An important issue for the future is that of undergrounding some or all our electrical lines. It has been reported that to place all electrical lines underground could cost at least $3 billion. That would be a major gift to certain construction companies with strong supporters now on the Council. Arguments against total undergrounding point out that in some areas of the city, buildings are far apart and overhead wiring would be easier and cheaper to maintain and repair. In the past poor "vegetation managment" has caused power outages in storms. This can be prevent by proper tree trimming, a good low tech job opportunity the city should support. The link points out that the cost can be 5 to 10 times higher to go underground.
The DC Federation of Civic Associations has recently complained that just before Thanksgiving the DC Council announced a meeting on the PSC issue to occur the Monday after Thanksgiving. They pointed out that with dozens of member organizations it was impossible and unfair to expect them to take part with such short notice. Short timing meeting announcements is a classic tactic to deny citizen participation. One often employed in this city. Here are some quotes from DCFCA's Dec. 5, 2018, letter to Chairman Mendelson and Members of the DC Council.
"We were not able to participate in the Comm. on Business & Economic Development's (CBED) Roundtable on the Mayor's nominations to the PSC, held on Monday Nov. 26th. The Comm. did not publish this meeting on the Council website until Wed., Nov. 21st - the day before Thanksgiving. Nor did the Comm. distribute its notice to any lists that included our organization, such as dcdpcs@subscriptions.dc.gov, and we represent thirty-plus civic associations....
"We are utility ratepayers too and we believe we should have some say in who will represent us on the PSC.... As citizen ratepayers we require at least a two-week advance notice (to plan leave from work, to meet to review the backgrounds of nominees, etc.) to prepare to testify on appointments to Commissions of this importance to our communities.
"This experience is reminiscent to four years ago (June 2014) when CBED handled nominations to the PSC in exactly the same way, as if ample public notice didn't really matter.... How can we trust a nominee to represent our, the public interest, as utility ratepayers, if that nominee agrees to be part of a process that effectively suppresses public participation in their appointment?...
"Accordingly, we are asking for the following:
1. That the Council instruct the CBED to schedule a formal Hearing for the Mayor's Nominees to the PSC after making ample public notice (with a minimum of ten (10) business days) and making relevant materials widely available to the public. [GLA - I don't know if this happened.]
2. That the Council adopt rules requiring formal Council Hearings for appointments to key DC Boards, Committees and Commissions, particularly those that regulate monopoly utilities providing water, power and telecommunications services to DC. [GLA - We must make this happen.]
"Thank you for your attention to this matter....
Sincerely, Graylin W. Presbury, President, DC Federation of Civic Associations"
My earlier posts describe in vivid detail the game playing around the PSC vote on Exelon's takeover.
https://gleeaikin.blogspot.com/2015/11/exelonpepco-takeover-psc-hearing-nov-17.html This post details game playing by pro Exelon forces and testimony by DC Statehood Green Party members. Stockmarket fluctuations for PEPCO and Exelon and possible reasons behind them are shown.
https://gleeaikin.blogspot.com/2015/11/dc-psc-community-hearing-witness-list.html The PSC printed some 50 pages of over 250 expected testifiers. List included 70 names submitted by one person, who did not testify. I condensed the list to 13 pages for people wishing to take notes.
https://gleeaikin.blogspot.com/2015/01/exelonpepco-merger-is-it-good-for-dc.html Here the possible earthquake dangers and costs are discussed including testimony.
[2016] Many of us have been extremely disappointed by the Public Service Commission's 2 to 1 decision to move forward with Exelon's takeover of Pepco. However we are not giving up yet, and below you will see a number of steps being taken and information for arguments to use in conducting the continued fight by you, our activists.
DO NOT GIVE UP!!!
[7/6/16] Several new developments. Councilman Vincent Orange has called for an Exelon hearing at 2pm, Wednesday, July 13, Rm 500 at the Wilson Bldg. Call Faye Caldwell at 202-727-6683 to testify. In addition to 10% rate increases caused by Exelon in Maryland, Pepco has now asked for an $85.5million increase in DC. This totally wipes out the $79million in Exelon's promised benefits to DC people and organizations. Hopefully, our Office of the People's Counsel and other appropriate organizations will fight this tooth and nail. [Subsequent to loosing his Council post in the Primary Election, Orange was named head of the DC Chamber of Commerce. He also wanted to remain on the Council until new members were seated in Jan. 2017. Outrage over double dipping (2 salaries) and conflict of interest (C of C members have frequent business matters affected by Council votes) led to his speedy resignation from the Council. He was replaced by Robert White who had won the Democrat primary and was subsequently elected on Nov. 8th by a wide majority.]
