Although there are other hurdles to clear, the Exelon Corporation, parent company of Philadelphia-based PECO Energy Company and whose Mid-Atlantic Headquarters nuclear generation business is based in Kennett Square, recently took a big step toward creating one of the largest electric utility holding companies in the United States, according to a story in The Wall Street Journal.

Exelon’s $6.8 billion acquisition of Pepco Holdings Inc. in August 2015 has since been contested by utility regulators for the District of Columbia. Last Friday, they voted 2-1 to reject a proposed settlement agreement offered by Exelon and others as an alternative to the commission’s outright rejection of the transaction.

However, in another 2-1 vote, the commission responded with an amended version of the agreement it said would be acceptable, and gave the parties until March 11 to accept or reject its conditions. Groups representing utility ratepayers, the government, and business interests must now sign off on the amendment.

Exelon had previously received approvals from other regulators in the area served by Pepco, including Delaware, Maryland, New Jersey, and Virginia.

Charlie Harak of the National Consumer Law Center, which represents low-income ratepayers in the matter, said that “based on a quick and limited review of the 270-page order, my instincts say this is not a deal breaker for Exelon—but they will have to say.”

Paul Patterson, a utilities analyst for Glenrock Associates in New York, said “it’s more likely than not” that Exelon will give its blessing.

The amended agreement features changes that focus on energy efficiency and grid modernization, two goals of the D.C. commission.

Exelon owns a large number of unregulated power plants—including the nation’s biggest fleet of nuclear reactors. If the Pepco deal closes, Exelon will add three utilities to its roster: Atlantic City Light, Delmarva Power, and Pepco.

Read more about the proposed merger on the Wall Street Journal here.

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