Exelon Acquisition Could Jeopardize DC’s Clean Energy Goals
Exelon Corporation’s $6-billion bid to buy the Potomac Electric Power Company (PEPCO) could jeopardize the District’s 20-year goal of producing 50% of its energy from renewables and cutting its energy use by half.
“Exelon is looking to buy Pepco to bring in another regulated utility to its portfolio, as its generation assets, including its large nuclear fleet, are losing revenue due to low natural-gas prices, increased energy efficiency, and more renewables on the system,” The Energy Collective reports. Which means DC’s “existing policies and objectives are in direct contradiction to the stated policies and objectives of Exelon Corporation,” according to the Cleveland-based Institute for Energy Economics and Financial Analysis.
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“Exelon is going to inherently have financial incentives that Pepco otherwise wouldn’t have that put Pepco customers at more risk than they’d otherwise be,” said IEEFA co-author Cathy Kunkel.
“Exelon does not dispute that it is investing in more regulated utilities to bolster its bottom line as its traditional generation business faces mounting challenges,” Tweed writes. “What’s at stake is whether Exelon will ultimately rely on its regulated utilities to not just bolster, but to make up for, the loss of revenue on the generation side.”