WASHINGTON (Reuters) - Exelon Corp EXC.N and Pepco Holdings Inc POM.N, which are seeking to merge, asked utilities regulators for the District of Columbia on Monday to reconsider their rejection of the proposed $6.8 billion deal.
The city’s three-member Public Service Commission refused to approve the merger in August, saying that the companies had not shown that it was in the public interest.
The companies, which are seeking to create the country’s biggest power distributor, was in talks with Mayor Muriel Bowser’s office in hopes of hammering out a settlement that the companies could take to the Public Service Commission.
“Today, we confirm that we are engaged in substantive discussions with the companies on a settlement agreement that would address, in a new application, the administration’s concerns,” said City Administrator Rashad Young, the district’s lead negotiator.
Before the D.C. rejection, the proposed transaction had won approval from Delaware, Maryland, New Jersey, Virginia and the U.S. Federal Energy Regulatory Commission.
Pepco serves about 2 million customers in the District of Columbia, Delaware, Maryland and New Jersey. Exelon has about 7.8 million customers in Maryland, Illinois and Pennsylvania.
Reporting by Diane Bartz; Editing by Bernard Orr