columbia (“Commission”) voted to deny an application for acquisition of Pepco Holdings, Inc. (PHI) by Exelon Corporation as not being in the public interest. In determining whether the Proposed Merger is in the public interest pursuant to D.C. Code §§ 34-504 and 34-1001, the Commission first considered the effect of the Proposed Merger transaction on each of the seven public interest factors. This included the effects of the transaction on ratepayers and shareholders, on competition in the local retail and wholesale markets and on conservation of natural resources and preservation of environmental quality. In doing so, the Commission identified how the effects of the Proposed Merger on each of the seven public interest factors would benefit or harm the public (including Pepco, District ratepayers, and the District community). The Commission then used its findings to assess the transaction as a whole. The Commission concluded that, taken as a whole, the transaction as proposed by Exelon and Pepco is not in the public interest. In a separate opinion, Commissioner Phillips concurred in part and dissented in part.

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