The Office of the Attorney General reached a settlement on behalf of the District and multiple parties regarding a request to Exelon Corporation and Pepco Holdings to merge.
Attorney General Karl A. Racine said in a statement:
“In participating in these negotiations, the Office of the Attorney General has been focused, in cooperation with our partners in the Executive Office of the Mayor and the Office of the People’s Counsel, on ensuring we negotiated an agreement that included immediate and tangible monetary benefits to the District’s residential ratepayers, including low-income ratepayers.
In addition, this agreement contains improved benefits with regard to sustainable, renewable energy production as well as enforcement and oversight mechanisms to ensure that Pepco and Exelon live up to their end of the bargain. Having achieved significant, immediate, tangible monetary benefits for our residents – and keeping in mind that the public will again have an opportunity to weigh in with the Public Service Commission on this revised merger plan – the Office of the Attorney General is of the view that the settlement agreement is in the public interest.”
So, what does this merger mean for District residents? Here are a few important facts you should know:
1. Provides a Total Customer Investment Fund of $72.8 million to benefit D.C. residents.
2. Includes a further $5.2 million commitment to support job-training programs for District residents.
3. OAG focused on achieving a deal that provides immediate, tangible, monetary benefit for residential ratepayers, including low-income rate payers: That benefit includes $14 million earmarked to provide a one-time reduction in the bil of every residential ratepayer; This includes low-income ratepayers who receive Pepco's Residential Aid Discount; This credit will come to approximately $50 for the average residential ratepayer; Residential ratepayers will see this credit within 60 days of the closing of the merger between Pepco and Exelon.
4. OAG took note of the concerns of the Office of People's Counsel, and worked closely with them to ensure the deal was in public interest.
5. Includes oversight mechanisms that will allow OAG to ensure that Pepco and Exelon abide by the settlement provisions: Pepco must file reports with the Public Service Commission indicating compliance with various settlement provisions; The Public Service Commission and the People's Counsel will have access to Pepco's books and records.
Read More: OAG Press Release