By Suzanne Herel

The D.C. Public Service Commission on Wednesday voted to reopen the Exelon-Pepco Holdings Inc. merger case to consider a proposed settlement with Mayor Muriel Bowser’s administration. The commission also granted the companies’ requested expedited timeline, with closing briefs due Dec. 18.

“We will be releasing more of the details of the process, but we are all committed to seeing that this proceeds in a manner that is open, that is transparent, that is fair and that gives the commission the information and the opportunity that it needs to make a decision on whether this proposal is in the public interest,” said PSC Chairwoman Betty Ann Kane.

The commission unanimously rejected the $6.8 billion deal in August, after it had been approved by FERC and regulators in Delaware, Maryland, New Jersey and Virginia.

Bowser’s office, however, later brokered an agreement that won over principal critics, including People’s Counsel Sandra Mattavous-Frye and Attorney General Karl Racine, by offering the district $78 million in public benefits. (See Mayor’s Settlement Puts DC PSC on the Spot in Exelon-Pepco Deal.)

The settlement failed to garner the support of intervenors representing environmental and green energy interests, who said the fundamental conflict of Exelon’s commitment to its merchant generation and the district’s move toward renewable energy remained.

The joint applicants requested a 150-day timeline for consideration of the revised deal. If the acquisition doesn’t close by Dec. 31, Exelon must buy back $2.75 billion of debt it financed to pay for the takeover at $1.01 on the dollar, CEO Christopher Crane recently told Bloomberg. Meanwhile, the company is paying $10 million per month in interest on the bonds it sold in June.

Crane also said that Exelon may walk away from the deal if it is not approved within five months.

Power DC, a coalition of public interest groups opposed to the merger, expressed disappointment with the PSC’s decision. It had asked the PSC take until June 30 to provide ample time for public input. Amassing more than 3,000 comments, the deal has attracted the most public participation of any issue in the PSC’s history of more than a century.

After Wednesday’s vote, the group said in a statement, “The residents and small businesses of D.C. are disappointed with the Public Service Commission’s decision to expedite the review of Exelon’s bid to buy Pepco. Exelon’s latest settlement offer still does not address the fundamental conflicts of interest identified by the PSC when it rejected the merger in August. We will continue to work tirelessly over the coming weeks to ensure that the people are protected from this bad deal for D.C.” (See Merger Opponents Question Pepco’s Tactics.)

Expectedly, PHI was pleased with the vote.

“The procedural schedule approved by the commission has reply briefs filed on Dec. 18, which would allow for the commission’s decision sometime in the first quarter of 2016,” said Myra Oppel, PHI’s vice president for regional communications. “The schedule affords all parties and the public a fair opportunity to present their positions and ensures that the commission has a complete record to render its decision.”

Kane said that other related motions, including a request from D.C. Public Power to become an intervenor in the case, will be ruled on shortly. (See Group Proposes to Buy Pepco DC’s Assets.)

According to the timeline approved Wednesday, the filing deadlines are as follows:

• Oct. 30: Settlement agreement and supporting testimony.
• Nov. 6: Data requests to settling parties regarding settlement agreement and supporting testimony.
• Nov. 13: Settling parties’ responses to data requests regarding settlement agreement and supporting testimony.
• Nov. 17: Non-settling parties’ testimony.
• Nov. 20: Data requests to non-settling parties regarding settlement agreement and supporting testimony.
• Nov. 25: Non-settling parties’ response to data requests regarding settlement agreement and supporting testimony.
• Dec. 2-3 and possibly Dec. 4: Public interest hearings.
• To be announced: Community hearing.
• Dec. 11: Initial briefs.
• Dec. 18: Reply briefs.