Washington DC mayor withdraws support for Pepco-Exelon deal

The PSC's counterproposal guts much needed protections against rate increases for D.C. residents and assistance for low-income D.C. ratepayers.

After the public service commission first rejected the merger last year, saying it would not benefit ratepayers, Bowser's administration had negotiated for the companies to pay the District of Columbia $78 million for its support for the merger from District, Delaware, Maryland, New Jersey and federal regulators.

The proposed acquisition of Pepco Holdings Inc. of Washington by Chicago-based Exelon Corp. would create the nation's largest electric utility as measured by the number of customers served.

Exelon chief executive Christopher M. Crane told analysts on an earnings call last month that if the proposed merger with Pepco was not completed by March 4, the company would walk away.