Exelon 2015 Annual Report Download - page 91

Table of Contents
To date, the PHI stockholders, the Virginia State Corporation Commission, the New Jersey Board of Public Utilities (NJBPU), the Delaware
Public Service Commission (DPSC), the Maryland Public Service Commission (MDPSC) and the FERC have approved the merger of PHI and
Exelon. The Federal Communications Commission has also approved the transfer of certain PHI communications licenses.
On February 11, 2015, the NJBPU approved the proposed merger and the previously filed settlement signed and filed by Exelon, PHI,
Atlantic City Electric (ACE), NJBPU staff, and the Independent Energy Coalition. The settlement provides a package of benefits to ACE
customers and the state of New Jersey. This package of benefits includes the establishment of customer rate credit programs, with an aggregate
value of $62 million for ACE customers and energy efficiency programs that will provide savings for ACE customers of $15 million. The March 6,
2015, order by the NJBPU approving the merger required that the consummation of the merger must take place no later than November 1, 2015
unless otherwise extended by the Board. On October 15, 2015, the NJBPU extended the November 1, 2015 date to June 30, 2016.
On February 13, 2015, Exelon and PHI announced that they had reached a settlement agreement in the proceeding before the DPSC to
review the proposed merger. The settlement, which was amended on April 7, 2015, was signed and filed by Exelon, PHI, Delmarva Power & Light
Company (DPL), the DPSC Staff, the Delaware Public Advocate, the Delaware Department of Natural Resources and Environmental Control, the
Delaware Sustainable Energy Utility, the Mid-Atlantic Renewable Energy Coalition and the Clean Air Council. As part of this settlement, Exelon
and PHI proposed a package of benefits to DPL customers and the state of Delaware including the establishment of customer rate credits of $40
million for DPL customers in Delaware, $2 million of funding for energy efficiency programs for DPL low income customers, and $2 million of
funding for workforce development. On June 2, 2015, the DPSC issued an order accepting the settlement and approving the merger between
Exelon and PHI.
On March 17, 2015, Exelon and PHI announced that they had reached settlements with multiple parties in the Maryland proceeding to review
the proposed merger after filing a Request for Adoption of Settlements with the MDPSC. The settlements were signed and filed by Exelon, PHI,
Montgomery County, Prince George’s County, the National Consumer Law Center, National Housing Trust, the Maryland Affordable Housing
Coalition, the Housing Association of Nonprofit Developers, and a consortium of recreational trail advocacy organizations led by the Mid-Atlantic
Off-Road Enthusiasts. 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
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Source: BALTIMORE GAS & ELECTRIC CO, 10-K, February 10, 2016 Powered by Morningstar® Document Research℠
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