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DC mayor announces settlement in Exelon, Pepco merger

WASHINGTON — Power companies Exelon and Pepco have negotiated a settlement with District of Columbia officials on a proposed merger.

D.C. Mayor Muriel Bowser announced the settlement Tuesday. Bowser says that in addition to other terms, Exelon will invest $78 million in the city, up from a proposed $14 million. The city had previously rejected the companies’ proposed $6.8 billion merger.

RELATED: Exelon closes in on $6.8 billion Pepco deal with settlement

The companies had argued that the merger would stabilize electricity rates and enhance the reliability of electric and gas service. Opponents had argued the merger wouldn’t benefit ratepayers.

The city was the only jurisdiction to reject the proposed merger between Chicago-based Exelon and Washington-based Pepco. Maryland and Delaware regulators approved the deal.

The settlement still has to be reviewed by District of Columbia regulators.