[6/15/16] The Public Service Commission (PSC) will announce its decision on the request for reconsideration of the Exelon-Pepco merger on Friday, June 17 at 3 p.m. Let's try to be there to show the PSC that we still care about this issue. Please respond here if you can help pull together a plan for Friday. RSVP here: http://goo.gl/forms/ wWWew5o8cT8mBCJH2
The PSC is at 1325 G Street, N.W. Suite 800. Not surprisingly the PSC voted 3 to 0 to deny the request for reconsideration. Chairwoman Betty Ann Kane supported this denial strictly on technical grounds as she said she still believes going to bed with Exelon is a very bad idea.
[6/6/16] http://www.huffingtonpost.com/pete-tucker/some-go-to-jail-not-jack-_b_10249700.html. I recently came across this article on the subject of several NY lawmakers going to jail for conflict of interest by holding outside jobs and using them improperly to sway legislation. The author then goes on to explain in considerable detail how Jack Evans (Ward 2 Councilman) was involved in helping the Exelon/Pepco deal succeed for big business. A number of other earlier potential misuses of his influence for outside clients doing business with DC are also described.
[6/6/16] http://www.huffingtonpost.com/pete-tucker/some-go-to-jail-not-jack-_b_10249700.html. I recently came across this article on the subject of several NY lawmakers going to jail for conflict of interest by holding outside jobs and using them improperly to sway legislation. The author then goes on to explain in considerable detail how Jack Evans (Ward 2 Councilman) was involved in helping the Exelon/Pepco deal succeed for big business. A number of other earlier potential misuses of his influence for outside clients doing business with DC are also described.
[4/28/16] In an important development regarding the nuclear safety issue, 7 staff members of the Nuclear Regulatory Commission had petitioned the NRC to either fix serious electrical issues in almost all nuclear plants immediately, or else shut them down. This link has a list of all major nuclear plants which are clickable for detailed information. In addition to various Exelon plants our earthquake threatened North Anna plant in Virginia is listed. Detailed comments point to serious issues with the competence, integrity, compliance, and transparency of the Nuclear Regulatory Commission. Did our PSC receive tainted safety information? Would this invalidate their decision. Something for our Attorney General and People's Counsel to examine carefully.
Here is a link regarding uranium enrichment services. Not surprisingly companies like to develop these deposits in small job hungry communities. I was surprised to discover that there are significant uranium deposits in an area of rural Virginia which the owner would love to develop. I was not surprised to discover that Virginia Governor McAuliffe, is now facing a lawsuit to get rid of Virginia's current ban on uranium mining. This rather technical article describes the geology and provides some of the reasons why Virginia decided to ban mining. This site's most recent May 31, 2016 article includes current Exelon problems, especially in Illinois and with Three Mile Island plant in PA. A number of other nuclear related articles follow. This article describes a complex on again off again attempt by Exelon to operate or dismantle a nuclear plant to its own, but no one else's benefit. Ten years from now will we discover that Exelon's invasion of the DC/MD was a first step toward gaining access to Virginia's major uranium deposit???
[4/22/16] If you notice that your Pepco bill is a little lower this month, it is because the "Exelon Rate Credit" of $54.59 has been subtracted. It is a little hard to figure out when you look at a bill, but look for the box on Page 2 called "Electric Distribution and SOS Supply Summary - Pepco." The head of the Office of the People's Counsel, has weighed in with strong objections to the Public Service Commissions 2 to 1 approval of Exelon's buyout.
Friday, the 22nd Ms. Mattavous-Frye filed an "application for reconsideration," asking the PSC to either reopen the case and permit all parties an opportunity to comment...as required by PSC rules, or reject the merger as "procedurally improper."
Is Exelon rushing to pay the Pepco shareholders, and the ratepayers the $54.59 to make it legally more difficult to reverse their takeover of Pepco?
[4/20/16] Already it begins. Announcements of a rate hike of 10% for PEPCO customers now owned by Exelon has been requested. They say this is to make up for the cost of installing Smart Meters which was supposed to save money. Something fishy here!
"'Today's announcement confirms what we had feared and why we're still fighting,' Anya Schoolman, executive director of the Community Power Network, a regional group opposing the merger, said in an email. 'Area ratepayers are going to [be] the ones who pay the price for Exelon's takeover of Pepco.'" As many of us predicted all along.
Among 90 angry comment to the story, this from starling 1
"'We thought it was prudent to hold off on filing [for a rate increase]...while the merger
proceeding was ongoing to allow all all parties to focus their resources on the merger
applications,' said Kevin McGowan, Pepco's vice president for regulatory policy.
