Photo by Matt Cohen.

Update: Pepco has released a statement in response to the opposition for the merger:

“Since announcing our proposed merger over a year ago, we’ve listened carefully to feedback in the District of Columbia. A diverse set of individuals and organizations — including District residents, business owners, organized labor, faith groups and local nonprofits — have voiced their support for the merger because they understand that it will provide substantial benefits to Pepco customers and communities, and to the District. A number of parties made constructive proposals, and in response, we substantially enhanced our proposed package to deliver even more value to the District and its citizens. Unfortunately, a few parties have taken a “just say no” position on the merger which, in our view, ignores the immediate and long-term benefits to customers and to the District that will not be available if the merger does not go forward.

“We believe that the merger is in the public interest and that the evidence supports this. The Public Service Commission will review the full record and rule in the interests of Pepco customers in the District. Pepco Holdings and Exelon have proposed a $34 million fund to be used for direct customer benefits in the District, and another $51 million in projected merger savings over 10 years will flow back to District customers through rates lower than they would be without the merger. We’ve enhanced our reliability performance commitments to reduce the frequency of outages by 36 percent and the length of outages by 40 percent in the District and have proposed stiffer financial penalties if we fall short of these goals. We’ve committed to keeping Pepco leadership, jobs and control local and to providing $16 million in charitable giving in the District over 10 years. We are committed to working to bring all of these benefits to the District when the merger closes.”

Original post:

Ever since the plans for a proposed merger between energy companies Pepco and Exelon was announced, a chorus of opponents has steadily grown. In fact, it seems hardly anyone is a fan of the merger, which would have Exelon—the largest owner of nuclear power plants in the U.S.—acquire Pepco for $2.5 billion more than the net book value of their assets.

An analysis released in January by the Institute for Energy Economics and Financial Analysis determined that it “would expose customers to rate increases aimed at supporting Exelon’s struggling business model.” Since that report was released, dozens of organizations and advocacy groups formed Power D.C. to oppose the merger and more than 20 ANCs have passed resolutions against the merger. Additionally, Councilmembers Mary Cheh (D-Ward 3), Charles Allen (D-Ward 6), David Grosso (I-At Large), and Elissa Silverman (I-At Large) have all publicly come out against it.

But the one person still mum about the whole issue? Mayor Muriel Bowser. During a press conference on the steps of the Wilson Building this morning, several ANC commissioners, along with Cheh, Allen, and Grosso all denounced the merger as a bad deal for D.C. and asked Bowser to join them in opposition.

“We’re calling on Mayor Muriel Bowser, who has been effectively silent on this matter,” said ANC 4B commissioner Judi Jones. “This is not a done deal, but it is a bad deal.”

Cheh, who was the first Councilmember to come out against the merger said that it’s against the public interest. “The end product will be a loss of jobs, increased rates, and lack of accountability,” Cheh said. Grosso, who is the latest Councilmember to join the opposition said that he spent the last few months researching the merger and talking with representatives from both Pepco and Exelon before taking a side on the issue. “As much as i’ve listened, I don’t see Exelon as a partner in the District of Columbia,” he said.

Still, Bowser hasn’t said anything about the proposed merger. A request for comment from the mayor’s office has yet to be returned.

But not all Councilmembers are against the merger. At-Large Councilmember Vincent Orange, according to Cheh, is in favor of the merger, “because he’s benefitting off of this.” Cheh also said that Council Chairman Phil Mendelson has Pepco stock, so he’s “recused himself from debate.”

If Bowser joined the opposition of the merger, it could have a huge impact on the deal, but Cheh—who has had no conversations with the mayor about it—isn’t hopeful, especially given that not all of her fellow Councilmembers are on the same page. “At the moment i’m pessimistic,” she said. “I’m not sure they’re putting the public interest first.”