Exelon, Pepco ask regulators to reconsider merger rejection

WASHINGTON (AP) - Power companies Exelon and Pepco have asked District of Columbia regulators to reconsider their rejection of the companies' proposed $6.8 billion merger.

The companies filed a motion to reconsider on Monday, arguing that the merger would stabilize electricity rates and enhance the reliability of electric and gas service.

Also on Monday, District Mayor Muriel Bowser announced that the companies are negotiating a settlement with her administration that would address regulators' concerns.

Opponents say the merger wouldn't benefit ratepayers and would harm the environment. City Administrator Rashad Young says in a statement that any settlement would address concerns about "affordability, reliability and sustainability.

The city was the only jurisdiction to reject the proposed merger between Chicago-based Exelon and Washington-based Pepco.