Dear activist friends,
Dear Green Neighbors, by Basav Sen
You've probably all heard the bad news - in a decision that defies logic, the Public Service Commission approved the Exelon-Pepco merger. Corrupt back-room deals and big money yet again triumphed over facts, reason, and democracy.
But it is most definitely not over yet. You'll be hearing lots more from Power DC over the next few months.
First, we will be pressing the Attorney General and the Office of People's Counsel to do their job by appealing the decision to US District Court. Given the inconsistency of the PSC's process, we may have a chance there.
I will send out an action alert going to the AG and the OPC soon.
Also, Power DC will drive individuals and organizations to support the Fair Elections campaign calling for public financing of elections as way to reduce the corrupting influence of big money in DC politics. (Making the shenanigans around the merger the poster-child for corruption in DC.)
There are a couple of other follow-up steps as well, that I will inform the list about as we're closer to going public with it.
I'd just like to end by saying, don't feel discouraged! There's plenty we can still do to make Exelon profoundly regret ever trying to buy Pepco.
----------
[I tried to find the person who wrote this to ask permission to post, but no success. I will be happy to edit, delete, or give credit. I have no information on the accuracy of these projections but feel it states real potential issues which can make a good basis for further research and discussion. By all means add comments if you have actual facts with sources. Hopefully this is a worst case guess, and our situation will not be so bad as described here. I asked several knowledgeable people to review this "failed" scenario, and include one evaluation immediately below the following.]
Thursday, March 3, 2016, UTC-5, pat b wrote: Irv asks "What a 'failed' merger DC looks like." OK... That's a vague question, so I'll try and frame my answer.
Once Exelon locks up the political infrastructure and the Public Service Commissions in all the states, they will start passing rate cases to give themselves guaranteed 8% rates of return for big infrastructure projects that might or might not be needed. [One such project is the DC plan to spend $3 billion to put ALL electrical lines underground. Some undergrounding certainly makes sense, but there are parts of the city where homes are spread out and it would be cheaper to keep lines above ground and repair as needed. This can become a major digging and paving boondoggle. The important and much cheaper thing is to keep trees properly trimmed, whether by the utility or by DC's trained trimmers.]
I hope that both of these sets of predictions turn out to be wrong, but I am not holding my breath.
----------
Exelon Boosts Guidance Despite Lower Profit [Exelon stockholders were so happy last October with the prospect of us paying their bills that stock price estimates rose even as profit sank 37%.]
Chicago-based power company reaffirms its commitment to buying Pepco Holdings
Translation: We didn't want to admit what we really planned to do until after we got what
we wanted."
And Nosh 1 has this comment [for all those "civic" groups and businesses who greedily
urged the DC Public Service Commission (and no doubt other PSCs) to approve the merger
to ensure their little payoffs. Will those goodies cover their future electric bills?]
"Seriously? I mean, everyone not on the take knew this merger would result in higher bills,
despite [what] the $7billion 'merger-machine' was trying to cram down our throats. Less
competition, higher prices. That was the motto of the opponents and that's what happens
EVERY SINGLE TIME something like this happens.
But I gotta admire the ballsy brass they have in asking for a rate hike less than 2 weeks
after the merger goes through. 'This has absolutely nothing to do with the merger.'
Yeah, OK...if that is true, then this happens to be the worst marketing timing snafu in
corporate America. You would think that one of the 12,000 employees of the company
would have raised their hand at the meeting when this was being discussed and said, 'you
know guys, we just polished off this hard fought merger two weeks ago where we promised
everyone that it would benefit them with economies of scale and lower costs, maybe now is a
bad time to try to do this?'
But no...I am sure that conversation never happened."
Exelon was so eager to get this officially packaged and delivered that within a week of the
final DC PSC approval all the Pepco stockholders had been paid for their stock. This does
not mean we should stop engaging in the actions urged below.
[4/7/16] An interesting campaign is developing as a followup from Power DC as one area to use to continue fighting Exelon's agenda. This is also a worthwhile fight in its own right. Councilmember Mary Cheh has introduced legislation to expand DC's Renewable Portfolio Standards to mandate a more ambitious target for the share of the Pepco standard offer that must come from renewables. A coalition is forming around it to campaign for passage, which includes many members of Power DC. Further action is planned soon, and I will announce it here when I know.
Dear activist friends,
As you know, we received disappointing news last week. The Public Service Commission’s split decision to allow Exelon to take over Pepco was a shocking mistake. We are continuing the fight. But we can’t do it alone. That is why we are calling on Attorney General Karl Racine and the Office of the People’s Counsel to join us in challenging the Public Service Commission’s erroneous decision.
