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All About Energy

The Energy Titan of the Mid-Atlantic - Exelon Corporation

Lacey Rosen Jun 24, 2016 7:56:47 AM
Pepco

After two years, Exelon Corporation has finally announced the completion of its merger with Pepco Holdings, Inc, an energy supplier that serves nearly 2.1 million customers.

 

The merger unites Exelon’s three electric and gas utilities: PECO (Pennsylvania), BGE (Maryland), and ComEd (Illinois) with Pepco Holdings’ companies: Atlantic City Electric (New Jersey), Delmarva Power (Delaware), and Pepco (Maryland & Washington DC).  The electric and gas utilities will now be managed by Exelon, but Pepco Holdings' companies will keep their respective names.  However, while promising lower rates and better customer service, the merger took place amidst many oppositions and fears. According to the executive director of DC Solar United Neighborhoods,"It would lead to higher prices and lower quality of service. It would restrict [the] ability to generate more power locally using solar and wind technologies" (DC SUN). [1] 

The Promise of Lower Electricity Rates and Better Customer Service

Pepco will continue to provide electricity and gas services to its customers. For all intents and purposes, it will be business as usual.  Existing rates and contracts will be honored and customers will experience no disruption in service.  With the merger, Pepco asserts that they will "be able to focus more on operational excellence, environmental sustainability, and customer service." [2] 

 

Perks for Exisiting Pepco Customers

The merger comes with some additional perks for existing Pepco customers.  Exelon has prepared a package of benefits that include:

  • Bill credits
  • Customer service support improvements
  • Additional investments (such as a renewable energy fund in the Washington, D.C., storm restoration resources, and a "Green Sustainability Fund")

The benefits add up to $430 million for the customers living in Maryland, Washington, D.C., Delaware, and New Jersey. [2] If you're a current customer, chances are you've already seen credits on your most recent bill.  

 

References:

[1] "Why D.C. should oppose the Exelon-Pepco merger" by Anya Schoolman https://www.washingtonpost.com/opinions/why-dc-should-oppose-the-exelon-pepco-merger/2014/08/01/ee7cc1e0-1727-11e4-9e3b-7f2f110c6265_story.html

[2] "Pepco Holdings and Exelon Close Merger Following Approval By The Public Service Commission Of The District of Columbia" http://www.pepcoholdings.com/library/templates/Interior.aspx?Pageid=87&id=6442458949

[3] Merger Documentation http://www.phitomorrow.com/wp-content/uploads/2015/10/Exelon-Pepco-Holdings-District-of-Columbia-Application-FC-1119-Motion-to-Reopen-and-Settlement-Agreement.pdf

 

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Topics: Energy Merger, Energy Benefits