The Public Service Commission of the District of Columbia approved the Pepco-Exelon Merger on March 23, 2016
Customer Investment Fund
1. Exelon will provide a Customer Investment Fund (“CIF”) to the District of Columbia with a value totaling $72.8 million. This
represents a benefit of $215.94 per distribution customer (based on a customer count of 337,117 as of December 31, 2013). Pepco will not seek
recovery of the CIF in utility rates. [The Commission directed and the] Joint Applicants* agree that the CIF shall be allocated as set forth in
Paragraphs 2 through 7 below:
See Conditions 2 through
7 Below See DR 1119-2016-E-311
Customer Base Rate Credit
2. Exelon will provide a Customer Base Rate Credit in the amount of $25.6 million, which can be used as a credit to offset rate increases for Pepco
customers approved by the Commission in any Pepco base rate case filed after the close of the Merger until the Customer Base Rate Credit is fully
utilized. Exelon will also provide an Incremental Offset of up to $1 Million per year to be treated as a regulatory asset with a 5% return. The
parties in the next Pepco base rate case will be provided an opportunity to propose to the Commission how the Customer Base Rate Credit and
Incremental Offset will be allocated among Pepco customers and over what period of time. No portion of the Customer Base Rate Credit shall be
recovered in utility rates.
FC 1139 and Subsequent
Rate Cases
Residential Customer Bill Credit
3. Exelon will fund a one-time direct bill credit of $14 million to be distributed among Pepco residential customers (including RAD Program
customers). The credit shall be provided within sixty (60) days after the Merger closing based on active accounts as of the billing cycle
commencing thirty (30) days after the Merger closing.
Credit first reflected on
customer bills on April
19, 2016.
April 19, 2016 See FC 1119 -2016 – E – 1619
Creation of Formal Case No. 1119 Escrow Fund
4. Within sixty (60) days after Merger close, Exelon shall provide Pepco with the funds and Pepco shall establish a Formal Case No. 1119 Escrow
Fund with two subaccounts: the Formal Case No. 1130 MEDSIS Pilot Project Fund Subaccount and The Energy Efficiency and Energy
Conservation Initiatives Fund Subaccount The escrowed funds shall be placed in an interest-bearing account or invested in instruments issued or
guaranteed as to principle and interest and shall be administered by a third party administrator to be paid from a portion of the interest proceeds with
the approval of the Commission. Any unused interest will be deposited proportionally into the two subaccounts