Grid 2.0 has filed a motion for the PSC to reconsider its decision. This automatically stays the Commission's ruling. Should the PSC reject this motion, (which we expect it will), we’ll still have an opportunity to appeal through the court system.
We know Exelon will fight our efforts tooth and nail, which is why we need the AG’s office and OPC to fulfill their role as public advocates and fight this bad decision with us.
Our fight against Exelon and for an affordable, reliable, and sustainable energy grid was always a long shot. That we’ve gotten this far is a testament to the support we’ve received from people like you. Attorney General Racine and the Office of People's Counsel have said this deal is not in the public interest. Ask them to stand up for their principals.
Thank you, Basev Sen
Dear Green Neighbors, by Basav Sen
You've probably all heard the bad news - in a decision that defies logic, the Public Service Commission approved the Exelon-Pepco merger. Corrupt back-room deals and big money yet again triumphed over facts, reason, and democracy.
But it is most definitely not over yet. You'll be hearing lots more from Power DC over the next few months.
First, we will be pressing the Attorney General and the Office of People's Counsel to do their job by appealing the decision to US District Court. Given the inconsistency of the PSC's process, we may have a chance there.
I will send out an action alert going to the AG and the OPC soon.
Also, Power DC will drive individuals and organizations to support the Fair Elections campaign calling for public financing of elections as way to reduce the corrupting influence of big money in DC politics. (Making the shenanigans around the merger the poster-child for corruption in DC.)
There are a couple of other follow-up steps as well, that I will inform the list about as we're closer to going public with it.
I'd just like to end by saying, don't feel discouraged! There's plenty we can still do to make Exelon profoundly regret ever trying to buy Pepco.
Question: Why is Green Neighbors opposed to the merger? [Notes from their meeting of March 21, 2016]
Answer: Our group got involved in it because of Exelon’s record on solar. They have taken positions against net metering, in which a property owner installs solar panels and sells the excess energy back into the grid. Exelon has proposed penalizing people for installing solar panels. Exelon is also trying to kill the subsidies for wind energy at the federal level. Exelon is the biggest owner of nuclear facilities in the country, which gets huge subsidies. Then we found out about other issues: especially Exelon’s history of raising rates in other places, needing to make money to shore up their risky nuclear energy business by buying public utilities and jacking up rates.
When the PSC originally rejected the merger, the Mayor reached a backroom deal with the companies. The PSC was responding to that settlement.
Exelon as producer and not just distributor of energy is conflict of interest.
The Edison Electric Institute that Exelon is part of participates a lot with ALEC. [This link explains why ALEC is such a bid thing. A number of very informative comments here. ALEC inspired "stand your ground law" helped kill Trevon Martin.]
27 out of 40 ANCs have passed resolutions against the merger.
DC Public Power has formed to try and get DC to have our own public utility. Mary Cheh has done a great job in exposing the problems with the Pepco-Exelon merger. She also put in an amendment to have a study on public power. It was rejected but she’s going to introduce it again.
If DC rejects the merger it will be dead in other jurisdictions – MD, DE and NJ.
(UPDATE: On March 23 the PSC reversed its original decision and approved the merger by a 2 to 1 vote. Power DC is coming up with action plans in response.)
----------
[I tried to find the person who wrote this to ask permission to post, but no success. I will be happy to edit, delete, or give credit. I have no information on the accuracy of these projections but feel it states real potential issues which can make a good basis for further research and discussion. By all means add comments if you have actual facts with sources. Hopefully this is a worst case guess, and our situation will not be so bad as described here. I asked several knowledgeable people to review this "failed" scenario, and include one evaluation immediately below the following.]
Thursday, March 3, 2016, UTC-5, pat b wrote: Irv asks "What a 'failed' merger DC looks like." OK... That's a vague question, so I'll try and frame my answer.
