Get ready, people. We’re about to make utility mergers sexy!
The short version: Exelon is a big, crappy utility company that’s in trouble because it’s saddled with a bunch of uneconomic nuclear plants. It wants to buy Pepco, a smaller, better utility, so Pepco’s ratepayers can help pay for those uneconomic nuclear plants. Ratepayers and activists in Pepco’s service territory — especially Washington, D.C. — rightly see this as a bad deal. Exelon has argued otherwise, but now a new independent think-tank report has pretty much destroyed the company’s case.
The long version: … hey, where are you going? Get back here. This is a hot political story, with scrappy grassroots activists fighting a corporate deal everyone said was invevitable! Also there are important lessons about contemporary electricity markets embedded in here. So stay with me. It’ll change the way you think about utility mergers!
Exelon is one of…
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