Pepco, Exelon Try To Save Merger One More Time

Pepco Holdings, Inc. (NYSE: POM) and Exelon Corporation (NYSE: EXC) have been in talks regarding a proposed $6.8 billion merger, and their conversation keeps getting interrupted.

Unfortunately, the merger has been stopped in its tracks after a series of delays, as the D.C. Public Service Commission rejected a proposal in February.

Friday marked a deadline between the companies and the seven other parties involved to agree to terms or propose alternatives.

There And Back Again: Politicians, Regulators, Commissions And Companies

According to the Washington Post, the process has been riddled with back-and-forth proposals and rejections, from Exelon's refusal to "sweetening the pot by offering the District any more money" to the company's ardent statements that it would "support efforts by D.C. regulators and politicians to come up with a new plan." Additional zig-zags have included the Commission's "no" to a negotiated plan put forth by D.C.'s mayor, Muriel Bowser. Following that "no," regulators again offered a counter-proposal – one "that did not guarantee holding down rates," which was in turn shut down.

Newest Filings

On Monday, Exelon and Pepco submitted additional filings, which, according to the Washington Post, "appeared certain to again delay a final decision in the merger."

These new filings addressed the Commission's concerns regarding the latest counter-proposal, "Exelon and Pepco said that if rate relief is the biggest concern, city regulators and politicians could direct a large majority of the $78 million to that cause – away from microgrid projects and other environmental efforts," the Washington Post summarized.

Exelon's Christopher Crane commented, "This alternative proposal provides flexibility in determining a path forward for the merger, addressing the guidance the Commission provided in its order and the desire to protect District residents, including those most in need, from rate increases."

The utilities companies have requested a ruling by the Commission no later than April 7.