"Assuming Exelon buys Pepco, for the price involved and assuming it was pretty close to the original deal in line with what the other states agreed to. [Here is what is what might happen. I have added additional comments in brackets. gla]With Exelon HQ in Chicago, more and more Pepco managers are either pulled to Chicago to work direct for their bosses or removed and replaced by managers who come 'Seagulling' in.. The organization finds itself with less local management or the inability to make decisions in a timely manner, because Monday-Friday are Travel days...The larger problem is that with management further away, all the costs look higher and the problems smaller and with a 7 Billion dollar merger to pay for they need to cut costs at Pepco by 35%, so, how do they do that? Like all modern MBA's, they slash expenditures on spares, they sell off as many trucks and assets as they can to raise cash, they lay off 2nd, 3rd shift workers, who get shift differentials and union contracts, in favorof more contract support from Asplundh and Walker, and the other contractors.Things will on a regular day be fine, but if you have a Derecho, well, 30 days to get power back on, will be normal.... because Pepco workers won't be around to work 2nd/3rd shift, and the contractors will be slicing between their contract work and Pepco support. [If we have a major hurricane, Derecho, or snow/ice storm we will be less able to help neighboring states, and they will be less likely to help us. Since Exelon is also likely to make cuts in MD, NJ, and DE, it could get really bad in an emergency.]Meanwhile, with fewer managers around getting the business processes together especially, because Exelon will decide as part of the cost cuts to dump all the Pepco IT, so expect your billing to transition to Exelon IT. Well, you think your bills are busted now on solar charges, imagine some pointy-haired boss in Chicago, trying to manage the DC SREC (Solar Renewable Energy Credit) program accounting.... [Darn, and we were just getting PEPCO to work with our solar people.]So expect every month bills to be busted [have problems], and you hit some 800 number that rolls to a call center in West Africa, because Bangalore is too expensive.Now, All Mergers are sold assuming revenue Growth and cost cuts, so figure the Exelon biz plan assumes a ridiculous growth rate, say 11%/year. Well, the reality is LED lighting, is slashing consumption by 20%, and small PV [solar] is chowing up [providing?] another 30% of demand, so Exelon has half the business base to load this onto to... [A friend knowledgeable about solar had serious issues with these estimates and those below.]So either your Grid fixed charges double or the cost of Electricity supplied doubles. The second one is a death spiral, because it makes PV (photo voltaic) look even better, so, they have to jack Grid charges. That has a big impact on the poor. People with a studio, or a 1 BR start paying a lot more then someone with a Big house in Potomac, proportionally, and the person with a 1 acre lot has room for a 15 KW solar array and battery. So expect to see more cost shifting into Dense urban areas, because they have less option to go solar... [Actually, DC with many flat roofs and the height limitation has more solar suitable roofing than many urban areas.]Finally and here is the real reason why Exelon is so desperate to do this merger......Exelon has a bunch of nuke stations which are all headed into end of life [see figures for license expiration dates in Illinois]. Exelon has less then 33% the money needed to decommission them. Decommissioning a nuke is the Hell phase of a nuke. It's all cost, zero revenue, it's long tedious and full of ways to get fines. [And heaven help us if there is an accident.]The Experience of decommissioning is that the actual costs over-run planned costs by 1.5-2.2 so in reality Exelon has very little money set aside towards these shutdowns, so what can they do? Try and have a 'rate-base' that pays for that. [That means US.]This is why Exelon cast their eyes at Pepco. Big user base they can buy, and force these costs onto the DC user base...So what does a 'Failed' merger look like? [Failed in the sense the merger happened but the results could be catastrophic.]1) When a major storm hits ( Maine 1998 ice storm , Derecho 2012, 2013) the outages will be over a month, people will die, major services water, sewer, will be impacted, the National Guard will have to help out. https://en.wikipedia.org/wiki/North_American_Ice_Storm_of_1998#Impact2) Summer thunderstorms will lead to days long outages, not hours.3) Your bills will get regularly screwed up and the Customer service horror stories will rival Comcast.4) Your grid fees will rise probably 2-3 times.5) The cost of delivered energy will triple, so a KWH could cost 30 cents. [Currently around 10 cents.]Is that what you were looking for?"
[As I said earlier I do NOT know if all this is likely or true, but fear it may be. I also hope that the Public Service Commission has investigated all these risk factors, and is certain that NONE of this is likely to happen.] Next you will find another interpretation of what bad things may happen.
Hi: I see a different scenario.
Exelon will not really be an absentee landlord. The folks that run the utility will be here in DC. But all the important decisions on policy and direction will be made in Chicago. First, a lot of folks will get fired, and a lot of local contract will be dropped this has already happened. They will save money by thinning out their emergency response crews. Why have a crew in Delaware and Philly and Baltimore and DC when they are all so close! When the big storms hit [and the roads impassable] we will be screwed.
Exelon will not really be an absentee landlord. The folks that run the utility will be here in DC. But all the important decisions on policy and direction will be made in Chicago. First, a lot of folks will get fired, and a lot of local contract will be dropped this has already happened. They will save money by thinning out their emergency response crews. Why have a crew in Delaware and Philly and Baltimore and DC when they are all so close! When the big storms hit [and the roads impassable] we will be screwed.
Then the political donations to their friends will start coming in.
