After two failed attempts, DC regulators on Wednesday approved a $6.8 billion merger between Exelon Corp and Delmarva Power owner Pepco Holdings - the final obstacle in the way of their deal.
The proposal to merge the two entities into the largest utility company in the country was approved by the DC commission in a two to one vote, to the relief of many state officials in Delaware.
Last spring, the Delaware Public Service Commission signed off on an agreement with Exelon Corp and Pepco Holdings that’s expected to bring Delmarva Power customers an estimated $49 million in direct benefits over a decade.
Now that the gates have lifted for the two companies to become one, ombudsman Heather Contant says Delaware’s commission will want to make sure that the merged entity follows through on its promises here.
“We’re going to be making sure that across the board things are equitable and our customers are going to be seeing similar benefits that other states’ customers are going to be seeing," said Contant. "Delmarva customers will see a credit on their bill. It’ll be a few months from now, but they will be seeing a credit.”
Public Advocate David Bonar says the merger should make more resources available to Delmarva customers, helping low to moderate income customers, reducing outages especially in times of natural disasters and stabilizing electricity rates for companies.
“One of the biggest drawbacks we’ve had in Delaware, with economic development, is the price of our electricity," said Bonar. "This will enable the governor and the economic development department to work harder to draw new business to Delaware.”
Contant adds it could have a positive impact on the environment through energy efficiency programs and greater customer access to renewable energy. In the coming months, Delaware’s commission says it will pull together a plan to make that happen.
