D.C. Regulators Reject Pepco-Exelon Merger

Utility regulators for the District of Columbia on Tuesday rejected Exelon Corp.'s $6.8 billion bid to purchase Pepco Holdings Inc., which would have created one massive power utility company serving customers across several states.

Regulators in Delaware, Maryland, New Jersey and Virginia have approved the deal, as has the Federal Energy Regulatory Commission.

The Public Service Commission of the District of Columbia, where Pepco is based, was the last regulatory body whose approval is needed before the deal can be completed. The companies can appeal the decision.

Exelon owns a large fleet of power plants and big utilities that serve the Chicago, Philadelphia and Baltimore areas. Pepco operates electric utilities in Maryland, Delaware, New Jersey and Washington, D.C.

Shares of Exelon fell 3% to $31.60 in midmorning trade, while shares of Pepco fell 19% to $21.90.

D.C. regulators made their decision public during a Tuesday meeting. Commissioners said they didn't like the deal as it was currently structured, adding the companies will have 30 days to ask for the commission to reconsider its decision.

Spokesmen for Exelon and Pepco said the companies were in the process of preparing a response to the decision.

Exelon will review the decision carefully once the commission has produced a written order with details of the decision, said Paul Elsberg, the Exelon spokesman.

The companies had hoped to complete their merger by September. It was originally announced in April 2014.

Write to Cassandra Sweet at [e-mail]

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(END) Dow Jones Newswires

August 25, 2015 12:58 ET (16:58 GMT)

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