Maryland approves electric utility merger

Maryland regulators voted Friday to approve the acquisition of electric and gas utility Pepco Holdings Inc. with by Chicago-based Exelon Corp.

It brings the merger, first proposed in April 2014, a step closer to reality and making Exelon one of the nation’s largest utilities, with a large footing in the East.

{mosads}Washington, D.C., also has to approve the merger, and Exelon has to agree to various conditions that the Maryland Public Service Commission (PSC) attached to its 3-2 vote to endorse the deal.

“We are pleased that the Maryland Public Service Commission has approved our merger,” Exelon said in a statement. “However, the commission’s order modifies a number of the proposed conditions and we must carefully review it in its entirety.”

Exelon said the acquisition of Pepco, which serves customers in Washington, D.C., Maryland, Delaware and New Jersey, would bring various benefits to customers, including rate credits, energy efficiency programs and assistance for low-income ratepayers.

But the deal has been controversial.

The Chesapeake Climate Action Network blasted Maryland’s decision.

“This approval, with no meaningful conditions added by the commissioners, threatens to negatively affect Marylanders for decades to come,” Mike Tidwell, the group’s director, said in a statement.

“The PSC has totally failed in its responsibility to protect the ratepayers from exactly the sort of monopolistic harm that they have now ushered in,” he said.

State officials and advocacy groups argued that Exelon’s acquisition could increase rates, cut jobs and reduce benefits from competition.