Enhanced package of benefits filed today
responds to PSC concerns
Pepco Holdings Inc. (NYSE: POM) and Exelon Corporation (NYSE:
EXC) today announced they have reached a settlement with the
Government of the District of Columbia and others on the companies’
proposed merger that will deliver substantially enhanced benefits
to consumers and businesses in the District. The settlement package
was specifically shaped to address the concerns articulated by the
District of Columbia Public Service Commission (PSC) in its August
order.
The new package of benefits includes commitments to provide bill
credits, low-income assistance, fewer and shorter outages, a
cleaner and greener D.C., and investment in local jobs and the
local economy. Pepco Holdings and Exelon submitted the settlement
agreement to the PSC for approval as part of the existing merger
proceeding.
Also signing on to the settlement agreement are the Office of
the People’s Counsel and the Office of the Attorney General of the
District of Columbia, as well as the Apartment and Office Building
Association of Metropolitan Washington, the District of Columbia
Water and Sewer Authority, the National Consumer Law Center and the
National Housing Trust.
“We heard the Public Service Commission’s concerns loud and
clear, and this new merger proposal presents greater benefits to
the District,” said Chris Crane, president and CEO of Exelon. “Our
settlement includes more than 120 commitments to ensure the merger
is unequivocally in the public interest.”
“The District deserves a healthy utility company that guarantees
affordability, reliability and sustainability for residents and
ratepayers,” said District of Columbia Mayor Muriel Bowser. “We
kept the conversations with Pepco and Exelon alive, because we knew
we had to do better for the District. My team negotiated a deal
that puts District residents and ratepayers first – by delivering a
public utility that is cost-effective, dependable and
environmentally sound.”
Under the new proposal, Exelon will more than double direct
benefits to customers by providing $72.8 million for bill credits,
low-income assistance, renewable energy and energy efficiency
programs in the District. These funds are expected to offset
distribution rate increases for residential customers through March
2019. Of the direct funds provided, $16.15 million would be used to
help low-income customers.
“This new proposal meets the needs of families and businesses in
the District,” said Joseph Rigby, chairman, president and CEO of
Pepco Holdings. “Merging with Exelon is the only way to provide
Pepco customers and communities these significant benefits, which
we believe are too great to forfeit.”
Todd Nedwick, Housing and Energy Efficiency Policy Director,
National Housing Trust, said, “The settlement announced today
provides meaningful benefits to vulnerable, low-income District
residents. The settlement provides at least $6.75 million for
energy efficiency retrofits to make multifamily homes healthy and
affordable. Energy efficiency in affordable housing lowers utility
costs, keeps housing affordable and reduces greenhouse gases. A
triple win.”
Pepco and Exelon have committed to invest substantially in
advancing the District of Columbia’s long-term sustainability
goals, including $3.5 million for new renewable energy and $3.5
million for energy efficiency programs. In addition, Exelon will
significantly expand solar energy in the District by developing up
to 10 megawatts (MW) of new solar generation and making it easier
and faster for customers to install solar panels. Exelon will
provide another $5 million of capital to governmental entities to
develop renewable energy in the District and will purchase 100 MW
of wind energy. In addition, Pepco will work with the District to
develop at least four new microgrids.
Under the enhanced proposal, Pepco will reduce the frequency and
duration of power outages. Pepco’s reliability performance will
exceed the standards the PSC has set or the company will face
significant financial penalties if it fails to do so. Pepco is
expected to reach these more aggressive goals for reliability
without increasing planned budgets, providing cost protection to
customers.
The new package of benefits also includes commitments by Pepco
Holdings and Exelon to promote local jobs and an additional $5.2
million for workforce development in the District.
Exelon also will continue Pepco’s support for the local
community by guaranteeing charitable contributions in the District
of $19 million over 10 years to nonprofits that serve residents in
the District.
About Exelon Corporation
Exelon Corporation (NYSE: EXC) is the nation’s leading
competitive energy provider, with 2014 revenues of approximately
$27.4 billion. Headquartered in Chicago, Exelon does business in 48
states, the District of Columbia and Canada. Exelon is one of the
largest competitive U.S. power generators, with approximately
32,000 megawatts of owned capacity comprising one of the nation’s
cleanest and lowest-cost power generation fleets. The company’s
Constellation business unit provides energy products and services
to more than 2.5 million residential, public sector and business
customers, including more than two-thirds of the Fortune 100.
Exelon’s utilities deliver electricity and natural gas to more than
7.8 million customers in central Maryland (BGE), northern Illinois
(ComEd) and southeastern Pennsylvania (PECO). Follow Exelon on
Twitter @Exelon.
About Pepco Holdings Inc.
Pepco Holdings Inc. is one of the largest energy delivery
companies in the Mid-Atlantic region, serving about 2 million
customers in Delaware, the District of Columbia, Maryland and New
Jersey. PHI subsidiaries Pepco, Delmarva Power and Atlantic City
Electric provide regulated electricity service; Delmarva Power also
provides natural gas service. PHI also provides energy efficiency
and renewable energy services through Pepco Energy Services. For
more information, visit online: www.pepcoholdings.com.
