By Arathy S Nair
(Reuters) - Exelon Corp (N:EXC) said it entered into an agreement with Pepco Holdings Inc (N:POM) under which either company may terminate their proposed deal at any time.
Pepco, which is awaiting regulatory approval from Washington D.C. for its acquisition by Exelon said on Friday that the two utilities have not extended the deadline to close the deal, but were in talks with state authorities.
The companies asked the DC Public Service Commission for a decision by April 7, on Monday.
The utilities also submitted a counter proposal for the distribution of the $78 million the companies are offering Washington DC in exchange for its support of the merger.
The companies' alternative proposal will allow the Commission to spend up to $45.6 million to protect customers from rate increases through 2019 and a part of it for potential grid modernization.
Exelon's previous offer had been rejected by the Commission on Feb. 26.