In Merger Settlement With D.C. Mayor, Exelon Agrees To Support "Reasonable" Proposals For PJM Members To Fund Consumer Advocate Participation in PJM

Exelon and Pepco have via a settlement secured support for their merger agreement from the District of Columbia mayor, Attorney General, and Office of People's Counsel.

Under the settlement, in order to facilitate consumer advocacy in PJM, Exelon shall make a one-time contribution of $350,000 to fund the expenses of the Consumer Advocates of PJM States Inc. (“CAPS”). This contribution shall be a single contribution made with respect to all of the PHI utilities and service territories and shall not be specific to Pepco. The cost of the contribution shall not be recovered in the rates of any Exelon utility. Exelon shall agree to support reasonable proposals to have PJM members fund CAP

PJM member-funding of CAPs have been criticized by competitive suppliers, including retail suppliers, given that the same consumer advocates have been opposed to retail competition

Other conditions include:

• Exelon shall utilize separate legal and government-affairs personnel, support personnel, and separate law firms and consultants to advocate before the PSC, on behalf of Exelon Generation and/or Constellation Energy Resources, LLC, on the one hand, and Pepco and any affiliated transmission company, on the other.

• Exelon or its non-utility subsidiaries (for purposes of this section, “Exelon”) will, within five (5) years after the Merger close, conduct one or more requests for proposals or other competitive process (each an “RFP”) to solicit offers to purchase a total of 100 megawatts (“MW”) of renewable energy, capacity and ancillary services and all environmental attributes associated therewith, including but not limited to renewable energy credits (collectively, the “Product”), from one or more new or existing wind-generation facilities located within the PJM territory with an anticipated Product delivery date beginning approximately three years following the applicable RFP date.

See the full settlement here