RCN Loses D.C.-System Partner


Pepco Holdings, the electric utility backing RCN Corp.’s Washington, D.C.-area cable overbuild, is backing out and looking to sell its interest.

The venture, Starpower, has secured 41,000 customers in Washington and its suburbs over the past seven years. Financially-troubled RCN has stopped expanding the Starpower and is trying to restructure its own finances.
Pepco will have a hard time finding a buyer for its end and is likely to lose the bulk of its $141 million investment.