July 18, 2014

Exelon and PHI (the parent company of Pepco and Delmarva Power) have proposed a merger by which Exelon would acquire PHI. The transaction would make PHI a wholly-owned subsidiary of Exelon. IEER and NIRS submitted these comments on the proposal stressing some risks for renewable energy development that may follow the merger.

We have provided evidence that the merger would increase Exelon’s economic and political presence in the region in a way that could significantly harm the region’s renewable energy goals, especially in Maryland, increase costs for CO2 reduction, reduce consumer choice, and jeopardize efforts to create a resilient grid in the PJM region that has far more distributed resources, a system where consumers had more choice on a level playing field. The statements in its application that it, Exelon, is committed to competition and to renewable energy should be viewed with skepticism. Exelon’s goals as expressed by its CEO, Chris Crane, as well as its recent actions indicate that ratepayers may be at significant risk of paying more while seeing diminished ability to exercise choices, notably rooftop solar based on net metering, available to them today. Diminished solar development may also make the development of wind more costly since seasonal complementarity would be reduced. This would affect the entire PJM region.

Download the complete comments here