Exelon Corporation and Pepco Holdings Inc. announced Wednesday that they have reached a settlement with the state Board of Public Utilities to review the two companies' proposed merger.
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, according to a news release.
The settlement on the proposed merger, which was announced on April 30 of last year, is subject to the approval of the commissioners of the state board.
The settlement includes many provisions designed to benefit Atlantic City Electric customers such as:
- A $62 million Customer Investment Fund to be used for direct rate credits to ACE customers within 60 days of merger closing.
- A program to provide $15 million in energy-efficiency savings to ACE customers over five years.
- Commitments to improve ACE's reliability performance to levels that exceed current state requirements for frequency and duration of outages, and to continued infrastructure investment.
- Commitments to hire 60 union employees and to protect compensation and benefits.
- Maintaining ACE's local operational headquarters in Mays Landing.
- Providing an annual average of charitable contributions and local community support that is equal to ACE's 2013 level of at least $709,000 for 10 years after merger closing.
In addition to the state Board of Public Utilities, the merger requires approvals by the Delaware Public Service Commission, Public Service Commission of the District of Columbia and Maryland Public Service Commission.
The companies expect to complete the merger in the second or third quarter of 2015.