Exelon Corporation and Pepco Holdings, Inc. have filed a request for the Public Service Commission (PSC) of the District of Columbia to reconsider their merger, according to a press release issued by Exelon.
Both companies are working with the District of Columbia government to reach a settlement agreement.
The Washington Post added that Exelon's proposed $6.4 billion merger with Pepco had already gotten approval from Virginia, New Jersey, Delaware, Maryland, and the federal government.
Both companies though only reached their agreements after concessions with stakeholders in those jurisdictions.
The Washington Post also reported that the PSC serves as the last obstacle that Exelon and Pepco need to overcome to complete their merger.
The two companies are unable to get support from the PSC and a settlement agreement, which is brokered by the Bowser Administration, could be critical.
Chris Crane, the president and CEO of Exelon, said in the press release that both companies "remain convinced" that their combination will provide "significant benefits to customers and the District."
"We continue working to complete it," he said. "Since the Public Service Commission explained why it didn't approve the merger last month, we've worked to learn what's most important to the District - and we are responding."
Joseph Rigby, the chairman, president and CEO of Pepco, added in the press release that they are eager to continue the discussions with the District of Columbia.
"We look forward to completing discussions with the District that will allow for a stronger Pepco to provide improved reliability along with the other significant benefits our merger will deliver to the District," he said.
Rashad Young, a city administrator who is leading the negotiations with Exelon and Pepco on behalf of the district, confirmed in statement published on the website of Washington DC's mayor that they are engaged with both companies on settlement agreement.
He added that they side with the PSC in saying that the pending merger application of both Exelon and Pepco "did not demonstrate an adequate commitment to affordability, reliability and sustainability."
He also mentioned in the statement that the PSC would be reviewing, providing public comments and making a "final determination" on any settlement agreement that the negotiation would bring about.
He said that the District of Columbia deserves to have a public utility that will serve its residents and ratepayers "in a cost effective, dependable and environmentally sound manner."
