DC Citizen Groups to DC Council: Reject Exelon-Pepco Merger
ANCs, Community Leaders Say Buyout Will Harm Residents, Businesses
WASHINGTON, DC – Testimony during a DC Council hearing last Thursday demonstrated mounting local opposition to a proposed merger between the Chicago-based utility, Exelon, and Pepco. DC community leaders turned out in force, and provided the members of the Committee on Business, Consumer, and Regulatory Affairs with detailed insight into why the proposed deal poses many risks for DC ratepayers and workers, without an obvious public benefit.
Testimony also argued that the merger could hurt local businesses as well as low-income and minority communities across the District.
“Nearly 20 percent of D.C families’ have incomes below the poverty rate, and the numbers have risen steadily in recent years,” said Acqunetta Anderson, ANC Commissioner of ANC4A, and one of several Commissioners who showed up to speak on behalf of their communities. “For many low- and fixed-income families, even a small increase in electricity rates can mean having to go without. The facts show that this deal would benefit only Pepco’s shareholders, while hurting our local communities that need the most support.”
Former DC Council member Sekou Biddle also testified, stating, “We could be wedded to a company with an ideology counter to what we believe. There is no going back after this merger.”
The marathon hearing, chaired by councilmember Vince Orange, a former Pepco executive, lasted 12 hours. Government and industry representatives testified first, with those opposing the merger waiting for hours to comment on the proposed deal.
“Small businesses like mine have come to the District because of its support for renewable energy,” said Mar Kelly of District Sun, a local solar power business. “Exelon’s opposition to community-based solar and other types of renewable energy has been very clear in state after state. If Exelon buys Pepco, I will have to consider moving my business to another part of the country. I would much rather stay here, and hope I don’t have to make that choice.”
Rob Robinson, Director of Grid 2.0 and co-founder of the Power DC Coalition, expressed that a growing number of citizens are concerned about the risks of the deal and the lack of public benefit.
“I have been to dozens of community meetings and many are attended by senior executives from Pepco and Exelon. I can tell you from first hand experience the people of DC are just not buying it,“ said Robinson. “Exelon’s business model is in trouble, and it is clear that the company is looking for an opportunity to increase their cash flow – potentially at the expense of DC ratepayers. The utility has a history of pursuing rate increases after acquiring new subsidiaries, already requesting four rate increases in Maryland since purchasing Baltimore Gas & Electric in 2012.”
“Exelon wants DC officials to believe it is too big to fail, but the truth is just the opposite,” said Tim Judson, Executive Director of the Nuclear Information and Research Service. “Exelon is taking out over $5.5 billion in loans and risky securities to acquire Pepco. That means it will need customers to pay nearly $3,000 each, on top of Pepco's costs, just to cover the cost of the deal. The promised $50 one-time 'rebate' is nothing compared to how much customers will pay to join the Exelon family, and none of that money would go into service or reliability improvements. “
With this latest round of public opposition, the public pressure to reject the merger continues to mount. Power DC reports that comments submitted to the DC Public Service Commission (PSC) in opposition to the merger are increasing daily.
The DC PSC has until April 1, 2015, to decide whether to approve the proposed merger. The decision rests on the PSC’s determination of whether the proposed merger is “in the public interest.”
ABOUT POWER DC: Power DC is a coalition of DC citizens, business leaders and community advocates opposed to the purchase of Pepco by Exelon. Its members represent electricity customers from across the District of Columbia concerned about electricity prices, reliability, renewable and efficient energy and local control over our energy supply. More information is available at www.PowerDC.org and https://twitter.com/PowerDCnow.
WASHINGTON, DC – Testimony during a DC Council hearing last Thursday demonstrated mounting local opposition to a proposed merger between the Chicago-based utility, Exelon, and Pepco. DC community leaders turned out in force, and provided the members of the Committee on Business, Consumer, and Regulatory Affairs with detailed insight into why the proposed deal poses many risks for DC ratepayers and workers, without an obvious public benefit.
Testimony also argued that the merger could hurt local businesses as well as low-income and minority communities across the District.
“Nearly 20 percent of D.C families’ have incomes below the poverty rate, and the numbers have risen steadily in recent years,” said Acqunetta Anderson, ANC Commissioner of ANC4A, and one of several Commissioners who showed up to speak on behalf of their communities. “For many low- and fixed-income families, even a small increase in electricity rates can mean having to go without. The facts show that this deal would benefit only Pepco’s shareholders, while hurting our local communities that need the most support.”
Former DC Council member Sekou Biddle also testified, stating, “We could be wedded to a company with an ideology counter to what we believe. There is no going back after this merger.”
The marathon hearing, chaired by councilmember Vince Orange, a former Pepco executive, lasted 12 hours. Government and industry representatives testified first, with those opposing the merger waiting for hours to comment on the proposed deal.
“Small businesses like mine have come to the District because of its support for renewable energy,” said Mar Kelly of District Sun, a local solar power business. “Exelon’s opposition to community-based solar and other types of renewable energy has been very clear in state after state. If Exelon buys Pepco, I will have to consider moving my business to another part of the country. I would much rather stay here, and hope I don’t have to make that choice.”
Rob Robinson, Director of Grid 2.0 and co-founder of the Power DC Coalition, expressed that a growing number of citizens are concerned about the risks of the deal and the lack of public benefit.
“I have been to dozens of community meetings and many are attended by senior executives from Pepco and Exelon. I can tell you from first hand experience the people of DC are just not buying it,“ said Robinson. “Exelon’s business model is in trouble, and it is clear that the company is looking for an opportunity to increase their cash flow – potentially at the expense of DC ratepayers. The utility has a history of pursuing rate increases after acquiring new subsidiaries, already requesting four rate increases in Maryland since purchasing Baltimore Gas & Electric in 2012.”
“Exelon wants DC officials to believe it is too big to fail, but the truth is just the opposite,” said Tim Judson, Executive Director of the Nuclear Information and Research Service. “Exelon is taking out over $5.5 billion in loans and risky securities to acquire Pepco. That means it will need customers to pay nearly $3,000 each, on top of Pepco's costs, just to cover the cost of the deal. The promised $50 one-time 'rebate' is nothing compared to how much customers will pay to join the Exelon family, and none of that money would go into service or reliability improvements. “
With this latest round of public opposition, the public pressure to reject the merger continues to mount. Power DC reports that comments submitted to the DC Public Service Commission (PSC) in opposition to the merger are increasing daily.
The DC PSC has until April 1, 2015, to decide whether to approve the proposed merger. The decision rests on the PSC’s determination of whether the proposed merger is “in the public interest.”
ABOUT POWER DC: Power DC is a coalition of DC citizens, business leaders and community advocates opposed to the purchase of Pepco by Exelon. Its members represent electricity customers from across the District of Columbia concerned about electricity prices, reliability, renewable and efficient energy and local control over our energy supply. More information is available at www.PowerDC.org and https://twitter.com/PowerDCnow.