Cautionary Statements Regarding Forward-Looking
Information
Except for the historical information contained herein, certain
of the matters discussed in this communication constitute
“forward-looking statements” within the meaning of the Securities
Act of 1933 and the Securities Exchange Act of 1934, both as
amended by the Private Securities Litigation Reform Act of 1995.
Words such as “may,” “might,” “will,” “should,” “could,”
“anticipate,” “estimate,” “expect,” “predict,” “project,” “future,”
“potential,” “intend,” “seek to,” “plan,” “assume,” “believe,”
“target,” “forecast,” “goal,” “objective,” “continue” or the
negative of such terms or other variations thereof and words and
terms of similar substance used in connection with any discussion
of future plans, actions, or events identify forward-looking
statements. These forward-looking statements include, but are not
limited to, statements regarding benefits of the proposed merger,
integration plans and expected synergies, the expected timing of
completion of the transaction, anticipated future financial and
operating performance and results, including estimates for growth.
These statements are based on the current expectations of
management of Exelon Corporation (Exelon) and Pepco Holdings, Inc.
(PHI), as applicable. There are a number of risks and uncertainties
that could cause actual results to differ materially from the
forward-looking statements included in this communication. For
example, (1) the uncertainty surrounding
reconsideration of the denial of the Merger application by the DC
Public Service Commission may delay the merger or cause the
companies to abandon the merger; (2) conditions to the closing
of the merger may not be satisfied; (3) problems may arise
in successfully integrating the businesses of the companies, which
may result in the combined company not operating as effectively and
efficiently as expected; (4) the combined company may be
unable to achieve cost-cutting synergies or it may take longer than
expected to achieve those synergies; (5) the merger may
involve unexpected costs, unexpected liabilities or unexpected
delays, or the effects of purchase accounting may be different from
the companies’ expectations; (6) the credit ratings of the
combined company or its subsidiaries may be different from what the
companies expect; (7) the businesses of the companies may
suffer as a result of uncertainty surrounding the merger;
(8) the companies may not realize the values expected to be
obtained for properties expected or required to be sold; (9)
the industry may be subject to future regulatory or legislative
actions that could adversely affect the companies; and (10)
the companies may be adversely affected by other economic,
business, and/or competitive factors. Other unknown or
unpredictable factors could also have material adverse effects on
future results, performance or achievements of the combined
company. Therefore, forward-looking statements are not guarantees
or assurances of future performance, and actual results could
differ materially from those indicated by the forward-looking
statements. Discussions of some of these other important factors
and assumptions are contained in Exelon’s and PHI’s respective
filings with the Securities and Exchange Commission (SEC), and
available at the SEC’s website at www.sec.gov, including: (1)
Exelon’s 2013 Annual Report on Form 10-K in (a) ITEM 1A. Risk
Factors, (b) ITEM 7. Management’s Discussion and Analysis of
Financial Condition and Results of Operations and (c) ITEM 8.
Financial Statements and Supplementary Data: Note 22; (2) Exelon’s
Second Quarter 2015 Quarterly Report on Form 10-Q in (a) Part II,
Other Information, ITEM 1A. Risk Factors; (b) Part 1, Financial
Information, ITEM 2. Management’s Discussion and Analysis of
Financial Condition and Results of Operations and (c) Part I,
Financial Information, ITEM 1. Financial Statements: Note 19; (3)
the definitive proxy statement that PHI filed with the SEC on
August 12, 2014 and mailed to its stockholders in connection with
the proposed merger (as supplemented by PHI’s Form 8-K filed with
the SEC on September 12, 2014); (4) PHI’s 2014 Annual Report on
Form 10-K in (a) ITEM 1A. Risk Factors, (b) ITEM 7. Management’s
Discussion and Analysis of Financial Condition and Results of
Operations and (c) ITEM 8. Financial Statements and Supplementary
Data: Note 15; and (5) PHI’s Second Quarter 2015 Quarterly Report
on Form 10-Q in (a) PART I, ITEM 1. Financial Statements, (b) PART
I, ITEM 2. Management’s Discussion and Analysis of Financial
Condition and Results of Operations. In light of these risks,
uncertainties, assumptions and factors, the forward-looking events
discussed in this communication may not occur. Readers are
cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date of this communication.
Neither Exelon nor PHI undertakes any obligation to publicly
release any revision to its forward-looking statements to reflect
events or circumstances after the date of this communication. New
factors emerge from time to time, and it is not possible for Exelon
or PHI to predict all such factors. Furthermore, it may not be
possible to assess the impact of any such factor on Exelon’s or
PHI’s respective businesses or the extent to which any factor, or
combination of factors, may cause results to differ materially from
those contained in any forward-looking statement. Any specific
factors that may be provided should not be construed as
exhaustive.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20151006006960/en/
ExelonPaul Elsberg312-394-7417orPepco HoldingsMyra
Oppel202-872-2680
Exelon (NYSE:EXC)
Historical Stock Chart
From Mar 2024 to Apr 2024
Exelon (NYSE:EXC)
Historical Stock Chart
From Apr 2023 to Apr 2024