Exelon, Pepco Enhance Proposed Package Of Merger Benefits In Maryland

(RTTNews) - Exelon Corp. (EXC) and Pepco Holdings Inc. (POM) have enhanced their proposed package of merger benefits in Maryland to provide greater benefits to customers of Pepco and Delmarva Power, their communities and the state.

The improved package of benefits was outlined in a filing made with the Maryland Public Service Commission or PSC.

Exelon and Pepco have increased the value of the Maryland customer investment fund to $94.4 million from $40 million. The PSC will determine the use of the funds for direct customer benefits, like rate credits, energy efficiency or low income customer assistance.

These commitments provide an upfront customer benefit that is 2.4 times the value of the companies' original proposal.

In addition, another $127.2 million in projected net merger savings over 10 years, and more than $17 million per year every year thereafter, will flow back to Pepco and Delmarva Power's Maryland customers through rates lower than they would be without the merger.

In the PSC filing, Exelon and Pepco also enhanced their commitment to reduce the frequency and duration of power outages in Maryland.

Performance improvements will be measured on an annual basis beginning in 2016, instead of a three-year average of 2018-2020 as originally proposed.

If the utilities do not achieve the reliability performance target in any of the years 2018 to 2020, they will be subject to escalating annual non-compliance payments of up to $7.75 million over the three-year period.

In addition, Exelon commits to achieve the performance improvements within existing annual reliability-related budgets.

To help reduce the burden of long-standing debts for low-income families, Exelon and Pepco also committed to a one-time elimination of unpaid bills that are over three years past due for qualifying low-income families in Maryland, as of the date of the merger closing.