Photo by Justin Hoffman

Photo by Justin Hoffman

The D.C. Public Service Commission has rejected the proposed merger of Pepco and Exelon this morning, saying that “it is not in the best interest of the people of the District of Columbia.”

The proposed $6.4 billlion of the two power companies drew the ire of numerous activists as well as several D.C. Councilmembers, most notably Mary Cheh (D-Ward 3), who was very vocal about her opposition to the proposed merger.

Earlier this year, a group of organizations opposed to the merger banded together under the name Power D.C. “The merger reverses the District’s progress on local renewable energy and energy efficiency, and it moves decision making for the District’s grid from here in D.C. to a powerful corporation’s headquarters in Chicago,” they wrote in an open letter. “Exelon’s corporate interests are not aligned with the policy objectives of the District of Columbia, and Exelon’s acquisition of Pepco is not in the public interest.”

In January, a report released by the Institute For Energy Economics and Financial Analysis found that the deal “would expose customers to rate increases aimed at supporting Exelon’s struggling business model and “undermine” the District’s recent push towards green initiatives.

In a statement, Power D.C. praised the Commission, saying “as the Commission recognized in its decision, the proposed acquisition would have been a substantial step backwards in the District’s efforts to move toward more sustainable electricity generation and greater reliance on local, renewable energy. It would have exposed D.C. residents and businesses to the risk of steeply rising electricity bills.”

Though the proposal for the merger won critical support in Montgomery and Prince George’s County, the three-person Public Service Commission rejected the merger in a 2-1 vote.

The decision was met with an uproarious applause in the Commission chambers, with Cheh saying afterwards that she’s “deliriously happy” about the decision.

Filed Under: exelon, pepco, Pepco-Exelon merger,