Exelon Corporation, Pepco Holdings, Inc., Potomac Electric Power Company and Delmarva Power & Light Company filed an application with the Maryland Public Service Commission on August 19, 2014 requesting approval for Exelon to exercise “substantial influence over the policies and actions of Pepco and Delmarva Power.” If the acquisition is approved, Exelon will control electric delivery service to approximately 1.97 million Maryland ratepayers.
In reviewing the application, the Commission must determine whether Exelon’s acquisition of PHI is in Maryland’s public interest, whether the acquisition will create benefits for Pepco and Delmarva Power’s ratepayers, and whether the acquisition will create no harm to PHI Utilities’ ratepayers. Exelon, PHI, Potomac and Delmarva tout their proposal to provide a $50 rate credit to PHI Utilities’ ratepayers through a customer investment fund, their charitable support, and their employment retention plans during the merger integration as evidence that the acquisition should be approved. However, these commitments are insufficient.
The proposed acquisition fails to meet even one of the standards imposed by Maryland’s public utilities law. The evidence in this proceeding conclusively establishes that the acquisition
- Is not in the public interest,
- Offers no tangible benefits to customers, and
- Will be harmful to consumers.
The General Assembly and the Commission clearly consider renewable energy and energy efficiency to be an important aspect of the public interest.
In contrast to this support of clean energy, the evidence concerning Exelon’s position on a variety of renewable energy and energy efficiency issues conclusively establishes the difficulties Maryland will face if Exelon is authorized to acquire PHI. As a result, the Commission should deny Exelon’s request to acquire PHI. However, if the Commission decides to approve the acquisition, the Environmental Intervenors request that, at a minimum, the Commission adopt the conditions set forth in this filing to limit, as much as possible, the harms to the public interest that will result from Exelon’s acquisition of PHI.
For additional legal filings, see the case docket on the Commission’s website.