Exelon says merger opponents’ claims off-base

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Opponents who seek to block Exelon‘s acquisition of Pepco Holdings are ignoring the company’s track record as well as the benefits to ratepayers that would come with a merger, Exelon said.

The company issued its statement in response to a coalition of environmental and consumer watchdog and ecumenical groups who oppose the merger.

Exelon, which owns BGE, is seeking to acquire Pepco Holdings in a $6.8 billion deal. Included in that acquisition would be the utility company that serves 500,000 people in the suburbs of Washington, D.C.; Delmarva power, which serves 1.4 million people in Delaware and the Eastern Shore of Maryland; and Atlantic City Electric in southern New Jersey.

The coalition, led by the Chesapeake Climate Action Network, has called on the Maryland Public Service Commission to reject the proposed merger or impose conditions so severe it “will prompt the utilities to walk away from this deal.” The group cited concerns over an increase in political and economic power that would accrue to Exelon under an approved merger as well as what the groups consider Exelon’s poor track record regarding the use of renewable energy sources such as solar and wind power.

The coalition’s claims about the impact of the proposed merger of Exelon and Pepco Holdings are “inconsistent with Exelon’s track record and ignore the commitments Exelon has made as a condition of the merger to deliver substantial benefits to Maryland customers and communities,” said Paul Adams in an emailed statement.

Adams said the company is committed to the use of renewable energy sources and “is the country’s 11th largest wind producer, with approximately 1,300 megawatts of wind generation in 12 states, and has made major investments in solar energy. We are the largest producer of carbon-free energy in Maryland and an active developer of new sources of clean energy in the region. In fact, we are committed to developing 285 to 300 megawatts of new generation in Maryland – all of it clean – including 125 megawatts of wind and solar.”

“In addition, our Constellation business is one of the largest commercial solar developers in United States, with 170 megawatts of retail customer solar installations installed or under contract nationwide,” Adams said. “That portfolio includes 28 megawatts of retail customer solar installations in Maryland — including the state’s largest solar installation at Mount St. Mary’s University — placing the state third after California and Arizona, which are far and away the largest solar markets.”

The merger must be approved by each state where Pepco Holdings operates as well as by federal regulators. A hearing before the Maryland Public Service Commission could come as soon as February.

Critics of the deal said they are unsatisfied with Exelon’s efforts and record.

“Although Exelon holds some renewable energy assets, solar and wind power account for only 3.7 percent of the corporation’s total energy resources,” said Mike Tidwell, director of the Chesapeake Climate Action Network.

“Publicly, the company champions anti-renewable energy policies,” Tidwell said. “Exelon calls itself a “leading voice against the extension of the Production Tax Credit which is the primary federal incentive for promoting land-based wind energy. The PTC is a reasonable way of keeping wind costs down, and by opposing it, Exelon is helping to shift those costs to states like Maryland that have current renewable electricity goals in place.”