They will fight tenaciously to keep competition out of the market including Demand Side Management (DSM), local solar, local wind. They will do their best to kill Maryland's off shore wind program. They will undercut the DC SEU (Sustainable Energy Utility), they will fight to keep community solar and community owned micro-grids out of their jurisdictions. They will gradually change the rules of the PJM grid (a regional transmission organization) to give themselves more and more benefits for their "standby" nuclear power. They will fight efforts to bring large quantities of storage and Demand Side Management into our regional market because it would obviate the need for paying them for over-priced standby capacity. They will suck billions and billions of dollars out of our economy and use the money to fight clean energy everywhere. The end results will be higher rates, worse reliability and the forestalling of the clean energy revolution. To the extent that we get clean energy, they will want to own it and make a guaranteed 8% rate of return on it.
I hope that both of these sets of predictions turn out to be wrong, but I am not holding my breath.
----------
Exelon Boosts Guidance Despite Lower Profit [Exelon stockholders were so happy last October with the prospect of us paying their bills that stock price estimates rose even as profit sank 37%.]
Chicago-based power company reaffirms its commitment to buying Pepco Holdings
Exelon Corp. lifted its yearly guidance as it posted better-than-expected adjusted earnings and revenue in the third quarter, even as profit sank 37%.
The Chicago-based power company now estimates earnings in the range of $2.40 to $2.60 a share, up from previous guidance of $2.35 and $2.55 a share.
Exelon has been expanding through acquisitions and reaffirmed its commitment to buying Pepco Holdings Inc., after utility...
The Chicago-based power company now estimates earnings in the range of $2.40 to $2.60 a share, up from previous guidance of $2.35 and $2.55 a share.
Exelon has been expanding through acquisitions and reaffirmed its commitment to buying Pepco Holdings Inc., after utility...
To Read the Full Story, Subscribe or Sign In Popular on WSJ [Wall St. Journal]
----------
http://allthingsnuclear.org/dlochbaum/the-nrc-seven-petitioning-the-nrc-over-safety
In 2012 a potentially serious electrical failure at Exelon's Byron nuclear generating facility in Illinois was corrected in time. However subsequent study revealed that all nuclear plants currently operating and some under construction have this same flaw. Seven NRC staff members after 4 years now feel compelled to petition the NRC to fix the problem. Is the DC PSC aware of this issue of safety and potential cost if serious accident does occur? The issue is so serious that the 7 feel if the plants are not ordered to immediately redesign their electrical systems they should be shut down.
https://spoonsenergymatters.wordpress.com/
This site discusses serious issues with nuclear fuel rods at the Indian Point nuclear plant 25 miles from New York City. It also has more information on the Byron issue. Bernie Sanders says this plan should be shut down.
http://freerepublic.com/focus/f-news/672052/posts
----------
Public Service Commission of the District of Columbia
1325 G Street N.W., Suite 800
Washington, D.C. 20005
Press Release
For Immediate Release: February 26, 2016
Contact: Kellie Armstead Didigu, Media Relations Specialist
Email: kdidigu@psc.dc.gov
Office: 202-626-5124
Commission Votes 2-1 to Reject Pepco/Exelon Nonunanimous Settlement Agreement
Regulators Vote to Allow Consideration of Alternative Terms for Immediate Merger Approval
Today, the Public Service Commission of the District of Columbia (Commission) voted in a 2 to 1 decision to reject, as filed, the Nonunanimous Full Settlement Agreement and Stipulation (NSA) concerning the proposed merger between Pepco and Exelon Corporation as not being in the public interest (Order No. 18109). Chairman Betty Ann Kane and Commissioner Joanne Doddy Fort comprised the majority vote rejecting the NSA with Commissioner Willie L. Phillips dissenting. However, Commissioner Fort proposed alternative terms for a Revised NSA that would, if accepted by the settling parties, result in the approval of the Revised NSA and the Merger Application without additional action by the Commission, and asked for approval to send the alternative terms to the settling parties. Commissioner Phillips agreed to allow the alternative terms to be sent to the settling parties. If all the settling parties accept the Revised NSA with the alternative terms, the revised settlement as amended is approved with no further action required by the Commission. Chairman Kane dissented concluding that a Revised NSA with the alternative terms would still not be in the public interest.
Thus the Commission ruled by a vote of 2 to 1 that if all settling parties accept the proposed conditions within 14 days from the date of the Order, the Revised NSA and the Exelon/Pepco Merger will be approved as in the public interest without further Commission action.
