- Exelon proposed to buy utility Pepco for $6.8 billion
- Agreement to include more customer credits, DC headquarters
Washington’s mayor is sharing with stakeholders a tentative agreement reached with Exelon Corp. on its $6.8 billion proposal to buy utility Pepco Holdings Inc., people with direct knowledge of the discussions said.
The draft agreement, presented by Mayor Muriel Bowser’s office to groups who have weighed in on the takeover before city utility regulators, would include more customer credits than Exelon and Pepco initially proposed, said the people, who asked not to be identified because the information isn’t public. It would also require Exelon to establish a second headquarters in Washington, where Pepco is already based, one of the people said.
Olivia Dedner, a spokeswoman for Bowser’s office, declined by phone to comment, referring to a statement issued on Sept. 28 confirming that the mayor was in settlement negotiations with Exelon and Pepco. Spokesmen for the two companies also declined to comment on details of the talks.
An agreement with the mayor’s office would mark a step forward in Exelon’s efforts to resurrect its bid for Pepco. The District of Columbia Public Service Commission rejected the deal in August, saying the terms wouldn’t benefit customers. Exelon would become the nation’s biggest utility by customer count should it win its appeal of the commission’s decision.
The mayor’s office said in its Sept. 28 statement that any settlement agreement would be filed to the Public Service Commission for approval.
Pepco rose 2.5 percent to $25.41 at the close Monday in New York. Exelon gained 1.6 percent to $30.30.