The Office of People’s Counsel announced Thursday it was appealing a decision by Maryland regulators to approve a $6.9 billion merger between Baltimore Gas and Electric Co. parent Exelon Corp. and Pepco Holdings.
The merger, which also needs the approval of regulators in Washington, drew opposition from critics who worried it would lead to rate hikes and other problems. It was opposed by the Office of People’s Counsel, Maryland’s consumer advocate, as well as the Maryland Energy Administration and state Attorney General Brian Frosh, among others.
The Maryland Public Service Commission approved the deal in a 3-2 vote May 15.
“The majority decision to approve this transaction was flawed, and failed to address the single most important aspect of the law — First, do no harm,” People’s Counsel Paula Carmody said in a statement. “Given the importance of this negative decision to customers and to the future regulation of utilities in Maryland, I am compelled to seek the court’s review of this order, which had elicited a strongly-worded dissent by two Commissioners.”
The appeal will be reviewed in the Circuit Court of Queen Anne’s County, one of the counties served by Pepco Holdings subsidiary Delmarva Power.
“We are disappointed that the OPC has decided to challenge the Commission’s order, which found that our merger is in the public interest and will provide significant benefits to Pepco’s and Delmarva’s customers, communities and employees,” Exelon spokesman Paul Adams said in an email. “The Commission conducted a detailed and thorough review of the merger in its order, receiving approximately 98 pieces of expert testimony and conducting 24 days of hearings. In addition, the Commission imposed 46 challenging conditions, including the significant reliability and economic benefits we offered as part of our proposal, further enhancing customer benefits and protections.”