In initially determining whether the NSA is in the public interest pursuant to D.C. Code §§ 34-504 and 34-1001, Chairman Kane and Commissioner Fort agreed that there are four (4) areas that warrant rejecting the NSA as filed:
(1) the evidentiary record failed to provide a persuasive rationale for excluding non-residential ratepayers from sharing in the proposed $25.6 million allocation of the Customer Investment Fund (CIF) for base rate credit relief and failed to persuade the Commission that the proposed allocation would not undermine the Commission’s ability to address the negative rate of return that currently exists for residential ratepayers and the resulting subsidies that are placed on non-residential customers;
(2) the NSA assigns roles to Exelon, as a developer of a solar generation facility at Blue Plains, and to Pepco, as a developer of four public purpose microgrids, that undermine competition and grid neutrality and are inconsistent with the District’s restructured market;
(3) the proposed uses of the CIF for sustainability projects and Low Income Home Energy Assistance Program (LIHEAP) payments do not improve Pepco’s distribution system nor advance the Commission’s objective to modernize the District’s energy systems and distribution grid; and
(4) the proposed method of allocating the CIF funds to District Government agencies and designated funds deprives the Commission of the ability to ensure that all of the funds are being used to enhance the distribution system and benefit District ratepayers, and to enforce the terms of the NSA.
Commissioner Fort’s alternative terms resolve the four (4) areas of concern by: (1) deferring a decision on the allocation of the $25.6 million Customer Base Rate Credit until the next Pepco rate case; (2) removing the provision that designates Exelon as the developer of a 5 MW solar generation facility at DC Water Blue Plains Treatment Plant and requiring Pepco’s commitment to facilitate the interconnection of a 5 MW solar project for any vendor selected by DC Water through its procurement process; (3) creating an escrow fund with two subaccounts at Pepco to hold $32.80 million of the $72.8 million Customer Investment Fund funded by Exelon under the NSA, $21.55 million of which is to be used for pilot projects emerging from Formal Case No. 1130 (a case to modernize the District’s energy system) and $11.25 million of which would be used for energy efficiency and energy conservation initiatives with a primary focus on housing, including multifamily buildings, for low and limited income District residents; and (4) striking as premature the provisions regarding Pepco’s role with the District to develop public purpose microgrids and requiring Pepco to facilitate and support the pilot projects under Formal Case No. 1130.
In separate opinions, Chairman Kane and Commissioner Fort explained their respective views on the NSA, including grounds for rejection as well as the revised NSA conditions.
Chairman Kane explained in her concurring and dissenting opinion that “while I agree that the four reasons cited in the Majority Opinion are a sufficient basis to conclude that the NSA, as filed, is not in the public interest, there are additional significant flaws in the NSA which are not addressed by the proposed alternative terms. In particular, the return of Pepco to an ownership structure that includes energy generation, supply, marketing and sales will result in an entanglement of management, financial health, and decision-making. This is a fatal flaw which will adversely affect Pepco and create a diversion of focus that carries it in the opposite direction from DC law and policy.”
Commissioner Fort stated in her opinion “I agree with the NSA’s supporters that the changes made by the NSA to the Merger Application, other than those [four concerns] that I have identified in this concurrence, have removed the reservations that I had with the original Merger Application. Moreover, I do not believe that the NSA is fatally flawed because each of the four concerns that the Majority Opinion has noted can be corrected by revising the NSA with alternative terms. For that reason and as explained in more detail in Order No. 18109, I have crafted alternative terms for the NSA and asked my fellow Commissioners to approve sharing them with the Settling Parties for their consideration under Commission Rule 130.17(b).”
In his separate opinion, Commissioner Phillips explained why he believes the NSA should be approved as filed.
“I applaud the parties for negotiating a settlement that I believe is in the public interest. The Joint Applicants worked to address deficiencies outlined by the Majority’s initial order on the merger, and got most of the parties to agree to a settlement. However, today’s decision has effectively moved the goal post in order to reject the settlement. So, I cast my vote today to allow my colleague to circulate proposed terms, for the sole purpose of giving the Settling Parties an avenue to consummate their agreement, instead of resulting in an outright denial.”
A copy of the Opinion and Order No. 18109 is posted on the Commission website, www.dcpsc.org.
----------
----------
Having read the article at ydr.com/story/money, here is what I consider the key information: [I tried to find this article there were several. The first ydr link points out that Exelon is considering shutting down 3 plants, 3 Mile Island, and 2 in Illinois. This could cost at least $3billion to add to our bills. The second link discusses the interaction of natural gas, coal, and nuclear fuel. Exelon claims it is clean energy because of no CO2, but neglects to mention the production of long lived nuclear waste.]
