CHICAGO and WASHINGTON, D.C. (March 10, 2015) - Exelon Corporation (NYSE: EXC) and Pepco Holdings Inc. (NYSE: POM) today announced that they have reached a settlement agreement with The Alliance for Solar Choice (TASC) in the proceeding before the Maryland Public Service Commission (PSC) to review the two companies' proposed merger, which was announced on April 30, 2014.
The agreement with TASC, which represents the nation's leading rooftop solar companies, includes provisions to facilitate the introduction of more on-site renewable generation in Maryland and improve cooperation among solar developers and Pepco Holdings' utilities. The settlement, which is subject to the approval of the PSC, was filed by Exelon, Pepco Holdings and TASC, which is among the stakeholder groups participating in the merger proceedings before the PSC.
"This settlement is an extension of Exelon's commitment to advancing the development of clean energy in Maryland, including solar and other renewable sources," said Chris Crane, Exelon president and CEO. "The agreement will add further transparency and ease to the interconnection process for distributed-generation resources in Pepco and Delmarva Power territories. On the commercial side of our business, we operate 33 megawatts of solar in Maryland, including the state's largest solar facility, and we are in the process of developing 285 to 300 megawatts of additional clean generation statewide, including a mix of wind and solar."
TASC leads advocacy across the country for the rooftop solar industry. Its members and their customers are responsible for more than 100,000 residential, school, government and commercial solar energy installations across the country.
"This agreement addresses the importance of ensuring consumers have absolute transparency into their utilities' interconnection process for rooftop solar," said Chris Ercoli, TASC's director for the Mid-Atlantic Region. "Maryland will see both economic and environmental benefits as more distributed renewable energy projects come on line."
Under the settlement agreement, following the merger, Pepco Holdings utilities will make it easier for customers and solar developers to connect on-site renewable generation and energy-storage projects to the distribution grid. Provisions include posting service territory maps on utility websites that help solar developers identify desirable locations for new installations. The companies will also collaborate in studying ways to improve the engineering criteria for connecting renewable systems and energy storage to the grid.
The merger will bring together Exelon's three electric and gas utilities - BGE, ComEd and PECO - and Pepco Holdings' three electric and gas utilities - ACE, Delmarva Power and Pepco - to create the leading mid-Atlantic electric and gas utility.
In addition to the Maryland Public Service Commission, the merger requires approvals by the Public Service Commission of the District of Columbia and the Delaware Public Service Commission. On Feb. 13, Exelon reached a settlement agreement with staff of the Delaware Public Service Commission and other stakeholders, and the agreement is pending approval by the Commission. Following the expiration of the U.S. Department of Justice's review period on Dec. 22, 2014, the Hart-Scott-Rodino Act no longer precludes completion of the merger.
The transaction was approved by the New Jersey Board of Public Utilities in February, the Federal Energy Regulatory Commission in November, the Virginia State Corporation Commission in October and PHI stockholders in September. The companies expect to complete the merger in the second or third quarter of 2015. For more information about the merger or to download the settlement agreement, visit www.phitomorrow.com.