Pepco operates through its subsidiaries Pepco, Delmarva Power and Atlantic City Electric.
The approval involves 46 conditions, including higher reliability standards, a $100 rate credit for Delmarva and Pepco residential customers and $43.2m for energy efficiency programs in Prince George’s and Montgomery counties and the Delmarva Maryland service territory.
The commission’s approval requires Delmarva Power and Pepco to meet performance standards between 2016 and 2020 within budget.
Under the terms of the merger, Delmarva and Pepco will work together with Exelon’s distribution utilities, including Baltimore Gas and Electric (BGE), Peco Energy and Commonwealth Edison.
Exelon and Pepco said in a joint statement: "Our proposal delivers significant economic benefits to Maryland customers, increases reliability, promotes energy efficiency and advances clean energy as part of a long-term commitment to improve service and modernize our grid."
The commission said that the proposed merger is expected to provide measurable benefits to ratepayers.
In March, Exelon and Pepco have entered into a settlement agreement with Montgomery and Prince George’s counties in Maryland, US.
The firms have agreed to provide the counties with bill credits, funding for energy-efficiency programs and renewables investments, low-income customer assistance and other provisions.
The transaction is due to secure approval from four states, the District of Columbia and the Federal Energy Regulatory Commission (FERC).
Image: Exelon’s acquisition of Pepco is subject to certain conditions and performance standards. Photo: courtesy of adamr / FreeDigitalPhoto.net.