"But why would Exelon have its non-profit front group, which was formed last year with the specific mission of doing everything possible to keep aging, uneconomic nuclear reactors (especially those owned by Exelon) operating, place and pay for an ad about the Exelon-Pepco merger?
Having placed ads in the Baltimore Sun ourselves in the past, we can speculate: non-profit groups obtain much lower advertising rates from the Sun than do for-profit companies like Exelon and Pepco. So to save itself a few thousand bucks, which Exelon should be able to afford (if it can’t afford that, then its money-losing nuclear fleet is in even greater trouble than we had imagined), Exelon has brought new attention to the real reason it is pursuing Pepco.
It’s doing so because it needs Pepco, or, more specifically, the money from current Pepco ratepayers, to ride to the rescue of its failing nuclear reactors.
----------
From: "C Turner dcsmartmeterchoice@yahoo.com
Sent: Sunday, February 28, 2016 11:48 AM
Subject: Exelon weighs options for Three Mile Island after plant's failed bid (10/1/15)
http://www.ydr.com/story/money/2015/10/01/exelon-weighs-options-three-mile-island-after-plants/73686270/
It’s doing so because it needs Pepco, or, more specifically, the money from current Pepco ratepayers, to ride to the rescue of its failing nuclear reactors.
----------
From: "C Turner dcsmartmeterchoice@yahoo.com
Sent: Sunday, February 28, 2016 11:48 AM
Subject: Exelon weighs options for Three Mile Island after plant's failed bid (10/1/15)
http://www.ydr.com/story/money/2015/10/01/exelon-weighs-options-three-mile-island-after-plants/73686270/
4/21/15:
 | |||||||
Oops! Real reason for Exelon-Pepco merger inadvertently ...
Oops. Exelon’s nuclear cat was inadvertently let out of its radioactive bag by the Baltimore Sun today. The Sun was supposed to run an ad last Thursday in support o...
| |||||||
4/27/15:
 | |||||||
Oyster Creek Safety Issues "Highest Risk" Yet
Two New Problems Draw Govt. Scrutiny NRC officials have released two new findings Monday concerning the safety of Lacey’s Oyster Creek nuclear power plant – whi...
| |||||||
Preview by Yahoo
| |||||||
3/24/11:
Oldest US nuclear reactor: a 'disaster' in waiting? Oyster Creek, owned and operated by Exelon
"... It uses a GE Mark I Boiling Water reactor identical to those that lost power at Japan's Fukushima plant in the March 11 earthquake and then was struck by a tsunami that knocked out its backup generators, causing reactor cooling functions
to fail. US anti-nuclear activists and many residents of Lacey and surrounding Jersey shore townships worry that a similar nuclear disaster could happen at Oyster Creek, and it wouldn't need an earthquake or tsunami to trigger it.
Oyster Creek has been dogged by problems including a corroding liner in the carbon steel containment unit; leaks that allow radioactive tritium to seep into drinking water; and huge volumes of stocked spent fuel rods. "We have 40 years of radiation on site --
two-and-a-half to three times more than in Japan," anti-nuclear activist Jeff Brown told AFP. "You also have that tremendously stupid design to start with where the spent fuel rods are sitting on top of the reactor," he said..."
Chris Turner, Esq., DC Smart Meter Choice
dcsmartmeterchoice.com, dcsmartmeterchoice@yahoo.com
----------
----------
[Other Cases Where Unhappy People Have Fought Corporations or Agencies]
Lawsuit against Hewlett Packard (Compaq Computer Corp merger) management by major stockholder: 2 reasons, undue influence over trustee stockholders (Deutche Bank, inadequate evidence presented), and
Judges dismissal based on lack of "smoking gun" evidence.
In 2012 a potentially serious electrical failure at Exelon's Byron nuclear generating facility in Illinois was corrected in time. However subsequent study revealed that all nuclear plants currently operating and some under construction have this same flaw. Seven NRC staff members after 4 years now feel compelled to petition the NRC to fix the problem. Is the DC PSC aware of this issue of safety and potential cost if serious accident does occur? The issue is so serious that the 7 feel if the plants are not ordered to immediately redesign their electrical systems they should be shut down.
https://spoonsenergymatters.wordpress.com/
This site discusses serious issues with nuclear fuel rods at the Indian Point nuclear plant 25 miles from New York City. It also has more information on the Byron issue. Bernie Sanders says this plan should be shut down.
http://freerepublic.com/focus/f-news/672052/posts
Free Republic post and comments about poor likely results from merger and feelings of HP employees.
When your car’s headlights or interior lights dim periodically, this usually signifies an electrical issue. Serious Electrical Services
ReplyDelete