Exelon 2015 Annual Report Download - page 292

Table of Contents
Combined Notes to Consolidated Financial Statements—(Continued)
(Dollars in millions, except per share data unless otherwise noted)
Exelon and PHI also announced a settlement with The Alliance for Solar Choice. On May 15, 2015, the MDPSC approved the merger after
modifying a number of the conditions in the settlements, resulting in total rate credits of $66 million, funding for energy efficiency programs of
$43.2 million, a Green Sustainability Fund of $14.4 million, 20 MWs of renewable generation development and increased penalties related to
reliability commitments. On May 18, 2015, Exelon and PHI accepted and committed to fulfill the conditions.
On June 11, 2015, the Maryland Office of People’s Counsel (OPC), the Sierra Club, and the Chesapeake Climate Action Network filed
Petitions for Judicial Review of the MDPSC’s approval of the merger with the Circuit Court for Queen Anne’s County. On June 23, 2015, Public
Citizen, Inc. filed its Petition for Judicial Review with the Circuit Court for Queen Anne’s County. On July 10, 2015, Exelon and PHI filed a
response in opposition to the Petitions for Review.
On July 21, 2015, the OPC filed a motion to stay the MDPSC order approving the merger and to set a schedule for discovery and
presentation of new evidence. On July 29, 2015, Public Citizen, Inc. filed a response supporting OPC’s motion to stay, and on July 31, 2015 the
Sierra Club and the Chesapeake Climate Action Network filed a joint motion to stay. In July and August, Exelon, PHI, the MDPSC, Prince
George’s County and Montgomery County filed responses opposing the motions to stay. The judge issued an order denying the motions for stay
on August 12, 2015. On January 8, 2016, the Circuit Court judge affirmed the MDPSC’s order approving the merger and denied the petitions for
judicial review filed by the OPC, the Sierra Club, the Chesapeake Climate Action Network (CCAN) and Public Citizen, Inc. On January 19, 2016,
the OPC filed a notice of appeal to the Maryland Court of Special appeals, and on January 21, Sierra Club and CCAN filed a notice of appeal. In
the ordinary course this appeal would be resolved no earlier than third quarter 2016.
On August 27, 2015, the District of Columbia Public Service Commission (DCPSC) issued an Opinion and Order denying approval of the
merger, concluding that the merger as presented was not in the public interest. Exelon and PHI filed an Application for Reconsideration with the
DCPSC on September 28, 2015. On October 6, 2015, Exelon, PHI, the District of Columbia Government, the Office of Peoples Counsel, the
District of Columbia Water and Sewer Authority, the National Consumer Law Center, National Housing Trust and National Housing Trust—
Enterprise Preservation Corporation, and the Apartment and Office Building Association of Metropolitan Washington (collectively, Settling Parties)
entered into a Nonunanimous Full Settlement Agreement and Stipulation (Settlement Agreement) with respect to the merger. Exelon and PHI
subsequently filed a motion of joint applicants requesting the DCPSC to reopen the approval application to allow for consideration of the
Settlement Agreement and granting additional requested relief. The new package of benefits totals $78 million and includes commitments to
provide relief of residential customer base rate increases of $26 million, one-time direct bill credits of $14 million, low-income energy assistance of
$16 million, improved reliability, a cleaner and greener D.C. through funding energy efficiency programs and development of renewable energy, and
investment in local jobs and the local economy through workforce development of $5 million. It also guarantees charitable contributions totaling
$19 million over 10 years.
On October 28, 2015, the DCPSC agreed to reopen the approval application to allow for consideration of the Settlement Agreement. Since
then, parties supporting and opposing the Settlement filed testimony, participated in formal hearings and, on December 23, 2015, submitted final
briefs to the DCPSC. The parties now await a formal decision from the DCPSC. The Merger Agreement provides that either Exelon or PHI may
terminate the Merger Agreement if the merger is not completed by October 28, 2015. Pursuant to a Letter Agreement related to the Settlement
Agreement, Exelon and PHI have agreed, among other things, that they will not exercise their rights to terminate
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Source: BALTIMORE GAS & ELECTRIC CO, 10-K, February 10, 2016 Powered by Morningstar® Document Research℠
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